Thesis (MBA)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: DRDGOLD is a mining company forming part of the declining South African gold industry. During the turn of the century, the opportunity to innovate the business model arose. Without proactive intent, DRDGOLD tapped into the opportunity and revised their business model with great success. The success is evident in the improvement of headline earnings from 2002 to 2012. To discuss the changes to the business model, the author conducted a literature review on business models and innovation. From the review, the author selected the Osterwalder Business Model Canvas as the most suitable framework to discuss the changes of the business model. The Osterwalder Business Model includes the business-centric approach and is thus favoured for this discussion. First, the business model was populated with the information to have a comprehensible business model, and secondly, the changes to the business model were identified. The information for the study was sourced from public company documentation, mainly annual reports, secondary sources like Datamonitor, and interviews with four members of the leadership team. The four interviewees were Niel Pretorius, chief executive officer (CEO), Kobus Dissel group financial manager, Charles Symons, chief operating officer (COO), and Craig Barnes, chief financial officer (CFO). The four members had a long-standing relationship with the company and were part of the change process that took place at the company. The period before the study made the business model innovation possible. Firstly, the long mining history around Johannesburg produced the mine dumps that formed the core resource of the operations. Secondly, the craze to buy anything that looks like gold during the end of the 1990s introduced DRDGOLD to the surface retreatment operations with the purchase of Crown. The environment of the operations started to change, not only the operating environment, but also the other stakeholders. The importance of the community grew, the dividend yield to the shareholder increased in importance, the engagement with the regulators changed to a proactive engagement, and the environment was managed for a long-term perspective. The risks and returns for DRDGOLD started to misalign. The risk of pursuing the underground operations further increased considerably and unintentionally drove the costs up. Within the context of South Africa, the returns of underground operations started to erode as unscheduled stoppages increased. These stoppages were caused by events outside the control of the company, for example power failures, seismic activities and labour unrest. DRDGOLD repositioned itself as a factory that has a high throughput in material on a 24/7-operation rooster. The yields are significantly lower than the underground operations, but the risk of the new setup is also reduced greatly. Seismic activity does not impact the operations anymore. The production time of the operations has increased with less unscheduled stoppages. DRDGOLD changed to have itself valued on the discounted cash flow (DCF) method. The company’s share price is now valued on the DCF method based on the operational revenues. This is contrary to the gold mining industry valuation of South African mines. These mines are mainly valued on the reserves statement multiplied by the commodity price. The share price of DRDGOLD is heavily leveraged on the spot price of gold and the exchange rate of the South African Rand (ZAR) to the United States Dollar (US$). Any movement in these two indicators will have a significant impact on the share price.

Thesis (MBA)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: The research found and understood that the ability of the case study organisation (company X) to understand sustainability issues and stakeholder interests lies in the firm‟s core purpose and strategy (i.e. the notion of incorporating sustainability into business decisions). The research also understood that at company X the three strategy propositions (value, profit, people) are achieved through the process of implementing the company‟s change initiatives for sustainability and in turn support the company to evolve towards a sustainable enterprise. The ability to make sustainability a fundamental aspect of its business decisions is what distinguishes company X such that it can successfully design, introduce and diffuse strategies, practices and cultural traits aligned with sustainable models The researcher further believes that change interventions or initiatives carried out at company X such as value delivery, workforce plan alignment and cash generation are expected to enhance responsibility and accountability of employees. At company X, individuals are informed and allowed a great deal of autonomy when it comes to generating ideas to tackle strategic initiatives. The sense of inclusiveness allows individuals in company X to change their identity and behaviour in line with ideal models of the sustainable enterprise.

