A study of the use of value based management (VBM) by multinational entities in the Eastern Cape motor industry cluster (ECMIC)
- Authors: Blouw, Mbuyiselo Edwin
- Date: 2005
- Subjects: Corporations -- Valuation , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8550 , http://hdl.handle.net/10948/421 , Corporations -- Valuation , Automobile industry and trade -- South Africa
- Description: Management’s response to shareholders’ return on investment as a priority occurs in an increasingly dynamic environment. Accompanying these activities is the need to realign responsibilities and to allocate scarce resources effectively. This is done in order to ensure that companies achieve global competitiveness and increase shareholders’ return on investment. Against this backdrop, local industry needs to find new methods or strategies in order to achieve world-class competitiveness, and to be able to access foreign investment. One way to achieve these goals is through Value Based Management (VBM). The objective of this study is to evaluate the strategic intent of Multinational Entities in applying VBM to increase shareholders’ return on investment. Based on the study, certain factors are critical to ensure the success of VBM. A postal survey to managers in the motor manufacturing and component manufacturing companies was conducted to check the managers’ familiarity with VBM, and their scope, and usage of VBM; and, based on the finding, to evaluate the impact of VBM on companies’ results. The empirical finding was compared with a literature review, and the following findings were made: There is a strong understanding and application of the VBM principle on the part of local entities with Foreign Direct Investment (FDI); Departmental performance is critical to an entity’s overall performance; Based on the study, 23 per cent of the respondents use Economic Value Added (EVA) as an internal reporting measure, and an average of 19 per cent use other metrics; A total of 89 per cent of respondents indicated that they strongly agree with the use of incentives for motivation. The above-mentioned points were covered by means of 4-M framework ― that is: Measurement, Management, Motivation, and Mindset.
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- Date Issued: 2005
The identification of a model to promote intrapreneurship in an automotive component company
- Authors: Du Preez, Catherine Amanda
- Date: 2005
- Subjects: Entrepreneurship , Automobile industry and trade -- South Africa , Organizational change
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8549 , http://hdl.handle.net/10948/423 , Entrepreneurship , Automobile industry and trade -- South Africa , Organizational change
- Description: South African organisations are facing a new era of intense global competition. The modern business world is characterised by change and this change presents both challenges and opportunities. As a result, organisations have to become more responsive to change by continuous, rapid and cost-effective innovation through integrating the strengths of the entrepreneurial small firm, such as creativity, flexibility and innovativeness, with the market power and resources of the large firm. Due to the dynamic nature of the automotive industry, it is vital that South African organisations and management identify creativity and innovation as the main sources of sustainable competitive advantage. Sustained competitive advantage is derived from consistently satisfying customers’ wants and needs through innovation. An intrapreneurial philosophy is of key importance to an organisation’s corporate strategy, ensuring that entrepreneurial values are incorporated into the culture of the organisation. This study took place within an automotive component company operating in the Eastern Cape. Based on the theoretical findings of the literature study a questionnaire was developed and distributed to all employees of the company. The objective of the questionnaire was to measure the prevalence of intrapreneurship within the company and based on the findings of the literature study, recommendations on the structure, systems, culture and management styles of the organisation were made. Finally, a model was developed that identifies the importance of innovation, customer-solution centeredness and being market driven as core strategic values.
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- Date Issued: 2005
Achieving successful implementation of lean manufacturing control systems, to achieve world class status, at Ford Motor Componay of Southern Africa
- Authors: Govender, Shawn Prakash
- Date: 2002
- Subjects: Ford Motor Company of South Africa , Automobile industry and trade -- Management , Automobile industry and trade -- South Africa , Manufacturing industries -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10909 , http://hdl.handle.net/10948/75 , Ford Motor Company of South Africa , Automobile industry and trade -- Management , Automobile industry and trade -- South Africa , Manufacturing industries -- Management
- Description: Ford Motor Company embarked on a new engine programme, called the Rocam Engine Programme, in the year 2001. This engine was developed specifically for the European market. The customer demand rate was small initially, but ramped up slowly over time. During the low production volume period, this engine was introduced into the local market to test the publics’ response. The response was overwhelmingly positive. The local market grew considerably in a short space of time. During the same time-period, the European customer demand increased, unexpectedly, by approximately 60 percent. The additional production volume placed an enormous amount of pressure on the Engine Plant facility. Two of the production lines in particular, were taking huge strain. These lines were not producing the demand quantities, and the product quality levels were dropping quickly. The research project is based purely on the lean manufacturing principles and philosophies. The aim of the study is to identify the deficiencies on these two production lines, thereby allowing corrective action to be taken. The research methodology comprised of the following steps: · A literature study was performed to give the reader a better understanding of the principles and philosophies of lean manufacturing. · A second literature study was also performed to get a better understanding of the continuous improvement philosophies of lean manufacturing. · A current state map, which depicts the existing situation on the line, was developed for both production lines. The existing situation was then compared to the fundamental principles and philosophies of a lean manufacturer. In this way the deficiencies were highlighted to management. Several recommendations were made regarding the data obtained in the study. The key ones are as follows: · First-line management needs to be trained and coached into managing their business by using quality, cost and delivery as the key performance metrics. They also have to be trained in team dynamics. This will promote cross-functional brainstorming and problem solving sessions. · The accurate collection and processing of base-measurement data should be treated as cardinal, and road shows by production personnel should be presented every week to top management. This will ensure that data is regularly collected and corrective action is continually taken to improve the current situation. Operating personnel needs to be trained in this discipline. Management needs to be serious about implementing lean production principles by enforcing these road shows. · The objectives of Kaizen, production management and the supporting departments (including maintenance and MP&L) ought to be the same in the interest of maximum productivity i.e. leaning towards world class. · First-line management must develop formal structured plans that will rectify the current on-line situation. Plans must include medium to longterm objective setting. Senior management need to coach the first-line management in this discipline. · Few production systems can be implemented without the necessary infrastructure conducive to supporting it. An infrastructure where production gets involved and takes ownership (policy deployment with regards to lines of communication and responsibility between Area Managers, Production Coordinators, Team Leaders and contractors) is what is required. Lean manufacturing deficiencies on the two production lines have been identified. A detailed implementation plan, which needs to be developed by the Ford Production System department, needs to be given to management. This plan needs to address the identified deficiencies in a timely manner that will assist in the Engine Plant meeting their production targets.
