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BACHELOR THESIS Spring 2012 Kristianstad University International Business- and Bank & Finance Program To what extent are Swedish companies following the traditional internationalization theories when entering Africa? Authors Isak Johansson Therese Svensson Supervisor Agneta Moulettes Examiner Christer Ekelund

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Page 1: To what extent are Swedish companies following the traditional …556822/FULLTEXT… ·  · 2012-09-26To what extent are Swedish companies following the traditional internationalization

BACHELOR THESIS

Spring 2012 Kristianstad University

International Business- and Bank & Finance Program

To what extent are Swedish

companies following the

traditional internationalization

theories when entering Africa?

Authors

Isak Johansson

Therese Svensson

Supervisor

Agneta Moulettes

Examiner

Christer Ekelund

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Abstract

Globalization has been a hot topic recently. Many firms experience that their domestic

market is too limited for them to conduct their business in. This restriction leads to

firms seeking customers on different markets, in different nations, where the

companies’ supplies meet the consumers’ demands. Therefore, companies are

constantly seeking new places to do business in. Developing economies have been in

the scope of many firms recently, with China being in the frontline with its massive

labour force and cheap labour costs. However, attention is heading towards the African

continent, with its rich natural resources and, like China, large labour force.

The purpose of this dissertation is to see how Swedish firms have tried to establish

themselves on the emerging African market. In order to achieve this, an abductive

research approach has been selected. Qualitative interviews with important people in

four Swedish companies have been conducted.

The empirical findings suggest that Swedish firms have great opportunities to enter the

African market and continue to develop there. Furthermore, there is no method of

expansion that is better than another. It all comes down to what specific assets that

characterize the company in question. Whether it is a service-oriented company, a

manufacturing company or an exporting company will perhaps decide what entry mode

would be most suitable.

To our knowledge, there is no dissertation that deals with this topic. Consequently, this

paper will highlight this research area.

Key words: FDI, Africa, Swedish companies, internationalization, traditional

internationalization theories

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Acknowledgement

First, to our tutor Agneta Moulettes, who has guided and helped us through this stressful

period of time. To Annika Fjelkner, for giving us helpful advice as well as enabling our

writing skills to improve. To Timurs Umans, for his availability and information

updates, which has helped us understand what is demanded from us.

Furthermore, to Marie Englesson, Björn Falk, Lina Jorheden and Mats Jörnell for being

very cooperative and understanding during the whole interview part of the dissertation.

Finally, to our beloved family members and friends for reviewing this dissertation and

supporting us during this demanding semester.

Thank you.

Kristianstad, 2012

____________________ ____________________

Isak Johansson Therese Svensson

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Table of Contents

1. Introduction ................................................................................................................... 6 1.2 Purpose ........................................................................................................................ 8

1.3 Research questions ...................................................................................................... 8 1.4 Research philosophy ................................................................................................... 9 1.5 Research approach ...................................................................................................... 9 1.6 Theoretical limitations .............................................................................................. 10 1.7 Outline ...................................................................................................................... 10

2. Theoretical framework ................................................................................................ 11 2.1 Introduction ............................................................................................................... 11 2.2 Choice of theory ........................................................................................................ 12 2.3 Foreign Direct Investment ........................................................................................ 12

2.3.1 Acquisitions and Greenfield investments ........................................................... 13

2.3.2 The pattern of FDI ............................................................................................. 14 2.3.3 Why FDI when profitable and less riskier alternatives exist? ........................... 15

2.3.4 Benefits and costs of FDI ................................................................................... 15 2.4 Exporting and licensing ............................................................................................ 16

2.4.1 Exporting ........................................................................................................... 16 2.4.2 Licensing ............................................................................................................ 17

2.5 First mover-advantages ............................................................................................. 18 2.6 Economies of scale ................................................................................................... 18 2.7 The Uppsala model ................................................................................................... 19

2.8 Summary of theories ................................................................................................. 19 3. Methodological considerations and research techniques ............................................ 22

3.1 Choice of methodology ............................................................................................. 22 3.2 Atlas Copco, Atsoko, Findus and Samres ................................................................. 22

3.2.1 Data collection ................................................................................................... 23

3.3 Operationalization ..................................................................................................... 24

4. Empirical findings ....................................................................................................... 27 4.1 Atlas Copco ............................................................................................................... 27

4.1.1 Atlas Copco’s strategy ....................................................................................... 27

4.1.2 Atlas Copco’s target groups and competitors ................................................... 28 4.1.3 Experienced difficulties and obstacles ............................................................... 28

4.1.4 Lessons learnt from previous expansions and predictions of the future............ 29 4.2 Atsoko ....................................................................................................................... 29

4.2.1 Atsoko’s strategy ................................................................................................ 29

4.2.2 Atsoko’s target group and competitors .............................................................. 30 4.2.3 Experienced difficulties and obstacles ............................................................... 30

4.2.4 Atsoko’s predictions of the future ...................................................................... 30 4.3 Findus Sweden AB ................................................................................................... 31

4.3.1 Findus’ strategy ................................................................................................. 31 4.3.2 Findus’ target group and competitors ............................................................... 31 4.3.3 Experiences difficulties and obstacles ............................................................... 32 4.3.4 Lessons learnt from previous expansions and Findus’ predictions of the future

.................................................................................................................................... 32

4.4 Samres ....................................................................................................................... 32 4.4.1 Samres’ strategy ................................................................................................ 32

4.4.2 Samres’ target group and competitors .............................................................. 33

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4.4.3 Experienced difficulties and obstacles ............................................................... 33

4.4.4 Lessons learnt from previous expansions and Samres’ predictions of the future

.................................................................................................................................... 33 5. Analysis ...................................................................................................................... 35

5.1 Analysis of Atlas Copco ........................................................................................... 35 5.2 Atsoko ....................................................................................................................... 36 5.3 Findus Sweden AB ................................................................................................... 37 5.4 Samres ....................................................................................................................... 39 5.5 Comparison of analyses ............................................................................................ 40

6. Conclusion .................................................................................................................. 44 6.1 Summary and concluding discussion ........................................................................ 44 6.2 Critical review ........................................................................................................... 44

6.3 Ethical aspects ........................................................................................................... 45

6.4 Limitations ................................................................................................................ 45

6.5 Further research ........................................................................................................ 46

Bibliography ................................................................................................................... 47

Appendices

Appendix 1: Interview guide ........................................................................................... 51 Appendix 2: Interview questions .................................................................................... 52

Appendix 3: Interviews ................................................................................................... 54 Appendix 3.1 Interview 1, Lina Jorheden, Business controller, Atlas Copco ............ 54 Appendix 3.2 Interview 2, Björn Falk, CEO, Samres ................................................. 58

Appendix 3.3 Interview 3, Mats Jörnell, Head of export, Findus Sweden AB ............ 66 Appendix 3.4 Interview 4, Marie Englesson, CEO, Atsoko ........................................ 73

List of figures Figure 1.1 Abductive research process ............................................................................. 9

Figure 2.1 A decision framework ................................................................................... 18

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1. Introduction

In this chapter, the dissertation will be introduced. In addition, the purpose, research

questions, research philosophy and research approach will be presented. Finally,

theoretical limitations and outline will be described.

“Foreign direct investment in Africa -- which can make an

important contribution to the economic development of the

continent-- has increased only modestly in recent years, as the

image of Africa among many foreign investors still tends to be one

of a continent associated mainly with political turmoil, economic

instability, diseases and natural disasters”. – United Nations (1999

p. IV)

Even though international trade has existed for many, many decades, its significance for

the current global economy has increased lately. There are many upcoming economies

on the horizon – such as Brazil, India, China and many countries in Africa. Some of the

up and rising economies in Africa include Rwanda, Tanzania, Senegal and South

Africa. With China showing an impressive GDP rate of 10.3% during the second

quarter of 2010 despite the global recession of 2009, many nations will wish to copy

their winning formula (CNN, 2010). Furthermore, Brazil is also displaying impressive

growth rates, recently over passing the UK to be the sixth largest economy (The

Guardian, 2011). However, Brazil is still struggling to maintain its middleclass, with

many immigrating to Europe. If they can find a solution to the scarcity of jobs in the

middleclass, many experts believe Brazil can climb even higher up the ladder (BBC,

2012). Another up and rising player in the global economy is India. Being labor

intensive and cost effective, India has developed greatly in recent decades. Even though

they have suffered from domestic issues, that have affected the growth negatively, IMF

is still anticipating a growth of 6.9% in 2012, according to Business Standard (2012).

Furthermore, the African market has not received as much attention as it perhaps

deserves, being plagued by political and economic instability for many years which

keeps foreign investors away. We find it interesting to see as to why such a rich

continent of natural resources and labor force has been overlooked. These emerging

economies create many new possibilities for companies wishing to expand their

markets.

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Since we believe the African market offers a lot of opportunities for companies to take

advantage of, along with being relatively unexplored, we chose to focus on this

continent. Also, many of the internationalization theories explained in later chapters

have been used in expansions to Asia as well as other foreign markets before.

Therefore, we wonder if these are applicable to companies’ expansions towards an

unexplored African market today. Furthermore, we are going to focus on growing

economies such as Tanzania, Rwanda, South Africa and Senegal (Regeringen, 2011).

Most of these countries are dominated by great poverty and rely a lot on their exports,

where over 80% is exported to non-African countries (Regeringen, 2011). South Africa

is the country that has developed the most out of these four. Studying a relatively

developed country, such as South Africa, along with developing countries, as the other

three, will perhaps offer us deeper understanding of our research question. Also,

comparing countries in different phases of internationalization and development may

offer different answers or patterns. At this time, there are already a few Swedish

companies in a variety of industries located in these countries, which make these

countries specifically interesting. It would be completely unnecessary investigating

countries where Swedish companies are absent.

To expand globally is of significant interest for many companies today. A new trend

when it comes to global investment flows is mostly in FDI in developing countries

(Cotton & Ramachandran, 2001). According to Cotton et al. (2001), one of the most

important reasons behind the development of the global economy is the increased

participation of developing countries in foreign investment. With the world constantly

growing more global, many firms experience that their domestic market is too limited

for them. This creates an incentive to expand to new markets abroad where the firms’

supply meets the consumers’ demand.

There are different methods the firms can use to enter foreign markets and they all bear

different risks and costs. We are focusing on three different alternatives; Foreign Direct

Investment (FDI), exporting and licensing. An important factor to take into account

when entering a new market is the timing of entry. The theory of first mover-advantages

will be developed in the next chapter when we describe the choices of theory.

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The latest decade the aim has been focused on Asia when handling with FDI and

expanding abroad. Many companies have relocated their companies there or exported to

those locations. We want to see if Africa can offer the same array of opportunities as the

Asian market has shown. The history of good experience when establishing in Asia

brings good strength to continue establish in developing countries and lowering the

resource gap (United Nations, 2005). Furthermore, in a world economy where

cooperation’s are constantly seeking new places to conduct their businesses, the

emerging African market will probably be in the scope of many firms in the time to

come.

For the dissertation we want to see how Swedish companies can develop and survive in

a relatively new market. Swedish firms have the latest decades expanded to new foreign

markets and the Asian markets have lately been of high interest for many of them.

Many firms take the opportunity to absorb the competence and technology that other

countries have. One large market that is relatively undeveloped is the African one. This

is why we choose to look at the Swedish companies and in which ways they can, and

how they actually do, establish themselves in this region, more specifically in the ones

we have named above. The outcome of this dissertation will shed some light on how

Swedish companies are expanding to African markets.

1.2 Purpose

The purpose of this thesis is to explore how Swedish firms can establish themselves in a

new market and if they are following the traditional internationalization theories. We

are focusing on the African market, and more specifically in South Africa, Tanzania,

Rwanda and Senegal. It is no secret that firms wish to expand their businesses to new

markets to reach more consumers. Then, what is the best possible way for a Swedish

company to enter the African market? Is there a specific industry that is more suitable

for those markets than others? Is expansion to Africa more suitable for SMEs (Small

and Medium Enterprises) or large corporations? The outcome of our research will

highlight significant factors that Swedish firms need to consider before entering these

new markets, as well as after to be able to survive.

1.3 Research questions

To what extent are Swedish companies following the traditional internationalization

theories when entering Africa?

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- Are the traditional internationalization theories still applicable to new companies?

1.4 Research philosophy

Interpretivism claims that the social life is far too complex to be generalized into law-

like assumptions, contrary to what the positivistic approach argues (Saunders, Lewis &

Thornhill, 2009). This ideology focuses on the human factor, rather than items

(Saunders et al., 2009). We have chosen the interprevistic approach, since our aim of

this dissertation is to see the emerging patterns of Swedish firms trying to establish

themselves in Senegal, Rwanda, Tanzania and South Africa. This is because we believe

that it is not sufficient to simplify this problem by creating a general model for Swedish

firm to follow. We believe that many factors can influence a Swedish firm’s chances in

Africa. Furthermore, we are of the opinion that we will gain a deeper understanding of

the firms’ reasoning by doing personal interviews. Basically, a complex topic like ours,

calls for the interprevistic approach.

1.5 Research approach

This dissertation has an abductive research approach. The dissertation is based on the

collection of qualitative interviews, which makes this approach suitable. Abductive

research, as shown in Figure 1.1, begins with examining existing theories. The middle

stages of the abductive research approach is matching these old theories with new ones,

and applying this onto real-life observations. After this point, a conclusion is drawn,

where an assumption or something similar to a generalization is created. Since it is

impossible to say that any Swedish company is applicable to the conclusions of a

qualitative study, due to the fact that only a limited number of companies are examined,

an abductive research approach is appropriate.

Figure 1.1 Abductive research process

(International Journal of Physical Distribution & Logistics Management)

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1.6 Theoretical limitations

Our dissertation is focusing on the different entering modes a firm can use for

penetrating a new market and which modes they are actually using. Thus, our

theoretical limitations will be restricted to theories dealing with companies expanding

internationally. To examine the whole African market would make the dissertation to

broad. Consequently, we have chosen to focus on Rwanda, Tanzania, South Africa and

Senegal.

1.7 Outline

This dissertation is divided into six major chapters. The first chapter introduces the

dissertation, declares the research purpose and research question. This chapter ends with

a short discussion of theoretical limitations. The second chapter introduces our choice of

theories and ends with a summary and conclusion of these. The third chapter presents

our research philosophy, research approach and an introduction of our examined

companies. Also, our choice of operationalization is described. Chapter four is

describing our empirical findings from our conducted interviews. Chapter five analyzes

chapter four’s findings and ends with a short summary. Chapter six consists of a

concluding discussion, limitations, further research and critical review.

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2. Theoretical framework This chapter will present an introduction of the reviewed literature. Additionally,

traditional as well as new internationalization theories that are relevant to this

dissertation will be presented. Finally, a summary of these theories will be found as

well.

2.1 Introduction

Traditional internationalization theories consider how establishment abroad can be

achieved. FDI, exporting, first mover-advantages and economies of scale are examples

of traditional internationalization theories. The reason why we choose to focus on these

is because we think they are the most central ones to our research question and

dissertation. These theories describe different methods used and possibilities required to

branch out to new markets.

Previous research discusses how companies reason when choosing their mode of entry.

When firms choose their mode of entry, they make the important choice of how to

market their product. This can be an important process when it comes to a firm’s

survival in the foreign market (Eckeledo & Sivakumar, 2004). According to Dunning &

Lundan (2008), three factors conclude what entry mode a company should undertake.

These are ownership-specific advantages, location factors and internalization factors;

the OLI-model. They find that the required level of local representation from the

company is decisive when choosing mode of entry. Also, determining factors include

firm specific assets and how these assets are used. It is argued by Dunning et al. (2008)

that the more a company fills these criteria; a wholly owned subsidiary is preferred. In

other words, a more active mode of entry is preferred when a high level of commitment

is necessary, suggestively FDI. Furthermore, depending on certain company goods and

assets, a certain mode of entry is of interest. For instance, if the company is in the heavy

machinery industry, export is probably not of interest, because of expensive transport

costs. If this is the case, a firm may opt to move production to the desired country.

Further research (Buch & Lipponer, 2007) argues that FDI and export should be

considered as complements rather than substitutes. This suggests that the decision is not

an absolute, and that a company may well conduct both strategies.

