BEE Partner, South Africa Economy Watch

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 »

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 »

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 »

Fortunately, management realised that if things continued in the _way they had for decades, the company would be vulnerable to attack by global predators. This was of particular concern, as foreign competitors were beginning to eye South Africa’s small but potentially good pickings. In addition to this, global customers such as Johnson & Johnson were beginning to demand justification for their local _subsidiary retaining its South African supplier, instead of plugging into the global supply network.

Essentially, it took threats from major customers to bring home to this company the gravity of the situation. Persuading management to think carefully on how they saw themselves, the company and its role in the marketplace, solved the problem. After careful thought, management reached the conclusion that its company was more than simply a manufacturer and distributor of packaging. Read the rest of this entry »

2. Global reach

Q Is South Africa’s reputation as a nation to buy into — whether the customer is a foreign investor, a tourist, a potential immigrant or from one of the other customer categories — strong and solid throughout the world? In this context, can branding be a powerful tool? Finland, for example, embarked on a successful campaign to enhance its image and position as a country associated with hi-tech innovation. It wanted to assist its companies to become more competitive in the United States, and used branding to improve its image. Read the rest of this entry »

The obvious starting point for the marketing of South Africa is to decide what the marketing objectives are. This presupposes that the right ‘product‘ has been created to suit the requirements of the target customers. What does the nation not just want, but need in order to attract tourists, investors, immigrants, etc.? Fancy slogans and logos will do nothing for the country if South Africa Inc., the product, is not right, and the strategists have not paid sufficient attention to what the country needs to achieve in this context.

Moreover, the people of South Africa should be brought into the process to support this initiative, and they have to be made aware of the importance of their role in trying to attract and keep customers for the country. Internal marketing therefore has a role to play in shaping the perceptions, beliefs and actions of the citizens of this country in a collective effort to make the country more competitive in the global marketplace. Read the rest of this entry »

A well-known marketing adage states that a bad product will not last very long in the marketplace. No amount of sales, advertising or promotional effort will do it any good if people simply do not want to buy it. As any first-year marketing student knows, and in the words of famed marketing guru Philip Kotler, the marketing concept states that ‘the key to achieving organisational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors’: In today’s bitterly contested global marketplace, countries have customers and competitors too. South Africa is no exception. Read the rest of this entry »