CAUSE Transformation MOBICOM TrainingEntrepreneurial stimulation MentoringEnterprise development Human capital development Financial freedom.

CAUSE

Transformation

MOBICOM

Training Entrepreneurial stimulation

Mentoring Enterprise development

Human capital development

Financial freedom

CommercialMarket

MOBICOM Social Service Organization

TargetedBeneficiaries

Staple FoodAir timeElectricityFuneral CoverLife InsuranceDebt repair

WCDTL (Western Cape Diverse Traditional Leaders)SANCO (South African National Civics Organization)Various Peninsula Backyarder organizationsVarious smaller CBO’s/NGO’s

Financial flow

Product & service flow

Synergies

Social Enterprise support model

Why is this model needed

The Community Retail Model

TertiaryCooperative

SecondaryCooperatives per Area

Various CommunityCooperatives

Groupof 50 consumers

Community Champion/ Agent

Training , Gen management & logistics Financial Services Marketing and Media

Community Champion/ Agent

Community Champion/ Agent

Community Champion/ Agent

Community Champion/ Agent

Community Champion/ Agent

PrimaryCooperativesPer Structure

Groupof 50 consumers

Groupof 50 consumers Group

of 50 consumers

Groupof 50 consumers

Groupof 50 consumers

Consist of between 20 to 25 members Consist of between 20 to 25 members Consist of between 20 to 25 members

The Community Retail Model

Groupof 50 consumers

Community Champion/ Agent

Community Champion/ Agent

PrimaryCooperativesPer Structure

Groupof 50 consumers

Consist of between 20 to 25 members

Each consumer cooperative includes:• One transport operator• One locally owned spaza shop• Two members trained as admin managers• One member trained as sales manager• One member trained as financial manager• All members/agent trained in SellSellSell©

The Community Retail Model

Objective is to create sustainable employment MONEY

Transporter R 2 of every R100 sold

Agent/Member of coop R8.4 for every R100 sold

Sales of agent/member R14 800

R 1243

Local Spaza R 1.5 of every R100 sold

Training Schedule

How do we do things?

Sell02

Orientation

Sell01

How much money can I

make and how?

Sell03

What must I tell my consumers

Sell04

How does my business work?

Sell05

Managing moola

Sell06

Evaluation Sell07

Graduation

Sell08

CAUSE: SellSellSell Program©

Profit profile of pilot Cooperative (Phase 1)

Why building a Team Culture in Cooperatives

Better results Strategic focus

People do their best

Synergistic collaboration

Better processes High involvement

Idea sharing

Flexibility

Better environment Inspiring and energizing

Less conflicts

Employee satisfaction

10 Action Areas1. Provide an inspiring vision

2. Define shared values

3. Set stretch goals

4. Develop team leaders

5. Synergize complementary skills

6. Celebrate diversity

7. Encourage team activities

8. Empower teams

9. Provide coaching

10. Reward collective achievements

10 Action Areas and Key Benefits

Benefits

More information at 1000ventures.com: “Team Culture”© Vadim Kotelnikov

Profile of Phase 2

• Area of deployment: Klipfontein/ False Bay (spatial planning area)

• Starting in areas: Gugulethu and New Cross Roads• More than 119 600 households in Klipfontein/False Bay spatial planning area • 30% of households is Xhosa speaking(36 000)• 68% have between 3 to 8 people in the household• 19.94% unemployment• 31% is between age group 18 – 34 years• 23% is between 35 – 54 years• 49 aged for every 100 youth• 52.6% females• Revenue potential R 10 512 000 per month• Multiplier effect to local economy in Klipfontein area will be R 1 576 800 • Local value distribution to Agents equal R 883 000• With 50% conversion of consumers, at least 250 new sustainable employment opportunities

Value creating ecosystem • Primary consumer cooperatives• Secondary cooperative structures for value add services such as logistics, marketing and financial matters respectively• Local owned shops network• Disruptive mobile and ICT technologies • Interactive media platform across all mediums• Institutional partners

Gugulethu

Support – Socio Entrepreneurial Programs• Job creation• Sustainable Income levels• Food security and availability• Smart retail education•Life skill development•Asset building•Community Integration

• Order placement• Service delivery issues• Product line enquiries• Community line• Fraud line• Counseling line

Suppliers ChannelPartners

Order Management

Marketing Sales

Support

ERM

Supply ChainManagement

Sales RelationshipManagement

Product LineManagement Customer

Radio/ SMS/

Internet

Spazas/ Trade house

Callcentre

Networking Activators

Community Agent

CRM without compromise• Acquiring customers• Keeping customers• Growing your customers• Gaining customer insight• Interacting with your customer across all touch points• Building lasting relationships with your customer• Delivering value to your customer• Achieving sustainable competitive advantage• Growing your business