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2.2 Choice of theory

There are already some established modes of entry a company can use to

internationalize and expand to another country or market. The methods we think are the

most important are the ones that are covered in the following subchapters. There are of

course some theories that are more relevant to our research than others. To be able to

answer our research questions properly, we will not look to models that explain

international trade. Instead, we will focus on models that deal with internationalization

and expansion abroad. Therefore, we have chosen theories such as FDI, licensing,

exporting, first-mover advantages and economies of scale. We will use these theories as

a foundation to our dissertation. Usually, a firm is facing a decision whether to directly

invest in a foreign market, export or license its products. This is the main reason why

we chose these three modes of entry as a base. Additionally, a firm will seek to seize

certain advantages towards its competitors, and the theories of scale economies and

first-mover advantages can be used as a tool in this case. This is why we choose to

focus on the previously mentioned theories, since they are very much likely to be used

for an internationalizing company. Any further theory that could be of use is based on

these traditional theories.

2.3 Foreign Direct Investment

FDI is when a firm can choose to directly invest in a foreign firm either through

purchasing a certain percentage of that firm, or acquire the whole firm entirely. Either

way the firm chooses, the purchasing firm is facing a big risk since this method can be

very expensive (MSNBC, 2006). Also, a firm can choose to open their own factory in

another country – a so called Greenfield investment. Even if FDI is a high risk and high

cost-method it has in recent decades become more and more of a useful tool for firms to

expand abroad, whether to a bordering market or further away. FDI has become

something of an alternative to international trade, which allows businesses to expand.

This method has increased highly the past decades and in 1998 it stood for more than

half of all the private capital flows to developing countries (Alfaro, Chanda, Kalemli-

Ozcan & Sayek, 2004). This is clearly shown from recent studies when displaying the

figures of this increase. The average outflow of FDI has been raised from $25 billion in

1975 to $1.4 trillion in 2000, only to fall down to some degrees the following years and

then skyrocket up to a staggering $1.8 trillion in 2007 (McGraw-Hill, 2011). The almost

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insane growth of FDI has even outgrown the increase rate of world trade itself, with

FDI showing a growth of eight times itself from 1992 to 2008, while the world trade

“only” had an increase of 1.5 times during the same period of time. The FDI stock has

by 2008 exceeded $15 trillion, which is the accumulated amount over the years

(McGraw-Hill, 2011). These figures represent the impact of FDI in the global economy

With foreign capital entering a developing market, important feats can be obtained by

the host country. To continue to grow as a country, it is important to be open to

developments and new challenges. Nowadays, most developing countries welcome

foreign capital as it is closely linked to a countries economic growth (Alfaro et al.,

2004). FDI is a necessary driver in a developing country’s economic growth (United

Nations, 2003). Furthermore, even though Africa possesses a rich variety of natural

resources, it has not attracted as much FDI as one would predict. This indicates that it

requires more to attract foreign capital, namely political and macroeconomic stability

(Musila & Sigué, 2006).

2.3.1 Acquisitions and Greenfield investments

When a firm is entering a new market abroad through FDI, either an acquisition of an

existing firm or a Greenfield (also known as “organic acquisition”) investment is

possible. When establishing a firm abroad, the costs increase more than if the firm

would be producing in the home country, mostly because of lesser knowledge about the

market (Görg, 2000). An acquisition of an already existing firm is when a company

purchases a certain percentage of that firm, or the whole firm entirely. A large part of all

FDI inflow consists of mergers and acquisitions, namely 89% as of 2007 (United

Nations, 2007). However, in developing countries, the ratio of mergers and acquisition

is not as high. Granted, this is simply because there are not that many firms to be

acquired in this limited, however growing market. As that market is growing, the

number of firms will also grow, which will in turn lead to more mergers and

acquisitions.

However, when conducting Greenfield investment, the firms get the chance to build up

their own companies on the new market. The firms have their own businesses, but they

only have their own knowledge. With this form of FDI, the firms have to start from zero

and work their way up in the industries. This kind of method takes more time and effort

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and to succeed they need great knowledge about the new market. Since every market

has its own culture, it could be difficult to get established without the right knowledge

and competence. This is a reason why many firms fail when conducting Greenfield

investments (Wang, 2009). Wang (2009) continues to say that it is hard to transfer

certain company culture and organizational style when merging with a local firm.

Therefore, it would be easier to invest organically if company culture and so on are of

importance. Generally, firms opt for a merger or an acquisition rather than an organic

investment due to several factors. Firstly, it is a lot faster to acquire an existing firm

than to open up an own factory. Secondly, many firms believe that if they do not

acquire a local firm, their competitors will. For instance, in an oligopoly, it is common

that competitors follow each other’s steps. A firm can simply not afford not to imitate

the competitors’ moves, since it could lose its position in the market. Usually, the

oligopoly-case deals with price-rises and price-cuts, but the general behavior can be

compared with the pattern of FDI. Thirdly, foreign firms are likely to possess valuable

strategic assets, such as brand loyalty, customer relationships, patents, distribution

systems and production systems, and so on (McGraw-Hill, 2011). Assets like these are

not easily created without the proper knowledge about the market culture or market

demand, which a foreign firm is likely to possess.

2.3.2 The pattern of FDI

The theories of strategic behavior and the product life cycle can explain why and how

firms conduct FDI. As discussed before, in an oligopoly, it is crucial to keep up with the

moves of the competitors to not lose advantages. This example is applicable when

generalizing the pattern of FDI. A firm is almost forced to acquire foreign firms if they

want to keep up in the global market. If they do not, their lack of activity will weaken

their position. According to Vernon (1966), the product life cycle theory tells us that a

firm will invest in a foreign market when production has been standardized and when

that market has grown large enough to be able to support local production. Practically,

this means that a firm that used to produce a certain product in its own country will seek

to put production in another country where production costs and labor costs are cheaper.

In other words, the same good that used to be produced domestically and exported is

now being produced abroad and imported. Furthermore, it is safe to say that the labor is

cheaper than in Sweden, which suggests Swedish companies will look to invest there.

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However, recent studies claim that something called political and economic nationalism

can hinder FDI. Political nationalism is an increasing problem because of the difference

in language and religions (Johnson, 1965). According to Akhter (2007) the economic

nationalism in today’s global world can be hazardous for enterprises. Boycotting of

foreign products and denying the access of foreign suppliers have led to warnings of the

increasing economic nationalism in the European Union. According to Jakobsen and

Jakobsen (2011) this phenomena will always exist, even when openness towards FDI is

constantly spreading around developing nations. All in all, this should not stop the

development of FDI into Africa, since the links in between economic growth and FDI

are well established in most cases (Alguacil, Cuadros & Orts, 2010).

2.3.3 Why FDI when profitable and less riskier alternatives exist?

As we will show in the coming chapters, exporting and licensing are significantly

cheaper and less risky alternatives to FDI. As mentioned earlier, FDI could be very

expensive. Not only does a firm have to purchase another firm, other costs come along.

Additionally, lack of knowledge of market culture is a constant risk a firm is facing

when entering a foreign market. These two risks can eliminate the firm’s chances to get

established, if not managed carefully.

2.3.4 Benefits and costs of FDI

It takes two parties for FDI to occur; one giving nation and one receiving nation. Within

the dynamics of FDI, there are different benefits and costs depending on if the nation is

a giver or receiver. The receiving nation will benefit from transfer of resources,

employment effects, balance-of-payment effects, and effects on competition and

economic growth (Alfaro et al., 2004). In short, the presence of foreign businesses will

lead to an increase in competition and, thus, an increase in the quality and variety of

goods produced. However, the receiving country will also suffer some setbacks from

the presence of foreign capital. The backsides of receiving FDI are adverse effects on

competition domestically, adverse effects on balance of payments (also widely known

as trade deficit) and the seeming loss of national sovereignty and autonomy (McGraw-

Hill, 2011).

Furthermore, the company that is conducting outward FDI is also facing certain costs

and benefits. The benefits can be summarized into three parts. Firstly, an increase in

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foreign earnings from FDI will naturally be beneficial. Secondly, an increase in

employment will also give the company conducting outward FDI an extra boost.

Thirdly and finally, it is possible to gain important knowledge from a foreign market in

terms of production and management through outward FDI (Renard, 2011). By being

present in a foreign market, it is possible to absorb these feats. On the contrary, there are

naturally costs of conducting outward FDI. Firstly, it is risky and expensive in the

beginning when investing in a foreign market or company. It takes some time before

returns on investment will pay off. Secondly, since FDI is an alternative, or at least a

complement, to exporting, the very presence of the company in a foreign market will

result in a drop in exports instead. It comes as no surprise that there are both pros and

cons with FDI.

2.4 Exporting and licensing

When a firm wants to expand internationally without risking a lot beforehand, either

exporting or licensing is a good option.

2.4.1 Exporting

Exporting is when a firm is producing at home and shipping them to a buyer abroad.

Thus, production costs and transportation costs are the only major concerns for an

exporting firm. To make matters easier, the exporting company can hire a native sales

agent in the importing country. Hopefully, this will eliminate any cultural differences

that may hinder the business. It has been argued by Decker and Zhao (2004) that

cultural differences may lure companies away from the opportunity to export. They

continue to conclude that the cultural differences factor is important in the decision

process, however not decisive.

When a foreign firm exports on a new market it often brings out new knowledge to the

market. Knowledge as marketing and technology is important and this could help the

host country to increase their export competitiveness (Cotton et al., 2001). Exporting is

also a positive method when the firm’s products are of low weight. Naturally, the

transportation becomes more expensive when shipping heavier goods. On the contrary,

trade barriers, such as quotas or tariffs, make exporting less attractive, regardless of

weight. Trade barriers often lead from exporting to FDI or licensing. Also,

governmental interventions can either promote or dampen import/export. The United

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States’ import quota on Japanese cars in the 1980s and 1990s led to an increase of FDI

from Japan instead (McGraw-Hill, 2011).

2.4.2 Licensing

A licensing contract is an agreement in which another party is allowed to produce and

sell a company’s products. Valuable know-how and secret company knowledge is at

risk when allowing another company to produce and sell its products. Sometimes, a firm

is successful due to a secret recipe or a certain production method. When this is shared

in between companies, this may be copied and then used to the original company’s

despair. If it is impossible to protect the know-how under licensing, FDI will be

selected. Also, a firm loses its tight control over production, marketing and management

when licensing. It is also a possibility that a reason why a company is successful is due

to its specific manner of how the business is run. If tight control is lost, the profitability

might drop. Finally, when a company’s know-how is difficult to transfer through

licensing, this method will look unattractive to companies (McGraw-Hill, 2011).

Figure 2.1 below is easily illustrating a suggestion of the different steps in a company’s

process of deciding whether to export, license or directly invest in a foreign market.

According to this figure, export is only lucrative when transportation costs and tariffs

are low. Meanwhile, licensing is only an attractive option if important company know-

how is safe and well-protected under the licensing contract. In addition, if tight control

over the firm is necessary, it is better to do FDI rather than export or license.

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Figure 2.1 A decision framework

(Based on: McGraw-Hill, Irwin, International Business, 2011, p.258)

2.5 First mover-advantages

As we briefly mentioned in the introduction chapter, the timing of entry in a new market

could be crucial. Preferably, a company will seek to develop strong customer-relations

and establish a strong brand name. When this has occurred, it will be hard for a later

industry-entrant to penetrate that market (McGraw-Hill, 2011). It has been argued that

certain products have a greater tendency to create a first-mover advantage than others

(Zantout & Chaganti, 1996). It is important for a firm to always be one step ahead and

offer good products to stay on the foreign market (Rhaman & Bhattacharyya, 2003).

According to Chen & Pereira (1999), a pioneering brand has long-term market share

advantages. However, it is no guarantee that a first-mover will be successful; as an early

industry-entrant may lack the proper skills, knowledge and, naturally, experience to

fully seize all the opportunities. A lesson could be learnt here for the next wave of

movers, and what pitfalls to avoid (CNN, 2006). There is no a guarantee to succeed as a

first-mover; an advantage in one country could be a disadvantage in another.

2.6 Economies of scale

The theory of economies of scale is closely related to the first mover-advantage theory.

If a company is established early in an emerging industry, it can seize economies of

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scale and thus gain a huge advantage to future industry entrants. The theory of

economies of scale discusses that a firm can reduce its overall production costs by

spreading the fixed costs over a large number of produced goods (McGraw-Hill, 2011).

If a firm manages to both enter an industry in the early stages, and as well seize

economies of scale, that firm has gained a major advantage to its competitors. This can

be a great opportunity for Swedish firms if they take the step out and expand to African

developing countries. This model is perhaps more in touch with major production

companies, where a great output will spread the fixed cost over more units, rather than

service companies.

2.7 The Uppsala model

Many Swedish firms have been internationalized through this model. In short, the

model states that a firm will seek to penetrate a closely located foreign market through

export before expanding further away (Steen & Liesch, 2007). By following this

procedure, a company will gradually gain knowledge of foreign markets in order to

avoid certain pitfalls that we have mentioned earlier. An issue with the Uppsala model

is how this gradual expansion affects the companies’ investment behavior (Forsgren,

2002).

2.8 Summary of theories

We raise the question whether the previously mentioned theories are enough for a

Swedish company trying to enter the African market. First of all, the firms are facing a

decision whether to export, license or FDI, or perhaps do a little bit of everything. There

are numerous reasons and factors behind this choice, as we now know. According to

Figure 2.1, export is only necessary if transportation costs and trade barriers are low.

Additionally, if valuable and secret company know-how is impossible to withhold under

a licensing agreement, FDI should be selected. Subsequently, the firm will now have to

carefully consider all the aforementioned risks that bear with the decision of FDI, if they

should follow this figure. According to us, this figure is by no means an absolute and

should not be followed blindly by Swedish companies. The mode of entry a company

selects may defy this model, and still be successful.

FDI is usually the preferred option if tight control over management, marketing and

production is important, despite its higher costs and risks. Often, the management style

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is the key to success and this is hard to duplicate. On the contrary, a successful product

is much easier to copy in production than something as abstract as a way of managing

the firm. Since the African market is considered as an emerging one, we argue that

certain opportunities must be seized in order to tackle competitors in the very

beginning. This is where theories such as economies of scale and first mover-

advantages come in. In order to gain a favorable strategic market position, these

opportunities must be taken advantage of.

To our knowledge, there is no evident research investigating Swedish companies’

possibilities in South Africa, Rwanda, Tanzania and Senegal. Furthermore, it is by no

means a certainty that the traditional internationalization theories offer enough of an

explanation for these firms’ establishment in these countries. Since the aim of this

dissertation is to find out how Swedish firms have made themselves successful in

Africa, how they achieved it and how future companies from Sweden may do it, it is

necessary to investigate the traditional methods of internationalization. It is an

interesting thing to investigate if Swedish companies fulfill the criteria created by

Dunning et al. (2008), regarding what mode of entry to choose. Another interesting

angle is to find out if the conclusion made by Buch et al. (2004) is a possibility, namely

that a Swedish company may use both export and FDI, instead of just choosing one of

the two.

While internationalization is heading towards developing countries (Alfaro et al., 2004),

there are many obstacles and threats to overcome along the way (Musila et al., 2006).

Recent studies show that economic nationalism may block many companies from

expanding towards certain countries (Akther, 2007). According to Decker et al., (2004),

cultural differences may as well lure exporters away, which makes the preparations

before expanding all the more important since it is a lot riskier. These issues are not

examined when simply studying the traditional internationalization theories. Therefore,

it is necessary to personally investigate some companies that have actually faced and

overcome these problems. This dissertation will provide a unique perspective as to how

Swedish firms have been, and are, reasoning when trying to enter these African nations.

Again, to our knowledge, there is no dissertation that has covered this topic. Moreover,

we ask if the traditional internationalization theories are sufficient when trying to

understand how Swedish firms have expanded to Rwanda, Tanzania, South Africa and

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Senegal since they offer very broad suggestions. Finally, our dissertation will contribute

to new research on this field for a couple of reasons. Firstly, the outcome of this thesis

will highlight to what degree a Swedish firm is following the traditional

internationalization theories when entering the African market. This has not been

covered before. Existing research has been directed mainly to the Asian market.

Therefore, this dissertation will offer a possible comparison of how a Swedish firm is

internationalizing in Asia and in Africa. Secondly, the outcome of this thesis will also

give us an answer as to whether the traditional internationalization theories are enough,

or if a Swedish firm is perhaps using different, nonconventional internationalization

theories. Together, these two reasons will make this dissertation useful for further

research as well as offering an interesting answer to our research question. Furthermore,

we raise the question whether new companies may follow the traditional

internationalization theories, or if they internationalize in other ways.

