COMPANIES SUCCEEDING IN
EMERGING MARKETS
P r o f e s s o r R . S i m e o n
S F S U
S U N S H I NE
G RO U P L I MI TE D
A C h i n e s e C o m p a n y i n
T a n z a n i a
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Tanzania
South-Eastern Sub-Saharan country in
Africa
Unitary Presidential/Constitutional
Socialist Republic
Colony in the 19th century of Germany
and Britain until independence and
formation in 1964
Heavily mountainous and forested
country bordered by several large lakes
Over 100 spoken languages with Swahili
and English being dominant
Majority of population either Christian or
Muslim
Economic Overview
Population approx.: 55.6 million
Approx. 66% of pop. Live below the poverty line of
$1.25 per day
GDP: $56.7 Billion
Averages $5.5 billion in exports and $11.7 billion in
imports, with China being a major partner in both
Poor integration with Global Markets
Economy heavily based on agriculture with a steadily
growing industrial sector
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SUNSHINE GROUP LIMITED
C o r e V a l u e s :
Our Mission- Is to complete customer satisfaction. To achieve this goal,
quality, honesty, reliability, ethical values and improvement are our
guidelines in the business.
Our Vision- Is to supply low cost and value added services while
supplying steel and other construction materials of international
standards to our customers in Tanzania.
Our Value- Sunshine has always been values-driven. These values
continue to direct the growth and business of Sunshine Group
companies.
4
SUNSHINE GROUP
LIMITED
G e n e r a l B a c k g r o u n d
Sunshine is a Chinese owned multi-sectoral company
established in Dar Es Salaam, Tanzania in 2012. Its original
main business scope included agricultural products trading,
meat and livestock trading, construction material trading,
logistics, and manufacturing. After becoming established,
company owners quickly realized the potential of Tanzania’s
emerging market status in a vast number of different
sectors and expanded into several other areas of the
Tanzanian economy as well.
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Subsidiaries of Sunshine
Group Limited:
Sun Shine Mining
Sun Shine Transportation
Sun Shine Gypsum
Sun Shine Agriculture
China Pesticide
Bee Safari
Kakakuona Clearing and Forwarding
v
Sun Shine Card High Technology
Sun Trust
Sun Shine Auto Assembly
Sun Shine Industrial
Ocean Link International
Sun Shine International Supply
Chain
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WHY TANZANIA ?
C a p t u r i n g E m e r g i n g M a r k e t s
When listing the various subsidiaries, it is easy to see why the owners of
Sunshine chose to do business in Tanzania. Having gained independence
from European colonialism relatively recently, Tanzania’s self-governed
economy was still in early stages. From 2009-2011 Tanzania’s economy
grew at 3.5% a year. Agriculture was and is the biggest economic sector ...
COMPANIES SUCCEEDING IN EMERGING MARKETSP r o f e s s o
1. COMPANIES SUCCEEDING IN
EMERGING MARKETS
P r o f e s s o r R . S i m e o n
S F S U
S U N S H I NE
G RO U P L I MI TE D
A C h i n e s e C o m p a n y i n
T a n z a n i a
Add a Footer 2
Tanzania
-Eastern Sub-Saharan country in
Africa
Socialist Republic
and Britain until independence and
formation in 1964
2. country bordered by several large lakes
and English being dominant
Muslim
Economic Overview
line of
$1.25 per day
imports, with China being a major partner in both
growing industrial sector
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3. SUNSHINE GROUP LIMITED
C o r e V a l u e s :
- Is to complete customer satisfaction. To
achieve this goal,
quality, honesty, reliability, ethical values and improvement are
our
guidelines in the business.
- Is to supply low cost and value added services
while
supplying steel and other construction materials of international
standards to our customers in Tanzania.
- Sunshine has always been values-driven. These
values
continue to direct the growth and business of Sunshine Group
companies.
4
SUNSHINE GROUP
LIMITED
G e n e r a l B a c k g r o u n d
Sunshine is a Chinese owned multi-sectoral company
4. established in Dar Es Salaam, Tanzania in 2012. Its original
main business scope included agricultural products trading,
meat and livestock trading, construction material trading,
logistics, and manufacturing. After becoming established,
company owners quickly realized the potential of Tanzania’s
emerging market status in a vast number of different
sectors and expanded into several other areas of the
Tanzanian economy as well.
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Subsidiaries of Sunshine
Group Limited:
Gypsum
5. v
national Supply
Chain
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WHY TANZANIA ?
