WELCOME TO RICHFIELD

ACADEMIC YEAR: 2024

HIGHER CERTIFICATE IN BUSINESS

ADMINISTRATION

MODULE NAME: ECONOMIC ENVIRONMENT 500

 TOPIC 5: Strategy implementation

Learning outcome

▪ Define nature of strategy implementation.

▪ Discuss the concepts of strategy implementation.
▪ What is the importance of strategic implementation?
▪ What causes the implementation of strategy to fail?
5.1 INTRODUCTION Concepts to be covered:
An organisation’s direction
5.2 The nature of strategy implementation
and success is propelled
through its strategy. Top 5.3 The definition of the strategy
management is responsible implementation
for its conception. Lower 5.4 important factors in strategy
levels of management implementation
implement and provide
feedback. Resources and 5.5 Avoiding the Implementation pitfalls
support throughout the ▪ Prepare for strategy implementation
entire process are critical. 5.6 Strategic planning process
5.2 The nature of strategy implementation

Strategic implementation is the application of the management

process to obtain the desired results.

It includes:

▪ designing the organization's structure,

▪ allocating resources,
▪ developing information and decision process,
▪ Staffing and managing human resources:
oreward system,
oapproaches to leadership (corporate culture).
5.3 The definition of the strategy implementation

Strategic implementation is the process that turns strategies and

plans into actions in order to accomplish strategic objectives and
goals.

▪ provides a business with the roadmap it needs to pursue:

oa specific strategic direction,
oset of performance goals,
odeliver customer value, and
obe successful
Journal of Management Research: Hourano Maher. (2017).
Conceptual Frameworks for Strategic Implementation.
Macrothink Istitute. Available online at:
https://doi.org/10.5296/jmr.v.9i3.11222 (Accessed 16 April
2023).
5.4 Important factors in strategy implementation:

a.Institutionalization of strategy - managers must lead by example

b.Setting proper organizational climate (refer to next slide)
c.Developing appropriate operating plans
d.Developing appropriate organization structure – departments, job division and
network of relations.
e.Periodic review of strategy – monitoring progress
f. Getting your strategy ready for implementation
Setting proper organizational climate

▪ makes strategy to work.

▪ develop individuals capacity,
▪ Provide enough resources
▪ ensure commitment and motivate of people in the organization,
▪ Set and measure targets, and
▪ improve continual based on facts.
5.5 Avoiding the Implementation pitfalls (Olsen, n.d.)

Pitfalls of implementing your strategic plan. Here are the most common reasons strategic plans fail:
▪ Lack of ownership
▪ Lack of communication
▪ Getting mired in the day-to-day
▪ An overwhelming or detailed plan
▪ A meaningless plan
▪ Poor oversight of the annual strategy during implementation
▪ No progress report
▪ No accountability
▪ Lack of empowerment
Sources:
1. Olsen Erica. On Strategy. Available (online): https://onstrategyhq.com/
2. Business 2 Community. 2012. Business strategies Fail Due to Poor Execution.
 Prepare for strategy implementation

a. Cover your bases

b. Making sure you have the support
Often overlooked are the five key components
necessary to support implementation:
▪ People
▪ Resources
▪ Structure
▪ Systems
▪ Culture
A simplified illustration of strategic planning process
Student task: Read the article on the link below!
THE SHOPRITE GROUP OPENS FIRST CLOTHING STORE
The Shoprite Group has launched UNIQ, its new clothing brand fashioned on
simplicity, comfort, superior fabrics and value.

The first standalone UNIQ store opened in Cape Town’s Canal Walk shopping centre
with another eight stores scheduled to open in the next month.

Catering for the entire family, the UNIQ range consists of premium basics in a variety
of colours and fabrics that are easy to mix and match. Every item of clothing is
thoughtfully designed and made to last, pairing durable fabrics with stylish and
versatile designs.