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3. Methodological considerations and research

techniques The third chapter of the dissertation presents the methods used in the study. In this chapter,

choice of methodology and selected companies is presented. Furthermore,

operationalization, trustworthiness, authenticity and generalizability is presented.

3.1 Choice of methodology

The largest part of our dissertation will be conducted by collecting primary data,

sampled from interviews with appropriate firms. When collecting secondary data, you

are to a great extent forced to like what you find. While, making qualitative interviews

with relevant companies, we can get broader information and answers which will help

our dissertation develop. By using the traditional theories as a frame and by asking

questions about the theories in the interviews, we predict to find some differences when

entering a new market and some new perspectives about establishing in a foreign

market. We searched online for Swedish companies active in Africa and found many

interesting prospects. We e-mailed the ones we thought were appealing to our research

and briefly introduced ourselves and our project. The responses we got were very

positive and the respondents thought our topic was interesting. Subsequently, we made

all the necessary arrangements for our interviews, i.e. decided dates and how the

interview should be conducted (personal meeting, telephone/Skype or e-mail).

We have conducted interviews with both established Swedish companies as well as

newcomers in the African market. We wanted to investigate how they got there and why

they are there. Moreover, we will also look to companies who might just be beginning

to expand to Africa. We have chosen to gather our data through interviews made face to

face, if possible. A focal point when doing our interviews has been to make the

respondent develop his or her answers to allow us to get a deeper understanding to our

research questions. Since some of our respondents are located abroad or too far away

from us, Skype has also been used.

3.2 Atlas Copco, Atsoko, Findus and Samres

As the heading above reveals, these are the companies we have interviewed to examine

how Swedish firms have established themselves and how they will try to establish

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themselves in Africa. All four companies operate in different industries; mining,

cosmetics, food and services. Also, they are in different stages in their

internationalization process, which is interesting because it allows us to see if they

follow the same pattern as the already established ones, as well as the

internationalization theories discussed in the literature chapter. Furthermore, these

companies are of different size, with some being rather large while others are smaller.

We do not argue that the outcome of this research based solely on these four companies

is applicable to any Swedish company, since every company is unique with different

company culture, management and so on. However, it is possible to study how these

companies are internationalizing and later compare with other similar ones and see if a

mutual pattern is found. Also, since we ask “To what extent are Swedish companies

following the traditional internationalization theories when entering Africa?”, we

believe an answer is possible to find from all four companies. Again, the outcome of

this thesis is based on these companies’ experiences, and is perhaps not applicable to

any other company. However, we still believe lessons could be learnt for future

companies wishing to internationalize in similar ways, and thus is our research question

possible to answer through these four companies.

3.2.1 Data collection

Two out of four interviews were conducted face to face with the respondent. This

allowed us to have a more natural conversation where we could ask counter questions

based on the respondent’s answers, which is not possible if a questionnaire is sent out.

The other two interviews were made over the phone, due to distance issues. Similarly,

doing an interview over the phone, also allows us to have a more personal touch to the

interview, rather than a questionnaire or a chat-interview. Moreover, a live interview

allows us to further explain the questions to the respondent if they are misunderstood or

perhaps badly written. As mentioned earlier, we opted for a looser structure when doing

our interviews, since we preferred to let the respondent speak freely. The method we

used is often called a semi-structured interview, where a list of questions is being used

as a reference point by the interviewer. The interviewee is granted a rather free space

anyway, but the interviewer is always seeking to follow the reference questions. Also,

during the interview, the interviewer will ask follow-up questions that he or she finds

important based on the respondent’s answers (Bryman and Bell, 2011).

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3.3 Operationalization

As stated before, our aim is to find out how Swedish companies reason when deciding

to expand to Africa. When we contacted our respondents’ companies the very first time,

we introduced ourselves and what we were doing, and asked if we could speak to

someone with the proper knowledge of this topic. Out of four respondents, two were

CEOs of their respective companies. The other two were perhaps not the head of the

entire company, but they still possessed the relevant knowledge and experience to be

able to provide our dissertation with interesting and enlightening responses.

Furthermore, they were higher up the hierarchy than just a mere employee – namely

head of exports and business controller respectively.

The first interview we carried out was with Lina Jorheden1, the Head of Funding and

Financial strategy at Atlas Copco, a large industrial company. This interview was made

over Skype since the respondent was located in Tanzania. Atlas Copco has been

operating in Africa since the 1920s, and, therefore, some of our questions had to be

altered to be applicable to current research. To examine Atlas Copco was very

interesting due to the fact that they are an established player in Africa, and also a very

large one. The respondent from Atlas Copco has been working there since 2010 and had

very interesting information, to be revealed in later chapters.

The second interview was with Björn Falk2, the CEO of Samres, a call center company

based in Lund. They recently gained positive attention in Swedish media for teaching

Swedish to potential employees in Senegal, to be able to receive calls from Sweden

(Expressen, 2012). Basically, when an elderly person calls for a transportation service,

the phone call is answered in Senegal by Samres employees. A recent rising

phenomenon has been the export of services, rather than goods. According to us, this

makes Samres a very interesting case study.

The third interview was conducted in Bjuv with frozen food and vegetables company

Findus. This interview was at the headquarters of Findus in Bjuv. Our respondent is

named Mats Jörnell3 and he is the Head of export of Findus Sweden, which belongs to

the Nordic cluster of Findus. Along with two other European clusters, they become

Findus Group. Findus Group is a leading player in the frozen food industry. Since our

1 Lina Jorheden, Business controller, Atlas Copcp, interview 17 May 2012

2 Björn Falk, CEO, Samres, interview 21 May 2012

3 Mats Jörnell, Head of export, Findus Sweden AB, interview 23 May 2012

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focus in this dissertation is Africa, we will only focus on Findus Sweden and their

factory in Bjuv. This factory produces the entire assortment of products, and they export

to South Africa. This is why this specific factory is relevant to our study. Also, it was a

fortunate coincidence that this factory was close to Kristianstad. As was confirmed in

our interview with the head of export, Findus has only been on the market in South

Africa a little over three weeks, as of late May. It was very interesting listening to Mats

Jörnell, since he possessed significant knowledge about Findus’ activities in its

internationalization to South Africa.

Our fourth and last interview was conducted over the phone with the founder of beauty

and cosmetics company Atsoko – Marie Englesson4. Atsoko is in its very beginning as a

company, and its only market is in Tanzania as well as in Rwanda. We were

recommended to talk to Marie Englesson through Lina Jorheden of Atlas Copco since

she thought, and we agreed, it would be a fitting company for our dissertation. Atsoko

completes this phase of our dissertation and we are very satisfied with all our

respondents’ answers as well as their cooperation.

We basically asked all four respondents the same questions, to be able to compare their

answers. Naturally, some further questions were introduced while conversing during the

interview. However, the questions we used as a foundation were all the same. Since we

wanted to know how long they have been operating on the African market, in whatever

country they were present in, this was a core question in our interviews. Knowing how

long a company has been active, it is possible to see if it follows traditional

internationalization theories or whether it defies them. Furthermore, another important

question we asked our respondents were if great planning before the decision of

entering one of these African countries was made. This is an interesting question to

investigate, since it could highlight why Africa was the target, instead of other emerging

economies. Moreover, we believe it would be interesting to know if there were any

significant obstacles along the way, since cultural and national differences are known

for being potential business obstructers. Further questions were asked to find out if the

company had learnt from potential previous mistakes when expanding internationally.

Also, how they think their markets will develop in the near future and how their

4 Marie Englesson, CEO, Atsoko, interview 23 May 2012

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companies will adapt to those developments. Conclusively, these were the questions we

wanted to ask our respondents. For a full list of the interview questions and our

rationale behind them, see the appendix.

3.4 Trustworthiness, authenticity and generalizability

According to Bryman and Bell (2011), qualitative research is sometimes criticized for

being to subjective. Since the interviewers form their questions from what they think are

important and significant, the critics of the qualitative research claim this causes a

biased result. Thus, the results’ validity and reliability are questioned. Instead, different

criteria should be used as measurement when conducting qualitative research – namely

trustworthiness and authenticity. However, the authenticity criteria have not reached

wide popularity, and will therefore not be included here. Trustworthiness consists of

four subparts; credibility, transferability, dependability and confirmability. Credibility

involves how the research has been conducted, i.e. in a good manner. Moreover,

transferability deals with the fact that qualitative research is focused more on depth

rather than width (Bryman et al., 2011). That is, fewer people are interviewed where a

deeper understanding of the research question is preferable. In other words, the outcome

of a qualitative research can be used as a base for further research. Dependability entails

that an auditor is being closely attached to the research process, during its entire time,

but more frequent towards the end. This is to see whether the researchers are conducting

their research properly and they are saving all records. This has not been a popular

method since it requires a great deal from the auditor (Bryman et al., 2011). Finally,

confirmability is dealing with the researchers’ objectiveness in the research.

Acknowledging that a complete and utter objectiveness is impossible, it is a good

measurement if the research has been conducted in good faith. These four parts sum up

the trustworthiness criteria.

We believe our research has been conducted in a trustworthy manner. First of all, this

dissertation is supported by relevant scientific articles. Secondly, there is room for

future researchers to base their dissertations on our paper, which makes this dissertation

transferable. Thirdly, we have been keeping regular contact with our tutor, who has

supervised this whole dissertation, guiding us to the right path. Finally, we have been

objective towards our topic, since our research question and interview questions have

been open ended as well as neutral.

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Moving on to the generalizability criteria of qualitative research, it is being argued that

the conclusion of a small number of interviews is insufficient to be able to create a law-

like generalization. Of course, the respondents in our interviews are not supposed to

represent a wide population or segment. However, there are quite interesting things to

learn and apply to other cases, despite the limited number of samples. Bryman et al.

(2011) states that “it is the quality of the theoretical inferences that are made out of

qualitative data that is crucial to the assessment of generalization” (qtd. in Bryman &

Bell, 2011, p. ). In other words, it is possible to link the respondents’ answers to

theoretical conclusions and, thus, create something similar to a generalization.

4. Empirical findings

In this chapter, our findings will be presented. Descriptions of our respondents’

strategies, target group, competitors, experienced difficulties and predictions about the

future are presented.

4.1 Atlas Copco

Atlas Copco is a Swedish industrial company operating in the mining industry of

Tanzania. Already in 1920, Atlas Copco established their company on the African

market. The Tanzanian market offers great mining possibilities and the East African

market is the biggest reason why Atlas Copco got established there. Today Atlas Copco

is established in 80 different markets and the company sells their products to more than

170 countries. The company is still growing and this shows from the opening of new

factories in Senegal, Mozambique, Mali and Burkina Faso.

4.1.1 Atlas Copco’s strategy

Since Atlas Copco has been present in Africa for almost a century, they are well aware

of how to expand on the African markets. Every year they are establishing a new

industry and most of their expansion is in Africa. One third of Atlas Copco’s expansion

is from acquisitions, when they buy companies who possess important technology or

products. An important acquisition was when the company bought Dynapac, a road

construction company. The other two thirds of Atlas Copco’s expansion are from

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organic investment, when they open up an industry and let another company take care

of it. This is done as opposed to sending down a project group from Sweden. When

giving managers, who possess local market expertise, responsibilities, it eliminates the

potential problem of insufficient local market competence. When that industry has

matured and they have reached their target group, Atlas Copco will move their legal

units and management there and take over.

4.1.2 Atlas Copco’s target groups and competitors

Many of Atlas Copco’s clients are international companies. They use the African

market to widen their business activities. Atlas Copco only produces a small part of its

entire sales. The major part is sold on from import, where China and India are

significant importers. Since mining is the largest industry in Tanzania, there are also

other companies present there. Some of the biggest companies and exporters have also

seen the great opportunity of mining and expanded to the Tanzanian market. Some of

the biggest are from Canada and they have been there for 10-15 years.

4.1.3 Experienced difficulties and obstacles

When we asked Lina Jorheden about the potential difficulties and business obstacles in

Tanzania, she offered a couple of answers. She testified that it is very difficult to run an

operation in Tanzania from a remote location, which is the main why Atlas Copco have

60 managers, or so, on the location site. Furthermore, Tanzania is still adapting to the

economic reforms done recently. The free market view is seen with skeptical eyes and

western companies are seen as capitalists profiting on the locals. Moreover, it is

sometimes a struggle for foreign enterprises to get the proper taxation forms and work

permits from the authorities. There are definitely differences in the way the market

economy is seen between authorities in Tanzania and in Sweden. Moving on, a positive

aspect is that Atlas Copco shares the same western values as most of their customers,

who mainly are large international companies. Because of this, business is conducted in

a legitimate manner and there is zero tolerance for corruption. This is not always the

case when dealing with local firms or companies from China and India, according to

Atlas Copco’s experience.

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Unlike the situation in many South American countries, nationalizing industries is not a

threat in Tanzania. Instead, there are complicated laws regulating how a company may

conduct their business. There have been cases where mining companies have been

making deals with the Tanzanian government, with profitable terms (i.e. low taxation).

However, this is not how Atlas Copco has been conducting their business, which

perhaps has caused them some problems.

4.1.4 Lessons learnt from previous expansions and predictions of the future

According to Atlas Copco’s experience, expansions to markets where local market

knowledge is possessed, has been a key component in their internationalization process.

They prefer it this way, rather than sending down a project group who conduct the trial

and error-method. This makes the establishment process a lot easier, since cultural

differences and local demands are known.

Atlas Copco is hoping that the African market may follow the development of the

Chinese market, which has seen a very rapid growth. However, it is noted that there are

differences between Tanzania (and Africa in general) and China. Tanzania is still

ranked as one of the poorest countries in the world, and this is something that Atlas

Copco has noted. Furthermore, they believe that the force of globalization is strong

enough to include Africa with its rich variety of resources, both natural and human.

4.2 Atsoko

Atsoko is a newly started beauty and cosmetics company, only active since 2011. They

are operating in both Rwanda and Tanzania, exclusively. Atsoko’s target group is

women in Rwanda and Tanzania. The owner of the company, Marie Englesson, earlier

worked at a telecom company established in Africa and experienced all the

opportunities the African market displayed.

4.2.1 Atsoko’s strategy

Marie Englesson states that it is very hard to predict how things will develop in Africa

and, therefore, a plan is difficult to create as well as follow. She continued that Atsoko

has conducted a method called trial-and-error which means that they try out a product

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and simply see if it sells. This is done, since it is very hard to plan everything in detail.

As a foreign company, it is hard to get work permits and leasing contracts

4.2.2 Atsoko’s target group and competitors

Since Atsoko is selling beauty and cosmetic products, they are focusing on women.

There are not many international or domestic competitors in this industry in these

countries. Mainly, the firms who operate in Atsoko’s markets are local companies.

However, a few Arabic and Indian businesses can be seen as a threat with similar

products. Conclusively, the competitors are only a small number, though

4.2.3 Experienced difficulties and obstacles

Atsoko has been experiencing that the lack of regulations of how business is to be

conducted has caused them some problems. Marie Englesson states that the rules are not

very clear and it is difficult to find people to trust as well as to work with. Furthermore,

the language barrier has also been an obstacle in Atsoko’s internationalization process,

since English is not spoken by everyone. Moreover, Marie Englesson believes that it is

important to be as straightforward, clear and simple as possible when doing business.

The cultural differences are a further obstacle, since it is hard to read people and

understand their intentions. These misunderstandings come from both parties since the

trust for the other party is lower when doing business than in other, more developed

economies. For instance, there are institutions and authorities in more advanced

countries that will take action if business is conducted illegally or appropriately. The

fact that a local investor is necessary by law when starting a company in Tanzania is

another difficulty the firm has faced.

4.2.4 Atsoko’s predictions of the future

Marie Englesson believes that Atsoko will adapt to the Rwandan and Tanzanian

markets. She continues to say that the company culture and company values have to fit

in these markets. When Atsoko has got further established in Rwanda and Tanzania,

markets in Ethiopia and Uganda will be of interest for potential expansion. Marie

Englesson also believes that these markets are suitable for many Swedish firms, since

Sweden is often faced with neutrality and positivism. Here are lessons to learn from

Dutch, French and British companies.

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4.3 Findus Sweden AB

Findus is one of the most famous brands in Sweden. The company has three clusters,

Scandinavian, France-Spain and England-Ireland, and together they form Findus Group.

