A study of the use of value based management (VBM) by multinational entities in the Eastern Cape motor industry cluster (ECMIC)
- Authors: Blouw, Mbuyiselo Edwin
- Date: 2005
- Subjects: Corporations -- Valuation , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8550 , http://hdl.handle.net/10948/421 , Corporations -- Valuation , Automobile industry and trade -- South Africa
- Description: Management’s response to shareholders’ return on investment as a priority occurs in an increasingly dynamic environment. Accompanying these activities is the need to realign responsibilities and to allocate scarce resources effectively. This is done in order to ensure that companies achieve global competitiveness and increase shareholders’ return on investment. Against this backdrop, local industry needs to find new methods or strategies in order to achieve world-class competitiveness, and to be able to access foreign investment. One way to achieve these goals is through Value Based Management (VBM). The objective of this study is to evaluate the strategic intent of Multinational Entities in applying VBM to increase shareholders’ return on investment. Based on the study, certain factors are critical to ensure the success of VBM. A postal survey to managers in the motor manufacturing and component manufacturing companies was conducted to check the managers’ familiarity with VBM, and their scope, and usage of VBM; and, based on the finding, to evaluate the impact of VBM on companies’ results. The empirical finding was compared with a literature review, and the following findings were made: There is a strong understanding and application of the VBM principle on the part of local entities with Foreign Direct Investment (FDI); Departmental performance is critical to an entity’s overall performance; Based on the study, 23 per cent of the respondents use Economic Value Added (EVA) as an internal reporting measure, and an average of 19 per cent use other metrics; A total of 89 per cent of respondents indicated that they strongly agree with the use of incentives for motivation. The above-mentioned points were covered by means of 4-M framework ― that is: Measurement, Management, Motivation, and Mindset.
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- Date Issued: 2005
Increasing competitiveness through the enhancement of logistics processes in the South African automotive industry
- Authors: Njokweni, Thobela
- Date: 2005
- Subjects: Business logistics , Automobile industry and trade -- South Africa , Competition, International
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10939 , http://hdl.handle.net/10948/418 , Business logistics , Automobile industry and trade -- South Africa , Competition, International
- Description: Logistics has become one of the automotive industry's most crucial sub-sectors. Previously, logistics had to step aside to make way for production considerations. Today it is regarded as being every bit as crucial as production in the global village. Advancement of logistics in South Africa is crucial because original equipment manufacturers are producing to developed world standards but are having to cope with low developing world logistics standards. The logistics processes that need to be enhanced in order for the South African automotive industry to be more competitive were investigated. To examine the main problem, three sub-problems were identified. The first sub-problem that has been identified dealt with logistics processes that will enhance the competitive advantage of the South African automotive industry. The second sub-problems looked at key logistics opportunities and threats to the environment in which South African motor manufactures trade. They were investigated by assessing the nature of the South African motor manufacturing industry. Finally, the third sub-problem investigated conclusions that can be arrived at concerning the appropriateness and strategic value of the analysis.
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- Date Issued: 2005
The identification of a model to promote intrapreneurship in an automotive component company
- Authors: Du Preez, Catherine Amanda
- Date: 2005
- Subjects: Entrepreneurship , Automobile industry and trade -- South Africa , Organizational change
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8549 , http://hdl.handle.net/10948/423 , Entrepreneurship , Automobile industry and trade -- South Africa , Organizational change
- Description: South African organisations are facing a new era of intense global competition. The modern business world is characterised by change and this change presents both challenges and opportunities. As a result, organisations have to become more responsive to change by continuous, rapid and cost-effective innovation through integrating the strengths of the entrepreneurial small firm, such as creativity, flexibility and innovativeness, with the market power and resources of the large firm. Due to the dynamic nature of the automotive industry, it is vital that South African organisations and management identify creativity and innovation as the main sources of sustainable competitive advantage. Sustained competitive advantage is derived from consistently satisfying customers’ wants and needs through innovation. An intrapreneurial philosophy is of key importance to an organisation’s corporate strategy, ensuring that entrepreneurial values are incorporated into the culture of the organisation. This study took place within an automotive component company operating in the Eastern Cape. Based on the theoretical findings of the literature study a questionnaire was developed and distributed to all employees of the company. The objective of the questionnaire was to measure the prevalence of intrapreneurship within the company and based on the findings of the literature study, recommendations on the structure, systems, culture and management styles of the organisation were made. Finally, a model was developed that identifies the importance of innovation, customer-solution centeredness and being market driven as core strategic values.
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- Date Issued: 2005