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CAUSE
Transformation
MOBICOM
Training Entrepreneurial stimulation
Mentoring Enterprise development
Human capital development
Financial freedom
CommercialMarket
MOBICOM Social Service Organization
TargetedBeneficiaries
Staple FoodAir timeElectricityFuneral CoverLife InsuranceDebt repair
WCDTL (Western Cape Diverse Traditional Leaders)SANCO (South African National Civics Organization)Various Peninsula Backyarder organizationsVarious smaller CBO’s/NGO’s
Financial flow
Product & service flow
Synergies
Social Enterprise support model
Why is this model needed
The Community Retail Model
TertiaryCooperative
SecondaryCooperatives per Area
Various CommunityCooperatives
Groupof 50 consumers
Community Champion/ Agent
Training , Gen management & logistics Financial Services Marketing and Media
Community Champion/ Agent
Community Champion/ Agent
Community Champion/ Agent
Community Champion/ Agent
Community Champion/ Agent
PrimaryCooperativesPer Structure
Groupof 50 consumers
Groupof 50 consumers Group
of 50 consumers
Groupof 50 consumers
Groupof 50 consumers
Consist of between 20 to 25 members Consist of between 20 to 25 members Consist of between 20 to 25 members
The Community Retail Model
Groupof 50 consumers
Community Champion/ Agent
Community Champion/ Agent
PrimaryCooperativesPer Structure
Groupof 50 consumers
Consist of between 20 to 25 members
Each consumer cooperative includes:• One transport operator• One locally owned spaza shop• Two members trained as admin managers• One member trained as sales manager• One member trained as financial manager• All members/agent trained in SellSellSell©
The Community Retail Model
Objective is to create sustainable employment MONEY
Transporter R 2 of every R100 sold
Agent/Member of coop R8.4 for every R100 sold
Sales of agent/member R14 800
R 1243
Local Spaza R 1.5 of every R100 sold
Training Schedule
How do we do things?
Sell02
Orientation
Sell01
How much money can I
make and how?
Sell03
What must I tell my consumers
Sell04
How does my business work?
Sell05
Managing moola
Sell06
Evaluation Sell07
Graduation
Sell08
CAUSE: SellSellSell Program©
Profit profile of pilot Cooperative (Phase 1)
Why building a Team Culture in Cooperatives
Better results Strategic focus
People do their best
Synergistic collaboration
Better processes High involvement
Idea sharing
Flexibility
Better environment Inspiring and energizing
Less conflicts
Employee satisfaction
10 Action Areas1. Provide an inspiring vision
2. Define shared values
3. Set stretch goals
4. Develop team leaders
5. Synergize complementary skills
6. Celebrate diversity
7. Encourage team activities
8. Empower teams
9. Provide coaching
10. Reward collective achievements
10 Action Areas and Key Benefits
Benefits
More information at 1000ventures.com: “Team Culture”© Vadim Kotelnikov
Profile of Phase 2
• Area of deployment: Klipfontein/ False Bay (spatial planning area)
• Starting in areas: Gugulethu and New Cross Roads• More than 119 600 households in Klipfontein/False Bay spatial planning area • 30% of households is Xhosa speaking(36 000)• 68% have between 3 to 8 people in the household• 19.94% unemployment• 31% is between age group 18 – 34 years• 23% is between 35 – 54 years• 49 aged for every 100 youth• 52.6% females• Revenue potential R 10 512 000 per month• Multiplier effect to local economy in Klipfontein area will be R 1 576 800 • Local value distribution to Agents equal R 883 000• With 50% conversion of consumers, at least 250 new sustainable employment opportunities
Value creating ecosystem • Primary consumer cooperatives• Secondary cooperative structures for value add services such as logistics, marketing and financial matters respectively• Local owned shops network• Disruptive mobile and ICT technologies • Interactive media platform across all mediums• Institutional partners
Gugulethu
Support – Socio Entrepreneurial Programs• Job creation• Sustainable Income levels• Food security and availability• Smart retail education•Life skill development•Asset building•Community Integration
• Order placement• Service delivery issues• Product line enquiries• Community line• Fraud line• Counseling line
Suppliers ChannelPartners
Order Management
Marketing Sales
Support
ERM
Supply ChainManagement
Sales RelationshipManagement
Product LineManagement Customer
Radio/ SMS/
Internet
Spazas/ Trade house
Callcentre
Networking Activators
Community Agent
CRM without compromise• Acquiring customers• Keeping customers• Growing your customers• Gaining customer insight• Interacting with your customer across all touch points• Building lasting relationships with your customer• Delivering value to your customer• Achieving sustainable competitive advantage• Growing your business
