International management in Morocco, Tunisia, and France in IT/ Tech Companies

                  Introduction

In retrospect, in its present state, it is unmistakable that the world is very different from what it was centuries ago. In terrific rapidity, the culture and systems in different states are quickly being digitized. No longer are people contented with slow manual systems and wearisome human labor. In a revolutionary way, technology is changing the world. In light of these pleasing developments, to capture the loyalty of more customers and retain their allegiance, most companies are adopting the latest technology in their operations; in fact, any company that ignores these changes suffers colossal losses. Nations, intent on hosting successful companies and thereby boosting their economies, are seeking to provide the most conducive environment for the establishment of these business ventures. Nevertheless, depending on their different capabilities, each state does its best. For a fuller understanding of the developments in these countries, France, Morocco, and Tunisia shall be explored in detail. In their exploration, their strengths, weaknesses, and how they respond to both shall be included.

France

Strengths

Being a developed country, France undoubtedly has sufficient capital to carry out almost all technological developments. Accordingly, a recent New York Times article revealed an annual average GDP growth of 1.3% in the year 2019. With this growth, the country has adequate funds to invest in any project that may further boost its economy. Besides the growth in GDP, when gauged by output per hour worked, France prides in the most productive economy, even though, when compared to its peers over the decade, it has lagged. Since 2017, also, it has initiated reforms that have supported domestic businesses and improved the world’s perception of it as a suitable destination for investment. Among the reforms are changes in the tax systems and labor market—for instance, the lessening of corporate tax from 33% in 2017 to 25% by 2022, and the capping of dismissal costs. Among others, these are some of the strengths of France—strengths which, if fully utilized, may incredibly improve its economy.

Weaknesses

Notwithstanding the strengths above, both in economic and political terms, just like any other state, France has its fair share of weaknesses. Despite the considerable potential to become a technological hub, over the years, it has made no meaningful investments to that end. Focusing on other projects, it has permitted its peers to take long strides towards technological excellence. Furthermore, shamefully, in a country that holds vast economic potential, citizens cherish a risk-free lifestyle. More to the point, afraid of risks, they prefer not plunging into entrepreneurial ventures. Furthermore, to make matters worse, to rub salt into the wound, the county itself has high social taxes that prohibit entrepreneurship. For instance, just to illustrate, Karim Oumnia, aged 49, founder of Digistole—a company which makes temperature-regulated ‘smart shoe,’ is considering a departure. Why? The social taxes are so high that his employee costs are twice as they would be if he were based in the United States of America. To mention but a few, these are some of the weaknesses of France.

Response to the Strengths

The Richard Branson of France, Mr. Xavier Niel, aged 49, is the brainchild of a revolutionary tech hub called Station F.  Known for his technological prowess and colossal fortune, Mr. Niel intends to match, and even surpass, the glory of Britain, as a distinguished home for premier start-up hub. Unable to resist the lure for more revenue and exposure, by July 1000, companies are expected to occupy the station; they include JetPack Data, La Belle Vie, and Revele. Moreover, Facebook and Amazon are supporting Station F. Microsoft intends to base its latest artificial intelligence start-up there, and it will soon be followed by other tech giants like video game publisher Ubisoft. To sum up, France is slowly but surely awaking from its serious slumber and making the right technological moves.

Response to weakness

To drive out the risk-averse spirit from the citizens of France, the president, Mr. Macron, has promised to make the country more conducive for business. To this end, to support start-ups and accelerators in simple terms, he has created many state investment funds. For instance, to name but two, he has created the Venture Fund and the Tech Acceleration Fund. In these funds, the state has invested billions. Besides, just recently, he added another 10 billion euro public fund to cater for the same purpose. Thus, through these excellent means, with the state’s aid, the president has availed all means possible for improvement in technological entrepreneurship in France.

Morocco

Strengths

Towards the GDP of Morocco, off-shoring and IT contribute an estimated 500 million dollars and, in its services, employ more than 35,000 people. Furthermore, over the last five years, from the communications sector, the country has garnered half of all direct foreign investments. In education, according to a report given by Morocco World News, over the past decade, the country has registered a stark increase in admission of students to tertiary institutions. According to the Africa Capacity Building Foundation, to be more specific, the biggest group of scientific researchers was in human and social sciences (40.2%), followed closely by natural sciences (mainly Physics, Biology, Mathematics, Geology) at 32%, and then others. With this productive potential, Morocco is well placed to advance technologically; as a matter of fact, on numerous occasions, it has clinched the top spot on IT charts among African states.

