Thesis (MBA)--University of Stellenbosch, 2010. / With limited financial and management resources companies cannot afford to spend resources on every growth opportunity that presents itself, and must therefore continuously rank potential opportunities in order to focus its resources and efforts on the most valuable opportunities. The aim of this study is to develop a system to rank and prioritise new capital projects of mining companies, and specifically Exxaro, which will allow the company to focus its growth efforts on the most valuable opportunities. The literature study firstly examines the use of portfolio management, and particularly the CFA Investment Management Process for ranking investment opportunities. Secondly, various methodologies utilised in the ranking of R&D projects are investigated, providing a guideline for terminology and steps to be used in a capital project ranking system. The project development cycle is also investigated in order to understand the impact of ranking projects that are in different stages of development. Lastly, the utilisation and merits of different financial measures and multi-criteria decision analysis techniques is examined. The literature study emphasised the following principles: Portfolio management is a very structured and formalised process for matching investments with the strategic objectives of an individual or company. The formalised nature of the process ensures that there are clear direction and rigorous criteria for decision making regarding investments, which in turn ensures that resources are spent only on robust investment opportunities. The ranking systems for Research and Development projects emphasised that a ranking system should contain multiple perspectives and criteria in order to comprehensively evaluate all aspects of investment opportunities, but that these perspectives and criteria should not duplicate or overlap in terms of measuring a certain aspect of an opportunity. When rigorous front end loading is applied in the project development process, there is sufficient information to compare and rank projects in different stages of the project development cycle. The financial criteria form a very important part of the ranking criteria and there are various financial criteria utilised to measure the merits of a project. While there are pros and cons to the use of certain criteria, companies should acknowledge and understand the shortcomings of each criteria, the financial aspect of a project measured by each criteria, and ensure that there is no duplication while it utilises the criteria that is well understood and accepted throughout the company. Multiple criteria decision analysis is a comprehensive and structured decision making process which requires the focussed participation of personnel involved in the decisions. The structured process provides a better understanding of the decision to be made, a means to clarify the decision and its implications and the stimulation of discussion and sharing of ideas about the decision and its context. A second part of the research entails qualitative research where interviews were held with four senior mining executives in order to utilise their experience with project ranking systems. The knowledge and understanding gained from the literature study was used to guide the interviews and adapt conversations to specific issues and different points of view. The focus of the interviews was not to obtain statistical data, but rather on having strategic conversations about how project ranking can and should be applied, and to extract inputs from the experience of the interviewees on the design of a ranking system. Findings from the interviews included an emphasis on the importance of guidance from the company strategy in determining perspectives and criteria for project ranking; a requirement to discard unworthy projects as soon as possible via a rigorous filter per commodity; guidance on perspectives and criteria that could be included in the ranking system; the need to firstly rank projects within a commodity before comparing the top projects across commodities; and the need to carefully manage the ranking process in order to ensure that it is included in the annual business process cycle of the company. The knowledge and practical inputs gained from the literature and the strategic conversations were finally applied to Exxaro’s processes and ranking system. Possible reasons for the failure of previous attempts at implementing a ranking system were found to be the lack of a clearly articulated strategy and insufficient involvement of the decision makers in the design of the project ranking system. With the design of a new ranking system, specific perspectives, criteria, filters and templates were designed and a process was suggested to ensure inclusion of the ranking system in the annual business process cycle of Exxaro. In conclusion, a number of suggestions were made for continuous improvement of the project ranking system and its outputs.

No description available.

