Thesis (MBA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: “The business format, franchising, can be defined as the granting of a license for a predetermined financial return by a franchising company (franchisor) to its franchisees. The grant entitles them to make use of a complete business package, including training, support and the corporate name which include all branding and logos. Through this enabling the franchisees to operate their own businesses to the same standards and format as the other outlets in the franchise chain” (Maree, 2007, p. iii). Franchising has grown in popularity for entrepreneurs and business people to start a business, a professional career and a way of creating employment. It is seen as a proven business system that is sold to a franchisee as “best practices knowledge” by the franchisor (Maree, 2007). Although the “best practices” approach is at the core of franchising very little research was found to exist that investigates the factors that influence the success or failure of franchisees. The lack of formal research in this regard gave rise to the research question as to what the factors are that will contribute to the failure and subsequent liquidation of franchise businesses in the Western Cape. Current franchise owners and entrepreneurs considering to enter into the franchising sphere need to ensure that they not only understand what factors will influence the success of their businesses, but possibly more importantly, they need to comprehend which are the factors that could potentially lead to the failure of the franchise business. Based on the theoretical research and the data gained from the questionnaire analysis, one can conclude that the majority of the factors discussed in this report contribute towards the failure of franchisee businesses in the Western Cape. / AFRIKAANSE OPSOMMING: Die besigheidsvormbekend as ‘n eksklusieweagentskap of konsessie (“franchise”) kanomskryf word as die verlening van ‘n lisensie of reg teen ‘n voorafbepaaldefinansieletariefdeur die konsessiegewer (“franchisor”) aansykonsessiehouers. Hierdie vergunningmaakdie konsessiehouersgeregtig op die gebruik van ‘n volledigebesigheidsmodelwatopleiding, ondersteuning en die maatskappynaam, sowel as allehandelsmerke en logos, insluit. Hierdeur word die konsessiehouers in staatgestelomhuleiebesighedevolgensdieselfdestandaarde en formaat as die anderafsetpunte in die konsessiegroeptebedryf (Maree, 2007) Die verskaffing van eksklusieweverkoopsregaan entrepreneurs en sakemensewathuleiebesighedewil begin, ‘n professioneleloopbaanwilbeoefen en werksgeleenthedewil skep, het in die jongstetyd al gewildergeword. Dit word as ‘n bewesebesigheidskonsepbeskou en word deur die konsessiegeweraan die konsessiehouer as “bestegebruikskennis” verhandel (vertaaluitMaree, 2007).Alhoewel die “bestegebruik”-benadering die kern van ‘n konsessie is, is slegskarigenavorsingmet betrekking tot die faktorewat die sukses of mislukking van konsessiesondersoek, tans beskikbaar. Die gebrekaanformelenavorsing in hierdie verband het aanleidinggegee tot die navorsingsvraagoorwatterfaktorebydraendkanwees tot die mislukking en gevolglikelikwidasie van konsessies in die Wes-Kaap. Huidigekonsessiehouers, asook entrepreneurs watditoorweegom die terrein van eksklusieweagentskappetebetree, moetnie net die faktorewat die sukses van hulbesighedesalbeinvloedverstaannie maar, stellig van groterbelang, die faktorewatmoontlik tot die mislukking van die besigheidkan lei, identifiseer en begryp. Na aanleiding van die teoretiesenavorsingwatgedoen is, asook die inligtingwat van die vraelys-ontledingsbekom is, kan tot die slotsomgekom word dat die meerderheidfaktorewat in hierdie werkstukbespreek is, tot die mislukking van eksklusieweagentskappe in die Wes-Kaap bydra.

Thesis (MDF)--Stellenbosch University, 2012. / In recent years South Africa has started to embark on policies to increase FDI and boost the country’s manufacturing sector. FDI inflows are important for their perceived role of bridging the savings-investment gap, while increasing the country’s manufacturing capacity will help diversify the economy and could contribute towards job creation. The literature has revealed that the debate on causality between FDI and trade has not yet been resolved. Furthermore, the FDI/trade relationship has not been adequately addressed in African literature. The research study has investigated the causal link between FDI and manufacturing exports and FDI and manufacturing imports in South Africa for the period 1994 – 2011. Unit root tests of stationarity were performed on the respective time series and it was found that the included variables are non-stationary at their levels, but stationary at first differences. Tests of cointegration revealed that FDI and manufacturing exports as well as FDI and manufacturing imports and vice versa were cointegrated, implying a long-run relationship between the two sets of variables. The study then utilised causality tests based on the significance of the ECM coefficient as well simple Granger causality tests in a bivariate setting. The results indicate one-way causality from manufacturing exports to FDI and from manufacturing imports to FDI. These results suggest that exports and imports of the manufacturing sector matter in the locational inflows of FDI in South Africa. It is recommended that the South African government should encourage FDI policies that have an export component or export strategy. This could attract more FDI inflows that would close the investment gap in the manufacturing sector.

