MIN MARK
BUSINESS PI NOTES 2024 Chr (150)
I
Asia Yarlett A 10 (30)
Ihr
B
is a
o
.
Ihr
Santos
,20May
se
, ORIGINALITY :
- Sterkinekor restructuring and downsizing with start cuts and cinema closures
Jamesshe is
-Massmartclosing
down many underperforming
BUSINESS STRATEGIES
-
shoprile & checkers were competitors , shoprite acquired checkers chain (Integration)
ENVIRONMENTS -
Eskom retrench white workers race based targets
,
-
Eskom problem solving : restructuring framework , but scared of Trade Unions
-
Frame Leisure , owner of cross trader to be liquidated
NS2 2024 !
I
STRATEGIC MANAGEMENT PROCESS : STEPS IN STRATEGY
STRATEGY :
-review vision a mission stalement EVALUATION 2023
long term plan
tools : SWOT/PESTLE
-
examine bases of strategy
of action to
-
environment analysis -
look forward 3 backward
achieve Formulate Strategy (defensive/retrenchment)
goal e implementation process
-
-
Implement action plan (template ( -
compare expected outcomes
that will resultthe in achievement
-
Evaluate to take corrective action of business goals .
-
corrective action
-
ser dates for follow up
-
table of adv disadv
ANALYSIS TOOLS/ ENVIRONMENTAL
.
INDUSTRIAL SCANNING TOOLS
MICRO
MACRO
SWOT ANALYSIS
Internal Weaknesses PESTLE ANALYSIS
Strengths
micro SOLUTIONS TO CHALLENGES :
① Political CHALLENGES :
external Opportunities Threats
government policies
&
research recent gor policies
- -
market
.
consumer rights org
macro network b lobby with NGO's
-
. -
Trade agreements with far trade
-
Trade with countries
National Competition
- .
MARKET -
essay Q agreements (imports)
PORTER'S FIVE FORCES policy of S . A
.
2023
1 power of suppliers ② Economic -
decr pront margin instead of incr price
1
,
influencing prices -
Inflation/Interest rate
money financial institutions w
-
no
-
borrow
-
suppliers -
loan rales
& Fayeradberorea
-
quality Foreign currency
-
-
reliability
③ Social
11 Power of Buyers -
customer afford due
-
influencing prices to income levels -
learn local lang
bulk
.
language customers
-
-
conduct market research
crime race accent ons
-
-
get info
lang
.
& more
-
noo
buyers ① Technological
buyers reliability on bus
!
-
keep up latest continuous research
.
-
-
skilled train
III Power of competitors employees existing employees
-
-
to operate -
compare price new equip
-
similar products - afford newlech
for
-unique - online transactions
-
year bus .
online/e-commerce
-
noo competitors
-
price wars (sell & loss
⑤ Legal
-
until competitors leave
-stepanoperangrenums
-
Acts
IV Threat of substitutes
-
Legal requirem
Subs qual peace trademark )
-
unique
-
satisfying
same needs ⑥ environmental
for same consumer
&
-
chemical ingredients
-
clearly indicate
ingr.
V Threat of new entrants -
dispose expensive -
cost effective disposal measures
ease of entrance (barriers)
packaging environ Implement recycling,
- -
-
how profitable bus
-
is .
type friendly/recycleable prevent pollution
-
capital needed for start-up
few suppliers many buyers
-
,
, TYPES bus Combines/takes over distributors
BUSINESS STRATEGIES
-
.
mmm
-
expansion to gain control
over direct distribution
D INTEGRATION STRATS I
Distributor
-
Incr
profitabinly as No
intermediary
↑
.
HORIZONTAL
-
bus Combines/takes
.
competitor FORWARD VERTICAL :
over in un
same industry whe Business
-
aim to reduce threat -
bus .
Combines/takes over
suppliers
BACKWARD VERTICAL : -
of competition/subshtutes
Incr market share/sales
↓ Aims at decr. dependancy supplier
on
-
.
suitable for franchised bus
Wit suppler -
curs costs ,
have influence over
-
.
price , quality gty ,
raw makenals
growth
②INTENSIVE STRATEGIES PRODUCT MARKET
@ low price
MARKET
ADV OF INTENSIVE STRATS
.
PENETRATION existing existing ·
gaining market share by
to Incr sales
- Incr . market share
to
reduces p M reducing prices
Vulnerability competitors
Incr Sales ; Income ; progr existing new
finew
-
MARKET
.
way
as
·
market
more control over ↑
prices DEVELOPMENT
-
-
customer loyalty
↓ prices. ↑ sales
existing
-
:
PRODUCT new
eliminates competitors is
Bus generatenewde
-
DEVELOPMENT p M
·
- enables bus to focus research . Product
on customer needs Dev
- new product
③ DIVERSIFICATION
T
ESTNG CUSTOMER o
STRATEGIES Add new product that
ADV . OF DIVERSIFICATION
related to existing products,
3 bus Growth
·
incr sales CONCENTRIC
related newwillappealtonewcu.f
-
.
.
