115.04.23

Wesford UniversityGeneva, 9th April 2015

Daniel Stanislaus MartelPrivate Sector Development and SME Development Policy Advisor

Ministry of Commerce and Industries (MoCI) of Afghanistan

Doing Business in Risky Areas

Doing Business in Risky AreasGeneva, 9th April 2015

Welcome

Business in Risky Areas?What is Business?

What are Risky Areas?

Why Business in Risky Areas?

How doing Business in Risky Areas?

215.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Doing Business in Risky AreasGeneva, 9th April 2015

Purpose of our Conference

After this conference, you will be able to… … identify needs in Risky Areas

… track opportunities in Risky Areas

… see Business Cases in Risky Areas

… assess Business Cases in Risky Areas

315.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Doing Business in Risky AreasGeneva, 9th April 2015

What is Business?

415.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Source: Elaborated by author based on Kemp (2006) and Binyet (2011)Life Time

Self

Actu

aliz

ation

Project of Life VisionO

bsta

cle

Opportunity

Thre

at

Obs

tacl

e

Your Solution

Your Solution

Your Solution

Your Solution

Doing Business in Risky AreasGeneva, 9th April 2015

What are Risky Areas?

515.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Source: U.S. Department of Foreign Affairs

Doing Business in Risky AreasGeneva, 9th April 2015

Why are there Risky Areas?

615.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Source: targetmap.com

Doing Business in Risky AreasGeneva, 9th April 2015

Where are the Risky Areas?

715.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Source: dnb-nederland.nl

Doing Business in Risky AreasGeneva, 9th April 2015

Business and Risky Areas

Author based on Talbot (2009), p.35 8

Ris

ks f

or

Bu

sin

ess

Planning

Individual and collective assets

Residual Risk

S + W O + T

Preparedness

Constructive doubt Monitoring Early Warning Responsive capacity

Contingency Planning and Risk Management

Response Recovery

Dis

ast

er

CorrectiveLearning

Risky Area

Threat Preparedness Crisis Management

Doing Business in Risky AreasGeneva, 9th April 2015

Risky Areas – Areas for Profit?

915.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Source: Elaborated by author

Helping the people in need

Altruistic Aid Agencies? Profit Seeking Businesses?

Profits from the pain of victims

Corrupting government

Big salaries and overheads

No real interestin helping

Risky Area

Both together

Enabling government

Adequate salaries efficient

Dedicated to helping

Doing Business in Risky AreasGeneva, 9th April 2015

Why doing Business in Risky Areas?

1015.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Source: Elaborated by authorMacro-Economic Development

Busi

ness

Acti

vitie

s

Economic

Growth

Incident

Chao

s DestructionIncapacitation

Ensure Survival

Stabilize

Risky Area

Enable

Recon-

struction

Recon-struct the

Risky AreaRe-

establishBasics

Relaunch

economy

Favour Economic Diversifi-

cation and

Speciali-zation

Economic

Growth

Doing Business in Risky AreasGeneva, 9th April 2015

Why Business in Risky Areas?

Source: Elaborated by author based on Cedarthree (2006) and interviews in Afghanistan 11

Opportunities for Business

Risk

for B

usin

ess

Hig

hLo

w

Specialized Generic

Phase Typical Challenges for Risky Area

Chaos

Stabilization

RemedyReconstruction

Economic Development

Economic Growth

Security

Logistics

Telecom

Shelter

Water/Food

Gvmt. AdvisingCompounds

ImpexMedia/Bizcom

Office ITInfrastructure Capdev Bizdev FDI Promo

Doing Business in Risky AreasGeneva, 9th April 2015

How doing Business in Risky Areas?

Source: Elaborated by author based on Cedarthree (2006) and interviews in Afghanistan 12

Opportunities for Business

Risk

for B

usin

ess

Hig

hLo

w

Specialized Generic

Phase TypicalBusiness Foci

Chaos

Stabilization

RemedyReconstruction

Economic Development

Economic Growth

Typical Strategies

Backing Aid Agencies

Ensuring framework

Ensuringtake off

Building Capabilities

Assisting rising higher

Becoming part of economy

Being ready

Move in

Adapt to contextShape programs Create opportunities

Recommended AttitudeBusiness Ethics

Doing Business in Risky AreasGeneva, 9th April 2015

How succeeding Business in Risky Areas?

Source: Elaborated by author based on Cedarthree (2006) and interviews in Afghanistan 13

Evolutionary Stage of targeted Risky Area

Mar

ket D

omin

ance

Chaos after Event

Stabilization for Help

RemedyReconstruction

Economic Development

Economic Growth

Number of

Entrants

Number of

Competitors

Expectable Benefit

Volume of Profit

Hig

hLo

w

Doing Business in Risky AreasGeneva, 9th April 2015

How succeeding Your Business in Risky Areas?

Source: Inspired by author from Binyet (2011) and Pinto (2010) 14

Plan Do Check Act

Business Plan

Business Model

Objectives Risk

Awareness

Security Logistics Contacts Partners Risk Mgmt. Business

Ethics

Due Diligence

TQM ControllingI

Impact Analysis

Customer Feedback

Reporting Root Cause

Analysis Procedural

updates Paradigm

change Change Mg.

Doing Business in Risky AreasGeneva, 9th April 2015

How doing Your Business in Risky Areas?

1515.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Plan

DoCheck

Act

Today

Tomorrow

Source: Author based on Binyet (2011) and Pinto (2010)

Strategic

Managem

entOperational

Management

Proj

ect/

Miss

ion

Man

agem

ent

Y O U

Doing Business in Risky AreasGeneva, 9th April 2015

Conclusions

Doing Business in Risky Areas means…Multiple needs

Many opportunities to respond to them

Few competitors

Early mover’s advantage

Opportunity to shape area

1615.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor

Doing Business in Risky AreasGeneva, 9th April 2015

“?”“!!”

Dr. Daniel Stanislaus MartelCTAP Advisor 1715.04.23

Doing Business in Risky AreasGeneva, 9th April 2015

It was great working with you!

Looking forward to next time!

Daniel Stanislaus Martel

Private Sector Development Policy AdvisorCapacity Developerdmartel@bluewin.ch

1815.04.23Dr. Daniel Stanislaus Martel

CTAP Advisor