BEE Partner, South Africa Economy Watch

South African local Chinese are in the “black people” which is designed to benefit previous apartheid disadvantaged groups. Are they are fully black now? Do they really benefit all the advantages of BEE Act? According to the report this morning, Chinese are not fully black.
Johannesburg - The National African Federated Chamber of Commerce and Industry (Nafcoc) has slammed a high court ruling that defines Chinese South Africans as black and gives them the full benefits of affirmative action legislation, claiming the black economic empowerment (BEE) “cake” was too small to share. Read the rest of this entry »

If the South African government wants to see the country become successful in the global environment, it needs the backing not only of the citizens of the country, but also of all the other key stakeholders. These include investors, business people, the trade union movement, as well as all financial and socio-economic institutions. Strategic thinking, whether at national or corporate level, depends on the ability of a government or management team to create and then harness a willingness amongst people to participate in outmanoeuvring the efforts of other countries and/or companies. Read the rest of this entry »

It is important for a government to fully understand the competitive dynamics of the global environment if it is to successfully take the country and its people forward. A political leader who is able to think and act locally, but is unable to do so on a global basis, is a liability to the development of the country. Advancing a country’s interests is all about economic and social development. A government that cannot create the right kind of climate for coordinated development is failing in its duty — not only to its electorate, but also to every single stakeholder. More and more national stakeholders throughout the world’s nations are beginning to demand this from their political leaders. Scotland is a good example. It has a mature, service-dominated economy with a proud tradition in all aspects of human endeavour far beyond its size or population. Yet the Scottish business sector recently challenged the nation’s political leaders, who themselves often call for domestic firms to become more globally competitive, to raise their own standards and play a greater role in assisting the country to advance its global competitiveness.” Read the rest of this entry »

In the New South Africa, it is interesting to align these six points with the concept of political neutrality, at least in the short t_omedium term. As an emerging nation builds itself and seeks to create for itself a desirable position in the world’s economic rankings, its entire focus should be orientated towards that purpose. Nothing should distract it from achieving its goal. Its resources, both human and otherwise, must be channelled into creating the right kind of society that will provide prosperity to the citizens of the country Political and social distractions channel resources away from the efforts of global economic and business competitiveness. The leaders of the country must be concerned with their own nation first, before they can deal with issues in other countries. Read the rest of this entry »

Let’s take a look at them and interpret each in terms of an emerging country like South Africa, which aims to become a competitive nation in the world rankings.

According to Sun Tzu, in a nation-state that is seeking to compete in the global arena, the development of a proper strategy is vital to the future welfare of the people of that country. Leaving a country’s economic future in the hands of a political manifesto may well satisfy the aspirations of a political few; however, the development of a non-aligned strategy has a better chance of serving a greater percentage of the population and taking the country forward in its economic growth. Read the rest of this entry »

Sun Tzu’s advice to make one’s position unassailable assumes critical proportions for an emerging nation like South Africa, faced with stiff global competition not only from the well-established and First World nations of the world, but also from other developing countries. The world’s more advanced and wealthy nations are deeply entrenched in the global system, and manipulate it for their own benefit. They virtually control it, and have often come under intense criticism for practising double standards, particularly in their application of such issues as, for example, international trade.’

Other emerging nations, as well as the poorer countries of the world, also want their slice of the global pie and their share of global resources. They too possess a desire to improve the standard of living of their citizens, thereby improving their position in the global (or at least their region’s) economic rankings. For any emerging nation to successfully play the globalisation game, there are a number of strategic principles, identified by Sun Tzu, that should be followed. Read the rest of this entry »

If South Africa wishes to become a highly successful emerging nation, one that can seriously challenge for position in the world economic rankings and have its business corporations develop _agreater sense of competitiveness, a change in strategic outlook at both government and corporate level is required. This aims to outline the kind of approach an emerging nation like South Africa needs in order to enhance its competitive prowess at both national and corporate level.

Before a home-grown business organisation in an emerging economy can achieve a higher level of competitiveness, the condition_sin that country have to be conducive to competitive thinking.’ Read the rest of this entry »

Wing says that, since the time of Sun Tzu, the major conflict experienced throughout the world has remained the same, namely the struggle for ideological supremacy and the control of resources.’ In nation-states, and especially in the current global environment, _competition takes place for people, materials, technology and/or financial resources. A key principle in making one’s position unassailable is for the government of the day to view its nation as a complete and interdependable entity, and to take steps to ensure it survives as such. Sun Tzu said that it is not individually, but altogether, as a single and complete entity, that the people of the world face survival or extinction.’ Read the rest of this entry »

Investment No. 6: Integrate executive development with the strategy process

Given that Strategy is the process of putting an organisation into a more favourable position in the marketplace relative to its competitors by integrating customer needs, competitive realities and its own internal capabilities, proactive executive development will improve the chances of strategic success. This is because properly trained executives can design and deliver more effective strategies.

