Kelley Indianapolis MBA Student in South Africa

While in South Africa, we have arranged business meetings with several multinational companies to discuss what it takes to do business in South Africa. Among the companies that we met with were Cummings, Eli Lilly, and SAB Miller. The first two are familiar Indianapolis headquarter companies and the other is a South African beer maker who acquired the American firm Miller Beer. We met with director of the South African business unit of Eli Lilly and Cumming and met with the CEO of SAB Miller.  Having the opportunity to met and gain knowledge from the management of these companies was priceless.

It was interesting to hear how the businesses had to adjust when developing a presence in a foreign country. A company has to worry about understanding the culture and consumers of each country that they serve. They must understand the population, government regulations, and environment that they are going into. For example South Africa has a large population of undereducated people due to the education system during Apartheid. Many companies stated that they were experiencing a shortage of skilled people to choose from in terms of employment. There are many unemployed people in the country, but they are unable to perform the tasks needed. Also South Africa has regulations that companies must adhere to within the country even though the companies are not headquartered in the company. In order to do business in the country they must be in compliance with these regulations in addition to the ones in the US. Being social responsible was also a key of each multinational company.

All of the meetings were interesting, but the meeting with SAB Miller’s CEO, Norman Adami, was my favorites. He took the Miller brand and nursed it back to life. The company is one of South Africa’s outstanding companies. They take pride in developing their employees with training. They also empower employees within the companies as well. SAB Miller allows their drivers to own their trucks. Not only did it serve as a way to gain wealth for the employees but also made them more productive adding to the efficiency of the business. He also gave some nuggets of wisdom to us:

• Make reality your friend: Look at all the facts
• Strategy is situational: sometimes your strategy will have to change depending on the situation. Don’t be so ridged.
• Strategy must be bold.
• Find the genius in simplicity
• Leadership requires the both the head and the heart.

Our trip started in Johannesburg, the business capital of South Africa. First we reinforced the history of the country that we studied by visiting a couple of the city’s historical sites like the Hector Peterson Memorial, Vilakazi Street(home of two Nobel Peace Winners), and the Apartheid Museum. It amazes me the parallels of the South African Apartheid to the Civil Rights Movement in the US. Most citizens just gained their independence in 1990. Previously the country had been divided by race in everything from where you were allowed to live to what type of job you were allowed to have.

The museums and memorial were very insightful into the history of South Africa. Hector Peterson was a young child who was shot during youth protest. This event helped to start the beginning of the end of apartheid in South Africa. We also saw the Apartheid Museum which gave a detailed account of the separation created by the Apartheid period and the events that ended them. International pressure such as sanctions from the US and other countries due to the unjust treatment of the black African people was a major factor in the end of apartheid. Both of these museums were very moving and caused you to think about how many people gave their lives for the things that they believed in. We also saw the home of the first president after Apartheid was ended, Nelson Mandela.

This portion of history must be understood when trying to understand the business and economic environment South Africa. There are huge disparities in education and economic wealth within the country. When we arrived at the airport, you immediately noticed large communities of shacks with tin roofs alongside the road. In other places you see large houses surrounded by gated fences and armed guards. The unemployment rates are officially around 25%, but are probably even more than that figure. It was sad to see the huge gap in economic status. While some lived in complete poverty others lived in absolute wealth. There is a large population of the black African population who are uneducated and unskilled as well.

After a 17 hour flight to South Africa, I was happy to get off of the plane. I smiled to myself. I was finally in South Africa. I took a deep breath and tried to take in all the around me. The weather was beautiful and so was the scenery. I would be joining my other 7 classmates and Professor Lyles for 10 days in the country of South Africa. After months of reading, discussing, and researching the country, I was finally there. I could not wait to experience all the country had to offer.

Before I give you my experiences in South Africa, please allow me to introduce why I'm here. My name is Yvonne Gilbert and I am a current Evening MBA at the Kelley School of Business. I have a concentration of Marketing and Supply Chain Management. This is my last semester at Kelley because I will be graduating in May. When I first started at Kelley I only knew that I wanted to hone my marketing skills. Since then I have gained so much valuable experience from Kelley through different enterprises and consulting projects. These experiences will make me more valuables as a potential job candidate and stand above other applicants. I currently have my sights set on international experience, which brings me to the reason for this blog.

In the spring, I started taking the Emerging Economy class taught by Professor Marjorie Lyles. This semester the class focuses on South Africa. As the name implies, the course focuses on the emerging economies around the world. Previous classes have focused on Russia and Brazil. The first half of the class consists of studying the emerging economy of a country. We read different books and articles, watch documentaries, and produce papers about the economy. To supplement our learning, we have different speakers to talk to us on different aspects of the emerging economy. The second half of the class consists of seeing the country first hand. We will be visiting various businesses and government offices in the country to see how they operate in the country. The culmination of the class is a group paper centered on a specific issue relevant to the country.

I chose to take this class for various reasons. Here are a few:

• Companies are looking outside of the US for growth opportunities. Most of these opportunities come from emerging markets. Learning about different aspects of the emerging economy will allow you to be more marketable a potential employee.
• Getting international experience. We are able to learn about and from several international companies in South Africa. Being able to ask these companies about their strategies in different countries is priceless.
• Learning about different Cultures. I have traveled internationally before and I enjoy learning about other ways of doing things. You can always learn a thing or two from other people.
• Getting to visit South Africa. It's a beautiful country. I jumped at the chance to visit it.

Now that we have gotten all the introductions of myself and the class out of the way, the next blog entry you will see from me will be about my experiences in South Africa. Until next time....