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- Date Issued: 2002
Key factors required to be classified as a world-class supplier from a South African automotive industry perspective
- Authors: Cook, Gavin Trevor
- Date: 2009
- Subjects: Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:9335 , http://hdl.handle.net/10948/935 , Automobile industry and trade -- South Africa
- Description: Over and above the fact that South African automotive business firms do not have the advantages of a major domestic market and are far removed from the major world markets, they face the challenges of operating in a tough and ever-changing environment. This environment is characterised by a global recession, aggressive global competition, high inflation and more demanding customers. To overcome these obstacles and to ensure their continuous success and existence, these domestic firms need to create a competitive advantage. The establishment of such a competitive advantage is dependent on a number of factors which mainly include sourcing from a world-class supplier base in terms of price, quality and service delivery. The main objective and central theme of this study is to determine the factors that are required by a supplier in the South African automotive industry to be classified as a world-class supplier. In support of the main objective, it was necessary to source the reasons why a firm would find it important to trade with a world-class supplier base, and to determine whether the current levels of supplier performance as experienced by buying firms in the Eastern Cape automotive industry, could be regarded as world-class. Furthermore, the study set out to determine the consequences to customer firms of inferior supplier performance, as well as the actions currently taken and support programmes in place to bring suppliers in line with world-class standards. As a starting point to the study, a literature review was undertaken which revealed the definite interdependence between a business firm and the environment in which it operates. The review underlined the need for environmental scanning as a means to proactively manage the impact of environmental changes on a firm. Porter’s value chain and business process re-engineering, as discussed in the study, are also perceived as means to manage environmental changes. The literature study further revealed some of the latest business trends followed by automotive business firms, as well as the expected supplier buy-in to ensure success. A statistical analysis on the quantitative data gathered, grouped specific items (questions) that relate to the study’s main objective with three respective individual supplier performance areas. A confirmatory factor analysis which focused on the three factors, namely quality, pricing and service delivery was carried out to assess the validity of the questions used for gathering the research data. The Cronbach Alphas determined for the three factors portrayed the reliability of the research instrument as acceptable. The empirical study revealed a few main factors that automotive business firms strongly perceive as being key to the establishment of a world-class supplier base. These factors are: a culture of continuous improvement; consistently meeting delivery deadlines by being able to respond to customer schedule changes; quoting fair prices and having respect for business ethics; as well as the consistent application of a quality policy which leads to conformance to specifications and subsequent high levels of product reliability. The empirical study also identified the following benefits enjoyed by customer business firms when trading with a world-class supplier base: Firms are able to be more flexible to customer schedule changes; they receive products that meet specifications; and they are able to operate at lower costs. The empirical findings with regard to the current level of supplier performance in the Eastern Cape Province automotive industry highlighted mainly three problem areas. These are late deliveries; the inability of suppliers to respond to customer schedule changes; as well as a lack of continuous improvement. Late deliveries which lead to production stoppages, with its resultant high costs, as well as the receipt of below-par quality products, were revealed as the main consequences when dealing with suppliers whose performance are not world-class. The main actions taken and programmes or incentives offered by automotive business firms to bring inferior suppliers more in line with world-class performance, include the rewarding of good suppliers by granting them more business; applying formal supplier performance evaluations; and having regular supplier audits.
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- Date Issued: 2009
Assessing the impact of the transition from MIDP to APDP in the South African automotive industry
- Authors: Strydom, Elwin
- Date: 2015
- Subjects: Automobile industry and trade -- South Africa , Sustainable development -- South Africa , Economic development -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/5908 , vital:21010
- Description: The South African automotive industry is by no means a ―cut and paste‖ version of their overseas counterparts. The industry and the market are very complex. The historical background of the industry is such that companies have difficulty forming partnerships and joint ventures with bigger international conglomerates. The difficulty with this kind of mindset is that it is restricting growth and development of the nation as a whole. Globalisation is a future we cannot be avoided. Should the nation continue to reject it and embrace the mindset of countries in Africa, South Africa (SA) will continue on the path that the rest of Africa is heading, a path that leading to self-destruct and segregation. Even though SA is a developing country, it is in some areas as developed as many other first world countries. For a country to generate wealth it needs to be innovative and develop an entrepreneurial consciousness. A young country like South Africa needs creative thinkers and opportunists that can see into the future, seizing every opportunity, to grow and develop new ideas and business. In order for a country to grow it needs a leadership that is to nurture the baby of innovation. If South Africa wants to be part of the global village it need to develop a trade policy that welcomes trade and at the same time creates stable and sustainable jobs. The environment for investments needs to be cultivated in a problem-free and growth prone nation. This can only happen when the educational level of the nation is improved. The fact that so many skilled workers need to be imported creates tension in the labour market. People with talent need to have a reason to stay in the country. Their salaries should match that of their overseas counterparts. Furthermore, with the same skill level and work ethic, should have the same rewards and remuneration.
