Dissertation submitted in fulfilment of the requirements for the degree Master of Technology: Office Management and Technology in the Faculty of Business at the Cape Peninsula University of Technology 2013 / Employees are important to any business and without them businesses could be unsuccessful. This is particularly the case with micro retail businesses where employees are in direct contact with customers and more often than not, generate most of the revenue. Staff turnover on the other hand, may play a significant role and have an impact on business performance especially, in micro retail businesses. The success of micro retail businesses may be in understanding the possible causes of staff turnover and explored in this research. The aim of this research is to ascertain what causes staff turnover within micro retail businesses in Cape Town, South Africa, and how this can be reduced or prevented. To satisfy this goal, the research problem formulated as: It is unknown what interventions are needed for micro retail businesses to retain their staff The researcher conducted extensive literature analysis to understand the theoretical background and the possible factors that cause high staff turnover in micro retail businesses. Thereafter, the researcher uncovers the drivers causing staff turnover in micro retail businesses using a survey study. The research population is micro retail businesses in Cape Town, South Africa. Due to the nature of this research, a purposive sampling method is found to be the most appropriate. Questionnaires are used to collect primary data, whereas literature analysis assists with obtaining secondary data. The researcher found that remuneration, physical and employment working conditions and working hours are the top three most likely causes of staff turnover in micro retail businesses in Cape Town, South Africa. The researcher recommended that businesses should offer relevant and competitive remuneration packages, provide safe and secure working environments and arrange fair shift patterns. These would assist micro retail businesses to prevent or at least reduce high staff turnover.

This paper aims at developing a model on which to base good quality franchise relationships. The franchise sector has the potential to generate wealth for the franchisee and the franchisor, create employment and be a tool of empowerment. It is also associated with relatively less risk than other forms of self-employment. However, there have been a disturbing number of failures in the sector and reported cases of abuses of franchisees by franchisors. Some franchisors have sought liquidation of franchise units in courts of law. An investigation was commissioned into the sector with the objective of uncovering problems in the quality of the relationships in the sector. The obligations of both the franchisees and franchisors were stipulated. Aspects of quality were then considered to lay a foundation upon which improvements in the relationships could be based. This was followed by a survey to find the performance gap between the quality of service that was expected from the franchisor and what the franchisees were actually receiving. Five dimensions of service quality – tangibles, reliability, responsiveness, assurance and empathy were empirically investigated. The findings of this research revealed that the quality of service of franchisors fell short in all dimensions. It is arguable that other aspects of quality are being neglected by the franchisors. It is against this backdrop that a model is proposed to improve the quality of service in the franchise relationships. The model incorporates contemporary ideas on quality. Principles of total quality management, quality function deployment, customer satisfaction and self-assessment are applied to the franchise relationship. The use of the model will contribute towards better relationships in the franchise sector.

The wholesale and retail industry is a more volatile nudstry, with respect to cyclical changes and global economic conditions, than many other industries. The growth of technology in this industry has led to informed customers, bringing with them many challenges to retailers, as these retailers have to win customer loyalty by focusing not only on prices and quality, but also on global competition. The heterogeneity as well as the illusive preferences, expectations, personality characteristics, attitudes, and desires of customers have created diverse and fast-evolving customer demand. As a result, retailers need to source highly customer-focused employees who are willing to go beyond their expected call of duties to satisfy customer needs and wants, thereby keeping firms competitive. This behaviour is called organisational citizenship behaviour (OCB). OCB involves extra-role performance, which represents behaviours not formally required by any particular job, but which help to develop the social context of all jobs, thus facilitating effectiveness. Thus, retailers who encourage OCB among their employees are more likely to improve the performance of both the organisation and the employees, and increase the organisation’s competitiveness in the global economy. The primary objective of this study is to assess the perceptions of employees regarding OCB within retail firms in South Africa. A positivistic research paradigm was used, in this study, by means of quantitative research. Secondary data in the form of textbooks, journal articles and Internet sources provided the theoretical framework for this study. Primary data was obtained using the survey method, by means of self-administered structured questionnaires. The aim was to target 1000 employees in the retail industry (250 employees from each of the most economically active provinces, namely, the Eastern Cape; the Western Cape, Gauteng and Kwa-Zulu Natal). However, 690 questionnaires were returned and only 554 were usable, which amounts to an effective response rate of 80%. Seven null-hypotheses and a hypothetical model of employee perceptions regarding OCB behaviour in retail firms were tested. The influence of four independent variables were tested, these are: job perceptions, role considerations, organisational climate and employment considerations on OCB. In addition, three dependent variables, namely, employee commitment, propensity to leave and employee engagement were tested. The Statistica (version 12) computer programme was used to analyse the results by means of advanced statistical techniques (such as exploratory factor analysis, regression and correlation analysis) as well as descriptive analysis and frequency distributions. After various statistical procedures, the model was re-specified, some of the variables were renamed and the hypotheses were adjusted accordingly. The empirical results revealed that job considerations and employment considerations have a positive influence on both OCB related to compassion and OCB related to civic non-obligatory acts, while role considerations and job security were found to have no significant influence on both OCB related to compassion and OCB related to civic non-obligatory acts. Furthermore, the empirical results showed that OCB related to compassion have a positive influence on both organisational commitment and propensity to resign, while OCB related to civic non-obligatory acts has a positive influence on organisational commitment and its influence on propensity to resign was not significant. It is envisaged that the results of this study could assist retail firms to understand the variables that influence the organisational citizenship behaviour of employees. In addition, it is further envisaged that the results and recommendations of this study could be used to implement effective strategies in retail firms in order to ensure effective engagement in OCB related behaviour and to create awareness of the importance of employee engagement in organisational citizenship behaviour.

