D.Comm. / The South African automotive sector and its various role-players are caught in a battle for survival. A variety of national and international challenges are being faced. The international change agents are in the form of globalisation and trade liberalisation. These are forcing the country to open up its previously protected automotive industry and become exposed to global competition. These and other developments are laying bare the reality that South Africa and its automotive industry will, in its current format, not be able to withstand the competitive pressures. South Africa's national competitiveness is generally weak, with the country exhibiting particular shortcomings in the area of human capital development, human capital deployment, the inability to sustain growth and attract investments, as well as the creation of wealth in general. The local automotive industry is also under significant pressure through global automotive developments as well as its own lack of competitiveness. The lack of competitiveness is mainly due to historic protectionism and disadvantages of a small local market. Survival depends increasingly on a rise in South African automotive exports. This will, however, require that a variety of particular weaknesses are dealt with effectively, such as the poor industrial relations prevalent in the industry and the widespread lack of Best Practices. South Africa has no choice but to transform on a national, industry and organisational level if the automotive industry is to survive or prosper in the new millennium. The local automotive industry is unlikely to survive if the country's national competitiveness is not significantly improved

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M.Comm. (Business Management) / Corporate Entrepreneurship is often described as a process that goes on inside an existing organisation and which may lead to new business ventures, the development of new products, services, or processes, and the renewal of strategies and competitive postures. As such, it can be seen as the sum of an organisation’s innovation, venturing, and renewal efforts. Corporate Entrepreneurship can be regarded as the innovation of products, services and processes and the formation of new business enterprises are crucially important to every industry and economy. Innovation and new business development can be initiated by independent individuals or by existing enterprises. The latter is referred to as Corporate Entrepreneurship, which is ever more considered as a valuable instrument for rejuvenating and revitalising existing companies. It is brought into practice as a tool for business development, revenue growth, and profitability enhancement and for pioneering the development of new products, services and processes. With change today being consistently continuous, unpredictable and in some cases abrupt, failure to anticipate change can and in most cases will result in organisational stagnation. Corporate Entrepreneurship is a tool that allows organisations to revitalise and rejuvenate a competitive advantage and simultaneously create new value for customers through innovation, business development, and renewal. New value creation is only possible through high levels of entrepreneurial activity. Imperial Automotive Dealerships division is a leading motor retail division within the Imperial Automotive group, providing customers with a range of integrated motor vehicle usage solutions. The South African operations represent passenger, light, medium and heavy commercial brands and include, motor vehicle finance, insurance and related products and services. The purpose of this dissertation is to assess the climate of Corporate Entrepreneurship within the Imperial Automotive Dealerships division. This was achieved by means of a literature study and a measurement of thirteen constructs related to an entrepreneurial climate. The empirical evidence indicates that there are significant statistical differences that exist between employees in management roles who are appointed to the different departments within the Dealerships division of Imperial Automotive. The results of the study revealed that the perceptions of Corporate Entrepreneurship are differed among employees who are customer facing, that is, the Dealer Principals and Sales Managers to those employees in a management position who are more operational or financially orientated, such as the Departmental Managers. The empirical study affords Imperial Automotive Dealerships division the opportunity to recognise the results and recommendations and encourage a better entrepreneurial climate. A clear and committed focus on Corporate Entrepreneurship within the Imperial Automotive Dealerships division will result in a sustainable creation of value for all stakeholders which remain central to the automotive business units’ activities.

The world is experiencing an era which has been termed the “knowledge age” or the “knowledge economy”. In this new context, knowledge is the primary commodity, and knowledge flows are regarded as the most important factors in the economy. The management of knowledge flows within organisations has become a crucial activity because many of the activities of organisations and the broader economic and social life today are knowledge-driven. In recent years, this managerial activity has become known as Knowledge Management. Equally important are the associated Knowledge Management implementation strategies. Driven by a need expressed by the South African Motor Vehicle Industry for a knowledge management implementation strategy tailored to their needs, this research aimed to develop a knowledge management implementation strategy suited to the needs of this industry. Following an extensive literature survey and a study of the target industry using Duffy’s Knowledge Benchmarking Questionnaire, a model of knowledge management implementation is proposed that is suited to the needs of the South African Motor Vehicle Industry. The model consists of three main interlinked components: Knowledge Management of the Organisation, People, and Infrastructure and Processes. Furthermore, the model recommends a holistic approach to managing knowledge. The critical success factors of the model were tested by means of a survey of industry opinions that validated certain aspects of the model and motivated for changes in others. Additionally, despite the focus of the model on the target industry, it is considered sufficiently appropriate for use by other organisations.

