M.Com. (Business Management) / Please refer to full text to view abstract

Strategic functional management is the approach a functional area takes to achieve corporate- and business unit objectives and strategies by maximizing resource productivity. It is concerned with developing and nurturing a distinctive competence to provide a company or business unit with a competitive advantage (Wheelen, 2002:160). The credit function, with debtors as the largest current asset on the balance sheet, is such a functional area that should be concerned with providing the organisation with a competitive advantage. Although many generic organisational strategic models are available, there is a lack of guidelines on how to mange the credit function strategically. The objective of this research was to develop a framework, which could be used by credit managers as a management tool, to select those aspects of the credit function, which are relevant for an organisational strategic role. In order to achieve this goal, the following sub objectives have been identified in which the framework should enable credit managers to: scan the credit function's external and internal environments to keep in touch with opportunities and threats and to determine strengths and weaknesses, and to formulate, implement and evaluate credit and collection strategies that could contribute to organisational strategic goals. A literature study method was used to collect data to be incorporated in the development of this framework that will serve as basis for the alignment of strategic credit management principles with strategic organisational principles. The focus of the proposed framework was to use and adapt the four basic elements of Wheelen's organisational model (Wheelen, 2002:2) into a more specific model applicable for credit functions. It was concluded that a competitive advantage could be obtained by the use of this proposed strategic credit management framework. Credit managers should be trained on how to use this framework effectively and then ensure that it is implemented, evaluated, monitored and controlled on an ongoing basis. However, the applicability thereof in practice is reserved for future studies. / Prof. A. Boesenkool

Financial markets play a vital role in the allocation of funds for investment at all levels of economic activity. Therefore, an understanding of the functioning of financial markets is a critical business skill. Yet, history proves financial markets to be erratic creatures. The purpose of this research report was to determine whether stock prices always reflect fundamentals or whether they display persistent deviations from their long-run equilibrium fundamental values due to irrational investor behaviour. The research was limited to earnings and dividends in terms of fundamentals and under- and overreaction in terms of investor behaviour. A two-regime non-linear dynamic model was applied to quarterly data of stock price, dividends and earnings for companies listed on the JSE Securities Exchange (“the JSE”) from 1980 to 2007. The results of the study demonstrate that although the South African equity market is not totally extreme, it contains quite substantial short-term noise. This outcome provides a compelling case for value investing. Against this backdrop, recommendations were made to individual investors and corporate managers. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

This paper investigates whether there is a difference in the investor returns of companies listed on the Johannesburg Stock Exchange. The analysis covers companies listed in the financial and industrial sectors during the period January 2002 to June 2007 and looks at overall returns, returns through share price changes and returns through dividend distributions. The purpose is to gain insight into whether ownership structure has an effect on company returns and to expand the information base that investors can draw on when assessing opportunities. In performing this research company management and ownership information has been used to categorise companies as owner-managed or non-owner managed and then share price data, dividend distributions have been used to calculate investor returns on a quarterly basis. This allowed descriptive analysis and hypothesis testing to be performed on the data to identify differences and then the statistical significance of any of these differences. The results obtained indicate that there are no statistically significant differences in the overall returns between the two groups but that differences between the two groups of companies do exist, primarily in the makeup of the returns rather than an overall difference in returns. In drawing these conclusions, it became apparent that further questions have arisen, particularly related to the reasons for the difference in nature of the returns. This begs for further investigation. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

One of the aims of BEE is to foster sustainable corporate growth of empowerment companies. This is projected to contribute to the growth of a deracialised South African economy, eradication of inequalities, underdevelopment and the achievement of enhanced widespread income levels in the economy. This study assessed the growth performance of empowerment companies listed on the JSE Securities Exchange against a background of enabling regulatory and other BEE support measures. In general, corporate growth manifests itself through numerical improvements in financial measures like turnover, total asset value and share price. These financials for a sample of empowerment companies were statistically analysed and compared to market averages and selected growth predictor models. The results indicate that for the period 2003 to 2006, share price growth for empowerment companies listed on the JSE Securities Exchange followed closely that of both the FTSE/JSE All Share Index and the sales growth predictor model but not the FTSE/JSE Style Indices and the asset growth predictor model. This implies that over this period, the aggregate portfolio of listed empowerment companies did not exhibit attributes similar to those of other listed companies weighted towards identifiable growth and value characteristics. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

