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Company Overview

ePlanet Ventures, a technology fund based in Silicon Valley founded by Asad Jamal. Asad is
a Pakistani withBachelor`s degree from the London School of Economics who spent most of
his life overseas. He successfullydeveloped business in the advertising, media,
communications and wireless, computing software, consumer internet, and other market
spaces. As a venture capitalist he always look for new horizons.
Objective
To be one of the first venture capital entrants enter Pakistan with its largely untapped market
(the growth of middle class).
Problem
Doubt that Pakistan condition with its mere 60 years old will be sustainable for investor despite
of their growingmiddle class.
Lesson Learned

Fact#1 Leadership
President Musharaf`s policies appeared to invigorate Pakistan`s economy and stimulate
entrepreneurship withinthe country regardless of uncertain political future.
Lesson Learned
Country`s leader vision as dealmaker has to put as a consideration before entering the
marketLeadership is a vision to build hope, trust and optimism through opportunities for the
future (Kouzes and Posner,2002).
Other Country Experience
Taken from Dubai: A Star in The East by Balakrishnan (2008), it was His Highness
Sheikh Mohammed BinRashid Al Maktoum, UAE Vice President and Prime
Minister and Ruler of Dubai who has transformed Dubaiinto the number one investor
destination in its region. Through his visionary leadership made the policy easier and be trusted
for investors to invest in infrastructure and tourism
.

Fact#2 GDP
Pakistan, the 6th
most populated country in the world with GDP growth around 7% per year since
2002, hadlarge market, cost-base and talent, and family connections dominance.
Lesson Learned

Higher GDP means higher buying power


High-populated country is an emerging market (Kertajaya, 2002)