South African vehicle manufacturers are under immense competition from vehicle manufactures from India and China. The global financial crises also put these organisations under intense pressure and this resulted in these organisations having to start seeing the need to focus on issues that affect customer retention. The way that business is done in the 21st Century is forcing organisations to implement strategies that are geared towards increasing customer retention and growing the business. Organisations need to build relationships with their customers with the hope that these customers will in turn extend their stay with the organisation when an opportunity to replace their vehicles arises or keep on servicing with them. In order to establish a good relationship with customers, organisations need to understand customer expectations by being customer orientated and by providing customers with value. The primary objective of this study is to improve customer retention for a selected vehicle manufacturer after the warranty and service plans have expired, by investigating the relationship between customer service quality, customer loyalty, and customer retention. The results obtained from the 64 respondents who participated in the survey revealed that although all the above-mentioned variables play a role in increasing customer retention, customer service quality exerts the most influence. The study also highlights areas that should be improved, as well as recommendations on how to improve them. Recommendations for future research are also provided.

This research report examines the changing nature of the organisation of work, in particular, the production methods in the South African automotive industry. The competition in the local and global markets has increased significantly in recent years. The increased complexity of products and individuality of customers pose strong challenges for the automotive manufacturers, (OEM – Original Equipment Manufacturers), with regard to product Quality, Cost and Delivery. For these challenges, Volkswagen Group South Africa, has defined objectives that, when met, will contribute towards establishing it as a leading automotive brand. It is aligned to the Volkswagen Group AG, Strategy Mach18, increased vehicle production and the creation of long-term delighted customer base. To achieve these objectives, the Volkswagen Production System (VPS) is an imperative component of the Volkswagen Group South Africa (VWGSA) production strategy. The core elements consist of, “Cycle”, “Flow”, “Pull” and “Perfection”. These are the four fundamentals on which Lean Manufacturing is built, as first introduced and described by the Toyota Production System. Lean manufacturing is a whole-systems approach that creates a culture in which everyone in the organisation continuously improves the process and production. Volkswagen Group South Africa is facing increased competition in the South African and global marketplace. A search of the internet revealed that extensive research has been conducted into Lean manufacturing in South Africa. However, no research is noted with regard to the sustainability of Lean manufacturing at Volkswagen Group South Africa. The aim of this study is to analyse the sustainability of the lean manufacturing implementation at VWGSA.

This study aimed to evaluate the critical factors influencing project success at an automotive OEM in the Eastern Cape. The main purpose of this study was to evaluate the critical success/failure factors in project management at an automotive original equipment manufacturer (OEM) and to compare the results to similar studies conducted in various industries and under different socio-economic, political and cultural conditions. The research methodology for this study included a literature review of previous studies as well as insights from various authors highlighting points deemed crucial for project success. A survey was conducted at an automotive OEM to determine which factors had the greatest influence on project success; respondents were asked to rank their views on a Likert Ranking Scale. An online survey was used to capture all responses. The data collected was analysed using statistical software (Statistica Version 10.0). The empirical study was conducted on 52 employees involved in projects at the OEM; the study was carried out across various departments including Purchasing, Logistics, Quality, Engineering, etc. The final process of the study included an evaluation of findings. On the basis of the survey responses received, it was possible to identify critical success factors in project management that are related to the automotive OEM. These results were used to draw conclusions and develop various recommendations. The conclusions centered on the project success factors defined in the survey. The results were then compared to previous studies, and discrepancies between survey findings of the current study and those of past studies were discussed. The recommendations focused on the top three items identified in each factor group. The results of both past studies, as well as the present study highlight the crucial role the project manager plays in project success. Good co-ordination skills, efficient management of resources and effective leadership were identified as key characteristics of successful project managers. Proper communication was identified as one of the most crucial points in project teams. This study revealed that the ability of the project team to handle unexpected crisis is also an important contributing factor towards project success, along with effective monitoring. Top management support was the most crucial factor towards project success in the factors related to the organisation; this is similar to studies done by previous authors.

