Poverty in South Africa

1.10.4 Poverty in South Africa

There is direct relationship between level of education and poverty in South Africa. People with low levels of education are much more likely to be poor than those with higher qualifications. A survey revealed that poverty affected 66.3% of those who had no schooling and 59.9% of those who had not completed primary schooling. By contrast, poverty was rare amongst those who had obtained a post-matric certificate or diploma/degree: in these groups the poverty rates were 4,6% and 1,2% respectively. South Africa, with its desperate need to overcome poverty and improve the standard of living of its citizens, can be successful only if it improves its level of management skills and accepts the challenges that face management in its entire organisation.

Review questions

Question One Essay Type Questions

1.1 Identify the nature and size of organisations which typify the scope of management in different industries as well as provide their principle objectives.

1.2 In less than 600 words, describe what the job of a general manager of a medium-sized hotel entails.

Question Two

Read the case study below and answer the questions that follows:

South African Breweries (SAB) price rule ‘sank my business’

A former wholesaler of SAB products told the Competition Tribunal Yesterday that his business failed after just four months because he did not know beforehand he would be have to buy beer at the same price as his intended customers.

Gerrie Mofokeng opened a warehouse in Springs in October 2005. It closed in February 2006, after he had spent about R1.3m on stock and sold it at cost to move the product, he said. Mr Mofokeng said in response tom questioning by Competition Commission advocate Richard Mkhabela that he became aware SAB gave all independent distributors the same price on stock only after opening his business.

`I had a huge problem when I started this business. When I got to buy stock at SAB, I was buying with the retailers, the people I must sell to. When I wanted to make a mark-up, it was not possible,’ he said.

His table of a would-be entrepreneur, who failed on business, rather than anticompetitive grounds, seemed to do little to advance the Competition Commission’s argument that SAB

benefits a chosen group of so-called appointed distributors at the expense of independents. Mr Mofokeng had worked in the liquor business of Metro Cash & Carry for 30 years. Under questioning by SAB advocate Paul McNally SC, he gave the impression that he had counted on the relationships built up during that time to draw customers, even though there were suppliers closer to Kwa Thema township, the largest local market.

Having obtained the distributor licence, rather than the retail one that would allow him to sell beer to shebeens that accounts for 40% of the beer drunk in SA, and unable to compete effectively with distributors that sold a wider range, Mr Mofokeng was left without a viable business. He wrote to SAB managing director at the time, Tony van Kralinger, in February 2006 requesting a better price, but was told he would not get one.

Source: http//: www.businessday.co.za/articles/Content.aspx?id=118315

Case study questions

2.1 Based on the information provided on the case study above, would you consider Mr Mofokeng a good manager? Provide reasons for your answer.

2.2 What plan should Mr Mofokeng have had in place in order to ensure that his business survived in the long term?

2.3 If you were Mr Mofokeng, on which key performance areas would you have focused in the first few months to ensure that the business survived?

2.4 Despite the pricing issue discussed in the case study, how could Mr Mofokeng have created a competitive advantage for his business?

Question Three: multiple choice questions

3.1 Managers are responsible for utilising the scarce resources of an organisation, namely ________to ensure that the organisation reaches its goals.

A. Peoples

B. People, finance and information

C. Finance

D. People, finance, physical resources, information

3.2 Managers are responsible for _______.

A. The physical production of the products

B. Planning, organising, and leading

C. Ensuring that the organisation makes profit in the short term

D. Planning, organising, leading and controlling

3.3 Planning, organisation, leading and controlling are called ____________.

A. Managerial roles

B. Management functions

C. 1 and 2

D. None of the above

3.4 First National Bank has decided to close down its non-profitable branches in the Limpopo and Mpumalanga provinces. This is an example of a __________ decision.

A. Strategic

B. Tactical

C. Operational

D. Policy

3.5 How many of the following statements are correct:  Only managers at top management level plans, organise, lead, and control

 Middle managers need conceptual, interpersonal and technical in skills order to manage professionally  First-line managers are also called supervisors  The dominant skills needed by a middle manager are interpersonal skills

A. One

B. Two

C. Three

D. Four

3.6 Segmenting the market, targeting specific market segment and positioning the organisation are responsibilities of the __________ manager.

A. Public relations

B. Operations

C. Marketing

D. General

3.7 Despite the managerial functions for which managers are responsible, Mintzberg has also identified certain roles that they must fulfil. These roles_____________.

A. Planning and interpersonal roles

B. Negotiating and information sharing

C. Interpersonal, decision-making and information sharing

D. None of the above

3.8 The latest NQF comprises ________ levels.

3.9 `Electricity is available to everyone, everywhere, anytime’ is an example of a ________________.

A. vision statement

B. mission statement

C. strategy

D. policy

3.10 We produce the lowest-cost electricity to people of Southern Africa through our extensive

infrastructure’ is an example of a______________.

A. vision statement

B. mission statement

C. strategy

D. policy

Question Four

Short Questions

4.1 Briefly explain the role of business organisations in a market-driven economy.

4.2 Explain to a non-manager what management encompasses by focusing especially on the management functions.

4.3 Describe the difference between strategic, tactical and operational planning.

4.4 Briefly discuss five major challenges faced by managers in South Africa.

4.5 Indicate the differences between conceptual, interpersonal and technical skills.

TOPIC 2