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- Date Issued: 2015
Impact of information and communication technology (ICT) on trust and information sharing in South African automotive supply chains
- Authors: Goche, Chiedza
- Date: 2012
- Subjects: Business logistics -- South Africa , Automobile industry and trade -- South Africa , Interorganizational relations -- South Africa , Trust -- South Africa , Information technology -- South Africa , Prisoner's dilemma game
- Language: English
- Type: Thesis , Masters , MCom (Information Systems)
- Identifier: http://hdl.handle.net/10353/668 , vital:26486 , Business logistics -- South Africa , Automobile industry and trade -- South Africa , Interorganizational relations -- South Africa , Trust -- South Africa , Information technology -- South Africa , Prisoner's dilemma game
- Description: The Internet has made a considerable impact on how business is conducted. Empowered by technology consumers are using the Internet as a tool to communicate and transact online. E-commerce (electronic commerce) presents opportunities for business to gain a competitive advantage, however it also posses certain challenges. Small and Medium Hospitality Enterprises (SMHEs) sector within the tourism industry, is one of the sectors which stands to benefit from using the Internet for business. Researchers agree that the contribution made by the tourism sector in developing economies is substantial. However, SMHEs are noted for their failure to derive optimal benefits from using the Internet for business to improve their competitiveness. This study which seeks to develop a model for use by SMHEs as a guide when making the decision to adopt technology was necessitated by the importance of SMHE’s contribution in the economy of developing countries. This model is based on the examination of existing theories and models such as; the Delone and McLean IS success model (2004), and the ITGI’s (2007) IT governance focus areas model. To elicit the desired outcomes, additional data was collected using questionnaires, interviews, and observations. The collected data was analysed and resulted in the development of a model that can be used by SMHEs in order to derive value from IT and to gain a competitive advantage.
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- Date Issued: 2012
Entrepreneurship : key to organisational performance a case of Volkswagen Group of South Africa
- Authors: Lechaba, Junior
- Date: 2012
- Subjects: Automobile industry and trade -- South Africa , Bureaucracy -- South Africa , Entrepreneurship -- South Africa , Organizational sociology
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8832 , http://hdl.handle.net/10948/d1019791
- Description: Intrapreneurship expresses organisational activities aimed at increasing quality of products, reducing production cost, capture or creates new product markets, and/or improving processes and services. This research study covers the investigation of potential influences on the intrapreneurial activity within an established organisation, and the possible outcome on financial performance. In the rapidly changing business environment of today, it has become necessary for the organisations to move from boundary-oriented thinking to continuous improvement in order to provide the disruptive competitive advantages necessary to survive and thrive in an environment where the ‘rules of the game’ change quickly in almost all companies and industries (Voelpel, Leibold and Tekie, 2005). Moreover, the automotive industry is no exception to this rule. In general, established companies deal with two significant challenges. First, they have to adapt to the external challenges of constantly changing and developing markets to keep pace with rapid technological evolution, globalisation, and progressively sophisticated competitors (Kemelgor, 2002; Kuratko, Hornsby and Goldsby, 2004). Second, they must deal with the internal challenges of modernising bureaucratic structures and processes, which can lead to slow development, decision-making and an inability to adapt easily to new situations (Hammer and Champy, 1994). In today's context of increasing market globalisation, companies wishing to maintain their competitiveness must innovate constantly (Carrier, 2001). Recognising the importance of meeting these challenges, organisational leaders must create high performance organisations in order to compete in a global mega-economic world. The old ways of doing business as usual and overwhelmed policies and procedures must be rooted out in order for the organisation to compete by identifying and sustaining diversified employees within a global economy (Kennedy, 2010). Companies generally engage in innovation for achieving an increase in quality of products, a reduction in production cost, capture or create new product markets, and reduce the firm’s reliance upon unreliable factors of production (Webster, 2004). There is a growing consensus that established companies must nurture intrapreneurial activity throughout their operations to continue to compete successfully (Sathe, 2003). Numerous authors have suggested intrapreneurship as a method of stimulating innovation and using the creative energy of employees by giving them the resources and independence they need to innovate within the firm (Carrier, 2001; Amo and Kolvereid, 2005). However, there is a certain amount of ambiguity around the concept of intrapreneurship, and this may lead to questions about the difference between intrapreneurship and intrapreneurship (Carrier, 2001). It is therefore important, before introducing the object of this research, to look more closely at the concept on which intrapreneurship is based, and to examine the trends in the research on intrapreneurship. The research conducted by Eesley and Longenecker (2006) suggest that intrapreneurship is a practice of creating new business products and opportunities in an organisation through proactive empowerment and risk-taking. This is considered a key component to organisational success; especially in organisations that operate in rapidly changing industries (Eesley and Longenecker, 2006). Intrapreneurship can manifest itself at every level of the company and regardless of the nature of the position held. Hence, we could have intrapreneurs in technical or non-technical functions; senior, middle or junior management levels; line or staff functions, and manufacturing or service related roles. Beyond this wide perspective, other authors have suggested that intrapreneurship requires a culture built around emotional commitment, autonomy, empowerment, earned respect, and a strong work ethic (Axtell, Holman, Unsworth, Wall, Waterson and Harrington, 2000). They believed intrapreneurship is inseparably connected with leadership, since it involves mobilising teams of people towards a cause much greater than the individuals involved often in the face of significant resistance from status quo preserving forces within and outside the organisation (Seshadri and Tripathy, 2006). Therefore, the failure of organisations to take members inputs on organisational improvement; sanction, promote and encourage risk-taking, empowerment, and improvement actions; give clear organisational direction, priorities, and objectives; and lack of top management support in risk-taking and improvement initiatives, could stifle intrapreneurship (Eesley and Longenecker, 2006). In light of the scope and the group target, intrapreneurship can be considered beneficial for the revitalisation and performance of companies, both large corporations and small and medium-sized enterprises. Previous research conceptualised intrapreneurship in terms of four dimensions that were somewhat distinct in terms of their activities and orientations (Antoncic and Hisrich, 2001): New business venturing; Innovativeness; Self-renewal; and, Proactiveness. The intended contribution of this study is to make use of a self-constructed measuring instrument to demonstrate that intrapreneurship has had a positive influence on corporate performance within an established organisation, in the automotive industry of South Africa. This study can be viewed as a reciprocal contribution to companies seeking to create an intrapreneurial climate aimed, on the other hand at creating high performance organisation and on the other hand to motivate professionals in these companies requiring a wider portfolio of significant knowledge and skills development.