UNIQ has sourced materials specifically engineered for comfort and convenience,
and it is the first local clothing retailer to introduce Supima cotton to the mass
market. With longer fibres than regular cotton, this superior quality cotton is
stronger, softer, and absorbs colour better, keeping clothing lustrous even after many
washes.
a. Formulation of Strategy
Formulation of strategies determine the overall strategy of the
organisation and position in the market
Phase 1: Vision – determine the future of an organisation
Phase 2: Mission statement
Phase 3: Environmental or S.W.O.T. Analysis
Phase 4: Determine organisational objectives
Phase 5: Choose strategies

b. Strategy implementation
c. Strategy control
Formulation of Strategy
Phase 1: Vision
▪ determine the future of an organisation
▪ Bases for decisions
▪ Provides framework

Phase 2: Mission statement

- Indicate the intention of the business in terms of:

▪ Industries and/or Products

▪ Markets – locations and customer profile
▪ Technology – methods of delivering value
Formulation of Strategy
Phase 3: Environmental or S.W.O.T. Analysis
Internal analysis
- Assess organisational strengths and weaknesses
- Identify key factors inside the organisation
- Analysis the nature and characteristics of the organisation

External analysis
Formulation of Strategy
External analysis
 Role of Strategy
▪ Framework for Operational Planning
▪ Clarity in Direction of Activities
▪ Increase Organizational Effectiveness
▪ Personnel Satisfaction
Student task: Read the article on the link below!

Dludla Q. 2016/02/28. Massmart to focus Africa expansion plans on Kenya , Zambia:

https://wwww.reuters.co/article/amp/idUSL5N20N0QJ
What do you think Massmart needs to consider when implementing the African
expansions to ensure success?

……………………………………..The ends…………………………………………..
 TOPIC 6: TIME MANAGEMENT & DELEGATION

Learning outcomes:

• Understand time management from different perspectives.

• Gain knowledge on the purpose and usefulness of delegation an organisational principle.
• Outline the advantages and disadvantages of delegation.
 Introduction
Management spend more than 80% of the time communication. This takes a lot of their
time. When running an organisational operation with highly prized resources, time is of
essence. Therefore, better organisation of work and allocation of time requires
scientific management style. Chasing deadlines for business proposals or securing a
prime stock can be overwhelming at times. It is necessary for managers to know how to
share responsibilities with experienced subordinates. This is called delegation. For
theses reasons and more, topic 6 focuses on issues of time management and
delegation.
 What is time management?
In reference to time management, Alyami (2021) sees it “as a form of self-management
with a clear emphasis on time in understanding what activities to do; how to…”.

“The time management behavior has three basic surfaces that are: time attitudes, long-
range planning and short-range planning” (Aeon & Aguinis, 2017 in Alyami, 2021).
Time management is the act or process of exercising conscious control over the amount of time spent
on specific activities, especially to increase efficiency or productivity.

Some requirements for managing time Managers spend and allocate time for:
•better:
Decisive leadership • Planning and setting goals
• Depth of managerial experience • Organising organisational structure
• Diversity of skills • Job design and allocating
• Quality and availability of resources responsibilities
• A range of advanced techniques used • Leading and motivation
for productivity • Coordination and communication
• Unity of purpose and collaboration • Delegation and training (or abuilding)
• Research and reporting
• analysis ,monitoring, and evaluation
• Problem solving and decision making
 Time management and related concepts
a. Project management.
A project is a task of building, e.g. a facility (a Shopping Complex)

i. The “Ghantt Chart”:

• Breaks down the projects into parts
• Starting time and ending time is set
• Determines how long a project should last – duration

i. Programme Evaluation and Review Technique” (PERT:

▪ Time of starting the project and a flow and network related activity must be determined.
▪ Time the project will end also must be known in advance.
▪ Time lags or delays may result in increasing costs.

b. Attention management
▪ Relates to time that employees allocate their mind to conduct some activities.
▪ Priorities, discipline and punctuality are crucial
 An illustration of the Gantt Chart

Source: ProProfs
 An illustration of the Gantt Chart

Source: ProProfs
 STUDENT TASK
Use the Gantt Chart to:

Plan a project or event

Starting and finishing date or time
Indicate the duration of the project
Costs
Risks
Contingency plans
 Time management in perspective
• Farrell (2017) argues that time management “is an essential component of leadership”.
• Time is a critical resource for organisations and the same applies in societies.
• Place the time it took different countries to deal with Covid-19, a disease caused by Corona
virus.

e.g. Hong Kong, Singapore, South Korea and Japan …. compared with
China, Italy, Spain, France, United Kingdom (UK), United States of America (USA).

