This poverty affects health, the general stability of life, the development of society and the economy of the country in general. It is estimated that more than two-thirds of the population will live in urban areas within the next generation.
BACKGROUND
MOTIVATION
VALUE
PROBLEM STATEMENT
Traditionally, urban planning in most developing countries mainly involved so-called "master planning". Basically, master planning was primarily about creating a blueprint for how the city might look at some point (usually 20 years from now) in the future, but they became international researchers, planners, policy makers, strategists and related agencies. increasingly concerned about several fundamental flaws in master planning (Urban Foundation, 1993).
OBJECTIVES
The globalization of the economy, rapidly improving technology, the exodus of people from rural to urban areas, the shift from artisanal work to the stage of affluent society, vertically integrated multinationals and an increased focus on delivering customer value have significantly increase competition in the market. virtually all markets. Finding the impact of economic strategy on the development of the city's economy.
RESEARCH METHODOLOGY
This model will be used to recognize whether the strategy addresses the problem of competition against other cities in the market. This will be used to see if the strategy has improved the upstream and downstream of service delivery in the city.
LIMITATIONS
STRUCTURE OF THE DOCUMENT
SUMMARY
It looks at the corporation as a whole and tries to explain why some firms develop and prosper while others stagnate and go bankrupt. If no changes are made, where will the corporation be in one year, two years, five years and ten years.
DEFINITION OF TERMS
Development
This can only occur if growth is allowed to go through a series of successive structural transformations of the system. Burkey (1982:35) noted that development is a process of change characterized by increased productivity, equalization in the distribution of the social product and the emergence of indigenous institutions whose relations with the outside world are through equality rather than through dependence or subordination is characterized.
EVOLUTION OF STRATEGY
The discipline of economics is concerned with the use of available productive resources in a society to meet what are often conflicting desires and demands. Economics is concerned with choices - with the evaluation and selection between alternatives, realizing that every time we make a choice, we are also giving up an opportunity.
THE VALUE OF STRATEGY IN A FIRM
Strategy in a firm is important because it deals with fundamental issues that guide the direction of the firm. When the firm makes mistakes in the strategy formulation process, the firm will face problems that may cause the firm to fail to survive.
STRATEGY IS EVERYONE'S BUSINESS IN A FIRM
It is essentially part of the learning that takes place in an organization and a way of synthesizing the creative energy and knowledge of people at all levels (Karlof, 1987). Another important step is to distribute the planning work of management to others in the organization.
CORE AREAS OF STRATEGY
Internal environment
Strategic planning and decision-making cannot be successful at company level without an in-depth understanding of the strategic factors in the company. The company's mission sets the parameters for the specific goals top management chooses to achieve.
SUMMARY
In essence, this means that the city must align its local government system, organization, strategy, budget and implementation programs with those of other spheres of government, and vice versa. As an organization, the city must ensure equality in the labor market and improve the organizational culture, skills and capacity of councilors and staff.
BACKGROUND
Ethekwini Municipality's urban forms and functions are directly linked to the structure of the economy, economic inequalities and the extent of poverty. Urban poverty in the last century increased for those at the bottom of the class structure, especially in light of the new divisions that opened up within. The level of urbanization and the concentration of the urban population in the major metropolitan areas make urban development issues particularly important to the government.
Changes in the global and national economies, the policies of national and provincial governments, the lending policies of the commercial and development banks, and.
THE CHANGING ECONOMY OF DURBAN
Industrialisation, modernisation and racial segregation 1910 to the 1970s
The First World War and the introduction of customs, gave impetus to industrial growth in the city. The foundations of metal, engineering and chemical industries were laid and later supported by the introduction of the city's first oil. By 1959, planned industrial areas had been occupied in the southern, western and northern parts of the city.
The city entered its golden age of manufacturing growth in the 1960s, mostly by import substitution.
Signs of trouble - 1970 to early 1990
Tourism also experienced a boom along with the expansion of the white middle class after World War II. Although Durban's industrial sector had significant links with the Witwatersrand, by 1989, 38% of Natal's industrial output was forwardly linked (in the first phase) to Durban-Pinetown and Pietermaritzburg. By the late 1980s, tourism began to decline as the Witwatersrand's traditional inland markets, and the Orange Free State no longer found Durban's multicultural profile to their liking (www.durban.org.za).
The transport sector reflected the port's central role in the local economy, as well as the link between Durban.
KEY STRENGTHS OF THE CITY
- Location
- Local government
- Strong civil society
- Multi-cultural
- Small business
- Environment
The quality of transport links to the Witwatersrand and other industrial areas in the province. By the late 1970s, a number of international firms had a presence in the city, including Toyota, Shell and BP. The disenfranchised in Durban showed great resourcefulness in the face of oppression and discrimination.
Democracy was taken very seriously in the organized resistance against the apartheid state, which was expressed in various forms, especially in art, music, literature, drama and business.