Thesis (MComm (Business Management))--University of Stellenbosch, 2011. / ENGLISH ABSTRACT: The increase in globalisation and integration of world financial markets has seen a significant enhancement in the amount in foreign investments. This coupled with the downfall of the apartheid regime has given rise to an opportunity for companies to diversify their investment and operational portfolios internationally. Furthermore world foreign direct investment has reached a high during recent years. This indicates that companies are undertaking more opportunities to invest internationally. This study was undertaken from the perspective of South African companies who may be considering to invest abroad. This is due to the fact that a clear research gap regarding their perspective has been found. The gap was found because most studies chose to focus on countries such as the United States of America, China and Japan, while none focused on the point of view of South African companies to the best of the available knowledge. The second factor was that studies did not only focus on the financial considerations, but instead included social and political factors. This study, due to the research gap found, chose to focus on the financial considerations of South African companies when considering making capital investments abroad. The top 50 companies in South Africa were chosen according to the Financial Mail’s Top Companies issue. It was decided that 30 of these companies would be sufficient as the research sample for the study. A questionnaire was drawn up and used as an aide memoire in personal interviews with these executives of the relevant companies. This allowed an opportunity to explore their perceptions and opinions regarding the factors that were selected as important from the literature study. In addition to this the executives provided company information that would be used in the sensitivity analysis. It was found that there are a number of company- and country-specific factors that need be contemplated when considering capital investments abroad. The company-specific factors include the profitability, cash flow, liquidity, solvency and future long-term growth characteristics of the prospective investment opportunity. This should be done in comparison with the host country to ensure that it will be worthwhile to increase the company’s risk factors. The country-specific factors include any restrictions placed on the cross-border movement of capital, the taxation legislation, and the availability of reliable information regarding the foreign market. The availability of foreign financing, availability of foreign exchange hedging instruments, investment incentives and the availability of labour and capital in order to apply the correct operating leverages are also important. The company-specific and country-specific factors need be considered in conjunction with each other. Furthermore all factors need be compared between the home and host countries in order to ascertain whether the advantages of entering into the foreign market are large enough. / AFRIKAANSE OPSOMMING: Die toename in globalisering en integrasie van finansiele markte in die wêreld het ‘n beduidende toename in die hoeveelheid buitelandse investerings na vore gebring. Tesame met die ondergang van apartheid het dit geleenthede aan maatskappye gebied om hul investerings en operasionele portefeuljes internasionaal te diversifeer. Verder het globale buitelandse direkte investering ‘n hoogtepunt in die onlangse jare bereik. Dit toon dat maatskappye meer geleenthede onderneem om internasionaal te investeer. Die studie was onderneem vanuit die perspektief van Suid-Afrikaanse maatskappye wat dit moontlik oorweeg om in die buiteland te investeer. ‘n Duidelike navorsingsgaping is gevind op grond van die verskille tussen die maatskappye se perspektiewe. Die gaping het ontstaan aangesien meeste studies gefokus het op lande soos die Verenigde State van Amerika, China en Japan, met so ver bekend geen studie wat fokus vanuit Suid-Afrikaanse maatskappye se perspektief nie. Die tweede faktor was dat die studies nie slegs op finansiele inagnemings gefokus het nie, maar ook sosiale en politieke faktore ingesluit het. As gevolg van die navorsingsgaping wat gevind is, fokus hierdie studie op die finansiele oorgewings vir Suid- Afrikaanse maatskappye wanneer hulle kapitaalinvesterings in die buiteland oorweeg. Die 50 top maatskapye in Suid-Afrika was gekies volgens die “Financial Mail” se uitgawe van vooraanstaande maatskappye. Daar is besluit dat 30 van hierdie maatskappye ‘n voldoende navorsingsteekproef vir die studie sal wees. ‘n Vraelys was saamgestel om as hulpmiddel te dien vir die persoonlike onderhoude wat met die senior bestuurders gevoer is. Dit het die geleentheid geskep om hul perspektiewe en opinies rakende die belangrike faktore wat uit die literatuurstudie geidentifiseer is, te verken. Die uitvoerende beamptes het ook maatskappy-inligting verskaf wat in die sensitiwiteitsanalise gebruik sou word. Daar was gevind dat ‘n aantal maatskappy- en land-spesifieke faktore bestaan waaroor besin moet word wanneer buitelandse kapitaalinvesterings oorweeg word. Die maatskappy-spesifieke faktore sluit in winsgewendheid, kontantvloei, likiditeit, solvabiliteit en toekomstige langtermyn groei-eienskappe van die voornemende investeringsgeleentheid. Dit moet gedoen word in vergelyking met die land waarin geinvesteer gaan word on te verseker dat dit die moeite werd sal wees om die maatskappy se risikofaktore te verhoog. Die land-spesifieke faktore sluit in enige beperkings wat geplaas word op die beweging van kapitaal oor grense, die belasting-wetgewing, en die beskikbaarheid van betroubare inligting rakende die buitelandse mark. Die beskikbaarheid van buitelandse finansiering, beskikbaarheid van verskansingsinstrumente vir buitelandse valuta, investeringsaansporingsmaatreels en die beskikbaarheid van arbeid en kapitaal om die korrekte bedryfshefboomwerking toe te pas is ook belangrik. Die maatskappy-spesifieke en landspesifieke faktore moet gesamentlik oorweeg word. Verder moet alle faktore tussen die tuisland en die land waarin geinvesteer gaan word, vergelyk word om vas te stel of dit voordelig sal wees om die buitelandse mark te betree.

