The country has huge potential in the beef industry, which can be exported to earn much-needed foreign exchange. If these opportunities are properly utilized, the company will also benefit from generating foreign exchange, which is needed in manufacturing the products.
Problem Statement
This is likely to make the company independent of the Reserve Bank's assistance in securing foreign exchange to purchase ingredients that are not available locally. Chemplex has critical requirements for foreign currency to be able to finance its manufacturing operations that require imported materials.
Research Objectives
Improving efficiency and competitiveness to world-class standards will be very important for Chemplex, as products and production systems will be available in the markets at optimal prices. If Chemplex does not take into account the existence of global competition, its future viability will be at risk.
Research Design
The research questions will have a fully self-introductory cover letter with the necessary contact details for clarification on any question or aspect of the entire project attached. The cover letter will explain the confidentiality aspect of the responses, purpose of the research and the likely benefits of honest responses if the recommendations are implemented.
Permission To Carry Out Research with Chemplex Animal & Public Health Company
The survey involves sending some questionnaires to the managers and supervisory employees who constitute the company's fifteen respondents, to obtain their opinions on the competitiveness and efficiency of their activities and products. The letter was indeed received on March 17, 2006, paving the way for the start of the investigation, and is included as Appendix D.
Envisaged Contribution
Literature Review
Research Methodology
Presentation of Data
Conclusion and Recommendations
The motivation and the intended contributions can only spur the study to move forward with the research work. The study will scrutinize the company's current status in terms of efficiency and competitiveness as well as means of generating foreign exchange.
LITERATURE REVIEW
Introduction
Concept Matrix
Economies of scale
All of the above was analyzed by Porter (1980) on the advantages and disadvantages of economies of scale. If competition is postponed, the firm that competes on economies of scale will build up excess resources that can be used in difficult times.
Technological Developments and Capital Requirements
The study on the future of the telecommunications industry in South Africa by Pieterse (1999) referred to technological developments throughout the industry as having the ability to reshape competitiveness. It will depend on whether a company decides to be a leader or a follower in the technological race.
Outsourcing or Contracting out
Hitt et al (2003) stated that firms must have physical resources and capital to make a successful investment. According to Thongoane (2002) in a study on Telkom's outsourcing strategy, the invention of globalization of markets has put several organizations under great pressure.
Substitute threats
It should be noted that although outsourcing is viewed in this way, care should always be taken when using it, according to Hitt et al (2003). Dreischmeier et al (2005) say that the support and relationship that would arise between companies requires the commitment of employees.
Suppliers and Buyer power
Strategies
Pieterse (1999) in the study of the future competitiveness of the telecommunications industry in South Africa alluded to the main competitors as in mobile phone systems and landline phone systems. The companies compete in the same industry, but their basic network systems are different.
Strategic alliances
The equity position of a strategic alliance implies some investment by one partner in the other company and can be reciprocated. Because both companies would have made gains in this marriage, they will likely be able to stand on their own and compete strategically in the environment again, Overton (1995) continued.
Joint ventures and Mergers
Spoerk (2002) mentioned that the new organization has valuable expertise, financial stability and resources as some of the gains of the merger. Diversification can be achieved by the acquiring company introducing different products to new markets, which could further increase the market share and indirectly supplement the consumption of existing products.
Experience Curve
Government Policy
Chemplex products are subjected to the same selection tests by consumers in the market. Brooks and Morales (2006, p. 7) stated: "The causes of this decline are related to disruptions caused by land reforms, shortages and unaffordable cost of key inputs mainly imported, and the failure of the government to support new farmers on a small scale. with the promised financial and technical assistance.' The report also mentions that other critical service providers such as Air Zimbabwe and other government departments have also been forced to turn to the black market to get much needed foreign currency to keep them in business.
Cost Leadership
The cost leadership strategy can be successfully attacked and the competitive position removed by new entrants, therefore it is not reliable in itself as suggested by Gilbert and Strebel (1990). In the study on formulating a strategy for the engineering department by Hamman (1998) for ISCOR, cost competitiveness was mentioned as the main goal of the company.
Differentiation Strategy
There may be bad practices such as tariffs, bribes, quotas, and legislatures on employment requirements that favor local people, the overall effect of which would affect the cost leadership approach of the global company. Porter's (1980) fear of being stuck in the middle of the two strategies cannot be generalized as it will depend on the technicalities used to implement the strategies. According to Hitt et al (2003), the reason for differentiation is that the product is acceptable to the consumer at a price that is considered reasonable because of the added value that the product offers.
Focus strategy
The technological changes and diverse consumer tastes also required a differentiation strategy to create competitive advantages in the market. The differentiation strategy may not be defensible, but it should be used when comparative advantages can be enjoyed. A company should never rely on it; rather implement the differentiation strategy together with other techniques to achieve a better competitive position, Hitt et al (2003).
