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Introduction
An alternative organization refers to non-governmental organizations which have alleviating and reducing poverty in the developing countries as their main aim. Poverty is a major issue facing developing countries and most developing countries are finding it hard to alleviate poverty. As a result, most developing countries will seek financial aid in the developed countries.
This relationship creates a diplomatic tie between the developed and developing countries. In some cases, the aftermath of the diplomatic ties is the establishment of alternate organizations in the developing countries by the developed countries.
These organizations usually have set modalities to be able to achieve their aims and objectives. They provide a system that allows traders in the developing countries to access the global market in developed countries (Spulber, 1979, p.60)
Global capitalism is a concept derived from two main words, “globalization “and “capitalism”. Globalization in economic terms refers to the global interaction of various economies on the global front.
According to Levin institute (n. d, pg.1), globalization can be defined as the process by which there is increased interaction among individuals, companies or governments. It may also refer to the global distribution of services and goods. According to Bloomberg (2000, p.1), global capitalism has created a lot of job opportunities in the developing countries.
Globalization can also be defined as the process by which various countries interact in order to facilitate and develop the economy globally. Globalization is aimed at distributing the various means of production of goods and services among various countries.
Globalization has various diverse definitions but the commonly accepted definition is that globalization is the increase in interaction of people, culture and economic activities on the global front (Spulber, 1979, p.60).
On the other hand, capitalism refers to an economic system in which the means of production as well as distribution of resources is corporately or privately owned (Case, 2004). Capitalism can be seen as being characterized by private control of the means of production.
Capitalism is also characterized by free market for services and goods. Global capitalism may be defined as the concept of advancing the capitalistic ideologies throughout the various economies around the world (Uluorta, 2009, p.20)
This essay is going to analyze how alternative organizations advance their ideologies. A case study of orange company is going to be used.
Case Study
Orange Telecommunication Company is one of the leading companies in the industry. According to orange.com (2011), Orange is a key brand of France telecom and it emerged with the aim of shifting from using wired connections to wireless mobile telephony. It is a mobile network and internet service provider that was founded in the United Kingdom.
The company was established in 1994 and was a constituent company of FTSE 100 that was purchased by France Telecom in the early 2000. It was in 2000 when the company adopted the name Orange.
This is a brand name that has exposed the company to the rest of the world, especially in the developing countries. In addition, the company has formed a joint venture after it merged with Deutsche Telekom’s T Mobile UK (Marangos, 2004, p. 56).
Because of the competition in the industry, the company has managed to get 17 million customers globally. The company has been improving its services by adopting new technology. This has helped the company compete favorably with other companies in the industry such as Safaricom, Zain and Yu.
Telecommunication industry is one of the factors that are improving lifestyles and reducing poverty level among people. Orange company has been improving its services in the country so that it can compete favorably with other companies (Lippit, 2005, p. 123).
According to Strangio (2006, p.1), the aim of the company is to improve telecommunication services, especially in the developing countries. The company is highly reputed in the countries in which the company has operations. Orange is one of the companies that have helped many developing nations reduce poverty (Orange.com, 2011).
As stated earlier, Orange is an alternative organization that has an objective of improving the lifestyles of poor people in the developing countries. In addition to the services provided by the company, the management is highly reputed. The reputation is because of the hard work and commitment that the employees are exhibiting (Ager, 2007).
Ways in which the company has reduced poverty in developing countries
First, the company has created many job opportunities, hence, making locals get income to sustain themselves and their families. The unfortunate in the society are employed as clerks, finance officers, technicians, network specialists, engineers, marketers and many other positions offered by the company (Rowstow, 1990).
People who had no jobs have gotten a chance to improve on their lifestyle due to regular income in form of salaries, wages and allowances (Ingham, 2008, p. 85).
Secondly, the government gets revenue from the company in form of tax. This means that the tax collected by the government is used to improve services provided to the citizens. Because the company is generating as lot of revenues from its customers, it has helped the government by offering communication services that are effective, efficient and reliable. This is critical in improving the lives of the less fortunate in the society.
Rural health care
Rural health care is a program that the company has been engaging itself in to offer health services to the public (Herotheos, 2008). The company has been organizing for mobile clinics so that those who cannot afford can get the services at a lower cost.
The company provides subsidies in what is called tele-medicine or tele-health. The clinics and health centers that have been constructed have created jobs and improved the health conditions of the people. The hospitals in the rural areas have enabled them get affordable rates because of their situation.