Thesis (MBA (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: Tobin's q value is widely used by financial analysts as a performance indicator ratio. The market value of a firm over the replacement cost of fixed assets and inventory serves as an indication of whether value is created by investing internally in the firm, or whether value is destroyed by investing in negative net present value projects. Where Tobin's q is greater than one (q > 1), the market value of the firm is greater than what it would cost to replace fixed assets and inventory. Therefore value is created. Firms that have a Tobin's q value of less than one are advised to pay dividends rather than invest in negative net present value projects. Over 200 different methods exist of calculating Tobin's q. By increasing the complexity of the algorithm to determine q, very little is achieved to improve the measurement quality. A strong link exists between excess market returns, free cash flow spending announcements and Tobin's q value for the firm. Firms with a high Tobin's q value should ensure that good investment possibilities are pursued. The use of internal funds to fund new investment is viewed in a positive light by the market and above average returns are generated. Firms with a high Tobin's q value and high free cash flow show lower returns. These lower returns happen as a result of the market recognising the firm's failure to capitalise on favourable internal investment opportunities. / AFRIKAANSE OPSOMMING: Tobin se q-waarde word wyd gebruik as prestasie aanwyser deur finansiele ontleders. Die markwaarde van 'n firma gedeel deur die vervangingskoste van vaste bates en voorraad, dien as 'n maatstaf om aan te dui of waarde geskep word deur intern in die firma te belê en of waarde vernietig word deur in projekte met 'n negatiewe netto teenswoordige waarde te belê. Waar Tobin se q-waarde groter is as een (q > 1) is die markwaarde van die firma groter as wat dit sal wees om die vaste bates en voorraad te vervang. Sodoende word waarde geskep. Firmas met 'n q-waarde van minder as een word aanbeveel om eeeder dividende uit te betaal as om die beskikbare fondse in projekte met 'n negatiewe netto teenswoordige waarde te investeer. Meer as 200 verskillende metodes bestaan om Tobin se q-waarde te bereken. Deur die kompleksiteit van die algoritme te vergroot om q te bereken, dra min by tot groter akkuraatheid van die meting. 'n Sterk verband bestaan tussen bo-gemiddelde markopbrengste, aankondigings oor die besteding van vrye kontantvloei en die Tobin q-waarde van die firma. Firmas met 'n hoë Tobin q-waarde moet verseker dat goeie investeringsgeleenthede aangegryp word. Die gebruik van interne fondse om nuwe investering te finansier word deur die mark in 'n positiewe lig beskou en bogemiddelde opbrengste word gelewer. Firmas met 'n hoë Tobin q-waarde en hoë vrye kontantvloei toon laer opbrengste. Hierdie laer opbrengste is as gevolg van die mark wat besef dat die firma nalaat om gunstige interne investeringsgeleenthede te gebruik.

