Page 9 - MCOM MODEL ANSWER 2

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EXTERNAL CANDIDATES, ALUTUNJI BABELE AND JOHAN VAN RESNBERG
The advantage of bringing a CEO from outside is the fresh perspective which may be what

MCOM needs after undergoing so much upheaval or what the markets have called the 'perfect
storm.' There is need for a fresh start and to implement massive changes required to not only
overcome the head winds but find new growth avenues in a market that has rapidly been

stagnating even before the fine. The immediate downside of an external candidate is that it
could de-motivate internal candidates who may then feel MCOM is not committed to succession
planning, causing senior executives to not only resign but join competitors such as V-Mobile.

Furthermore, external candidates tend to require very lengthy notice period prior to starting.

Alatunji Babele is a decisive leader with clear experience in the mobile sector as CEO of the
2nd largest Mobile Operator group in Nakolia. His background with the Nakolian
Telecommunications Regulatory Authority (NTRA) could be handy when negotiating the fine.

This candidate is however not a citizen of Sadimba and as such will not meet our Affirmative
Action hiring practices. His notice period however is shorter than Johan Van Rensberg's, the
other external candidate. The criticality of this depends on how long our current Acting CEO is

willing to hold the helm until a replacement can take over. Johan van Rensberg on the other
hand is a strong leader with years of mobile operator and banking experience. He seems to
have big picture skills which makes him a forward thinker and hence will help set strategy and

direction effectively. His knack for talent management will directly contribute to 'Building and
leading the senior executive team'. The Nakolia fine has left in its wake too many resignations

and we need a leader who can help identify and replace them and drive the team to success. As
CEO of V-Mobile's parent in Europe covering 9 countries, Johan has executive level experience
and seems ready for the top job. He is likely to bring experience from V-Mobile, our main

competitor in Sadimba where he served before joining V-Mobile's parent in Europe. His
background in banking may very well help us execute our mobile payments strategy which we

have clearly identified as where the growth from 2017 will come from (See item 1 of our
Projections for 2016). The downside of Johan perhaps on operations as nothing is directed
stated and the extended notice period of 12 months he needs before starting. Although he is

South African and so alleviates the nationality concern in relation to Alatunji, he is white, a race
group that is not likely to be considered an Affirmative Action or a Historically Disadvantaged
Individual. It is clear however Johan is a far better external candidate.

INTERNAL CANDIDATES, NOMFUNDO KUNENE AND MTELO MYATI
Both internal candidates are Black Africans and citizens of Sadimba so it ticks the Affirmative

Action or Historically Disadvantaged Individual (HDI) box. Both also seem to be immediately

Developed by The CharterQuest Institute for 'The CFO Case Study Competition 2016'
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