This doctoral dissertation utilizes survey research design and an interview research design to compare the influence of cultural factors on successful succession in South African and American family owned business (FOB’s). The target populations consisted of owner managers and successors of FOB’s located in two countries: USA (State of Indiana) and South Africa (Indian South Africans). The qualitative research methodology was based on 1:1 interviews with 10 FOB’s in South Africa and the USA. The survey research methodology was based on a cross-sectional survey and the research design was correlational. The independent variables included nine cultural dimensions of the target populations measured using a dedicated survey instrument. The dependent variable (Perceived Success) was the relative success of each participant in the target population, with respect to his/her alleged levels of accomplishment in the succession processes. The demographic characteristics of the members of the target populations were also recorded. Correlative relationships between nine reliably measured cultural dimensions, seven demographic characteristics, and the Perceived Success of the succession process were identified. Differences between the populations in USA and South Africa were apparent. Multiple Linear Regression analysis indicated that the most important predictor of Perceived Success in the USA population was Performance Orientation, followed in rank order by In-Group Collectivism, Assertiveness, and Uncertainty Avoidance. Demographic variables had no significant effect on the relationship between Predicted Success and the cultural dimensions of the USA population. In comparison the most important predictor of Perceived Success in the Indian South African population was Uncertainty Avoidance, followed in rank order by Performance Orientation, Future Orientation, the age of the participant, and the number of people who worked in the participant’s organization. The combined model between the USA and the Indian South African FOB’s indicated that the most important predictor for perceived success was Uncertainty Avoidance, followed in rank order by In- Group Collectivism, Performance Orientation and Assertiveness. Evidence is provided to conclude that the relative importance of cultural dimensions and demographic characteristics to the succession planning of owner managers and successors in South Africa was significantly different to those of their western counterparts.

Though the strategic importance of regional economic integration to multinational companies (MNC) has been researched extensively internationally, this concept has not been studied in South Africa. In fact, there is a growing nostalgia that with the South African Development Community (SADC) moving towards its set macroeconomic convergence targets; regional economic integration eventually leads to macroeconomic stabilisation. This ultimately becomes the root of growth in a region that has been severely affected by globalisation, financial crises, increasing government debt and budget deficit problems. This study, hence, tries to find out how the critical decisions of South African MNCs are made when operating within regional markets. Consequently, statistical econometric models were developed to test time-series data from 1980-2011 using the best (most efficient) linear unbiased estimator (BLUE) ordinary least square regression technique. An analysis was then done to investigate how South African firms have been able to gain maximum benefits by adopting the SADC as its major trading bloc in Africa. The study’s findings showed that the major barriers that impede MNCs of South African origin from penetrating these markets were custom duties, direct and indirect tariffs. It was observed that this would only be reduced by regional integration. Determined to critically interrogate the problems detailed in this research, three hypotheses were tested, analysed and subsequent interpretation of the findings revealed that South African MNCs contribute positively to regional economic growth and investment in the SADC. Furthermore, the study found out that although these factors were important, they were not the only variables that stimulated the competitiveness of South African MNCs in the SADC region. The literature review sections of this study found that the adoption of strategic management initiatives by MNCs improved the operation of transnational companies in South Africa. A comparison between the value of South African MNCs, as well as, other explanatory variables, and the Gross Domestic Product (GDP) of both South Africa and the SADC using time series data for the period 1980-2011 indicated that there was a positive relationship between the contribution of MNCs to South Africa’s economy and the GDP of both South Africa and the SADC. This proved that there is a significant link between MNC growth and national/regional productivity. In conclusion, the study established that the findings of the literature review were theoretically in sync with the empirical analysis. Also, the outcome of this study concurred with the findings of similar research. In essence, regional trade arrangements are an increasingly important element of the global trade environment, of which the move by South Africa’s MNCs to operate in the SADC market was a positive one. Finally, the study found out that for these firms to be successful in the international business arena, business management decisions need to be made, only after a detailed strategic analysis of the significance of regional economic integration is considered. This integrative framework certainly determines the operational efficiency, survival and profitability of most MNCs that operate within the region. / Business Management / M. Admin. (Business Management (International Business))