▪ The slow rate of infections and deaths come down to time management. (refer to next slides 1
& 2)
• Therefore, in the cases of the coronavirus:
o the quicker the country’s response, the faster the disease was managed better without putting a
strain on resources.
o The slower the response, the higher the infections and thousands of deaths – outstripping
resources and increasing anxiety among the citizens. (slides 1 & 2)
 The definition of delegation
According to SHRM, (nd) delegation “is assigning responsibility for outcomes along
with the authority to do what is needed to produce the desired outcomes”.
▪ Managers get the job done through the efforts of others

When is delegation important?

• When managers have workload and need to focus on other issues
• To get more (managerial) work done
• Increase the meeting of deadlines
• Is useful for succession planning
• It is an empowerment tool for future managers
• To broadens and increase management depth
 6.3 Advantages of delegation
• It increases the level of motivation of employees.
• Allows for new and innovative ideas from the employees.
• Leads to development of employees' creative skills
• Quicker decision making
• Improved decision quality and problem solving
• Saves time
• Reduces workload
 Disadvantages of delegation
▪ Lack f trust and confidence in subordinates
▪ Doubting the subordinate’s potential to execute the job well
▪ A manager may fear that his or her own perform evaluation will suffer if
subordinates fail to do a job properly.
▪ It is time-consuming and requires high level of focus and professionalism
▪ Sheer reluctance to delegate
▪ Rigid organisational structure
▪ Ill-defined authority and responsibility
▪ Lack of accountability
▪ Poor task descriptions and goals
 8 steps to problem-free delegation
Step 1: Plan a task to delegate to subordinate/s
• unique combination of attributes, skills, abilities and experience matter
• The success of the of delegation depends on a competency level of a subordinate
and constant support.
Step 2: Clearly state your expectations
• Set and clarify targets to employee-delegate
Step 3: Explain the big picture behind the task
• Ensure the subordinate understands the importance of the task to organisation’s
ambitions
Step 4: Ask for your employee’s feedback on the best way to proceed
• Create a platform for two-way communicating to keep abreast of the progress or
problems
 8 steps to problem-free delegation
Step 5: Suggest helpful resources, being careful not to micromanage
• Supply adequate tools and manpower (delegate)
• Ensure all resources are in place and readily available (how to access them)
Step 6: Set follow-up dates and plan future actions
• Ensure the target dates are met and activate new ones
Step 7: Monitor progress, demonstrating confidence
• Keeping track of delegated workflow is important.
• It is done to intervene and provide more support in a positive way
Step 8: Evaluate success and constructive feedback
• Once the subordinate has completed the work, a report must be prepared
• The manager must also show strides the employee made.
 Six-step delegation process
Step 1: Decide on the task to be delegated
Step 2: Decide who should perform the task
Step 3: Provide resources
Step 4: Delegate
Step 5: Step in
Step 6: Feedback
 Principles of delegation
▪ Explain the reason(s) for delegation.
▪ Set standards and goals.
▪ Ensure clarity of authority and responsibility.
▪ Involve subordinates.
▪ Request the completion tasks.
▪ Provide performance training.
▪ Provide feedback to the subordinates.

………………………………………..The end of Topic 6…………………………………………

 TOPIC 7 HUMAN RESOURCE MANAGEMENT

Learning outcomes:
• Define human resource management (HRM)
• Explain the importance of HRM in the economy
• Describe the HRM process
• Explain the role of HRM in an organization
 Key concepts
• Human Resource Management (HRM)
• Human Resource Development (HRD)
• Staffing function
• Recruitment and downsizing (or natural attrition)
• Short-listing
• Selection
• Hiring
• Induction
• Training and development
• Retention
• Appraisal
• Disciplinary hearing
• CCMA
 Introduction
• HRM deals with employees in the organisation. The aim is to attract a
talent and/or skillful workforce. Additionally, retain it. As Aslam et al.
argue that “organisations compete globally for products, they have to
compete for HR (Human Resource) talent in the 21st century” (2013,
p. 90). Whereas the older staff tend to be more loyal and job-hop
less, “generation Y wants flexibility in their working hours for
spending time on other activities…” (Henson 2007 cited by Aslam et
al. 2013).

