Tuesday, 8 May 2012

Faith



Eternally a subject of thought,
How the heavens and earth came forth
The Sun and Moon that light up the skies
The lush and grandiose landscapes that pleases the eyes

Lost in reverie, enthralled by humanity’s exquisite medley of magnificence and frailty,
The unseen hand of the wind, gently wading through leafy trees
The hush of the mountains, the braggart of the rushing ocean currents,
The preposterousness of The Big Bang Theory, never more apparent

Nature lay replete with evidence
Of a master designer’s bravura, insignia of His essence!
He made the tiny Shrew, the Giraffe that stands tall
I believe in a Creator, author of all.


David is a second year MBA student and can be reached at david.rufai@alumni.lbs.edu.ng

Saturday, 5 May 2012

THE EFFECTS OF NANO-ECONOMICS: A case study on fuel subsidy removal in Nigeria and other tiny economics Macro-Economics won’t teach us about.

During a class in strategy, when we started talking about the brewing industry and the profitability of the industry, I remember this funny article that I wrote and I hope you enjoy it. The Macro economics issues are written in black while the "interesting" nano economic issues are written in red.


Aggregate demand Vs. Aggregate supply: Aggregate demand relates to the total demand for all goods and services to the general price level in an economy and the same goes for aggregate supply. With an increase in fuel price, the multiplier effect would be that aggregate demand would drop and aggregate supply would follow suit. Owing to epileptic power supply and not too efficient transportation systems, the Nigerian populace either as individuals or enterprises are heavily and directly dependent on petrol to power their generators and their vehicles. Invariable, the increased cost would be transferred to the consumers.
Aggregate demand Vs. Aggregate supply: As far as some other Nano-Economic effects much of which Macro-Economics might not capture is that Wife’s will tend to demand more from Husbands that have a reducing supply. This is different because while the supply of Husbands will reduce will increased fuel prices, the demand by wife’s will increase because of price increase in everything from shoes to vegetables.
Disposable Income, Consumption and Employment: In such a situation of increased fuel prices, Income should increase but since no one from government down to our “wonderful” bosses is willing to accept responsibility, income remains statics as organisations face rising cost of operating. Consumption reduces and people have to hold on to their employment with both arms and legs as employers will resort to laying off staff as their operating expenses increase. Therefore people would remain in their jobs without an increased pay and might not even complain about a pay cut.
Disposable Income, Consumption and Employment: The disposable incomes of those running pubs or “beer parlours” if you like have increased, as the consumption of alcohol and its derivatives have significantly increased. Employment rate will reduce and people would hate their jobs and compensation even more. Well, history hardly records of any brewery that didn’t survive a depression (just wondering).
Government spending: According to the CBN, the government would save about $3.94 billion on the reduction in fuel subsidy by increasing the price from 65 Naira to 97 Naira. The funds would be transferred to consumption through investments in capital projects and other “palliative” measures, government would also reduce its internal borrowings and make more money available to the private sector.
Government spending: Well, government spending rarely goes down and even when they decide to reduce basic salaries of the executives by 25% there is a tendency that they could replace that with a “subsidy allowance” that should be equivalent to the deducted 25%. There is no better time to be in government than now. The employment benefits are great.
Inflation, Interest Rates and Investments: Inflation refers to the increase of money in circulation. This is driven by the rise in general prices of goods and services as a result of the increase in the pump price of petrol. Owing to the rise in prices, saving money in the bank will become unattractive and banks will have to increase interest rates to attract deposits and in turn, the cost of borrowing will increase which will adversely affects Investment by firms.
Inflation, Interest Rates and Investments: In times of economic hardship, many more people remember their creator. This implies that the occupancy rate at religious centres will significantly increase and as such, there is a lot of value inflow into religious centres. As such, there is an increased circulation of money in religious centres. Religious centres rarely borrow from banks (instruction from above) so their relationship with banks is usually that of making deposits. As far as investments are concerned, the emergence of religious centres owned high schools, universities, estates, hospitals, hotels, road transport companies and airlines are proof that significant forms of investment are being made religious centre thereby transferring value into the society, providing employment and adding value.
Net-exports and Exchange rates: Net-exports refer to the difference between the imports and exports as a result of the change in fuel prices. Owing to the increase in fuel prices and a resultant decrease in consumption of fuel, importation of fuel would reduce. Importation had increased over the years because of dysfunctional refineries and the excessive subsidies gave rise to increased consumption. With reduced internal consumption, government will likely import less and export more. Exchange rate for the naira against the Dollar will increase as the CBN will demand less dollars which will lead to the appreciation in the value of the Naira.
Net-exports and Exchange rates: Popular statistics has it that of every 5 Africans on any part of planet earth, 1 is a Nigerian. This will probably be revised to 2 because even as Nigeria declined in its exports of agricultural and industrial produce, she increased in export of her oil and particularly her citizens to every part of the world. Harsh economic times mean that Nigerians will flee to Europe, America, Asia and even Antarctica. For exchange rates, let’s look at the increased cost of marriage and parents would now include gallons of fuel in the bride price list and the rate for exchanging (cost) their daughters will increase while the rate of exchanging (frequency) their daughters reduce. Is it not evident?? How many weddings have you attended this year?







