scholarly journals Beyond survival: Challenges facing South African automotive component exporters

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
M. J. Naude ◽  
C. O'Neill

Purpose and Objective: The South African automotive component industry faces huge challenges in a very competitive global market. The primary focus of this research article is to determine the challenges facing exporters within this industry with special reference to selected sub-sectors. The challenges are approached from a supply chain perspective only. Problem Investigated: The research problem of this study was to identify these unique challenges and ascertain whether the implementation of a 'philosophy of continuous improvement' could be used as a strategic tool to address the challenges they face in the market. Methodology: This study included a combination of literature review, interviews with managers in the selected sub-groups and questionnaires sent out to determine the challenges facing automotive component exporters. In order to test the content validity and the reliability of the questionnaire, a pilot study was conducted at two organisations that are the main suppliers of automotive filters for passenger vehicles. The non-probability convenience sample technique was used to select the sample and consisted of selected sub-sectors that contribute 64,1% of the total value of automotive component exports in South Africa. Out of twenty-seven questionnaires sent out, twenty (74% response rate) were duly completed by the respondents and returned to the researcher. Findings: South Africa faces unique challenges and these are listed and ranked according to priority from most to least important as follows: 1. The reduction of production costs; 2. R/US$ exchange rate effect on the respondent's export sales and profit margin; 3. Exchange rate fluctuations; 4. Threats to the local automotive component market; and 5. Increased competition by way of manufactured imports being sold in the South African market. Value of Research: The study provides recommendations that can be used within the automotive component industry.

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
R. C. O’Neill ◽  
M. J. Naude

Purpose: The point of departure in this article is that the principles that underpin entrepreneurial networking also apply to the establishment of supply chain relationships. The theoretical base for the need for entrepreneurial networking can be found in Kirzner's theory of entrepreneurship that argued that entrepreneurs identify and act upon profit opportunities that exist in disequilibrium in order to equilibrate the economy. Problem investigated: This article explores the possibility of implementing entrepreneurial networking in supply chain relationships in the automotive component industry. Methodology: Kirzner's theory is used as a theoretical base to support the case for the development of supply chain relationships. The literature with regard to supply chain management and its relevance to entrepreneurial networking is first dealt with. The case for implementing entrepreneurial networking to strengthen supply chain relationships in the automotive component industry in South Africa is then presented.Findings: The findings of this article indicate that the principles underlying entrepreneurial networking could be applied to supply chain relationships in the automotive component industry in South Africa. The argument is mainly based on the sustainability and profitability potential of entrepreneurial networking and the similarities that exist between entrepreneurial networking and supply chain management relationships. Originality: This research is original as it explores the possibility that the principles that underpin entrepreneurial networking also apply to the establishment of supply chain relationships in the automotive component industry. Furthermore, there is a need for published research in South Africa on supply chain management, particularly relationships within the supply chain.Conclusion: Based on the sustainability and profitability potential of entrepreneurial networking and the similarities that exist between entrepreneurial networking and supply chain relationships, the principles underlying entrepreneurial networking can be applied to supply chain relationships in the automotive component industry in South Africa. The unique challenges facing this industry in the current global market further strengthen the case for the implementation of entrepreneurial networking.


Author(s):  
Marius Schneider ◽  
Vanessa Ferguson

Eswatini, formally known as the Kingdom of Eswatini, is a landlocked country in Southern Africa and one of the smallest countries in Africa with a total area of 17,364 square kilometres (km) and a population of 1,367 (2017). It is bordered by Mozambique and South Africa. The capital and main business centre of Eswatini is Mbabane. The working week is from Monday to Friday from 0800 to 1300 and 1400 to 1700. The Swaziland Lilangeni (SZL/ E) is the official currency of Eswatini. The Lilangeni was introduced in 1974 to compete with the South African rand through the Common Monetary Area, to which it remains tied at a one-to-one exchange rate.


2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Micheline J. Naude

Purpose: This article explores the possibility of developing a distribution model, similar to the model developed and implemented by the South African pharmaceutical industry, which could be implemented by automotive component manufacturers for supply to independent retailers. Problem Investigated: The South African automotive components distribution chain is extensive with a number of players of varying sizes, from the larger spares distribution groups to a number of independent retailers. Distributing to the smaller independent retailers is costly for the automotive component manufacturers. Methodology: This study is based on a preliminary study of an explorative nature. Interviews were conducted with a senior staff member from a leading automotive component manufacturer in KwaZulu Natal and nine participants at a senior management level at five of their main customers (aftermarket retailers). Findings: The findings from the empirical study suggest that the aftermarket component industry is mature with the role players well established. The distribution chain to the independent retailer is expensive in terms of transaction and distribution costs for the automotive component manufacturer. A proposed centralised distribution model for supply to independent retailers has been developed which should reduce distribution costs for the automotive component manufacturer in terms of (1) the lowest possible freight rate; (2) timely and controlled delivery; and (3) reduced congestion at the customer's receiving dock. Originality: This research is original in that it explores the possibility of implementing a centralised distribution model for independent retailers in the automotive component industry. Furthermore, there is a dearth of published research on the South African automotive component industry particularly addressing distribution issues. Conclusion: The distribution model as suggested is a practical one and should deliver added value to automotive component manufacturers in that it could reduce distribution costs and also may improve customer service.