Topic 7 introduces basic concepts of managing workers with a

professional HRM framework.
The importance of human resource
management
➢For efficient recruitment and training
➢For performance appraisal
➢Retention of experienced and talented employees
➢Maintenance of vibrant workplace
➢Proper disputes resolution practices
➢“To stimulate a firm’s innovation performance” (Avanitis, Seliger &
Stucki 2016)
 Human Resource Management (HRM)
• Griffin (n.d.) defined HRM as “the of organisational activities directed at
attracting, developing and effective workforce”.
• Nadler cited by Hislinda (2009:181) suggested it “is a process of managing
human talents to achieve organisation’s objectives”.

Insert (right): (Hislinda, 2009)

 Roles of HRM
• Staffing
• Recruitment/downsizing
• Selection
• Hiring
• Contracts
• Induction
• Training and development
• Retention
• Appraisal
• Remuneration and/or compensation
• Labour relations
• Disciplinary hearing/dismissal
 THE STAFFING FUNCTION
Learning outcomes
• Expand on the concept of “The Staffing Function”.
• Elaborate why the staffing is a necessary activity within an
organisation/
• Give a summary of the HRM process recommended by
Erasmus, Strydom and Rundansky-Kloppers.
 Introduction

The staffing function is discussed in detail. It is followed by the

process of human resource planning.
 The Staffing or HR Function
It “is the management function devoted to acquiring, training, appraising,
and compensating employees”.
Staffing is necessary for but not limited to the following reasons:
• Ensure there is enough employees in the organisations
• Minimize staff shortages and/ absenteeism
• Reduce staff turnover
• Responsible for the HRM process
• Attract and develop talent
• Retain and reward the workforce
• Handle contracts and payroll
• Forecasting labour needs
• Fill up vacancies
• Lessen staff redundancy
• Deal with retrenchment sensibly
• Implement the policy of natural attrition
• Manage disciplinary issues professionally
• Adhere to the Labour Relations Act of Soouth Africa
Erasmus, Strydom and Rundansky-Kloppers
(2016;332-403) offered this HR model:
Stage 1: Identify the work being done

Stage 2: Human Resource Forecasting

Stage 3: The Humana resource plan

 Stage 1: Identify the work being done
a. Job analysis
▪ Ways of examining tasks, duties and responsibility to do a specific job.
▪ Collection of information to enable the worker to perform
▪ Working conditions

b. Job description
▪ By product of job analysis
▪ Compiles all the duties the employee will be responsible for
▪ List all activities and reporting

c. Job specification
▪ List of job requirements
▪ Abilities to do the job and personality type
▪ Qualifications, unique skills and experience (if necessary)
▪ Advertised or publicized
Ansary (2023) outlines job description and
specifications as follows:
 Stage 2: Human resource forecasting
• Investigate and project the quantity and quality of employees
needed in future
• To maintain equilibrium between labour supply and demand

Factors to be considered:

i. Economic growth
ii. New developments within the organisation - expansion
iii. The labour market
- Addresses shortage or availability of labour
 Stage 3: The human resource plan
▪ Provides the guidelines for staffing
▪ Deciding who to employ (HRM policy and rules))
▪ Caused by inter alia shortage or replacement of employee/s
▪ Number of workers needed
▪ Jobs specifications and
▪ Skills needed (simple or complex)
▪ Sources: internally or externally
▪ Department or position in the organisation
▪ Methods of recruitment (procedures)
▪ Time or season and period needed (contract)
▪ Employees responsibilities and
▪ Remuneration
▪ Training interventions to deal with (technological) changes
 The next logical action after stage 3 is:
Within the HR process, finding talent is key

Recruitment (Part III)

 Recruitment and Selection

Learning outcomes

• Discuss recruitment as a staffing function.