The company has 6000 employees and their primary products are frozen food, like

vegetables and fish. Findus Group is famous for their strong brand and their high quality

products. Findus is exporting their products to many different countries such as, China,

the US, Germany and Australia, and their latest big importer is South Africa.

4.3.1 Findus’ strategy

Findus started to make an analysis of different markets to see where their products

would suit, by investigate price levels and other important factors. Findus was first

approached by South African companies when they experienced shortcomings of

certain products. According to Mats Jörnell, one important factor in the decision of

expansion is to have a good partner and distributor. According to Findus’ experiences,

having a good business partner and distributor is vital when expanding. One of Findus’

old trading partners in South Africa helped them to find a retailer where Findus could

market their products. Mats Jörnell believes that a good dialogue between Findus and

the distributor will make the distributor work harder to market Findus’ products. A

competitive advantage of Findus is that they harvest high quality vegetables in Sweden

and only transport them a short distance to the freezer, where they are later exported.

According to Findus, they would lose their competitive advantage and argument if they

would harvest in South Africa instead of Sweden’s high quality soils. Findus does not

market themselves as a Swedish company. Instead, they state that they are now

available in South Africa. For instance, their slogan they used to market themselves in

South Africa was a play of words of their brand name – Find Us.

4.3.2 Findus’ target group and competitors

The American food company McCain is a large competitor to Findus in South Africa.

However, one of McCain’s competitive advantages is that they are competing with

lower price levels, while Findus competes with higher quality. Consequently, Findus’

target group is consumers who want to pay for high quality products. Other competitors

are local companies in South Africa. The government has campaigns for the local

brands, and this is something Findus respects.

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4.3.3 Experiences difficulties and obstacles

According to Mats Jörnell’s experience, finding a good distributor is a difficulty since

many have hard times keeping their promises and honoring their agreements. Moreover,

local regulations and laws have been an obstacle in Findus’ internationalization to South

Africa. This is where a good business partner can help Findus out and eliminate many

of these obstacles. Findus have experienced that there are specific demands of how the

package should be designed, depending on the content of the product.

4.3.4 Lessons learnt from previous expansions and Findus’ predictions of the future

Findus have experienced that their products need to have the taste of local cuisine if

they are to be successful. Additionally, the lack of a good distributor has hindered

Findus’ expansion to the Gulf area as well as to China. Furthermore, local regulations,

language barriers and cultural differences can obstruct internationalization, according to

Findus’ experiences.

Mats Jörnell believes that it is important to be careful when trying to predict the future

when dealing with new establishments such as this one. Even though Findus have been

receiving positive feedback from consumers, they have only been active a couple of

weeks. Mats Jörnell feels that it requires at least three months before it is possible

predict the future in further detail.

4.4 Samres

Samres is a call-center company, with the alignment of public transportation. Samres’

CEO is Björn Falk. They take care of the orders of transportation; they plan the trips

and take care of all the administration around this. They started in Sweden in 1993 and

have since that grown and expanded as a company. Samres began their

internationalization in 2005 when they expanded to Estonia. In 2008, they expanded to

the Moldavian market. By January 2012, they answered their first phone calls in their

office in Dakar, Senegal.

4.4.1 Samres’ strategy

After two successful expansions to Estonia and Moldavia, Samres saw that they had

great opportunities in foreign establishment. Samres conducted a survey to find

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potential markets. They looked for a market in the same time zone and with good

technologic infrastructure. The crucial factor was that the location had a great

educational site. Consequently, Senegal was chosen. Furthermore, since Samres works

with administration of transportation in Sweden, it is important that the employees can

speak Swedish. Since English is not the primary language in Senegal, they required

people with at least two years of English education before they taught them Swedish.

Samres saw this skill as a measurement of how well applicants could learn a new

language. Samres is conducting their business as if it would have been conducted in

Sweden, and this is a big different from how local companies do.

4.4.2 Samres’ target group and competitors

Samres got the idea of expanding to Africa when they saw that other call-centers were

established there. French-speaking call-centers are established in North Africa and

Senegal, in addition to some English-speaking companies. One of the largest languages

in Africa is French, which makes it understandable why those corporations are on those

markets. However, while these corporations have many employees, Samres have a

different niche. They are a much smaller firm with a specific orientation. Between all

the competitors, Samres competes with higher salaries.

4.4.3 Experienced difficulties and obstacles

The largest concern for Samres has been that French is the primary language. It is only

the large, international companies that are fluent in English. Of course, a translator is a

possibility. However, Samres has experienced that this is time consuming as well as a

struggle since misinterpretations are possible. Since Samres rarely exports anything to

Senegal, issues such as tariffs, taxes and quotas have been absent. On the other hand,

arranging Swedish visas for the Senegalese workers have been a concern.

4.4.4 Lessons learnt from previous expansions and Samres’ predictions of the future

Björn Falk states that it is very important that the communication between the

management and the workers is clear, since one thing in Sweden can mean another

thing in Senegal. Samres has noticed that there are many different cultures, all being

different to another country’s culture. Consequently, this is why it is vital to have a

good understanding for each other.

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Björn Falk is positive when it comes to the development of the African market. Since

immaterial products can be produced without large factories, more responsibility is put

on the employees and the management. Björn Falk thinks that this makes it possible to

put production almost anywhere, which in turn will allow Africa to grow faster than it

has grown on other markets. However, one potential blocker of economic growth is the

interventions of governments in certain countries.

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5. Analysis Our analysis of our empirical findings is presented in this chapter. The chapter ends

with a comparison between the results.

5.1 Analysis of Atlas Copco

According to Dunning et al. (2008) a company will seek to conduct FDI if three

conditions are fulfilled. Since Atlas Copco is internationalizing mainly through FDI, it

is interesting to examine whether they follow these criteria. Firstly, the location in

Tanzania offers great mining possibilities since they possess these resources. Also, in

Atlas Copco’s experience, local representation in Tanzania is necessary. Previously, the

whole East African region reported to the headquarters in Kenya, which was simply too

much work. Secondly, the internalization criteria of the model created by Dunning et al.

(2008), refers to how much production is needed within the own company. Since Atlas

Copco mainly imports and distributes, production is only a small part of their sales.

Consequently, we do not think they live up to this criterion of this model. Thirdly, since

Atlas Copco has been active in Africa for over 90 years, they possess ownership

advantages, such as production techniques, trademark and management. Even though

Atlas Copco “only” fulfils two out of three criteria, they are still successfully

conducting FDI – both organically and by acquisitions – through Africa. Moreover,

Atlas Copco follows the rationale made by Musila et al. (2006), since they only operate

in relatively stable countries. Even though many African nations possess rich natural

resources, Atlas Copco does not expand without sufficient knowledge about those

markets. Therefore, it is necessary to be aware of current political events, cultural

differences, local laws and regulations, and so on.

Moreover, since Atlas Copco has been present in Africa since the 1920’s, they have

gained important economies of scale and first-mover advantages. If a Swedish mining

company tries to enter a market where Atlas Copco is active in, they would probably

have problems conducting their business, since Atlas Copco have been in Africa for a

very long time. Consequently, this makes it hard for a new entrant to grow in a market

and compete with such big players. This is a major competitive advantage, since many

companies and clients know their brand. Furthermore, Atlas Copco possesses great

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knowledge about the African markets and knows what they want to achieve. This is

shown from one of their strategies, which are one third acquisitions and two thirds

organic investments. Atlas Copco acquire local firms to obtain technological

advantages, which indicates that they are aware, and capable, of what is needed to be

done to further expand.

Conclusively, Atlas Copco has established themselves in Africa through FDI. They

have conducted both strategic acquisitions as well as organic investments to further

internationalize and maintain a competitive advantage. Since Atlas Copco is a major

player in the mining industry, they have both potential as well as capital to perform

these expansions.

5.2 Atsoko

Atsoko separates themselves from the other companies we have investigated, since they

started in a foreign market immediately. Furthermore, Atsoko is not only a newcomer in

Africa; it has only been registered as a company since 2011. This is a major difference

when comparing Atsoko to Findus, Samres and Atlas Copco. It is safe to say that

Atsoko does not follow the Uppsala model, where companies gradually expand through

similar markets as their domestic ones. Moreover, Marie Englesson testifies that it is

hard for a foreign company to operate in Rwanda and Tanzania since westerners tend to

be victims of overpricing. As opposed to what Alfaro et al. (2004) states about

developing countries welcoming foreign capital, Atsoko has experienced scepticism

towards them. Work permits as well as leases have been very difficult to obtain, even

though all regulations have been followed. Furthermore, according to Atsoko’s

experience, it is very hard to create a plan and execute it, since many things can change

rapidly in Tanzania and Rwanda. This is a reason why Atsoko conduct the trial and

error-method. Marie Englesson has previously worked in Africa for another company,

which has given her knowledge of what these markets demand and what they lack.

Since this industry is relatively undeveloped, as opposed to in Europe or the US,

importing and distributing beauty and cosmetics products are cheaper. Criticism is

directed towards the legitimacy of how business is usually conducted in these countries,

since Atsoko has a western management philosophy. Moreover, it can also be examined

whether Atsoko fulfils the OLI-model created by Dunning et al. (2008). The

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localization factor is a vital reason why Atsoko is in Rwanda and Tanzania, since costs

are significantly cheaper than in i.e. Sweden. Furthermore, ownership-specific

advantages are also possessed by Atsoko, since Marie Englesson has experience from

Africa before. Also, a local investor is present in Atsoko, since local regulations require

this. It can be argued that this strengthens Atsokos ownership-specific advantages.

However, the third criterion is not fulfilled since Atsoko does not produce their products

at all. This is a similarity between Atsoko and Atlas Copco, since both companies fulfil

the same criteria of the OLI-model. However, there are still many differences, since

Atlas Copco has been present for almost a century, while Atsoko has only been active in

Africa a couple of weeks.

Conclusively, it is hard to study Atsoko’s internationalization since it is a brand new

company. However, it is interesting to note that they are immediately establishing on

exotic markets such as in Rwanda and Tanzania. To fully understand whether Atsoko

have established themselves successfully, one would have to wait a couple of years to

see how things develop. Although, we believe that Atsoko possess at least two very

important factors which can decide if they can survive – namely ownership-specific

advantages and localization advantages.

5.3 Findus Sweden AB

Findus is a major exporter of frozen food products. This means that they can export a lot

to a relatively cheap cost. Moreover, since they are an exporting company, they are

achieving economies of scale by spreading their large output on export. In addition,

Findus have taxation departments and customs departments who specify in foreign laws

which make it easier for Findus to keep track on local regulations. Moreover, we

believe that Findus could be obtaining first mover advantages, since they are one of

very few firms with similar products – at least in South Africa. According to Zantout et

al. (1996), certain products have greater tendency to create a first mover advantage than

others. When Findus conducted their surveys, they looked where their products will fit.

Since the quality of fish and meat is very high in South Africa, these products were not

of interest to export to Findus. On the other hand, they found that there was a market for

frozen vegetables. Even though it is positive to be an early entrant in an industry, it is no

guarantee that a company may be successful (Chen et al., 1999). According to Eckeldo

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et al. (2004), the marketing process is vital in a company’s survival in a foreign market.

Since Findus market themselves as “Find Us – Now available in South Africa”, we

claim that Findus follows the reasoning of Eckeldo et al. (2004). Findus have received

praise for their quality of their products, when they have been pitching to local

distributors. Even though South Africa has a rich variety of crops, Findus still got a very

positive response when conducting various surveys. Since Findus market themselves as

a high quality producer, it is important that their products actually live up to their

promises – which their surveys indicate that they do. Furthermore, Findus have been

trying to export to the Gulf area as well as to China. However, Findus experienced that

certain differences hindered their success, which goes in line with Decker et al. (2004).

Moreover, Findus did not stop trying to expand to new markets, which is evident now

when they are in South Africa. They learnt from their previous mistakes and improved.

To be able to further compare our investigated companies, we will see how well Findus

fit the OLI-model. They arguably possess both ownership-specific advantages as well as

localization factors, since they have conducted analyses to find suitable markets.

However, since Findus are not producing in South Africa, it is questionable if they fulfil

the internalization criterion of the OLI-model. This is comparable with both Atlas

Copco and Atsoko, which is notable.

According to Buch et al. (2007), export and FDI should be seen as complements rather

than substitutes. Since Findus fulfils two out of three criteria of the OLI-model, along

with achieving economies of scale and first mover advantages, one can ask why Findus

is not conducting more active FDI. However, Mats Jörnell gave us an interesting answer

to this question, namely that Findus will lose its competitive advantage and competitive

argument if they would move production away from Sweden. Again, the reason as to

why Findus claim they have high quality products is that they come from great soils

along with short distances between harvest and freezing. Findus’ whole argument will

fall if they move their production location. However, if Findus’s production output

multiplies significantly, they are open to the suggestion to put production in South

Africa.

Conclusively, we believe Findus’ prospects look very bright. They have found a good

partner and distributor, who they believe will work hard to market Findus’ products.

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Also, they found a demand for frozen vegetables with high quality. Furthermore, Findus

is achieving economies of scale and first mover advantages as argued above. In

addition, Findus have learnt from previous establishment attempts in the Gulf are and

China to improve their current expansion in South Africa.

5.4 Samres

Samres is a special case, since their target group is located in Sweden, rather than in

Senegal. This perspective puts Samres in an interesting position in our dissertation. It

can be argued that Samres has followed the Uppsala model, where closer markets such

as the Estonian and the Moldavian ones were targets. This way, Samres has gained

valuable knowledge and experience when it comes to international expansions, before

trying to enter Senegal. Previous expansions have showed them that if a targeted market

fills Samres’ criteria, it does not matter where this is located. For instance, if the

targeted market is in a similar time zone as Sweden and technological infrastructure is

existent, any market would be possible. Samres has organically invested in Senegal,

since they have opened up their on offices. Furthermore, Samres is not affected by

Senegalese market fluctuations in a way that a company with sales in Senegal would be.

Since Samres’ products are neither sold nor consumed within Senegal, Senegalese

market fluctuations will not affect Samres. This is a very interesting perspective, since

this is unique in our study. According to the product life cycle developed by Vernon

(1966), it can be argued that Samres has put production abroad since labour costs are

cheaper in Senegal. Furthermore, to further compare if Samres fit the OLI-model or not,

we argue that they fulfil all three criteria. Firstly, their location is definitely an

advantage, since lower costs are obtained. Secondly, Samres has ownership-specific

advantages since they have experiences from previous expansions. Finally, they have

internalized production by educating employees in Senegal, instead of consulting

another company.

Conclusively, Samres is different from the other investigated companies since Samres

produces services rather than traditional products. Also, their target group is not in the

country where production is conducted. This makes the analysis of Samres unique,

compared to the other investigated companies. Additionally, as opposed to Findus,

Atlas Copco and Atsoko, Samres has expanded gradually from Sweden, Estonia,

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Moldavia and Senegal. We see a clear pattern, since Estonia is arguably more similar to

Sweden than both Moldavia and Senegal are. What all these markets have in common,

is that labour costs are cheaper than in Sweden. Also, we see that Samres is expanding

to one market at a time. Our interview with Björn Falk of Samres reveals that they

expand every three years, when they have obtained all experiences.

5.5 Comparison of analyses

Findus, Atsoko and Atlas Copco possess two out of three factors discussed in the OLI-

model. Meanwhile, Samres also possess the internalization factor, which the other

companies lack. What makes Samres fulfil the internalization criteria? Since Samres’

way of production differs from the rest, we believe it is easier for them to internalize

this aspect. One can assume that if Samres would have been producing items and selling

them from factories in Senegal, their costs would be significantly higher. This is a major

difference between Samres and the rest, and this is perhaps a lesson to learn for future

entrants. Samres has arguably been successful in Estonia and Moldavia, and these

experiences will be useful when trying to enter Senegal. It is important to note that no

mode of entry is better than another, it is more about if the mode of entry is the right

one for the company, what they have and what they stand for - since different firms

possess different characteristics. However, similar companies may look to Samres for

inspiration on how to successfully expand to foreign markets that differ greatly from the

home market. The Uppsala model can be used as an inspiration in this case, since this

model suggests that a company may be successfully expanding through gradual

expansion from closely located markets to farther ones. Even though the Estonian and

Moldavian markets may differ from the Swedish one, it can be argued that there are

more similarities between the Estonian and Swedish market than the Senegalese and

Swedish one. This is why we think the Uppsala model is applicable to Samres’ case.

