Strategic and architectural dimensions of the decision-making processes in South African multinational corporations

2014 ◽  
Vol 20 (6) ◽  
pp. 832-850 ◽  
Author(s):  
John M Luiz ◽  
Grant Visser

AbstractWe examine the manner in which South African-owned multinationals devolve power to their international subsidiaries in Africa, and the resulting effects of the interaction between strategy and structure. The research suggests that a dynamic process of power distribution may develop, in terms of the following: (1) the performance of the subsidiary, its expertise and experience to adapt to local market demands; and (2) the multinational’s need to manage the risks propagated by the African operating environment in which it operates. There is a dual facet to power devolvement, one in which South African multinationals opt for risk mitigation through long-standing control, often at the expense of operational adaptation. In contrast with the literature, which sees multinational corporations as differentiated networks, in the South African case we find a more traditional approach with clear headquarters and ‘miniature replica’ subsidiaries. This suggests that South African multinational corporations are still emerging and that it will take time to develop differentiated networks.

2021 ◽  
Vol 14 (8) ◽  
pp. 338
Author(s):  
Peter Balsarini ◽  
Claire Lambert ◽  
Maria M. Ryan ◽  
Martin MacCarthy

Franchising has long been a method by which organizations seek to expand and facilitate local market development. However, franchising as a growth strategy can often be hampered by lack of suitable franchisees. To mitigate this shortage, some franchisors have engaged in recruiting franchisees internally from the ranks of their employees in addition to the traditional approach of recruiting franchisees externally. Predominantly franchisees are individuals rather than corporations and thus purchasing a franchise should most commonly be characterized as a consumer acquisition. To explore the relationship between subjective knowledge, perceived risk, and information search behaviors when purchasing a franchise qualitative interviews were conducted with franchisees from the restaurant industry. Half of these respondents were externally recruited having never worked for the franchisor and half were internally recruited having previously been employees of the franchisor. The external recruits expressed a strong desire to own their own business and engaged in extensive decision-making processes with significant information search when purchasing their franchises. Contrastingly, the internal recruits expressed a strong desire to be their own boss and engaged in limited, bordering on habitual decision-making processes with negligible information search when acquiring their franchises. The results reveal that differences in subjective knowledge and perceived risk appear to significantly impact the extent of information search between these two groups. A model of the relationship between subjective knowledge, perceived risk and information search in the purchasing of a franchise is developed that reconciles these findings. The findings also have practical implications for franchisors’ franchisee recruiting efforts which are integral to their capacity to develop local markets.


2017 ◽  
Vol 11 (1) ◽  
Author(s):  
Yuichiro Kakutani

By using an incentives/disincentives model to map the divergent behaviors of multinational corporations (MNCs) confronted by a sanctioned economy, I explain why some economic sanctions work better than others at achieving their desired political outcomes. When presented with the opportunity to “run the blockade,” MNCs are incentivized to sanction bust by the allure of higher profit through rent extraction. At the same time, MNCs are disincentivized to sanction bust by the penalties for breaking the sanction, but only if MNCs believe sanction busting operations is inconspicuous enough to avoid detection. If the incentives to sanction bust outweigh the disincentives not to, then MNCs will trade with sanctioned states, as was the case with Rhodesia. Since MNCs were crucial to both the Rhodesian and the South African economies—as it provided oil to the former and operated a significant minority of the firms in the latter—the decisions of MNCs to remain engaged in Rhodesia and to disengage from South Africa had a significant impact on the economic and political life of the two apartheid regimes. Hence, while many economic and political indicators identified by literature predicted that Rhodesia would have a shorter life expectancy under economic sanctions, Rhodesia defied all expectations and survived twice as long as South Africa.


Author(s):  
Shuti Steph Khumalo

The democratic dispensation elevated teacher trade unionism to unparalleled and unprecedented levels in the South African education system. The education laws of South Africa recognize teacher unions which meet the South African labor-related requirements. The three powerful teacher unions that recognize and represent thousands of teachers are the South African Democratic Teachers Union (SADTU), the National Professional Teachers' Organisation of South Africa (NAPTOSA), and the Suid Afrikaanse Onderwysersunie (SAOU). These recognized teacher unions represent their members in decision making processes and not teachers who are non-union members. This chapter is based on an in-depth evaluation of extant literature, and further, it is interpretive in approach and employs social justice as the theoretical and conceptual framework.