-Improvebus brandimage
P-- P
one product unrelated to
·
existing prod
products sold &
,
more More
unrelated existing but will appeal to
existing cust
IGRIZONT AL
-
markers established with
merges/aquisitions C occurs
-
Diversification into industries
can create
economic
balance during
fluctuations
petp
"mix"
unrelated new
unrelatedto existing prostomers
CONGLOMERATE bus
growsInto new product
Incr ourput
·
Input remains p
,
-
C
as
,
can use one factory ↳ markets
④ DEFENSIVE STRATEGIES
⑤ OTHER STRATS
RETRENCHMENT :
-
Terminating employment contracts for operational reasons Company can reposition belf by :
departments employees redundant
revising mission objectives
certain some
closing
- : ·
DIVESTITURE :
assets longer protrable with slow
growth
devising new policies
selling some no
-
issue stock to raise Capital
·
selling ownership : dear no shareholders
-
(divesting)
.
-
pay debts by selling assets ! With
drawing ,investmen
ens
·
dev .
performance incentives
LIQUIDATION :
pay creditors)
to replace individuals
Cinability
-
selling to pay off debts due to lack of capital
All assets
reallocate resources
entire business to pay shareholders fair
·
selling
-
-
creditors apply for forced liquidation to settle claims ·
additional salespersons
-
apply for "business resue" to avoid liquidation
, ENVIRONMENTS 18th April 2023 NUMSA Went on Strike , Treatstar
originality :
·
locked them out
IMPACT OF RECENT LEGISLATION · Eskom problem
solving : restructure framework
but has fears of trude unions
·
Eskom fights allegations of race-based larges retrench
· Parliaments unethical secret Salary increase 2023 white maintenance workers
Ost 70 %
· Redbull will pay $10 to disappointed customers that didnt get "Wings" /didn't meet expectations
ing 500
1. SKILLS DEVELOPMENT ACT (SDA) Learnership /1 % SDL/ productivity/SETA
>
-
Improve skill level of people already employedIn business
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
Develops skills to improve productivity ·
preventing learnerships due to age or posit.
·
unfair promotion of skills dev.
·
redresses Imbalances of past through false info in documents
education and
·
training not skills per
paying levy
·
illegal practices
IMPACT OF SDA ON BUSINESS
CONSEQUENCES OF NON-COMLIANCE
Adv ~
bus not claim grants from SDA
.
May
business globally competitive ~: Far
productivity inspector order bus To stop operating
Improve
.
workplace active learning = environ WAYS BUS CAN COMPLY .
of skilled workers Provide all employees with
opportunity for skills dev.
·
increase number
In areas where scarce Encourage all employees to participate In
learnerships
Dis Adv
·
Asses skills of employees to determine areas where
·
pay 1% Salary where skills development needed
paperwork/admin costs
·
who collect PAYE with SETAs
of spa hard to
·
employers register
implimentation ↳ 1%
Payroll to SETA
pay
monitor 3 control
learnerships during work his
: affect productivity
· time a money spent will be wasted FUNCTION OF SETAS :
If employee leaves (Sector Education Training Authority
BROADER
support Implementation of SDA
(NahonaSkls
·
PURPOSE Of NSDS ·
allocates pay our grants
·
incr . access to training programmes promote 3 establish learnerships
·
address low Ivl of lang 3 .
math skills ·
provide training material 3 programmes
·
guides work of SETAS for skills dev facilitators .
·
Incr . skills in public sector
SMAILER (workforce FUNDING OF SETAS 2023
PURPOSE OF HRDS (thumanResourcesa SDLevy , paid by employers to SARS
↳ R500 0002 salary per annum pay 1 % levy
:
address skillsshortage in SA workforce
·
· from donations/grants received from public
Develops Short 3 long term work skills Funds from rendered
·
·
services
·
reduces poverty levels ·
CSI programmes
employee lifelong learning LEARNERSHIPS
A contract between learner , employer and
·
a
training providers for a specific period that
leads to the acquisition of a national
qualification
, Trade unions/strike/workplace forom/rights
. LABOUR
2 RELATIONS ACT (LRA) labour dispute /C2MA/ relation ships
>
-
promote simple procedures for resolution of labour disputes in workplace
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
·
promotes (trade union (
·
unfair dismissal of
employees
collective workplace
-
bargaining in ·
preventing employees
- fair labour practice joining trade unions
-
-
workplace forums -
participating in strikes
-
establish <CMA (dispute resolution) -
establishing workplace forums
·
Provides
-
right to lawful lock-outs
CONSEQUENCES OF NON-COMPLIANCE
framework for labour relations
financial costs CCMA feesa fines
-
·
:
·
forced to enter dispute resolution process
IMPACT OF IRA ON BUSINESS
Adv WAYS BUSINESSES CAN COMPLY
·
promoteshealthy relationships between ·
fair dismissal
employer 3 employee ·
support/allow
·
protects rights of bus . In labour issues -establishment of workplace forums
·
labour disputes settled quicker -
participation In trade Unions
& less expensive -
legal strikes
provides specific guidelines
on fair discipline procedures
Dis Adv RIGHTS Of
EMPLOYERS 2023
·
legd) strikes incr cost of labour
·
strikes decr. productivity
·
lock-outs for Illegal strikes
... reduced global competiveness dismissal for Illegal strikes
·
·
trade union activities In work time not to
pay when stake (no work ,
nopay)
to form employer organisations
employees take adv Of strikes (bargaining
·
·
.
councils
EMPLOYEE
·
join trade union
·
embark in
legal strikes
·
refer unresolved workplace disputes to CCMA
INSIDE
WORKPLACE ·
trade union representatives take reasonable
time off to attend duties.