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- Date Issued: 2012
Tailoring a lean product development framework for the South African automotive industry
- Authors: Mund, Klaudia
- Date: 2011
- Subjects: Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:8792 , http://hdl.handle.net/10948/d1015737
- Description: Globalization in the automotive industry exerts enormous pressure on automotive manufacturers and forces many global companies to expand into emerging markets, which results in adopting new ways to manage product design and development. Excellence in product design and development offers an opportunity to gain competitive advantage and can be achieved by implementing Toyota´s Lean Product Development System (LPDS). Although in the last three years Toyota has been severely challenged by the global economic crisis, by a series of recalls resulting in reputation damage and also by natural disasters such as the recent tsunamis - the world can still learn from Toyota´s successes embodied in the lean concept and practices, which are integral to Toyota´s ‘way of life’. The LPDS model (Morgan & Liker 2006) has captured the attention of academics worldwide (including this researcher) thanks to the following key characteristics: shorter development times, less engineering hours involved in development, lower manufacturing costs, higher customer satisfaction and fewer defects reported. In the academic world, lean product development (LPD) is a new field of exploration and thus relevant literature and numbers of studies available are limited. However, scientists are asking questions about successful adaptation and adoption of this model to other environments beyond Toyota. Similarly, the researcher aimed in this thesis to find answers to its main research question, namely: ‘What would be a suitable LPD model for the South African automotive industry?’ South Africa (SA) is a country with a strong manufacturing tradition and although the automotive sector is the third-largest segment in the South African economy and its vehicle market is the largest on the African continent in a global perspective SA´s contribution is relatively small as it produces only 0.61percent of the global motor vehicle volume (OICA 2011). While the country strives to secure sustainable development for the automotive industry and seeks to improve its global competitiveness, companies operating in SA are currently faced with several unique challenges and problems. Lean has been expanding slowly in SA and some companies in the local automotive industry have implemented the lean concept into production areas to improve their operational excellence and performance. However, it is a search for excellence in product development (PD) that could best contribute to improved sustainability for the automotive industry and also provide an important strategic spur towards global competitiveness. The primary intention of this research was to develop an integrated LPD framework tailored for SA´s automotive industry. Considering this, it was necessary to determine current PD capabilities at domestic and international companies operating in SA´s automotive industry so as to examine levels of adaptation of LPD practices. A questionnaire survey and personal interviews involving all seven locally operating Original Equipment Manufacturers (OEMs), including Toyota, as well as 36 local automotive suppliers provided an empirical base for this investigation. This study indicates that SA plays an important supportive role in the global PD context. In spite of a strong manufacturing focus and very limited PD capabilities, SA´s automotive companies have already achieved a high level of ‘leanness’ in product engineering processes. However, on the downside, it appears that industry leaders and senior managers are sceptical about current and future capabilities and opportunities for SA in the designing and developing of global products.
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- Date Issued: 2011
Exploring the motivational factors of millennials in the automotive sector in South Africa
- Authors: Walters, Ashraf
- Date: 2020
- Subjects: Automobile industry and trade -- South Africa , Employee motivation
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/50709 , vital:42388
- Description: Motivation in the workplace is the willingness of employees to exert high levels of effort in achieving the organisations goals and objectives. Motivation has been studied by psychologists and organisational experts throughout the ages and was consistently found that motivated employees provide organisations with improved productivity and a competitive edge. Millennials, born between the years of 1980 and 2000, are the biggest cohort since the baby boomer to enter the workplace. A significant amount of research was done on the characteristics of millennials but there is a limited amount of empirical research done on understanding and potentially improving motivation of millennials. The automotive industry is a key player and contributor to South Africa’s gross domestic product and employs a great number of people in direct and indirect jobs throughout the value chain. Against this backdrop, research was conducted within the automotive sector in the Gauteng and Eastern Cape (Nelson Mandela Bay) regions in South Africa aimed at exploring motivation under the context of leadership, communication, social responsibility, rewards and, given the tech savvy nature of millennials, the use of technology. This study was conducted under the positivistic paradigm, which employed a quantitative approach, by means of a questionnaire survey. The study and review of the literature by the researcher found that millennials value leadership which supports, and guides as oppose to enforces. Communication, which is transparent, concise but frequent. They are willing to make personal sacrifices working for an organisation who genuinely cares about Environment.Furthermore, millennials demand using technology to improve efficiency and interestingly, regards career development more than money as the most important and rewarding aspect. By understanding the motivational factors of millennials, Leaders can be equipped to keep them engaged, motivated and highly productive, after all, they are not only the future, but are fast becoming the present.
