Executive Summary This report uses modified physics and the basic business relationship equations to describe the business system. The physics - business equations are derived using conformal mapping, while thermodynamic and kinematic relationships are further developed and related before being applied to a business situation. The system developed has general applicability to business and can be used for strategic competitive positioning, amongst other postulated uses. The main purpose of this project is to build on existing work in the area of process modeling and strategy formulation to define a quantitative management tool that will effectively enable the formulation of a generic framework, to measure the effects of various strategic options using time based financial management and physics models. The main aims of this research project are to provide an evaluative summary of the existing literature on the applications of process modeling and physics to business limited in scope to competitive strategic planning through a literature review of existing business models and the subsequent development of a mathematical model based on kinematics and thermodynamics for strategic formulation. From the literature review derive a mathematical framework relating business and physics based on an indirect relationship of physical laws to business models based on existing knowledge. Further explain why the derived model has applications to business, and derive a non-rigorous mathematical proof thereof. From these equations make recommendations on how this model can be utilised as a tool to assist in strategy formulation. Thereafter provide statistical proof that the model is applicable to a defined set of companies and show by means of applications how to determine optimal strategies using the model. The main objectives of the research project are to utilise the quantitative tool to determine where a company is, and where it should position itself in future to optimise its competitive position. Further, the framework must be developed into a strategic tool that would allow for the fast turnaround in the implementation of strategy, and the ability to quickly predict necessary changes in direction. The statistical hypothesis tested asks if it is possible to relate the laws of physics to business and use the resultant mathematical framework to analyse a firm’s competitive position in an industry and position it accordingly. From the derived equations a mathematical model to determine strategic options for a firm using time based financial accounting principles and physics equations can be formulated and used to find profitable options for a firm. By implication the model can be applied to strategic positioning of the firm. Unfortunately there is no work in the literature reviews to build this study on and much of it is built from first principles. This leads to complex mathematical relationships, which may prove difficult to follow. .

Executive Summary This report uses modified physics and the basic business relationship equations to describe the business system. The physics - business equations are derived using conformal mapping, while thermodynamic and kinematic relationships are further developed and related before being applied to a business situation. The system developed has general applicability to business and can be used for strategic competitive positioning, amongst other postulated uses. The main purpose of this project is to build on existing work in the area of process modeling and strategy formulation to define a quantitative management tool that will effectively enable the formulation of a generic framework, to measure the effects of various strategic options using time based financial management and physics models. The main aims of this research project are to provide an evaluative summary of the existing literature on the applications of process modeling and physics to business limited in scope to competitive strategic planning through a literature review of existing business models and the subsequent development of a mathematical model based on kinematics and thermodynamics for strategic formulation. From the literature review derive a mathematical framework relating business and physics based on an indirect relationship of physical laws to business models based on existing knowledge. Further explain why the derived model has applications to business, and derive a non-rigorous mathematical proof thereof. From these equations make recommendations on how this model can be utilised as a tool to assist in strategy formulation. Thereafter provide statistical proof that the model is applicable to a defined set of companies and show by means of applications how to determine optimal strategies using the model. The main objectives of the research project are to utilise the quantitative tool to determine where a company is, and where it should position itself in future to optimise its competitive position. Further, the framework must be developed into a strategic tool that would allow for the fast turnaround in the implementation of strategy, and the ability to quickly predict necessary changes in direction. The statistical hypothesis tested asks if it is possible to relate the laws of physics to business and use the resultant mathematical framework to analyse a firm’s competitive position in an industry and position it accordingly. From the derived equations a mathematical model to determine strategic options for a firm using time based financial accounting principles and physics equations can be formulated and used to find profitable options for a firm. By implication the model can be applied to strategic positioning of the firm. Unfortunately there is no work in the literature reviews to build this study on and much of it is built from first principles. This leads to complex mathematical relationships, which may prove difficult to follow. .