Sales driven by• Shop visits• Over the phone orders• Buying Schedule with Agents• “Smart retailing” house visits• Community web portals

CRM philosophy

CRM as business strategy, address four imperatives:• ensure over 80% of recurring spend •generating new growth;• attaining operational excellence;• enhancing competitive agility

• Increase wallet share;• Deploy new channels;• Penetrate underserved segments;• Reach out to new customer;• Optimize customer touch points• Enter entirely new markets

Suppliers ChannelPartners

Order Management

Marketing Sales

Support

ERM

Supply ChainManagement

Sales RelationshipManagement

Product LineManagement Customer

Radio/ SMS/

Internet

Spazas/ Trade house

Callcentre

Networking Activators

Community Agents

• Not only price & product• Well design sales channels• Service process chain integration

• Flexibility, collaboration, openness, speed integral part of corporate culture• Turning innovation into customer value• By capitalizing on customer insight, organizations can:

• better and quicker identify and prioritize sales opportunities• discern and leverage sources of differentiation• spur product and service innovation• strengthen relationships with customers and partners

• Eco-systems focus on value networks and not value chains

The Gugulethu Retail ModelOne locally owned retail shop and micro distribution centre forMontana, MonteVideo and Section 3 Cooperatives

Location: 48 Klipfontein Road next to world famous Mizoli’s braai houseOwner: Tatta Zoro Current Turnover per month:Years in community:Quantity of households served per month: 5000Stock turn per month for households in area: R 1 250 000

THE INDUSTRIAL ENTERPRISE NEW KNOWLEDGE-BASED ENTERPRISE

Corporate Attributes Corporate Attributes

Economies of scale Smaller business units

Standardization of work Customization of work

Standardization of workforce Flexible, skill based workforce

Financial capital as scarce resource Human capital as scarce resource

Corporate HQ as operational controller HQ as advisor & core competency guardian

Hierarchical pyramid structure Flat or networked structure

Employees seen as expense Employees seen as investment

Internally focused top-down governance Internal & external distributed governance

Individualistic orientation Team orientation

Information based on "need to know" Open & distributed information system

Vertical decision making Distributed decision making

Emphasis on stability Emphasis on change

Emphasis on vertical leadership Emphasis on empowered self-leadership

What is different?

Organizational InnovationThe Wheel of Business Evolution8. Performance

Measures• Political• Economic• Social• Technological

Adapted from: “Managing Complexity”, Robin Wood

• Strategic success factors

• Mission critical variables

1. Business Environment

• Competitive landscapes and dynamics

• Games, roles & players

2. Business Ecosystem

3. BusinessDesign

• Business model• Business processes

4. LeadershipStyle

• Strategic leadership

• Organizational development

5. Organizational Values

• Core values• Rules of the internal game

6. Management Process

• Direction• Innovation & operations• Learning & design

7. Knowledge Management Systems

• Knowledge-sharing culture• Interpretive frameworks• Information systems

:”

Funding model of Mobicom

Internal Funds

Institutional/Venture Cap

CSI/ Enterprise Dev

Donor/ Grant

Informal economy

MOBICOM DEVELOPMENT FUND

RetailPortfolio

TransportPortfolio

Training/ Life skillsPortfolio

Trust Account

Social InvestmentInstruments

Stokvel bond/ prefs

Social Retail bonds

Social Transport bonds

Masakhane social shares

R 1 200 000 USD 100 000

• Pilot ending 30 Jun 2011• 250 jobs • 10 consumer primary cooperatives• 6 secondary cooperatives• 1 tertiary cooperative• 18 000 individuals households

• Financial results/per month• R 723 750 turnover per primary cooperative• R 10 280 net profit per primary cooperative• R 1 226 Member benefit in every cooperative

• Financial results/per year/Cooperative• Sales/Share R 33 577 (R 13 386)• Distribution/share R 296.06 (R 2.27)• Net asset value/share R 3 700 (R 1172)• Gross profit margin 11%• Net profit before loan repayment 2.93%()Financial performance of major listed Company

• Social effect of the model• Sustainable jobs created 250• Sustainable jobs created for women 225• Cash re-circulated per month R 6 715 353• Value created in community per month R 737 303• Poverty alleviation effect per month R 433 824 (59%)

•Partners to this project• Metro Cash and Carry (Vuyani Khayelitsha)• Old Mutual South Africa: Masisizane Fund• National Youth Development Agency• National Community Radio Forum• Distell Winery• British American Tobacco• South African Breweries• Kentucky Fried Chicken Franchise Stores in Gugulethu• African Unity Insurance• Cape Town TV (Community TV)