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- Date Issued: 2020
Development of a co-operative stakeholder framework for employment growth in the South African automotive sector
- Authors: Smith, Owen Christo
- Date: 2013
- Subjects: Cooperative societies -- South Africa , Job creation -- South Africa , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8884 , http://hdl.handle.net/10948/d1020799
- Description: Manufacturing has been identified by the Department of Trade and Industry as an important sector to drive economic growth in South Africa. The automotive manufacturing sector in particular has seen significant support from the DTI in the form of incentives to produce motor vehicles and components. South Africa is faced with a high unemployment rate and one of the strategies of the Government is to drive economic growth by supporting the automotive manufacturing sector. One of the spill-over targets is to increase employment creation in the industry. The automotive manufacturing sector consists of a diverse list of stakeholders representing motor vehicle manufacturers, component manufacturers, labour unions, government departments and industry associations. The Motor Industry Development Programme delivered significant progress in the number of vehicles produced in South Africa and the biggest growth was in the export of vehicles. Employment creation on the other hand did not see the same levels of growth as motor vehicle and component production. The purpose of this study was to identify and clarify what the variables are that influence employment creation and to develop a co-operation framework that would guide the automotive cluster stakeholders to work on employment creation initiatives as a collective. The survey questionnaire results representing the perception of managers showed that: - DTI Incentives schemes linked to employment creation; - Productivity, Technology and employment; - The role of competitiveness in the auto cluster; - Labour Union Collective bargaining; - Investment climate and infrastructure; - Education and skills development; does have an influence on employment creation in the automotive cluster.
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- Date Issued: 2013
Factors affecting customer retention at an automative manufacturing organisation
- Authors: Yam, Bonga Sherperd Elvis
- Date: 2013
- Subjects: Consumer satisfaction , Customer relations , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8809 , http://hdl.handle.net/10948/d1018573
- Description: South African vehicle manufacturers are under immense competition from vehicle manufactures from India and China. The global financial crises also put these organisations under intense pressure and this resulted in these organisations having to start seeing the need to focus on issues that affect customer retention. The way that business is done in the 21st Century is forcing organisations to implement strategies that are geared towards increasing customer retention and growing the business. Organisations need to build relationships with their customers with the hope that these customers will in turn extend their stay with the organisation when an opportunity to replace their vehicles arises or keep on servicing with them. In order to establish a good relationship with customers, organisations need to understand customer expectations by being customer orientated and by providing customers with value. The primary objective of this study is to improve customer retention for a selected vehicle manufacturer after the warranty and service plans have expired, by investigating the relationship between customer service quality, customer loyalty, and customer retention. The results obtained from the 64 respondents who participated in the survey revealed that although all the above-mentioned variables play a role in increasing customer retention, customer service quality exerts the most influence. The study also highlights areas that should be improved, as well as recommendations on how to improve them. Recommendations for future research are also provided.
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- Date Issued: 2013
An evaluation of changes in capital investment by automotive companies in preparation for the Automotive Production and Development Programme (APDP)
- Authors: Bacela, Bandile Sakhekile
- Date: 2012
- Subjects: Automobile industry and trade -- South Africa , Capital investments -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8797 , http://hdl.handle.net/10948/d1016075
- Description: To thrive, developing countries depend on high levels of protection being given to key industries such as manufacturing; specifically the automotive and textile industries. South Africa, as a developing country and especially under the emergence of globalisation, has followed suit in terms of developing policies and structures to protect certain critical industries. During an era (1980 to 1989) of high political instability, South Africa experienced isolation from the rest of the world, which resulted in declines in industrial revenues as well as the country’s automotive industry undergoing a stage of perilous stagnation. It was through a protection regime that the automotive industry realised growth, a regime which started slowly in 1989 and accelerated in 1995 with the introduction of the Motor Industry Development Programme (MIDP) (Black, 2001). Through this regime the South African government sought to integrate the South African automotive industry into the global market by improving the competitiveness of this industry (The DTI, 2010). This led to the automotive industry becoming one of the most successful export sectors in South African manufacturing and a large net consumer of foreign currency, totalling R20 billion and R10 billion in imports and exports respectively by 1998 (Damoense and Simon, 2004). Reviews of the government legislation called the MIDP were held in year 1999 and 2002 and in 2008, a successor to the MIDP was named, the Automotive Production Development Programme (APDP) and is set to commence in year 2013 until 2020. Unlike its predecessor, the APDP policy promises to bring greater and more inclusive benefits to the automotive industry as a whole, provided organisations have prepared well to receive it. This study investigated whether organisations have prepared for the upcoming 2013 - 2020 APDP, with specific reference to capital investment in equipment. It determined whether automotive organisations have spent and are going to spend resources in securing equipment and technology in preparation for the introduction of the APDP.
