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Home Blog Page 6523

What’s Wrong with Manchester United?

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Wednesday night was just like many other nights in the recent history of Manchester United FC. Once again, #OleOut was trending on Twitter. It’s become a weekly trend enabled by consistent loss of matches that are evidently wearing the fans out. Burnley United had added salt to the injury, it was 0-2 at the end of 90 minutes, and three points went with the visitors. That’s 57 points lost by Man United since March 2019, while at the same time Liverpool FC has lost only two points.

It has been disappointing performances, stretched across seasons to the downheartedness of hopeful Red Devil faithfuls.

The problem started back in 2013 when Sir Alex Ferguson retired as Manchester United manager, after 27 years leading the club to domestic and European glory. Ferguson added 38 trophies to the cabin of Old Trafford, which includes 13 League titles, two Champions League titles, five FA Cups and four League Cups. The Scot set the bar so high that the club’s supporters leaned on pride to taunt other clubs.

Upon his departure, Search commenced for who will not only take his place, but keep the legacy that has brought pride and fortune to the club. Ferguson was asked to help the club choose someone who would fit into his shoes at Old Trafford. A task outside coaching that he did without much rambling – Ferguson anointed David Moyes to succeed him, and the board concurred.

“We unanimously agreed on David Moyes. David is a man of great integrity with a strong work ethic. I’ve admired his work for a long time and approached him as far back 1998 to discuss the position of assistant manager here. There is no question he has all the qualities we expect of a manager at this club,” Ferguson said.

Moyes accepted the appointed with gratitude, called it “a great honor” and promised not to disappoint the club.

“I am delighted that Sir Alex saw fit to recommend me for the job,” he said, “I have great respect for everything he has done and for the football club. I know how hard it will be to follow the best manager ever, but the opportunity to manage Manchester United isn’t something that comes around very often and I’m really looking forward to taking up the post next season,” he added.

The season came and tested Moyes’ managerial ability beyond his imagination. He put up a hard fight though, taking Man U to the quarter finals of the Champions League, and winning 19 League games which saw the team finished outside the top four. Moyes performance in the club could only be entertained for one season; he was sacked before he could apply other tactics that he knows.

The club went to the market once again in search of a manager, someone who would give the fans a reason to boast again if not a perfect replacement for Sir Alex. The searchlight pointed at Louis Van Gaal who was at that time, managing the Dutch national team. Upon his appointment, he too promised to perform the needed miracle that would bring back the fading glory.

“I too have big ambitions. I’m sure we will make history,” he said.

“Making history” came with a lot of hurdles that LVG was aware of, and it depended more on Man U’s board than he himself.

“They had seven players over 30; we spoke about that at the job interview. In my first year, we qualified for the Champions League. In my second we won the FA Cup,” LVG said after losing his position as the team’s head coach.

The Dutch did not stay long to add to the FA Cup. On November 21, in his second season, Man U was second on the League table, just a point behind the leaders and eventual winners – Leicester City. There was hope the League would return to Old Trafford until their next five games killed it, United lost 13 points and in the same period were eliminated from the Champions League.

That was it, the Glazers had had enough. Following the disenchantment and grumbling from fans, the board made contact with Mourinho, and Van Gaal became part of history of managers who were sacked at Old Trafford.

In May 2016, Mourinho signed a three-year deal as manager of Manchester United. In his first season, he won the Community Shield, the League Cup and the UEFA Europa League. The hope came back in a thrilling way; finally the Red Devils have a reason to boast again. So they thought until the 2017/18 season, when the events in the fields became disheartening once again.

At the end of 2018, Manchester United was 19 points behind League leaders, Liverpool, and was sixth in the table. The performance of the team was described as the worst in the history of the club. Mourinho spent £400 million on 11 players; he had no excuse not to succeed. In December, Mourinho joined the list of managers who failed to fit into Sir Alex Ferguson’s shoes and were shown the way out by the Club’s vice president, Ed Woodward.