Environmental Scanning
The success of the focus strategy is to some extent dependent on the success of cost management and differentiation strategies. Non-availability of foreign currency on the official reserves makes the competitiveness of companies very difficult. The identification of opportunities and timely dissemination of the resource skills is considered the key to a company's success and future development according to Andrews (1980).
Other Factors
Hitt et al (2003) mentioned core competencies as strategic assets a company can have to create competitive advantages over rival companies. According to Brooks and Morales (2006), the Southern African Migration Project reports another dark side of the human resource shortage when it surveyed the attitudes of final year tertiary students in Zimbabwe, with 56% and 70% expected to migrate within six years. months and two years after their graduation. The related and supporting industries are also found according to Porter's Five Forces model (Porter 1985).
Conclusion
Natural resources and factors of production such as land are also issues to consider (Porter 1980).
RESEARCH METHODOLOGY
- Introduction
- Critical Questions Reviewed
- Actual Research Work
- Data Collection
- Questionnaires Approach
- Case Study Techniques
- Conclusion
This group of people will be selected because they are well informed due to the positions they fulfill within the company. The accompanying letter explains the nature of the research and the purpose of the findings. Agreement is reached on the method of distribution to final respondents and confidentiality is emphasized in the accompanying letter.
PRESENTATION OF FINDINGS
Introduction
The responses to the questions were also separately aggregated and weighed separately to prepare them for individual comments on the implications of each point. This was done using percentages and thus provided opportunities for comments in the recommendations and conclusions section of the study. Finally, all responses were plotted in a bar graph to represent the results of the entire survey.
Data Acquired from Case Study of Chemplex
- Porter's Generic Competitive Strategies
- Economies of Scale
- Technological Advancements
- Outsourcing
- Substitute Threats
- Government Policy
- Diversity of Competitors
- Positioning
- Strategic Alliances and ISO Certification
- Foreign Currency
Discussions and available documentation show that the globalization aspect of the positioning was not taken into account at the time of the research. It has also been mentioned that a lack of ISO certification could be part of the poor market penetration of Chemplex's products (Chemplex 2005c). According to the documents, this restriction would cause further underutilization of the installed capacity and thus hinder growth (Chemplex 2005c).
SWOT Analysis Rating for Chemplex
- Strengths
- Weaknesses
- Opportunities
- Threats
Strategic alliances were mentioned and noted as requiring further attention according to Chemplex documents (Chemplex 2005c). The existence of opportunities was cited as essential for exploitation to establish competitiveness in the market according to Chemplex's internal documents. According to the same source, the technological advances in the industry internationally have possible viability problems for Chemplex.
Other Issues
The availability of substitute products according to Porter's Five Forces model (1980) is cited as a threat by Chemplex. According to internal sources of Chemplex documents; the urgency of substitutes, the existence of pirates and imitators have been identified as problems in the market. The scourge of AIDS has been noted and associated with a brain drain for greener pastures, and Chemplex has experienced these impacts according to their documents (Chemplex 2005a).
Detailed Presentation of Findings
The responses presented in Table 4.6 show that the department's support is spread across all strategic sectors of Chemplex. The responses in Table 4.26 were all of the opinion that these strategies would help the company's effort to access much needed foreign currency. There was a 100% position that they believed that the differentiation strategies were not helping the company in the market, as shown in Table 4.28.
Graphical representation
The management and succession plans of the departments are mostly clear, as the answers represent only 14.29% of those who are not aware of its clarity or existence, as shown in table 4.35 below. Questions directly related to the competitiveness and efficiency of Chemplex have largely revealed the persistence of the work to be addressed. Manufacturing systems that do not require immediate attention will still need to be benchmarked again with similar global players, as the responses indicated.
Conclusion
CONCLUSION AND RECOMMENDATIONS
- Introduction
- Discussion of Data and Analysis
- Financial Status
- Technological Developments and ISO Certification
- Other Resources
- Strategic Synergies
- Other Strategies Options
- Recommendations
- Strategic Alliances
- Licensing Agreements
- Outsourcing
- Future Studies
- Summary
- Conclusion
The product range has been limited because the company cannot import some ingredients needed in the manufacture of other products. The company has local and international or regional operations that are not very successful due to the foreign currency shortage it is experiencing. The company's products can reach the international markets through alliances with other reputable companies in the world.
BIBLIOGRAPHY
Outsourcing the human resource skills of Bonus Building Supplies to small, micro and medium enterprises (SMEs) to operate as a profitable business unit. http://stardata.nrLac.za/ scripts.
LIST OF APPENDICES
Do you know what your department needs to do to achieve the company's goals. Alliances and joint ventures between Chcmplcx and other foreign companies are possibilities, do you think this would improve the company's competitiveness. Improvements in customer service can increase a company's competitiveness and market share; Do you think Chemplex has adequately addressed these issues?
Letter Of Acceptance
UNIVERSITY OF
KWAZULU-NATAL