Audit committees (ACs) can enhance corporate governance in the public sector, particularly in State Owned Enterprises (SOEs). This study adopted a qualitative research approach to identify factors contributing to the effectiveness of ACs in selected Namibian SOEs to provide sound corporate governance. The empirical data was collected primarily through semi-structured interviews with participants as well as from field notes and company documents. The study highlighted certain AC characteristics and practices contributing to the effectiveness of ACs in selected Namibian SOEs to provide sound corporate governance. The mandate, composition, managing the activities of the AC, performance assessment of the members of the AC and reporting of the AC if applied correctly can enhance effectiveness of ACs. The study also highlighted weaknesses, suggesting that some of the ACs needed improvement in order to enhance corporate governance at SOEs. / College of Accounting Sciences / M. Phil. (Accounting Sciences)

Abstract in English, Afrikaans and Zulu / This study is aimed at investigating the capital structures of the Johannesburg Stock Exchange listed South African IT firms and compare these to the capital structures of NASDAQ listed US IT firms in order to better understand the capital structures that JSE listed South African firms employ. The study made use of secondary data in the form of ratio analysis from public sources, as well as the published annual financial statements of the firms. The Generalised Method of Moments regression analysis technique was used in order to test the data for relationships between certain ratios. The study found positive relationships between the firm’s capital structure and its return on equity; meaning that firms should make use of their capital structures to maximise their return on equity and as a result, returns for its shareholders. / Hierdie studie is daarop gerig om die kapitaalstrukture van Suid-Afrikaanse IT-ondernemings wat op die Johannesburgse Aandelebeurs (JSE) genoteer is te ondersoek, en dit te vergelyk met die kapitaalstrukture van NASDAQ-genoteerde Amerikaanse IT-ondernemings ten einde die kapitaalstrukture wat JSE-genoteerde Suid-Afrikaanse ondernemings gebruik, beter te verstaan. Die studie het sekondêre data in die vorm van verhoudingsontleding uit openbare bronne, asook die gepubliseerde finansiële jaarstate van die ondernemings gebruik. Die Veralgemeende Metode van Momente-regressieanalisetegniek is gebruik ten einde die data vir verwantskappe tussen bepaalde verhoudings te toets. Die studie het positiewe verwantskappe tussen die ondernemings se kapitaalstruktuur en opbrengs op ekwiteit gevind; dit beteken dat ondernemings hul kapitaalstrukture behoort te gebruik om hul opbrengs op ekwiteit en gevolglik ook opbrengste vir hul aandeelhouers te maksimeer. / Lolu cwaningo kuhloswe ngalo ukuhlola izinhlaka ezifaka imali ezinkampanini zobuchwephese bamakhompuyutha ezisohlwini lwe-Johannesburg Stock Exchange (i-JSE), nokuziqhathanisa nezinhlaka ezifaka imali ezinkampanini zase-US zobuchwepheshe bekhompuyutha ezisohlwini lwe-NASDAQ ukuze kuqondakale kangcono izinhlaka ezifaka imali ezinkampanini zaseNingizimu Afrika ezisohlwini lwe-JSE. Lolu cwaningo lusebenzise imininingwane eqoqwe kweminye emayelana nokucwaningwa kwezinombolo etholakala emithonjeni evulelekile emalungwini omphakathi kanye nakwizitatimende zezezimali zonyaka zezinkampani. Kusetshenziswe indlela yokucwaninga ehlawumbiselayo ngokuqhathanisa ubudlelwano neyaziwa ngokuthi yi-Generalised Method of Moments, ukuze kuhlolwe imininingwane eveza ubudlelwano phakathi kwezinombolo ezithile. Ucwaningo luthole ubudlelwano obubonakalayo phakathi kwezinhlaka ezifaka imali enkampanini kanye nenzuzo yayo yamanani amasheya; okusho ukuthi izinkampani kumele zisebenzise izinhlaka zazo ezizifakela imali ukwandisa amathuba enzuzo yamanani amasheya okuyinto ezodala ukuba kuhlomule abanini-bamasheya. / Finance, Risk Management and Banking / M. Com. (Finance)

