The research problem addressed in this study was concerned with the identification of factors that inhibit Small and Medium Enterprises from exporting their products to South Africa’s most important trading partners. To achieve this objective, a theoretical study was conducted to establish what literature reveals to be the most important trading partners, and the problems which businesses experience when they export their products to these destinations from the Eastern Cape. The information obtained in the literature study was analysed, and, in order to resolve the main problem, the research questionnaire was divided into four parts. • Part 1 consisted of biographical questions. • Part 2 consisted of questions aimed at establishing the reasons why organisations embarked on exporting. • Part 3 was concerned with what the respondents perceived as barriers to their export operations. • Part 4 was concerned with strategic decisions and the minimising of risk. The empirical results obtained indicate that, although inhibiting factors are a reality in exporting, these remain secondary to general market forces of supply and demand. It was shown that inhibiting factors do not play as big a role in the export process as the literature suggests.

M.Ing. / This research provides an assessment of export potential for a small South African Enterprise. An investigation will be conducted on export as a viable option for improving the small South African manufacturing enterprise's future outlook. Through the years following Apartheid, the manufacturing sector has diminished from once a protected self sufficient industry to an industry open to foreign competition due to the effects of globalization. The advent of reduced skilled workforce as a result of "brain drain" and lack of investment in education has also not helped any local enterprise in achieving growth easily, therefore the need to look at other growth mechanisms including export. Included is a brief overview of the export process procedure; the current and future social economic position of the country, and how the South African government's current policies aim to improve the local Small Medium Enterprises (SME) competitiveness. The export marketing plan, plus the necessary tools and plans for a business to initialize its first steps into export is also investigated and in the last chapters, a case study using a local business will be conducted using and adapting the export function for its own benefit.

The success of international business depends on effective negotiations. Such negotiations do no happen in a vacuum, but usually in a specific environment that includes; time, surrounding, place, culture and people. The business environmental setting includes legal and political pluralism, currency fluctuations, foreign exchange, foreign government controls, bureaucracy, instability, change, ideological and cultural differences, as well as the influence of external stakeholders. These business negotiations environments can influence the behaviour of negotiation in global firms, impacting firms internationally. The reasons to negotiate on an international level may include considerations such as: choice of venue, culture to observe; and the outcome of the negotiation process. The aim of this study was to determine the influence of the international marketing environment, awareness of negotiation skill, interest groups and negotiation atmosphere on behaviour of marketers in a global firm. The study assessed the impact of negotiation behaviour on business agreements based on trust and certainty and level of commitment. The purpose of the study was to gauge the impact of negotiations behaviour pertaining to failure of business negotiations in Tanzania. In addition, the study endeavoured to determine the impact of environmental variables on the negotiation behaviour of marketers. The questionnaires used in the study comprised seven variables with statements linked to a five-point Likert-type interval scale varying from “strongly agree” to “strongly disagree. Self-administered questionnaires were used for data collection from global firms’ marketers and their management representatives; 323 questionnaires were collected from respondents. This study contributed to the literature on negotiation behaviour in a global firm and the perceptions of such global marketers in Tanzania. Many international companies in Tanzania find it difficult to formulate and implement a comprehensive business strategy; therefore, this study intends to equip international business managers with the leadership skills required. Based on the findings of this study, the negotiators and government are expected to play a major role in business negotiations to promote effective trade agreements despite limitations of political influence in the negotiation process. Political stability in a country enhances foreign business which in turn improves negotiation behaviour. A just legal system, with clear and unambiguous business guidelines and policies would benefit and promote local businesses and government representatives and negotiators in respect of international business negotiation behaviour. Reasonable tax and interest rates and fair business policies should improve international trade negotiations and business practices. In order to conduct successful international negotiations aspects such as culture, language differences, customs and traditions are important and should enjoy high priority. Aspects such as these mentioned influence the conducting and atmosphere and outcome of negotiations. The study reveals that the use of specialists and interpreters are imperative to guarantee understanding and successful outcomes. According to the findings negotiators should possess good negotiating skills to be able to steer the negotiation process through the different phases of negotiation that requires different negotiating skills at each stage of negotiation. It is clear that to have successful win-win negotiation outcomes the leading negotiator should put together a good team, with expert knowledge of product or conditions and negotiating skill, as well as possessing the attributes mentioned in the previous paragraph. The negotiator should also be able to determine authority limits, patience and observe negotiation ethics. No team disagreements concerning the business/project matters should be aired in front of counterparts during negotiations and professional conduct must prevail at all times. The findings of the study indicated that awareness of the practice of offering concessions regarding government tariff laws and price discounts that is in line with traditions in Tanzania. Concessions should not be made until all issues have been discussed, to avoid granting unnecessary benefits during negotiation that might be interpreted as bribery. This study concluded that it is important that marketers meet the requirements of business practices by sharing clear guidelines and policies regarding business practices, as this will lead to fruitful decisions. It was also found that negotiation behaviour improves when negotiators are willing to share information and agree that all communication must be in writing; marketers are more comfortable when there is a clear understanding of matters agreed upon, the choice of trading partners and that all trading agreements are written and a contract signed by all the parties, including governments where necessary. Marketers’ intentions are derived from the common interests of both parties and the negotiations should always take place in avenue that is suitable to both parties, conducted in fairness and offers must be reasonable and attainable with a positive outcome as the ultimate aim for both parties. This study reveals that negotiators insist on the use an agent or agents and sub-contractors to ensure mutually beneficial strategic business partnerships. However, when the role of the interest groups is explained to all participants, negotiation behaviour improves. It can also be concluded that negotiators allow interest groups to participate as team leaders and their number should be equal to the number of foreign negotiators, to ensure that marketers feel more at ease and comfortable to participate. An atmosphere based on bargaining power exerts a positive influence on the level of commitment among negotiating partners; and can be a predictor of the range of agreement as well as shape limits and priorities among dimensions of rivalry. However, it is important for marketers to express willingness to accept the terms of their counterpart’s bargaining zone regardless of non-profitable quotas at stake; identify areas of bargaining from foreign traders even if they are not attractive enough for local traders and are comfortable with the counterparts’ bargaining zone regarding fixed rates on exporting and importing quotas between trading partners to build trust among negotiators. In conclusion, it was found that negotiation behaviour has a positive influence on the level of commitment of trading partners. A positive business relationship is created on trust and a high-level of commitment which should be of great satisfaction to negotiating parties for future prospective negotiations.