• Demonstrate when the internal and external sourcing of staff
are necessary.
• Explain the selection process.

Source: Erasmus, Strydom & Rudansky-Kloppers 2016:334-343

 Introduction

The focus is recruitment as a staff or HRM function. There

are different methods to fill up a vacancy ranging from
internal to external sources. Finally, the selection process is
discussed.
 Recruitment

• It is a process of filling up a job opening (vacancy) by

attracting a sufficient number of competent individuals.
• It ensures that the right candidate/s is are hired.

There are two basic sources of recruitment:

a.Internal/inside the organisation

b.External/outside the organisation
 Student activity
1. What is e-recruitment?

2. Find out what head-hunting is a recruitment context!

 a. Internal recruitment b. External recruitment
Suitable when a candidate can
▪ Fill vacancy with existing workers not be found internally
▪ Promotion for higher positions
▪ Not possible with entry level vacancies
• Getting candidates from
Considerations: outside the organisation
▪ Employment Equity Act (No. 55 of 1998)
• Risky and costly
▪ Labour Relation Act (No. 66 of 1995)
Methods:
• Morale of current staff can be
influenced negatively
▪ Talent inventories
▪ Career systems
Methods:
▪ Acting and secondment arrangements ▪ Employment agencies
▪ Job shadowing ▪ Referrals
▪ Supervisory recommendations ▪ Professional bodies
NB: Same culture persists, lack potential for management
jobs and bring competition. ▪ Educational institutions
▪ Internet and social media
 The recruitment
procedure
Internally,
Recruitment methods
Human Resource Information System (HRIS)
It [HRIS] must contain:
▪ Employment qualification
• Through advertisements or
▪ Training publication
▪ Experience • Private recruitment agencies
▪ Assessment of achievements
▪ And interests • Personal approach
Externally, • Through existing employees
Thorough analysis of the labour market
• Sundry recruiting strategies:
- College visits
▪ Labour market can be referred to as “the social or geographic
area from which a business draws its employees” (Erasmus,
Strydom & Rudansky-Kloppers 2016:337).
 Talent selection
• Erasmus, Strydom & Rudansky-Kloppers defined selection as “a process of
determining which individuals are best suited to fill positions in the
organisation, taking into account individual differences, the requirements of
the job, and the organisation’s internal and external environments (2016, p.
339).

Discussion on selection focuses on:

a.Application and shortlisting

b.Intensive assessment
c.Final selection
d.On-boarding
 a. Application and shortlisting
• Separating undesirable candidates
• Requests personal details
• Work history
• Resume provides most of this information
b. Intensive assessment includes:
• Psychological (psychometric) test
▪ Assesses personality
▪ Abilities
▪ Skills
• Diagnostic interviewing
▪ Acquires information not on resume or
▪ Not covered on psychometric test
 c. Final selection

• Sufficient information on candidate has been gathered

• Few candidates are compared
• Their references are consulted
• Comparison against potential candidates is carried out
• A further short interviews may be introduced
• Best candidate is selected or hired
• Job expectations explained
 d. on-boarding (or induction or orientation or socialization)
• Induction “is the process of introducing the employee to the organisation
and to make him or her familiar with the details and requirements of the
position” (Erasmus, Strydom & Rudansky-Kloppers 2016, p. 343).

Activities of orientation include:

• Introduction to colleagues and facilities

• Organisational policies, procedure and rules
• Organisation’s history, products and reputation
• Practical arrangements or systems
• Organisational structure
 Developing and retaining talent

Learning outcomes

• Discuss how organisations can develop talent.

• Explain various techniques of compensation.
• Why is rewarding outstanding employee-performance
important?

