Grow or successfully disengage? Navigating the revolution of South African tower companies

Author(s):  
Sebastian Prim ◽  
Mikael Samuelsson

Subject area of the teaching case: The case is suitable for strategy or entrepreneurship modules. It is designed to teach students about the importance of implementing formal processes when entering a growth phase as well as the complexities, unexpected costs, and benefits that growing a business can bring. Student level: The case is aimed at MBA or Master-level students or executive education programmes as part of a strategy or entrepreneurship module. Brief overview of the teaching case: Lattice Towers is a South African company in the telecommunications infrastructure sector. They are struggling to generate sufficient cash flow to sustain operations as a result of poor strategic decision-making regarding tower-build site acquisition. To compound matters, the owner has been struggling with health issues related to the stress caused by the crises that Lattice Towers is going through. Recently, however, a multinational publicly listed behemoth in the telecommunications industry, Helios Towers, offered to acquire the company. The acquisition offer seems like a saving grace to the owner; however, Lattice Towers is deeply personal to the him and he would not like to lose the brand. Furthermore, there is a tremendous opportunity for business growth due to the imminent increase in demand for tower infrastructure. But based on the challenging financial position the business currently finds itself in, he might not have the option to keep the business. Expected learning outcomes: To develop a decision-making framework and strategy to navigate the business life-cycle stages, from survival to growth Understand the concepts of uncertainty, risk, and liquidity premiums that apply to entrepreneurship Understand the stress-related implications for entrepreneurs Understand the psychological costs and benefits of entrepreneurship Understand the personal financial implications for entrepreneurship

Author(s):  
Rihana Hoosain ◽  
Geoff Bick ◽  
Mikael Samuelsson

Subject area of the teaching case: The case is particularly relevant for students studying elements of business strategy with an interest in strategic decision-making, competitive strategy, and growth strategy. The case leverages several strategic frameworks taught throughout business courses and illustrates a real-world application of these frameworks to support sound strategic decision-making. Furthermore, the case examines the relevance of sustainable competitive advantage and the linkages to the appropriate growth strategy for a business. It is recommended that this case be taught once students have covered the applicable theory and frameworks in class. Student level: This case is designed for business administration students, in particular MBA, EMBA, speciality Masters, or executive education students. Brief overview of the teaching case: MWEB is a leading first-tier South African internet services provider, with an operating history spanning over 22 years. The MWEB brand is a household name across South Africa, seen as one of the pioneers of the internet industry and accredited with bringing the internet to ordinary consumers across the country. The state of competition in the market, however, has intensified and MWEB's traditional operating model has not evolved fast enough to meet the changing landscape. The market is in the midst of a price war, to which MWEB has responded by reducing market pricing and offering attractive deals, undercutting all its competitors. The results have been positive; sales have increased and churn has reduced, but competitors have already started to follow. The dilemma facing CEO Sean Nourse and his management team is how to accelerate growth in a highly commoditised market with intense competition while ensuring the long-term profitability of the business. The case encourages the consideration of the strategic decision-making process by analysing the competitive landscape, evaluating the options, and reaching a decision on the most viable growth strategy for the business. Expected learning outcomes: To analyse the competitive landscape and the forces at play To conduct a competitor analysis, appraise long-term profitability in the industry, identify profitable strategic positions, and determine how MWEB may achieve and protect its competitive advantage To identify and analyse the key parameters that, in combination, represent a company's business model To critically analyse the contextual factors that are presented as business challenges, evaluating and understanding the impact and scale of these challenges To critically assess relevant growth strategy alternatives for MWEB and analyse the viability of the alternatives presented To conduct an informal valuation to determine a purchase price for an acquisition target for the business


2018 ◽  
Vol 8 (4) ◽  
pp. 1-35
Author(s):  
Geoff Bick ◽  
Fezile Sidubi

Learning outcomes They are as follows: to identify strategic growth opportunities for SMEs in the South African craft beer industry; to understand the complexities associated with operating a craft beer SME in the South African alcohol sector and analyse the SME’s strategic decision-making process that happens as a result; to understand the challenges and identify opportunities for entrepreneurship and growth in an emerging economy and niche segment; to develop a differentiation strategy for a small player in a competitive market; and to impart industry-specific knowledge and insight on the craft brewing industry. Case overview/synopsis The case is centred on the challenges that Hein Swart, managing director of Mitchell’s Brewery, is facing in sustaining business operations amid heavy regulations and increasing competition from existing craft breweries. In addition, there is the entry of a different type of competitor into the South African market that did not exist previously. The case narrative broadly presents several industry themes that interact with each other and create the existing complexities. Complexity academic level This case is targeted at postgraduate business school students with some work experience who want to build their critical thinking, business management and strategic decision-making skills such as Masters of Business Administration (MBA) and Executive MBA academic programmes, and also delegates on Executive Education programmes. The case is expected to be used as a case study for courses in entrepreneurship and strategic management; however, it can also be applied in strategic marketing courses. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship


2019 ◽  
Vol 9 (3) ◽  
pp. 1-33
Author(s):  
Geoff Bick ◽  
Jeanné Odendaal

Learning outcomes The learning outcomes are as follows: to understand how technology can be used to create innovative entrepreneurial opportunities; to develop analytical and critical thinking skills to understand organisations, industries and their dynamics; to analyse strategic options for an entrepreneurial organisations and motivate a proposed strategic direction; and to assess the inter-functional requirements for an entrepreneurship to successfully implement a strategy. Case overview/synopsis UCOOK, a successful emerging economy SME, is confronted with the threat of retail giants (e.g. Checkers and Woolworths) entering the meal kit space. No longer the only “new kid on the block”, UCOOK has to consider a sustainable growth strategy to remain competitive. The case provides the reader with a snapshot of experiences of a meal kit entrepreneurial venture and what it entails for them to grow in the South African milieu. Principally, this case is designed to impart knowledge and stimulate a practical understanding of entrepreneurship and strategic decision-making in the meal kit industry. Additionally, the purpose is to serve as inspiration for business students to see the opportunities that lie within strategically astute emerging market ventures. Complexity academic level The primary target audience for this teaching case is postgraduate business students, especially students of entrepreneurship, strategy and e-commerce. This teaching case is intended to be used as case study in post graduate business programmes such as Master of Business Administration (MBA), a specialist Masters programme such as MM (Entrepreneurship), post-graduate diploma in management (PGDip), as well as selected executive education programmes. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 3: Entrepreneurship.


2011 ◽  
Vol 1 (1) ◽  
pp. 1-2
Author(s):  
Conchita Mary Fonseca

Subject area Business strategy and human resource management. Study level/applicability Undergraduate Business and Management. Case overview This case spotlights Oilfield Services branch in Abu Dhabi, United Arab Emirates. It focuses on various problems encountered whilst operating in Abu Dhabi. Oilfield Services was first established in Dubai in 1995, primarily to meet the growing demand of quality human resources in the oilfield, shipping, and fabrication sectors in the Middle East and Persian Gulf region. The case highlights the challenges of motivation and compensating staff and the importance of strategic decision making. Expected learning outcomes This case can be used to teach decision making, cost/benefit analysis, employee motivation, and compensation and elements relating to international business strategy. Supplementary materials A teaching note is available on request.


Author(s):  
A. Fatti ◽  
A.S.A. Du Toit

Currently the South African pharmaceutical industry is being affected by legislation, as the government is readjusting the whole healthcare system to make it cost-effective and equitable. The purpose of this article is to establish what the current situation is within the South African pharmaceutical’s industry’s competitive intelligence (CI) capacity. Questionnaires were administered electronically to senior managers in the pharmaceutical industry. The majority of the respondents were of the opinion that a culture of information sharing and an environment of collaboration on competitive issues exist in their companies. Respondents confirm that CI is used on a continuous basis in strategic decision-making and that company strategies are used to manage competitors. It is recommended that senior management of pharmaceutical companies capitalise and consolidate the CI function which is used on a continuous basis in strategic decision-making.


2019 ◽  
Vol 18 (3) ◽  
pp. 142-174 ◽  
Author(s):  
M Steyn

South African listed companies are among the first in the world to be subject to compliance with integrated reporting requirements in terms of stock exchange listing requirements. Integrated reporting, as a novel and evolutionary step in corporate reporting, along with the influence that integrated thinking and integrated reporting principles will have on companies, has been the subject of global debate in recent years. This study, performed two years into the South African integrated reporting regime, aims to summarise the findings of the perceptions of chief executive officers (CEOs), chief financial officers (CFOs) and senior executives of South African listed companies on the organisational changes perceived as a result of implementing integrated reporting requirements. The findings confirm and strongly support several of the anticipated organisational outcomes of a regulatory integrated reporting regime, most notably the advancement of strategic decision-making that recognises the organisation’s dependence on resources and relationships in creating and sustaining longer-term stakeholder value, greater consideration of the linkages and interdependencies between financial, social and environmental, and economic matters in setting strategic objectives, and an increased organisational focus on integrating social and environmental objectives into strategic objectives and aligning reported key performance indicators (KPIs) with external stakeholder requirements. Integrated reporting is also perceived as encouraging decision-making in the organisation with the objective of longer-term sustainable wealth-creation. However, maintaining the balance between transparency and business confidentiality when disclosing forward-looking information and strategy remains a challenging aspect of integrated reporting for companies.


