MNG 3701 MANUAL
1ST SEMESTER 2018
LECTURER: Lynne Addison
UNIT 5
STRATEGY IN CONTEXT: EXPLORING BUSINESS
OPPORTUNITIES IN AFRICA
1
,STUDY UNIT 5
STRATEGY IN CONTEXT: EXPLORING BUSINESS
OPPORTUNITIES IN AFRICA
5.1 LEARNING OUTCOMES:
Explain the institutional environment of Africa in broad terms with specific
reference to the roles of the African Union (AU) and the Southern African
development Community (SADC)
Analyse the external environment relating to Africa as a frame of reference
for doing business in Africa
Identify evaluate and explain the drawbacks and obstacles for foreign
organisations doing business in Africa.
Evaluate and compare the approach to strategy and strategic management
in emerging economies to that in the developed world
Describe suitable strategic approaches and strategies for doing business in
emerging markets in general and markets in Africa and sub-Saharan
Africa in particular
Critically assess and explain the role that governments should fulfil to
improve conditions for doing business in Africa.
Reflection: Levels of strategy in a global context
Since strategies at various hierarchical levels worldwide provide the frame of
reference in which countries, institutions and all types of organisations have to
operate, we need to distinguish clearly between the different levels where these
strategies typically occur. Starting from a global perspective, strategies are
invariably found at the following levels, in descending order:
• at global level, strategies of global or supranational institutions such as the United
Nations (UN), World Bank (WB), International Monetary Fund (IMF), International
Labour Organisation (ILO) and the World Trade Organisation (WTO)
• at continental and regional levels, the strategies of institutions or those emanating
from multilateral or other agreements, such as the African Union (AU), European
Union (EU), North American Free Trade Agreement (NAFTA), Free Trade Area of
the Americas (FTAA), Association of Southeast Asian Nations (ASEAN), the
Association of BRICS countries (Brazil, Russia, India, China and South Africa) and
the Southern African Development Community (SADC)
• the strategies or national strategic development plans of individual countries,
through their governments
• the strategies of state, provincial and local authority entities in a country
• private sector organisations, public sector organisations, state-owned enterprises
(SOEs), nongovernmental organisations (NGOs) and public-private partnerships
(PPPs)
2
, 5.3 INTRODUCTION (2.1 Venter et. Al 2014:21) (Study guide page 123)
The text book states that when considering the African situation and the drive
for a Pan-African approach, it is important to bear in mind that African nations
have been cooperating with regard to a strategy for the continent as a whole.
Wealth creation and the resultant poverty reduction has been identified as a key
gaol and to this end, African nations need to become technologically
competitive.
The study guide page 123 now extends our thinking on strategy and strategic
management to the international arena and accordingly explore the following
broad themes in this regard:
• assessing the external environments for doing business in Africa
• evaluating the institutional environment of Africa as part of the
external environment
• identifying opportunities, threats and constraints for doing business in
Africa
• identifying viable strategies for competing in the African context
Since the concept of strategy in a global context is elusive and difficult to
define, it could manifest itself in different guises at different levels and with
different purposes
in the broader global environment, we attempt to clarify the concept for our
purposes
By defining it in the "Reflection" below in ways that are largely relevant to
and serve as basis for our discussions in this learning unit.
Reflection: Levels of strategy in a global context (Study guide 123)
Since strategies at various hierarchical levels worldwide provide the frame of reference in
which countries, institutions and all types of organisations have to operate, we need to
3
1ST SEMESTER 2018
LECTURER: Lynne Addison
UNIT 5
STRATEGY IN CONTEXT: EXPLORING BUSINESS
OPPORTUNITIES IN AFRICA
1
,STUDY UNIT 5
STRATEGY IN CONTEXT: EXPLORING BUSINESS
OPPORTUNITIES IN AFRICA
5.1 LEARNING OUTCOMES:
Explain the institutional environment of Africa in broad terms with specific
reference to the roles of the African Union (AU) and the Southern African
development Community (SADC)
Analyse the external environment relating to Africa as a frame of reference
for doing business in Africa
Identify evaluate and explain the drawbacks and obstacles for foreign
organisations doing business in Africa.
Evaluate and compare the approach to strategy and strategic management
in emerging economies to that in the developed world
Describe suitable strategic approaches and strategies for doing business in
emerging markets in general and markets in Africa and sub-Saharan
Africa in particular
Critically assess and explain the role that governments should fulfil to
improve conditions for doing business in Africa.
Reflection: Levels of strategy in a global context
Since strategies at various hierarchical levels worldwide provide the frame of
reference in which countries, institutions and all types of organisations have to
operate, we need to distinguish clearly between the different levels where these
strategies typically occur. Starting from a global perspective, strategies are
invariably found at the following levels, in descending order:
• at global level, strategies of global or supranational institutions such as the United
Nations (UN), World Bank (WB), International Monetary Fund (IMF), International
Labour Organisation (ILO) and the World Trade Organisation (WTO)
• at continental and regional levels, the strategies of institutions or those emanating
from multilateral or other agreements, such as the African Union (AU), European
Union (EU), North American Free Trade Agreement (NAFTA), Free Trade Area of
the Americas (FTAA), Association of Southeast Asian Nations (ASEAN), the
Association of BRICS countries (Brazil, Russia, India, China and South Africa) and
the Southern African Development Community (SADC)
• the strategies or national strategic development plans of individual countries,
through their governments
• the strategies of state, provincial and local authority entities in a country
• private sector organisations, public sector organisations, state-owned enterprises
(SOEs), nongovernmental organisations (NGOs) and public-private partnerships
(PPPs)
2
, 5.3 INTRODUCTION (2.1 Venter et. Al 2014:21) (Study guide page 123)
The text book states that when considering the African situation and the drive
for a Pan-African approach, it is important to bear in mind that African nations
have been cooperating with regard to a strategy for the continent as a whole.
Wealth creation and the resultant poverty reduction has been identified as a key
gaol and to this end, African nations need to become technologically
competitive.
The study guide page 123 now extends our thinking on strategy and strategic
management to the international arena and accordingly explore the following
broad themes in this regard:
• assessing the external environments for doing business in Africa
• evaluating the institutional environment of Africa as part of the
external environment
• identifying opportunities, threats and constraints for doing business in
Africa
• identifying viable strategies for competing in the African context
Since the concept of strategy in a global context is elusive and difficult to
define, it could manifest itself in different guises at different levels and with
different purposes
in the broader global environment, we attempt to clarify the concept for our
purposes
By defining it in the "Reflection" below in ways that are largely relevant to
and serve as basis for our discussions in this learning unit.
Reflection: Levels of strategy in a global context (Study guide 123)
Since strategies at various hierarchical levels worldwide provide the frame of reference in
which countries, institutions and all types of organisations have to operate, we need to
3