C a p t u r i n g E m e r g i n g M a r k e t s
When listing the various subsidiaries, it is easy to see why the
owners of
Sunshine chose to do business in Tanzania. Having gained
independence
from European colonialism relatively recently, Tanzania’s self-
governed
economy was still in early stages. From 2009-2011 Tanzania’s
economy
6. grew at 3.5% a year. Agriculture was and is the biggest
economic sector in
the country. Being experienced operators in this area, Sunshine
Group
saw an opportunity to bring organization to the market,
capitalize on its
growth, and profit from it.
7
MODE OF ENTRY
W h o l l y O w n e d
S u b s i d i a r y
-owned subsidiary in
order to have full control over operations
the 13 subsidiaries operating in country
and construction) conducted careful and detailed
market research to find sectors in which to expand
great potential, such as tourism, mining, and
7. card technology
24.5
22.2
3.3
17.5
12.5
3.5
4.3
12.2
Economic Sectors as Percent of Tanzanian
GDP
Agriculture Industry Mining Tourism Banking
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BEYOND ENTRY
E x p a n s i o n
established, executives conducted careful research to
see where else they could succeed. They targeted
8. existing industries in order to ease barriers to entry and
take advantage of businesses that have been proven to
work in Tanzania, eliminating risk created by cultural
differences.
businesses, such as transportation and pesticides to aid
existing subsidiaries and lower costs.
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ADAPTATION STRATEGY
A n E a s y F i t
agricultural sector
iar
with the job
capitalized on expanding the standard Tanzanian
crops and livestock
9. their entry, very weak, but existent and traditional
within Tanzania, such as mining, tourism, and
transportation, creating familiarity= easy adaption
67%
6%
27%
Employment by Occupation in
Tanzania
Agriculture Industry Services
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Agricultural Trading:
WHERE SUNSHINE SUCCEEDS
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Livestock and Meat
Trading:
Why?
farming and consumption of meat is
prevalent in Tanzania
10. their livestock and meat products,
which is relatively new to Tanzania
and appealing to the population
which outcompetes smaller local
traders
Why?
the Tanzanian economy
substantial portion of the market
under their subsidiary
Tanzania is done at local levels
external markets as well
Transportation:
WHERE SUNSHINE
SUCCEEDS
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11. Tourism:
Why?
the Safari is popular in
Tanzania
appealing tourist destination and will
continue too
tourists as more reputable than competing
local companies, gaining them more
business
Why?
transportation industry
commercial supply transport
companies, allowing Sunshine Group
to grab much of the market share
unshine Transportation is used by
other Sunshine subsidiaries
I S S U E S O F
S U S T A I N A B I L I T Y
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12. There are several negative factors that Sunshine
Group faces that could threaten sustainability
of the business:
• Agricultural business is highly dependent on
weather
• Instability/Corruption of Tanzanian
Government
• Rising competition
• Local competitors with local/public
support are becoming stronger
• Shrinking natural resources
• Uncertainty of long-term market
performance
HOW TO OVERCOME THE NEGATIVES
during seasons of low production
regulations related to government interaction
promising startups to maintain market share
and thin out potential competitors
13. -seasonal subsidiaries such as
Sun Shine Transportation and Sun Shine Auto Assembly
business
C o r p o r a t e S t r a t e g y
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FUTURE OUTLOOK FOR
SUNSHINE GROUP LIMITED
IN TANZANIA
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Future Plans:
the Democratic Republic of Congo
where competition is low and
resources abundant
Dodoma, TZ
in TZ to help globalize business
14. Sunshine’s China Pesticide subsidiary
in-country to lower costs (they are
currently imported)
and succeeding well in the majority of its
business interest.
they offer high quality products and
services, pay a fair wage, and provide
jobs for local Tanzanians.
Chinese firms in Tanzania has increased
friendly relations between the two
countries.
profitable for Sunshine, who hopes to
contribute to solidifying the economy
and making Tanzania a global player.
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Sunshine Group Limited
A Chinese company operating in the emerging
market of Tanzania. An example of how to
capitalize and succeed.
16
15. THE END
17
18
1. https://www.howwemadeitinafrica.com/seven-chinese-
companies-
made-africa/59407/
2. http://www.sunshinegroupltd.co.tz/index.php/company#
3. https://en.wikipedia.org/wiki/Tanzania
4.
http://africa.chinadaily.com.cn/a/201805/07/WS5aefeed1a3105c
dc
f651c66c.html
18
S T A R B U C K S I N M E X I C O
P R O F E S S O R R . S I M E O N , S F S U
B A CK G RO UND :
M E X ICO
Mexico’s economic freedom for 2018 is ranked
at the 63rd freest in the economic index with
16. a score of 64.8. The score has improved with a
1.2 point increase from last year.
Mexico’s economy has quadrupled since the
1994 NAFTA.
Mexico’s corruption, weak laws, low oil
production, and low oil prices are large factors
as to why Mexico’s growth is constrained.
