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Faculty of Management Sciences

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Subject: search.filters.subject.Strategic management

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    The strategic financial management framework for small and medium-sized enterprises in Zimbabwe
    (2023-06) Mutambara, Alice; Kader, Abdul
    Small to medium enterprises (SMEs) by nature often encounter performance and growth-related challenges attributable to failure by SME owner managers to embraceStrategic Financial Management Practices (SFMPs) that are popular for promoting business growth and performance. The Zimbabwean economy, which relies on SMEs following the collapse of the economy due to the agrarian reform initiated by the government in the year 2000, faces economic crisis of large proportions as SMEs fail perform and grow. Aim: The overall aim of the study was to develop a strategic financial management framework for SMEs towards improving performance and growth. Study setting: The study was conducted in Mashonaland West Province of Zimbabwe, a relatively impoverished community that rely on SMEs as a source of livelihood. Methods: The study employed the mixed method research design that include the quantitative, and qualitative methods gathering data from a target population of 640 SMEs selected from the furniture, steel, metalwork, retail, confectionary, and the hospitality sectors. Cluster, and stratified sampling techniques were used to select 240 participants for the quantitative study while purposive sampling technique was used to select 21 participants for the qualitative study. Quantitative data was analysed using the Statistical Package for Social Science (SPSS) version 25 with qualitative data analysed using N-Vivo and thematic analysis. Results: The main study findings revealed that SMEs across the province partially applied SFMPs which include developing a vision that guides the business, opening a fixed asset register to serve as collateral security, bulk stock ordering, and networking. Conclusions: The study concluded that SFMPs were critical for SME performance and growth, and that SMEs should embrace the practices. The study therefore recommended the implementation of the FNBE11 framework by SMEs across the province to ensure sustenance of growth and performance. The recommended framework would compel SMEs to be visionary, invest in fixed assets as collateral security, open bank accounts that provides creditors/financiers with solid financial history used as the basis to seek funding.
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    Strategic management in construction firms with focus on small and medium enterprises
    (2021-05) Rambaruth, Amit; Adam, Jamila Khatoon
    Small and Medium Enterprises (SMEs) play a vital role in the economy and have contributed significantly to the growth of the economy, however, there is still a high failure rate. Many face a threat of failure within the first few months of establishment and the lack of strategic planning may prevent them from achieving their full potential. The aim of the study is to investigate Strategic Management in Construction Firms with Focus on Small and Medium Enterprises. The study intends to conduct a full investigation into the use of strategic management amongst SMEs. The findings will provide insight for SMEs on whether or not there are any benefits in adopting a strategic plan. The research will address the factors that influence the adoption of Strategic Management in an organisation, to identify influencing factors that contribute to strategic management to improve performance and to identify challenges faced by SMEs in implementing a strategic plan. There is a need for a clear understanding of the extent to which SMEs use strategic management in their organisation and the challenges that they are experiencing in strategic management. The data were collected from 105 small and medium enterprises in the eThekwini region using an online survey tool. The respondents were asked to complete a self-administered questionnaire. The data for this study was then analyzed using Statistical Packages for the Social Sciences (SPSS) version 26.0. The research concluded that that majority of the eThekwini-based SMEs in the construction industry are applying strategic management practices in their business and through this application they have improved the performance of their business. The study also concluded that there were high levels of agreement with the influencing factors that drove SMEs to adopt a strategic plan and high levels of agreement with the contributing factors of strategic planning in improving performance of the business. Furthermore, the study found that there were high levels of agreement with the challenges facing the implementation of a strategic plan in an organisation. Given, the positive results of strategic management, it is recommended that SMEs adopt strategic management in their businesses and attain the necessary knowledge that is required to implement a strategic plan. It is also recommended that SMEs develop procedures and policies to address the challenges faced in implementing a strategic plan, thereby, ensuring effective strategic planning in their operations.
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    The external environment’s effect on management and strategy : a complexity theory approach
    (Emerald Group Publishing, 2007) Mason, Roger Bruce
    Purpose – This paper seeks to investigate the influence of the external environment on the choice of strategic management activities, from a chaos and complexity perspective, since a business environment is a complex adaptive system. Design/methodology/approach – The study in this paper was of an exploratory nature, using the qualitative techniques of case study, depth interviews and document analysis to collect data from two companies each in the IT and packaging industries, namely, more successful/less successful companies. Findings – The paper finds that first, it was proposed that more successful companies in turbulent environments would use radical, fast and disruptive strategies. Furthermore, strategy making should be a democratic, bottom-up process and should be organic, self-organising, adaptive and emergent. The results confirmed these propositions. Second, it was proposed that more successful companies in stable environments would use more traditional management and strategies and more formal strategy planning activities. The findings did not confirm this proposition, probably due to the fact that in reality a truly stable environment does not exist in South Africa. Originality/value – This paper is of benefit to managers and strategists by emphasising a new way to consider the future management and strategies of their companies. Since businesses and markets are complex adaptive systems, using complexity theory to increase understanding of how to cope in complex and turbulent environments is necessary, but has not been widely researched.