Mongolia

MIS 648 November 6, 2006

Prepared by:

Rico JimenezHeather RyanJason Stanyer

Agenda

Background/Historical Information Business Venture 1 – PC Remanufacturing/Leasing Business Venture 2 – Cattle Tracking System

Background/Historical Information

Source: CIA Factbook, World Health Organization

Government Background

Gained independence from China in 1921, with Soviet assistance

Communist regime installed in 1924 Communist Mongolian People’s Revolutionary Party

(MPRP) won elections in 1990 and 1992 Democratic Union Coalition defeated the MPRP in

1996 MPRP returned to power in 2000 and produced a

coalition govt. in 2004 (mixed parliamentary/presidential)

Source: CIA Factbook, www.mongolianculture.com

Geographic Background

Situated between Russia and China Landlocked, with no coastlines Limited natural resources, including freshwater Topography

Vast semi-desert and desert plains, grassy steppe, mountains in west and southwest; Gobi Desert in south-central

Climate Desert Continental – large daily and seasonal temperature

changes - hot summer days, 60 degrees below Fahrenheit in winter

Source: CIA Factbook, World Health Organization

Demographic Background

Very nomadic – 50% of the population Population – 2,832,224 (July 2006 est.) 68% between ages 15-64 Median age 24.6 years Literacy rate - age 15+ can read and write – 97.8% Health

Infant mortality rate 55.45% - 46th out of 179 countries surveyed

Life Expectancy Male 62.64 yrs - 158 out of 224 countries surveyed Female 67.25 yrs – 162 out of 224 countries surveyed

Source: CIA Factbook

Economic/Industrial Background Traditionally based on herding and agriculture (42% of labor force,

2003) GDP

20.6% agriculture 21.4% industry 58% services Per Capita - $1,900 (2005) Real Growth Rate – 6.2% (2003)

Labor force – 1.488M Unemployment rate – 6.7% (2003) Population below poverty line – 36.1% (2004 est.) GINI Index – 44 (1998) Inflation Rate - 9.5% (2005 est.) Settled $11B w/Russia in 2003

Source: CIA Factbook

Communications Background

Telephones Main lines in use – 142,300 (2004) – 6.5 phones for each

thousand persons Mobile/Cellular – 404,400 (2004) – two wireless providers

Internet Hosts - 192 (2005) ISPs - 5 (2001) Users - 200,000 (2005) – approximately 7% of population

Source: CIA Factbook, www.witsa.org/profiles/monita.htm

Why Mongolia?

Young nation with a relatively healthy and well-educated population

Close proximity to Asia-Pacific region Good relations with Russia and China,

including most-favored-nation-status Cheap labor force Open economic policy Govt. and Donor support for ICT

development

Source: CIA Factbook, World Health Organization

Foreign Investment

Over 1400 foreign companies, representing 70 countries More than 300 million US dollars Majority are Chinese, Japanese, Russian and US

companies Trade and Food sectors are leading areas of

investment

Mongolia Web Sites

Mongolia’s Official Tourism Website Mongolia’s US Embassy Website

Business Venture 1

PC Remanufacturing and Leasing Program

Need

No data on number of computers in schools/educational institutions (expected to be low)

Low income levels – not allowing for purchase of new PCs

Low cooperation between govt. and educational institutions in this area

Low levels of education in ICT

Proposal

Remanufacture old PCs from external sources

Sell systems to citizens at low costs Lease systems to educational institutions,

allowing for updated systems as budgeting allows

Start up internship programs were University Students teach and mentor elementary students in use of technology

Funding

Computers Donations from businesses, local and abroad Educational institutions – primarily abroad Purchase cheaply from PC recycling companies

Software Donations from software companies private business Academic licenses for educational institutions

Monies Possible partnership with govt. of Mongolia Charitable organizations Bank loans Partnerships with educational institutions

Business Venture 2

Cattle Tracking System

Source: Mongolian US Embassy website

Government

http://www.mongolianembassy.us/eng_government/government7.php

Create favorable legal environment Sustainable management for

pasture utilization and ownership increase fodder production improve the resilience of livestock to natural disasters

through enhancing quality of veterinary service selected breeding and introducing cattle insurance system

Source: www.wikipedia.com

Radio Frequency IDentification (RFID) Automatic identification method RFID tags or transponders. Can be attached to or incorporated into a

product, animal, or person Tags contain silicon chips and antennas Passive tags = No Internal Power Source Active tags = Internal Power Source

Source: www.cattle-traq.com

Active vs Passive

Passive Very inexpensive Short Range (feet)

Active Roughly $10/tag Long Range (hundreds of yards)

Source: http://www.telegraph.co.uk/

The Tale of 2000

850,000 cattle, horses and other livestock perished

350,000 animal deaths were reported in one week Temperatures on the steppes dropped to negative

60F Limited Veterinary Care Many families lost entire herds No Insurance Theft became common

Current Usage

Canadian Cattle Identification Agency bovine's herd of origin used in Wisconsin and by US farmers on a

voluntary basis. USDA developing its own program

Colorado Elk Herd CWD

Why?

Identification for New Governmental Insurance Programs

Theft Prevention Disease Eradication/Prevention/Tracking Animal Tracking During Winter Storms Saving even a few cattle or recovering costs

will pay for full system implementation Paves way for future expansion

Funding

Bank loans Partnership with insurance companies

Questions