[CommanderSock]

With a global financial slump, daily layoff announcements and major corporate implosions, businesses need all the help they can get to stay afloat. Though a seemingly unlikely source of economic guidance, the multimillion dollar Somali pirate operation off the coast of northeast Africa has plenty to offer struggling companies today. Here are 14 lessons your business can learn from the illicit but profitable Somali pirate trade:

1. Low Overhead: Somali pirates use nothing but the basics to run their business. They operate off of a mother ship — nothing more than an old fishing boat — from which they launch speed boats that handle the actual attacks on the targeted vessels. They carry hooks, ladders and basic Somali military weaponry to achieve their goal of infiltrating the victim ships.

2. Diversified Labor Force: The Somali pirate labor force is split into three main groups. According to BBC analyst Mohamed Mohamed, their pirate gangs are comprised of ex-fishermen, which are considered the brains of the operation due to their knowledge of the ocean waters; ex-militia, which have fought for former Somali warlords and handle the muscle behind the operation; and technical experts that operate the necessary high tech communications equipment, such as GPS, satellite phones and military hardware.

3. Flexible Business Operations: The pirates frequently move their central operations from port to port for several reasons: one, to achieve proximity with targeted vessels; two, to keep naval ships at a distance; and three, to increase their reach.

4. Dominant Market Share: The International Maritime Bureau estimates that 30 percent of all pirating activities worldwide come from Somali operations.

5. Good Location: According to the Associated Press, more than 10 percent of petroleum shipments to North America and Europe travel through this region.

6. Access to Key Industry Knowledge: Somali expats living in nearby Middle Eastern port cities notify pirates of large vessel departures with valuable merchandise.

7. Good Distribution of Profits to Employees and Shareholders: The demise of most organized crime operations normally comes from infighting and internal power struggles. Somali pirates have a unique distribution of profits that reaches friends, family and clan members across the region. There have been few reports of conflict from within Somali pirate groups.

8. Running a Cash Business: The best business is one in which you operate with cash. Somali pirates of course do not accept credit cards or checks, nor do they offer terms. Everything is handled in cash — which provides for a very healthy cash flow statement.

9. Negotiating to Optimize Return on Inventory (Albeit Stolen): Somali pirate spokesman Sugule Ali commented that the pirates are not greedy — they're just trying to protect themselves from hunger. Although a $20 million ransom might seem like a ridiculous sum to feed themselves, the pirates have become effective negotiators in asking for amounts that will get paid.

10. Reinvesting a Big Portion of Profits into the Business: The Somali pirates have grown their business from a small fleet of fishermen trying to keep international boats from poaching their waters to a multinational, multimillion dollar enterprise by reinvesting profits into the purchase of new a mother ship, more speed boats and sophisticated weapons.

11. Competitive Prices: Though limited to the shores of northeastern Africa, the Somali pirates have an understanding of the world economy. Several affected companies and governments have argued that it is sometimes cheaper to pay the ransom than to mobilize a national navy or hire private security to properly patrol the region’s waters.

12. A Repeatable Business Process: The pirates began operations in the late 1990s patrolling their fishing waters. In just under a decade they have improved on their process of overtaking ships by sheer repetition. In 2008 alone, it is estimated that they have seized over 90 boats.

13. Good Inventory Turn: Out of the 90 ships the Somali pirates seized this year, they only have 17 left on inventory.

14. Diversification: As with any other major corporation, growth and stability come from diversification. It has been rumored that the initial Somali pirating operations were funded by wealthy Dubai businesspersons a few years ago. Somali pirates are now diversifying their operations by lending money to those same executives that have lost millions of dollars in the current financial meltdown.

Think the Somali pirates have other lessons to offer struggling businesses? Leave your ideas in the comments box below.


Source:
http://www.insidecrm.com/features/somal ... es-112408/

[martin14]

nice work if you can get it..

just those pesky Seals now running around.

maybe they should hire some Newfs to come out and take care of those Seals

[ziggy]

There useing Israeli's now.

They say it's good work after leaving mandatory military training and they get to see the world.
They shoot back too,repelled an attack the other day.

[raydan]

ziggy ziggy:

There useing Israeli's now.

They say it's good work after leaving mandatory military training and they get to see the world.
They shoot back too,repelled an attack the other day.

Israel has a good reputation of not negotiating with kidnappers or terrorists.
They don't fool around so these guys (and girls) learned at the best school.

[bootlegga]

Nations there need to learn from the efforts to eradicate pirates in the Strait of Malacca.

http://www.time.com/time/world/article/ ... cnnpartner

[CommanderSock]

Somali pirates aren't your run of the mill terrorists.

So far, Seals, Israelis, China, India, etc piracy has still increased by 200% since this time last year.

The pirates aren't looking for confrontation, they employ hit and run tactics. They are business men with guns.

And I misunderstand why all the western venom against pirates. The US was using privateers to rub British merchant and trade vessels in the 1700 and 1800s. "Privateers". Quite a few American aristocrats became wealthy from this practice that the US government fully backed. Piracy, theft and kidnapping, you bet your ass!

