News

Why Algeria?

Slowly but surely the Algerian market is opening up to international trade after recovering from decolonisation and the economic crises of the 90s. 

New policies being into place in Algeria include initiating negotiations with not only the United States but also with its main partners in the European Union, international organisations and its traditional partners in Africa and Arab countries.

Worthy of special attention are agreements signed in recent years of which we can highlight the EU-Algeria Association Agreement signed in Valencia on 22nd April 2002 which came into effect on 1st September 2005 and was renegotiated in August 2012. On 1st September 2012 a sixth round of duty reductions came into force.

With a total area of 2,400 Km2, nearly 1000 Km of coastline on the Mediterranean and just under 40 million inhabitants, Algeria is the largest of the Maghreb countries (Mauritania, Morocco, Algeria, and Tunisia). This makes it the second largest country in Africa and tenth in the world. However, one should take into account that the 80% consists of the Saharan desert.

55% of the population lives in the North. The main cities along the Northern coast or plains are Algiers, Oran, Constantine and Annaba.

Algerian law is a mixture of Islamic and French legislations. The official language is modern Arabic and this is used in public services, public cultural and educational organisations. However, most Algerians speak French and it is the main language of business and economics.

Weekends are Thursday and Friday, so the working week is from Saturday to Wednesday.

In economic terms, there are four main points that stand out: macro-economical stability; economic activity concentrated on fossil fuels; industrial inefficiency and very high unemployment.

In 2013 Algerian GDP grew by 3’05% of which total imports were € 40,000 m of which about 8 % from Spain.

As far as trade with Algeria is concerned, the main way to make an effective and lasting approach to the market is to set up an Algerian subsidiary under local laws. This branch will then deal with the local network of distributors and wholesalers. These will be spread all over the country and very rarely will they have agreements of exclusivity. It is very unusual for the subsidiary to deal directly with business partners except in the case of very large corporations.

Currently the industries which are showing most growth and offering the best opportunities are:

  • Energy
  • Construction
  • Capital goods
  • Environment
  • Transport
  • Electronics and TIC
  • Food
  • Electrical Goods

International Team Consulting is a consultancy with many year of experience in overseas markets and trade. Our team of professionals and well-honed tools will pave your way into the Algerian market and help in finding the ideal distribution channel for you. For further information, please do not hesitate to contact us.

Cristina Danon
Consultant at International Team Consulting

Paying Salesmen

Retribución de vendedores Salvador Devant Consultoria estrategia comercial.  300x300

How should salesmen be paid? OTE, salary, salary plus OTE.. What should your policies be regarding sales force pay?

There are answers to suit all tastes to these questions. However, in my opinion if you want a pro-active well organised sales force you need to go back to basic principles. That is, having special regard for sales department pay within the general pay structure in the company.

As an example we will be using a “typical” organisation in which clear divisions can be made between departments and responsibilities within an organisation with a clearly defined hierarchy. It is self-evident to all that each level has perceivable responsibilities and each brings a different discernible contribution to the company.

A fair payment structure will reward each employee according to his relative contribution to firm and that this be dependent on his place within the hierarchy, his competencies, and the degree of responsibility/autonomy in the discharge of his post.

For a moment, we will step back from specifically sales related pay to look at that of management and administration, logistics and accounting. In these departments, the pay lines are more clearly drawn based on function and rank, seniority, qualifications, responsibilities, etc. Thus, however hard and well an employee in these categories works he will never earn more than his superiors, even sporadically.

Going back to sales, if a major percentage of pay is purely based commissions on sales,  a very common practice, we are feeding toxic elements that can harm our organisation such as:

  • The salesman gets the message that he is only paid to sell. Please see my earlier article: “Salesman, what am I  paying you for?”.
  • We are encouraging the culture of the “quick buck” and lowest acceptable effort.
  • The salesman does not get paid for all the endeavour he may put into achieving a certain level of sales which may cause frustration.
  • We risk undermining the balance within the sales team.
  • We may create “sales superstars” who may consider themselves above the rules and hierarchy.
  • Generate job insecurity which will result in a high turnover.

Thus, however much a salesman brings in in orders will he ever earn more than his superiors. For all those who still believe that a salesman who sells more should earn more. I would just like to say that the only ones entitled to earn more if the company makes more are the shareholders. It is, after all, they who have risked their money and, very often personal assets. All the rest are employees.

So, what do I suggest?

It involves establishing income brackets based on rank, degree of seniority and responsibility to which we will add a percentage to reward both results and endeavour.

Evidently, this is not the only OTE system to remunerate your sales team, there are those based purely on salary, others exclusively on commission and the mixed approach that I propose. Each of them should be adjusted to the commercial needs of individual firms, and varying market conditions.

See you soon and may your sales be good!

Salvador Devant
Consultant at International Team Consulting

The Water Industry in Morocco

Over the coming years, the Moroccan Government will be making concerted efforts to improve the chronic deficiencies of the water supply: starting with the shortage of stock and its quality; very uneven distribution from region to region; defective sanitation… This will require large investments to improve distribution and quantity and should offer many opportunities for Catalan businesses which are very well thought of in the country. 

Demand for drinking water has increased over the last few years and is eDistribución Sector Agua Marruecos. International Team ConsultingBIN 300x202xpected to keep growing for the foreseeable future. The main factors boosting this rise are: population growth; developing urbanisation; growing demand from the countryside, agriculture and the private sector (mainly industry and tourism). 