Thesis (MBA)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: A sound strategic approach to the management of the Mine Technical Services (MTS) department at Styldrift is critical. There are numerous areas of influence that play a role in the success or failure of the department. All these influences have an impact on each other and these influences need to be carefully understood. Within the MTS department there are also several subdepartments that have to be staffed, equipped and managed very well in order to get the best interdependent relationship between departments as possible. It is only through this interdependent relationship that the department can function complementarily and excel in achieving its strategic goals. Mineral resources at a mine are managed through the services from the mine technical team. There are few strategic documents in the mineral resource management (MRM) field that provide a guideline to set up a department successfully. Departments throughout the country operate on different levels with different standards without the knowledge shared from the one section to the next. For the purpose of this assignment, some of the ground principles were investigated and documented to create a link between departments, mines and companies to enable the move towards operational excellence within the MTS. Through the application of relevant literature, research was conducted on the industry to determine best practices. The industry best practices are discussed and referenced to Styldrift Specific. The strategy and management philosophy were evaluated and are highlighted in this assignment. With the literature firmly understood and the required direction from the company placed in perspective, the strategy for the MTS department could be crafted to an extent that it can be executed. Each department was broken down to manageable elements to understand the functioning of the department. The fundamental OR requirements were evaluated and are stipulated in this paper. The MTS department was then dissected through the available theory to guide the process of crafting and executing the departmental strategy. The journey through to operational excellence and the fundamental guideline of crafting and executing a strategic plan for an MTS department to manage mineral resources become clearer as the chapters of the assignment are completed. The end goal of the project was to have a document that can guide staffing, equipping and management of the MTS department at Styldrift in order to ensure success for the project, mine and surrounding communities.

Thesis (MBA)--Stellenbosch University, 2014. / ENGLISH ABSTRACT: The Little Office (TLO) is a proposed start-up that will enter the childcare industry as a provider of on-site day-care at office parks. The unique service offering that TLO will propose to the market is on-site day-care which will not only serve the employers in question, but also their employees. TLO offers organisations the opportunity to address employee productivity related to childcare, as well as to attract and retain skills, while being able to outsource the actual day-care function, which is unrelated to their core business. The service offering to the children and their parents will include a focus on educational, social, physical and emotional development. Market trend analysis indicates an increase in demand for day-care. Combined with the fact that companies are ramping up efforts to attract and retain employees, this results in a situation where the market size and market trends indicate significant opportunities for TLO. Competition is present but due to the size of the market and the core differences in the business model presented by TLO the threat of competition is not fierce. The strategy has been developed around the market analysis and by taking into account the opportunities and threats that exist for TLO. TLO’s strategy therefore serves to differentiate it from the rest of the market in terms of location of centres as well as primary target customers. Coupled with the research evidence of positive outcomes on employee performance, this suggests the concept will be welcomed by new economy organisations. The marketing strategy will aim at large businesses, office parks and government institutions. TLO will present custom feasibility studies to identified customers to establish whether the business is feasible in terms of space, number of employees with children in the organisation, requirements by parents etc. TLO’s strategy is to develop not only core service offerings but also distinctive competencies such as a lower child to carer ratio and high quality, cutting edge and innovative childcare. The various branches of TLO will be run by a central administrative hub, where most of the costs will initially be incurred. This centralised office will be run by the owner and would require administrative and qualified social worker staff. Each branch will require qualified educational staff in line with the number of children per branch. Due to the regulatory requirements inherent in the childcare industry, TLO will base their business operations around achieving compliance excellence in their business. In addition, a continuous evaluation of childcare sciences and re-evaluation of TLO’s service offering will ensure that the latest developments in childcare are addressed and thus TLO remains competitive and progressive. The business model is low risk and provides positive operating cash flow from year three. Through partnering with labour brokers and the use of intelligent placement strategies, TLO will ensure that they have the correct staff in the correct place. Combined with continual audits of performance, TLO will turn the human resources risk into a competitive advantage. The main objectives for the first three years of operation are:  To open four branches averaging 20 children per branch within the first year;  To increase the number of clients served by 100% in Year 2 and again in Year 3; and  To develop a sustainable, profitable, start-up business.

published_or_final_version / Business / Doctoral / Doctor of Philosophy

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Business Administration / Master / Master of Business Administration