March'20

The IUP Journal of Business Strategy

Focus

The worldwide phenomenon shows that as the share of the informal sector dips, the share of MSMEs increases. The first paper, "Institutionalizing Entrepreneurship: The Case of B-BBEE-Based Enterprise and Supplier Development in South Africa", by Domocia Zanele Sibiya and Brian Barnard, focuses on the role of MSME sector in South Africa. The authors examine the impact of Broad-Based Black Economic Empowerment Enterprise and Supplier Development (B-BBEE ESD) programs on Small Medium and Micro Enterprises (SMMEs) as a growth and development mechanism.

B-BBEE ESD is South Africa's approach to correcting historical economic marginalization of black business. It incentivizes organizations that support and invest in the development of SMMEs. According to the authors, empirical research on the value and contributions of B-BBEE ESD programs is scant and primarily focused on Black Economic Empowerment (BEE) as an overarching policy without narrowing it down to supplier development. Past literature highlighted how data on SMME growth and the impact of BEE has been dismal, making it difficult to measure how much BEE has contributed to SMME growth. The study was conducted by interviewing 10 ESD beneficiaries and obtaining views on their participation experiences. The results of the study indicate that ESD programs do benefit SMMEs in both financial and non-financial means. However, participants generally felt benefits were limited and more value could be extracted from partnerships. The results also indicate that the extent to which partnerships benefit either party is dependent on both-organization's commitment and philosophical views on the imperatives of B-BBEE.

Strategy formulation is a key ingredient in the overall strategic management process. It begins with defining the mission, goals and objectives of the organization. The key question in this exercise is the 'ownership' of the formulation process. Who decides the road map for the organization? History indicates that it is usually a top down approach and senior leadership takes responsibility for this process. The paper, "Strategy Mind-Map: How to Use and Practical Implications", by Rohit Kumar presents a novel way of designing the strategy for an organization-the Mind-Map technique. This technique helps managers develop their own versions of strategy by taking into account the competitive landscape, business context, people and processes, to name a few. The mind-map helps in understanding the connectedness and interconnectedness among all the variables. The author is of the view that this technique can be used in executive education and management programs to simplify a complex process into a simpler but interesting approach.

The success of Baba Ramdev in transforming an age-old tradition to a powerful brand has been well documented. In a very short time, the Patanjali brand that he patronized has grown immensely and emerged as a tough rival to existing national and multinational brands. Ramdev's brand of Yoga conveyed regularly on television and digital channels was a powerful message to the Indian audience who revered him like a guru and associated the Patanjali brand with everything Swadeshi and natural. The stupendous growth of the Patanjali brand and the strategies that led to this success form the basis for the final paper, "Swadeshi Strategy: Insights from Baba Ramdev's Life Story", by Venkatesan Iyengar. According to the author, the success of Baba Ramdev is in fact a valuable lesson for success to prospective entrepreneurs in markets such as India which has a large growing bottom- of-the-pyramid opportunity. The role of the leader in this transformation is well presented and has important lessons for future business leaders in India and abroad.

- Venu Gopal Rao
Consulting Editor

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Article   Price (₹) Buy
Institutionalizing Entrepreneurship: The Case of B-BBEE-Based Enterprise and Supplier Development in South Africa
50
Strategy Mind-Map: How to Use and Practical Implications
50
Swadeshi Strategy: Insights from Baba Ramdev's Life Story
50
       
Contents : (March'20)

Institutionalizing Entrepreneurship: The Case of B-BBEE-Based Enterprise and Supplier Development in South Africa
Domocia Zanele Sibiya and Brian Barnard

The purpose of the study is to examine the impact of Broad-Based Black Economic Empowerment Enterprise and Supplier Development (B-BBEE ESD) programs on Small Medium and Micro Enterprises (SMMEs) as a growth and development mechanism. B-BBEE ESD is South Africa's approach to correcting historical economic marginalization of black business. It incentivizes organizations that support and invest in the development of SMMEs. Empirical research on the value and contributions of B-BBEE ESD programs is scant and primarily focused on Black Economic Empowerment (BEE) as an overarching policy without narrowing it down to supplier development. Literature highlighted how data on SMME growth and the impact of BEE has been dismal, making it difficult to measure how much BEE has contributed to SMME growth. The study was conducted by interviewing 10 ESD beneficiaries and obtaining views on their participation experiences. The study employed qualitative technique as a research methodology and inductive approach since little is known on the research subject. The study also made use of thematic analysis to systematically analyze the data. The results indicate that ESD programs do benefit SMMEs in both financial and non-financial means. However, participants generally felt benefits were limited and more value could be extracted from partnerships. Moreover, the results indicate that the extent to which partnerships benefit either party is dependent on both organization's commitment and philosophical views on the imperatives of B-BBEE. Finally, the lack of monitoring and evaluation is a key contributor to the lack of data on the impact of implemented programs.


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Article Price : Rs.50

Strategy Mind-Map: How to Use and Practical Implications
Rohit Kumar

There are multiple tools used by executives for formulation and execution of company's business strategy. In this paper, mind-map tool is explained and used to demonstrate how executives can think about their company's strategy. Using strategy as a 'central idea' and through illustration, the paper suggests seven different factors that are critical for strategy formulation. The seven criteria are discussed in detail and practical implication of each is summarized.


© 2020 IUP. All Rights Reserved.

Article Price : Rs.50

Swadeshi Strategy: Insights from Baba Ramdev's Life Story
Venkatesan Iyengar

Patanjali was an unknown entity about a decade ago; today it is one of the leading Fast-Moving Consumer Goods (FMCG) brands in India. The man behind the incredible success of Patanjali brand is a sanyasi with the Midas touch-Baba Ramdev. This paper takes a close look at Ramdev's business strategies that have helped him translate his telegenic personality as a yoga guru and Ayurveda practitioner into positive brand equity for the company he founded, and distills the strategy lessons that entrepreneurs and individuals can draw from the way he has transformed a wide and unchartered bottom-of-the-pyramid consumer segment into Patanjali's loyal customers, in the process expanding and deepening the FMCG market in India.


© 2020 IUP. All Rights Reserved.

Article Price : Rs.50

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