Forecasts for the industry are very bright. There are a number of national plans in place to improve both the supply and sanitation which will mean heavy investment over the coming years. The National Water Strategy (SNE in French initials) includes 50.000 million dirhams (€ 4,500 approx) financing up to 2020. Whilst the National Office for Electricity and Drinking Water (ONEE) plans to invest € 1,638 million for drinking water and € 560 million for sanitation. There are a number of other programmes and projects for the sector, all of which have received considerable backing and finance from international bodies. 

Industry Classification 

Depending on the way the water is treated and the use to which it will be put, the following classifications are used: 

Potable Water Purification – Making water suitable for human consumption. 

Desalination – Removing salt from seawater. 

Waste Water Treatment – Treating (chemically, physically or biologically) waste water so that it can be re-used in industry or agriculture. 

Storage – Water tends to be a scarce good of uncertain supply relying on the rainy seasons that vary vastly over the year. Evening out supply means storing the water, usually in reservoirs, to guarantee year-long stocks. 

Industrial Water – Water treatment for industrial uses. 

Re-cycling – Water treated for re-use. 

Water Resources

Morocco, in common with all the other countries in the region, is suffering from a crisis in water supply, increasing demand on dwindling supplies. Factors that put pressure on the situation and demand for water are: development of private sector irrigation; increased tourism; industrial development and population growth. What elements are influencing this increase in demand? 

General Aspects Affecting Demand: 

  • Demographic Pressures and Urbanisation: Developing nations find that increasing populations bring ever more pressure on water supplies. Urbanisation was 59’2% in 2013 and is forecast to reach 68’5% in 2050. This will result in a considerably increased demand for drinking water in urban areas.
  • Increasing Demand in Rural Areas: Access to drinking water in rural areas is one of the Moroccan Government’s top priorities with coverage at 92% currently a total of 12 million people. 
  • Strong Demand from the Private Sector: With the aim of developing Moroccan industrial fabric and fostering the economic and social progress, the Emergence Plan was put in motion in 2006. Priority sectors include: off-shoring; automotive; aeronautic; electronic; agribusiness, fishing; textile and tourism industries. 
  • Growing Requirements from Agriculture: 2008 saw the presentation of the Plan Maroc Vert (Green Morocco Plan) to revitalise agriculturein the country. In order to be able to carry out this project, water policies have to be reformed by:
    • Driving efforts to find new resources
    • Increasing irrigated lands
    • Delegating control of water for irrigation
    • Pricing incentives
    • Introduction of modern irrigation models
    • Using water for high value-added crops 

Location of Principal Markets Influencing the Factors that Affect Demand:

As mentioned earlier, demand for water can be subdivided using four criteria:

  • Tourism: This can be broken down into six separate tourist destinations: Northern Coastal Zone (from Saïda to Asilah); Central Coast; Southern Coast; Marrakech; Fez and Meknes; mountain and desert areas. 
  • Population Density: the majority of water consumption is concentrated in the main cities. Whilst the capital is Rabat, Casablanca is home to the majority of the population and industry. 
  • Industrial Zones: There are a total of 61 Industrial Zones (3,144 hectares) dotted about Morocco. The majority of which are to be found close to major cities and towns. 
  • Agricultural Areas: As mentioned previously, and as set out in the Plan Maroc Vert, 16 agricultural areas will benefit from investments projected up to 2020. 

Distribution Channels and Industry Events.

There are a number of distributors that handle water related products on the Moroccan market, be these water utilities, sanitation treatment, irrigating equipment.. and will undoubtedly be of great help for foreign businesses seeking to enter the market with their products or services. The principal distributors tend to meet at the Eau Expo & Forum (www.eauexpo.com) and at Pollutec (www.pollutec-maroc.com) two fairs that are held annually in Casablanca.

International Team Consulting has had considerable experience as a consultancy in overseas markets and can help you to sell your products in the Moroccan market.

For further information, please contact:

Cristina Danon
Partner Consultant at International Team Consulting
cdanon@int-team.com

(Source for the article: ICEX Marruecos)

The Governing Board of the D.O Ribeiro will be Present at Alimentària in Barcelona

Alimentària will be held in Barcelona from 31st March till 4th April. The Governing Board will be there to represent the cellars that form the D.O. Ribeiro. 

Over the last few months, International Team ConsultingRibeiro Alimentaria 2014 300x180 first identified all those distributors of Spanish wines, both domestic and from overseas, who would be exhibiting at or visiting the Fair. We then contacted them one by one to inform them of the work carried out by the Board, the participating cellars, and then scheduled visits to wine tastings at the stand.

We have had a very positive response from a large number of firms, many of whom have indicated that they would be visiting the D.O.’s stand to learn more about the Galician wines, their quality and grapes varieties.

Alimentària is the meeting point in Barcelona for Spanish, Catalan and international companies involved in the Food & Beverage Industries all of whom looking to open up new markets and explore opportunities for new business.

International Team Consulting will ensure that your presence at a Fair will be a success. In addition to the purely administrative tasks of exhibiting, we will carry out all the work involved in the preparation including finding those clients of potential interest and ensuring that they effectively visit your stand, oversee promotional material and its use, and guarantee an effective post-fair follow-up.

For further information on maximising the effectiveness of your participation in fairs, please contact:

Julia Farre
Partner consultant at International Team Consulting
jfarre@int-team.com