It is important for business managers to understand customers’ buying behaviours, as customers are the cornerstone of the business’ marketing strategy and the main providers of businesses’ profits. Previous research have identified numerous factors that influence customers’ buying behaviour, factors such as prices, promotions, brand image, brand reputation, customer experience and socio-cultural aspects. Despite the attention given to variables influencing buying behaviour, there was still a gap to be filled in this field of study in the clothing retail industry, especially in the South African clothing retail industry. Thus, the primary objective of this study was to investigate how the understanding of customers’ brand perceptions, customer experience and social considerations can be used by clothing retailers to initiate a purchase. A literature overview was conducted on the global retail industry, the global clothing retail, as well as on the South African retail and, more specifically, the South African clothing retail. In addition, a literature overview on variables influencing buying behaviour was provided, with a special accent on the selected variables for this study, namely brand perceptions, customer experience and social considerations. From the literature overview conducted on variables, seven independent variables were selected to be investigated with the dependent variable, buying behaviour. The independent variables, namely brand perceptions (as measured by brand quality, brand reputation and brand image), customer experience (as measured by store physical environment and staff service), and lastly social considerations (as measured by reference groups and culture/subculture) and the dependent variable (buying behaviour) were then presented in a hypothesised model. An empirical investigation was undertaken to establish the influence of the independent variables on the dependent variable. The measuring instrument used for the investigation was a self-administered questionnaire using seven-point Likert type of scale. The items were constructed based on previous research instruments found in secondary literature sources. The non-probability convenience sampling was implemented in this study to identify respondents. 207 usable questionnaires were collected and were examined through statistical analyses. The validity and the reliability of the measuring instruments were confirmed by exploratory factor analysis (EFA) and the calculation of Cronbach’s alpha coefficients. Descriptive statistics were undertaken to summarise respondents’ demographic information, while Pearson’s Product Moment Correlations were calculated to determine the correlations among variables. Furthermore, the relationships between the variables were assessed through multiple regression analysis, while a t-test and ANOVA tests were conducted to determine the influence of demographic variables on independent variables that showed significant positive relationships with the dependent variable. In addition, post-hoc Scheffe tests were undertaken to elaborate on the significant differences resulting from the t-test and ANOVA tests. Significant positive relationships were found between Brand Image/Reputation and Buying Behaviour, between Store Physical Environment and Buying Behaviour and between Cultural Clothing and Buying Behaviour. The empirical results also showed that there was a significant relationship between Age and Cultural Clothing. In the same way, there was a significant relationship between Population Group and the variables Brand Image/Reputation and Cultural Clothing. This study has contributed to the body of literature on buying behaviour, especially in the field of clothing retail, by extending the factors to consider when aiming at improving buying behaviour. In addition, the development of the hypothesised model significantly contributed towards having a better understanding of customers’ perceptions of the selected variables, and ultimately how these variables could trigger their purchase decisions. As a result, this study enumerated some recommendations and suggestions that should enable retailers to create a positive image and reputation in customers’ minds, assist retailers in arranging the stores in a more attractive way for customers and reach more culture-conscious customers.

