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Ppt connecting english

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Ppt connecting english

  1. 1. International Business Case ConnectingEnglish in Morocco Lucile SCHWEITZER 3A5 Marketing
  2. 2. Macro-environment•  Economic opportunities: Perspectives of sustainable growth and development - Morocco attracts foreign investors - Low inflation, improved financial performance, and steady progress in developing the services and industrial sectors – An advanced status in its 2000 Association Agreement with the EU - France remains the countrys first provider of Morocco (15.3% of total imports). After Spain (11.8%), China (8.4%), United States (6.9%) and Italy (5.9%) in 2010 - France is also its first client (21.5% of total exports), Spain (16.6%), India (6%), Italy (4.3%) and Britain (3.6%) in 2010.•  Political stability: some demonstrations during the Spring Revolution but without any violence (the King Mohammed is appreciated by the population) – A moderately free press - King MOHAMMED in 2005 launched a National Initiative for Human Development a $2 billion program – COFACE grade country risk stays unchanged: A4 (it’s not the case for Tunisia, Egypt, Libya, Bahrein, Syria, modified in April 2010)•  Socio-cultural opportunities: Low labor cost Francophile country (around 70% less expensive) -– French is often the language for business, government and diplomacy - Highly educated skilled resources – minimum wage = 200€•  Technological & legal opportunities: Reliable and affordable communication infrastructure: telecom and Internet. The law 09/08 for the protection of the intellectual property (near the European legislation) is a good point for Offshoring particularly in BPO and ITO –•  Geographical advantage: Proximity of the European Market and the Sub-Saharan Africa – A 1 hour time difference with France
  3. 3. Competition & Risk Analysis Risk AnalysisMapping Competition   Industrial risksOur real competitor are both local language - Personal Data Protection center: Calliope and Foreign entrant for - Intellectual Property practical language training: Berlitz   Commercial risks -  Delay in the delivery -  Delay in the payment (from 4 to 6 months) Quality & Performance -  High income and financing banking   Human risks -  Quality and quantity for Human Resources -  Level of Training/skills and Language Register Experience & Recognition- +
  4. 4. Intercultural ManagementKEY VALUES LANGUAGES-  The family Arabic as a local language (public institutions), dialectal-  The solidarity Arabic, French perceived as modernity and-  The transparency education, Spanish as a 2nd or 3rd language (some areas), English for IT and international environment-  The loyalty-  The honesty RELIGIOUS ISSUES-  The reward A Muslim country = Paternalism - Control - Fatalism --  The relationship The integration of social and economic – PassionCROSSCULTURAL ISSUESHoffstede’s results: PERSONAL BEHAVIORS AND RELATED BEST MANAGEMENT Be patient, loyal, adaptable, thankful, clear in planning•  Power Distance Index: 70 – in France: 68 tasks and objectives•  Individualism Rate: 46 – in France: 71 A mix between Paternalist Management practiced in•  Masculinity Rate: 53 – in France: 43 Latin countries and participative management•  Uncertainty Avoidance Index: 68 – in France: 86 practiced in Anglo-Saxon countries
  5. 5. II / E-learning Services Outsourcing from France to MoroccoOutsourcing the most as possible in Morocco: salary, call centers, CRM…•  Morocco = 1st country for call centers (17 500 employees) – high qualified workforce – reactive teams speaking currently French – wages are less than in France (minimum wage is 200€) – geographical proximity with France (U€) – Time difference is only 1 hour – Moroccans learn 4 languages at school (Arabic, French, English, Spanish)In a recent Gartner study, Morocco will stay in the Top 30 of the destinations most attractive for outsourcing in 2011.OUR NEXT PARTNER is OUTSOURCIA – a French company (headquarters in Paris) created in 2003 with 3 call centers in Casablanca. The company is pioneer in premium outsourcing in its 4 business areas.Call centers: overall management of the customer relationships, a multilingual (7 languages: French, English, Spanish, Italian, Netherlands, Portuguese, Dutch) & multichannel offer.BPO: outsourcing business processes, providing back office.ITO: IT services and software development.Offshore Academy: 1st school specialized in the business of customer relationships.Don’t need to train their employees, the company has a lot of experience with prestigious clients from all over the world.
  6. 6. II / E-learning Services Outsourcing from France to Casablanca Casablanca: the city where to setting upThe common bases for Outsourcing contract withService Level Agreement •  80% of call centers are located in Casablanca or Rabat•  Outsourcia will be in charge of our phoning and our e- •  The economic capital in Morocco learning platform in these languages: French, English, Spanish, Italian, Netherlands, Portuguese, Dutch – in one month Key features for location in CasaNearshore •  A place dedicated to TIC in Morocco launched in 2005•  ConnectingEnglish will provides to Outsourcia the lessons and teaching methodology used by phone and e-learning but •  Low rental for trays: 90 DHs/m2 (8€/m2) the company ConnectingEnglish stays the only owner. •  Low income tax of 20% (against 40% to 42% for income above 5000 DHs per month)•  ConnectingEnglish will train Outsourcia team to their •  Tax exemption on profits in the first 5 years teaching methods during 1 month and check at the same •  Telecom costs are 35% below the market time their level in the 4 foreign languages. price •  Help for training if recruiting Moroccan people•  Outsourcia will present us a complete reporting every month (5800€ per employee) on a PPT document and they will prepare a reporting call each week to show the quality of their work to ConnectingEnglish.
