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Sasol mining : a case study in outsourcing

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: Sasol Mining is a wholly owned subsidiary of Sasol Limited, an integrated oil and gas
company with substantial chemical interests. Sasol Mining extracts and supplies coal to
Sasol's synfuels and chemical plants in South Africa, but also sells some of its output to
extemal customers, primarily international (United States Securities Exchange
Commission, 2005: 39). Outsourcing, the practice of buying products and services from
external suppliers, increasingly forms part of the Sasol Mining business environment
and some of the challenges experienced and trends seen raise some interesting why
and how questions. Such questions are the topic of this research report. The case study
strategy to research has considerable ability to generate answers to 'why?' as well as
'what?' and 'how?' questions (Saunders, et aI., 2003: 93). Before such questions are
explored further however, a comprehensive literature review was carried out, but with
the intention to develop a theoretical framework of good outsourcing practice. This
theoretical framework lies at the heart of the research design and methodology. The
research objective is to develop an explanatory theory that associates certain factors
with the effectiveness of outsourcing initiatives at Sasol Mining. This research report's
central proposition is that any results obtained by Sasol Mining with outsourcing
initiatives can be explained by understanding to what extent its management of the
outsourcing process is in line with the theory of good outsourcing practice. This case
study's fundamental design will be that of a single-case with multiple, embedded units
of analysis. Sasol Mining serves as the single case in this research design and individual
outsourcing initiatives and its results at Sasol Mining are logical subunits that can be
identified and is studied in operational detail. Good evidence was found that the
effectiveness of outsourcing initiatives at Sasol Mining can be explained by
understanding the extent to which its outsourcing practices are in line with the
theoretical framework of good outsourcing practice. In addition, it is recommended that
Sasol Mining raise a strategic debate regarding outsourcing and its place in Sasol
Mining's business strategy, but against the backdrop of its current outsourcing practice
and the developed theoretical 'framework. There is good evidence that this framework
developed as part of the literature review (heretofore not presented at such an
integrated, all-encompassing level) is a "good" theory. Tantalising bits of information in
the form of thematic materials and recurring patterns surfaced during data reduction
and analysis. Black Economic Empowerment and outsourcing is one such example, and
it was explored to some extent. Many more exist. The case study as a research strategy
was successful in the sense that the research question could be answered, in addition
to the analytiC generalisation that could be made about the nature of the theory on
outsourcing practice itself. Although at times data recording and analysis requirements
were onerous, the research strategy also led to an in-depth understanding of Sasol
Mining as a business. This is the strength of the case study approach to research. That
is also what made the research report worthwhile. / AFRIKAANSE OPSOMMING: Sasol Mynbou is 'n filiaal van en word ten volle besit deur Sasol Beperk, 'n
ge'integreerde olie- en gas maatskappy met uitgebreide chemiese belange. Sasol
Mynbou ontgin en voorsien steenkool aan Sasol se sintetiese brandstowwe- en
chemiese aanlegte in Suid Afrika, maar verkoop ook steenkool aan eksterne klante,
hoofsaaklik in die internasionale arena (United States Securities Exchange Commission,
2005: 39). Eksterne verkryging, die praktyk waarvolgens 'n onderneming produkte en
dienste van eksterne verskaffers verkry, vorm toenemend deer van die Sasol Mynbou
besigheidsomgewing en van die probleme wat ervaar word daarmee en van die
waarneembare neigings laat interessante hoekom en hoe vrae ontstaan. Sulke vrae
vorm die onderwerp van hierdie navorsingsverslag. Die gevallestudie benadering tot
navorsing beskik oor 'n kragtige vermoil om antwoorde te verskaf rakende 'hoekom?',
'wat?' en 'hoe?' vrae (Saunders, et ai., 2003: 93). Alvorens sulke vrae egter verder
ondersoek word, word 'n omvattende literatuurstudie uitgevoer met die doer om 'n
teoretiese raamwerk te ontwikkel van goeie eksterne verkrygingspraktyk. Hierdie
teoretiese raamwerk vorm ook die kern navorsingsontwerp en -metodologie. Die
navorsingsdoelwit is om 'n verklarende teorie te ontwikkel wat sekere faktore koppel
aan die effektiwiteit van eksterne verkrygingsinisiatiewe by Sasol Mynbou. Hierdie
navorsingsverslag se sentrale stelling is: enige resultate wat deur Sasol Mynbou behaal
word met eksterne verkrygingsinisiatiewe kan verklaar word deur die mate waartoe die
eksterne verkrygingsproses bestuur word volgens die teoretiese raamwerk van goeie
eksterne verkrygingspraktyk. Die gevallestudie se fundamentele ontwerp is een van 'n
enkele geval met veelvuldige ingeslote eenhede van analise. Sasol Mynbou dien as die
enkele geval met individuele eksterne verkrygingsinisiatiewe en hul onderskeie resultate
wat identifiseerbaar is as logiese sub-eenhede. Daar is goeie bewyse gevind dat die
effektiwiteit van eksterne verkrygingsinisiatiewe by Sasol Mynbou verklaar kan word
deur 'n beg rip te ontwikkel vir die mate waartoe die bestuur van hierdie inisiatiewe
belyn is met die teoretiese raamwerk van goeie eksterne verkrygingspraktyk. Dit word
ook aanbeveel dat Sasol Mynbou 'n debat op strategiese vlak begin wat handel oor
eksterne verkryging se plek in die algemene ondernemingstrategie, maar binne die
konteks van die huidige praktyk by Sasol Mynbou en die teoretiese raamwerk wat as
deel van hierdie navorsingsverslag ontwikkel is. Daar is ook goeie bewyse dat die
teoretiese raamwerk (voorheen nie aangebied op so 'n ge"lntegreerde, omvattende vlak
nie) aan die vereistes van 'n "goeie" teorie voldoen. 'n Aantal interessante temas en
herhalende patrone het oak na vore gekom gedurende data analise. Swart Ekonomiese
Bemagtiging en eksterne verkryging is 'n voorbeeld van so 'n herhalende patroon en dit
is tot 'n sekere mate verder ondersoek. Daar is ook ander voorbeelde van soortgelyke
patrone. Die gevallestudie as 'n navorsingstrategie was suksesvol tot so 'n mate dat die
navorsingsvraag beantwoord kon word, en boonop was dit ook moontlik om afieidings
te maak rakende die teorie van eksterne verkrygingspraktyk. Hoewel data vaslegging
en -analise soms oarweldigend was, het die navorsingstrategie tog gelei tot 'n diepe
insig van Sasol Mynbou as 'n besigheid. Dit is die krag van die gevallestudie benadering
tot navorsing. Dit is ook wat die navorsingsverslag die moeite werd gemaak het.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/21187
Date03 1900
CreatorsVan der Walt, Christo
ContributorsGevers, Wim, Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
RightsStellenbosch University

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