A review of "sustainability vision" as corporate strategy in Africa, in the context of the opportunities provided by the prevalence of malaria
Steenkamp, Daniel (2009-03)
Thesis (MBA)--Stellenbosch University, 2009.
ENGLISH ABSTRACT: Companies are confronted with a global market that is becoming increasingly saturated.
With free trade agreements allowing more competition into the traditionally lucrative
Western markets and economic recessions impacting the spend-ability of these markets,
there is mounting pressure to consider other market opportunities. Statistics reveal that the
traditional bottom of the economic pyramid actually contains a potentially very profitable
market, with a purchasing power parity of $12.5 trillion. To address this market,
prospective companies will have to rethink conventional business strategies, moulded to
the specific target market requirements.
The gradual shift in focus to the bottom of the economic pyramid, also serves to
emphasise the need of sustainable development of impoverished communities. By raising
communities out of poverty, they are liberated to partake in trade, respond to opportunities
and experience growth in self esteem. Whilst aid organisations play an important role in
establishing this freedom, rethinking business processes could result in more sustainable
impact on communities.
This feeds into the concept of creating a sustainability vision, where the corporate vision
should readdress not only the product but also the markets they seIVe. It should direct the
company toward the solution of social and environmental problems and meet the unmet
needs at the bottom of the economic pyramid.
In the context of Africa's geographical, political or social milieu, it is evident that the
continent offers unique challenges for engaging in trade. There are various attempts to
address these, but Africa is still deemed one of the most difficult environments in which to
establish operations. Africa also offers unique opportunities though, for those companies
willing to rethink the conventional.
Two companies saw the opportunity in malaria, a disease associated with impoverished
communities. Africa has the perfect breeding ground for the P. fa/ciparum strain of malaria,
which is incidentally also the most lethal. The strain has developed resistance against
current medication, which makes it extremely difficult to cure and control. It is estimated
that malaria costs African governments up to $12 billion per year and results annually in a
penalty of 1.3% less economic growth per person than could be expected in the absence
The two companies, on different ends of the supply chain, have been reviewed in the light
of the defined sustainability vision principles and the context of their strategic operations.
Though not without critique, and admittedly still in the early phases of some of their
processes, they have demonstrated that the concept of a sustainability vision in the African context is viable and that it is feasible to create wealth whilst serving the poor.
AFRIKAANSE OPSOMMING: Maatskappye word voortdurend gekonfronteer met markte wat neig om versadig te word
as gevolg van vryhandelsooreenkomste wat kompetisie stimuleer en ekonomiese
resessies wat vrye kontantvloei - en gevolglik koopgewoontes - be·invloed. Daar is dus
groeiende druk om voorheen ongekarteerde markte te ondersoek. Kontra verwagting toon
nuwe statistieke dat die tradisionele basis van die ekonomiese piramide 'n potensieel baie
winsgewende mark inhou, met koopkrag van $12,5 triljoen. Om hierdie mark te betree,
word van maatskappye verlang om konvensionele besigheidstrategiee in heroorweging te
neem en dit te vorm na gelang van die spesifieke konteks van hul teikenmark.
Die stelselmatige skuif in fokus na die basis van die ekonomiese piramide het die
noodwendige gevolg om die belang van ontwikkeling in agtergeblewe gemeenskappe te
benadruk. Deur gemeenskappe te verlos uit die juk van armoede, word self-waarde
gestimuleer en hulle die geleenlheid gegun om deel te neem aan aktiewe handel, wat
ekonomiese groei tot gevolg he!. Welwillendheids-organisasies speel 'n belangrike rol in
die opsig, maar besighede het die potensiaal om 'n meer blywende ekonomiese impak te
In die lig hiervan, word die konsep van 'n volhoubare visie benadruk, waar dit gestel word
dat 'n maatskappy se visie beide die produk en die teikenmark in herwoorweging moet
neem. Dit moet die organisasie lei om sosiale- en omgewingsprobleme aan te spreek en
voorheen onvoorsiene behoeftes op die basis van die ekonomiese piramide te bevredig.
Teen die agtergrond van Afrika se geografiese, politieke en sosiale milieu, is dit duidelik
dat die kontinent unieke uitdagings bied vir voornemende handel. Verskeie pogings word
aangewend om dit die hoof te bied, maar Afrika word steeds gesien as een van die
moeilikste kontekste om besigheid in te doen. Afrika offer wel ook unieke geleenthede vir
maatskappye wat bereid is om hul konvensionele banderings in herwoorweging te neem.
Twee maatskappye het die geleentheid raakgesien in malaria, 'n siekte wat normaalweg
met agtergeblewe gemeenskappe geassosieer word. Afrika bied die perfekte teelaarde vir
die P.falciparum variant van malaria, wat toevallig ook die mees dodelike variant is. Die
malaria variant het weerstand opgebou teen tradisionele voorskrif-medikasie. met die
gevolg dat dit besonder moeilik is om te voorkom en te beheer. Gesaghebbende bronne
skat dat malaria Afrika-regerings tot $12 miljard per jaar kan kos, en jaarliks lei tot 1,3%
minder ekonomiese groei as wat verwag sou word in die afwesigheid daarvan.
Twee maatskappye is geevalueer in die lig van die ge'identifiseerde volhoubare visie
beginsels en die konteks van hul operasionele bedrywighede. Hoewel hulle benadering nie
sonder kritiek is nie, en sommige strategiee nog die toets van tyd moet deurstaan, stel
hulle goeie voorbeelde van die potensiaal om rykdom te skep, terwyl die gemeenskap in
nood ook gedien word. Dit benadruk die potensiaal vir 'n volhoubare visie, ook in die Afrika
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