Balanced Scorecards have developed into a main management tool for analysing the inter-dependencies between the functional areas of a business organisation. Using SAP^TM Strategic Enterprise Management this book serves as a companion to a practical lecture on how to implement a Balanced Scorecard in an IT system. Students create the underlying Data Warehouse structures, define the key figures and their inter-dependencies, build the Scorecard system and analyse it in a realistic case study. A host of free, Web-based materials may be used in conjunction with this book, available at http://erp.wu-wien.ac.at. The material includes transparencies for classroom use and a case study with data for student projects. The intended audience of this book is students of business administration and applied computing science, consultants and teachers. But also practitioners in financial and management accounting will find this book useful as it provides an overview of how to implement an important management method in an IT system. / Series: Working Papers on Information Systems, Information Business and Operations

M.Com. (Business Management) / Please refer to full text to view abstract

This purpose of the research is to investigate the relationship between the implementation of an Enterprise Risk Management (ERM) and corporate governance within the public sector. Furthermore, the study focused on the role of internal audit in ERM implementation as well as the relationship between ERM and risk communication. Questionnaires designed to collect data were e-mailed to risk managers; internal auditors and senior managers. The survey confirmed a positive association between the implementation of an ERM framework and corporate governance as well as risk communication. The majority of respondents further confirmed that corporate governance concerns were the main driving force behind the implementation followed by the impact of HIV/AIDS on their respective organisations. Of those surveyed 38% confirmed that their ERM process is embedded and they have also created the position of chief risk officer or similar. However, it is important to note that the role of internal audit in ERM implementation is not fully integrated.

An investigation into whether the colour red has more impact or leads to common perceptions about the price or value of retail products in advertising. / ABSTRACT Colour is often an important non verbal cue in advertising. Much research has been dedicated to the creative aspects of advertising generally and to factors affecting consumer response in relation to marketing, advertising and pricing. This study looks at the colour red and investigates whether use predominant use of red in sale promotions print advertising is justified on the basis of its ability to impact cognitively or affectively. The study comprises of two experiments, one for awareness and one for price perception and purchase intent. In each experiment, red is compared to other colours in order to establish any significant differences. The second experiment goes further to examine whether the intensity of colour, verbal cues or demographic differences have an impact on the results. The literature review begins with an examination of price theory and the role of sales promotions in organizations. It considers advertising response models with focus on the persuasive hierarchy AIDA model. The impact of colour is then considered along with consumer psychology and behavior as well as theories relating to demographic and cultural responses to colour in advertising. Argument from the sources is then put forward to suggest that research into the effects of colour in advertising is underexplored and that the role of colour in affecting response is complex and is over oversimplifies by advertising practitioners. The research results are presented revealing few significant differences between red and alternative colours for awareness, price perception or purchase intent. The result for awareness is blurred by research limitations, but red does not emerge as a candidate for exacting higher levels of awareness than a number of other colours. In the second experiment, red is found to be inferior to blue in affecting purchase intent. Red at 50% saturation is shown to have a more positive impact on purchase intent that a red hue at full saturation. Demographic splits do not show conclusive results, but it is suggested that a larger sample size would induce a better price perception of red for the black community than for other racial groupings. Discussion and recommendations follow. In this study, red shows no qualities to justify its predominant use in price promotion advertising and more benefit might be obtained for the brand by differentiating through use of alternative colours that may stand out in a sea of red over traditional sale periods. The principle recommendations are, firstly, the need to acquire a deeper understanding of the effect of colour in advertising. In the more complex, competitive global marketplace competition for customer attention is high and the margin of error for irrelevant advertising appeals are low. Secondly, the argument is made for colour usage to be built around long term branding concerns rather than short term requirements for advertising response.