In January 2019, the club was in the market once more looking for a replacement. A United statement said: “A caretaker manager will be appointed until the end of the season while the club conducts a thorough recruitment process for a new, full-time manager.” Ole Gunnar Solskjaer became the caretaker manager and eventually, was made the full-time manager.

In his early days as Man United coach, the tides turned to memorable victories. The former Man U player recorded six Premier League wins in a row, prompting the song, “Ole’s at the wheel” by Red Devils’ supporters. The enchantment prompted the appointment of the Norwegian as the full-time manager. The restoration of faith in the team was dramatically based on outstanding performances, one of such, the remarkable 2-1 away victory against Juventus in the 2018/19 Champions League group stage.

But when they thought the glory is coming back, the wind of disappointment came with a full force and blows even the past record into shreds. It has been loss upon loss since the impressive start of Ole, and the fans are not having it anymore. The chronicle of managerial performances at the Manchester club is begging a question: What is wrong with Manchester United?

Managerial chairs have been reshuffled, players bought and sold, yet it appears that the post-Ferguson era has been spent so far on failed experiments. Some say it goes beyond what happens in the field. The Glazers and Ed Woodward have been fingered, and their method of operation has been criticized.

Managing director of the Americas at 21st Club, AJ Swoboda blamed it on the front office being led by Woodward, a former investment banker who had no previous experience in football business. He got into the game by helping the Glazers’ family purchase Man United. It is believed by many that with Woodward at the helm of affairs, United still lack the needed office structure that other clubs in the Premier League like Liverpool and Manchester City used to rise to the top.

Manchester United still doesn’t have a sports director like many other big clubs in Europe do. Liverpool, for instance is noted for investing in analytical decision making, enabled by Ian Graham, the team’s director of research. This kind of think-tank office has critically analyzed decision-making issues and come to the right conclusions.

Swoboda said: “In United’s case, there is a pretty big question of what is really driving inefficiency – i.e. the coach or front office operations? I’d be inclined to argue the latter given all the coaches that have come through since.”

Some Nigerian Banks Could Buy Lending Startups To Meet LDR Target

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Most Nigerian banks cannot meet the 65% LDR (loan to deposit ratio) which the central bank has set. They have less than 10 weeks to close the gap. As I look at the data, I am beginning to think that some lending startups could be on play: Acquisition. Why? Bank stocks are rallying and if that stays, banks would have momentum to shop! The alternative of rejecting deposits makes no sense.

The Central Bank of Nigeria (CBN) increased the minimum loan-to-deposit ratio (LDR) of commercial banks from 60 percent to 65 per cent in the latter part of 2019.  According to a Bloomberg report, the measure was among a raft of regulations aimed at forcing banks to boost credit, mainly to farmers, small-and-medium-size businesses and consumers.

The loan-to-deposit ratio (LDR) is used to assess a bank’s liquidity by comparing a bank’s total loans to its total deposits for the same period. The LDR is expressed as a percentage. If the ratio is too high, it means that the bank may not have enough liquidity to cover any unforeseen fund requirements. Conversely, if the ratio is too low, the bank may not be earning as much as it could be earning.

According to the report, Nigeria’s banks are some of the most reluctant lenders in major emerging markets, with an average loan-to-deposit ratio below 60%. That compares with 78% across Africa, according to data compiled by Bloomberg, with 90% in South Africa and about 76% in Kenya. Compare this with developed markets such as the UK, which according to Statista.com, states that Shawbrook Bank’s loan to deposits ratio on the British market between 2012 and 2016 increased from 74 percent in 2012 to 102.7 percent as of 2016.

Sure, the big lending startups may be expensive to absorb. The smaller ones may not have enough user base to justify acquisition. Yet, the banks could be attracted to their technologies as some of the low-tier banks have really nothing for retail lending. Using the technologies and the brands, they could ramp up to meet CBN target. I do think acquisitions and acqui-hire in the neighborhood of $7 million would trigger great Easter and Sallah for some of the mid-tier startups. Yet, CBN can postpone the date when the banks lobby for more time! This is Nigeria, after all.

Lending Rates in Nigeria (source: TechCabal). 

