GE South Africa: Londvolota’s Contextual Leadership for Creating Shared Value
(8 pages of text)
In January 2019, one of the founding members and current board members of Londvolota, a South African trust formed by General Electric South Africa (GESA) in 2015, faced a challenge. Londvolota needed to improve the establishment and growth of entrepreneurial South African businesses as part of GESA’s development of local suppliers, which aimed to enable the best of these businesses to supply the global GE network. The initiative represented a major contribution to supporting the South African economy; however, the board was considering updating its criteria for selecting the businesses for development. How should the organization adjust its criteria to avoid failures and increase the initiative’s success rate?
The case study is suitable for graduate-level courses on international business. It is also suitable for executive education courses on organizational behaviour and leadership. After working through the case and assignment questions, students will be able to do the following:
- Identify contextual leadership capabilities in positioning a transnational organization to be locally relevant.
- Analyze actions that create shared value.
- Analyze a localization drive by creating a decentralized structure.
- Recommend improvements to the selection and development of local suppliers for a multinational organization.
South Africa, Large, 2019
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