Source: Erasmus, Strydom & Rudansky-Kloppers 2016:343-

403
 Introduction

The focus is recruitment as a staff or HRM function. There

are different methods to fill up a vacancy ranging from
internal to external sources. Finally, the selection process is
discussed.
 Development of talent
• An organisation must improve the skills of its workforce
• It is an on-going exercise within the establishment
• It helps the organisation fill up post much quickly
• Because the staff are prepared in advance
• Employees also get an opportunity to advance into better positions
• Training and development are the keys to unlock potential

a.Training relates to proving employees with knowledge and basic

skills needed to perform a specific job.

b.Development is based on forecasting future needs and prepare

workers to perform those tasks while providing the necessary
knowledge for current job needs.
 Development methods
a. On-the-job training and development
i. Job rotation
ii. Job shadowing
iii. Enlarged and enriched job responsibility
iv. Job instructing training (JIT)
v. Coaching
vi. Mentoring
vii.Apprenticeships (learner ships) and internships
 b. Away-from-the-job training and development
i. Lectures
ii. Conferences
iii. Seminars or Webinars
iv. Vestibules or simulation
v. E-learning
vi. Case studies
vii.Role playing
viii.In-basket exercise and assessment center
 Performance appraisal
The purpose of appraisal is to determine whether employees have:
• carried own the job exceedingly well,
• met the set job standard as expected, or
• Underperformed on the job assigned.

Other terms associated with appraisal are:

▪ Employee evaluation or rating,
▪ Performance review or evaluation,
▪ Results appraisal
NB: After performance review, employees must receive feedback.
 Retaining talent
Compensation of staff
It includes extrinsic rewards such a:
▪ salary and
▪ benefits

and intrinsic rewards such as:

▪ achieving personal goals and
▪ more challenges job opportunities
 Types of rewards
a. Direct compensation
▪ Monthly salary, weekly or daily wages

b. Indirect compensation
Derived from being part of the organisation are generally called fringe
benefits such as:
▪ Leave benefits
▪ Insurance benefits
▪ House allowances
▪ Car allowances

These types of compensation are linked to the employment

performance of employees.
 c. Rewards
• Organisations must have ways of recognising employees far beyond direct
and indirect compensation.

i. Salary increase
▪ based on employee performance – merit award
▪ Inflation-adjusted increase or cost-of-living adjustment
ii. Financial bonus
iii. Paid holiday or a trip abroad

NB: Theories of motivation emphasize the need for rewarding excellent

performances.
Compensation is fundamental to workers. Its absence can lead to
undesirable results within an organisation.
……………………………………Topic 7 ends………………………………………………
Established in1998 by Sergey Brin and Larry Page.
 Case study: Google Benefits or Google's
▪
▪ Benefit? Bycontribution
and makes a matching Susanof upJ.to Stabile,
$2,200 per year.’ 2008
Google allows employees to contribute up to 60 percent of their eligible compensation to the plan

▪ It also maintains stock-based compensation plans, under which all employees receive stock or stock options.'
▪ pays virtually all of the costs of medical care coverage for its employees, offering employees several plans
from which to choose.9
▪ It also provides standard life and disability insurance,
▪ as well as dental and vision care benefits,
▪ and generous maternity and paternity leave benefits."
"Beyond the Basics" and "Way Beyond the Basics:
▪ include family friendly options such as on-site childcare, back-up childcare when regularly scheduled care falls
through, and up to $5,000 in adoption assistance.
▪ "In addition, parents can expense up to $500 in take-out meals for the first month home with a new
▪ baby.
▪ Finally, Google encourages education through $8,000 in tuition reimbursement,
▪ promotes employee referrals with a $2,000 bonus for successful recruitment,
▪ and matches employee gifts to non-profit organizations at up to $3,000 per year."
▪ a choice of eleven themed on-site restaurants from which to receive free gourmet breakfasts, lunches, and
dinners, serving dishes such as fois gras egg rolls, Beijingstyle braised ribs, and bay scallop ceviche.
▪ All Google restaurants support local farming and organic produce, follow seafood guidelines to prevent over
fishing,
and even recycle cooking grease into biofuel.
▪ Between meals, forty-four snack stations serve a wide variety of bottled beverages, espresso machines, and
other
▪ Case study: Google Benefits or Google's
on-site gyms, swimming pools, spas, and volleyball and basketball courts.
▪ Employees even receive free pedometers2 °
▪
▪
Benefit? By Susan J. Stabile, 2008
laundry list of benefits: offers employees dry cleaning and a coin-free laundromat.2
car wash and oil changed while they work.
▪ on-site hair salons, massages,
▪ language classes, financial planning seminars, and even a concierge to book dinner reservations.
▪ Organizes parties that boast live bands and social opportunities.
▪ free checkups from one of the five on-site doctors.
▪ Twice-weekly open
▪ meditation hours host Tibetan monks
▪ and a team of mind-science researchers to help Googlers unwind.26 Employees' dogs are welcome at the office 7
and the
▪ free commuter shuttles that take employees to and from local train stations are Wi-Fi enabled.
▪ Green perks: Employees who buy hybrid cars receive $5,000 towards the purchase.
▪ Google Garden introduces employees to fresh home-grown produce from EarthBoxes that use only 20 percent of
the water necessary for open air gardens.

