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Champions from Africa: What It Takes to Be a Global Leader

Written by: World Economic Forum

Article Overview: "Aspiration is a driver of socio economic development", said Brian C Bruce, Chief Executive, Murray & Roberts Holdings, South Africa. South Africa has been and remains a critical link in the world, he said. This is exemplified by its leaders Jan Smuts who influenced the future shape of the world between the wars, Thabo Mbeki with his vision for Africa in the 21st century, both bringing different perspectives to the global dialogue.

Champions from Africa: What It Takes to Be a Global Leader

12.06.2003

Africa Economic Summit 2003

"Aspiration is a driver of socio economic development", said Brian C Bruce, Chief Executive, Murray & Roberts Holdings, South Africa. South Africa has been and remains a critical link in the world, he said. This is exemplified by its leaders Jan Smuts who influenced the future shape of the world between the wars, Thabo Mbeki with his vision for Africa in the 21st century, both bringing different perspectives to the global dialogue.

What is the meaning of "being globally competitive"? This was the first question considered in group discussions following the introduction. It means having the ability to compete with other companies, both in the local market and in foreign markets. In the context of the telecommunications industry for example, this could involve servicing outside communications traffic despite the ability of foreign companies to offer such services. Global competitiveness however need not been seen as applicable only to companies' participation in foreign markets but could also be seen in relation to its ability to continue profitability in the local market in the face of participation of foreign companies.

What does it take for a company to become globally competitive? Companies, it was said, need to use technology and innovate with it. This will make the company more competitive. To be competitive, companies must benchmark their performance against that of other companies in the same market. They must ensure that their products meet global standards and meet the rules and regulations enacted in relation to them. Competitiveness also involves producing goods in a better way and to a higher standard than those produced by other companies, thus ensuring that other companies will find it difficult to take the market already established for them.

Participants also said that global competitiveness can be achieved through the preservation of intellectual capital, reducing the loss of trained people through emigration, and continually challenging the people employed in an organization. The most important aspect however is innovation.

How can African companies increase productivity through innovation and technological upgrading? Ironically, it was noted, companies have a greater chance of becoming innovative if they are less successful. This is because the lack of success brings to the fore the need to find it, and this is often achieved through being outward looking and inventive. Productivity may also be increased by identifying what one does not have and then ensuring that one obtains it.

Small industries do experience a particular problem in increasing productivity through innovation. This arises because although they may originate good ideas in dealing with such problems, they often lack the means to implement these, especially in foreign markets. The example of the South African entrepreneur, Mark Shuttleworth, gives one instance of how such difficulties can be overcome. It remains a cardinal rule however that one should stick to doing the things one does best. Participants also identified the following pointers to achieving global competitiveness and increased productivity: Understand the context of your market and study its environment Develop the correct strategies, including those of differentiation and uniqueness Cultivate quality employees and have a succession plan Ensure that you have the best processes and the best systems Invest in research and development Believe in yourself and protect your intellectual property Set high standards Be strong in your local market Educate your decision makers and do not penalize mistakes Identify niche markets and exploit them Replicate successful operations Exercise discrimination when choosing partners

Bruce concluded the session with the observation that Africans have a wealth of material from which to draw their inspiration. By taking note of the richness of our natural environment, we can attempt to replicate it in our business endeavours. In nature, we have grazers and predators. So in the competitive business environment, there are companies that merely draw on renewable resources and those who intend to destroy. Similarly, we should take note that any animal needs to innovate to survive, and that productivity is often enhanced by greater focus on team effort rather than the promotion of any one individual. "We must tap into our diversity which creates energy," said Bruce.

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Article Tags: aspiration, benchmark, brian c, critical link, different perspectives, economic summit, emigration, foreign markets, global competitiveness, global dialogue, global standards, group discussions, intellectual capital, jan smuts, local market, profitability, shape of the world, south africa south, telecommunications industry, thabo mbeki



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