By: Dada Olusegun, MBA 10, olusegun.dada@lbs.net.ng

NETWORKING IN 7 SIMPLE STEPS


The ability to properly position one’s self is vital to the attainment of our career goals and objective. The height a person can attain in life does not only involve what you know but more importantly who you know. Your ability to network and stay connected to your network has been proven to be a vital tool to the fulfilment of a persons career objective alongside the numerous benefit that come alongside networking.
In this article, I shall be discussing the seven steps to successful networking.

1. INTERDEPENDENCE. You need to realise that there is need to be connected to one another. Man is a dependent being the earlier you realise this the more important the networking process will be to you.

2. PERSEVERANCE. Good things take time to come to fruition. Therefore, it is important to start building the network before you need them.

3. RECIPROCITY. Networking is not a one-sided affair. You should always think about what you can bring the table that the other party needs. No matter how small just make sure you are not the only person benefitting from the relationship, but the other party has the opportunity to do the same.

4. SIMILARITY. It is important to befriend not only those with which you have the same similarities but also those with which on the surface you seem not to share anything in common. Taking the time to step out of your comfort zone may greatly help your networking.

5. PROXIMITY. It is important to stay in proximity to your contacts either via any of the communication channels available to us in the modern era. Getting actively involved with you network is a good way to maintain nearness.

6. CROSS-FERTILIZATION. Successful leaders are able to influence contacts from one network to another. Think about the people in your contact list. Who needs attention? Who is owed favours or needs your help? Always think of your network as a lifetime journey, rather than a onetime effort.

7. SOCIABILITY. In order to network successfully it is important to find venues and situations in which you actually enjoy networking. Meeting new people can be fun, as long as you find out what works best for you and don’t approach it as a chore.

Take the time to lead a well rounded life, start making the most of your contacts because these relationships are a valuable source of energy and self-confidence.


By: Gozie O. Obinwa, MBA 10


Thursday, 3 May 2012

PREPARING TO DO BUSINESS IN AFRICA? CAREFUL NOW!!



Africa’s impressive growth over the past decade is bringing new wealth and investment opportunities to the continent as global firms scramble for a share of the market by entering or expanding their local operations. But despite the opportunities, investment and business risks in the continent are becoming more diverse and complex, making it necessary for businesses to carefully plan and implement their activities in order to overcome the challenges of the continent’s tough business terrain. 

As global companies seek to take the opportunities in Africa’s growing markets, a detailed study of the social and political environment of target countries is required to measure and anticipate political risks ahead of time. Often times, businesses need to build continuous relationships with leaders in order to safeguard their investment and such relationships are easily broken when there is an unplanned power transfer between successive governments with different economic agenda. As with FirstRand’s acquisition of the Finance Bank of Zambia which was overturned by President Michael Sata after he took over government in 2011, anticipating political risks help organizations decide whether to enter markets via an acquisition, partnership, joint venture or as a stand-alone. Appropriate timing is also very critical to carrying out business activities in such markets and therefore companies should enter markets with high prospect of political stability before those with volatile political climate.