THE CHALLENGES FACING THE CITY
- High unemployment
- Foreign investment
- Business constraints
- Lack of a common business vision
- Gap between rich and poor
- HIV I AIDS
- City economic development plan
- Signs of innovation
This enhances the natural beauty of the city and has important implications for tourism (www.durban.gov.za). The growth of these companies has been slowed by constraints such as lack of access to finance and traditional corporate and public sector procurement practices. Durban is well placed to achieve this, having inherited a large urban police force that complements the work of the South African Police Service (www.durban.gov.za).
Within Durban, recent data indicate that there have been major shifts in the structure of the economy due to changes in the macroeconomy.
TRENDS IN EACH OF DURBAN'S MAJOR ECONOMIC SECTORS
- Manufacturing
- Tourism
- Work and livelihoods
- Construction
The port has seen an overall increase in the volume of activity following increased openness to the international economy. Durban has the second largest manufacturing base in the country and its performance in generating output and employment is essential to the city's economic success. Tourism adds income at certain times of the year and has helped to significantly increase the annual value of expenditure in the city (www.thedti.gov.za).
Activity levels in the national construction industry reached record lows by the end of the century.
ECONOMIC DEVELOPMENT STRATEGIC DIRECTION
Cooperative enterprises with other spheres of government and stakeholders to facilitate new development opportunities for the sector (Integrated Development Plan, 2003). There are many challenges that the city is currently facing, such as rural development, combined municipalities, political economy, population growth and poverty. Poverty is the sole burden of South Africa's cities and is the direct result of poor resource management.
INTRODUCTION
THE CURRENT ECONOMIC SYSTEM
- The competitive position (Porter)
- Government
- The SWOT analysis
- PEST analysis
- Political
- Economic
- Social
- Technological
- Gap analysis
- Performance gap analysis
ATTRACTIVENESS Number of jobs in the sector Quality of jobs (average wage) Size of the sector (output) Growth. Analysis of the economic environment focuses on changes in the macro economy and their effects on business and consumers. This is a first phase technique that gives the managers a feel for the size and nature of the strategic problem.
Achieving 7% growth requires a major overhaul of the current system.
ASSESSMENT OF SUITABILITY
Life-cycle analysis
The organization's strengths and weaknesses reveal that the city is in a growth phase and is sustainable. The challenge facing the city is to catch up, turn around, grow with the industry and harvest the non-productive growth areas.
Positioning
- Marketing and sales
- Service
The manufacturing area of the city is mostly dependent on other departments for its growth. Each of the above categories will add value to the site in their own way. Some activities such as public procurement, inbound logistics and outbound logistics are not even mentioned in the comprehensive city plan published in June 2003.
The case study reveals the following information about the city's market share and growth rate.
REASONS FOR CITY FAILURES
- Deficiencies in plans and their implementation
- Insufficient and unreliable data
- Unanticipated economic disturbances, both internal and external
- Lack of political will
- Institutional weaknesses
Some of the main explanations for this have to do with the failures of the planning process itself. They are grand in design but vague on the specific policies needed to achieve the stated objectives, and the gap between its formulation and implementation is wide. The economic wisdom of a development plan depends to a large extent on the quality and reliability of the statistical data on which it is based.
Institutional weaknesses include the separation between the planning agency and the organization's day-to-day decision-making apparatus, the inability of planners, administrators, and political leaders to engage in ongoing dialogue and internal communication about objectives and strategies, and the international transfer of institutional planning practices and organizational arrangements that may not be appropriate for local conditions.
SUMMARY
To achieve the objectives, city strategists and planners will need to identify the conditions for a just and satisfying urban environment and how these can be achieved through physical structuring of the city and through policies that enhance the functioning of elements of the urban system will influence. transport, housing, education, health care, employment, trade, etc.) and their interrelationships. Strategists must develop a vision of the city's future so that development can be guided in a way that protects society's valuable resources for future generations, while taking into account the diversity of tastes and values as they are expressed and over the course of the time is changed. Uncertainty exists because of the passage of time between making a decision and its outcome.
Urban strategists must deal with different forces: social, economic and political: at different levels – metropolitan, local and the respective locations themselves – as they influence the equitable and qualitative functioning of the urban system.
IMPOTANCE OF ECONOMIC DELOPMENT STRATEGY IN CITIES The experiences of many cities throughout the developing world show that there are
They need to start marketing the city to the outside world to attract investors and tourists to be a part of the city. Being able to capture more of the value chain than the current situation can improve the economy of the city. The decline of the city's retail sector as part of the country as a whole must be reversed.
This gap can be closed if the city can introduce an Export Processing Zone Policy.
SUMMARY
A vibrant export economy can emerge in the city based on networks of small-scale and informal producers. This option could provide many clues about the potential role of the informal economy in urban economic growth. This article does not suggest that the city should tolerate the informal economy as a way for people to survive; instead, it should actively support and promote entrepreneurial ventures as a way to expand the economy as a whole.