A prestudy by the author of the assistance available to small business owners in South Africa revealed that although much assistance is available, many small businesses still fail. The question that arose was whether small business owners are receiving the proper assistance in respect of the right functional areas of the business, for the appropriate duration, at the right stage of the business life cycle and by the right people. Taking all these issues into account, the main purpose of this study was to determine what types of business interventions have the greatest impact on the success of entrepreneurs and small and medium enterprise owners. The literature study includes the history of small business development in South Africa and the interventions that have taken place in this and other countries. It also provides a definition of a successful small business and the generic business needs of small business owners. The sample used in this study was drawn from the members of the Confederation of Employers of South Africa (Cofesa). The research findings of this study are reliable for the SME owners who are members of Cofesa. The Cofesa group is not representative with regards to demographics, location, economic sectors or qualifications of South African SMEs. The following are some of the findings of the study of successful small business owners: * They generally make use of assistance in the areas of finance, marketing and human resources. * Most of them make use of assistance on a continuous basis during all the stages of the business life cycle, suggesting the way forward for aspirant business owners who should start making use of assistance even before starting their businesses. * Consultants or business specialists are mainly used for assistance. * More than two-thirds of the business owners thought that their businesses were more successful after they had received assistance. * The assistance was neither the cause of failure nor was it the main cause of their success. Assistance is a contributing factor to success but not the main reason for it. The success of a SME will depend mainly on other factors such as type of product, product quality and marketing. Assistance, however, proves vital and should first be provided for the areas as identified by the respondents in this study (mainly finance, marketing and human resources). / Business Management / D. Com.

There has been few research studies aimed at investigating strategy in small businesses. The current study sought to contribute to small business management and help small businesses attain success as they are important in any economy. Furthermore to close the gap as a response to the call for research in what people actually do when strategising. The following study explored the strategising practices of small business managers from the accommodation sector and the tools they use when strategising. A total of 12 interviews were conducted during the period 2014-2015 in the Tshwane metropolitan area. The findings of the study show that small business managers strategise although not in the way proposed by literature which may reveal that strategy-as-practice may be more appropriate for small businesses. The findings also show the tools that small business managers use in strategising. The research will serve as a contribution to the current challenges facing small businesses in the practice of strategic management or lack thereof in the managing of small businesses to ensure success. / Business Management / M. Com. (Business Management)

Abstract in Xhosa and English / This study aimed to examine the relationship between working capital management and the financial performance of listed food and beverage companies in South Africa. Despite the existing literature on this relationship, no notable studies have investigated it in this particular industrial sector. Various data from a sample of 12 food and beverage companies listed on the JSE during the period 2007 to 2016 were collected from iress McGregor databases. Econometric regression analysis was then conducted on the data to determine the magnitude of relationships between working capital components and the financial performance of these companies. The researcher found that adopting an aggressive working capital management strategy assists in creating shareholder wealth through improved financial performance of the firm. To sum up, the shorter the cash conversion cycle, the more profitable the firm will be. / Injongo yesi sifundo kukuphonononga unxulumano phakathi kolawulo lwemali etyalelwa ukusebenza (inkunzi) nentsebenzo yemali (inzala) eyenziwa ziinkampani ezibhalisiweyo zokutya neziselo eMzantsi Afrika. Nangona kukhona okubhaliweyo malunga nolu nxulumano, akukho sifundo sigqamileyo ngeli candelo lorhwebo. Kukho iinkcukacha ezaqokelelwa kwiinkampani ezikhethiweyo ezili-12 nezibhaliswe kwiJSE. Ezi nkcukacha zazikwingqokelela egciniweyo eyaziwa ngokuba yi ‘iress McGregor databases’. Kuye kwenziwa uhlalutyo ngokuthelekisa inzala eqhele ukwenziwa naleyo kuqikelelwa ukuba iza kwenziwa kwezi nkcukacha zikaMcGregor. Oku bekusenzelwa ukubona ubungakanani bonxulumano phakathi kwenkunzi nenzala eyenziwa zezi nkampani. Umphandi ufumanise ukuba ukwakha icebo lolawulo olungqongqo lwenkunzi kuyanceda ekudaleni ubutyebi babanini zabelo ngokuphucula inzala eyenziwa liqumrhu lorhwebo. Elokuqukumbela lithi, ngokufutshanisa ivili lokuguqula imali, iya kuba ngaphezulu inzala yequmrhu lorhwebo. / Business Management / M. Com. (Business Management)