An investigation into whether the colour red has more impact or leads to common perceptions about the price or value of retail products in advertising. / ABSTRACT Colour is often an important non verbal cue in advertising. Much research has been dedicated to the creative aspects of advertising generally and to factors affecting consumer response in relation to marketing, advertising and pricing. This study looks at the colour red and investigates whether use predominant use of red in sale promotions print advertising is justified on the basis of its ability to impact cognitively or affectively. The study comprises of two experiments, one for awareness and one for price perception and purchase intent. In each experiment, red is compared to other colours in order to establish any significant differences. The second experiment goes further to examine whether the intensity of colour, verbal cues or demographic differences have an impact on the results. The literature review begins with an examination of price theory and the role of sales promotions in organizations. It considers advertising response models with focus on the persuasive hierarchy AIDA model. The impact of colour is then considered along with consumer psychology and behavior as well as theories relating to demographic and cultural responses to colour in advertising. Argument from the sources is then put forward to suggest that research into the effects of colour in advertising is underexplored and that the role of colour in affecting response is complex and is over oversimplifies by advertising practitioners. The research results are presented revealing few significant differences between red and alternative colours for awareness, price perception or purchase intent. The result for awareness is blurred by research limitations, but red does not emerge as a candidate for exacting higher levels of awareness than a number of other colours. In the second experiment, red is found to be inferior to blue in affecting purchase intent. Red at 50% saturation is shown to have a more positive impact on purchase intent that a red hue at full saturation. Demographic splits do not show conclusive results, but it is suggested that a larger sample size would induce a better price perception of red for the black community than for other racial groupings. Discussion and recommendations follow. In this study, red shows no qualities to justify its predominant use in price promotion advertising and more benefit might be obtained for the brand by differentiating through use of alternative colours that may stand out in a sea of red over traditional sale periods. The principle recommendations are, firstly, the need to acquire a deeper understanding of the effect of colour in advertising. In the more complex, competitive global marketplace competition for customer attention is high and the margin of error for irrelevant advertising appeals are low. Secondly, the argument is made for colour usage to be built around long term branding concerns rather than short term requirements for advertising response.

This purpose of the research is to investigate the relationship between the implementation of an Enterprise Risk Management (ERM) and corporate governance within the public sector. Furthermore, the study focused on the role of internal audit in ERM implementation as well as the relationship between ERM and risk communication. Questionnaires designed to collect data were e-mailed to risk managers; internal auditors and senior managers. The survey confirmed a positive association between the implementation of an ERM framework and corporate governance as well as risk communication. The majority of respondents further confirmed that corporate governance concerns were the main driving force behind the implementation followed by the impact of HIV/AIDS on their respective organisations. Of those surveyed 38% confirmed that their ERM process is embedded and they have also created the position of chief risk officer or similar. However, it is important to note that the role of internal audit in ERM implementation is not fully integrated.

