In this rapidly growing and competitive business environment, each firm attempts to gain and retain competitive advantage. The marketplace is a dynamic and changing environment. Globalisation has had a profound influence on the business environment. Strategy formulation involves matching a company's internal strengths and weaknesses against the opportunities and threats offered by the industry and external macro environment. Strategy formulation involves more than the environmental scan of local markets. This scan has to be broadened to include the broader global arena. Companies do not work in isolation. Hence it is essential for companies to examine the role that competition plays, and how such companies position themselves relative to the competition. This study investigates the extent to which manufacturing industries in Pietermaritzburg undertake environmental scanning before adopting a strategy, or making strategic changes. It further attempts to determine the extent and ratio that business strategists seek competitive advantage from environmental scanning of their particular industry, and from the broader macro environment, and evaluate whether increased or superior use of external macro environmental scanning is perceived to lead to increased competitive advantage, due to the rapid and extensive impact of global events. The findings suggest that many companies focus their attention purely on industry-based factors as a source of strategic competitive advantage. Further, most firms do not make use of services of essential consulting firms in the strategy formulation process. This study found that many companies undertook strategy formulation once a year, and no external environmental scanning was undertaken by their strategists. Firms appear to prefer internal analysis. For companies wanting to maximize their competitive strategy, it is essential for strategists to explore both the industry and macro environment for any advantages that can be 'identified. Globalisation is enforcing the expansion of the scope of macro environmental factors. Larger firms may have the resources to cope, but smaller firms would need to look at alternative ways of acquiring the proposed information, e.g. using the database of external consulting firms, Companies have to move away from the old mindset, and embrace the changes in the dynamic business environment, if they wish to remain competitive. / Thesis (MBA)-University of Natal, 2003.

This study is concerned with the efficacy of the Skills Development Act in promoting skills development and training in South Africa. Skills development and training was examined in the context of the 30 manufacturing companies and 20 retail companies based in Pietermaritzburg. Firstly, the literature study provided a foundation on which to base the idea that skills development and training is vital in order for a country to achieve economic success. Secondly, efforts of other countries in promoting skills development and training were examined. Thirdly, skills development and training was examined in the South African context. The literature study lent support to the idea that there is a need for skills development in South Africa, considering factors such as HIV/AIDS, the shortage of scarce skills and labour demand trends in the South African labour market and the South African economy. The field study involved the use of questionnaires to gather data from the respondents. The results of the field study were group into pre-defined variables. The variables were then correlated and hypothesis testing was conducted to test the relationship between the variables. The main conclusions of the study are based on the hypothesis testing and the results of the field study and are detailed below. 1. The perceived effectiveness of the Skills Development Act was found to be a positive correlate of the effectiveness of training, the application of effective training procedures, the percentage of employers conducting formal training and the percentage of training costs recovered from the SETAs. 2. Training was perceived to be effective in terms of employee learning, employee performance and organizational performance. 3. There was an even split between companies that applied effective training procedures and those that did not. 4. Compliance with the Act was a pre-requisite for selection of the sample, however full participation in the Act was found to be lacking in general. This means that the majority of companies in the sample did not submit Workplace Skills Plans and Implementation of Training reports. 5. Compliance with the Skills Development Act was found to be a correlate of the application of effective training procedures, assistance received from the SETAs, the perceived effectiveness of training and the perceived effectiveness of the Skills Development Act. 6. It was generally perceived that the assistance received from the SETAs was poor. 7. On-the-job training was found to be prevalent in all companies; however formal training was more prevalent in companies that have a large number of employees. The average rate of formal training was calculated as 29.64%. 8. The number of employees was found to be a correlate of the percentage of formal training conducted, the percentage of training costs recovered from the SETAs, the perceived effectiveness of training and the application of effective training procedures. / Thesis (M.Com.)-University of KwaZulu-Natal, Pietermaritzburg, 2006.