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No description available.

A questionnaire was sent to 1,149 small eastern hardwood lumber firms to determine export assistance needs. Data from 354 producers and distributors were analyzed using the concept of internationalization. Internationalization is the gradual process by which firms increase involvement in foreign markets. While the process is gradual, distinct stages can be identified by involvement in and commitment to international markets. Firms were placed into one of five distinct stages of international involvement based on their desire to export, method of export, and percentage of total lumber sales from hardwood lumber exports. Firms in each stage were compared based on demographic characteristics. Firms in the latter stages had larger internal marketing/management staffs, larger production staffs, greater average annual hardwood lumber output, and higher average annual lumber I sales. Characteristics that differentiate firms from each other suggest different export initiation and export assistance needs. Firms in each-stage were compared based on awareness, use, potential use, and perceived benefit of twenty-two export promotion programs. Awareness and use of the programs was found to be low. Firms existing in the various. stages of international involvement desired different export-related information and assistance. The large proportions of firms indicating potential use and perceiving benefit from the programs suggests that barriers exist which prevent their use. Many firms are either unaware of export opportunities or perceive barriers and risks that inhibit their entry into exporting. Companies were compared based on perceived barriers to exporting and the importance of twenty-one export stimuli. Domestic oriented firms perceived themselves as too small to export and were satisfied with the domestic market. Potential exporters indicated that their lack of knowledge about foreign markets kept them from exporting. The potential for increased profits and communication with export distributors were ranked as the most important export incentives, while the chance to travel overseas and communications with chambers of commerce were ranked as the least important. / Master of Science

Active participation in international trade is a must for the governments and business of today's rapidly changing world. This situation enforces the need to have extensive information on market potential estimation methods. Special factors related to international markets such as data deficiency and unexpected data needs make the market assessment task a much more difficult and complicated issue. In this study, first, an attempt is made to have a compact inventory of existing international forecasting techniques. Different classification schemes from the literature are presented. In order to evaluate the available international forecasting techniques, nine evaluative factors have been defined and used in an overall evaluation attempt. These efforts showed that none of the existing techniques are very applicable and successful in international markets. Second, Multiple Factor Technique is presented as a low-cost, preliminary market assessment technique that can be utilized in international markets. The mechanics of the technique and it's rationale are discussed with a brief developmental background. The technique is tested by using different number of variables with unweighted and weighted market potential indices. The United States is chosen as the reference market while the United Kingdom is the target market. A durable consumer good (VCR) and a non-durable consumer good (beer) are used to test the Multiple Factor Technique with ten years (1974-1983) data. Multiple Factor Technique seem to be more accurate with non-durable products than with durable products. Meanwhile, this author believes that the results may have something to do with the maturity of both reference and target markets. For example, if the target country is immature but the reference country mature, MFT might be effective for future market potential estimates. Furthermore, a Multiple Factor Technique based short term forecasting attempt shows that the technique is as much applicable as it is for a market assessment technique. Future studies will improve our understanding as well as our ability to apply the Multiple Factor Technique. / M.S.