Weaknesses

Despite the great potential highlighted above, unfortunately, the country is plagued by many problems. According to a recent report released by The Economic Intelligence Unit (EIU), discontentment is often displayed by numerous episodes of social unrest. Moreover, especially irritating to the public is the use of public funds for personal gain. Moreover, the high cost of living, the high level of unemployment, a weak judiciary, and a surge in injustices equally contributes to the social and political instability. Also, within the scope of IT, the lack of latest pieces of equipment and infrastructure, occasioned by a want of funds, affects the growth and development of technology. As such, the country is also suffering from a myriad of problems.

Response to the Strengths

To leverage its vast potential, to the country’s internet, the state intends to increase local content to increase its usage. Despite the penetration of the internet in the country being low, the state is working to increase the same. Moreover, to the various universities and schools in the country, the state intends to add more computers. These measures aim to increase the level of connectivity and IT penetration. Also, to boost telecommunications and increase the levels of social interaction and ease of message conveyance, the country has introduced client loyalty plans and reduced the prices of service offerings. Finally, in a bid to protect personal data, the state intends to create a commission. These done, soon, Morocco will become a tech giant in the African region.

Responses to the weaknesses

The most problems being those associated with bad governance and high cost of living, the state has the following plans. According to the EIU projections, as the drought ends, most Moroccans will revert to farming, and subsidies offered by the state will reduce the high prices of goods. Furthermore, concerning the political instability, which may not be cured entirely, the state intends to reserve sufficient revenue for the creation of employment to ensure most people earn a decent living. With these measures implemented, the state will escape the horror of many problems and press powerfully towards economic growth and development.

Tunisia

Strengths

In Tunisia, the ICT sector is a priority. By the state, it is perceived as a sector of innovation, and a means of developing other economic aspects. As a result of this perception and potential, through outsourcing, export, partnership, and foreign investment, the state admits international interests. According to the National Institute of Statistics (NIS), 7.2% of Tunisia’s GDP is constituted by ICT, and in 2016 an estimated 80,000 people received employment from the sector. Furthermore, from the same source (NIS), 219 service centers, 1,800 private companies, eight development centers for multinational companies, 98.8 lines of telephone density lines per 100 inhabitants, and more than 4 million internet users—all these compose the ICT sector. Finally, the state has 3 ICT technoparks, 18 cyber parks—all these dedicated to technological and scientific research. Among other African countries, in ICT, Tunisia is preeminent.

Weaknesses

Notwithstanding the strengths mentioned above, Tunisia is not free from weaknesses. Most of the ICT companies in the country are small. Since most ICT orders in the country come from the government and public companies, this gives large companies a competitive edge over the small ones; as a result, the small companies remain small. According to a report released by the World Bank, an estimated 80% of ICT companies in the country have less than 50 workers. As a consequence of this fact, the small firms find it impossible to compete with multinational firms; as a result, the sector succumbs to fragility. Finally, although the state is dedicated to research and development activities, often, funds are not sufficient. As such, among others, as far as ICT is concerned, these are some of the weaknesses of Tunisia.

Response to Strengths

In support of the sector, the state intends to do the following. One, create and develop internet access; two, encourage foreign ICT organizations to recruit Tunisians—a process termed as Off-shoring; three, digitize administrative services; four, the promote e-commerce, e-health, and online purchases. Also, to rise into the international stage and thereby access international partners and clients, the state actively seeks partnerships and investments. Finally, the state has so developed the sector that it forms a perfect hub for neighboring markets like Libya and Algeria and other African states and Middle East markets.

Response to Weaknesses

Through legislation, to improve and boost the ICT sector, the state provides incentives and controls investment for them to generate jobs and wealth. The state also intends to continue improving infrastructure, make the ICT platform quality, and reduce the stiff competition. With this done, the ICT sector in Tunisia will soon soar into unprecedented heights.

In conclusion, these three countries all have strengths and weaknesses, and each responds to these in a distinct way. In a world where digitization is the goal of every business organization, every aspect of human development, and every prosperous state, technological advancement is crucial. For France, being a developed country, it has sufficient means to attain this highly coveted goal. Nevertheless, it has weaknesses like citizens, though able to venture into entrepreneurship, are terrified of taking risks. Furthermore, instead of supporting the few risk-loving citizens, the country has high social taxes that make the costs of employees twice as high as that incurred in America—this policy forbids and discourages start-up in France. To deal with this problem and improve on its potential, Mr. Macron, the president, has created several investment funds. In the country of Morocco, though being a developing country, it is endowed with a population of many researchers. Nonetheless, it is plagued with several problems—the most disruptive being incessant social unrest. To end these cycles and create a conducive environment for IT developments, fittingly, the state has reserved some revenue for the creation of employment. Ultimately, in Tunisia—a country where ICT is perceived as a mover of the economy—small and multinational companies find a suitable market for their services; however, since the most significant market is composed of public companies and the government, small firms face stiff competition from well-established companies. To level the plane field, and promote trade, the state provides subsidies. In sum, then, each state can succeed—it merely depends upon the use of the available resource