Other Country Experience


Taken from Markplus Conference 2011, since 2010, Indonesia has becoming the most
attractive destination for foreign investor because of its high rate consumption and huge
resources. It can be seen from GDP annualincrement stability followed by the increasing of
FDI in end of 2011 (foreign direct investment) i.e. 11.5%(www.bkpm.co.id). Thus Fontera
plans to invest in new Indonesian plant, Honam P builds cement factory for 45trillion and China
with South Korea to invest in straight bridge.
Fact#3 Regulation
According to the World Bank’s “Doing business 2008” report, the country ranked highest in
South Asia incategories such as “Starting a Business” and “Protecting Investors” because of its
recent policy trends of liberalization and deregulation (Private Equity and Venture Capital
Funds).
Lesson Learned
Good law enforcement attracts investor To attract FDI, a country needs resources, law
enforcement and infrastructure (Salvatore, 2004).
Other Country Experience
Taken from Hermawan on Marketing by Kertajaya (2002), after its revolution, in 1970 China
allowed investor especially multinational company to start their business by ensuring their
safety and promising country politicsand economy sustainability. Thus made China number
one for FDI recipients in the world. A company such asSK-II built and developed its factory in
China.
Fact#4 Culture
The culture was still one of family-owned businesses with limited professional management
that made trustedmanagement was hard to come by in Pakistan as the concept of equity and
options were new in Pakistan.
Lesson Learned
New concept needs research, patient and collaborate with local business peopleTo introduce
new product and concept to the market, the need of local knowledge and influence are needed
togain people acceptance (Drummond, Ensor and Ashford, 2008).
Other Country Experience
Taken from Hermawan on Marketing by Kertajaya (2002), Wal-Mart failed its concept in
Indonesia in 1998 ashypermarket that offered value of low price with product varieties. They
failed to understand the local behavior,impatient and reluctant to adapt with the business
system. Thus Carrefour that came after Wal-Mart was gainsuccessful time with their
understanding of Indonesian system.
Fact#5 Labor
Pakistan’s talent pool was generally 30-40% cheaper than India and China despite of
expensive price of realestate, unreliable supply of electricity, water and other utilities.
Lesson Learned
Cheap labor is huge resources
To attract FDI, a country needs resources, law enforcement and infrastructure (Salvatore,
2004).
Other Country Experience
Taken from Chindia by Engardio (2007), many high-tech and manufacturing multinational
companies chose
to build their factory because of the availability of labor. People are low skill so that they nee
d a job despite of getting low payment. Thus company will save lots of cost. In return, the
investment drives China growth.
Fact#6 Costumer Relationship
Besides emerging of middle class in Pakistan, Ayuz ul Haque, Managing Director of ePlanet
Ventures said
“what we look for in a company in a country like Pakistan is whether the business can survive
and sustain itself in the local market”.
Lesson Learned
Local middle class consumptionThe middle class at any country is at the forefront of
consumption and leads important business trends(Drummond, Ensor and Ashford, 2008).
Other Country Experience
Taken from Markplus Conference 2011, many high tech foreign companies invest and launch
their products inIndonesia because of its middle class high consumption. Steven Koeberle from
World Bank said that 7
million people a year is the expanding rate of emerging middle class. Therefore Honda put In
donesia as their first priority for their product and their innovation project in Indonesia based
on people preferences e.g. Scoopy.
Fact#7 Knowledge Resources
“Friends”, a sitcom created by Align technologies, was a training tool for employees with
Master`s degrees andwho were fluent in English.
Lesson Learned
Knowledge resourcesInvestment in virtual learning software is one of the effective ways to
develop knowledge management in thecompany regardless of the cost (Collison and Parcel,
2011).
Other Company Experience
Based on Fezi experiences at Hilton Bandung, there was hotel software called “Hilton
University”. The programhas various subjects from leadership, business and language. It
created for different levels. The software isinstalled on every computer in cafeteria. The
language program has become the most famous program for employees as it accessible at
home. It helps the employees to practice both of writing and speaking.
Fact#8 Promotion
For access to markets, YouTube and Scrybe as promotion channel.
Lesson Learned
Internet media as effective promotion tool
Both of above the line and below the line communication are being used to either build brand
awareness or drivesales (Gauri and Cateora, 2006).
Other Company Experience
Taken from YouTube and Video Marketing by Jarboe (2009), Tom Dickson, Blendtec founder,
throws suchitems as marbles, running shoes, glow sticks, golf balls and iPhones into his
company’s blenders and flips the onswitch. People love these crazy videos so much that
Blendtec’s YouTube channel has more than 200,000subscribers. It resulted to the increasing of
blentec`s blender products.
Fact#9 Human Capital
In technology space alone, Pakistan universities were producing upwards of 20,000 English-
speaking Conventschools instilled neutral English accents, enabling better communication with
their Western counterparts.
Lesson Learned
Human resources developmentIn business world, the readiness of human capital starts with
good communication (Mullins, 2007).
Other Company Experience
Based on Fezi experiences at Hotel Mulia, the company provided English teachers for
employees. The coursesare selected specializing in Hotel industries. For managerial level, the
company collaborated with The BritishInstitute to create modules that focus on business skills
such as negotiation, contract and presentation.
Fact#10 Organization
OPEN (Organization for Pakistani Entrepreneurs) collaborate with MIT Entrepreneurship
Center held theworkshops, seminars and business competition in order to educate Pakistani-
based entrepreneurs.
Lesson Learned
Activities to encourage entrepreneurship along with its developmentThe collaboration of
industries and academic institutions help to generate and stimulate new start up businessalong
with to facilitate networking and opportunities to potential investor (Bessant and Tidd, 2011).
Other Company Experience
Taken from Innovation and Entrepreneurship by Bessant and Tidd (2011), MIT and Standford
University hadcollaboration to build the academic entrepreneurship. They shared research
result along with programdevelopment. They become a bridge to both of entrepreneur and
investor.
Analysis
Assad as many other venture capitalists are keen to provide funding for a venture with a proven
track record andstrong business plan. Bessant and Tidd (2011) argued that they are typically
often requiring some equity or management involvement in return. Therefore some of them are
prepared to go public to fund further growth.
Bessant and Tidd (2011) stated that studies consistently find that the age of company,
educational level of founders, number of founders and starting capital all have a positive effect
on venture success. Therefore theAuthors analyze that the opportunity for ePlanet to expand
their business and invest in Pakistan is huge. Thereare some considerations that ,the case given
such as;
1.The emerging middle class in Pakistan is potentially profitable.Competition: Middle class is
attractive to both existing and new players, the competition will be fierce,and therefore ePlanet
need to define their direct competitor and differentiate their offeringCustomer : Middle class
segment are too big as a target segments, ePlanet need to define a morespecific segment and
adapt their offering
2.Find a business model suited to the them for Pakistan (best fit in)Production and operation:
improve capabilities in servicing middle classMarketing and sales: optimizing offline channels
and online channelsPost sales operation: build long-term relationship to increase buying power
and build loyalty
3.Financial resourcesVenture assets and access to funding e.g. IPO
4.ManagementRecruit people with industry related market or sector experience.Size of the
founding team has important role to bring diverse expertise to the ventures and help for
betterdecision-making.
Recommendation
Corporate Entrepreneurship
For most companies include ePlanet Ventures that its market already established, a change is
costly. Thiscondition make ePlanet limit its innovation to incremental one. To avoid this
condition, ePlanet shall:a.
Developing internal knowledge
Create external network in Pakistan, such as make ventures, alliance or partnership with
existing local company and supplier that will related to ePlanet Ventures business portfolio b.
Have the appropriate resources, which covered:
Decision Making; Because Pakistan still lack of top management skills, Asad Jamal shoul hire
foreigner in the beginning of his start up business in Pakistan.
Empowered Teams; Employees who work in the company shall empowered and encouraged
to improve their knowledge and skills to both of technical and management skills, especially
for local employees. It is very important to the growth of Pakistani skills for the future in order
to support its sustainability in human capital aspect of local people. Besides, it will also help
the government to produce domestic professional labor.
Skills and capabilities; In the beginning of business in Pakistan, Asad Jamal shall divide the
employee in 2 groups. First, professional management worker who come from foreigner and
local people. Second, technical expertise from local people. While running the business, local
people in management side is ready to become professional, thus they ready to replace the
foreigner accordingly.

Risk Tolerance; Any business always followed by risk. Although many uncertainty from
politics, organization, culture, and human capital in Pakistan, there are some facts that GDP,
GNI growth, number of human capital in IT, number of company in IT would minimize the
uncertainty level. Thus Asad Jamal shall open the new venture in Pakistan.
Asad Jamal must understand and analyze his existing strong capability and strategic
assets
To make new venture in Pakistan: the one that related to Pakistan condition and also to help
improving the Pakistan condition.

Then Asad Jamal should analyze of the new business in Pakistan through Corporate Venturing
that is one of the Corporate Enterpreneurship types. Corporate Venturing models are:

a. Internal corporate venturing


b. Cooperative corporate venturing
c.External corporate venturing
From the table above, it is clearly said that Venturing Company as the best choice in terms of
faster transformation and flexible environment in order to create or develop new innovation.
The success history came from South Korea-based conglomerate Samsung. It transformed
from an "infotainment" company to a "lifecare" one based on green technology and
healthcare. They decided to make the transformation as they believe that "lifecare" one based
on green technology and healthcare has emerging market. However, this transformation is big
strategic shift and arrived too late to dominate the business portfolio.
Fortunately, there is a way called Corporate Venturing. Samsung created Samsung Venture
Investment Corporation which bring many investors from different business units in the
group, such as Samsung Electronics.