▪ Finally, Google offers its employees time: Employees are given 20 percent of their time at the office to pursue
their own ideas instead of company projects,' although it is not clear how many employees take advantage of this
opportunity.
Video 1: https://youtu.be/Z-pT0XDYvDM
The dimensions that make up QWL can be categorised into a number of clusters of variables.

A QWL consist of a list of qualities that describes QWL for two samples of employees in a cross-
cultural study. The steps in the process were as follows:

▪ Individuals were asked to think and reflect on a specific job and to describe the different elements
that
made up the job.

▪ While bearing in mind the job they had described, the respondents had to consider how they felt
about themselves in the work situation and how others see them in the job.

▪ Reflecting on the total work experience as described above, the respondents had to list adjectives,
phrases and words that would describe their workplace experiences.

▪ In small groups the respondents had to share their constructs or work elements, and in this way,
they were informed of others‟ opinions.

▪ Finally, the respondents had to reconsider their lists of constructs with a view to adding or
subtracting from them.
 Topic 8: Business Plan
Learning outcomes:
▪ Discuss the importance of a business plan.
▪ Outline and discuss the components of a business plan.
▪ Examine challenges faced by and risks associated with new businesses
in South Africa.
What is a business plan?
Masciocchi (2020) defines a business plan as “a written strategic
document that describes how a business is going to achieve its goals”.
A business plan can be viewed written guide about how an entrepreneur
will establish or improve and run an enterprise (Nunn & McGuire, 2010).
The importance of a business plan
• It serves as a blue-print of the entire business (direction)
• Assist in sourcing funds (for starting and expansion)
• To determine the feasibility of the business
• Use for attracting and convincing investors
• Determine its profit potential
• Identifies problems and minimize failure
• Helps with identifying critical areas and limitations
• Its formal nature helps with ensuring success
• It is an essential tool for forecasting and resource determination
Components of a business plan
8.1 Cover page and table of contents
8.2 Executive summary
8.3 Business description
8.4 Business environment analysis
8.4.1 Industry background
8.4.2 Competitor analysis
8.4.3 Market analysis
8.5. Marketing plan
8.6 Operations plan
8.7 Management summary
8.8. Financial plan
8.9 Attachments and milestones
8.1 Cover Page
• Company name and logo
• Punchline
• Theme: Business Plan
• Date prepared
• Contact details: name, (address), email, tel./mobile, website,
Table of contents
Page
8.2 Executive summary…………………………………………………..
8.3 Business description…………………………………………………
8.4 Business environment analysis……………………………………..
8.4.1 Industry background………………………………………………
8.4.2 Competitor analysis……………………………………………….
8.4.3 Market analysis…………………………………………………….
8.5 Marketing plan……………………………………………………..
8.6 Operations plan………………………………………………………
8.7 Management summary……………………………………………..
8.8 Financial plan……………………………………………………….
8.9 Attachments and milestones……………………………………....
8.2 Executive summary
• Brief overview of the company:
• Name of the company and product/s and industry or sector,
• Problem or opportunity, solution and its uniqueness, and expectations
• legal status: Sole proprietorship, Partnership, Close Corporation or Private
or Public Company

optional
• target market,
• selling prices and locations,
• Forecasting trends
NB: Comes after completion
8.3 Business description
• Nature of your business, say product or service.
• Features and benefits
• Copyright/patents
• Durability and reliability
• Product categories and dimensions
• Assortments or colours
8.4 Business environment analysis
8.4.1 Industry background
8.4.2 Competitor analysis
8.4.3 Market analysis
8.4.1 Industry background