Schools and libraries
In addition to construction of the rural hospitals, the company has been in a position to construct schools and libraries in the rural areas. The illiteracy levels will reduce when the children are educated. Only then will the poverty level reduce. This means that the people will get access to internet, information, knowledge and other services that will help them improve their lifestyles.
After the people have got education, they will be able to secure good jobs and get some income. The company has been offering scholarships to the bright needy students from poor background. This will help them get out of poverty after they have gotten the education and knowledge that will ensure they live a comfortable life (Schumpeter & Swedberg, 1943, p. 133).
The level of poverty in most slums in the countries of operation is being upgraded by the company because they are interested in improving their living standards. Communication has improved in most developing countries, especially in the rural areas, where people are less fortunate. The poverty level has generally reduced due to the services and commitment the company has in the developing countries (Marangos, 2004, p. 59).
In addition to improving infrastructure, the company has been engaging itself in corporate social responsibility (CSR). This has improved the image and reputation of the company, hence, attracting more customers (Crane and Matten, 2010).
This has been able to help the poor people because they get the chance to be visited. For example, the company has been visiting and donating food in the children’s homes. These homes house and take care of children from poor families and orphans. In addition to giving them the basic needs, they sponsor those who do well academically.
The calling rates of the company are affordable compared to other company’s rates. This means the company is not overcharging its customers, hence, not turning them poor. The internet that the company is providing is reliable and affordable to the customers.
In the long run, the affordable charges will help the customers save some money. Low income earners can communicate, no matter the economic restrain that is affecting most countries, especially in developing countries such as Kenya and Senegal (Spulber, 1979, p. 145).
In conclusion, the company has had positive impact in the developing countries in terms of economic benefits. For example, the internet connectivity provided will help improve e-commerce and e- business in the region.
Analyzing the statement in relation to Orange Company
Alternative organizations have a significant importance in the developing countries. They provide employment opportunities to the developing countries, provide revenue to the government through taxation, they provide services and products that are high-tech and also provide a means of foreign exchange to the developing countries (Rowstow, 1990, p.35).
Besides these benefits brought upon the developing countries, an alternative organization faces a lot of challenges.
Many alternative organizations are finding it hard to adapt to global capitalization concept and challenges because they are deemed to be small or they are not significant enough (Kvint&Kvint, 2009, p. 67).
The orange companies, being one of the alternative organizations, are not exempted from these challenges. Firstly, the company is too small to be able to advance its operations. A Company’s strength is measured according to its capital base and ability to reinvest the profits gained in other free markets. Since its inception, the orange company has not been able to expand and reinvest in the developing countries market.
The latest acquisition of Orange was the acquiring of Telkom Kenya by the Orange group (Orange.com, 2011). Telkom Kenya was the country’s telephone service provider that used cables to offer telephone services through the use of telephone booths.
For example, at the time when Orange acquired Telkom Kenya, many Telkom Kenya staff were laid off, a factor that was attributed to lack of enough funds to pay the overstaffed Telkom Kenya employees. Up to the end of 2010, Orange Kenya had not been able to upgrade its equipment to accommodate the new technological changes due to lack of enough funds.
In a bid to reduce on the operating costs, Orange Kenya had to lay off some of its staff and do a major restructuring in its operation departments. Some departments were merged while others were scrapped off. In other countries where Orange has branches, the company has not been able to reinvest more in the local markets within the country of its operations.
For example in South Africa, most branded orange operations are not fully owned by the orange company. The case is the same in countries like Belgium, where Orange owns a small percentage in Mobistar, in Egypt, where Orange owns a small share in Mobinil and in Portugal, where orange holds a small percentage in Optimus Telecomunicações.
Due to its small capital base, orange company has not been able to accommodate the global capitalism wave. Orange operates the orange ISP (internet service provider) services in the countries in which it has operations in. ISP is a registered company that provides internet services and connectivity to the internet.
These countries include: France, Kenya, the United Kingdom, Spain, Mali, Slovakia, Romania, Senegal, Guinea and Switzerland. The Orange ISP services have not been to standard in most of these countries. The services have not been able to lived up to the changing standards in the telecommunication industry (Goldsmith, 2005).
