Thesis (MBA (Business Management))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: Since the early 1990’s shortly after Namibia gained independence, the Namibian financial
industry has gone through substantial changes. New bank legislation and regulatory
requirements were introduced and the market broadened to include blacks who were
excluded from the formal banking services. Customers gained more bargaining power,
competition intensified, international scrutiny intensified and customers now demand more
sophisticated products and quality service.
The Namibian banking and financial industry is relatively well developed in terms of service
institutions and instruments. Like most developing countries, the financial and banking
industry is made up of formal and informal sectors. The formal sector consists of the
central bank, commercial banks, development financial institutions (Development Bank of
Namibia), insurance companies and the stock exchange, while the informal sector
comprises mainly of micro lenders. The Namibian banking industry comprises of four
commercial banking groups of which FNB Namibia is the market leader, as can be seen in
this paper.
The BEE (Black Economic Empowerment) partnership has also enabled FNB to venture
into areas that were previously unbanked or under banked. The focus has shifted from
urban centres to rural areas. The financial services industry has prospects to grow given
the economic, political and environmental stability in Namibia. However, the Namibian
economy is not immune to the external forces responsible for the global economic slowdown.
This economic slowdown affects food, oil and energy prices, which in turn affect the
performance and profitability of FNB Namibia. In addition to this, an entry of two
commercial banks (ABSA and PHB Bank) is underway, which will erode FNB’s profits and
reduce market share.
The purpose of this research was to analyse and assess the alignment of the strategic
planning and budgeting process within FNB Namibia. It further intends to establish how
best this management model is able to cope with the fast changing environmental and
business landscape. The research also explores an alternative strategic planning and
budgeting approach that will promise to create and improve shareholder value. The
research focuses on the experience of FNB Namibia Holdings Limited, which operates in
the banking and financial industry.
The FNB Group was traditionally a banking institution with its primary focus on retail
banking and asset financing in the higher end of the market. The strategic goals of the
Group are based on three pillars, i.e. People, Customer and Efficiencies. The Group seeks
to achieve its mandate based on these pillars and through innovation and value adding
partnerships.
An overview of the banking industry as well as the governing structures of FNB and the
entire banking industry is provided. The external and internal business environment has an
impact on the operations of FNB, both negative and positive. Therefore an environmental
analysis on the basis of the political, economic, social, technological and environmental
aspects was done. A detailed historical perspective was provided, which also provided the
context of the transformation that took place in the discipline of strategic planning and
budgeting.
The Beyond Budgeting management model that is based on devolved leadership was
explored and recommended as an alternative to the traditional command and control
model. The devolved leadership principles empower the frontline managers and allow
decision making to be made at customer contact.
The move from the traditional strategic planning and budgeting model to Beyond Budgeting
will require a systems transformation and not only a change in some part. To understand
FNB’s management model, the Biomatrix systems thinking approach is recommended to
analyse the underlying processes in accordance with the seven perspectives of
organisation, i.e. ethos, environment, aims, structure, process, resources and governance.
The analysis of FNB along these seven perspectives will ensure that strengths and
weaknesses are identified in the whole system (company) and that the people in the
company are well prepared for change.
The Balanced Scorecard was also explored and recommended as a tool to improve
strategy implementation and a tool to communicate the strategy to the rest of the company.
Conclusions were drawn from the research and some recommendations were made for the
transformation of the FNB management model and the implementation thereof. / AFRIKAANSE OPSOMMING:
Sedert die vroeë 1990’s en kort nadat Namibië onafhanklikheid verkry het, het die
Namibiese finansiële bedryf aansienlike veranderinge beleef. Nuwe bankwetgewing en
reguleringsvereistes is ingestel en die mark het breër geword om swart mense in te sluit,
nadat hulle voorheen van die formele bankdienste uitgesluit was. Kliënte het groter
onderhandelingsmag verkry, mededinging het intensiewer geword, die internasionale
soeklig het feller geword en kliënte vereis nou meer gesofistikeerde produkte en
gehaltediens.
Die Namibiese bank- en finansiële bedryf is relatief goed ontwikkel ten opsigte van
diensinstellings en –instrumente. Soos in die meeste ontwikkelende lande bestaan die
finansiële en bankindustrie uit formele en informele sektore. Die formele sektor bevat die
sentrale bank, handelsbanke, ontwikkelings-finansiële instellings (Ontwikkelingsbank van
Namibië), versekeringsmaatskappye en die aandelebeurs, terwyl die informele sektor
hoofsaaklik uit mikroleners bestaan. Die Namibiese bankwese omvat vier
handelsbankgroepe waarvan FNB Namibia die markleier is, soos uit hierdie navorsing
afgelei kan word.