Thesis (MBA)--Stellenbosch University, 2001. / ENGLISH ABSTRACT: "Imagine improving the value of a capital project by 30%, or increasing the throughput of an organisation with 20% less capital expenditure!" The normal reaction to this sort of statement is that it is impossible and only looks good on paper. However, by applying proper principles and techniques, an organisation or project team can embark on a journey which will allow them to creatively apply those skills and knowledge in order to maximise the value of the organisation, project or venture. It will allow business to evaluate and extract value by analysing business cases, process- and engineering design issues, project development and implementation plans. Too frequently project teams find themselves tied up with the nitty gritty issues of projects, causing them to loose sight of the bigger picture. The existence hereof of this is often indicated by too much focus on actions to reduce capital expenditure and too little on the impact thereof on operational cost and value adding potential, destroying overall value of the venture in the process. This aim with this document is to provide the reader with an overview of tools, techniques and principles to aid organisations to enhance the value of capital projects. It is not intended as a handbook or manual to enable the reader to become a skilled practitioner in this field, but rather to give the interested novice, general manager or project leader a background overview of, and insight into, the steps, tools, techniques and principles available, to improve the value of a project. The basic fundamentals are not rocket science, but it is the process of becoming involved in applying lateral thinking to each phase of a project, or existing operation that unlocks the true value. This document firstly gives background on the reasons why value adding potential usually exists in capital projects, and identifies tell tale indicators of hidden value opportunities in projects. Basic fundamentals are discussed to familiarise the reader with general concepts used in later chapters. Subsequently, the steps for execution of a value improving intervention are discussed, to give the reader a thorough background and understanding of the value improving processes involved. / AFRIKAANSE OPSOMMING: "Verbeter die waarde van 'n kapitaal projek met 30%, of verhoog die deurset van 'n organisasie met 20% minder kapitaal spandering!" Die verwagte reaksie op hierdie tipe stellings is dat dit onmoontlik is en net goed lyk op papier. Die aanwending van toepaslike beginsels en tegnieke kan 'n organisasie egter in staat stel om daardie vaardighede en kennis, waaroor hulle reeds beskik, te benut om die waarde van die organisasie of projek te maksimeer. Dit kan besighede toelaat om waarde te evalueer en te ontsluit deur besigheidsplanne, proses- en ontwerp aangeleenthede, projek ontwikkeling en implementeringsplanne te analiseer, te verstaan en te verbeter. Te dikwels bemoei projekspanne hulle met die detail van projekte, wat veroorsaak dat hulle die groter prentjie uit die oog verloor. Die teenwoordigheid hiervan word veral aangedui deur te veel fokus op aksies om kapitaal spandering te verminder, en te min op resulterende bedryfskoste en waarde skeppende potensiaal te konsentreer. Hierdeur word die algehele waarde waartoe die projek instaat is ondermyn. Die doel met hierdie dokument is om 'n oorsig te gee na die gereedskap, tegnieke en beginsels wat beskikbaar is ter ondersteuning van organisasies wat die waarde van kapitaalprojekte wil verbeter. Dit is nie bedoel om 'n handboek of voorskrif te wees om die leser instaat te stel om 'n vaardige verbeteringspraktisyn te word nie, maar eerder om aan die geinteresseerde leek, projekbestuurder of algemene bestuurder agtergrond en insig te gee oor die stappe, gereedskap, tegnieke en beginsels wat beskikbaar is om die waarde van 'n projek te verhoog. Die grondbeginsels is nie kwantumfisika nie, maar behels 'n proses om betrokke te raak in die toepassing van laterale denke en kreatiwiteit in elke fase van 'n projek of besigheid, om die werklike waarde te ontsluit. Hierdie dokument gee eerstens agtergrond oor die redes waarom potensiaal vir waarde toevoeging in kapitaalprojekte bestaan, en identifiseer 'n aantal indikators van die teenwoordigheid van verskuilde waarde aan. Grondbeginsels wat in verdere hoofstukke gebruik word, word bespreek en toegelig. Daarna word die stappe ter uitvoering van 'n waarde verhogingsintervensie bespreek, om 'n deeglike agtergrond te verkry van die betrokke proses.

published_or_final_version / Management Studies / Master / Master of Business Administration