For instance, at this time of technological advent and innovation, a good ISP should embrace the use of fiber optic cables. Fiber optic is the transmission of light through flexible and fine glass or plastic wires (Ramaswami & Sivarajan, 1998). Fiber optics can also be defined as the transmission of light pulses along a wire. Optic cables provide high data connectivity and data with less signal distortions (Bates, 2001).
Orange has not been able to embrace these technological changes and more often, it has been voted as one of the poor ISP providers in the countries it operates in. For example, in some countries, Orange ISP still provides connectivity to the internet using the wired cabling connection mode. The orange live box internet connection module utilizes the wired connection mode.
This leads to provision of poor services, which puts the company at the brink of collapse (Rappaport, 2002). Most people would prefer using telecommunications providers that provide high quality and faster services. If a company does not provide such services, it will lose some of its subscribers to its competitors and may eventually collapse (Garg, 2002, p.77).
Another challenge facing alternative organizations is the inability to cope with the global capitalization concept. Competition is everywhere and it is a tool that can be used to measure how strong or prepared an individual or organization is to cope up with it.
Every company is striving to have its presence felt globally and if an organization is not fully prepared, it faces collapse threats (Litterman& Sachs, 2003, p.55). This global capitalization concept has led to various developments, which are both positive and negative to some economies of the world.
The results of global capitalism are twofold, they might benefit the company or the subscriber or at the same time they might also be detrimental to either companies or the subscriber. For example, orange has been faced with a global challenge of providing high speed 3G internet services to its subscribers (Rhoton, 2001).
This was as a result of most of telecommunications companies offering 3G internet connectivity. This competition among various ISP is a blessing in disguise (Bates & Gregory, 2001, p. 34).
It is a blessing in the sense that the subscribers are going to get a wide range of services over the internet but on the other hand, it is disadvantageous since the subscribers have to pay for all the cost incurred in obtaining the 3G licenses by the company. Orange has also been faced with the global wrangles in advocating and advancing the global capitalism ideology.
Every other alternative organization is striving to have a share in the global capitalism concept and orange is not an exception. Orange has been struggling to have its presence felt on the global front through advertisements rights and sponsorships rights.
Orange faces stiff competition through advertisements especially from the Airtel Company, which seems to be having a wider share in advertising rights. Advertising is a marketing strategy and a way through which a company is able to make itself known. If a company does not market itself, it is at a risk of collapsing anytime.
In order to cope up with the global capitalism, Orange Company needs to invest heavily in advertisement. Advertisement can take up any form including activities like television advertisements, sponsoring some of the sporting activities and involvement in charity activities (Leyshon & Lee, 2003, pg 26).
The orange brand in United Kingdom has been able to engage in the charitable activities and the same has to be reflected in other countries. For example, Orange is the sponsor of a community based organization in the United Kingdom known as the Rock Corps. It is a community based organization which volunteers to donate approximately four hours in a day in exchange for a concert ticket.
Like its major competitors, Orange should sponsor some of the global sporting activities like the Olympics games, world cup games and athletics among others. Failure to invest more in advertisement may put orange at a vulnerable position of collapsing.
Many alternative organizations will strive to do whatever it takes in order to be recognized globally. Some of the organizations will revert to and adopt desperate measures in order to achieve global recognition. The recent global capitalism wrangles having been experienced in the East African region, specifically in Kenya.
The price wars among the various telecommunication companies in the region including Orange led to drastic reduction of voice and data rates. This move is detrimental to the company since they are offering services at low cost, which in turn lowers the company’s revenues.
If a company’s revenues are reduced, it means less profit and the company will have a low capital base that cannot allow for expansion and eventually the company may collapse (Spulber, 1979, p. 38). This can also lead to companies making losses and eventually collapsing.
For example, after the telecommunications wars experienced in the East African Region, specifically in Kenya, Orange recorded a decrease in its profits. In a move to counteract the reduced voice rates, the company started offering other services like data bundles over their telephone networks.
Thirdly, most alternative organizations will always strive to advance the global capitalism ideology. Orange has been seen as advancing the capitalism idea through so many ways. For example, in most countries where orange operates, most of its profits are repatriated back to the mother company in France.
This eventually creates an economical imbalance between the two states since instead of the profits made being re-invested in the country where the branch is, it is taken back to the mother company. Orange company can also be seen as advancing the global capitalism in the sense that, in most of its operations worldwide, most of its technocrats are from the mother companies.