Moreover, compared to the corporations we have studied; Atlas Copco is special in their

way, since they have been internationalized since the 1920’s. In other words, they have

been active in Africa longer than any of the internationalization theories, discussed in

this dissertation, have existed. Over time, Atlas Copco has gained crucial experiences

since they have been active for such a long time. They have grown to be one of the

largest players in their industry. Also, have had time to build extraordinary relationships

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with clients and create brand loyalty, which new companies are yet to achieve. A

comparison can be made between Atlas Copco and Findus, although their time present

in Africa differs significantly. Since we argue that brand loyalty and good relationships

with clients are important for a company trying to enter a new market, we claim that

Findus is on the right path of achieving this. Findus promises very high quality and,

according to their analyses, they have received positive feedback. This indicates that the

consumers are satisfied with Findus’ products and their concept. If Findus can maintain

this positivism, brand loyalty is possible to create. Furthermore, if the expansion to

South Africa is successful, word might spread to bordering countries that Findus is of

high quality, and this will make matters easier if Findus decide to enter these countries

in the future. Regarding Atsoko, it will be interesting to see how their company will

develop and adapt to the Rwandan and Tanzanian markets, since it is a brand new

company. Atsoko’s approach differs from Findus’, Samres’ and Atlas Copco’s

approaches, since Atsoko established themselves in Africa immediately. According to

Atsoko’s experience, the unpredictability in the African market forces them to conduct

their business in a more casual way, with no major, detailed plans. We believe this will

make Atsoko grow, if they can absorb this knowledge in the beginning of the

establishment in these markets. In turn, this will be an advantage towards later entrants

and competitors. It is possible that when Atsoko’s markets have matured, Atsoko will

move to other, foreign markets through FDI or export.

Furthermore, our findings defy Alfaro et al. (2004) that developing countries are

welcoming foreign capital and foreign companies. All our respondents testify that they

are faced with scepticism from many directions when operating in Africa. The locals are

not used to trust either each other or large companies, as opposed to in the western

civilisation where trust is relatively high. There are cases where complicated regulations

and overwhelming paperwork consumes both energy and time for companies trying to

do business in these countries. Additionally, the communication problems that many

firms have experienced, is confirmed by our study. All four companies testify that

misunderstandings and misinterpretations are common, since cultural and linguistic

distances exist. Therefore, it is very important to be clear and simple when

communicating on these markets. Furthermore, a definite advantage is if the local

language is spoken within the expanding company, since these cultural distances will be

eliminated, or at least shortened. Moreover, we believe that Samres has an advantage to

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their competitors when it comes to this, since their workers in Senegal speak both

French and Swedish. If Samres tries to expand to another French-speaking country, this

could perhaps help them.

Our research has established that there are many ways for Swedish firms to penetrate

certain African markets. According to our study, this is possible through FDI – both by

acquisitions and Greenfield investments – and export. Time will tell if Atsoko’s trial

and error-method will be successful. However, the expertise and experience of Marie

Englesson will certainly be an advantage for Atsoko in its process of

internationalization. Moreover, Samres’ chances of survival in the African market are

very bright, since they have specific factors characterizing their company. Firstly, their

labour costs are relatively cheap. Secondly, their target group is located in the home

country. This way, Samres is not as vulnerable to local fluctuations as other companies

perhaps are. According to us, Samres’ biggest concern would be if the Senegalese

people were hostile towards foreign companies. However, this does not seem to be the

case, since Samres is offering their employees lucrative salaries as well as on-schedule

pay checks.

When it comes to Atlas Copco’s internationalization process in Africa, it can be said

that having great knowledge about local markets – with cultural differences and so on –

as well as capital and technology, is definitely an advantage. Again, since Atlas Copco

has been active for such a long time, they have obtained these advantages by now.

Finally, regarding Findus’ establishment and chances, many lessons can be learnt. For

instance, we think it is crucial to have good partners and distributors that help you out

with local regulations, as the companies have pointed out being a big obstacle when you

establish on new markets, as Mats Jörnell also states. Moreover, Findus’ export

department are keeping track on taxes, tariffs, quotas and other regulations that could

affect their business.

To summarize, there are cases where Swedish companies are following the traditional

internationalization theories discussed in this dissertation. However, there are no cases

where a company has followed one model blindly. Instead, we see a mix of companies

in different industries, following a mix of theories, all depending on different

characteristics existent in the company in question. This indicates that a Swedish

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company is somewhat unique in its internationalization, although lessons can be learnt

from others, preferably similar companies as their own. Conclusively, we believe that

our research question has been answered after studying and comparing these four

companies and applying the traditional internationalization theories to them. We asked

to what extent Swedish firms are following these theories, and the answer is that they

are all following these theories to different degrees. Again, it all comes down to what it

is that characterizes a company. Also, we could not create one rule to apply to any

Swedish company, since they are all different. The outcome of this thesis only reflects

these companies’ realities and may not be applicable to others. However, we argue that

lessons could be obtained by looking at how these companies have been conducting

their internationalization to Africa, by carefully adapting it to other companies wanting

to go similar ways as these four have.

Furthermore, our sub-question has also been answered. According to our interviews

with newer companies such as Samres and Atsoko, we have noticed that they are not

explicitly following any traditional internationalization theory when expanding abroad.

However, after examining different theories, we did notice similarities and patterns of

how they are expanding. This indicates that also newer companies are using these

theories as a tool for expansion, however perhaps unconsciously.

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6. Conclusion This chapter includes summary, concluding discussion, critical review, limitations and

further research.

6.1 Summary and concluding discussion

As many developing countries are opening up towards inward foreign investment

(Alfaro et al., 2004), many companies will still struggle to expand to Africa since

skepticism towards western capitalism is still existent in many of these countries

(Jakobsen et al., 2011). However, according to our study, there are still many

possibilities for Swedish firms to expand to African markets, such as in Tanzania,

Rwanda, Senegal and South Africa. Our findings illustrate that all four examined

companies have bright prospects. They all possess different assets – everything from a

strong brand name, personal experiences to good partnerships – which will help them

continue to expand on their respective markets and in their respective industries.

Although, it must be noted that it is in some cases very early to be able to predict how

things will develop. For instance, Findus and Atsoko are still in their very beginning as

companies in Africa. Moreover, with their respective skills and experiences, the

prospects look positive, and this goes for Atlas Copco and Samres as well. A

generalization can be drawn from the fact that these four companies have optimistic

futures. It is possible to claim that other Swedish companies may find that the

opportunistic African market is suitable for their internationalization plans. Generally,

the only negative aspects with the African market are the political and economic

instabilities, as Musila et al. (2006) argues.

6.2 Critical review

Since the aim of this dissertation is to find out how Swedish firms are internationalizing

in Africa and what the future withholds, a different result would perhaps be found if

companies from other nations were examined. Furthermore, examining a fewer number

of companies would perhaps allow us to in greater detail examine how a Swedish firm

is expanding to an African market.

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6.3 Ethical aspects

It is possible to question the ethical motives and the ramifications it brings when a

foreign company is trying to enter a market where labor costs and the general quality of

life are lower. If the locals, who may not be used to or aware of western standards (such

as health care, insurance or minimum wage), are exploited or lied to, it would definitely

be considered as unethical behavior. A company should not take advantage of another

party’s lack of knowledge. Granted, wages are naturally lower in certain countries than

in others. However, it is important to still fulfill certain aspects in order to ensure that

the employee can uphold a decent life, i.e. health care, insurance or minimum wage. For

instance, Samres offer their Senegalese employees higher-than-average wages and on-

schedule salary payments, which is not to be taken for granted in many countries.

6.4 Limitations

Since time is a factor, we were limited to only one interview per company. Furthermore,

availability and money have also been decisive factors when selecting companies to

examine. It would have been preferable to be able to meet with everybody in person, but

for various reasons, this has not been a possibility. Some companies did not have any

time slots open for us, while others simply ignored our approach. Conclusively, time,

money and availability have led us to four companies, conducting their businesses in

different industries and in different nations in Africa. Even though it would have been

interesting to investigate a larger number of companies, it would not have allowed us to

dig deep enough due to time restrictions. Furthermore, we chose to limit ourselves to

only Swedish companies active in the African market. Since this focus is a core

component in our dissertation, adding companies from other countries to this formula

would make our paper to wide.

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6.5 Further research

It would be interesting to examine a wider number of companies, from different nations

operating in different industries to find out if the internationalization process differs

between countries.

Another interesting angle would be if a larger number of companies within the same

industry were examined, regardless of country. This perspective would shed light on

how companies in specific industries internationalize in Africa.

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Appendix 1: Interview guide

Since we conducted semi-structured interviews, to let the interviewee expand his or her

answers, we used open-ended questions. We asked all interviewees to shortly explain

how their businesses were internationalizing. Furthermore, we asked in more detail why

and how Africa was chosen as a destination for expansion. Moreover, we asked all

interviewees if there were any notable obstacles and difficulties along the way. Also, we

asked what type of mode of entry they conducted. Conclusively, with these questions as

a base, we could expand our questions based on the interviewee’s responses.

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Appendix 2: Interview questions

We basically asked all four respondents the same questions, to be able to compare their

answers. Naturally, some further questions were introduced while conversing during the

interview. However, the questions we used as a foundation were all the same.

Question 1: Please introduce your company’s international affairs and operations.

This question, or statement, was asked in the very beginning of the interviews to get a

quick overview of the companies’ businesses.

Question 2: When did your company decide to expand t o Africa, and why?

One of the reasons behind this question was t o see how they reasoned when choosing

Africa instead of other promising economies. Another one was, of course, to find out

how long they have been there. One can draw many conclusions and predictions based

on how long a company has been active in a market. We thought these two factors were

important for our research.

Question 3: How long before entering Africa did your company plan to do so?

Here, we wanted to find out if they had made any significant research about the African

market and its possibilities before entering, or if it was just a coincidence. This question

was somewhat answered by the previous one, when we asked about why they were in

Africa. Some companies had made vast macro analysis to see whether the African

market suited their vision and business idea, and if there was a target group to reach out

to.

Question 4: What was the most difficult part of expanding to Africa?

This question was asked to see if there were any similarities between what our

respondents answered. Also, it was asked to shed some light on what to learn from in

the future, when Swedish companies may try to enter the African market.

Question 5: What were the obstacles on the way?

This question bears some similarities to question four. However, this question was more

directed towards legal obstacles, such as tariffs, quotas and taxes. Since our respondents

were in Africa in different ways (i.e. export, production etc.), different obstacles were

faced, and overcome.

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Question 6: How do you predict your company will fit and develop in the market in the

future?

It was pivotal to us to see how the respondents reasoned when trying to predict the

future. Since we assume they are planning to stay in their respective markets, it would

be interesting to see how they think the market will evolve and how they will adapt to it.

Question 7: Why did your company choose this specific country to expand to?

Naturally, it would be interesting to find out why a certain nation or market is

interesting for a firm than another. An interesting point here is to find out if there are

any specific reasons behind this choice of action. This question takes it a little bit

further to a narrower path than the second part of question two does.

Question 8: What mode of entry was opted and why?

Some of the respondents’ companies exported to Africa, rather than produce in Africa

and sell their products. We found it interesting to see as to why export was preferred to

local production and the other way around.

Question 9: What lessons did you learn from previous expansions?

One would assume that after each expansion, one becomes a little better and a little

more knowledgeable which will eliminate some of the potential pitfalls of international

expansion for the next time around. This question was to see whether the companies

learn from their previous mistakes, if there were any.

Question 10: Do you have any further information that could be interesting to know?

This question was asked to let the respondent sum up his or her thoughts and, perhaps,

add something new that we had missed to ask.

These ten questions were used as a reference point in our interviews and they were only

edited to a minor extent to suit the respondent’s company a little better

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Appendix 3: Interviews

Appendix 3.1 Interview 1, Lina Jorheden, Business controller, Atlas Copco

Berätta kort om företaget och de internationella affärerna.

Många frågor vänder sig till nya bolag. Atlas Copco fanns redan i Afrika på 1920-talet.

Vår närvaro i Afrika är, det vill säga, ingen nysatsning eller någon ny marknad. Vissa

frågor går därmed inte att svara på, för mig. Jag kanske kan hänvisa er till någon som

vet mer, någon som kanske var med vid expanderingen vid 80- talet. Där kan ni kanske

få djupare info, då jag är mer aktiv i dag i Tanzania. Men jag kan göra mitt bästa,

absolut!

Tanzania har en oerhört stor gruvindustri. I Östafrika är det gruvindustrin som är den

största anledning till vår närvaro. Av hela Atlas Copcos försäljning så står Afrika för

ungefär 12 %, vilket inte är en liten marginell andel. Afrika är alltså en kärn del i

verksamheten. Gruvindustrin och kompressorindustrin är två stora marknader här. Men

kompressorerna säljs mer till industribolag/tillverkningsbolag.

Vi finns i Afrika och säljer nästan till alla marknader. Vi finns i ungefär 80 men säljer

till fler an 170. Varje år öppnas en ny bransch i ett annat land. Det är främst i Afrika vi

expanderar. Förut, i Kenya, så sköttes hela Östafrika därifrån. Men nu känner vi att vi

behöver lokal närvaro. På Atlas Copcos hemsida finns pressreleaser att vi öppnar i

Senegal, Mocambique, Mali och Burkina Faso. Det händer väldigt mycket, främst i

gruvindustrin.

Sedan 2010, när jag började på företaget, kände man att man måste ha management på

plats, runt 60 stycken anställda. Att styra ett bolag i den här delen av världen från

distans är inte lätt. Numer rapporterar vi också direkt till Sverige än till Kenya, som vi

gjorde tidigare. Vi brukar göra som så att vi öppnar upp en bransch som sköts av ett

närliggande bolag som funnits där längre. Sedan när man växer och får större

omsättning, med en mogen marknad och med kundsegment som kommer fortsätta köpa

- då flyttar man legala enheter och management dit. Så här brukar vi göra överallt. Man

skickar alltså inte ner någon trupp från Sverige, utan det är närliggande bolag som

sköter det. Det är bättre att det sköts så här än att någon projektgrupp skall göra det.

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Vad är det svåraste med att expandera? Kultursvårigheter?

På 20-talet var det nog väldigt svårt! Innan Internet och allt förstår jag inte hur de

klarade av det! Men idag, med nya företag, så kan jag hjälpa er med en kontakt som jag

har. En sminkimportör och distributör. Butik i Tanzania och Rwanda. Hon möts

dagligen av utmaningarna av kulturen och regler o lagar, så hon kan nog berätta om det.

Men det jag märker är Tanzania ganska nytt som land. 50 års självständighet, men hade

stark socialism väldigt länge. Marknadsekonomi är fortfarande något väldigt nytt som

man är skeptiska emot. Generellt sett ses företag som några som roffar åt sig och är

bovar. Det är väldigt svårt att få arbetsvisum och tillstånd för att kunna betala skatt på

rätt sätt. Det finns många hinder. Marie (Linas vän/kontakt) kanske kan utveckla mer!

Det är absolut en utmaning på en så här ny marknad med marknadsekonomi. Det är ett

annat synsätt i ministerierna och de man möter på den offentliga sidan (jämfört med i

väst).

Fortsättningsvis, något som gör det lättare är att våra kunder är andra internationella

företag. Vi beter oss mot dem som vi gör i resten av världen. Man ska bete sig rätt och

riktigt, det är nolltolerans för korruption osv. Men med lokala kunder, eller bolag ifrån

Kina eller Indien, är företagskulturen annorlunda – med olika krav på bolaget. Men som

sagt, med stora internationella bolag (väst, egen anm.) emellan så är det verkligen noll

tolerans vid korruption och dylikt, vilket underlättar.

Många svenska företag på 20-talet i Afrika?

Nej, men där fanns nog några till! Inte vad jag vet säkert dock.

Framtiden då? Stärka sina aktier och utvecklas mer?