0
↑
bargaining- employee > Trade
·
establish a workplace forum
council / employer
union
employer org. grievance
↓
workplace
forum
CCMA : Commission for conciliation,
↓ Mediation and Arbitration
CCMA
↓
Labour Court
, Affirmative action/Diversity/Demographics/
3
. EMPLOYMENT EQUITY ACT (EEA) RedressInequality / equal work equal pay
>
-
Ensure equal job opportunities given to all regardless of
↓
PURPOSE 2023 ACTIONS CONSIDERED NON-COMPLIANT
equal work , equal pay Denying employment / unfair treatment based on :
eliminate discrimination of
&
gender
·
-
gender ; race ; disability -
race
promote equal opportunity culture
(Discrimination)
-
↳ fair treatment -disability
promotes diversity -
religion
- Impliment aftimitive action language
-
·
equal representation of CONSEQUENCES OF NON-COMPLIANCE
population groups ·
fines
employment equity plan pay compensation to employee
·
bus .
brought to Labour cours
IMPACT OF EEA ON BUSINESS labour inspectors may investigate
Adv
promotes implementation of affirmative WAYS BUSINESSES CAN COMPLY
action to redress inequalities of past
workforce
implement employment equity plan
·
ensures represents implement affirmative action measures
demographics of country ·
clearly define appointment process
impact + on BEE ratings asses racial composition of all employees
·
·
·
motivates employees by Inclusivity regularly report progress on plan to
Department of Labour
·
Appointment process clearly outlined workforce represents
·
ensures
DisAdv demographics of country
· fines for non-compliance
·
diversity may lead to conflict
·
increased admin burden lequity reports every 2yrs)
·
may be pressurised to appoint
unsuitableef person to meet requirm .
, Min . rea .
employment/contract
4. BASIC CONDITIONS OF EMPLOYMENT ACT (BCEA)
>
-
sets our minimum standard for employment In order to promote fair labour practice
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
·
Provides clear terms and conditions preventing employees
of employment - access to employment contracts
sets min .
requirements for employment discussing
-
salaries/ wages
contract ·
Refusing
-
valid medical certificale
IMPACT OF BLEA ON BUSINESS -
family responsibility leave for sick family
Adv
CONSEQUENCES OF NON-COMPLIANCE
·
creates clear framework of acceptable ·
fines
employment practices
↳ work his specified pay compensation to employee
·
Promotes fair treatment of employees ·
bus .
brought to Labour cours
sets min requirements for labour inspectors may investigate
employment
·
.
contract
guidelines on employment issues WAYS BUSINESSES CAN COMPLY
workers should only work :
DisAdv
-
aurseyday In S
day week
week
-
Ohrs/day in 6 day
exploitation Illegal
·
·
overtime can't exceed 10hrs/week
: work his limited (4Shrs/week)
·
cheap labour not possible (min R27 , 58/hr)
break of 60mins after Surs
March 2024
·
increased labour costs ·
up to 6 weeks paid sick leave in
·
non-compliance penalties In 36 month cycle
don't
employ under age of IS
admin
·
·
burden costs
Sundays3 public holidays
.
double
pay
· on
2x
PROVISIONS OF BCEA (just know headings)
Ordinary
·
WORK HOURS ·
LEAVE
S
45hrs/week max
21 consecutive days/year
ANNUAL
.
1 day / 17 days worked
ahrs/day week
in S day ↓ ur/ 17 his worked
Shrs/day 6
day week
night work (6pm -
Gam) must Sick
& 6 weeksIn 36 months
·
be compensated medical certificate if freq Absent
regulation of
OVERTIME
E Pregnant
·
: < consecutive months
must agree to work overtime MATERNITY
4 weeks before expected birth
·
3hrs/day max
from birth
.
FAMILY
&
Paternily leave =
10 days
·
lohrs/week max
RESPONSIB
.
3-5 days / year In event of death
compensation
.
require reasonable proof
Weekdays & Satuday XI S
-
,
regulation of
Sundays 3 public holidays2
-
· PUBLIC HOLIDAYS Retrench
Resin
regulation
·
REST PERIODS x2 rate
·
60mins after 5 continuous his
TERMINATION OF EMPLOYMENT - Dismiss
Daily 12 continuous his
·
rest of
I week notice if 26 months
weekly rest of 36 contin his employed
·
-
·
.
including Sundays < weeks notice It employed 11 year
·
PROHIBITION OF EMPLOYMENT
·
Written notice
of children (15) AND forced labour retrenchment = 1 week severence/1 year
, compensation I heath3 safety/claims / compensation fund levies
.