Corruption is a major concern for African countries, with 9 of the top 20 corrupt countries in the world from Africa. Therefore when entering into transactions, particularly with government institutions, contract terms and agreements should be clear and precise, protecting the interest of the company, and working to avoid compromising organizational brand and core values. In 2004, Vodacom chose to protect their brand and values rather than complete their takeover of Econet Wireless in Nigeria as a result of allegations of corruption arising from shareholders dispute and allegations of illegal brokerage payments to certain state governments.  
A peculiar problem facing African companies includes challenges with procurement and logistics due to infrastructure deficiencies. Inefficiencies at ports, poor roads and complex regulations exist in most countries and leaves companies with spiraling costs, therefore, organizations should seek partnerships with local firms with expertise in handling logistics and procurement needs to develop a cost-effective supply chain that will add value to the organization and its customers.

Also, products and services in Africa should take into account the culture and special nature of the market. With low income levels being common, product prices are an important consideration for most African consumers. Therefore products and services should be affordable to the desired target market. Furthermore, in embracing African cultures, marketing efforts ought to reflect strong elements of Africa’s culture and value, while corporate social responsibility programs can be used to engage local communities and create brand awareness to ensure a win-win situation for new entrants into the African market.


Babatunde Jemi-Alade is a second year student at the Lagos Business School, and can be reached at babatunde.jemi-alade@alumni.lbs.edu.ng

Wednesday, 2 May 2012

LBS Tweetmeet


We would be having a strategy discussion with our world renowned strategy facilitator, Dr Tunji Adegbesan. The discussion is titled "Will you thrive or lose your way in Africa 3.0? Five Key Strategies to Ride the Coming Boom"

The discussion will centre around opportunities in Nigeria that we can position ourselves to take advantage of as the world's focus shifts to Nigeria.

This sounds like fun, and you are all invited to take part in the discussion.
Invite your friends, and please spread the word.

Venue: Twitter
            Follow the school on twitter @LBSNigeria
            The hashtag for the tweetmeet is #LBSBusinessInsights.
Time: 6pm
Date: Thursday, 3rd of May 2012


See you there
Steph

Friday, 27 April 2012

My Transformation


During my admission interview, I asked my interviewer if a graduate with an arts background would be able to cope with the level of number crunching required on the programme, she assured me that I would. Soon enough I realized that to survive, I had to be a go-getter.

The splendid transformation began the very moment I stepped into the school premises. It was really fun- filled, but before I knew it, the steam was blowing hot.
It was way too difficult for me to adapt to the case and class participation method of teaching adopted by LBS. The combination was like a sound of multiple bomb explosions in my brain.

I struggled, strived and as a passionate survivor I devised a means of achieving personal transformation. LBS instigated a tremendous change in me. It was like passing through a burning furnace and coming out renewed. I practically experienced the fact that “knowledge is power!”

The MBA experience has given me a great competitive advantage and it has revealed my other hidden potentials which I can now utilise to create and add value in society.

Ada Igah is a second year MBA student, and can be reached at adamma.tochukwu-igah@alumni.lbs.edu.ng

Thursday, 26 April 2012

My first week, this semester


Interesting week it was, I must say. We came back from a short four day break to begin the third semester and all my colleagues were looking forward to the course, Strategy Management.  Some time ago, the facilitator of the course, Dr Tunji Adegbesan sent us a mail on how he was looking forward to meeting us and jokingly told us that the course was the life blood of the MBA program at LBS.

In trying to sum up the most important part of the 1st week of the semester, I would definitely say it is the three Strategy Management sessions we have had.  I learnt that one has to be careful not to follow conventional logic and also that before you move all out to start creating a strategy for your business, make sure you are operationally effective in the first place. Being operationally effective might just give you an advantage over your competitors, especially in a terrain like Nigeria where people just want to get paid for delivering minimal value.