Author(s):  
Anthea P. Amadi-Echendu ◽  
Louis P. Krüger

Background: Although conveyancing is a legal term, business management and specifically operations management principles also apply to the processes involved in conveyancing. From a business perspective, each organisation is usually concerned with its own profit margins and processes. In our global market, however, organisations now realise that they can no longer compete successfully on the basis of their internal operational efficiencies alone. They are therefore constantly aware of the need to improve not only their internal processes but also their alignment with other supply chain linkages in an effort to optimise the performance of the whole supply chain. Such alignment, in the conveyancing environment, includes government departments that are generally less willing to adopt business principles, which in turn makes optimisation of the whole supply chain more difficult.Objectives: The article describes a supply chain perspective of the conveyancing processes in South Africa and reports some of the factors that influence and delay conveyancing transactions. It explores possibilities of collaborative relationships between different role players in the conveyancing supply chain. It aims to show that a supply chain approach, as opposed to a singular organisational approach, can help to reduce process bottlenecks and delays in order to improve overall process efficiency.Method: The research, on which the findings are based, was exploratory in nature and followed a mixed-methods (quantitative or qualitative) approach and included both structured questionnaires and personal interviews.Results: The results of the study revealed that many different types of delays occur at various entities across the whole supply chain involved in property transfers. These delays are presented in a table and diagram.Conclusion: It is recommended that greater adoption of electronic technology across the whole supply chain would improve overall efficiency, eliminate bottlenecks and contribute towards efforts to optimise the conveyancing supply chain in South Africa. In addition, it is also recommended that the South African deeds registry implement an electronic system which would allow for the electronic lodging of property transfers.Keywords: e-conveyancing; electronic processes; digitisation of data; supply chain management; integration


2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Melville Saayman ◽  
Peet Van der Merwe ◽  
Riaan Rossouw

Purpose: The purpose of this article is to estimate the economic impact of biltong hunting in South Africa. Problem investigated: Higginbottom (2004), indicate there are no reliable global estimates of the economic impact of wildlife tourism, but one thing is certain, it generates considerable sums of money. This same accounts for South Africa's game industry, especially biltong hunting, where there is little to no information regarding the economic impact. Therefore the question to be investigated was what is the economic impact of biltong hunting in the South African economy. Research methodology: A non-probability method was used and a convenience sample was drawn from all the members (N = 17066) of the South African Hunters and Game Conservation Association (SAHGCA). A pilot study of 87 questionnaires was conducted in August and September 2004 in the North West Province at the Hartbees branch of SAHGCA. For the national survey, the questionnaires were mailed together with the members' monthly magazine (named SA Hunters/Jagters) during July 2005. A total of 1 024 (n) questionnaires were received back. Data was captured in Microsoft™ Excel™ and a Computable General Equilibrium (CGE) modelling approach was thereafter used to determine the economic impact of biltong hunting in the South African economy. Findings/implications: The contribution to real GDP is estimated to be in excess of R6 billion, with thousands of jobs being created by the increase in activities/services. In addition, the related improvements to the infrastructure of the country, especially the transport sector, will benefit productivity in the longer term and so lead to further increases in GDP. Originality: A significant contribution that this article has made is that this is the first time that the economic impact of biltong hunting in South Africa has been determined. It is also the first time that CGE modelling has been completed with regard to research in this sector in South Africa.Conclusion: This supports the opinion that biltong hunting is a viable and important sector of the tourism industry. The results clearly show that more should be done to expand hunting in South Africa as hunting affects, not only the economy, but also the price (and therefore the value) of game.