It is imperative that the talent pipeline delivers both the quantity and quality of managers who can guide the future strategic thinkin_gof the organisation. This prevents the planning process from getting too far ahead of the executive development process. It also means that the organisation does not rely on outside talent to fill key management positions. Read the rest of this entry »

Investment No. 3: Spend resources to secure your leadership pipeline

Any South African firm today is really an emerging globaliser. Therefore, it has to ensure that it can develop great leaders and, indeed, a succession of them. There is always the temptation for a senior executive or an executive team to focus on building a legacy based on their own policies and achievements, rather than _establishing a pipeline of leaders. Establishing a leadership pipeline is a strategic activity built over the long term and is the result of a _cumulative process. Read the rest of this entry »

Investment No.1: Invest in time and resources that take a global viewpoint

This does not necessarily mean having business representation in multiple geographies, but it does mean treating the world globally and not multi-domestically. South African business organisations need to take a global view of their business and understand the global dynamics of their industries, especially in relation to the development and implementation of company strategy and the search for competitive advantage. Even companies that are operating purely in the domestic business environment have to take this approach, as globalisation will impact on the way they do business. Part of this global viewpoint is being realistic. Read the rest of this entry »

One of the major problems facing strategic thinkers is the whole issue of competitive advantage. According to strategy guru Richard D’Aveni, in most industries the days of permanent competitive advantages are long gone, because of the nature of what he calls `hypercompetition’.² D’Aveni contends that the best one can hope for is an ongoing series of temporary advantages, and that that is wh_atstrategists should be aiming at. This has led many organisations to move from seeking immediate competitive advantage to the development of long-term relationships with customers in the belief that opportunities for the creation of advantage will arise within the relationship. Allied to this is the belief that customers are company assets that need nurturing, rather than income sources that are there to be exploited. Also, more organisations are beginning to place greater value on customer advocates than on powerful management teams. In terms of customer loyalty, greater emphasis is being placed on moving customers up the loyalty ladder, until they becom_e advocates of the company and its products.’ Read the rest of this entry »

South African business organisations now find themselves in a global environment that is characterised by a number of trends, which increasingly shape strategic thinking. Given that the object of business strategy is to continually place a company and its products in a more favourable position In themarket place relative to its competitors, and to do so where it matters most, namely in the mind of the customer, it follows that these trends should be considered by any South African strategist. Over the past decade, the global business environment has witnessed a major shift from mass markets, and even mass customisation, to micro-markets. This has had major ramifications for strategists, as many organisations either have had to reinvent themselves, or, at the very least, revisit the fundamentals of their business to take cognisance of this shift. McDonald’s is a good example.’ Read the rest of this entry »

11. Be prepared to adapt the supply chain

A company’s supply chain should reflect the strategic initiative it takes in its attempts to outmanoeuvre its opposition. Because the supply chain impacts heavily on costs, customer service, asset productivity and revenue, it must play a key role in company efforts at creating an ongoing, seamless transition of responsibilities. This means that customers should perceive a ‘business-as-usual’ focus. Essentially, the supply chain should be assisting the company in searching for competitive advantage, and sustaining it for as long as realistically possible. Read the rest of this entry »

The problem in most organisations seems to be that value innovation is kept at the corporate level and does not permeate the entire organisation. Employees need to see themselves as a critical resource in the job that they do, not just for the organisation, but also for themselves. Put simply, if an organisation creates an environment in which value innovation is encouraged and rewarded, the participating individual’s self-worth will improve, which in turn will have a positive spin-off on job satisfaction, job involvement, and, ultimately, customer satisfaction and loyalty. Read the rest of this entry »

8. Share wealth

According to holistic health guru Deepak Chopra, one of the fundamental universal principles is that of giving.” This principle works through a form of universal reciprocity, whereby the act of giving, in whatever form it may take, is returned to the giver. This reciprocity may not come from the recipient, but may find its way to the original giver via another source. In a business context, sharing wealth, particularly with one’s employees, in whatever form that may take, is a form of giving. The new breed of South African manager will find it particularly beneficial to enhance the talents, willpower and motivation of his or her employees by sharing the company’s wealth with them. South African companies have to have as many of their people as possible feel part of the company’s strategic initiative if it is going to be successful in tackling the opposition. Sharing the wealth of the company with employees rewards them for their endeavours and spurs them on to achieve even greater feats. Read the rest of this entry »

5. Leverage diversity

One of the most powerful tools of innovative thinking in the South African workplace is that of diversity. In South Africa, with its apartheid past, the temptation is to focus on cultural diversity in order to try to forge a clearer understanding between the various cultures of South Africa. The Rainbow Nation is well represented in business organisations, thereby presenting our companies with a great opportunity for the generation of ideas. However, the prudent manager will appreciate that workplace diversity also covers age, ethnicity, ancestry, gender, physical abilities and qualities, race, sexual orientation, educational background, geographical location, income, marital status, military experience, religious beliefs, parental status and work experience, amongst others. Read the rest of this entry »

3. Support meritocracy

Local companies coming from a previously isolated and uncompetitive economy that now find themselves competing with the world’s best need to develop a culture of recruiting and retaining the best brains available. They also have to consistently reinvest in their human capital. Global players such as Unilever, Shell, Toyota, SABMiller and the Fortune 500-listed organisations, which are pretty well entrenched in the global arena, have a larger pool of talent available to them because of the size of their operations and global reach. For home-grown South African organisations, the competition for human capital intensifies, as the brightest stars either emigrate or join the global players, who can give them access to their new employer’s global network. Read the rest of this entry »

2. Create a high-engagement workplace

Because modern business competition is more about a battle between rival workforces than it is about technology, innovation and strategies,companies coming from emerging market economies need all the intellectual input they can get in order to have a chance of becoming a serious player in the global marketplace. For that reason, the new breed of South African manager will have to find ways of harnessing the energy and intellectual capability of all the company’s employees and focus these on innovatively growing the organisation. Read the rest of this entry »

These are but two examples of a process that was repeated throughout the entire company with stunningly positive results. However, the key to success in an exercise of this nature lies in the extent to which management rethinks the view it has of its business, as well as the extent to which it is prepared to bring its people into the process. In the above examples, subsequent organisational climate surveys indicated a greater feeling of achievement and job-fulfilment in this organisation. Job satisfaction improved, as did customer loyalty. Ceteris paribus, a contribution was being made to the maximisation of shareholder value and a win—win relationship created between these two elements of modern-day capitalism. Read the rest of this entry »