The major key decision makers are located in the mother company in France. This will eventually create an autocratic rule which may eventually create a state of hegemony. In some cases, the area residents, who are the potential and sometimes the subscribers, may be displeased with the organization’s form of leadership.
Global capitalism should not be the major reason as to why alternative organizations are struggling to achieve. More benefits could be obtained from a balanced business corporation devoid of global capitalism. Especially in the developing countries, a mutual business partnership can be created that will have twofold benefits.
For example, Orange Company could invest its telecommunication services in the developing countries like Sudan and as retaliation they could benefit from the natural resources available in the country like oil. In so doing, both the countries benefit and a sustainable mutual relationship is created in place of global capitalism (Leyshon & Lee, 2003, p. 21).
Also, in order to cub the capitalistic ideology, the orange company needs to ensure that some of the important management officials are from the country in which it is carrying out its operations. For example, local expatriates can be employed as part of the strategic or tactical management levels. In so doing, the residents will feel part and parcel of the organization.
They will not feel dictated upon and will always associate themselves with the company. This increases the confidence of customers in the company hence creating a strong brand for the company.
Also, another way to create a business platform that deviates from the capitalistic ideology is the company selling its shares to local residents. Another way of achieving confidence of subscribers and creating a strong brand for the company is for the Orange Company to re-invest in the country in which it has operations in as opposed to repatriating the profits back to the mother companies (Dixit, 2004, p.18)
Another way which orange company can contribute to a sustainable development that is an alternate to global capitalism is through sponsorship of community based organization and sporting activities (Marangos, 2004, p.41). According to The World Bank group 2001, p.1, sustainable development is the development that can meet the present needs without compromising the next generation’s ability to meet the same needs.
The same definition is also provided by the International institute for sustainable development (2011, p.1). The sponsorship program has been a success in the United Kingdom since orange is a sponsor of Rock corps, a community based organization. Also, orange has been able to participate in sponsorship of various sports activities around the East Africa region.
Orange sponsors the Orange Women hockey team that participates in the Kenya Hockey League. By involving itself in the sponsorship activities, Orange puts its brand at the forefront since it is advertising itself. It also creates a strong brand for its name and gains confidence among individuals. Orange should involve itself in environmental awareness activities like promotion of wild life conservation activities.
Orange faces some challenges as it tries to operate within the various countries. Some of the problems faced by orange are locally generated while others are internationally generated. The following are some of the major problems faced by orange.
Different governments have different policies and regulations that govern the telecommunications industries. Some government’s policies are to the advantage of the company while others are to their disadvantage. For example, some government policies require that all telecommunications companies must buy communication frequencies licenses which are very expensive and raises operating costs (Ingham, 2008, p.67).
The second challenge is the reluctance of some subscribers to embrace technological change. Thirdly, there is a problem of decision making. Orange faces a major problem of decision making within its organizations, especially in those countries where orange operates as a shareholder in another company (Rhoton, 2001).
To some extent, Orange Kenya has deviated from its initial principles and has adopted the capitalist practices. Since its inception in the developing countries, Orange had the fundamental principle of alleviating poverty in the developing countries.
Continuous improvement
Orange is focused on continuous improvement through a variety of ways. The company has been able to bring new improvements into the telecommunication industry. The company has been able to introduce and improve on the products and services it is offering to the customers.
For example, the company has been able to improve on its internet speeds like providing clients with advanced 3G high speed connectivity. The company is in a process to enroll the use of 4G+ internet connectivity to enhance fast data transfer rates.
Continuous improvement is also visible in the way recruitments are done at the company. The company recruits well qualified staff and retrenches those who are not well qualified. This is in a bid to ensure that the company is well equipped with the right technocrats who will provide high quality services.
Conclusion
In conclusion, alternative organizations are bound to fail because most of them are too small or are not well placed to cope up with global capitalization. Most of these organizations are faced with a threat to collapse if at all they are only concerned with advancing capitalist ideologies (Horak, 2007, p.24).
With the current advent of global democracy and mutual benefits between economies, most alternative organizations should focus on promoting a well balanced economy between the participating states.
In the past orange has been seen as a company with the aim of providing services and products as part of the company’s corporate social responsibility. With time, the company has over the years changed its objectives to become a dominant player in the industry. The dominance being targeted by orange company is not geared towards provision of services and products but geared towards creating an environment that may create hegemony.
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