Retail industry in South Africa is witnessing fast growth in all cities in South Africa. Attracting customers become key to success in the increased industry competition. Keeping customers satisfied has never been more important than currently. Retailers need to know what customer needs and wants are, to be able to provide and constantly satisfy their needs. Growth in the industry is largely influenced by economic conditions. A stable economic environment allows customers to spend more, thereby increasing the value of retail trade sales. In South Africa, there is strong competition between the four major dominant firms in the retail industry, which include Pick n Pay Holdings Limited (30%), Shoprite Holdings Limited (34%), Spar Holdings Limited (24%), and Woolworths Holdings Limited (11%). For the firms to grow in South Africa, they must have a clear understanding of consumers’ needs and wants. Services rendered by retailers are of utmost importance to their level of success and ability to successfully cater for the market’s needs. The main purpose of this study is to investigate customer satisfaction of two retail stores in the Nelson Mandela Bay, namely Summerstrand and Cleary Park Pick n Pay stores. Three independent variables (employee empowerment, technology and customer relations) were identified and were tested against one dependent variable (customer satisfaction). A positivistic paradigm was used to conduct the research. The approach uses the quantitative method of research to establish the causal relationships. A null (Ho) and alternative (Ha) hypotheses were formulated in order to test relationships between variables. A five-point Likert scale enabled primary data to be sourced for 294 customers’ (respondents), who shared their customer satisfaction experience at Pick n Pay stores in the Nelson Mandela Bay. A statistical analysis of quantitative data compromised of three phases. Firstly, the data was subjected to a descriptive analysis to summarise the data. Secondly, reliability (internal consistency) for the research instrument was assessed by means of the Cronbach Alpha Reliability Coefficient. Finally, multiple linear regression analysis were used to test the hypothesis. The empirical findings show that the independent variable positively correlated with the dependent variables. This implies that a positive relationship between employee empowerment, technology, customer relations and customer satisfaction at Pick n Pay stores. Therefore, recommendations given by the researcher focused on all variables that have a relationship with customer satisfaction.

The underlying objective of this research was to assess the extent to which an efficient supply chain can help retail businesses; particularly liquor businesses to manage their business risks. The case study firm for the research was Big Daddy’s Group, one of the leading independent liquor distribution and retailing firms in South Africa. In order to achieve the objective of the research, a review of relevant literature was done. It began with literature review of retailing in general, highlighting on the major roles they play and the modern trends in the industry. Afterwards the literature was narrowed down to liquor retailing. This was done to ascertain the unique characteristics of that aspect of retailing including the regulations guiding the industry and the specific business risks in that business. The final part of the literature review was on specific concepts and management models such as value chain, supply chain as well as business risk and its management. The literature highlighted the means by which the retailer creates value for the customer and the inherent risks in the industry. There was the indication of supply chain being a key component of the value creating activities (value chain) of the business, and serving as a tool in mitigating possible risks. The literature provided the theoretical proposition (hypothesis) for the assessment of the case study findings from the Big Daddy’s Group. The data collection exercise was done by means of a questionnaire complimented by personal interview. Due to the nature of the firm, in terms of structure and operations, two persons, with considerable insight into the business, the director and the sales/area manager were interviewed for the exercise. The questions posed were categorised into seven key areas of retail operations such as product range, imports, customer awareness, marketing and advertising, supply chain and human resource. The findings were compared with the theoretical propositions developed in the literature review, and the pattern matching logic technique was used to determine the existence or not of any similar predictions or differences. The risks identified in the findings were analysed with the logic of an efficient supply chain as the mitigating tool. The conclusion was that supply chain management is key to the value creation activities and hence the survival of the business. The recommendation therefore is that the retailer should ensure the efficient management of the supply chain network since it has the potential to reduce the inherent risks in their operations.

This treatise investigates the restaurant industry, entrepreneurship, franchising and restaurant franchising in order to develop a model that will enable a full service restaurant concept to be converted into a successful franchise system. Restaurants play a significant role in our lifestyle, and dining out is a favoured social activity. The industry plays an important role in the transfer of skills as many people start working in the restaurant industry before moving onto more formal careers. The restaurant industry offers many opportunities for entrepreneurial activity as a result of the relatively low barriers to entry. Entrepreneurship is the pursuit of opportunity regardless of the resources at hand and it requires a willingness to take calculated risks in order to build something of value from virtually nothing. The success of emerging economies such as China and India has proven that the only growth sectors in these economies are small and medium enterprises, which are driven by entrepreneurs. Franchising is considered to be a viable growth strategy for small business as it provides a means of raising capital and a method of expanding the business in a relatively low risk manner. There are many well established restaurant franchise brands that originated in South Africa, starting out as successful single outlets and then by means of the business format franchise model, developed into multi unit franchise systems. There are certain basic generic steps that must be followed when developing a franchise system. This was verified by the empirical study of this treatise which was conducted as a single unit case study on the Dulce Franchise Group. Finally, as a result of the analysis of the literature study and the findings of the case study, a restaurant franchise conversion model was developed.