5 COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (COIDA)
>
-
employees who were injured/contracted diseases have right to claim compensation
PURPOSE
·
Provides compensation to employees ACTIONS CONSIDERED NON-COMPLIANT
Injured/contract disease on job
preventing employees reporting accident
·
creates framework for acceptable ·
false info
employment practices a safety · not contributing to compensation fund
regulations. ·
disallowing claims
deducting from COIDA from employees salary
IMPACT
·
OF COLDA ON BUSINESSES
Adv
CONSEQUENCES OF NON-COMPLIANCE
Promotes safety workplace in ·
fines/penalties
employees don't contribute
pay recovery costs to compensation fund
·
employers pay monthly amount to bus brought
·
·
.
to courts
compensation fund imprisonment
·
WAYS BUSINESSES CAN COMPLY
·
compensation tax exempt
provide safe work environment
employees compensated Anancially ·
equip. 3
ensure good condition
DisAdv
·
machinery in
·
report Incidents
claiming process time consuming Pay levies to Compensation fund
·
·
·
expensive Implimentation process
·
claims within 12 months of accident
·
admin burden -
paperwork expensive
·
employers pay negligence fines
NOR/ discrimination / non-paying customers/bad
. NATIONAL CREDIT
7 ACT (NCA) debts
protect against unfair , by business
>
-
To consumers reckless credit grants
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
Prevents discrimination
·Refusing credtCharging
and ensures diff interesa
credit is available to all consumers
consumers know contents of credit contract customers without effort to
Blacklisting
·
·
·
promote fair , competitive credit market recover debt
IMPACT OF NCA ON BUSINESS CONSEQUENCES OF NON-COMPLIANCE
Adv
repay credit
·
·
protects against non-paying consumers fine/penalty charged by Nat Credit Regulatory .
· lower bad debts better cash flow
· credit process transparent WAYS BUSINESSES CAN COMPLY 2013
·
Authorised credit providers attract custom . Obtain credit records of clients before
granting loans
DisAdv
·
disclose all costs of lan
fewer customers buy on credit (loss of sales)
·
register with NCR (National Credit Regulator)
·
Legal action for non-compliance annual compliance report to NCR
·
admin burden
·
submit
·
expensive paperwork
atime
consuming
yearly compliance report
, inequality/weath gap/corruption /BEE/ prev disadv /Spread weath/affirmative .
. action
6
. BROAD-BASED BLACK ECONOMIC EMPOWERMENT ACT (BBBEEA)
>
- Ensures full economic participation of previously disadvantaged individuals
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
enable wealth to be spread more
failing to implement affirmative action to
·
·
broadly across all population groups
meet BBBff responsibilities
alms at targeting inequality In SA econ. unsuitable people
promoting
·
·
IMPACT OF BBBEE ON BUSINESSES CONSEQUENCES OF NON-COMPLIANCE
·
imprisonment
Adv
Bef Scorecard
·
penalty (fine 10 % annual turnovers
·
can be rated high on
·
Bus Licenses not renewed
of business
.
↳:
Improve image
·
complying can increase share prices NB WAYS BUSINESSES CAN COMPLY
demands redress of
inequality
·
Appoint "black" ppl in managerial positions
Implement affirmative action
·
bus Shows commitment toward
sell shares to "black" people
.
·
economic dev of country Bef compliant suppliers
outsource to
.
·
DisAdV
lead to corruption/
Bet BBBEE
·
processes can
nepotism if not monitored properly (not enforced) act (must be enforced
policy an
·
·
gov .
have to go through process of Benefts
·
Benehls wide group of
·
few prev a
having BBBEE compliance measured
.
disadvantaged groups prev .
disadvantaged
assessed
annually pillars (incl
.allSecra
5
3 pillars
·
·
processes costly ->
legal requirements . few share econ ·
wealth spread weath broader
FIVE PILLARS MOESS 2023 spectrum society
① MANAGEMENT CONTROL ③ENTERPRISE AND SUPPLIER DEVELOPMENT
appoint black females in managerial posit .
identify black owned suppliers
·
Invest in black owned SMMAs
LIMITATIONS : ·
outsource services to BBBEE compliant suppliers
of skilled black managers
·
shortage LIMITATIONS :
penalised for non-compliance businesses forced to choose from smaller
pool of suppliers
②OWNERSHIP small businesses not BBBEE compliant lose business
include black ppl
·
· in
shareholding
·
create opportunities for black ownership
LIMITATIONS : & SKILLS DEVELOPMENT
-
difficult to locate black bus Partners .
·
contribute 1 % payroll to skills dev programmes ,
?
as
many black ppl can't afford shares ·
engage black employees in skills dev initiatives .
provide learnerships to black employees
⑤ SOCIAL RESPONSIBILITY
LIMITATIONS
contribute to CSI projects
environmental awareness
productivity compromised
LIMITATIONS
·
bus lack of .
expertise/knowledge of
Societal issues : wastage of financial
resourcesIf not investigated correctly
BUSINESS PI NOTES 2024 Chr (150)
I
Asia Yarlett A 10 (30)
Ihr
B
is a
o
.