Die SEB-vennootskap (Swart Ekonomiese Bemagtiging) het FNB ook in staat gestel om
toegang te verkry tot areas waar daar voorheen geen of te min bankbedrywighede was.
Die fokus het van stedelike na landelike gebiede verskuif. Die finansiëledienstebedryf het
groeivooruitsigte gegewe die ekonomiese, politieke en omgewingstabiliteit in Namibië. Die
Namibiese ekonomie is egter nie immuun teen die eksterne magte wat verantwoordelik is
vir die wêreldwye ekonomiese verlangsaming nie. Hierdie ekonomiese verlangsaming het
‘n uitwerking op die prys van voedsel, olie en energie, wat op hulle beurt die prestasie en
winsgewendheid van FNB Namibia beïnvloed. Daarbenewens word die toetrede van twee
ander handelsbanke (ABSA en PHB Bank) verwag, wat FNB se wins verder sal inkort en
sy markaandeel sal verminder.
Die doel van hierdie navorsing is om te ontleed en te beoordeel of die strategiese
beplannings- en die begrotingsproses binne FNB Namibia met mekaar belyn is. Dit het verder ten doel om te bepaal hoe hierdie bestuursmodel die vinnig veranderende
omgewings- en sakelandskap ten beste kan hanteer. Die navorsing ondersoek ook ‘n
alternatiewe benadering tot strategiese beplanning en begroting met die oog op die
skepping en verbetering van aandeelhouerswaarde. Die navorsing fokus op die
ondervinding van FNB Namibia Holdings Ltd, wat in die bank- en finansiële nywerheid
bedryf word.
Die FNB Groep was tradisioneel ‘n bankinstelling met sy primêre fokus op
kleinhandelbankwese en batefinansiering in die hoër gedeelte van die mark. Die
strategiese doelwitte van die Groep is gebaseer op drie pilare, nl. Mense, Kliënt en
Vaardighede. Die Groep wil sy mandaat bereik gebaseer op hierdie pilare en deur
innovering en waardetoevoegende vennootskappe.
‘n Oorsig van die bankwese asook die bestuurstrukture van FNB en die totale
bankindustrie word voorsien. Die eksterne en interne sakeomgewing het ‘n impak op die
bedryf van FNB, beide negatief en positief. Daar is dus ‘n omgewingsontleding op die basis
van die politieke, ekonomiese, sosiale, tegnologiese en omgewingsaspekte uitgevoer. ‘n
Gedetailleerde historiese perspektief word gegee, wat ook die konteks voorsien vir die
transformasie wat plaasgevind het in die dissiplines van strategiese beplanning en
begroting.
Die Beyond Budgeting-bestuursmodel, gebaseer op die afgewentelde leierskap is
ondersoek en word aanbeveel as ‘n alternatief tot die tradisionele bevels- en beheermodel.
Die beginsels van afgewentelde leierskap bemagtig die bestuurders in die kantore waar
kliënteskakeling plaasvind, om besluite te neem.
Die verskuiwing van die tradisionele model van strategiese beplanning en begroting na
Beyond Budgeting, vereis ‘n stelseltransformasie en nie net ‘n gedeeltelike verandering
nie. Ten einde die FNB se bestuursmodel te begryp, word die Biomatrix-benadering van
stelseldenke aanbeveel om die onderliggende prosesse te ontleed ooreenkomstig die
sewe perspektiewe van organisasie, naamlik etos, omgewing, doelwitte, strukture, proses, hulpbronne en bestuur. Die ontleding van FNB op grond van hierdie sewe perspektiewe
verseker dat die sterk en swak punte in die hele stelsel (maatskappy) geïdentifiseer word
en dat die mense in die maatskappy goed voorberei word op verandering.
Die Balanced Scorecard is ook ondersoek en word aanbeveel as ‘n instrument om die
implementering van strategie te verbeter en die strategie aan die res van die maatskappy
te kommunikeer. Gevolgtrekkings is uit die navorsing gemaak en ‘n paar aanbevelings
word gedoen vir die transformasie van die FNB-bestuursmodel en die implementering
daarvan.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/6403 |
| Date | 12 1900 |
| Creators | Amuenje, Florentia |
| Contributors | Burger, Johan, University of Stellenbosch. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | University of Stellenbosch |
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