- Title
- An exploratory study on the impact of three critical incidents on SMEs within the Petroleum retail sector in South Africa
- Creator
- Makhaya, Humbulani Portia
- ThesisAdvisor
- Mohapeloa, Matshediso Masantho Elizabeth
- Subject
- Strikes and lockouts Petroleum industry South Africa
- Subject
- Motor fuels Taxation South Africa
- Subject
- Stockout South Africa
- Subject
- Small and medium enterprises South Africa
- Subject
- Service stations Location South Africa
- Date
- 2022-10-14
- Type
- Academic theses
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10962/403025
- Identifier
- vital:69915
- Description
- The purpose of this study was to investigate the impact of three critical incidents with a direct effect on Small and Medium Enterprises (SMEs) within the Petroleum retail sector in South Africa. This study assessed three specific areas: (1) the impact of fuel levy increase on Petroleum retailers, (2) explore how fuel stock-outs are experienced by the SMEs, and (3) the effects of fuel distributors' strike on SMEs in the petroleum sector in South Africa. To address the research objectives, the study employed a qualitative research approach, based on a narrative research design. Primary data was collected through semi-structured interviews conducted with six SMEs in the fuel retail business in Johannesburg. An interview guide was used. Findings highlighted that the location of fuel retail SMEs is an important determinant of how the fuel retailers are affected by these three critical incidents of fuel levy increases, stock-outs and strikes. The study found that while the fuel levy increases are felt through reduced sales volumes, the impact is not the same across fuel retailers. The study revealed that the elasticity of demand varies depending on the location for which it is elastics for those retailers in high Living Standards Measure (LSM) locations and inelastic for those located in lower LSM locations. It was found that the impact is much less for those fuel retailers located in affluent suburbs with a high LSM. In locations such as Beyers Naude and Radiokop in Northern Johannesburg with a high LSM, the demand for fuel remains constant irrespective of price increases. The locations are also less likely to be adversely affected by protest actions. Concerning SMEs’ experiences of fuel stock-outs, the study found that stock-outs impact fuel retail business operations through overhead costs that are incurred while the fuel stations are out of stock. The small margins make it impossible for fuel retailers to quickly recover, as their profitability is dependent on sales volumes, which are compromised when there are stock-outs. Fuel retailers also suffer from reduced future sales volumes due to waning customer loyalty. Finally, the study found that the occurrence of wage-related strikes is minimal due to the nature of collective agreements that are signed within the sector. However, protests actions were found to have deleterious effects on the fuel retailer situated in lower LSM locations.
- Description
- Thesis (MBA) -- Faculty of Commerce, Rhodes Business School, 2022
- Format
- computer, online resource, application/pdf, 1 online resource (102 pages), pdf
- Publisher
- Rhodes University, Faculty of Commerce, Rhodes Business School
- Language
- English
- Rights
- Makhaya, Humbulani Portia
- Rights
- Use of this resource is governed by the terms and conditions of the Creative Commons "Attribution-NonCommercial-ShareAlike" License (http://creativecommons.org/licenses/by-nc-sa/2.0/)
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | MAKHAYA-MBA-TR22-220.pdf | 1 MB | Adobe Acrobat PDF | View Details |