  7. 7. II / E-learning Services Outsourcing from France to CasablancaAction Plan• To sign up the outsourcing contract and discuss the SLA with Outsourcia – 3 weeks• To make a trip to Morocco to visit their buildings and meet their teams – 1 week• To outsource the salary and CRM – 1 testing month• To report our 1st month of collaboration – 1 day• To train their teams to our teaching methods, briefing about our company/business/targetclients – 1 month• To outsource of our phoning and e-learning – after 3 months – 1 testing month• To report these 4 activities outsourced – 1 day
  8. 8. III / Language training center offshoring for business and sales development in MoroccoCasablanca is the economic capital where there’s a concentration of higher educatedworkforce and a strong equipment rate of the populationReasons to offshore:- Fit a local and a global demand- A place to learn Arabic: global demand (immersion)- A lack of language training center with a full range of languages- E-learning isn’t well develop, it’s a new market with a potential of growthKey features for location in CasaNearshore :A place dedicated to TIC in Morocco launched in 2005• Low rental for trays: 90 DHs/m2 (8€/m2)• Low income tax of 20% (against 40% to 42% for income above 5000 DHs per month)• Tax exemption on profits in the first 5 Y• Telecom costs are 35% below the market price• Help for training if recruiting Moroccan peopleMode of entry: Moroccan law - partnership with a local company specialized in trainingTiming: soon as possible because competition is already there
  9. 9. III / Language training center offshoring for business and sales development in MoroccoResources needed•  Human: 12 teachers (native speakers and professionals) – 5 administrative employees•  Technical: computers, phones, chairs and tables•  Financial: Rental the building, Telecom/Electricity costs, WagesDemand/target market: global demand and local demand, particularly professionals/businessmen.Local demand: call-centers/international and large companiesGlobal demand: companies doing business with the Arab WorldMarketing mixService: 6 languages available: French, English, Arabic, Spanish, Hindi, Chinese – lessons for face to face, phone, e-learning, immersionPromotion: Local Economic Newspapers, Business School, Call-centersPrice: affordable price for Moroccan companies and European companies – Package for business groupPlace: at our local language training center – inside our clients walls – online – phoneCompetitive advantage: A French company – 6 languagesPosition with the French headquarter: 1st center partner for teaching Arabic – a subsidiary in Morocco
  10. 10. III / Language training center offshoring for business and sales development in MoroccoThe budget Function Number Mensual salary (DH) Annual salary (DH)Marketing Director 1 10000 130000HR Responsable 1 10000 130000Accountant 1 10000 130000Chief Executive Officer 1 20000 260000Teachers 12 1200000 15600000Direction Assistant 1 5000 65000Total Cost 16315000 Cost Mensual cost Annual Cost (DH) Annual cost (Euros)Rental cost 25000 300000Water, Internet and Electricity 2000 24000Phones (15) 10000 120000Office furniture 100000 1200000Tables (10 per class) 21000 252000Security and Cleaning labour 5000 60000Salary cost 16315000Total Cost 18271000 1588782,609The turnover Year Number of learners Monthly Training Price Annual Training Price Turnover 1 250 10000 120000 30000000 2 275 10000 120000 33000000 3 300 10000 120000 36000000
  11. 11. Outsourcing VS OffshoringStrengths Strengths•  Reduce and control operating cost •  Be present on a new market: respond to a local•  Focus on core capabilities demand•  Gain access to world class capabilities •  An implementation in the Maghreb Zone: Morocco•  Free resources for other processes as a « country test »: hyphen between Europe and Africa•  Resources not available internally •  Faster time to market by providing visibility into•  Reduce time to market effort, focus and risks•  Accelerate re-engineering benefits •  Lower travel and coordination costs•  Function difficult to manage •  Higher degrees of trust and goodwill and few•  Share risk contract cancellations•  Transfer fixed costs into a variable cost model •  Reduce and control operating costs •  More sophisticated jobs can be create if the less important jobs have been sent overseaWeaknesses•  Loss of control on applications•  Fear of sub-optimal cost Weaknesses•  Quality benefits •  Need for adaptable management practices•  Difficulty of managing suppliers with high process •  Retaining managerial control quality standards and different cultures •  Gaining operational efficiency•  Need to match EMS provider with OEM needs •  New physical, temporal, cultural, and organization barriers •  Proprietary Information: way to teach languages •  Losing customers because the company is engaged in offshoring •  In Morocco, laws are not as protective of workers and the environment as in France
  12. 12. IV / Market entry Optimal mode and Strategy The best solution for Connecting English is to offshore a language training center in Casablanca because this subsidiary could fit with a local and global demand in a long term. Maybe for the moment, htey can just outsource some services to Outsourcia, in order to know better the Moroccan market. Strategic recommendations •  To invest in communications and BtoB event organization, to be recognized •  To be perceived as the leader in language teaching on the BtoB market, within the professional target •  To get paid by customers (Moroccan companies) and ensure them reimbursement by the State up to 75% (it’s guaranteed by the OFPPT for Moroccan companies)
  13. 13. IV / Market entry Optimal mode and StrategyOur Key Success Factors-  We have the best teachers: professionals and native speakers in various businesses-  A worldwide presence and recognition-  A French company with a real know-how-  An innovative way to teach: e-learning, phoning, face to face and immersion-  International clients have confidence in ConnectingEnglish

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