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- Date Issued: 2012
Determinants of foreign direct investments in the motor industry in South Africa
- Authors: Onceya, Siyabulela
- Date: 2011
- Subjects: Investments, Foreign -- South Africa , Automobile industry and trade -- South Africa , Motor industry -- South Africa , Industrial policy -- South Africa
- Language: English
- Type: Thesis , Masters , M Com
- Identifier: vital:11459 , http://hdl.handle.net/10353/545 , Investments, Foreign -- South Africa , Automobile industry and trade -- South Africa , Motor industry -- South Africa , Industrial policy -- South Africa
- Description: The recent surge in foreign capital inflows into developing countries has generated interest among researchers wanting to analyse the major determinants of Foreign Direct Investments in the motor industry (FDIsm). This dissertation investigates the determinants of FDI in the motor industry in South Africa. The underpinning theoretical literature in this study is the Micro-level theory of FDI and the Eclectic theory as well as empirical literature from several authors. The study used quarterly time series data, which covers the period 1994q1- 2008q4. FDIs are modeled as the function of economic growth, interest rates, exchange rate, education and the openness of the country. The variables in the model are tested for stationarity. Cointegration analysis was also used to test for long run relationships between the variables. The trace and the maximum eigenvalue tests suggest that there are at least two cointegration relationships, an error correction modelling technique is used to establish the determinants of foreign direct investment. The error correction model was estimated which provided both long run and short run parameter estimates. The results show that economic growth, education and the openness of the country are positively related to foreign direct investment in the motor industry. Interest rates and exchange rates negatively affect foreign direct investment in the motor industry in South Africa. The results of this study are also supported by the impulse response and variance decomposition tests. The policy recommendation that emanate from this study is that efforts should be made to boost the level of economic growth in order to enhance and attract more foreign investors. It is therefore important for the government to purse policies that will encourage economic growth.
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- Date Issued: 2011
The influence of inbound and outbound logistics on the competitiveness of the South African automobile industry
- Authors: Fourie, Quinton
- Date: 2013
- Subjects: Business logistics -- South Africa -- Costs , Competition -- South Africa , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8863 , http://hdl.handle.net/10948/d1020217
- Description: The South African automotive industry has been identified as an important influence on the economy of South Africa. In particular, it plays a role in job creation in a country with high unemployment rates. However, being linked to a global industry, its competitive position and future relevance have come into question on numerous occasions. After a period of isolation and protection, the local industry had to enter global competition. The competitive playing field had suddenly widened from companies competing locally amongst each other for local market share, to competing globally for international sales. In addition it was found that competition was not only limited to opposing brands but also existed within the subsidiaries of the same brand. The reason for this was the existence of overcapacity in the manufacturing facilities internationally. Coupled with this, most of the dominant vehicle manufacturers were creating more capacity in developing markets to support demand as well as to benefit from cheaper resources. There are of course many influencing factors on the competitive position of such an important industry. The value chain has been identified as a tool to analyse and compare the activities within rival businesses or industry role players. Two primary activities within the value chain are inbound logistics and outbound logistics. The objective of the research was to investigate the influence of inbound and outbound logistics on the competitiveness of the South African automotive industry. A literature review created the conceptual framework for the research. It was necessary to discuss the automotive industry in a global sense to understand the history and trends of the development within the industry. It was also necessary to understand the South African automotive industry within this context to identify its place and relevance in global terms. It was found that, although important to the local economy, the local industry was not a dominant force to be reckoned with and was in fact being over taken by many of its competitors. Part of this investigation was spent on the development of the local industry in a protected environment and what it meant for the growth of local content and exports. This was also important as the component manufacturers based in South Africa need critical mass to create an efficient platform to be globally competitive. It was found that historic development programmes did not do much to improve this aspect but there is optimism about the latest programme which promotes an increase in production volumes. The state of logistics in South Africa was critically analysed to understand the influence it has on the automotive industry. It was found that although the logistics infrastructure within South Africa is the best in Africa, it is behind the standards of its competitors. This is influencing the automotive industry as a result of inadequate rail infrastructure. The reason for this was that most of the freight which was being transported by road would be more efficiently transported by rail. The cost of logistics was also found to be high in South Africa and skills were also a concern to improve the current situation. A research questionnaire was created from the findings of the literature review. The questionnaire formed the primary research tool for this study. The sample was identified as respondents from vehicle assemblers and component manufacturers who would have sufficient knowledge of this topic. It was found that inbound and outbound logistics costs formed a relatively large component of total costs. The high levels of imported parts being used as well as export levels added to the logistics costs. This also caused uneconomical inventory levels as stock needed to be kept for longer periods before being replenished. The respondents were also aware of the fact that rail would improve the situation if the infrastructure was sufficient. The respondents seemed to be of the opinion that the skills of the employees responsible for logistics were not a major influencing factor and that logistics service providers were in addition, not creating an overwhelming cost improvement. The incentive programmes were also not seen to be doing much to address the influence of logistics on the automotive industry.