Many developing countries that rely heavily on primary commodity exports to provide a major portion of their exchange revenues confront large variability in their incomes. This has been a factor of major concern to the developing countries as revenue instability is considered to deter development as well as affect the welfare of those engaged in production of such commodities. Producing countries have adopted several programs and policies that attempt to lessen the price and revenue instabilities, or to raise export receipts. These attempts based on various commodity agreements have met with limited success. More attention has been paid to the alternative market solutions to this problem as international action even among producers has proven ineffective. Futures market is an obvious choice since well organized futures markets exist for most of the primary commodities. The present study investigated the potential of futures markets as a means of obtaining lower variance in revenue using the data from cocoa markets in London and New York. Data for four representative cocoa producers were analysed to develop strategies that reduce the variance in revenue. Two hedging strategies based on optimal hedge ratio concept and three selective strategies were tested for their ability to reduce risk and also to maintain the revenue trade-offs at a lower level. The analyses were carried out using two sample periods each 29 and 22 years long and tested in a 4 year data base outside the sample. The results confirmed that the producers facing both price and quantity risks in their production should only hedge a portion of their output. Adoption of a variance minimizing or utility maximizing hedges at a higher levels of risk aversion parameter as well as some selective strategies for hedging were found to give lower variance in revenue. There was always some trade-off associated with adopting these strategies. Selective strategies obtained a reduction in revenue with less trade-offs compared to optimizing strategies but were limited by the requirements of large cash outlays to meet the margin payments. For countries depending heavily on the revenue from cocoa hedges based on variance minimizing or utility maximizing strategies would be preferred over selective strategies. The ability to make good crop forecasts would greatly improve the success of hedging. / Master of Science

published_or_final_version / Comparative Asian Studies / Master / Master of Arts

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: Since many Small Medium Sized Enterprises (SMEs) have a lack of resources and knowledge of foreign markets, they tend to develop their activities in the domestic market ftrst. When the home market limits opportunities for expansion. pro-active SMEs naturally progress to international activities by exporting to foreign markets. This natural evolution culminates in decisions of how to enter foreign markets and which markets to enter. Selection of overseas markets and entry modes lies at the heart of any international strategy. The value of the small business sector is recognised in economies worldwide. The SMEs' contribution towards growth, job creation and social progress is valued highly and small business is regarded as an essential element in a successful formula for achieving economic growth. It is thus postulated that SMEs will be one of the driving forces to grow the South African economy. By gaining an understanding of the internationalisation process of International Active Enterprises it is hoped to provide the South African SMEs with a tool that can be used for their international expansion programs. The author starts by reviewing relevant and related literature. He then investigates and highlights the different schools of thought on intemationalisation by looking at process, models, strategy and motivation. The research then describes the different modes of market entry and continues by listing the basic factor categories for market entry mode selection. The penultimate step highlights the various factors for selection of foreign markets and applies these factors into a holistic market entry and mode selection model. Finally the internationalisation is focused on SME and more specifically South African SMEs. Their internationalisation behaviour is explained in the light of the model that was developed. The author explains the framework that will be used to model an international market selection and the mode of entry into that international market. This model can guide SMEs into initial international market entry and to make decisive choices as to which international market and mode of entry they select to penetrate international markets. / AFRIKAANSE OPSOMMING: Klein en medium grootte sake-ondernemings het 'n tekort aan bronne en kennis van oorsese markte en dienooreenkomstig ontwikkel hulle eers hul besigheidsaktiwiteite in die binnelandse markte. Wanneer die binnelandse besigheidsgroei-geleenthede versadig word, sal sodanige pro-aktiewe klein en medium grootte sake-ondernemings huI produkte begin uitvoer in 'n poging om nuwe markgroei te stimuleer. Hierdie natuurlike evolusie dwing die onderneming om besluite te neem oor hoe om sodanige buitelandse markte te betree, asook die markkeuse op sigself. Die markkeuse en markbetredings metodiek is die kern van enige internasionale strategie. Die ekonomiese waarde van die klein en medium grootte sake-ondememingsektor word wereldwyd erken. Hulle bydrae tot groei, werkskepping, en sosiale ontwikkeling word wyd erken. So word klein en medium grootte sake-ondememings dan gesien as 'n kardinale bestanddeel om ekonomiese groei te behaal. Dit word dus gestel dat klein en medium grootte sake-ondememings een van die dryfvere vir ekonomiese ontwikkeling in Suid-Afrika sal wees. Die ondersoek van die intemasionaliseringsproses van buitelands-aktiewe ondernemings sal 'n model formuleer wat die Suid-Afrikaanse klein en medium grootte sake-ondememings kan bystaan met hul buitelandse markgroei. Die skrywer begin om die relevante literatuur te bestudeer en beklemtoon die verskillende denkwyses oor buitelandse groei deur te kyk na prosesse, modelle, strategiee en motiverings. Die navorsingstuk beskryf dan die verskillende metodes van markbetreding en Iys die verskillende faktore wat 'n invloed het op die betredingsvraagstuk. Die voorlaaste stap in die model beskryf die verskillende faktore wat 'n rol speel op die buitelandse markkeuse. Al hierdie mark- en betredingsfaktore word in 'n globale model gestruktureer. Laastens word daar gefokus op die Suid-Afrikaanse klein en medium grootte sake-ondememings en hulle internasionaliseringsoptrede word in die lig van die model geskets. Die skrywer verduidelik dus die raamwerk wat gebruik word om buitelandse markbetreding en markkeuse te modelleer. Hierdie model toon rigting aan klein en medium grootte sakeondememings se aanvanklike buitelandse belangstelling en ook hoe om daadwerklike besluite te neem oor buitelandse markbetreding en buitelandse markkeuses.