Ihr
Santos
,20May
se
, ORIGINALITY :
- Sterkinekor restructuring and downsizing with start cuts and cinema closures
Jamesshe is
-Massmartclosing
down many underperforming
BUSINESS STRATEGIES
-
shoprile & checkers were competitors , shoprite acquired checkers chain (Integration)
ENVIRONMENTS -
Eskom retrench white workers race based targets
,
-
Eskom problem solving : restructuring framework , but scared of Trade Unions
-
Frame Leisure , owner of cross trader to be liquidated
NS2 2024 !
I
STRATEGIC MANAGEMENT PROCESS : STEPS IN STRATEGY
STRATEGY :
-review vision a mission stalement EVALUATION 2023
long term plan
tools : SWOT/PESTLE
-
examine bases of strategy
of action to
-
environment analysis -
look forward 3 backward
achieve Formulate Strategy (defensive/retrenchment)
goal e implementation process
-
-
Implement action plan (template ( -
compare expected outcomes
that will resultthe in achievement
-
Evaluate to take corrective action of business goals .
-
corrective action
-
ser dates for follow up
-
table of adv disadv
ANALYSIS TOOLS/ ENVIRONMENTAL
.
INDUSTRIAL SCANNING TOOLS
MICRO
MACRO
SWOT ANALYSIS
Internal Weaknesses PESTLE ANALYSIS
Strengths
micro SOLUTIONS TO CHALLENGES :
① Political CHALLENGES :
external Opportunities Threats
government policies
&
research recent gor policies
- -
market
.
consumer rights org
macro network b lobby with NGO's
-
. -
Trade agreements with far trade
-
Trade with countries
National Competition
- .
MARKET -
essay Q agreements (imports)
PORTER'S FIVE FORCES policy of S . A
.
2023
1 power of suppliers ② Economic -
decr pront margin instead of incr price
1
,
influencing prices -
Inflation/Interest rate
money financial institutions w
-
no
-
borrow
-
suppliers -
loan rales
& Fayeradberorea
-
quality Foreign currency
-
-
reliability
③ Social
11 Power of Buyers -
customer afford due
-
influencing prices to income levels -
learn local lang
bulk
.
language customers
-
-
conduct market research
crime race accent ons
-
-
get info
lang
.
& more
-
noo
buyers ① Technological
buyers reliability on bus
!
-
keep up latest continuous research
.
-
-
skilled train
III Power of competitors employees existing employees
-
-
to operate -
compare price new equip
-
similar products - afford newlech
for
-unique - online transactions
-
year bus .
online/e-commerce
-
noo competitors
-
price wars (sell & loss
⑤ Legal
-
until competitors leave
-stepanoperangrenums
-
Acts
IV Threat of substitutes
-
Legal requirem
Subs qual peace trademark )
-
unique
-
satisfying
same needs ⑥ environmental
for same consumer
&
-
chemical ingredients
-
clearly indicate
ingr.
V Threat of new entrants -
dispose expensive -
cost effective disposal measures
ease of entrance (barriers)
packaging environ Implement recycling,
- -
-
how profitable bus
-
is .
type friendly/recycleable prevent pollution
-
capital needed for start-up
few suppliers many buyers
-
,
, TYPES bus Combines/takes over distributors
BUSINESS STRATEGIES
-
.
mmm
-
expansion to gain control
over direct distribution
D INTEGRATION STRATS I
Distributor
-
Incr
profitabinly as No
intermediary
↑
.
HORIZONTAL
-
bus Combines/takes
.
competitor FORWARD VERTICAL :
over in un
same industry whe Business
-
aim to reduce threat -
bus .
Combines/takes over
suppliers
BACKWARD VERTICAL : -
of competition/subshtutes
Incr market share/sales
↓ Aims at decr. dependancy supplier
on
-
.
suitable for franchised bus
Wit suppler -
curs costs ,
have influence over
-
.
price , quality gty ,
raw makenals
growth
②INTENSIVE STRATEGIES PRODUCT MARKET
@ low price
MARKET
ADV OF INTENSIVE STRATS
.
PENETRATION existing existing ·
gaining market share by
to Incr sales
- Incr . market share
to
reduces p M reducing prices
Vulnerability competitors
Incr Sales ; Income ; progr existing new
finew
-
MARKET
.
way
as
·
market
more control over ↑
prices DEVELOPMENT
-
-
customer loyalty
↓ prices. ↑ sales
existing
-
:
PRODUCT new
eliminates competitors is
Bus generatenewde
-
DEVELOPMENT p M
·
- enables bus to focus research . Product
on customer needs Dev
- new product
③ DIVERSIFICATION
T
ESTNG CUSTOMER o
STRATEGIES Add new product that
ADV . OF DIVERSIFICATION
related to existing products,
3 bus Growth
·
incr sales CONCENTRIC
related newwillappealtonewcu.f
-
.
.