Oghenerume Sigbenu is a first year MBA student at the Lagos Business School. He can be reached at lucky.sigbenu@lbs.net.ng

Wednesday, 25 April 2012

Of ‘Strategic’ Strategies and ‘Tactical’ tactics!


These days, (with the benefit of having enrolled onto a rigorous full-time MBA programme whose coursework is laden with its fair share of pseudo - academic jargon and ‘industry proprietary language’ across disciplines such as Finance, HR, Marketing, Operations Management & Logistics, IT etc), I have somewhat unwittingly become wary of such words like ‘strategic’  and  ‘creativity’, and consequently, have found myself becoming instantly suspicious of frequent proponents of the word, both in verbal exchanges and documented presentations…..as a matter of fact, it is not uncommon to come across people – professionals, MBA students, ‘management’ consultants and others in such ilk brazenly throw such buzzwords, terms and phrases around in discourses, presentations e.t.c,  to the extent  that some folks apparently cannot help mentioning the word strategic at least once in every other sentence, culminating in the effect of making otherwise ordinarily meaningful and purposeful words lose their very essence, thus becoming little more than weather-beaten clichés…..I can almost swear I’ve heard the ludicrous phrase ‘Strategic tactics for long-term growth’ in use by someone somewhere.

Particularly in my area of interest (and specialization), I have observed this is one plague to which many a marketing/brand consultant succumbs to. Now, in the field of marketing, one fundamental realization is that brands are complex, abstract and difficult to pin down. However, in endeavoring to define them, it appears we oftentimes forget this. With techniques such as brand pyramids and a thousand and one other varied, complex ‘proprietary tools’ of different orientation, we attempt to constrain and control them. Rather than trying to understand brands in their natural habitat, we box them in enclosures-turning them into guinea pigs of sorts. We do recognize, of course that pyramids, onions, mappings, brand wheels, master brand keys and other myriad techniques indeed can prove to be useful tools/disciplines that help in the distillation process – but a key and objective question remains that  ‘do they really help define the unchanging core values of a brand?’ We spend ages debating and rationalizing the nuances of synonyms, performing semantic gymnastics to prove that Brand X is different from Brand Y, and ceaselessly agonizing over whether something is an Emotional Benefit or a Brand Value or in fact the selling proposition – a distinction we struggle to understand in the first place. At the end of the day, where does all of this get us in real terms? More often than not, a pile of disjointed words that look like little less than explosions in a bombed-out thesaurus factory. Unfortunately, when we eventually succeed in building our pyramids and agreeing that our brand is contemporary, stylish, relevant, inclusive and other usual suspects, we fall into the trap of thinking our job is finished. In reality, though, we are no closer to articulating ‘core essence’ than when we began – even if that particular box has been filled in. What should be rich, complex and, by definition, pain-staking to articulate only ends up more confusing and sadly subjected to assisted suicide by a thousand adjectives and buzzwords., by no means helped in the least by the phenomenon called Microsoft Power-Point (Like one of my clients, a senior marketing manager with one of the banks, while I was working on the agency side was wont to say “As if we strong brands had not been successfully built and nurtured long before the advent of Microsoft Powerpoint)

The foregoing brought to mind our recent encounter as MBA candidates (and job-hunters!) while attending a ‘rigorous’ assessment centre conducted as part of recruitment processes by one of the major GSM telcos in Nigeria just last December. At the assessment, we were expected to make individual presentations around a business case, and were prevented from utilizing Microsoft Power-point, so as to make for a level playing field where thoughts and ideas could be evaluated and appraised in their raw form, on the basis of what I’d term ‘intellectual merit’, making for the separation of what is intellectual substance on one hand, and what are merely ‘superficial’ aesthetics on the other, which is one thing the phenomenon called Powerpoint adequately avails us all of….in a sense, it’s like what they say about the visual representation of a girl you meet on Facebook, a platform on which ‘profile pictures’ have been severally airbrushed and notoriously embellished thanks to Adobe Photoshop.

Do not get me wrong however!