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- Date Issued: 2013
Tailoring a lean product development framework for the South African automotive industry
- Authors: Mund, Klaudia
- Date: 2011
- Subjects: Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Language: English
- Type: Thesis , Doctoral , DTech (Operations Management)
- Identifier: vital:9605 , http://hdl.handle.net/10948/1660 , Lean manufacturing , Automobile industry and trade -- South Africa , Production management -- South Africa , Globalization
- Description: Globalization in the automotive industry exerts enormous pressure on automotive manufacturers and forces many global companies to expand into emerging markets, which results in adopting new ways to manage product design and development. Excellence in product design and development offers an opportunity to gain competitive advantage and can be achieved by implementing Toyota´s Lean Product Development System (LPDS). Although in the last three years Toyota has been severely challenged by the global economic crisis, by a series of recalls resulting in reputation damage and also by natural disasters such as the recent tsunamis - the world can still learn from Toyota´s successes embodied in the lean concept and practices, which are integral to Toyota´s ‘way of life’. The LPDS model (Morgan & Liker 2006) has captured the attention of academics worldwide (including this researcher) thanks to the following key characteristics: shorter development times, less engineering hours involved in development, lower manufacturing costs, higher customer satisfaction and fewer defects reported. In the academic world, lean product development (LPD) is a new field of exploration and thus relevant literature and numbers of studies available are limited. However, scientists are asking questions about successful adaptation and adoption of this model to other environments beyond Toyota. Similarly, the researcher aimed in this thesis to find answers to its main research question, namely: ‘What would be a suitable LPD model for the South African automotive industry?’ South Africa (SA) is a country with a strong manufacturing tradition and although the automotive sector is the third-largest segment in the South African economy and its vehicle market is the largest on the African continent in a global perspective SA´s contribution is relatively small as it produces only 0.61% of the global motor vehicle volume (OICA 2011). While the country strives to secure sustainable development for the automotive industry and seeks to improve its global competitiveness, companies operating in SA are currently faced with several unique challenges and problems. Lean has been expanding slowly in SA and some companies in the local automotive industry have implemented the lean concept into production areas to improve their operational excellence and performance. However, it is a search for excellence in product development (PD) that could best contribute to improved sustainability for the iv automotive industry and also provide an important strategic spur towards global competitiveness. The primary intention of this research was to develop an integrated LPD framework tailored for SA´s automotive industry. Considering this, it was necessary to determine current PD capabilities at domestic and international companies operating in SA´s automotive industry so as to examine levels of adaptation of LPD practices. A questionnaire survey and personal interviews involving all seven locally operating Original Equipment Manufacturers (OEMs), including Toyota, as well as 36 local automotive suppliers provided an empirical base for this investigation. This study indicates that SA plays an important supportive role in the global PD context. In spite of a strong manufacturing focus and very limited PD capabilities, SA´s automotive companies have already achieved a high level of ‘leanness’ in product engineering processes. However, on the downside, it appears that industry leaders and senior managers are sceptical about current and future capabilities and opportunities for SA in the designing and developing of global products.
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- Date Issued: 2011
Increasing competitiveness through the enhancement of logistics processes in the South African automotive industry
- Authors: Njokweni, Thobela
- Date: 2005
- Subjects: Business logistics , Automobile industry and trade -- South Africa , Competition, International
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:10939 , http://hdl.handle.net/10948/418 , Business logistics , Automobile industry and trade -- South Africa , Competition, International
- Description: Logistics has become one of the automotive industry's most crucial sub-sectors. Previously, logistics had to step aside to make way for production considerations. Today it is regarded as being every bit as crucial as production in the global village. Advancement of logistics in South Africa is crucial because original equipment manufacturers are producing to developed world standards but are having to cope with low developing world logistics standards. The logistics processes that need to be enhanced in order for the South African automotive industry to be more competitive were investigated. To examine the main problem, three sub-problems were identified. The first sub-problem that has been identified dealt with logistics processes that will enhance the competitive advantage of the South African automotive industry. The second sub-problems looked at key logistics opportunities and threats to the environment in which South African motor manufactures trade. They were investigated by assessing the nature of the South African motor manufacturing industry. Finally, the third sub-problem investigated conclusions that can be arrived at concerning the appropriateness and strategic value of the analysis.
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- Date Issued: 2005
Investigating the impact of supply chain technologies within automative supplier clusters
- Authors: Schultz, Lance Craig
- Date: 2013
- Subjects: Business logistics -- Technological innovations , Inventory control , Production management , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8918 , http://hdl.handle.net/10948/d1021093
- Description: Organisations are constantly expected to be more competitive while working in an environment in which time and cost are limited, thereby preventing such organisations from taking the time required to be responsive. The supply chain provides a critical linkage between various organisations which should seek collective opportunities to improve performance. It is, therefore, important that organisations understand that conventional knowledge and methods will not serve unless there is a concerted focus on improvement of organisational performance toward fulfilling increased expectations, not just maintaining that which is comfortable. A more sustainable approach may be the introduction of supply chain best practice. An optimal supply chain is one that continuously strives to reduce unnecessary cost and eliminate waste, thereby increasing the percentage of time that may be devoted to value-adding activities. Supply chain technology principles were assessed and the application thereof, sought to understand its efficiency and effectiveness. This study was intended to identify supply chain cost dimensions with a focus on the optimal use of supply chain technology. Within the current supply chain context, the use of Information and Communication Technology (ICT) was explored to identify opportunities. A supply chain audit tool (SCAT) was developed which had proven to be an effective tool to analyse it’s logistics functions. Implementation of remedial tools through the SCAT could result in a leaner, cost optimal and more value-adding process. The result of conducting individual organisational improvements is expected to result in an overall improvement in the total supply chain. These supply chain cost drivers were rooted in cost, quality, safety and product performance. Recommendations on further improvements were also offered.