It is estimated that each direct job in the automotive industry supports at least 5 indirect jobs in the global community, resulting in more than 50 million jobs to the global auto industry (Ellis, 2006). In South Africa the automotive sector, as an employer, is widely viewed to be second only to mining. In the automotive industry globally, it is being discovered that knowledge, as opposed to “data” or “information”, is becoming harder to locate as a knowledge-bleed is occurring due to the phenomenon of the “brain drain”, retirement of experienced professionals, changing work behaviours among the younger generations and the general lack of infusion of new talent into the South African automotive industry over the past decade (Liebowitz, 1999). This realisation has spawned a growing interest in the concept of knowledge management (KM). KM is the development of tools, processes, systems, structures and cultures explicitly to improve the creation, sharing and use of knowledge critical for decision making. The effective use of KM helps organisations to improve the quality of their decision making and correspondingly to reduce costs and increase efficiency (Kinicki and Kreitner, 2008). Most automotive Original Equipment Manufacturers (OEMs) have made some attempt at KM initiatives, and these attempts have been well-documented. However, among the automotive component suppliers, limited evidence exists of attempts at KM (Piderit, 2007). No standard KM application framework could be established in the literature for industry practitioners in automotive component manufacturers within the Eastern Cape. The aim of this research study is therefore to develop a framework for the application of KM in automotive component manufacturers within the Eastern Cape. The research consisted of a study of the knowledge management literature and the subsequent development of a knowledge management framework and empirical evaluation of the framework in the automotive component supply industry of the Eastern Cape. In conclusion the report presents a knowledge management framework which converts a company assessment to recommended corrective actions to be implemented and also presents the author’s findings, conclusions and recommendations derived from the study.

South Africa’s transition to democracy in 1994 has heralded a re-entry into the global economy. This has meant that for the first time in more than 40 years of isolation because of “apartheid” policies, South African companies are facing global competition. The South African automotive industry has undergone major changes over the past few years. All the assemblers are now either wholly or partially owned by overseas parent companies. Under globalisation, foreign ownership of locally owned suppliers has also been escalating. The Behr strategy and values were examined to determine whether they are consistent with companies operating in the international environment. The literature study was conducted by using textbooks, periodicals and the internet. The empirical study was conducted by means of a questionnaire addressed to the Behr executives. The results of this empirical study were then directly correlated to the theoretical aspects. Distinctive competences, market growth and product development strategies were identified and comparisons made with theory.

The research undertaken in this study was to identify the strategy needed to be adopted by the East Cape Motor Industry Cluster (ECMIC) in order to develop the competencies of its Team Leaders. v Hamel and Prahalad (1994: 28) are of the opinion that the focus of a company must move from current market share, to the share of tomorrow’s opportunities that the company can reasonably expect to gain. The company must therefore consider what it can achieve with its existing set of competencies, and what new competencies need to be acquired in order to prosper in the future. The development of competencies is thus deemed to be critical to the South African economy as the various local automotive manufacturers enter the export field. The ECMIC has traditionally been considered the heart of the automotive industry in South Africa with three of the major manufacturers located in the Nelson Mandela and Buffalo City Metropoles. In order to support these manufacturers, a vast number of component manufacturers and service providers have been established to support the automotive manufacturers both in the ECMIC and in other areas of the country. Since the establishment of a democratic South Africa and the removal of sanctions, the automotive industry has started to establish itself globally. This study will undertake a literature study of the application of competencies in the workplace, teams and team leaders and how competencies are applied in the ECMIC. The results of an empirical study into core competencies in the ECMIC will be used to elucidate a set of competencies which will be used to develop a strategy utilising the competency approach in team leaders in the ECMIC.