2016 ◽  
Vol 33 (1) ◽  
pp. 22-45 ◽  
Author(s):  
Minna Joensuu ◽  
Vuokko Niiranen

The rapid change of local government operating environment shapes the interaction between political leaders and public administrators, who work in the constant riptide of service responsiveness and economic pressure. We investigate the relationship between political leaders and public administrators in the local administration of social and health services. The patterns and pictures are examined empirically, with data gathered from strategic-level political leaders and public administrators in six Finnish local government organisations. The analysis applies multivariate methods. The results suggest that there are different groups among the political leaders. The differences are not based on political opinions, but rather on the attitudes towards the decision-making process, also the views on local government decision-making processes differ between the groups. The rapid contextual change experienced in the public organisations requires a fast and well-informed response from political leaders and public administrators; even political differences can be pushed aside in this turbulent operating environment.


Privatization ◽  
2018 ◽  
pp. 52-78
Author(s):  
Alon Harel

Under the traditional view, the decision to privatize hinges exclusively on the question of who is most likely to make the just or correct decision: a public official or a private entity. This chapter challenges the traditional approach and argues that massive privatization as such has costs as it severs the link between decision-making processes and citizens, eroding the prospect of meaningful political engagement and civic shared responsibility.


2006 ◽  
Vol 08 (02) ◽  
pp. 111-134 ◽  
Author(s):  
ELIZABETH MULLER ◽  
RUDI PRETORIUS ◽  
VASNA RAMASAR ◽  
MARIAN JANE PATRICK ◽  
CHANTAL WILL ◽  
...  

The past few decades have seen an increasing demand for environmental information on which to make more informed decisions, strengthened by several international calls for improving available environmental information. In a democratic South Africa, the involvement of people in policy and decision-making processes has led to an even greater need for accessible information. In response to this demand for information, State of the Environment (SOE) reporting has gained momentum and become highly popular in South Africa. This popularity has grown despite the absence of any legal mandate for reporting in South Africa, as well as the lack of formalised institutional arrangements for reporting. The current situation has resulted in a number of challenges for SOE reporting which need to be addressed. These challenges, and appropriate solutions, are discussed. The paper aims to stimulate discussion in the field of SOE reporting, both within South Africa and internationally.


2021 ◽  
Vol 9 ◽  
Author(s):  
Love Ekenberg ◽  
Adriana Mihai ◽  
Tobias Fasth ◽  
Nadejda Komendantova ◽  
Mats Danielson

In managing the COVID-19 pandemic, several compelling narratives seem to have played a significant role in the decision-making processes regarding which risk mitigation and management measures to implement. Many countries were to a large extent unprepared for such a situation, even though predictions about a significant probability for a pandemic to occur existed, and national governments of several countries often acted in an uncoordinated manner, which resulted in many inconsistencies in the disaster risk reduction processes. Limited evidence has also made room for strategic narratives meant to persuade the public of the chosen set of actions, even though the degree of uncertainty regarding the outcomes of these was high, further complicating the situation. In this article, we assume a normative standpoint regarding rhapsodic decision making and suggest an integrated framework for a more elaborated decision analysis under the ambiguity of how to contain the virus spread from a policy point of view, while considering epidemiologic estimations and socioeconomic factors in a multi-stakeholder-multi-criteria context based on a co-creative work process for eliciting attitudes, perceptions, as well as preferences amongst relevant stakeholder groups. The framework, applied in our paper on Romania for demonstrative purposes, is used for evaluating mitigation measures for catastrophic events such as the COVID-19 situation, to mobilize better response strategies for future scenarios related to pandemics and other hazardous events, as well as to structure the production and analysis of narratives on the current pandemic effects.


2017 ◽  
Vol 62 (1) ◽  
pp. 22-34 ◽  
Author(s):  
Ulene Schiller ◽  
Gideon de Wet

Indigenous cultural as well as institutional social work practices often contribute towards the perpetuation and creation of inequalities. This article explores the experiences of South African foster care adolescents regarding participatory decision-making and the role of indigenous culture and social work practices. The theoretical framework adopted in this article is the developmental social welfare approach augmented by selected elements of the systems theory. A phenomenological study was conducted, and a major finding concluded that the cultural value system of foster adolescents, the institutional social work practices and the developmental approach are in conflict.


2004 ◽  
Vol 7 (2) ◽  
pp. 221-241 ◽  
Author(s):  
M Pretorius ◽  
G Shaw

This article focuses on the position that South African commercial banks adopt when evaluating an application for finance of new business ventures. The role and importance of the business plan in the decision-making process is highlighted and investigated. This article begins to qualitatively describe the decision-making processes, criteria and processes instituted by the four major South African commercial banks that between them serve 96 per cent of the banking services for small business. It then questions the barriers placed on applicants applying for finance and recommends how these barriers can be removed. The article concludes that banks finance business ventures with poor potential for success if the applicant is creditworthy or has the necessary security rather than assist applicants with good plans and ventures with potential, but lacking sufficient security.


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