-Improvebus brandimage
P-- P
one product unrelated to
·
existing prod
products sold &
,
more More
unrelated existing but will appeal to
existing cust
IGRIZONT AL
-
markers established with
merges/aquisitions C occurs
-
Diversification into industries
can create
economic
balance during
fluctuations
petp
"mix"
unrelated new
unrelatedto existing prostomers
CONGLOMERATE bus
growsInto new product
Incr ourput
·
Input remains p
,
-
C
as
,
can use one factory ↳ markets
④ DEFENSIVE STRATEGIES
⑤ OTHER STRATS
RETRENCHMENT :
-
Terminating employment contracts for operational reasons Company can reposition belf by :
departments employees redundant
revising mission objectives
certain some
closing
- : ·
DIVESTITURE :
assets longer protrable with slow
growth
devising new policies
selling some no
-
issue stock to raise Capital
·
selling ownership : dear no shareholders
-
(divesting)
.
-
pay debts by selling assets ! With
drawing ,investmen
ens
·
dev .
performance incentives
LIQUIDATION :
pay creditors)
to replace individuals
Cinability
-
selling to pay off debts due to lack of capital
All assets
reallocate resources
entire business to pay shareholders fair
·
selling
-
-
creditors apply for forced liquidation to settle claims ·
additional salespersons
-
apply for "business resue" to avoid liquidation
, ENVIRONMENTS 18th April 2023 NUMSA Went on Strike , Treatstar
originality :
·
locked them out
IMPACT OF RECENT LEGISLATION · Eskom problem
solving : restructure framework
but has fears of trude unions
·
Eskom fights allegations of race-based larges retrench
· Parliaments unethical secret Salary increase 2023 white maintenance workers
Ost 70 %
· Redbull will pay $10 to disappointed customers that didnt get "Wings" /didn't meet expectations
ing 500
1. SKILLS DEVELOPMENT ACT (SDA) Learnership /1 % SDL/ productivity/SETA
>
-
Improve skill level of people already employedIn business
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
Develops skills to improve productivity ·
preventing learnerships due to age or posit.
·
unfair promotion of skills dev.
·
redresses Imbalances of past through false info in documents
education and
·
training not skills per
paying levy
·
illegal practices
IMPACT OF SDA ON BUSINESS
CONSEQUENCES OF NON-COMLIANCE
Adv ~
bus not claim grants from SDA
.
May
business globally competitive ~: Far
productivity inspector order bus To stop operating
Improve
.
workplace active learning = environ WAYS BUS CAN COMPLY .
of skilled workers Provide all employees with
opportunity for skills dev.
·
increase number
In areas where scarce Encourage all employees to participate In
learnerships
Dis Adv
·
Asses skills of employees to determine areas where
·
pay 1% Salary where skills development needed
paperwork/admin costs
·
who collect PAYE with SETAs
of spa hard to
·
employers register
implimentation ↳ 1%
Payroll to SETA
pay
monitor 3 control
learnerships during work his
: affect productivity
· time a money spent will be wasted FUNCTION OF SETAS :
If employee leaves (Sector Education Training Authority
BROADER
support Implementation of SDA
(NahonaSkls
·
PURPOSE Of NSDS ·
allocates pay our grants
·
incr . access to training programmes promote 3 establish learnerships
·
address low Ivl of lang 3 .
math skills ·
provide training material 3 programmes
·
guides work of SETAS for skills dev facilitators .
·
Incr . skills in public sector
SMAILER (workforce FUNDING OF SETAS 2023
PURPOSE OF HRDS (thumanResourcesa SDLevy , paid by employers to SARS
↳ R500 0002 salary per annum pay 1 % levy
:
address skillsshortage in SA workforce
·
· from donations/grants received from public
Develops Short 3 long term work skills Funds from rendered
·
·
services
·
reduces poverty levels ·
CSI programmes
employee lifelong learning LEARNERSHIPS
A contract between learner , employer and
·
a
training providers for a specific period that
leads to the acquisition of a national
qualification
, Trade unions/strike/workplace forom/rights
. LABOUR
2 RELATIONS ACT (LRA) labour dispute /C2MA/ relation ships
>
-
promote simple procedures for resolution of labour disputes in workplace
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
·
promotes (trade union (
·
unfair dismissal of
employees
collective workplace
-
bargaining in ·
preventing employees
- fair labour practice joining trade unions
-
-
workplace forums -
participating in strikes
-
establish <CMA (dispute resolution) -
establishing workplace forums
·
Provides
-
right to lawful lock-outs
CONSEQUENCES OF NON-COMPLIANCE
framework for labour relations
financial costs CCMA feesa fines
-
·
:
·
forced to enter dispute resolution process
IMPACT OF IRA ON BUSINESS
Adv WAYS BUSINESSES CAN COMPLY
·
promoteshealthy relationships between ·
fair dismissal
employer 3 employee ·
support/allow
·
protects rights of bus . In labour issues -establishment of workplace forums
·
labour disputes settled quicker -
participation In trade Unions
& less expensive -
legal strikes
provides specific guidelines
on fair discipline procedures
Dis Adv RIGHTS Of
EMPLOYERS 2023
·
legd) strikes incr cost of labour
·
strikes decr. productivity
·
lock-outs for Illegal strikes
... reduced global competiveness dismissal for Illegal strikes
·
·
trade union activities In work time not to
pay when stake (no work ,
nopay)
to form employer organisations
employees take adv Of strikes (bargaining
·
·
.
councils
EMPLOYEE
·
join trade union
·
embark in
legal strikes
·
refer unresolved workplace disputes to CCMA
INSIDE
WORKPLACE ·
trade union representatives take reasonable
time off to attend duties.