This study investigates the causes and consequences of acquisitions primarily foreign acquisitions undertaken by UK publicly listed firms. Firm- and country-specific factors are found to influence the propensity to acquire and the location of the acquired subsidiary. Indicators of a firm's organisational experience, such as firm size, profitability, and its investment history, increase the probability that an acquisition (relative to no acquisition) is undertaken. Larger and more profitable firms are also more inclined to invest abroad (rather than at home), as are firms engaged in RandD activities. In choosing among foreign locations, an increase in country-specific uncertainty (proxied by exchange rate and stock market volatility) deters a firm from investing in that location. Likewise, at the firm level, uncertainty is found to discourage a firm from acquiring (relative to not acquiring), and to deter an acquirer from undertaking a foreign (relative to a domestic) acquisition. Based on changes in industry-adjusted profit levels, acquiring firms in general perform poorly after making large foreign acquisitions. However, examining profit variability reveals interestingly that firms more likely to experience a decline in profit levels are also more likely to enjoy a reduction in profit variability, and vice versa, which suggests that a risk-return tradeoff could be a consideration when acquisitions are undertaken. When acquisition performance is evaluated on the basis of a firm's share price response to its acquisition announcement, the event study shows no evidence of negative performance. Resolving this discrepancy between the two performance measures leads us to examine the reliability of the stock market as an indicator of acquisition outcomes. On the one hand the immediate stock market reaction has some ability to predict a firm's postacquisition performance, while on the other post-acquisition stock returns are shown to be not completely consistent with market efficiency.

This study used protocol analysis to identify key variables in the venture capital investment decision-making process. The study used a fictional business plan which was based on six actual business plans. This fictional business plan was presented to ten venture capitalists who were asked to review it to decide whether to interview the investee. The protocols obtained from these subjects were analyzed to determine patterns within the subjects' review. The sections of the business plan which were commonly reviewed first were the deal structure, the executive summary, and the management section. The management section was used by the greatest number of subjects. The market section was used the greatest number of times. The data were also organized by type of operators used in each subject's protocols. Information Search/Retrieval operators were most common, followed by Task Structuring/Set Goal operators. When classified into the four major categories of Task Structuring/Set Goal, Information Acquisition, Analytical/ Inferential, and Choice operators, Analytical/Inferential operators were used most frequently. Choice operators were least used. The phrases were analyzed by the relevant section in the business plan. The market received the greatest number of references, followed by references to the product and to management. However, when references to the income statement and balance sheet were combined as phrases relevant to the financial statements, the financial statements were referred to more frequently than the product or the people. The subjects appeared to use an unidentified choice program within which certain models could be identified as subroutines. The subjects used an elimination-by-aspects model to screen the business plan. If the business plan met the criteria within the elimination-by-aspects model of the subject, the subject used an additive/nonlinear model for the remainder of the review. The results of this study indicate that financial statements provide information important in the venture capital investment decision-making process. This finding is contrary to the advice usually given to potential venture capital investees.

This thesis attempts to analyze the relationship between economic growth and human capital investments in Taiwan. The study's general hypothesis is that increases in human capital investments will stimulate the growth of gross national product. The data were drawn from official Taiwanese publications from different sources. The first chapter emphasizes the importance of human capital investments. Chapter II reviews the related literature. Chapter III specifies the model and research methods. Chapter IV analyzes the impact of human capital investments on gross national product. The study is summarized and conclusions are drawn in Chapter V. Materials collected to analyze the above problem reveal that human capital investments have a positive and significant effect on economic growth. In fact, human capital investments and economic growth are mutually affected.

M.Com. (Development Economics) / According to section 152 (1) of the Republic of South African Constitution Act (No. 108 of 1996), the municipalities are required by law to provide basic services in a sustainable manner to their respective communities. However, the municipalities have been facing challenges in carrying out their mandate successfully. One of the major obstacles in this regard has been the increasing rate of urbanisation due to various factors. Service delivery protests by the respective communities continue to be on the rise as well due to insufficient access to the basic services provided by the municipalities. The main aim of this paper was to explore the impact of urbanisation on the delivery of basic services by the municipalities in Gauteng Province. In this study, the four basic services categories namely, access to water, electricity, sewerage and sanitation as well as solid waste management formed an integral part of the weighted service delivery index and thus the dependent variable. Urbanisation, capital expenditure and operating expenditure were the explanatory variables. The research has demonstrated that urbanisation does have an impact on the level of basic service delivery. Even though the government mobilises resources towards the delivery of basic services, these resources are insufficient to cater for the needs of the population as a whole.