Assignment on Leading and Managing Chaos
Introduction:
Establishing a new business had always been a challenge for the entrepreneurs, especially when the nature of business, location or the target market is unpredictable. There are multiple internal and external factors that affect the overall performance and productivity of any business in a long run. Moreover, a competent and efficient leadership that is comprised of self confidence, efficient decision making, strong-willed and Social boldness, plays a major role for the success of any business. It has been witnessed that entrepreneurs utilizing their experience, self-confidence and timely decision making, gain success in a long run.
Considering the case of Celtel and Mo Ibrahim establishing a mobile phone network company in Africa, the significance of an efficient leadership and social bonding can be highlighted. As stated by Opoku & Ahmed (2015) that leadership plays a key role in ensuring success in almost any initiative within an organization. The strategies adopted by Mo Ibrahim to establish a new business in a highly volatile environment and his timely planning can be used as a guidelines for the managers in their respective fields.
Background:
Mo Ibrahim influenced by his knowledge of telecommunication and work experience with British telecom foresighted the necessity and progress of a mobile telecom business in Africa. Though initially it seems to be impossible of launching a highly technical business in a region that was deeply influenced by corruption, low literacy rate, political issues and war among different tribes but Mo Ibrahim was quite confident that he will successfully establish a cellular company in an unstable region.
Mo Ibrahim took start with only five staff members. As stated by Lopus (2013) that foreign investors may decide that it is too risky to invest in a developing country if the country under construction is politically unstable or does not have a system in place for protection of property rights. It was the biggest challenge faced by Mo Ibrahim, he had to put up all his assets for the acquisition of a few million dollars loan. Moreover, recruiting experienced and prominent executives as his board members like Vodafone’s first CEO, a former prime minister of Tanzania and a former deputy chief executive of British Telecom, aided Mo Ibrahim to gain reliability and favor of the concerned government departments. Within few years Celtel was well established in most parts of Africa. Later on it was acquired by a Kuwait based company ‘Zain’ and then ‘Airtel’ of India.
Celtel and its challenges;
Over the past few decades, wireless communications have become essential in everyone’s daily life (Figueiras & Frattasi, 2010). though Celtel was an innovative idea and appears to be more productive for a region where most of the parts were without any fixed-line phone networks while in other parts there were very few as compare to the number of population. But at the same time, Celtel project was faced with multiple challenges. The overall economy was not stable, investors were very rare, infrastructure was not developed, most of the parts were without electricity, political situation was not favorable, even there was war going on in some parts. Kowalski (2006) stated that good leadership is essential to any business succeeding over the long run. The entire credit for the success of Celtel in Africa goes to the efficient leadership skills and logical planning of Mo Ibrahim.
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