0
↑
bargaining- employee > Trade
·
establish a workplace forum
council / employer
union
employer org. grievance
↓
workplace
forum
CCMA : Commission for conciliation,
↓ Mediation and Arbitration
CCMA
↓
Labour Court
, Affirmative action/Diversity/Demographics/
3
. EMPLOYMENT EQUITY ACT (EEA) RedressInequality / equal work equal pay
>
-
Ensure equal job opportunities given to all regardless of
↓
PURPOSE 2023 ACTIONS CONSIDERED NON-COMPLIANT
equal work , equal pay Denying employment / unfair treatment based on :
eliminate discrimination of
&
gender
·
-
gender ; race ; disability -
race
promote equal opportunity culture
(Discrimination)
-
↳ fair treatment -disability
promotes diversity -
religion
- Impliment aftimitive action language
-
·
equal representation of CONSEQUENCES OF NON-COMPLIANCE
population groups ·
fines
employment equity plan pay compensation to employee
·
bus .
brought to Labour cours
IMPACT OF EEA ON BUSINESS labour inspectors may investigate
Adv
promotes implementation of affirmative WAYS BUSINESSES CAN COMPLY
action to redress inequalities of past
workforce
implement employment equity plan
·
ensures represents implement affirmative action measures
demographics of country ·
clearly define appointment process
impact + on BEE ratings asses racial composition of all employees
·
·
·
motivates employees by Inclusivity regularly report progress on plan to
Department of Labour
·
Appointment process clearly outlined workforce represents
·
ensures
DisAdv demographics of country
· fines for non-compliance
·
diversity may lead to conflict
·
increased admin burden lequity reports every 2yrs)
·
may be pressurised to appoint
unsuitableef person to meet requirm .
, Min . rea .
employment/contract
4. BASIC CONDITIONS OF EMPLOYMENT ACT (BCEA)
>
-
sets our minimum standard for employment In order to promote fair labour practice
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
·
Provides clear terms and conditions preventing employees
of employment - access to employment contracts
sets min .
requirements for employment discussing
-
salaries/ wages
contract ·
Refusing
-
valid medical certificale
IMPACT OF BLEA ON BUSINESS -
family responsibility leave for sick family
Adv
CONSEQUENCES OF NON-COMPLIANCE
·
creates clear framework of acceptable ·
fines
employment practices
↳ work his specified pay compensation to employee
·
Promotes fair treatment of employees ·
bus .
brought to Labour cours
sets min requirements for labour inspectors may investigate
employment
·
.
contract
guidelines on employment issues WAYS BUSINESSES CAN COMPLY
workers should only work :
DisAdv
-
aurseyday In S
day week
week
-
Ohrs/day in 6 day
exploitation Illegal
·
·
overtime can't exceed 10hrs/week
: work his limited (4Shrs/week)
·
cheap labour not possible (min R27 , 58/hr)
break of 60mins after Surs
March 2024
·
increased labour costs ·
up to 6 weeks paid sick leave in
·
non-compliance penalties In 36 month cycle
don't
employ under age of IS
admin
·
·
burden costs
Sundays3 public holidays
.
double
pay
· on
2x
PROVISIONS OF BCEA (just know headings)
Ordinary
·
WORK HOURS ·
LEAVE
S
45hrs/week max
21 consecutive days/year
ANNUAL
.
1 day / 17 days worked
ahrs/day week
in S day ↓ ur/ 17 his worked
Shrs/day 6
day week
night work (6pm -
Gam) must Sick
& 6 weeksIn 36 months
·
be compensated medical certificate if freq Absent
regulation of
OVERTIME
E Pregnant
·
: < consecutive months
must agree to work overtime MATERNITY
4 weeks before expected birth
·
3hrs/day max
from birth
.
FAMILY
&
Paternily leave =
10 days
·
lohrs/week max
RESPONSIB
.
3-5 days / year In event of death
compensation
.
require reasonable proof
Weekdays & Satuday XI S
-
,
regulation of
Sundays 3 public holidays2
-
· PUBLIC HOLIDAYS Retrench
Resin
regulation
·
REST PERIODS x2 rate
·
60mins after 5 continuous his
TERMINATION OF EMPLOYMENT - Dismiss
Daily 12 continuous his
·
rest of
I week notice if 26 months
weekly rest of 36 contin his employed
·
-
·
.
including Sundays < weeks notice It employed 11 year
·
PROHIBITION OF EMPLOYMENT
·
Written notice
of children (15) AND forced labour retrenchment = 1 week severence/1 year
, compensation I heath3 safety/claims / compensation fund levies
.
