1. Discuss the Socio-economic situation of Mozambique?

Population: 24 million
GDP Per capita: $583/person
Global competitiveness Index: 138th of 144 countries
Rated one of the poorest countries post-independence.
Despite good growth, in 2008 half of the population is below poverty line and half of countrys
annual budget came from foreign assistance.
Since 2008, consistent annual growth of 7% and one of worlds fastest growing GDP, but still very
poor.
Annual growth was from natural resource extraction by foreign org and resources were exported
and had no much benefit to normal Mozambican.
Min legal salary: 78$/month.

2. What is the business model of an MNC brewery? Can this model be extended to Mozambique?
Raw material would be mainly Barley.
Typical MNC breweries will be highly centralized with best in class supply chain.
Compete in market with focused strategy.

No, this model cannot be extended to Mozambique. Procuring Barley is tough. Cassava is drought
resistant, starch rich, biggest crop in Africa but the least commercialized. Due to its perishable nature,
centralized processing wouldnt work here. Processing should happen closer to the farmer.

3. What are the problems in Mozambique?

Unemployment/Poverty/low income.
Economy not immune to Inflation
Since 2008, consistent annual growth of 7% and one of worlds fastest growing GDP, but still very
poor.
Annual growth was from natural resource extraction by foreign org and resources were exported
and had no much benefit to normal Mozambican.
Cassava is highly labor intensive post-harvest due to its rapid perishability. Farmers are
dispersed. Its the largest crop but least commercialized.

4. How did SABMILLER modify its business model in Mozambique? analyze the elements of the business
model (Customer Value Proposition, Cost, operations, Profit formula) in Mozambique?

SABMiller, one of the world's largest brewer started brewing a local beer in
Mozambique.
This not only got a foot hold in one of Africas untapped home brew markets and
also promises economic gain to local formers.
Developed a business model that represents a radical departure from the firm's
traditional approach to beer production.
Disrupted its established processes of global supply chains and heavily
centralized processes and innovated to produce a cassava-based beer to serve
the low-income consumers who comprise the most of African economic pyramid.
The manufacturing process begins outside of the brewery and in the vicinity of
the scattered and rural cassava farming plots.
Customer Value Proposition: Not a luxury but an affordable beer as the people are price
sensitive due to less disposable income.
Cost: Making beer on commercial scales with local crops has broad benefit. Pricing at
sub-inflation rate.
Operation: Partnered with DATCO for their mobile processing unit which travels to the
cassava growing regions to process the raw Cassava near the farmers preserving its
starch.
Setting up local subsidiary (CDM) for the production of beer.
Profit formula: Develop all stakeholders in value chain who are in turn the customers of
Impala beer.

5. perform a stakeholder analysis in Mozambique?

This project is part of SAP Millers Farming better future agriculture program across
Africa.
Local farmers of Cassava
Customers of Impala beer
DATCO
SABMiller subsidy CDC
IFDC
ORAM
Mozambique government
AECF (Africa Enterprise Challenge Fund)
SABMiller employees