Tekedia Mini-MBA – An Industry Expert To Lead The HR Management Session

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When we released the Tekedia Mini-MBA program structure, Human Resources Management was not there. If you can weave a triple helix of people, process and tools management systems, you will notice that People is catalytic. Why? Going back to the classical factors of production, labour is a critical factor for location and localization of firms (chapter 3 in AO Lawal’s Economics textbook in secondary school). To attract, retain, motivate and promote human capital is one of the most important elements that drive competitiveness and organization productivity.

In my undergraduate business course in FUTO, the professor had a topic, Engineer Turns Manager; he posited on treating workers well, in order to maximize derivable output. The professor, Prof Onwuka, a professor of mechanical Engineering, who just finished his MBA then, put everything in an optimization equation; it was magical how central humans can be in commerce.

Ladies and gentlemen, our Mini-MBA would not be complete without a session on Human Capital Management. We have found a leader who will anchor it. Uchenna Anyanwu was GM Human Resources in one of Africa’s largest companies – the Halogen Group – which employs about 17,000 people. He later became Group Talent Director in Redslate, one of Africa’s finest experience companies. Today, he is the Managing Consultant in talent-focused advisory firm, Talgen Business Solution. A member of the HRD, the guild of directors in the human resources industry, he will take us into that HR management excursion.

If you have not registered, do so right away.

How To Register: 

  • PayPal: follow this link and pay $140 US dollars.
  • Bank transfer (Nigerian naira): Pay N50,000 into any of GTBank 0114016493, UBA 1019195493. Account owner: First Atlantic Semiconductors & Microelectronics.
  • Flutterwave: follow this link (naira) or this one (USD) to use your Verve, Visa, Mastercard, Amex, etc cards across Africa and beyond (you can use same links for other currencies, please ask for exchange rate before payment if not on Naira or USD)..

After payment, email tekedia@fasmicro.com with participant’s name and email to complete the registration.

The Fundamental Ride – Making Profits The New Investors!

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Jumia is exiting some markets in Africa. Uber Eats has been eaten by Zomato in India. Glovo, the Spanish on-demand delivery platform is exiting Egypt. If you check these companies, one thing is clear: they are looking for a path of sustainable profitability. Businesses must make profits to be going concerns. While revenue growth is critical, a very fundamental element in business is a company’s capability to make profits. Without profit, a company dies, over time.

Oscar Pierre, the co-founder and CEO of Glovo, commenting on exits, said, “This has been a very tough decision to take but our strategy has always been to focus on markets where we can grow and establish ourselves among the top two delivery players while providing a first-class user experience and value for our Glovers, customers and partners.”

“Leaving these four markets will help us to further strengthen our leadership position in South West and Eastern Europe, LatAm and other African markets, and reach our profitability targets by early 2021. I want to place on record our thanks to all of our Glovers, customers and partners in the markets from which we’re withdrawing for their hard work, dedication, commitment, and ongoing support,” Pierre added.

I am sharing this because the playbook is changing rapidly as investors update their strategies, demanding from founders and CEOs a clear path to the desired destination: I have funded this company, now I need you to show me how you can be weaned from more outside capital and be a real business. That is a message every founder needs to hear right now. It is global and even more awakening in Africa. We need to be aware that our gestation period to profitability in Africa is long, and that requires exploring ways as early as possible to make money. When no further funding can be guaranteed, profits must become the new investors!

While you may think that raising capital may help you, most people have noticed that you can raise capital and still crash. Think of Efritin which just gave up on Nigeria. It happens daily. They think that market growth is the solution when the path to profitability is what matters [path to profitability may not matter to a U.S. founder because they have massive sources of new capital. We rarely have here].

Yes, your new business problem in Nigeria is not just capital but the long gestation period required for profitability, affected by many factors at scale.

Meanwhile, Jumia has a new boss in Nigeria. Massimiliano Spalazz takes over from Juliet Anammah who moves to Chair position of Jumia Nigeria.

Dealing with Long-Profit Gestation in Nigerian Startups

Update: You can add Lime (a scooter company) in this club of “finding profitability”.