Det är en ständig diskussion med Asien och deras starka, snabba tillväxt och

fattigdomen har minskat kraftigt. Fattigdomen är dock väldigt stor här fortfarande, och

Tanzania är ett av världens fattigaste länder. Det märks! Men å andra sidan tror jag inte

att en världsdel kommer kunna vara så mkt efter andra, eftersom globaliseringen är så

stark och Afrikas resurser är så otroligt stora. Här finns fortfarande några få konflikter (i

andra länder), men det strävas mot demokrati och näringslivet har en viktig del i den

processen. Jag är positiv. Marknadsekonomin bidrar till utveckling i dessa länder. Rent

företagsekonomiskt finns en otrolig marknad. Om man kan få en medelklass som finns i

Asien, finns det otroligt med potential för att göra business även i Afrika.

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Hur ser det ut med ekonomisk nationalism, fientlighet mot väst? Stort problem?

Det är inte som i t ex Sydamerika där man kan nationalisera industrin. Här bygger man

mer upp krångliga regelverk som kostar mycket. Sverige har bistått Tanzania väldigt

länge, med skattesystem och så. Man har inte varit riktigt redo för det, stort steg. Vi är

inte oroliga för nationalisering i gruvindustrin. Det är för stora intressen från det

internationella samfundet. Men jag förstår att det ser ut som det gör idag. Gruvorna är

den största industrin och de största företagen och exportörerna finns här. Några av de

allra största, är de från Kanada. De trädde in tidigt i Tanzania, kanske 10-15 år sen.

Förhandlade bra avtal med regeringen. Låg skatt osv. När dåvarande regeringen slöt

detta avtal, gick de med på att det aldrig skulle ändras så länge gruvorna är i drift. Då

blir det svårt för en ny regering att frångå det här, eftersom deras handlingsutrymme är

begränsat. Då byggs konflikten upp emellan den ”onda internationella kapitalismen”

och den gamla socialistiska politiken. Vi som försöker verka mer med en svensk kultur

vad gäller företag, vi kanske straffas lite på grund av hur det såg ut i början. Men

gruvorna är också under stor press från media och den allmänna opinionen runtom i

världen, man kan inte bete sig hur som helst.

Är det många av era konkurrenter som har avtal med regeringen?

Nej inte konkurrenter, men kunder, och så brukar det se ut i världen. Även inom

oljeutvinning. Med naturresurser måste man förhandla med staten. Man kan ha olika

maktpositioner. I Norge så visste regeringen inte riktigt vad man skulle göra men man

lyckades få till en skatt på 60 procent på allt man utvinner, medan här, i Tanzania, är

den kanske 2-3 procent. Så ja, det ser olika ut på grund av förhandlingssituationen.

Hur började Atlas Copco gå till Afrika? Flyttade produktionen?

Vi har väldigt lite produktion. Lite i Sydafrika. Annars är det helt dominerat av

säljbolag. Det importeras och säljs. Den produktion vi har i Sydafrika är genom förvärv

vi gjort.

Kände ni att bolagsförvärven var en nödvändighet för att de kanske besatt viktig

lokal information om marknaden?

I Sydafrika tror jag det mer var en teknik man ville åt. Man exporterar globalt därifrån.

Det var alltså inte någon kännedom om lokal marknad man ville åt.

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Använder företaget samma metoder vid expansioner? Det vill säga förvärv i olika

länder?

Strategin är att 1/3 ska vara förvärvstillväxt, acquisitions, och 2/3 organisk

förvärvstillväxt, Greenfield investment, generellt över en cykel. Förvärven sker ofta

genom att vi vill ha en ny teknik eller produkter som ligger nära våra egna, alternativt

att vi vill in i ett liknande segment det vi har. Till exempel för fem år sen köpte vi

Dynapac som är ett svenskt bolag inom vägbygge. Vi sålde också mycket till

Construction-kunder via våra riggar som gör tunnlar och portabla kompressorer. Vi

trodde detta segmentet passade oss så vi köpte Dynapac. Vad gäller organisk expansion.

Vi öppnar ofta upp en bransch i ett grannland som ett annat bolag tar hand om som

sedan blir ett eget bolag. Vi förvärvar väldigt sällan för att komma in på en geografisk

marknad. Endast om det är ett samarbete med en distributör med mycket kontakter och

stort nätverk. Då säljer vi till dem istället som sen säljer vidare. Då kanske vi själva vill

in i marknaden och köpt upp distributörerna. Det är dock sällan och undantag.

Några speciella läxor vid tidigare expansioner?

Vi expanderar sällan geografiskt genom förvärv. Det beror ju på om det är en liten

distributör i ett land där vi redan finns, eller ett nytt segment, eller ett globalt företag

osv. Det har funkat bäst när vi öppnar kontor i länder som vi redan haft bra kännedom

om segment och marknad. Man skickar alltså inte ner någon som inte har varit där.

Även om ett grannland har bra koll på hur de funkar med kunder o så, så kan lagarna

skilja sig mycket åt från land till land. Man måste se till att ha lokal expertis för skatter

och legala krav för bolagsverksamhet. Där behövs oftast hjälp från huvudkontor eller

global nivå. Det är oerhört viktigt att det sker på rätt sätt. Så om man bara tittar på rent

operationell etablering och att vi säljer, då är närprincipen är bäst (som tidigare

diskuterat). Då måste man ha stöd med allt det formella.

Övrig information som kan vara relevant?

Det är stora skillnader emellan Tanzania och Sverige. Producerar i Sverige och har,

naturligtvis, funnits där länge. Tanzania är en ny marknad med många skillnader. Man

kan lista en massa. Men jag tror att det som kan ge mest för uppsatsen är om ni pratar

med min kompis Marie som jag nämnde innan. Hon har färsk information. Startade

ifrån Sverige, men marknad är i Rwanda och Tanzania. Hon bor delvis här. Hon kan

hjälpa er mer, tror jag!

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Appendix 3.2 Interview 2, Björn Falk, CEO, Samres

Berätta kort om er verksamhet och era internationella affärer.

Samres affärsidé är att vi organiserar anropsstyrd trafik, det betyder att vi tar hand om

beställningar och vi planerar resorna och vi sköter all administration runt omkring det

här.

Vi har gjort detta i Sverige sedan 1993. Sedan 2005 har vi etablerat produktion

utomlands, call-center verksamheter utomlands för den svenska marknaden och det är

först i Estland 2005, sedan Moldavien 2008 och nu Senegal 2011-2012. Det är vårt

första steg av utlandsverksamhet att vi skaffar oss produktionsanläggningar utomlands,

cell center anläggningar, utomlands.

Sedan 2011 har vi också haft uppdragsgivare, kunder, utomlands. Där har vi en stor och

betydelsefull kund i Oslo och sen har vi en liten kund i Estland. Så man kan säga att vi

har två typer av utlandskontakter. Det ena är produktion och det andra är kunder. Dessa

två hänger egentligen inte alls ihop. Möjligen det estniska hade vi inte kunnat få om vi

inte hade haft verksamhet i Estland. Så där finns en liten koppling. Vi startade

produktionen i Estland och fick kunden långt senare.

När bestämde ni er för att expandera till Afrika? Varför Afrika och inte till

exempel Asien och Sydamerika i stället?

Vi bestämde oss för att etablera och gå till Afrika 2010. Varför, det var så att vi gjorde,

inför den etableringen. Eller vi får dra hela historien. Vi började med att bestämma oss

att etablera oss i Estland och det beslutet fattade vi 2003-2004 och vi var i gång 2005.

Sen hade vi kört i Estland i ungefär 2 år och under den tiden så var den ekonomiska

utvecklingen i Estland explosionsartad, snabb, bra, löneutvecklingen gick uppåt och vi

konstaterade att förr eller senare så kan vi inte vara kvar i Estland. Estland kommer inte

vara ett lågkostnadsland, vi måste söka oss vidare. Då gjorde vi viss research och

bestämde oss då för att etablera oss i Moldavien. När vi hade gjort etableringen i

Moldavien och lyckats med den, då konstaterade vi att kan vi lyckas i Estland, kan vi

lyckas i Moldavien, då kan vi i stort sett lyckas var som helst om det finns rimliga

förutsättningar. Då vände vi på det och sa så här: ”Var skulle vi då etablera oss? Var

tror vi att det finns rimliga förutsättningar?”. Så ställde vi upp dem, vad är rimliga

förutsättningar? Vad måste vi ha? Och då sa vi att det måste vara ett land dit vi kan åka

och tycka att det är någorlunda sjyst. Det kan inte vara politisk instabilitet, dem

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länderna faller bort. Det måste vara ett land som har interneten, teknisk infrastruktur

som gör att vi kan ta emot telefonsamtal och det land som borde finnas ungefär i vår

tidszon. Vi har mest att göra på dagtid och då vill vi inte jobba, vill inte att dem

anställda ska jobba på natten, så då funkar inte Asien. Utan då får man lix om Europa

och söder ut. Sen sa vi att det ska vara ett land där vi tror att vi relativt länge kan ha bra

kostnadsfördelar och ett land där vår kostnad blir en bra lön. Att en låg kostnad för oss,

blir en bra lön. Det ska vara en stor skillnad där. Det var det i Estland från början men

det är det inte i Estland idag. Idag så är våra löner i Estland okej, men vi kan inte

överbetala folk i Estland. Det gör vi däremot i Senegal. Där kan vi lix om gå in och vara

löneledande. Vi betalar folk mer än vad någon annan kan tänka sig göra. Det är även

samma sak i Moldavien, där är vi kraftigt löneledande. Detta gör att vi får låg

personalomsättning och vi kan använda lönen på ett annat sätt än vad vi kan göra om vi

pressar den. Så dem här var villkoren och då gjorde vi en scanning utav en massa länder

i före detta sovjetunionen, några länder i Europa i övrigt och i stort sett Afrika norr om

Kongo. Det är ganska översiktligt att vara tänkbart. Och då fick vi, det var innan den

arabiska våren, då föll hela Nordafrika bort på grund utav politiska skäl och sedan hade

vi kvar ett par länder. Vi tittade på Georgien, vi tittade på Ghana och Senegal och så

vidare. Och när vi tar det sista steget, då blir det en del praktiska frågor, eftersom vi

måste ha en bra lärarplats. Varpå den här 3-4 ställena som vi kan hitta en bra lärare alla

uppfyller baskraven, det funka och där hittade vi den lärare som vi tyckte tros kan fixa

det här och det blev i Senegal.

Är ni nöjda med Senegal?

Ja, ja det tror vi. Vi var lite svettiga när det var de här oroligheterna inför presidentvalet

för ett par månader sedan. Då hade det ju kunnat gå snett och det hade kunnat drabba

oss illa. Nu är det oroligheter i Mali, som då är grannland till Senegal, det är också lite

sådär. Har vi otur så sprider det sig och det kan påverka oss. Men samtidigt har Senegal

varit politiskt stabilt i väldigt lång tid. Så att, i princip, ja vi är nöjda. Det har gått bra

och det har gått ungefär som vi tror. Sen har man alltid stött på lite mer, vissa saker är

lite jobbigare än annat.

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Hur länge pågick planeringarna?

Hur länge var det innan vi startade? Konkret, så började vi med research 2008. 2010

gjorde vi planer på att fatta beslut, jag var nere första gången december 2010.

Dessförinnan hade en av mina kolleger varit nere. I januari 2011, så började vi rekrytera

personal för utbildning, vi gick i gång med språkträningen i mars 2011 och dem

besvarade dem första telefonsamtalen i januari 2012. Snabbheten gick fort beroende på

hur man ser det, var vi började med det och när vi gick i gång. Nu är vi i produktion och

det har vi varit sedan mars-april.

Vad upplever du var det svåraste med att etablera sig i Senegal? Kultur? Språk?

De största hindren?

Det svåraste hindret är nog att man pratar franska. Många pratar engelska men det finns

ett antal funktioner som du inte klarar dig utan franska. Så om man inte ska gå på dem

stora internationella advokatbyråerna så pratar folk franska. Om man inte vill ha dem

stora revisionsbyråerna så pratar dem också bara franska. Bokförarna pratar bara

franska. Alla andra sådana här praktiska frågor så pratar folk franska. Vi som har varit

nere och jobbat där, vår ekonomichef och IT-chef pratar lite franska, men i övrigt så kan

inte vi franska och det är ett jätteproblem. Vi sitter och förhandlar med dem och vi

måste gå via en tolk eller hitta någon som översätter, det är krävande. Det tar tid och det

är komplicerat och så vidare. Sen får man ibland dokument som dem tror är översatta

till engelska, som är helt oläsliga, dem är översatta med Google translate. Man kan få

dokument och undra vad är detta, vad menar ni? Så språket kan jag säga är det.

När ni sökte folk så var det krav att dem skulle ha två års utbildning i engelska,

var detta för att underlätta?

Nej det är faktiskt något helt annat. Vi tar deras engelska kunskaper som tecken på hur

bra dem är på att lära sig språk i allmänhet. Så i princip skulle dem kunna vara bra på

tyska eller något annat språk så hade det också funkat. Det finns en liten fördel med att

dem pratar engelska, lättare för oss som inte pratar franska. Men i princip så lär dem ju

sig svenska sen kommunicerar vi på svenska. Men däremot är det så att om du lärt dig

engelska bra så kan du förmodligen lära dig svenska och eftersom engelska inte är deras

modersmål. Hade vi etablerat detta i ett engelsktalande afrikanskt land så hade vi fått ta

ett annat språk än engelska. Detta är bakgrunden till detta med engelskakunskaperna.

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Brukar ni köpa upp andra, förvärv och så vidare?

Vi ägnar oss inte åt det, vi växer rent organiskt och vi startar upp det, utvecklar och

driver det själva. Vi köper inte bolag alls.

Det finns inga planer på det alls?

Nej inga riktiga planer på det, skulle det komma en situation där det fanns något

intressant och köpa så är det klart att man inte skulle säga nej och det gäller ju att man

håller ögonen öppna men det finns inga sådana planer och vi har aldrig gjort det men då

har vi inte sagt att vi inte skulle göra det. Men det är ingen del av affärsiden.

Hur ser det ut med konkurrenter? Med konkurrenter från Skandinavien och

Europa som också har call-center i Afrika? Är det vanligt?

Ja det är det, det finns rätt mycket call-center, det var ju ett skäl till att vi

överhuvudtaget kom på att man kunde vara i Afrika. Framförallt fransktalande företag

har call-center i Nordafrika och även i Senegal dem jobbar då mot Frankrike och mot

franskatalande Kanada, så där finns det mycket. Det finns även engelsktalande call-

center i Afrika. Det finns en sådan bransch. Det vi då gör är att det hänger på

lönenivåerna, att på ett sätt så priskonkurrerar vi men vår nisch är lite annorlunda. Vi är

mycket, mycket mindre än dem andra cell-centrarna, det finns andra call-center med

1000-tals anställda. Vi är mycket mindre och vi är mycket mer specialiserade, vi gör

bara anropsstyrd trafik, vi gör ingenting annat. Alla hos oss ska lära sig det, lära sig

hantera våra kunder och allting sådant, specialiserande utbildning och vi är beredda att

betala rejäl premium. Sedan finns det ju chans att ett annat svenska call-center skulle

kunna etablera sig där och sno vår personal, det kanske är så, men det har inte hänt. Om

vi har rätt för oss så är vi det enda svensktalande cell-centret i Senegal. Jag tror inte det

finns något annat svensktalande call-center i Afrika, vad jag vet.

Eftersom ni betalar bra premie och så vidare så känns det svårt och matcha det

sen.

Ja men sedan kan någon annan bestämma sig för att de kan betala ännu mer premie men

då börjar man fundera på varför dem måste vara just där vi är, då kan dem ju lika gärna

gå någon annanstans.

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Anledningen till att ni är där är väl för att det är lite lägre lönekostnader?

Oh ja, visst. Lönekostnaderna i Senegal är ju lägre än i Moldavien och vi tror att dem

kommer vara det under en längre tid så att vi kan fortsätta att vara konkurrenskraftiga

under en längre tid, men givetvis inte för alltid. I artikeln i Expressen så är det någon

där som säger att jag kommer inte stanna här tills jag pensionerar mig och det är ju

självklart och det vet vi också. Tittar man 20 år framåt i tiden så kommer situationen att

vara helt annorlunda. Vi behöver inte ha den tidshorisonten.

Har ni planer på att gå till andra länder i Afrika?

Inte just nu, men egentligen är det ju så om man tittar på vår historia så är det ju klart att

vår erfarenhet just nu är ju att det går att etablera sig. Om vi har klarat av att etablera oss

på tre rätt olika ställen, det innebär ju att avståndet inte har någon betydelse. Det finns

inga genetiska skillnader mellan människor som gör att de inte kan lära sig svenska och

sådant där och i princip skulle man kunna lägga sig var som helst.