The determinants of the antecedents of the profitable performance of companies are a field of interest which should be at the forefront of the mind of the executives of any profit making institution. Industry structure and its effects on profitability have long been a focus of study in the management literature. This study focuses on the effects industry and time have on profitability in the South African business milieu. A quantitative research method was followed whereby three different profitability ratios were calculated across two hundred and eighty nine listed South African entities over a ten year period to determine if there is a statistically significant link between industry effect and profitability as well as time and profitability. The study was undertaken in the form of hypotheses tests to determine if such links did exist. In the empirical evidence resulting form the hypothesis tests, three out of the three tests for industry effect on profitability were found to be statistically significant and two of the three tests for the effect of time on profitability were found to be statistically significant. These results show that in South African listed companies, industry has a statistically significant effect on profitability. While the effect of time on profitability does appear to be statistically significant however this is dependent on the types of profitability measures used. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

The global workforce is stressed. Only one in seven employees. There is an emergence of an employee that seeks greater meaning and personal development, this has put employers under pressure to meet these expectations. The employer’s search for value and the individual’s search for a greater meaning has created a disconnect. Consequently, there’s a growing movement premised on the positive psychology paradigm which argues that individuals and organisations should focus their people development efforts on maximising individual’s strengths instead of fixing weaknesses. The research report presents the findings of an empirical study in the use of Strengths-Based Development practices in large South African businesses collected through a web-based survey. The study found that Strengths-Based Development practices are underutilised South Africa. The most important predictors of Strengths-Based Development practices are Human Resource practices, organisational design and positive psychological orientation. Immediate Bosses were found to have positively impacted the use of SBD practices. The implementation of SBD practices has had a positive impact on desirable business outcomes. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

Broad-based black economic empowerment (BBBEE) and its antecedent black economic empowerment (BEE) remain highly emotive terms in South Africa today. There is a school that firmly believes that BEE is a tax placed upon businesses and that its only effect is to reduce competitiveness. This form of institutionalised racism points to the ANC wanting to “take over everything whites have built up” (de Lange, 2002). On the other hand, the economic and social transformation of South Africa is seen as key for the future of our country and remains a fundamental goal of the democratic government, as the majority of black South Africans continue to operate outside the parameters of the mainstream economy. For this part of the population, BEE has not been implemented nearly as steadfastly as possible. Add to this the acknowledgement that “SMEs will play a prominent role in the second decade of our democracy and beyond as we seek to accelerate economic growth, reduce unemployment and bridge the gap between the first and second economies,” (Mpahlwa, 2005) and we have a hodge-podge of popular opinion. This paper aims to enrich this debate by providing empirical evidence of how the various elements of BEE legislation are experienced by SMEs and whether or not BEE is perceived to be value-adding. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

This research identifies modes of market entry and strategies adopted by South African companies doing business in Tanzania. Data was collected through one-onone semi-structured interviews with South African company executives in banking, retail, manufacturing, financial services, and hospitality and engineering construction sectors. The study found that the mode of market entry was related to the degree of commitment of resources irrespective of the industry sector. The mode of market entry for the banking sector was influenced by the degree of politicisation as this is highly regulated. Acquiring state owned firms in privatisation partnership with government had the obvious advantage of being close to the pulse of policy thinking. Business in Tanzania thrived on relationships, partnering with locals using joint ventures or acquisition as modes of market entry mitigated risk. Greenfield investments in the retail sector were largely unsuccessful due to a lack of knowledge about retail supermarkets by locals, a fragmented sector and fierce informal market competition. Tanzania is as an entry point into the wider EAC that includes Kenya, Uganda, Rwanda, Burundi, DRC, Malawi and Sudan. Regionalism has resulted in significant gains for SA companies in Tanzania. Operational challenges in Tanzania were similar with what the literature proposes on emerging market economies: lack of skills, exchange rate volatility, corruption, regulatory burdens, poor infrastructure, thriving informal markets, and lack of law enforcement, thefts and anti-SA sentiments all adding to the cost of doing business. This study further proposes a model that SA companies can consider as part of their strategic planning process for internationalisation of business in the East African Community. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted

The main purpose of this research was to establish the critical success factors that impact project success for major projects in the Sub-Saharan Africa region. The motivation was that South African companies were geographically well positioned to expand into this region which holds some of the world’s untapped natural resources with potential for high returns. However the business environment presented unique challenges due to lack of institutional capacity, infrastructure and a weak private sector. This resulted in a dominant role of government as well as community concerns in project execution. Sasol’s project, commissioned in 2004, to bring natural gas from Mozambique to South Africa was selected as a case study. The project team, business clients, contractors and independent consultants were interviewed on what were the critical project success factors. The results indicated that the leadership role of the sponsor and an experienced and committed team were critical to project success. The roles of the country manager and the performance of contractors were also highlighted. External to the business organisation were the role of government and the involvement of the community. Government’s role on institutional and physical infrastructure development was highlighted. The importance of alignment of all project stakeholders was emphasised as critical. Further, additional time and resources spent on alignment and the initial planning phase were critical to an efficient implementation phase. / Dissertation (MBA)--University of Pretoria, 2010. / Gordon Institute of Business Science (GIBS) / unrestricted