- Title
- Analysing the role of enterprise and supplier development within Mercedes Benz South Africa in improving their B-BBEE scorecard
- Creator
- Silinga, Zukiswa
- Subject
- Affirmative action programs -- South Africa
- Subject
- Business enterprises, Black -- South Africa
- Subject
- Blacks -- South Africa -- Economic conditions
- Subject
- Employee empowerment -- South Africa
- Subject
- South Africa -- Economic policy
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MBA
- Identifier
- http://hdl.handle.net/10948/23208
- Identifier
- vital:30455
- Description
- This research is born out of the realisation of the unique challenges that the Broad-Based Black Economic Empowerment (B-BBEE) policy required from the private sector in South Africa, with Enterprise and Supplier Development (ESD) being one of the components of the B-BBEE’s economic empowerment strategy. Over the years, the B-BBEE’s role has been one of ensuring that economic empowerment of historically disadvantaged individuals was addressed. The role of the B-BBEE policy is described as the framework that targets the reform of the economy, reduction of poverty and inequality and empowerment of those individuals that were historically disadvantaged (Patel & Graham, 2012, p. 194). The automotive industry is South Africa’s most important and largest sector, making a great contribution to the country’s GDP. It is responsible for the employment of many people in the country, including employment in the component manufacturers and tyre industry. With these linkages throughout the economy, the government has identified the automotive industry as a vital growth sector. Government is certain that this sector will address one of the major challenges for economic growth in South Africa, which is unemployment. In the year 2015, the B-BBEE Act was amended with new compliance requirements and this changed the B-BBEE rating of Mercedes Benz South Africa (MBSA), resulting in a reduction of the company’s rating. The changes to the standard, particularly the ownership component, resulted in challenges for multinational companies such as MBSA, and an opportunity to improve the rating was identified in the ESD component sector. If these new compliance requirements were not addressed by MBSA, a predictable reduction in B-BBEE status would occur, resulting in a loss of business with government and provision of government incentives. The objective of this research study was to analyse the role that ESD plays within MBSA in improving their B-BBEE scorecard, as part of its overall B-BBEE strategy. This study was sculpted on the concept that the role of ESD at MBSA is related to (a) preferential procurement, (b) skills transfer, and (c) mentoring and a detailed literature review was conducted for these variables as well as for ESD. In testing the above research objective, the researcher utilised statistical analysis methods to reach a conclusion with regard to the relationship of ESD to these variables. A positivistic research paradigm (quantitative) was selected in order to test the objective by using hypothesis testing. An empirical study was undertaken by means of a survey with a questionnaire utilised as a data collecting tool and distributed using the supplier database of MBSA. The aim of the questionnaire was to validate the outcomes obtained from the theoretical overview. Out of a sample of 116 respondents employed at the suppliers, only 92 responses were received, thus representing a 79% response rate, which is considered acceptable. The key findings of the study indicated that preferential procurement, skills development and mentoring play a significant role in the promotion of ESD. Preferential procurement indicated a stronger association than the other variables, and thus it was recommended that MBSA place importance on this variable. Based on these findings, recommendations were made to the management of MBSA in an effort to improve the ESD component of the B-BBEE score of the company. As a way of addressing some of the challenges automotive manufacturers face, suggestions for future research were made.
- Format
- xiii, 138 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economics Sciences
- Language
- English
- Rights
- Nelson Mandela University
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