Det tar cirka 3-4 år mellan era expansioner och då måste man kanske insupa

erfarenheterna och lära och ta till sig någonting.

Så är det, vi har blivit bättre, vi vet ju vilka misstag vi begick på de olika ställena, så vi

har ju blivit bättre och bättre på att göra, av de misstag man gjorde, hur man

kommunicera med folk och vad man säger till folk när man anställer dem. Vilka

förväntningar bygger man upp? Det är oerhört viktigt därför det är inte alltid vi säger

någonting så måste folk tro på det. Dem måste förstå i vilket sammanhang vi kommer in

och det gör man inte så lätt. Sen har ju vi svensk kultur på hur man förhandlar, hur man

kommer överens om saker och ting och den är ju inte världsomspännande och där finns

det ju skillnader och vi har ju bestämt oss för att på Samres är det svenska normer som

gäller.

Hur har det gått?

Det har gått jättebra, det har ju krävt en del diskussioner. Så när vi säger att det här är

den lön vi betalar, så är det de som gäller. Vill man inte ha det så får man gå någon

annanstans. Det är inte ett förhandlingsbud. Å andra sidan så är det så att pengarna

kommer, det är inga omvända förhandlingsbud heller. Du får alltid precis det vi har

sagt. Det är ganska normalt för ett svenskt företag I Sverige, men så är det inte. Så har

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det varit i både Estland och Moldavien, något som har skiljt ut oss från en del andra

företag. I båda länderna finns också call-center men just det att våra

anställningskontrakt dem gäller. Lönen betalas och vi betalar sociala avgifter, så att när

man blir sjuk så får man sina sjukpenningar. Vi har försökt att implementera det som vi

uppfattar som bra svenska normer. Detta blir ju på något sett en konkurrensfördel.

Problemet är att det här som för oss är fullständigt självklart är inte det och det räcker

inte med att säga att vi kommer betala löner i tid utan det är först när man faktiskt gjort

det i ett, två eller tre år som folk upptäcker okej jag jobbar på det stället och där kommer

lönen alltid den 25:e och den finns på mitt bankkonto, det är inga problem.

Det borde ju vara en ganska attraktiv egenskap.

Jag tror att det är en attraktiv egenskap men den är ganska svår att kommersialiseras, det

handlar om förtroende på något sätt som vi bygger upp.

Men det kan ni kanske lyckas bygga med åren?

Ja, jag tror att det gör att folk kanske drar sig lite mer för att sluta även om de skulle

hitta ett mer attraktivt jobb, därför att gillar man trygghet så väljer man att vara kvar.

Vad har ni lärt er från tidigare expansioner? Vilka misstag har ni gjort?

Att man måste vara övertydlig med vad man menar, att inte tro att saker och ting är

självklara. Det som vi tror är självklart bara för det är så i Sverige, det är inte självklart.

Man måste diskutera med oss och förstå vilket socialt sammanhang dem befinner sig i.

Även i Estland, det är annorlunda. Så fort det är annorlunda så rikserar man att det som

finns i Sverige är självaklart och det kan ibland vara svårt att se vad det här är. Det

handlar om ledarskap och organisation. Svenska företag generellt och vi också är ju

ganska öppna men det innebär ju inte att vi är mjuka. Det är en sak att lyssna på någon

och sen bestämma och sen komma fram till någonting bra men det innebär j inte att när

vi gjort det så är vi mindre fasta i det än någonannan är. Däremot så har vi ett annat sätt

att kommunicera, ett annat sätt och beskriva det och kanske ett annat sätt att genomföra

beslut. Men vi förväntar ju oss att folk gör det ändå, men vi säger ju kanske det på ett

annat sätt. Det här är ju en svårighet som finns. Vi måste lära oss att vad det är vi säger

betyder, men det måste även medarbetarna. Den här typen av skillnader finns och det

har vi lärt oss att de är olika. En sak till vi lärt oss är det är inte så att det finns ett

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Sverige och ett utland utan det finns många utland. Också det skiljer sig såsom kultur

och vad som är viktigt och oviktigt mellan olika länder.

Har du någon övrig upplysning som kan vara viktig för vår uppsats.

Det finns en del artiklar gjorda om just detta. Det som händer nu, även utanför Samres

är dels svenska företag som etablerar sig i Afrika för att ha produktion. De flesta

produktionsföretagen är ju produktion av prylar. Tjänstesektorn är mycket mindre men

det är nog där det kommer, typ call-center med andra tjänster man kan utföra på distans

tror jag är en jätte potential. Svenska företag som gör det är nog få, men det finns då

franska och en del amerikanser som varit med rätt länge. Även på marknaden med

företag som etablerar sig där för att sälja, vilket är en väldig skillnad. Ericsson har en

stor anläggning/kontor i Dakar, men det är egentligen för försäljning och byggnation

dem har ju ingen traditionell produktion i Afrika även om dem är många gånger större

än vad vi är i Afrika. Det som händer då är att dem tar sina prylar, datorer från Sverige

till Afrika men mer av det dem gör är tjänsteliknande och det görs på plats i Afrika.

Betalar ni skatterna till Senegal eller till Sverige?

Senegal. Dels så betalar man personalskatter och sociala avgifter och så vidare, det är

egentligen det stora. Sen på bolagsresultatet, vinsten av bolaget, så betalar vi då

bolagsskatt i alla dem här länderna och vinsten beskattas en gång, den beskattas där och

sen beskattas den inte i Sverige. Sen finns det prissättning och det följer ju reglerna för

allmänheten, transfer pricing. Som finns med ganska omfattande regler, hur man får

sätta internpriser i koncernen. Vi använder en marknadsprissättningssystem, så vi tar ett

pris på vad en svensktalande medarbetare utomlands skulle kosta och det finns sån

marknad som går att titta på vad det här kostar och då blir det ju ingen skillnad var man

sitter någonstans, det blir ju egentligen ett globalt pris. Av Samres totala bolagsskatt så

betalar vi hälften utomlands och hälften i Sverige

Fanns det några handelshinder i Senegal? Tariffer och så vidare för utländska

bolag? Är det högre skatter för er?

Nej, snarare tvärtom. Där har vi en väldigt stor fördel eftersom vi i princip inte skickar

prylar. Vi har skickat ner datorer och nätverksgrejer och sådant. Saker vi konfigurerat i

Sverige och skickat ner. Där var det inga sådana handelshinder men det var en viss

pappersbyråkrati att få igenom det. Det är inte så mycket tullavgifter som pysslet med

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att få igenom det, det tar tid. Det största handelshindret vi har sett är nog egentligen

tvärtom, att få folk från Senegal och Moldavien att få inresetillstånd till Sverige, det har

varit komplicerat. Det beror då på att Sverige inte alltid haft ambassad och att svenska

processerna för att få visum är knöliga och komplicerade. Så vi har mer den typen av

handelshinder, än stämplar och papper som ska igenom tullen.

Är du optimistisk för framtiden i Senegal?

Ja, det tror jag. Jag tror att dem här handelsströmmarna kommer att driva utvecklingen i

Afrika rätt mycket och jag tror att mer och mer av det som produceras blir

platsoberoende, värdet i produktion blir mer och mer immateriell. Och då kan man

producera det var som helst. Tidszonen är beroende för oss men det finns säkert andra

tjänster där man kan göra det på andra ställen. Tjänsteinnehållet ökar av produkter så

blir det kunskapen av det immateriella blir värt mer. Det immateriella kan man

producera var som helst och då blir produktionen mindre låst vid stora fabriker och

transportvägar och viktigare blir det att man har duktiga medarbetare och en bra

organisation och den typen av saker. Det gör att jag tror att utvecklingen i Afrika

kommer att gå mycket, mycket fortare än den gjort på andra ställen. Dem kommer att ha

nytta av dem här utvecklingen. Dem länder som halkar efter är de länder som avsiktligt

förstör sina möjligheter. Det går ju att förhindra utvecklingen genom att aktivt bekämpa.

Jag tror inte att Zimbabwe kommer bli en lysande afrikansk stat förrän man ändrat det

politiska systemet. Med länder som är någorlunda ringa tror jag det här kommer lysa

igenom rätt mycket.

Hur är det med välkomnandet av utländskt kapital och så vidare från både

regering och folk?

Det vet jag inte, vi har inte haft några politiska kontakter alls egentligen. Vi för ju inte

in kapital på det sättet, vi betalar folk, utbildar dem och sen investerar vi ju väldigt

mycket i medarbetarna men vi köper ju inte stenkrossar och tryckpressar och sådant

som kostar pengar som vi skall investera i. Sen drar vi ju nytta av IT-infrastrukturen,

den är ju jätteviktigt för oss. Men vi har inga politiska kontakter så vi har inte märkt det

alls.

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Appendix 3.3 Interview 3, Mats Jörnell, Head of export, Findus Sweden AB

Mats Jörnell började med att presentera sig. Hans arbetstitel är Head of export och det

innefattar all export som Findus gör från Sverige och ut globalt. Dock finns det några

områden som en arbetskollega i har hand om.

Internationell verksamhet och var Findus Exporterar

Findus Sverige AB tillhör det nordiska klustret och företaget drivs härifrån i Bjuv. Vår

VD heter Jari. Ett annat kluster inom Findus är Frankrike-Spanien och det tredje är

England-Irland. Alla dessa tre klustren bildar tillsammans Findus Group, och de

omsätter omkring 13-14 miljarder, beroende på valutakurs. Företaget har 6000 anställda

och verkar i huvudsak inom frysta livsmedel såsom fisk, färdigrätter och grönsaker.

Dessa produkter är våra huvudområden där vi har en väldigt hög kvalitet och väldigt

starka varumärken. Koncernen har två olika varumärken; Findus och Youngs. Findus

återfinns i Norden plus Spanien-Frankrike och det andra varumärket Youngs, som är ett

fiskvarumärke, finns beläget i England. Båda bolagen har tillsammans skapats under ett

ägarskapsförhållande. Lion Capital, som är en private equity firma, äger dessa bolag.

Findus huvudkontor är här i Bjuv, här finns det 3 fabriker vi har även en i Helsingborg

och bara i Bjuv har vi 130 000 tons produktion.

Varför har ni ert huvudkontor i Bjuv?

Det kändes som en bra idé på 1960-talet. Det är bra att befinna sig i ett bördigt område,

med närhet mellan fabrik och leveranser. Idag är det precis samma tankesätt, närhet till

grönsaksproduktionen. Vi jobbar mycket med högkvalitativa ärtor, vilka vi inte behöver

frakta långt – detta är en kvalitetsfaktor. Bjuv ligger också nära E6:an och E4:an. Hade

man byggt Findus idag så kanske man hade lagt företaget i Landskrona, hursomhelst så

är det inte särskilt långa avstånd det handlar om.

I de länder som jag räknat upp hittills, är där vi har våra kontor och kommersiella

organisationer. I stort sett resten av världen tillhör exportavdelningen. Vi har tre olika

affärsområden inom export. Den första är industri (ärtor). Vi exporterar ärtor till

Sydafrika, Tyskland, Usa, Kina, Australien och Nya Zeeland. Väl handlad commodity

med hög kvalitetsnivå, vilket är tack vare det bra klimat och jordar vi har här. Företaget

tjänar 200 miljoner SEK på detta affärsområde. Det andra området vi har är food

service, restaurangartiklar. Där exporterar vi främst till Tyskland och Australien men

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även lite till övriga Europa. Det sista området och kanske det vi fokuserar mest på är

retail försäljning. Det är kanske där man ser Findus varumärke mest – i frysdisken på

till exempel ICA. Där är vi väldigt framgångsrika på Wok-rätterna, som utvecklades

redan på 90-talet.

När bestämde ni er för Sydafrika?

Vår första kontakt med Sydafrika var i och med försäljning av ärtor. Landet hade

problem med skörd av ärtor ett år och då kom de till oss med en förfrågan om vi kunde

sälja till dem. Det året hade vi överskott av ärtor så vi bestämde oss för att sälja några

tusen ton till dem. De var otroligt glada över den kvalitetsnormen våra produkter har

och då sålde vi inte ens våra bästa ärtor till dem – och de var ändå de bästa de hade

smakat! Det är just det som är vår styrka i företaget, att våra produkter, ärtor i det här

fallet, har korta fraktavstånd mellan skörden och nedfrysningen. Det i sin tur leder till

att våra råvaror behåller sin färskhet. Vi gjorde en marknadsundersökning med hjälp av

en konsult för att se var vi kan passa in med fisk, wok, grönsaker och färdigrätter.

Konsulten undersökte då olika prisnivåer etc. Vissa områden som till exempel fisk är

svårt, detta på grund av bland annat höga tullar. Med grönsaker, wok och färdigrätter

har vi en klar konkurrensfördel. Där har vi en mervärdes-produkt där vi adderar något

till produkten, till exempel fiskgratäng. Vi kände alltså att det fanns en plats för oss i

och med att detta inte fanns mycket av på marknaden. Men vi hade ännu ingen partner.

Det är helt avgörande enligt mig. Vi har köpt mycket fisk från Sydafrika, från samma

firma i 15-20 års tid. Vi bestämde oss för att åkte dit och presenterade Findus koncept.

Det var ett long shot, men de tyckte att det var kanonintressant med provsmakningar

osv. Vi fick en riktigt bra fit med dem och vi har en bra relation, för de tror på det vi står

för – fresh food frozen. Man tar ju grönsaken när den är som bäst och fryser den. Det vi

fick kompromissa om, var att vi inte fick sälja fisk, eftersom det var deras område. Vi

kan ju inte konkurrera med dem. De säljer sitt (fisk) och vi säljer vårt (wok, grönsaker

och färdigrätter). Vi gjorde en strategisk lansering och de valde en trading partner (typ

som ica), som de tyckte att Findus skulle passa bäst i. Eftersom vi fraktar från Sverige

så blir vi ju inte billigast på marknaden i Sydafrika. Det är inte heller vår tanke, med

tanke på den kvalitén på våra produkter vi har och erbjuda. Då gäller det att hitta en

matvaru-kedja och en målgrupp som passar den prisklassen vi har. Vi lyckades hitta en

bra kedja som hjälper oss att exponera oss på bästa möjliga sätt. Vi jobbade 1,5 år med

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att planera lanseringen, efter det är det stor kick-off i media. Jag ska skicka över

pressreleasen.

Har ni hunnit få någon respons ännu?

Vi har varit igång i tre veckor. Det går bra ur butiken, vissa såklart bättre än andra. Den

bästa feedbacken är att de flesta säger att det är en oerhört bra kvalité på produkterna

och att de kommer fortsätta köpa Findus. När man köper färska grönsaker så rensar man

ju de hemma i tillagningen, men det gör vi på bästa effektiva sätt i produktionen, vilket

gör att de frysta grönsaker man köper av oss, konsumerar man i stort sett allt utav. Man

behöver inte rensa och kasta något. Vi försöker förse marknaden med nyskapande och

vår position vi försöker bygga heter Success on a plate – Succé på tallriken. Vi har

skojat lite med loggan Findus = FInd Us. Vi vill inte uppfattas som ett svenskt

varumärke, inte utpräglat i Sydafrika. Det finns nämligen ett väldigt nationalistiskt

tankesätt i Sydafrika. Regeringen kör kampanjer för att främja deras lokala

produktioner. Det måste vi respektera med samtidigt måste man respektera att

konsumenten har andra kvalitetskrav. Men Sydafrika har många höga kvalitéer inom

kött och fisk. Det vi alltså säger är att ”Nu är vi tillgängliga här!” och inte ”Vi kommer

ifrån Sverige med en stor svensk flagga”.

De har inget särskilt emot Sverige. Ingen har något ont och säga, de är åtminstone

neutrala eller positiva.

Det måste ju hjälpa er?

Det är ingenting vi spinner på.

Varför valde ni Afrika och inte till exempel Sydamerika?

Våra makroanalyser visar oss var det finns fryskonsumtion. Hur stor är den och hur

mycket växer den? Hur ser handelsstrukturen ut och hur pass centraliserad är den? Vilka

marginaler jobbar man med? Utifrån det så kommer vi fram till vissa intressanta

marknader. Korea och Malaysia är också några intressanta marknader. Latinamerika är

också intressant, snarare än Sydamerika. Även Sydafrika dök upp.

