Cementing a place in Africa : PPC’s internationalisation drive

Abstract

LEARNING OUTCOMES : The study enables students to critique the internationalisation strategy of an African business including elements of macroeconomic analysis, company fit with jurisdictions, non-market strategies and mode of entry. CASE OVERVIEW/SYNOPSIS : Roland van Wijnen was the chief executive officer of Pretoria Portland Cement Company Limited (PPC), a 130-year-old cement maker based in South Africa. He joined after the business had embarked on an international expansion strategy that had taken the business to countries of Rwanda, the Democratic Republic of the Congo and Ethiopia in a matter of years. This expansion caused the deflation of the Johannesburg-listed company’s share price. The company failed to appreciate a number of success factors in each jurisdiction. The challenges included cultural misalignments, macroeconomic analysis and mode of market entry. The case dilemma involved the choices that van Wijnen faced in re-evaluating the international footprint of the business. COMPLEXITY ACADEMIC LEVEL : Undergraduate or postgraduate level. SUPPLEMENTARY MATERIAL : Teaching notes are available for educators only. SUBJECT CODE : CSS 5: International business.