I’m not saying there’s no provision at all for a competent MBA or consultant as the case may be to display his well-earned ‘swagger’. If at all anything, it’s what sets you apart from the crowd and even increases your clients’ “willingness to pay” in certain instances…..or on a lighter note, I ask rhetorically “how in fact do you want them to know you attended Harvard..or INSEAD…or Lagos Business School if you don’t, in fact, engage in some occasionally well-timed term-dropping?”

Our own Dr. Tayo Otubanjo never ceases to emphasize the fact that in the boardroom, it’s as much a battle of WORDS as it is one of wits, and as an MBA desirous of making ‘impact’ in the corporate battleground out there, you just must bring yourself to terms with the prevailing industry jargon…Talk, as they say, is cheap quite alright, but if you’re skeptical about the essence of ‘talk’ (with or without requisite action to back it up!), check out our revered statesmen, politicians and captains of industry, they certainly do have their uncanny ways with words. So, you see, there’s indeed a place in the scheme of things for buzzwords, howbeit backed with impeccable content.

My guess is that as a consultant, an MBA or a professional generally, the onus lies on you to figure out your audience or client…you’re better off knowing what makes them tick……..some may get blown away from your nice power-point slides and technical jargons, while others place premium on getting to the ‘meat’…the real insights from your work…..whichever side of the divide you find yourself, ensure your work or presentation adds some deal of tangible value… not just a barrage of what my strategy teacher here at LBS humorously terms as ‘HOT AIR’, only embellished with the aesthetics of colorful power-point layouts, cumbersome tables and charts and interspersed with high-sounding pseudo-academic jargon such as, to mention a few, such as ‘brand hegemonisation’, ‘brand oxygenation’,  ‘socio-cultural attitudinal nuances’, ‘paradigms’, ‘de-massification’,  ‘reconceptualization’, ‘splinterization of markets’, ‘symbiotic linkages’, ‘dimensionalization’…….I’ll stop here as I reckon you’re probably rolling on the floor laughing at this juncture.

The take-out is that there’s absolutely beauty in simplicity….howbeit logical simplicity.
Interestingly, I read that Lord Rutherford used to tell his staff at the Cavendish Laboratory in Cambridge that if they couldn’t explain their physics to a barmaid, then it was bad physics!

Frankly, it’s a trap I’ve fallen into myself at various times and I agree that it takes conscious effort to guard against falling victim. Pondering on all of it however, I reckon It definitely was not intended to be this complicated!

Tomi Ogunlesi is a second year candidate on the FTMBA programme at Lagos Business School with interests in marketing and brand management. He can be reached at tomijogun.ogunlesi@alumni.lbs.edu.ng

Wednesday, 18 April 2012

MBA Student of the week


Currently an MBA student at the prestigious Lagos Business School, and a First Class Degree holder in Computer Science from the University of Lagos, Jide Olatunbode is poised to take the world by storm. Jide has a strong background in IT having worked with top firms in the IT industry and is also a freelance software developer.


Jide is a strong believer in the Nigerian dream. He believes that given the right structures and people at the helm of affairs, Nigeria could attain greatness. 


In his spare time he speaks to secondary school and university students on academic excellence. 


He also has a soft spot for the yummy things of life such as cake and small chops, as evidenced by the picture above.


Jide's writeups are archived at http://readjideswords.blogspot.com

Tuesday, 17 April 2012

Times



Times I wake and wonder what lurks in 24hrs duration in a black nation

Times I listen to communication, only to get PDP drummed into my perception

Times I hear our leaders utter words of deception for our adulation

Times I switch on the set to see aversion within a black nation

Times I quail when given information of nearby depredation

Times I assess how pauperization has ruined a gifted multiplication

Times I witness the scenario lead to perversion of our generation

Times I stay in familiarization with others for 90 minutes duration

Times I hear conversation lead to talk of emigration

Times I wonder if having a black coloration is a transgression

Times I feel abduction from my Southern habitation

Times I struggle to relaxation with a body in desolation

Times I sense an inspiration of no social transformation.

How I wish I could be relieved of such Times