2010 ◽  
Vol 36 (1) ◽  
Author(s):  
Chantal Olckers ◽  
Michiel A. Buys ◽  
Stephanie Grobler

Orientation: Empathy is a core competency in aiding individuals to address the challenges of social living. An indicator of emotional intelligence, it is useful in a globalising and cosmopolitan world. Moreover, managing staff, stakeholders and conflict in many social settings relies on communicative skills, of which empathy forms a large part. Empathy plays a pivotal role in negotiating, persuading and influencing behaviour. The skill of being able to empathise thus enables the possessor to attune to the needs of clients and employees and provides opportunities to become responsive to these needs.Research purpose: This study attempted to determine the construct validity of the Multi-dimensional Emotional Empathy Scale within the South African context.Motivation for the study: In South Africa, a large number of psychometrical instruments have been adopted directly from abroad. Studies determining the construct validity of several of these imported instruments, however, have shown that these instruments are not suited for use in the South African context.Research design, approach and method: The study was based on a quantitative research method with a survey design. A convenience sample of 212 respondents completed the Multi-dimensional Emotional Empathy Scale. The constructs explored were Suffering, Positive Sharing, Responsive Crying, Emotional Attention, a Feel for Others and Emotional Contagion. The statistical procedure used was a confirmatory factor analysis.Main findings: The study showed that, from a South African perspective, the Multi-dimensional Emotional Empathy Scale lacks sufficient construct validity.Practical/managerial implications: Further refinement of the model would provide valuable information that would aid people to be more appreciative of individual contributions, to meet client needs and to understand the motivations of others.Contribution/value-add: From a South African perspective, the findings of this study are significant in that the data indicate potential for measuring emotional empathy in the workplace. Research into emotional empathy in South Africa, however, is limited and additional studies could deepen the case for the Scale’s applicability and validity.


2013 ◽  
Vol 6 (3) ◽  
Author(s):  
Willie Nakunyada ◽  
Laurine Chikoko

This article analyses the competitiveness of Zimbabwe’s exports in the South African market under the multiple currency system from 2009 to 2011. Using real exchange rate analysis and the Revealed Symmetric Comparative Advantage index (RSCA), the article confirms that Zimbabwean products have lost competitiveness in South Africa, with comparative advantage only remaining in a narrow range of primary products. Based on the results, we recommend that deliberate policies be instituted to diversify and enhance the competitiveness of Zimbabwe’s exports.


2021 ◽  
Vol 47 ◽  
Author(s):  
Sean McCallaghan ◽  
Marita Heyns

Orientation: South Africa had a distinctive diversity environment with unique diversity-related challenges. Researchers and practitioners required a validated diversity climate instrument that can be used to examine diversity management observations in a South African setting.Research purpose: The objective of this study was to address a research opportunity to source, test and validate a diversity climate instrument for the South African environment.Motivation for the study: Studies examining the conceptualisation, validation and measurement invariance of a diversity climate instrument for the South African environment do not yet exist.Research approach/design and method: A quantitative approach with cross-sectional design was utilised. A total of 323 respondents from a convenience sample formed part of this study. Statistical analysis included reliability, validity and measurement invariance computations.Main findings: An applicable one-dimensional diversity climate assessment instrument was identified from literature. This study found evidence indicating that the instrument was reliable and valid across white and African population groups.Practical/managerial implications: The assessment of diversity climate will be an accurate indication on how well an organisation is managing diversity. A validated measuring instrument will be a valuable managerial tool for any South African organisation, which can assist with future decision making.Contribution/value-add: This study was able to source and validate a diversity climate measuring instrument for a unique diversity setting, such as South Africa.


Author(s):  
Marius Schneider ◽  
Vanessa Ferguson

The Kingdom of Lesotho is a landlocked country within the borders of South Africa. Lesotho, previously known as Basutoland, was a British colony from 1959 until it gained its independence from Britain on 4 October 1966, after which it became formally known as The Kingdom of Lesotho. Lesotho covers an area of 30,355 square kilometres (km), with a total population of 2,285,604. The capital city is Maseru, which lies directly on the border with South Africa, with a population of 330,760. Maseru has a rapidly growing economy as a result of industrial trade, foreign and local investment in the city. Other main cities, although substantially smaller than Maseru include Teyateyaneng, Mafetang, and Hlotse. The working week is from Monday to Friday from 0900 to 1245 and from 1400 until 1630. The currency in Lesotho is the Maloti (M), which is used alongside the South African rand (ZAR), with the Maloti currently being at the same exchange rate to the South African rand.


2003 ◽  
Vol 6 (4) ◽  
pp. 643-665
Author(s):  
L Rangasamy ◽  
C Harmse

This paper tests whether tariff liberalisation has lead to increased competitiveness in the South African economy. The 46 sectors of the South African economy are classified as exportable, importable, importable and exportable and non-tradable. The impact of trade liberalisation on domestic prices for importables and exportables is then assessed by making use of real exchange rate calculations. It is concluded that while increased globalisation of production processes in South Africa may have improved the competitiveness of the tradable sector, tariff liberalisation played a minimal role in improving competitiveness in the manufacturing sector.


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