En bra relation är vital för ett inträde i ett land. Man kan ha en relation som gör att ens

distributör jobbar mer aktivt för att lyckas med Findus. Och det tror jag vi har nu och

det har varit helt avgörande. Vi har en fantastisk dialog med vår partner. De har varit

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här och tittat och förstått vad vi vill åstadkomma och dem känner att vi har något stort

på gång.

Men som svar på er fråga så kan jag säga att om vi hade varit någon annanstans så hade

de kanske frågat varför vi inte befinner oss i till exempel Ryssland. Ryssland är

tillsammans med Kina en enorm möjlighet, men bara för det är stort betyder inte det att

det är en bra idé. Det är problem med Rysslands sju regioner, att kunna hitta någon

distributör i varje region eller en som har hand om alla. Även tullar som kan ändras

väldigt snabbt och radikalt.

Ni exporterar bara till Sydafrika, har ni ingen produktion?

Nej, ingen produktion. Vi kan tänka oss det på sikt. Vi exporterar ju grönsaker från

Sverige, som är odlade med en annan kvalitetsnivå. Vårt konkurrensargument kommer

falla om vi börjar odla i Sydafrika, eftersom vi står för kvalitet från Sverige. Vår

positionering är att vi är en högkvalitativ leverantör av smak. Kvalitén ska ju leda till att

de smakar bättre. Vi får den feedbacken.

Hur ser det ut med konkurrensen i Sydafrika och närliggande länder? Är ni först?

Jag ska vara försiktig med att säga något om närliggande länder. Vår distributör vill

flytta våra produkter till andra länder, och de får de gärna göra. Där finns andra aktörer

McCains (USA), global aktör med potatis. De är också duktiga på grönsaker, speciellt i

Sydafrika. De är en stor spelare på det, vi har även sålt ärtor till dem. De är en

konkurrent som finns idag och som vi får tampas med. Dem konkurrerar med pris och

vi med kvalité.

Det finns alltså marknadsandelar för er att ta upp?

Man har inte fullt utforskat möjligheten att få konsumenten att tillgodose en hög

kvalitativ produkt inom grönsaker. Vi erbjuder hög kvalité hela året runt.

Känner du att ni uppnår first mover-advantages och skalfördelar i och med ni är

tidiga på marknaden?

Det är en fin teori, men det finns redan frysta konkurrenter. Det finns inte fler från

Skandinavien och det finns inte heller obegränsat med utrymme. Så vi har ersatt en

redan befintlig aktör och tagit deras plats i frysdisken. Findus riktar sig, till skillnad mot

befintliga aktörer, till en bredare målgrupp. Det är en absolut fördel. Dock är det här

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inte applicerbart överallt. T ex i Serbien hade våra ärtor kanske inte gått hem, där de

kanske kostar dubbelt så mycket som de lokala ärtorna. Vi ska mötas igen i Sydafrika i

september och planera ytterligare steg.

Vad har varit det största hindret på vägen?

En utmaning är att hitta en distributör. Det låter kanske enkelt, men att åka runt,

presentera sig och få en bra uppfattning är viktigt. Distributörerna säger ofta att de kan

fixa vad som krävs, men det är inte alltid dem kan det. Den svåraste biten är

förpackningsutvecklingen, med alla lokala lagar och bestämmelser som Sydafrika har

på den biten. Lagarna är inte komplicerade endast mot utländska, utan de har lagar som

säger att förpackningen måste se ut på ett visst sätt. Distributören kan hjälpa en att få

bort majoriteten av dessa problem, men man måste uppfylla alla krav annars får man

inte lov att sälja. Det är många små detaljer som kan hindra. De är dock inte omöjliga,

men kan vara väldigt tidskrävande. Man har ju konkurrenter som lägger klagomål som

säger att det inte är det finaste. Men då visar vi dem att det är de, ibland annat våra

broschyrer. Vi blir också ifrågasatta när vi kommer in med mycket statements. Då

känner sig bland annat konkurrenterna sig hotade och kan ta till action.

Hur ser det ut med skatter, tariffer och tullar? I och med er export.

Vi har bra koll på det i och med att vi exporterar så mycket i Findus. Vi har en bra insikt

inom detta. Vi har en tullavdelning som jobbar med det här, de tar fram tullkoder på

våra produkter och tittar och säger att de borde vara si och så mycket. Det är krångligt

att exportera mat. Vi hade en halv telefonkatalog med intyg, livsmedelsverksintyg och

så vidare. Första gången är alltid jobbigast, men efter ett tag så har man mer koll.

Hur kommer er bransch att utvecklas i Sydafrika de närmsta 5-10 åren?

Den dialogen som kommer från konsumenterna är att fryst och färskt är viktigt. Vi anser

att storskalig produktion är bättre än småskalig, då den småskaliga belastar miljön än

mer. Vi anser ju att den djupfrysta är den bästa, odlingsmässigt. Vi odlar inte

ekologiskt, utan vi kör efter Low Input State Agriculture. Vi använder inte för mycket

bekämpningsmedel. Vi är hoppfulla att vi som företag kan gå vidare med våra

distributörer osv, framförallt i Sydafrika. Man har kanske mer utvecklingsmöjligheter i

Sydafrika än i Sverige, som är ett mer utvecklat land.

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Så det känns bra?

Nu gäller det att vara försiktig, då vi endast är tre veckor in i lanseringen. Man behöver

minst 3 månader för att få ett rebuy från konsumenten, en återkommande konsument. Vi

har en bra partner och bra produkter så min magkänsla känns bra!

Ni kör endast export?

Vi exporterar från de flesta av våra fabriker. Det är lite mer en slump att Sydafrikas

import kommer just från Bjuv. Men vi har alla produkter de önskar här. Det underlättar

ju även logistiskt att allt är här ifrån.

Är export den bästa metoden?

Förmodligen kan vi producera det effektivare där nere. Men när du pratar effektivitet

behöver man storskalighet. Kanske 50 000 ton för att dra runt en bra anläggning. Vi har

sålt 500 ton dit, så vi är en bra bit ifrån. Det kommer kanske senare i skedena. Vi kan

kanske bli effektivare genom att producera vissa bitar där, men då ska man kanske titta

på fler länder i Afrika på hur man tar tillvara på det man kan flytta. Men innan dess

måste vi ha större volym, ungefär 10 gånger mer.

Vad har ni lärt er från tidigare samarbeten och exporter? Kulturskillnader och så

vidare.

Alla länder har ju sin kultur. Inom Skandinavien så skiljer det sig också. Affärskultur

kan man lära sig och anpassa sig, men konsumenten måste vara beredd och köpa

produkten. Så där börjar man. Det gäller alltså att få konsumenten att vilja ha ens

produkt. Det är ganska få globala frysta varumärken. Vi är ändå ute och försöker

exportera i många olika länder. Det är större skillnad på hur man gör affärer än det är på

konsumenterna. Våra produkter kräver viss lokal smakanpassning i vissa länder. Helt

annan mentalitet i gulfområdet och i Kina. Vi har försökt där länge. Där är det

krångligare. Där är många saker i vägen. Både kultur och lagliga bitar.

Vad gjorde vi då bra i Sydafrika som vi inte lyckades med i gulfområdet? Det är svårt

att säga. Men relationen och närheten till distributörerna. Det är, återigen, oerhört

viktigt.

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Tror ni att ni kommer gå till andra Afrikanska länder senare?

Vi är redan i Algeriet, Tunisien och Marocko sen 2009. Vår tidigare franska exportchef

ledde till att vi etablerades där, i och med att de talar franska där. Det är en oerhörd

fördel att kunna kommunicera med dem.

Har du några övriga upplysningar?

Det vi gör är inte raketforskning. Utan vi gör en makro- och marknadsanalys för och se

om vi kan hitta en fit. Hur tar man bäst hand om detta? Prata med distributörer,

utvärdera vem som är pålitlig. Ta hjälp från exportrådet och andra konsulter. Göra

gråzonen lite mer svart och vit. Man behöver resurser och organisation, då det kan ta

lång tid från idé till verkliga affärer. En bra informerad ledningsgrupp och VD som vet

vad ni gör och varför, strategiskt. Man ska ha ett långsiktigt tankesätt när man vill

exportera. Det krävs från logistik- och tullavdelningarna. Och där kan man få hjälp

.

Afrika är ju en växande marknad. Får de bara ordning på politisk och ekonomisk

instabilitet så kan det ju bli en guldgruva för många företag.

Det har ju kineserna redan uppfattat, som investerat i halva kontinenten redan. Afrika

kan gå liknande vägar som Kina. Inte exakt, men liknande. Afrika är mer kortsiktiga än

långsiktiga Kina. Det är en väldigt intressant marknad. Vi håller oss borta från politiska

diskussioner, men man är ju medveten om läget.

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Appendix 3.4 Interview 4, Marie Englesson, CEO, Atsoko

Berätta om din verksamhet och dina internationella affärer

Vi håller på med ett företag där vi då ska öppna kosmetikbutiker nere i Tanzania och

Rwanda.

Vad har du för position i företaget? Är det ditt egna företag?

Ja det är mitt egna företag som jag startat själv.

När bestämde ni för att expandera dit och varför valde ni just Afrika?

Jag har tidigare jobbat på ett Telecom företag som är verksam nere i Afrika. Då jobbade

jag som inköpare. Det var väl då man insåg vilka möjligheter som fanns där.

Vad är det svåraste med att expandera just i Afrika?

Det är att marknaderna saknar regleringar och det är ganska oklart vilka regler som

gäller och det är väldigt svårt att hitta folk som man kan lita på och jobba med.

Hur länge pågick planeringarna för att expandera dit?

Cirka ett halvår till ett år.

Var det en jobbig process? Var det mycket och tänka på, fixa och planera?

Ja, det är kanske det man inser att det är väldigt svårt och planera, så vår strategi har väl

varit mer att gå ner och åka ner och testa och se vad som funkar och liksom lite mer trial

and error så att man kan planera att nu gör vi så här, för det händer hela tiden massa

saker som man inte hade räknat med.

Mötte ni några hinder på vägen? Kultur- och språksvårigheter?

Svårt och prata engelska, man får ju tänka lite på att när man kommunicerar med folk så

måste man vara så enkel, rak och tydlig som möjligt. Så när det gäller kultur så kan det

vara svårt och läsa folk och förstå vilka avsikter dem har. Å andra sidan så är det så att

när man gör affärer så kan man inte lita på folk riktigt.

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Är det från ert perspektiv eller deras? Att dem inte litar på er eller ni inte litar på

dem?

Det är nog på båda håll tror jag. Just med tillit tycker jag är rätt så svårt, folk är väldigt

kortsiktiga och folk är vana vid att inte lita på folk. Så det är nog nästan de stora

skillnaderna som jag tycker att Sverige eller mer mogna marknader där det finns vanliga

regler som gör att om man inte följer ett avtal så finns det institutioner men det finns ju

inte på samma sätt där utan det blir då att man måste lita mer på folk.

Tycker du det ser ljust ut att expandera till den afrikanska marknaden och att det

kommer att kunna utvecklas med tiden?

Ja, vårt företag finns ju inte på några andra marknader utan det finns bara i Tanzania

och Rwanda. På något sätt anpassas vårt företag efter den lokala marknaden. Kulturen

och värderingarna man försöker bygga upp i företaget ska ju på något sätt fungera där.

Hur gick ni till väga när ni expanderade? Startade ni företaget från grunden där?

Ja, vi gjorde så att vi hade ett företag registrerat i Sverige och sedan så startade vi upp

ett dotterbolag nere i Tanzania där vi då har lokaldelägare. Vi har tanzaniska och

svenska investerare, detta för att man inte kan som utlänning starta upp i Tanzania utan

en lokaldelägare, det finns massa hinder som till exempel arbetstillstånd och att kunna

få hyreskontrakt vilket är väldigt svårt att få som utlänning. Det är väldigt svårt och

starta upp någonting utan att ha en lokaldelägare.

Har du planer på att utveckla er eller expandera till andra länder i Afrika?

Ja det tittar vi på, vi tittar främst på två i Östafrika, egentligen kanske inte de här två

länderna har så mycket gemensamt, det är inte som EU eller så där men på något sätt

finns det någon typ av drag där och någon typ av kommunitet i Östafrika. Så vi tittar i så

fall på Uganda och Lindi och eventuellt Etiopien. Men det är lite längre fram, vi har

tillräckligt med Tanzania och Rwanda just nu.

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Hur länge har ni varit etablerade på marknaden? Är det nystartat?

Företaget var registrerat förra våren, sen så tog det ytterligare ett tag innan vi bestämde

exakt vad vi skulle göra och vad som var möjligt och nu öppnade butiken för bara några

veckor sedan, så det är helt nystartat.

Finns det några konkurrenter på marknaden?

Ja det finns det, några lokala ägare som har liknande kosmetikbutiker, det börjar komma

mer seriösa affärer men det är mindre affärer som tar in mindre partier av varor och så

säljer dem de lokalt. Det finns några indiska och arabiska affärsplatser, som vi kanske

skulle kunna se som konkurrenter. Det finns liknande produkter men inte riktigt samma

saker.

Hur är välkomnandet på marknaden av regering och folk? Blir det enklare när

man använder sig av lokaldelägare?

Det är väldigt stor skillnad på Rwanda och Tanzania. Tanzania känns det väldigt mer

som att dem försöker göra det så svårt som möjligt, på lite olika håll. Det kan vara så att

man försöker få till hyreskontrakt eller annat så får man betala mycket mer än de lokala

för folk tror att vi har en massa pengar. Sedan det som är svårast just i Tanzania är

arbetstillstånd, där dem i princip förhalar och förhalar. Vi har hållit på och försöka få

arbetstillstånd i 9 månader nu fast vi har investerat, byggt upp ett bolag och anställt folk

lokalt så undrar man vad det är som gör att vi inte får arbetstillstånd då. I Rwanda är det

lättare, regleringsmässigt. Men till exempel märker man mycket från skatteverken att

dem, man försöker följa alla deras lagar och regler men så tycker dem det är väldigt

intressant när man betalar in skatt så blir det nästan att dem försöker granska lite extra

noga.

Varför exporterar ni inte och anlitar någon distributör eller leverantör på plats?

Är det viktigt och vara på plats i dem länderna?

Det finns väldigt dåligt med bra distributörer. Vi är ju egentligen en distributör och det

är inga egna märken som vi tillverka. Det finns inte många bra lokala distributörer.

Företag säger samma saker och det är ju ett problem att vi som säljer smink och dem vi

köper av har haft väldigt dåliga erfarenheter då när dem skeppat varor och kanske gett

kredit och sedan har deras köpare aldrig betalt dem. Det är väldigt ojuste då det inte

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finns några riktiga bra lagar eller möjligheter då att följa upp då med lagliga medel, det

gör det väldigt svårt.

Har ni lärt er av några misstag när ni expanderat dit? Eventuella fallgropar att

tänka på om ni ska expandera till andra länder sedan?

Man måste ta det lite försiktigt när man ger sig in på de här marknaderna. Om man

bestämmer sig för att göra något i Sverige så kan man köra på ganska hårt och lägga in

massa pengar, man gör en plan och sedan går det mer eller mindre enligt plan A men i

Afrika så kan det bli helt fel och man kan verkligen stöta på saker som man inte alls

hade räknat med. Det kan vara personer som ställer till med problem, anställda. Det kan

vara myndigheter som plötsligt hittar på någon ny reglering så man får ta det lite lugnt.

Så man kan inte köra på för hårt om man inte har råd med det.

Har du några övriga synpunkter, framtidsutsikter eller om er verksamhet som kan

vara relevant för folk som forskar kring svenska företag i Afrika?

Det man märker när man är nere i Afrika är att i Tanzania finns det en del svenska

företag men jag har jobbat rätt mycket i Västafrika och andra länder också och svenska

företag är inte så närvarande om man jämför med till exempel franska, holländska och

brittiska kolonialländerna men jag tror faktiskt att svenska företag kan. Det märker man

ganska bra på att vi inte har just samma historia som dem andra länderna så då kanske

vi kan bli lite mer väl mottagna, just att vi är ganska lugna och förståndiga för det mesta

så tror jag att det skulle kunna gå bra för svenska företag. Men vi har samtidigt ganska

mycket att lära oss, vi är inte så många, vi är inte alls lika starka. De franska och

holländska företagen har mycket hjälp av sina gamla relationer med de här länderna och

vi har inte riktigt samma gamla stöd.