I see Somali piracy as a bit of raw justice. We've been raping Africa for some 500 years, our acestors didn't ask the Congolese "want to trade that rubber?”, No, no, no, We took it from them, whether they liked it or not. Now, well....pirates are taking too...

We didn’t ask them if they wanted our toxic waste in their waters either “mind if we dump those toxic chemicals off your shoreline?”, no questions, we just did it.

I see it as a fair exchange.


Just looking at it from the perspective of the underdog pirates.

[ziggy]

Most of us have evolved these days so call it what you will but it's more like terrorism,and the israelis will change the tide as it's known now they will shoot back,with just pistols like they did the other day.

And why are you leaving out all the aid we sent to Somalia?
That doesnt count or what?
Dont try lay a guilt trip on anyone,they should just start blowing these guys out of the water first chance they see an RPG launcher or any signs of guns.
Were not to blame for this but as soon as you say these terrorists are underdogs you have shown your bias.

[bootlegga]

ziggy ziggy:

Most of us have evolved these days so call it what you will but it's more like terrorism,and the israelis will change the tide as it's known now they will shoot back,with just pistols like they did the other day.

And why are you leaving out all the aid we sent to Somalia?
That doesnt count or what?
Dont try lay a guilt trip on anyone,they should just start blowing these guys out of the water first chance they see an RPG launcher or any signs of guns.
Were not to blame for this but as soon as you say these terrorists are underdogs you have shown your bias.

We are in part to blame for the problems in Africa. Dubya and the Us backed the Ethiopian invasion in 2006 that wiped out what little government Somalia had. Western fishing ships have over-fished the coast of Somalia ever since 1991, when the government collapsed.

Why do most people accept that we have to help rebuild Afghanistan, but not Somalia? Somalia is a failed state, and without help, piracy there will continue.

Read these two articles and maybe you'll change your mind;

How Somalia's Fishermen Became Pirates

http://www.time.com/time/world/article/ ... ine-bottom

How to Defeat Pirates: Success in the Strait

http://www.time.com/time/world/article/ ... cnnpartner

I do not for one second condone anything they do, but when the choice is starve or become a pirate, you become a pirate. Look at the problems in the Strait of Malacca. For years, it was far worse than the Somali coast.

$1:

Defeating the pirates, however, took more than sea power. Combined with the greater military deterrent, many potential pirates' outlook in the region improved. Analysts believe that some of Malacca's pirates came from the Indonesian territory of Aceh on the far western tip of the island of Sumatra. That region had been torn apart by a three-decade battle between a local Islamic separatist group and the Indonesian military, isolating Aceh and annihilating economic opportunities. Desperate Acehnese took to piracy as the only way to earn a living, while arms-smuggling operations spawned by the conflict added an organized, criminal element to the strait. But in 2005, the two parties finally signed a peace accord and normalcy returned to Aceh, opening up less-risky job options on land. "The impetus for piracy began to change," says Alex Duperouzel, managing director of Background Asia Risk Solutions, which provides security for vessels. "You have to solve the problem on land, or you don't solve the problem."

If Somalis had a way to feed their children, piracy would stop (or at least noticeably slow down). This article says it all;

Analysis: To Beat Somalia's Pirates, Fix Their Country

http://www.time.com/time/world/article/ ... ine-bottom

[ziggy]

Well lets let them continue to pirate the foreign aid ships then,im not going to read all that boot,i Have no ties to Bush or the states so lay the guilt trip on someone else.

I have no smpathy for terrorist sympathizers or people that use this as an excuse to bring their hatred for the USA out hoping some others will hop on the bandwagon.

Start blowing them out of the water so aid ships can arrive,then well talk.

[CommanderSock]

$1:

And why are you leaving out all the aid we sent to Somalia?
That doesnt count or what?
Dont try lay a guilt trip on anyone,they should just start blowing these guys out of the water first chance they see an RPG launcher or any signs of guns.
Were not to blame for this but as soon as you say these terrorists are underdogs you have shown your bias.

They are underdogs no doubt about that. They have no large ships, to match the armadas patrolling the African coastline. In the olden days of Piracy the pirates had individual ships to match those of great powers (if not fleets), now they use fishing boats and inflatables. They use rusty AK-47s and RPGs from the old soviet republics. Shit, if one of them dropped their pocket knife it might sink their boat!

Secondly, we are not sending Aid to Somalia, Somalia has no government! We send aid to Putland, which is its own territory. Somalia has no functional government to send the aid to. It all goes to Putland in the hope that it gets to Somalia. However it is all looted because Putland is not part of Somalia (but I’m not sure how many folks realize that). The aid you may be speaking of are the independent workers who are there volunteering to work in small clinics in the border regions.
The only guilt trip one might experience is the one who brings guilt up, I’m not trying to make anyone feel guilty. I don’t think it matters who’s guilty, for the pirates, business will continue, or as they say “business as usual”.
Thirdly, we as Canadians are not to blame for “this” but as I said historically big powers have bullied little countries.