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- Date Issued: 2013
A knowledge management framework for automotive component manufactures in the Eastern Cape
- Authors: Lingham, Nathan
- Date: 2011
- Subjects: Knowledge management , Organisational learning , Automobile industry and trade -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8606 , http://hdl.handle.net/10948/1592 , Knowledge management , Organisational learning , Automobile industry and trade -- South Africa
- Description: It is estimated that each direct job in the automotive industry supports at least 5 indirect jobs in the global community, resulting in more than 50 million jobs to the global auto industry (Ellis, 2006). In South Africa the automotive sector, as an employer, is widely viewed to be second only to mining. In the automotive industry globally, it is being discovered that knowledge, as opposed to “data” or “information”, is becoming harder to locate as a knowledge-bleed is occurring due to the phenomenon of the “brain drain”, retirement of experienced professionals, changing work behaviours among the younger generations and the general lack of infusion of new talent into the South African automotive industry over the past decade (Liebowitz, 1999). This realisation has spawned a growing interest in the concept of knowledge management (KM). KM is the development of tools, processes, systems, structures and cultures explicitly to improve the creation, sharing and use of knowledge critical for decision making. The effective use of KM helps organisations to improve the quality of their decision making and correspondingly to reduce costs and increase efficiency (Kinicki and Kreitner, 2008). Most automotive Original Equipment Manufacturers (OEMs) have made some attempt at KM initiatives, and these attempts have been well-documented. However, among the automotive component suppliers, limited evidence exists of attempts at KM (Piderit, 2007). No standard KM application framework could be established in the literature for industry practitioners in automotive component manufacturers within the Eastern Cape. The aim of this research study is therefore to develop a framework for the application of KM in automotive component manufacturers within the Eastern Cape. The research consisted of a study of the knowledge management literature and the subsequent development of a knowledge management framework and empirical evaluation of the framework in the automotive component supply industry of the Eastern Cape. In conclusion the report presents a knowledge management framework which converts a company assessment to recommended corrective actions to be implemented and also presents the author’s findings, conclusions and recommendations derived from the study.
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- Date Issued: 2011
Improving service quality at automotive dealerships
- Authors: Lekhelebana, Vuyokazi Anneline
- Date: 2013
- Subjects: SERVQUAL (Service quality framework) , Automobile industry and trade -- South Africa , Customer services -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8804 , http://hdl.handle.net/10948/d1017204
- Description: The highly competitive landscape of the automotive industry places increasing pressure on automotive dealerships to continually improve the quality of services rendered to customers. Understanding customer expectations and customer perceptions is key to making improvements in areas that matter most to the customer. It is against this background that this study was conducted. The aim of this research was to measure service quality at automotive dealerships. The literature review focused on the gaps model which resulted in the SERVQUAL measuring tool. The SERVQUAL instrument is supported by literature as the optimal instrument for measuring service quality. The 22-item questionnaire was adapted and used to solicit feedback from customers on their expectations and perceptions of the service rendered by dealerships across the five SERVQUAL dimensions; namely, tangibles, reliability, responsiveness, empathy and assurance. Gaps between customer expectations and perceptions were calculated as an indication of areas where customer expectations were met, unmet or exceeded. In order to identify priorities for improvement, each of the SERVQUAL dimensions was ranked in order of importance by the customer. Convenience sampling was used as a sampling technique. A total of 142 Volkswagen owners who had their vehicles serviced or repaired at a franchised dealership were surveyed. The reliability of the SERVQUAL questionnaire was tested by calculating the Cronbach’s Alpha coefficient for each of the five dimensions. The calculation yielded an average coefficient of 0.83, indicating a high reliability of the measuring instrument and the data collected. The overall gap score of -0.7 indicates that customer expectations exceeded customer perceptions. The lowest customer perceptions and the largest gaps were reported in the reliability and responsiveness dimensions. These two dimensions were also rated as the most important dimensions customers use for evaluating service quality. This formed the basis for recommending that dealership employees and management focus most of their efforts on improving the reliability and responsiveness dimensions.
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- Date Issued: 2013
The impact of the Dieselgate vehicle emmissions scandal on customer equity in the South African automotive industry
- Authors: Pillay, Sylvester Deenan
- Date: 2020
- Subjects: Automobile industry and trade -- Germany , Automobile industry and trade -- Law and legislation -- Germany , Automobile industry and trade -- South Africa , Automobiles -- Motors -- Exhaust gas , Brand choice -- South Africa , Customer preferences -- South Africa , Consumer satisfaction -- South Africa , Brand loyalty -- South Africa , Consumer behavior -- South Africa , Dieselgate
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/149304 , vital:38823
- Description: Prominent German automotive manufacturers had been tampering with emissions for some time before it became public knowledge in September 2015. It is then that that the term ‘Dieselgate’ was coined in reference to the scandal. As the scandal became public knowledge, manufacturers accused of emissions cheating faced challenges on several fronts, including legal, financial and environmental. While the ‘backlash’ as a result of the scandal was apparent in other countries, it was not as apparent in South Africa. This research paper set out to explore the impact that the Dieselgate scandal had in South Africa in terms of customer equity. Data analysis was undertaken using a two-pronged approach. The first of these was analysis of vehicle sales data using a paired t-test. This was to understand whether sales had seen a decline pre-, as well as post-scandal. The results point to a sales decline, this highlights that Dieselgate was a factor even though other, unexamined factors, were not investigated. The second instrument used was a customer equity questionnaire, this provided insight into the real opinions of consumers in South Africa about the affected brands. The analysis revealed that the affected manufacturers operating in South Africa had seen no negative effects in terms of customer equity. Based on the results, it could be said that market factors, which was not part of the research, play a great role in consumers’ preferences or mindsets. Additionally, manufacturers can operate with a degree of latitude in certain markets. This is based on market factors in a specific market as well as the regulations imposed and enforced in that market. Lastly, customer equity is a complex theory that includes a multitude of converging theories. Based on this fact, it is currently difficult to evaluate customer equity in its entirety in a single paper. A comprehensive model is yet to be developed that can effectively measure customer equity in an all-encompassing way.
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- Date Issued: 2020