The population is 122.3 million with $18,938
per capita.
There is still a lot of indigenous people in rural
areas of Mexico.
Fun Fact: The flag colors each represent
something different. Green represents hope
and victory, white stands for purity, and red is
the blood shed by the nation’s hero's.
B A C K G R O U N D :
S T A R B U C K S
T h e f i r s t S t a r b u c k s o p e n e d i n
S e a t t l e i n 1 9 7 1 .
I n 2 0 0 2 t h e y o p e n e d t h e i r f i r s t
s t o r e s i n M e x i c o , P u e r t o R i c o a n d
I n d o n e s i a .
S t a r b u c k s p r i d e s t h e m s e l v e s i n
17. b e i n g a n e t h i c a l c o m p a n y t h a t c a r e s
a b o u t t h e i r c u s t o m e r s , e m p l o y e e s
a n d t h e e n v i r o n m e n t .
Starbucks falls into two major sector categories
1. Primary sector- agriculture: “Starbucks has established
farmer support centers in key coffee-growing regions to
provide local farmers with resources and expertise that
can help lower their cost of production, reduce pest and
disease, improve coffee quality and increase the yield of
premium coffees.”- Starbucks
2. Tertiary sector-retail services : they have business to
customer stores all over the world. More than 500 in
Mexico.
P R I C E O F A S T A R B U C K S
L A T T E A R O U N D T H E W O R L D
Starbucks in Cancun, Mexico is the second most expensive in
the world
S T A R B U C K O N C H O O S I N G
M E X I C O
Starbucks was looking to enter the Latin American market
but they were having trouble finding a country that didn’t
have so much violence or that was financially stable. They
also wanted to enter a market where they already had
existing ties. This narrowed to the option down to Brazil,
Mexico, Colombia and Argentina.
18. A man by the name David Spencer, a NAFTA focused lawyer,
had the idea of bringing a Starbuck into Mexico while he was
near Mexico City. He realized that there was an emerging
middle class and that there were expresso bars in all the
shopping malls, so why not a Starbucks?
Starbucks ultimately went into Mexico because they had
existing trade ties. Starbucks already purchased coffee from
Mexico making it easier to enter their market with their
retail services.
*Image is the various stages of a coffee bean
STARBUCKS ENTRY
MODE
• In February of 2002 Starbucks announced that it
would be creating an enterprise with the company
Alsea to open their coffee shops in Mexico.
• ” Alsea is the leading restaurant operator in Latin
America and Spain of global brands in the quick
service, coffee shop, casual and family dining
segments”- Alsea
• It was decided to only open 20 shops within the
first two years
T h e s e a r e t h e p l a c e s a n d t h e c o m p a n i e s A
l s e a , t h e c o m p a n y S t a r b u c k s
c r e a t e d t h e e n t e r p r i s e w i t h , i s i n v o l v e d
19. w i t h .
STARBUCKS MARKETING
• This year Starbucks opened its first senior run, over
the age of 60, Starbucks in Mexico City.
• Starbucks Mexico CEO, Christian Gurria, said that the
aim of this new store is to provide jobs to seniors
who would otherwise find it difficult to be employed
elsewhere.
• This is a great marketing strategy because it creates
buzz in the media, giving them free publicity and at the
same time it helps the community.
S U C CE S S O F S TA RBU CKS IN
M E X ICO
Starbucks is now the coffee shop leader in
Mexico.
In a span of 16 years (2002-2018) they have
opened 632 stores there, creating more than
7,000 jobs.
Starbucks is now Alsea’s most profitable
brand, contributing more that 23% of its
overall sales.
From 2016 to 2017 Starbucks had a 14%
increase in income
20. In 2017 is there was a 9% decrease in
income due to the current political climate.
The people of Mexico were boycotting
American brands due to the constant threats
and humiliation of Trump.
However, to loosen the tension, Alsea made
it be known that they are the head of
operations for Starbucks Mexico, making it a
“100% Mexican owned company”.
O U T L O O K F O R S T A R B U C K S
M E X I C O
S T A R B U C K S , U N T I L N O W , S E E M S T O B E
D O I N G E V E R Y T H I N G R I G H T
W I T H T H E I R R E L A T I O N S H I P W I T H M E X I
C O . I P R E D I C T T H A T T H E Y W I L L
C O N T I N U E T O B E S U C C E S S F U L . G O I N G
I N T O B U S I N E S S W I T H A L S E A
W A S T H E R I G H T M O V E B E C A U S E I T H E L
P S L E V E R A G E T H E T I E S T H I S
A M E R I C A N C O M P A N Y H A S W I T H M E X I C
O .
The End