• Identify industry,
e.g. clothing, food and beverages, transport, etc.
• Contribution to the economy ( ref. next slide/s)
• Industry ratios (sales)
• Growth potential
• Standards and practices
8.4.2 Competitor analysis
• Identify companies providing the same products
• How many (domestic or foreign)?
• Market leader (strengths and weaknesses)
• Pricing (setters or takers)
• Scope or size of competitors and market share
• Identify gaps/opportunity (untapped markets) - solution
• Identify threats (retaliation) - defence
8.4.3 Market analysis
• Customers or consumers (profile: age, gender, race, lifestyle, social
status, educational level, marital status, loyal or flexible, etc.)
• Location: rural, peri-urban or urban, city, mobility
• Size of population
• Prospects and their needs, wants, demands or prefrences7]pouyfd
• Income levels
• Disposable income
• Discretional income
8.5 Marketing plan
• Attracting customer and selling – time frame (daily, weekly, monthly…)
• Product form/s or types and
• Pricing: skimming or penetration
• Distribution network (direct/indirect) selective or intensive or exclusive, and locations
• Locality, provincial, national, sub-continent, continent, global or online (partners)
• Promotion:
Broadcasting: Television, radio, cinema, etc.
Print: magazines, newspapers, handouts/pamphlets
Outdoor: billboards, signposts, wrapping, exhibitions (indoors too), etc.
digital – emails, instant, social platforms, etc.
Others: personality,, storyline- soapies, sponsorship, face-to-face, direct- telephony, etc.
8.6 Operations plan
• Plant or manufactory or retail facility
• Sourcing and ordering
• Production or service provision and quality control
• Warehousing and stock control
• Technology (knowledge, equipment, processes and procedures)
• Communication systems: contact, telephone, notices, emails, mobile
services, intercoms, etc.
• Security systems: surveillance, alarms, barcode, etc.
• Selling and after-sales: payment methods – cash, debit, credit, lay-buy;
• Reporting systems and control or authority
8.7 Management summary
• Leadership or management and their qualifications
• Investors and directors (qualifications)
• Consultants and their qualifications
• Recruitment and training (employees)
8.8 Financial plan
8.7.1 Projections
• Costs and expenses break down and their projections (Budget
amount)
• Potential revenue
• Break-even point
• Gross and Net Profit
8.7.2 Financing: sources of funds: loans (factor in interest rate e.g. 11%
p/a, savings, partners, necessary assets, etc.
8.9 Attachments and milestones
• Awards
• Nominations or notations
• Mentions and quotes
• Testimonials
NB: Linked to the business or product or service achievement

…………………………..STUDY GUIDE ENDS………………………………………

 SWOT Analysis of Tyme Bank in a Glance
Strengths Weaknesses
▪ Online banking technologies ▪ New in the banking sector
▪ Limited or no rental ▪ No brick and mortar premises
▪ Low labour costs ▪ No credit nor loans
▪ Finance from founders ▪ Limited experience
▪ No debt book/write offs ▪ Communicates in English only
▪ Wide distribution of branded kiosks at PnP ▪ Bank statements sent after a month
and Boxer ▪ Limited exposure to the broader market
▪ Efficient in opening or blocking accounts ▪ No to lower profits
▪ Lower charges attack more customers ▪ Tap or the swipe card without a PIN

Opportunities Threats
▪ Partnerships with other retailers ▪ Regulations (credit)
▪ Expand services (loans) – customers and ▪ Formidable competition (FNB, Nedbank, Absa,
businesses Standard Bank, Capitec, Zero Bank, Discovery
▪ Unbanked customers Bank, etc.
▪ Growing population ▪ Risk of retaliation
▪ Venture into SADC region for growth ▪ Data costs
▪ Cyber attacks
▪ Unemployment
 Facilitator: Calvin
[email protected]

All the best with your studies!!!