"Can you define 'plan' as 'a loose sequence of manifestly inadequate observations and conjectures, held together by panic, indecision, and ignorance'? If so, it was a very good plan." Jonathan Stroud, The Ring of Solomon Jonathan Stroud knew that a plan cannot stand alone and needs more. Every business needs a strategy. Academics in the field of strategic management have bewailed the field's disparate, ambiguous nature. The question arises: how can these concerns be compliant with the substantial success that strategic management experienced in the past? The weaknesses of strategic management seem to be its strengths. In their study, Nag, Hambrick and Chen (2007) suggest that strategic management acts as an intellectual dealer entity, which thrives by enabling the simultaneous pursuit of multiple research orientations by a variety of disciplinary and philosophical regimes. The Bain and Company Management Tools and Trends, (Rigby & Bilodeau 2011) indicated the importance of management tools and how these tools can enhance an organisation's ability to strategise for the future. Mankins and Steele (2005) identified factors resulting in a strategy-to-performance gap and made recommendations on how an organisation can minimise such gaps. Tait and Nienaber (2010) came to the conclusion that the use of management tools could reduce challenges of formulation, implementation and evaluation resulting in closing or minimising the strategy-to-performance gap. In view of the findings of these three above-mentioned studies, this study of SAEO aimed to explore (identify, describe and understand) what factors top, middle and frontline managers perceived to hinder strategy implementation at SAEO during the 2009/10-2010/11 financial years, resulting in a strategy-to-performance gap and to determine how these factors affect the organisation. This study was conducted as a qualitative case study that used empirical evidence from real people in a real-life organisation. Data was collected from a South African electronics organisation (henceforth referred to as SAEO) involving 14 managers at three different hierarchical levels (top, middle and frontline managers). They were required to answer semi-structured questions on to how these strategy-formulation-implementation-evaluation phases affect their working environment. The interviews were conducted at the premises of the organisation and permission was sought from the CEO who granted permission for the researcher to request the managers to participate. Information was used from previous authors and a replication study was conducted using the Mankins and Steele (2005) and Tait and Nienaber (2010) studies. The purpose of this study was to identify, describe and understand "what factors, if any, hinder strategy implementation" (Ehlers & Lazenby, 2004; Mankins & Steele, 2005; Tait & Nienaber, 2010). Ehlers and Lazenby (2004:117) and Mankins and Steele (2005:66) have indicated that strategy implementation is the most difficult part of the strategic management process. In the Mankins and Steele (2005) and Tait and Nienaber (2010) studies, although the order differed, the most prevalent performance factors contributing to the strategy-to-performance gap were identified as a lack of focus/conflicting priorities and no resources, inadequate skills and capabilities, unclear accountabilities for execution, insufficient rewards and consequences and poorly communicated strategies. The results of this SAEO study confirmed that ineffective communication, followed by inadequate monitoring; insufficient leadership and no approved strategy were the main reasons for the strategy-to-performance gap. It seemed as if SAEO had a bigger challenge in communicating its strategy to employees than was the case in the Mankins and Steele (2005) and the Tait and Nienaber (2010) studies. Although the biggest challenge at the four South African Life Insurers (Tait & Nienaber, 2010) was inadequate or unavailable resources, the challenge at SAEO was ineffective communication and it was evident that it should be addressed to close the strategy-to-performance gap. Both challenges are part of the strategy implementation phase although communication could be related to formulation, implementation and evaluation of strategy. Although the results (ranking of factors indicated to contribute to the strategy-to-performance phenomenon) of this study did not entirely concur with the studies of Mankins and Steele (2005) and Tait and Nienaber (2010), the important fact remains that without a formulated strategy on how to ensure survival and growth of an organisation, challenges such as ineffective communication and/or inadequate or unavailable resources which were found in the three studies (Mankins & Steele, 2005; Tait & Nienaber, 2010; and the SAEO study) will have a negative effect on an organisation's future growth and prosperity. It became evident from this (SAEO) study that every member of an organisation will be affected should a strategy-to-performance gap exist. Therefore it is crucial that each organisation timeously identify possible factors that can result in a strategy-to-performance gap and determine what can be done to close or narrow those performance gaps. Lear (2012) contends that even if an organisation has the most outstanding strategy, the strategy will mean nothing if it is not understood at all levels within the organisation. That includes all processes to be aligned to achieve the organisation's objectives. / Business Management / M. Tech. (Business Administration)