Customer relationship management (CRM) as an academic subject and a business tool is as relevant today as ever before. As part of the CRM model banks have implemented the concept of relationship banking. The retail banking industry has been troubled with the issue of customer loyalty as both personal and commercial customers have shown the tendency to utilise different products and services from different banks or financial institutions. The problem seems to be Customer Loyalty (or is it?), which as a field of research has been exploited in recent years. The aim of the research report will be to contribute to the existing research on Customer Loyalty and the effects of Relationship Banking (as part of a CRM model) thereon. / Relationship banking, as exemplified by retail banks, is a valuable enabling strategy that promotes competitiveness and provides sustainable success. The utilisation of relationship banking as a business strategy to increase customer retention, create customer loyalty and ultimately increase long-term profits is a relative young tactic, originating in the 1980s and gathering pace during the 1990s. The correct application of relationship banking could impact on the bottomline of banks favourably. Hence the positioning of this research to investigate the effect of the relationship banking offering on customer loyalty, and its use in realising customer loyalty and long-term value from relationship banking initiatives. The retail banking industry in South Africa is a complex and very competitive environment, which is dominated by the big four banks (ABSA, First National Bank, Nedbank, and Standard Bank). It is a business imperative for the management of the banks to ensure that they establish, develop and improve relationships with their most important asset, their customers. Operating in such a dynamic environment requires of banks to fully understand all the factors of relationship banking that affect their success and market share. What is the impact of relationship banking on customer loyalty, and what are the possible results that can flow from a close relationship between bank and customer? The main research hypothesis states that business customers who receive the relationship banking offering from their retail bankers are more loyal towards their bank than those business customers who do not receive the relationship banking offering. With this in mind the research seeks to clarify specific primary objectives based on the hypothesis: • To investigate the impact that relationship banking has on the loyalty of business banking customers in the retail banks in South Africa. ii • To identify the critical factors of relationship banking that can influence customer loyalty. • To identify the benefits of relationship banking and customer loyalty. The research composed of a field study in the retail banking industry, with a sample of 80 business banking customers with a close business relationship with their banker or having a personal banker looking after the relationship, and 80 business customers without a close business relationship with their banker or no personal banker looking after their relationship. The survey focused on the attitude or perception of business customers based on relationship and loyalty dimensions. The research, in combination with the literature review provided valuable insight into the factors influencing relationship banking, its value as part of a retail business banking proposition, as well as the effect it has on customer loyalty. It also provided insight into the importance of customer loyalty and its impact on customer retention and long-term profitability. It is clear from the literature review and research that a relationship banking offering adds value with regard to customer retention and loyalty. The results and findings from the research and literature review represent a remarkable difference between the perceived levels of customer loyalty of the two groups. This is an indication that relationship banking affects customer loyalty positively. The critical factors of relationship banking that were found to influence customer loyalty included the value proposition, service and quality, employee competency (relationship banker), price, reward and recognition, and communication. The benefits of developing and building customer loyalty included: retention of customers and staff, customer satisfaction, trust, word of mouth referrals and growth, cost reduction, cross-sales, profitability (relationship lifetime value) and enhancing the bank’s competitive advantage. iii The researcher recommends that retail banks must continue to implement relationship banking offerings across all business customer segments. A possible consideration will be to divide the relationship banking offering on different levels: high-touch; medium-touch; and low-touch. These different value propositions should represent mutual (bank and customer) requirements and financial feasibility for banks. Banks must place customer-centricity at the core of their relationship banking strategy. To support the relationship strategies banks need to understand the behaviour of their customers and their buying habits. Market segmentation is a critical aspect of relationship marketing and the segmentation of business customers must be in line with the different levels of relationship offerings. Segmentation should also be in line with customer value or customer profitability, complexity of financial demands, annual turnover and industry. This segmentation will allow banks to provide the correct relationship banking offering to the right customer. To support the segmentation process banks need to be able to determine the individual customer profitability. Management information systems must be developed and used to determine the customer’s profitability. Once the segmentation has been concluded banks must implement and use applicable CRM strategies and CRM systems to complement the relationship banking offering. It’s about knowing their customers well enough to determine the kind of relationship they would like to have. Banks must also try to extend their CRM strategy across all customers. The support from top management and understanding of the relationship banking offering is critical as a lack of support can derail the success. The main recommendations for further study that transpired from the research included: • Research on the calculation of relationship life time value. iv • Research on a model for appropriate market segmentation of business banking customers in South Africa. • Research on the importance of reward and recognition strategies to valued customers, plus loyalty programmes. • Research on the key characteristics of relationship bankers.

Decades after the idea of not-for-profit marketing was first introduced the uptake has not been universal. This study investigates the application of commercial marketing principles in a sector where objectives other than profit are pursued. In particular, it seeks to establish the effectiveness of not-for-profit marketing in encouraging the public to “pay” the required “price”; to investigate the influence of charity brands on stakeholder choices; the influence of a charity’s reputation on donor behaviour; and whether smaller charities are aware of and use their brands. A questionnaire tested donor perceptions and through a focus group insight was gained into the marketing practices of smaller charities. The results indicate that not-for-profit marketing is effective and that smaller organisations can compete through less expensive marketing techniques, that charity brands are extremely valuable but underutilised, and that an organisation’s reputation is its most valuable asset. Recommendations are made to improve the performance of smaller charities by addressing marketing and wider management practices.