Fourth, see my last sentence about us not being guilty as Canadians. Well, the USA clearly is, if they hadn’t (literally) forced and funded Ethipoia to topple Somalia’s newly unified government, this would NOT be happening. The Islamists of Somalia despise piracy. If you knew anything about that part of the world you would not associate pirates with terrorists. I smirk when I hear Al’Queda = Somali Pirates. That’s like saying, US Federal Gov = New York Mafia, or Russia = Russian Mafia.

So, again, we reap what we sew.

Sorry but the truth is truth.

Israeli commandos will shoot, good for them, if the pirates are good business men how will they adapt? Will they adapt or will they go out of business?

Well, the quarterly piracy report for 2009 will tell.

[ziggy]

I think you will see the pirate/terrorist mortality rate drop big time in the next few months,I cant believe that it went on this long unfettered.
I look at what happens now and in the future,if we as a species are going to move on then you cant stay locked in the past.

And once again,your trying to lay it on as a guilt trip weather you know it or not,I could give 2 shites what the Islamists of Somalia think.
We all know that once people have their head in the trough that it's hard to JERK it back out again.

I havent been to Somalia but I have been all over the world,I know what we are capable of as human beings.

Piracy is terrorism,simple as that,these arent brave pirates boarding with swords and daggers like the old days you keep mentioning,there terrorists with RPG's and should be dealt with before they even reach the ship,at least the Israeli's in the last attempt let them get a ladder up before starting to shoot,no casualties either so it was like this is what you get when you throw a boarding ladder up on an innocent what you thought was unarmed ship.

[CommanderSock]

Did you read the article or did you just quickly like most go stright into posting how disguting they are, what cowards they are, how evil they are, and what dirty rotten terrorists they are?

The article is about their business tactics not about guilt trips Israeli commandos, and foreign navies.

Again, let's bring the article back in 2009 Summer and see if the attacks have stopped. If they have, the business is dead and pirates have gone under and had to lay off their employees and cease operations.

If, on the other hand business is still booming, then perhaps they are more versatile businessmen than you give them credit for.

I put my money on the latter.

[ziggy]

Im a speed reader dude,I can read that in like 15 seconds so I dont skim like most.
Those arent really sound bussiness practices either,I dont see how you figure they are unless you have a bit of a biased agenda which it looks like you do.


They wouldnt last 6 months in Alberta where they would actually have to work for a living.

[bootlegga]

ziggy ziggy:

Well lets let them continue to pirate the foreign aid ships then,im not going to read all that boot,i Have no ties to Bush or the states so lay the guilt trip on someone else.

I have no smpathy for terrorist sympathizers or people that use this as an excuse to bring their hatred for the USA out hoping some others will hop on the bandwagon.

Start blowing them out of the water so aid ships can arrive,then well talk.

For someone who just said "Most of us have evolved", it doesn't sound as if you have either. Life is cheap right? Kill 'em all and let God sort them out? Because that sure sounds like your POV.

None of this really is about blame. Who's fault it is right now is totally irrelevant. What's important is finding a solution (fix the problem, not the blame).

If you think killing people indiscriminately is going to solve the problem and not add to them, you're deluded. Killing Saddam Hussein didn't seem to stop people from blowing themselves up in markets in Baghdad did it?

No, the solution is to fix the problems that exist in Somalia. If we fix the problems on land, we'll fix the problems on the sea. There was a far worse problem in the Strait of Malacca just two years ago. Now, piracy there has been almost totally eradicated (2 attempts in all of last year, when they used to have DOZENS). Once again...

$1:

Defeating the pirates, however, took more than sea power. Combined with the greater military deterrent, many potential pirates' outlook in the region improved. Analysts believe that some of Malacca's pirates came from the Indonesian territory of Aceh on the far western tip of the island of Sumatra. That region had been torn apart by a three-decade battle between a local Islamic separatist group and the Indonesian military, isolating Aceh and annihilating economic opportunities. Desperate Acehnese took to piracy as the only way to earn a living, while arms-smuggling operations spawned by the conflict added an organized, criminal element to the strait. But in 2005, the two parties finally signed a peace accord and normalcy returned to Aceh, opening up less-risky job options on land. "The impetus for piracy began to change," says Alex Duperouzel, managing director of Background Asia Risk Solutions, which provides security for vessels. "You have to solve the problem on land, or you don't solve the problem."

If we a tenth of what we're doing currently in Afghanistan for Somalia, this problem will largely resolve itself. If we start killing everyone we find, then the Indian Ocean will fill with bodies from both sides.

Do we really need to start another war? I think there's plenty of killing on this planet already.

[ziggy]

Killing pirates/terrorists will solve the problem,I'll bet money on it,they wont prey on a armed ship and if they do then they get what they get.

Holding innocent sailors ransom should get them nothing less then blown out of the water.

I guess we will have to agree to disagree.