Author(s):  
Patrick Cairns

Subject area of the teaching case: The values-based leadership (VBL) themes lend the case to use in courses focussed on individual leadership approaches, personal-professional development, personal mastery, or individual agency in social change and social justice movements. The emerging market context adds a layer of complexity to the protagonist's journey, which may make the case especially relevant for use among students who work in this context or in courses that deal with volatility, uncertainty, complexity, and ambiguity (VUCA). Student level: The primary target audience for this case is postgraduate students in a management or professional development program. Brief overview of the teaching case: This case offers a leadership profile of lawyer Fadzayi Mahere as she pursues social change at the national level by running for political office in Zimbabwe in 2018. The case recounts Mahere's professional journey through human rights law and local activism, which eventually drives her to run as an independent for a position in the national election. She does this as a response to the dire state of the country: economic crisis, social instability, and political corruption that are making life increasingly untenable for most people. In spite of running a strong grassroots campaign, Mahere loses the election and is faced with the dilemma of whether or not to forego independence and join the dominant opposition party. The case therefore centres around the role of values in leadership, the role of narrative in shaping the decision to lead, and how these things impact a leader's strategy for affecting social change and achieving social justice. Expected learning outcomes: Appreciate the systemic nature of social problems in an emerging market context and how this creates different opportunities for a leader to act on a problem Understand how a leader's identity, in terms of values and experiences, shapes their motivations and informs their strategy for leading a change effort Understand the dimensions of values-based leadership (VBL) – transformational, authentic, accountability, and ethical leadership – and how the actions of a values-driven leader reflect these Identify the mechanisms that aspiring leaders practicing VBL can use to build an authentic narrative for key stakeholders to accept and embrace them Recognise the different strategies a leader can adopt to achieve values-driven outcomes, while maintaining alignment with the different dimensions of VBL


2009 ◽  
Vol 15 (1) ◽  
pp. 2-16 ◽  
Author(s):  
Ingrid Bonn ◽  
Andrew Pettigrew

AbstractWe propose a research agenda that can assist in developing a dynamic and comprehensive theory of boards of directors. It is based upon the concept of temporality, with time being organised around the life-cycle metaphor, and integrates research on agency theory, decision-making theory and resource dependence theory. We identify three key roles of boards of directors:1.monitoring and controlling top management;2.involvement in strategic decision-making; and3.providing access to resources and networks.Our analysis suggests that boards perform all three roles, but that these roles change over time. We propose clear researchable questions for each stage of the organisational life cycle as well as the transition between the stages.


foresight ◽  
2018 ◽  
Vol 20 (6) ◽  
pp. 602-621 ◽  
Author(s):  
Danielle Meyerowitz ◽  
Charlene Lew ◽  
Göran Svensson

Purpose The purpose of this paper is to explore the corporate requirements, benefits and inhibitors of scenario planning in strategic decision-making. Design/methodology/approach This paper is based on a sample of 15 case studies with executives in the South African context to reveal the perceived corporate requirements, benefits and inhibitors of scenario-planning. Findings From the cases, it is evident that industry-, organizational- and leadership-related factors enable or inhibit scenario planning. Requirements, benefits and inhibitors are revealed in strategic decision-making. Research limitations/implications Further research to determine supportive tools and technologies for enabling scenario-planning across multiple contexts is needed. Practical implications This paper expands insights into the requirements, benefits and inhibitors of scenario-planning in strategic decision-making. Originality/value Given the increasing complexity of the business environment, a framework of scenario-thinking is presented and recommend greater emphasis on developing strategic decision-making competence, changed mindsets and organizational agility.


Author(s):  
Craig Furfine

In January 2010, Benedict Clarke, general partner of a small real estate private equity venture, faced difficulty with one of his properties. When purchased in early 2007, Tulaberry Plaza was a thriving retail shopping center outside Orlando, Florida. The financial crisis and severe economic downturn forced Tulaberry's anchor tenant into bankruptcy and weakened the other tenants in the plaza. Clarke now faces pressures placed on him by his limited partners, who were shown rosy projections of the returns they would receive, and by his lender, who is presently taking most of the property's cash flow to satisfy required debt service. Clarke must devise a plan that presents the most logical and profitable way forward, while also justifying his actions to elicit the necessary support from the others involved in the transaction. The case asks students to make decisions from the perspective of Clarke, giving them an appreciation not only of the details of strategic decision-making in real estate leasing, but also of the interplay between lenders and equity partners when managing a commercial property in distress.After reading and analyzing the case, students will be able to: Choose the right tenant for a retail establishment, with an understanding that it may not be the one that promises to pay the most rent Identify the connections among commercial property performance, mortgage loan covenants, and partnership agreements, all of which can influence optimal decision-making


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