case study week6

 The FEP-KLTSA Business Challenge provided young Kenyan entrepreneurs with an opportunity to showcase their innovation skills and entrepreneurial mindset. In analyzing the case study, the following questions emerge:


1. Why is culture important?


Culture plays a crucial role in shaping a company's personality, values, and beliefs. It involves an organization's social landscape, which is often built on shared cultural norms, traditions, and behaviors. An organization that has a strong culture will reflect a cohesive and productive workforce, a culture that can attract the right talent and create a pleasant work environment for the employees. Culture is important in instilling values and driving purpose which ultimately leads to an individual's job satisfaction, commitment, and retention within the firm.


2. Do you think Facebook overpaid for WhatsApp? Why?


Facebook's $19 billion acquisition of WhatsApp was seen by some as overpaying for the messaging app. However, it is essential to understand that the deal was not just about acquiring an app, but it was also about acquiring a network of users. Facebook was looking to expand its reach and WhatsApp's user base of over one billion users would be an excellent addition to Facebook's existing network audience. Additionally, Facebook CEO Mark Zuckerberg viewed WhatsApp's technology and business model as an asset to Facebook. Thus, the value proposition of acquiring the network of WhatsApp, its technology, and business model was worth the premium.


3. What are some of the problems bringing in new investors?


Bringing in new investors can be a challenging task for any company. Some of the problems that companies face while bringing in new investors include:


a) Dilution of ownership: Bringing in new investors may lead to a dilution of ownership for existing owners. This is because new investors typically receive equity in exchange for their investment, resulting in existing owners owning a smaller percentage of the company.


b) Loss of control: New investors may require a seat on the board of directors or a say in the company's decision-making process. This can alter the company's dynamics, and existing owners may lose control of the company.


c) Valuation: Valuation of the company can also be a significant problem while bringing in new investors. There may be differences in the valuation of the company between the existing owners and the potential investors. 


d) Legal requirements: Bringing in new investors may also require legal compliance, particularly pertaining to regulations on securities laws, public disclosure and regulation governance.


In conclusion, the FEP-KLTSA Business Challenge provides entrepreneurs with the opportunity to build organizational culture as a foundation for driving success and promoting job satisfaction. Additionally, while entrepreneurship grows, bringing new investors may pose challenges such as dilution of ownership. Thus, companies need to consider the potential opportunities and risks while scaling their businesses. 


References:


Cameron, K., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. John Wiley & Sons.


Deve, P. (2014). The global connectivity race and acquisition of WhatsApp by Facebook. EMAJ: Emerging Markets Journal, 4(3), 89-95.


Hill, C. W., Weaver, G. R., & Knoop, C. I. (2016). International business: competing in the global marketplace. McGraw-Hill Education.

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