Nigeria Located in western Africa, Nigeria is situated between the countries of Benin and Cameroon on...

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Nigeria Located in western Africa, Nigeria is situated between the countries of Benin and Cameroon on the Gulf of Guinea. The Niger River, perhaps the most important river in western Africa, flows into the country through Niger and empties into the Gulf of Guinea. The total land mass of Nigeria is six times the size of Georgia and slightly larger than twice the size of California. Natural resources include natural gas, petroleum, tin, iron ore, coal, limestone, nio- bium, lead, zinc, and arable land. The climate is tropical in most of the country, although the northern portion of the country is quite arid. With over 181,562,000 people and a growth rate of 2.5 percent, Nigeria is Africa's most populous nation and one of the fastest growing. The official spoken language is English, due to Nigeria's history as a part of the British Empire. The country is incredibly diverse, with more than 250 ethnic groups. Religiously, Nigeria is split evenly between Muslims and Christians. This spiritual division has led to significant unrest and civil wars from the time of its independence until recent history.59 The country's population is younger than most. The largest segment of the population (43 percent) is 0-14 years old, and the second largest segment is 25-54 years old (30 percent). Wealth inequality is especially pro- nounced in Nigeria, leaving a large gap between the "haves" and "have nots." With a GDP per capita in 2014 of US$3,001, 60 percent of the country's population lives below the poverty line. Nigeria's total 2014 GDP stood at US$568.5 billion and has been experiencing a strong decade of growth. In 2014, the economy expanded by 6.3 percent. 60 The British Empire controlled a majority of Africa and, specifically, Nigeria from the early 19th century until the end of World War II. Nigeria gained its independence in 1960, but its politics consisted of military regimes and numerous coups. Military rule continued until the adop- tion of a new constitution in 1999, which transitioned the country's government into a civilian one. Since this tran- sition, the political environment has been relatively stable, consisting of legitimate and regular elections. The country is, however, still feeling the effects of the four decades of corruption and mismanagement. 61 In the International You Be the International Management Consultant Spotlight The Nigerian owner of the Filmhouse Cinemas fran- chise, Kene Mpkaru, has announced a significant expan- sion of his company's presence in the country. Although the movie industry in Nigeria currently consists of viewers watching movies in their homes, Mpkaru believes there is growth potential for in-theater watch- ing. Mpkaru has some expertise in the movie theater business; prior to owning his Nigerian franchise, he worked for a European franchise and oversaw substan- tial expansion. Currently, Filmhouse has nine movie. theaters in Nigeria, and the company plans to open 16 additional locations. The greatest challenge to doing business in the country is the relatively low purchasing power of the consumers, with more than 60 percent of the population living below the poverty line. Prior to Filmhouse, Nigeria's main movie theater option was a high-end theater that included a full dining experience, costing approximately US$40 per ticket.62 Nigeria has built a film industry of its own in recent years. The country's movies, generally shot with very small budgets, are often released direct to DVD. This industry, referred to as "Nollywood," accounts for approx- imately 1.5 percent of the nation's GDP, or US$7 billion. For Filmhouse, this domestic industry could serve as an attractive expansion vehicle.63 Questions 1. If you were a consultant for Filmhouse, how would you advise Kene Mpkaru regarding his next moves in Nigeria? 2. What specific aspects of the country would be positive for the company? What factors are negatives? 3. How would you deal with the wealth gap in the country? 4. Would you advise Filmhouse to concentrate on Nollywood productions or would you try to attract Hollywood movies? Nigeria Located in western Africa, Nigeria is situated between the countries of Benin and Cameroon on the Gulf of Guinea. The Niger River, perhaps the most important river in western Africa, flows into the country through Niger and empties into the Gulf of Guinea. The total land mass of Nigeria is six times the size of Georgia and slightly larger than twice the size of California. Natural resources include natural gas, petroleum, tin, iron ore, coal, limestone, nio- bium, lead, zinc, and arable land. The climate is tropical in most of the country, although the northern portion of the country is quite arid. With over 181,562,000 people and a growth rate of 2.5 percent, Nigeria is Africa's most populous nation and one of the fastest growing. The official spoken language is English, due to Nigeria's history as a part of the British Empire. The country is incredibly diverse, with more than 250 ethnic groups. Religiously, Nigeria is split evenly between Muslims and Christians. This spiritual division has led to significant unrest and civil wars from the time of its independence until recent history.59 The country's population is younger than most. The largest segment of the population (43 percent) is 0-14 years old, and the second largest segment is 25-54 years old (30 percent). Wealth inequality is especially pro- nounced in Nigeria, leaving a large gap between the "haves" and "have nots." With a GDP per capita in 2014 of US$3,001, 60 percent of the country's population lives below the poverty line. Nigeria's total 2014 GDP stood at US$568.5 billion and has been experiencing a strong decade of growth. In 2014, the economy expanded by 6.3 percent. 60 The British Empire controlled a majority of Africa and, specifically, Nigeria from the early 19th century until the end of World War II. Nigeria gained its independence in 1960, but its politics consisted of military regimes and numerous coups. Military rule continued until the adop- tion of a new constitution in 1999, which transitioned the country's government into a civilian one. Since this tran- sition, the political environment has been relatively stable, consisting of legitimate and regular elections. The country is, however, still feeling the effects of the four decades of corruption and mismanagement. 61 In the International You Be the International Management Consultant Spotlight The Nigerian owner of the Filmhouse Cinemas fran- chise, Kene Mpkaru, has announced a significant expan- sion of his company's presence in the country. Although the movie industry in Nigeria currently consists of viewers watching movies in their homes, Mpkaru believes there is growth potential for in-theater watch- ing. Mpkaru has some expertise in the movie theater business; prior to owning his Nigerian franchise, he worked for a European franchise and oversaw substan- tial expansion. Currently, Filmhouse has nine movie. theaters in Nigeria, and the company plans to open 16 additional locations. The greatest challenge to doing business in the country is the relatively low purchasing power of the consumers, with more than 60 percent of the population living below the poverty line. Prior to Filmhouse, Nigeria's main movie theater option was a high-end theater that included a full dining experience, costing approximately US$40 per ticket.62 Nigeria has built a film industry of its own in recent years. The country's movies, generally shot with very small budgets, are often released direct to DVD. This industry, referred to as "Nollywood," accounts for approx- imately 1.5 percent of the nation's GDP, or US$7 billion. For Filmhouse, this domestic industry could serve as an attractive expansion vehicle.63 Questions 1. If you were a consultant for Filmhouse, how would you advise Kene Mpkaru regarding his next moves in Nigeria? 2. What specific aspects of the country would be positive for the company? What factors are negatives? 3. How would you deal with the wealth gap in the country? 4. Would you advise Filmhouse to concentrate on Nollywood productions or would you try to attract Hollywood movies?