Even though South Africa‟s historical inequalities are addressed, serious economic disparities are still evident. The informal economy is not flourishing as it should be, especially when compared to other fledgling democracies on the continent and this poses a policy question since most of the participants of this sector are from the previously disadvantaged section of the population. One policy dilemma that comes to the fore is about how to ensure that there is increased productivity in the sector so that the sector‟s contribution to the national economy can be enhanced. While the actual share of the economy contributed by the informal economy is difficult to ascertain there is evidence that this constitutes less than one fifth of South Africa‟s GDP. Within the informal economy trading appears to be the dominant economic activity. Despite the importance of the informal trade the sector has not attracted the needed attention in the literature either locally or internationally. The area that has received much attention by researchers has been the informal financial sector. Drawing on a standard revenue model for the informal trade sector this study examines the factors that explain differences in the performance of the retail trade businesses; given that these can be identified an effort should then be made to explore the policy measures that can improve the performance of these firms. The study is based on a sample of 300 informal retail traders in the Port Elizabeth environ. The regression analysis presented in this study suggests that residential area, capital, labour, inventory and age of a business are important determinants of an informal retail trade firm‟s revenue. Very few informal retailers indicated that they had businesses training. The survey results show that having a supplier close to the business assists in reducing transport costs, hence the increase in profit margins. Shelters and storages were found to be very useful in the operation of informal businesses.

PhD (Business Management) / Department of Business Management / Microfranchising’ is one of the new innovative entrepreneurial concepts that has gained traction in the past few years and potentially can provide a livelihood to the three billion people that live at the Bottom of the Pyramid (BoPInnovationCenter, 2020) on less than US$2 a day. While microfranchising is a strategy meant to rapidly scale-up entrepreneurship behaviour, very little is known about the microfranchising processes as well as its ability to enhance entrepreneurship in South Africa. Resultantly, the latter is ignored from entrepreneurship discussion and discourse at both academic and policy levels. To address this gap the study assessed microfranchising practices in South Africa, with the aim of proposing a microfranchising framework that will enhance entrepreneurship development. The study used the interpretivism research paradigm to achieve the study objectives. Primary and secondary data were employed to collect data on the microfranchising practices in South Africa. The study sampled five microfranchise entrepreneurs (four microfranchisee and one microfranchisor using the in-depth structured interview format while secondary data (microfranchisees and microfranchisors success stories) and was employed to collect data on the former and current practices of microfranchising in South Africa. The collected data was analysed using the ATLAS.ti. The study results show that microfranchisees exhibit traits of successful entrepreneurs. As a result, the study concludes that microfranchising can be used as a tool for entrepreneurship development using the proposed microfranchising framework developed in Chapter 6 of this study. The value of this work is among the first in seeking to propose a framework for developing entrepreneurship through microfranchising. The implication of the study is that it potentially provides policymakers with valuable tools to understand microfranchising practices and its efficacy in stimulating entrepreneurship development in South Africa. The study recorded and established microfranchising practices in South Africa to enhance the extinct academic literature on microfranchising and entrepreneurship ventures operating at the BoP. / NRF

The purpose of this study was to develop a conceptual integrated online visual merchandising framework containing online visual merchandising themes that South African apparel e-tailers could use when developing an effective apparel e-store, with the main aim of possibly influencing consumer purchasing behaviour. The study adopted a consumer-centred response approach to online visual merchandising in an attempt to holistically consider this area of the South African e-tail industry from the consumer’s perspective. The study followed a pragmatic paradigm that implemented a mixed-method approach. The qualitative section of the mixed-method approach primarily comprised four focus group interviews as the main data-collection instrument. The data obtained during the qualitative section was analysed by Tesch’s inductive descriptive coding technique, better known as thematic analysis. The findings obtained during the qualitative section were used as the basis for the quantitative section of the mixed-method approach, which implemented a self-administered web-based questionnaire as the data-collection instrument. The data was analysed by means of the Statistical Package for Social Science (SPSS) version 23. The findings of the study delivered a conceptual integrated online visual merchandising framework that consists of 13 themes and 82 items. This conceptual integrated online visual merchandising framework will contribute to the South African apparel retail and e-tail industry, as both apparel brick-and-mortar retailers and apparel e-tailers in South Africa can benefit from using the conceptual integrated framework as a guideline. The value of the conceptual integrated framework lies in the fact that it includes consumers’ views regarding the online visual merchandising themes. Therefore, apparel e-tailers, as well as brick-and-mortar retailers that want to develop an e-store, or update an existing e-store, can use this conceptual integrated framework as a guideline to make their online offering as attractive as possible. This way involves the least possible online risks to ensure that online trust is created, and ultimately, that consumer purchasing behaviour has been influenced. / Business Management / D. Phil. (Management Studies)