Sales driven by• Shop visits• Over the phone orders• Buying Schedule with Agents• “Smart retailing” house visits• Community web portals
CRM philosophy
CRM as business strategy, address four imperatives:• ensure over 80% of recurring spend •generating new growth;• attaining operational excellence;• enhancing competitive agility
• Increase wallet share;• Deploy new channels;• Penetrate underserved segments;• Reach out to new customer;• Optimize customer touch points• Enter entirely new markets
Suppliers ChannelPartners
Order Management
Marketing Sales
Support
ERM
Supply ChainManagement
Sales RelationshipManagement
Product LineManagement Customer
Radio/ SMS/
Internet
Spazas/ Trade house
Callcentre
Networking Activators
Community Agents
• Not only price & product• Well design sales channels• Service process chain integration
• Flexibility, collaboration, openness, speed integral part of corporate culture• Turning innovation into customer value• By capitalizing on customer insight, organizations can:
• better and quicker identify and prioritize sales opportunities• discern and leverage sources of differentiation• spur product and service innovation• strengthen relationships with customers and partners
• Eco-systems focus on value networks and not value chains
The Gugulethu Retail ModelOne locally owned retail shop and micro distribution centre forMontana, MonteVideo and Section 3 Cooperatives
Location: 48 Klipfontein Road next to world famous Mizoli’s braai houseOwner: Tatta Zoro Current Turnover per month:Years in community:Quantity of households served per month: 5000Stock turn per month for households in area: R 1 250 000
THE INDUSTRIAL ENTERPRISE NEW KNOWLEDGE-BASED ENTERPRISE
Corporate Attributes Corporate Attributes
Economies of scale Smaller business units
Standardization of work Customization of work
Standardization of workforce Flexible, skill based workforce
Financial capital as scarce resource Human capital as scarce resource
Corporate HQ as operational controller HQ as advisor & core competency guardian
Hierarchical pyramid structure Flat or networked structure
Employees seen as expense Employees seen as investment
Internally focused top-down governance Internal & external distributed governance
Individualistic orientation Team orientation
Information based on "need to know" Open & distributed information system
Vertical decision making Distributed decision making
Emphasis on stability Emphasis on change
Emphasis on vertical leadership Emphasis on empowered self-leadership
What is different?
Organizational InnovationThe Wheel of Business Evolution8. Performance
Measures• Political• Economic• Social• Technological
Adapted from: “Managing Complexity”, Robin Wood
• Strategic success factors
• Mission critical variables
1. Business Environment
• Competitive landscapes and dynamics
• Games, roles & players
2. Business Ecosystem
3. BusinessDesign
• Business model• Business processes
4. LeadershipStyle
• Strategic leadership
• Organizational development
5. Organizational Values
• Core values• Rules of the internal game
6. Management Process
• Direction• Innovation & operations• Learning & design
7. Knowledge Management Systems
• Knowledge-sharing culture• Interpretive frameworks• Information systems
:”
Funding model of Mobicom
Internal Funds
Institutional/Venture Cap
CSI/ Enterprise Dev
Donor/ Grant
Informal economy
MOBICOM DEVELOPMENT FUND
RetailPortfolio
TransportPortfolio
Training/ Life skillsPortfolio
Trust Account
Social InvestmentInstruments
Stokvel bond/ prefs
Social Retail bonds
Social Transport bonds
Masakhane social shares
R 1 200 000 USD 100 000
• Pilot ending 30 Jun 2011• 250 jobs • 10 consumer primary cooperatives• 6 secondary cooperatives• 1 tertiary cooperative• 18 000 individuals households
• Financial results/per month• R 723 750 turnover per primary cooperative• R 10 280 net profit per primary cooperative• R 1 226 Member benefit in every cooperative
• Financial results/per year/Cooperative• Sales/Share R 33 577 (R 13 386)• Distribution/share R 296.06 (R 2.27)• Net asset value/share R 3 700 (R 1172)• Gross profit margin 11%• Net profit before loan repayment 2.93%()Financial performance of major listed Company
• Social effect of the model• Sustainable jobs created 250• Sustainable jobs created for women 225• Cash re-circulated per month R 6 715 353• Value created in community per month R 737 303• Poverty alleviation effect per month R 433 824 (59%)
•Partners to this project• Metro Cash and Carry (Vuyani Khayelitsha)• Old Mutual South Africa: Masisizane Fund• National Youth Development Agency• National Community Radio Forum• Distell Winery• British American Tobacco• South African Breweries• Kentucky Fried Chicken Franchise Stores in Gugulethu• African Unity Insurance• Cape Town TV (Community TV)