5 COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (COIDA)
>
-
employees who were injured/contracted diseases have right to claim compensation
PURPOSE
·
Provides compensation to employees ACTIONS CONSIDERED NON-COMPLIANT
Injured/contract disease on job
preventing employees reporting accident
·
creates framework for acceptable ·
false info
employment practices a safety · not contributing to compensation fund
regulations. ·
disallowing claims
deducting from COIDA from employees salary
IMPACT
·
OF COLDA ON BUSINESSES
Adv
CONSEQUENCES OF NON-COMPLIANCE
Promotes safety workplace in ·
fines/penalties
employees don't contribute
pay recovery costs to compensation fund
·
employers pay monthly amount to bus brought
·
·
.
to courts
compensation fund imprisonment
·
WAYS BUSINESSES CAN COMPLY
·
compensation tax exempt
provide safe work environment
employees compensated Anancially ·
equip. 3
ensure good condition
DisAdv
·
machinery in
·
report Incidents
claiming process time consuming Pay levies to Compensation fund
·
·
·
expensive Implimentation process
·
claims within 12 months of accident
·
admin burden -
paperwork expensive
·
employers pay negligence fines
NOR/ discrimination / non-paying customers/bad
. NATIONAL CREDIT
7 ACT (NCA) debts
protect against unfair , by business
>
-
To consumers reckless credit grants
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
Prevents discrimination
·Refusing credtCharging
and ensures diff interesa
credit is available to all consumers
consumers know contents of credit contract customers without effort to
Blacklisting
·
·
·
promote fair , competitive credit market recover debt
IMPACT OF NCA ON BUSINESS CONSEQUENCES OF NON-COMPLIANCE
Adv
repay credit
·
·
protects against non-paying consumers fine/penalty charged by Nat Credit Regulatory .
· lower bad debts better cash flow
· credit process transparent WAYS BUSINESSES CAN COMPLY 2013
·
Authorised credit providers attract custom . Obtain credit records of clients before
granting loans
DisAdv
·
disclose all costs of lan
fewer customers buy on credit (loss of sales)
·
register with NCR (National Credit Regulator)
·
Legal action for non-compliance annual compliance report to NCR
·
admin burden
·
submit
·
expensive paperwork
atime
consuming
yearly compliance report
, inequality/weath gap/corruption /BEE/ prev disadv /Spread weath/affirmative .
. action
6
. BROAD-BASED BLACK ECONOMIC EMPOWERMENT ACT (BBBEEA)
>
- Ensures full economic participation of previously disadvantaged individuals
PURPOSE ACTIONS CONSIDERED NON-COMPLIANT
enable wealth to be spread more
failing to implement affirmative action to
·
·
broadly across all population groups
meet BBBff responsibilities
alms at targeting inequality In SA econ. unsuitable people
promoting
·
·
IMPACT OF BBBEE ON BUSINESSES CONSEQUENCES OF NON-COMPLIANCE
·
imprisonment
Adv
Bef Scorecard
·
penalty (fine 10 % annual turnovers
·
can be rated high on
·
Bus Licenses not renewed
of business
.
↳:
Improve image
·
complying can increase share prices NB WAYS BUSINESSES CAN COMPLY
demands redress of
inequality
·
Appoint "black" ppl in managerial positions
Implement affirmative action
·
bus Shows commitment toward
sell shares to "black" people
.
·
economic dev of country Bef compliant suppliers
outsource to
.
·
DisAdV
lead to corruption/
Bet BBBEE
·
processes can
nepotism if not monitored properly (not enforced) act (must be enforced
policy an
·
·
gov .
have to go through process of Benefts
·
Benehls wide group of
·
few prev a
having BBBEE compliance measured
.
disadvantaged groups prev .
disadvantaged
assessed
annually pillars (incl
.allSecra
5
3 pillars
·
·
processes costly ->
legal requirements . few share econ ·
wealth spread weath broader
FIVE PILLARS MOESS 2023 spectrum society
① MANAGEMENT CONTROL ③ENTERPRISE AND SUPPLIER DEVELOPMENT
appoint black females in managerial posit .
identify black owned suppliers
·
Invest in black owned SMMAs
LIMITATIONS : ·
outsource services to BBBEE compliant suppliers
of skilled black managers
·
shortage LIMITATIONS :
penalised for non-compliance businesses forced to choose from smaller
pool of suppliers
②OWNERSHIP small businesses not BBBEE compliant lose business
include black ppl
·
· in
shareholding
·
create opportunities for black ownership
LIMITATIONS : & SKILLS DEVELOPMENT
-
difficult to locate black bus Partners .
·
contribute 1 % payroll to skills dev programmes ,
?
as
many black ppl can't afford shares ·
engage black employees in skills dev initiatives .
provide learnerships to black employees
⑤ SOCIAL RESPONSIBILITY
LIMITATIONS
contribute to CSI projects
environmental awareness
productivity compromised
LIMITATIONS
·
bus lack of .
expertise/knowledge of
Societal issues : wastage of financial
resourcesIf not investigated correctly