Lime is hoping to achieve profitability this year by laying off about 14% of its workforce and ceasing operations in 12 markets, as first reported by Axios. CEO Brad Bao told us, “Financial independence is our goal for 2020, and we are confident that Lime will be the first next-generation mobility company to reach profitability (Techcrunch newsletter)

Megxit: The Price Harry and Meghan Paid for Their Freedom

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The British Royal Family has come to terms with the decision of Prince Harry and Meghan Markle, the Duke and the Duchess of Sussex. This is coming after all parties sat on a table and talked about the announcement made by the Royal couple that they are stepping back from their roles as senior members of the royal institution.

At the break of the news, The Queen has appealed for calm and understanding as the family was trying to work things out with Harry and Meghan. The couple had announced that they will be living between North America and the UK in pursuant of independent life, but will keep the values of the Royal Family.

Part of the deal announced by the family is that Prince Harry and Meghan Markle will drop their royal titles – HRH, and would be addressed henceforth as Harry, Duke of Sussex and Meghan Duchess of Sussex.

They will also repay the 2.4 million pounds spent in renovating the Frogmore Cottage home. They are allowed to make whatever commercial deals they want as long as the monarchy values are not compromised.

The following agreement marks the conclusion of talks with the royal couple. After outlining the dos and don’ts of the agreement, The Queen was pleased that they were able to work things out with the couple. The statement issued by Buckingham Palace reads:

“As agreed in this new arrangement, they understand that they are required to step back from Royal duties, including official military appointments. They will no longer receive public funds for Royal duties.

“With the Queen’s blessing, the Sussexes will continue to maintain their private patronages and associations. While they can no longer formally represent The Queen, the Sussexes have made clear that everything they do will continue to uphold the values of Her Majesty.

“The Sussexes will not use their HRH titles as they are no longer working members of the Royal Family. The Duke and Duchess of Sussex have shared their wish to repay Sovereign Grant expenditure for the refurbishment of Frogmore Cottage, which will remain their UK family home. This new model will take effect in the spring of 2020.”

Part of the agreement is that Harry and Meghan will henceforth pay 360,000 pounds for the use of the Frogmore Cottage.

In a personal statement, The Queen thanked the couple and wished them well as she respects their decision to pursue an independent life.

“Following many months of conversations and more recent discussions, I am pleased that together we have found a constructive and supportive way forward for my grandson and his family.

“I recognize the challenges they have experienced as a result of intense scrutiny over the last two years and support their wish for a more independent life.

“I want to thank them for all their dedicated work across this country, the Commonwealth and beyond, and am particularly proud of how Meghan has so quickly become one of the family. It is my whole family’s hope that today’s agreement allows them to start building a happy and peaceful new life,” the Queen said.

Meanwhile, Prince Harry has issued his first statement on the matter since the announcement. At a dinner for Sentebale, the charity he started with Lesotho Prince Seeiso, in 2006 to help orphans with AIDS, he said the decision will not affect his family relationship, even though it’s a painful one.

“I’ve accepted this, knowing that it doesn’t change who I am or how committed I am. But I hope that helps you understand what it had come to, that I would step my family back from all I have ever known, to take a step forward into what I hope can be a more peaceful life.

“I was born into this life, and it is a great honor to serve my country and the Queen. When I lost my mom 23 years ago, you took me under your wing. You’ve looked out for me for so long.” Harry added that media is formidable force that needs to be tamed with sincere care for each other.

“But the media is a powerful force, and my hope is one day our collective support for each other can be more powerful because this so much bigger than just us.

“I will always have the utmost respect for my grandmother, my commander in chief, and I am incredibly grateful to her and the rest of my family for the support they have shown Meghan and I over the last few months.”

However, there are yet some issues not included in the agreement, one of them, the security of the Sussexes. The cost of the couple’s security is at the tune of 7.6 million pounds, and it’s likely going to be funded by taxpayers’ money.

This is a turning point in the British Royalty and the British people are accusing Prince Harry of disrespecting the Institution just to please his wife.