Dylan Colbet
Grade 12 Business
In Depth Case Study Analysis
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Question 1
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Question 2
1. Employees of Mr Price:
Mr Price Group's 'most valuable asset' as stated in the annual integration report is their employees. Through their concentration on sustainability, it can be assumed that Mr Price is certainly up to par with their employee's demands.
This can be evaluated through the way the Mr Price Group engages with their employee's:
1. Induction programmes
2. Performance reviews, fireside chats and career planning discussions
3. Training and development
4. Culture and climate surveys
5. Internal media ' Red Cap Radio and TV
6. Team meetings
7. Results presentations
8. Divisional events, including awards events
9. Whistle-blowers' hotline
Looking at the above we can say that Mr Price strives towards the sustainability of the employees of the business as they ensure the employees hav a higher staff moral and focus on creating a good relationship with the workers. With Mr price meeting the demands of the employees it creates a positive workplace and benefits the business internall
2. Suppliers of Mr Price:
Mr Price Group understands that the 'key to their performance' and 'core to their strategic positioning' is their suppliers.
They engage with their suppliers through:
1. Supplier days
2. Regular meetings
3. Performance reviews
Improved communication: Communication is a direct result of closer collaboration with suppliers. For them to be aware of the requirements that the customer has, there has to be communication. Suppliers get to have a voice: The collaborative approach requires communication to be two way, with suppliers being able to report any problems to the customer and hopefully they can then work together to ensure that these are eliminated. Continuity of supply: The process of managing supply chain risk improved because the supplier is able to plan effectively for the future.
3. Customers of Mr Price:
Mr Price would not be as successful as it is today without its loyal customers. Their sole purpose is to meet their customers' needs and wants in order to keep them happy and loyal.
Mr Price engages with their customers through:
1. In-store interaction
2. Traditional and social media
3. Customer and market surveys and panels
4. Product testing
5. Inbound and outbound call centres
6. Advertising campaigns and competitions
7. Live chat feedback on e-commerce sites
8. Mystery shopper programme
9. Feedback from affiliate publisher partners in foreign markets
By looking at the abouve attributes we are able to say that mr price aims at keeping their customers happy by meeting their demands. This will help gain customer loyalty and ensure that mr price has sustainablity in the relationship with their customers.
4. Shareholders of Mr Price:
Mr Price's large source of income is dependent on their shareholders.
The business engages with their shareholders through:
1. Annual General Meeting
2. Presentations to Investment Analysts Society, results roadshows and one-on-one meetings
3. Attendance at investor conferences
4. Annual Integrated Report
5. Annual results booklet
6. SENS announcements, trading updates and press releases
7. Group website
Mr. price deal with these engages proactively, while ensuring that they maintain a balance in their treatment of stakeholders. These annual reports help keep the shareholders informed and keep the shareholders satisfied with the company, which retains them and attracts more possible shareholders.
Question 3
Mr price deserves the title as they strive towards career oppertunities and also help develop the current empolyees.
Capacity building Driven by the ambitions of our Group to grow internationally, as well as locally, we have continued to invest in the development of our human capacity.
Associate engagement Inspired by our core values of Passion, Value and Partnership,
our energetic and entrepreneurial culture continues to be central to the Group's successful performance.
Career and personal development We offer outstanding career opportunities and associates are actively encouraged to pursue their ambitions within our dynamic and evolving working environments.
Performance recognition and reward Our Group thrives on happy, motivated employees. We incentivize and reward generously for exceptional performance, strongly encouraging the achievement
of personal goals.
Human capital management (hcm) systems The continuous transformation of our human capital management capabilities to cater for our growth into new markets and trading locations includes ongoing, proactive
Talent acquisition and development Developing and retaining 'homegrown' talent is a strategy that has served the Group extremely well to date and will continue to be our core area of focus. However, attracting the right retail skills We use this opportunity to introduce the core values and the benefits of belonging to an exciting working environment.
Talent development We pride ourselves on the number of training opportunities taken up
by our associates. Recognizing
that attracting, developing and retaining world-class retailers is critical to our competitiveness and long-term sustainability, we strive to continuously improve the quality and delivery of training through our MRP Academy.
Management and leadership development
The Group recognizes and rewards leadership innovation, and managers are encouraged to build their own entrepreneurial leadership styles. Their growth and development is supported by personal and career development discussions, leadership assessments, creation of personal development plans and regular performance feedback.
By evaluating the above schemes of mr price it is only fair that they ear the title as they are a company who strives to help build the future careers of the employees.
Question 4
Corporate governance is The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community).
Mr price ensures good corporate covernance through
Clear Strategy
Good corporate governance starts with a clear strategy for the organization. Mr price has a clear vision, mission, goal and objectives, which puts the business in a good positioning.
Discipline
Corporate policies are only as effective as their implementation. A company's management can spend years developing a strategy to push into new markets, but if it can't mobilize its workforce to implement the strategy, the initiative will fail. This will ensure that they act in an ethical manner
Fairness
Companies also must be fair to their customers, both for ethical and public relations reasons. Treating customers unfairly, whatever the short-term benefits, always hurts a company's long-term prospects.
Transparency
When employees understand management's strategies and are allowed to monitor the company's financial performance, they understand their roles within the company. Transparency is also important to the public, who tend not to trust secretive corporations.
Social Responsibility
Social responsibility at the corporate level is increasingly a topic of concern. Consumers expect companies to be good community members, for example, by initiating recycling efforts and reducing waste and pollution. Good corporate governance identifies ways to improve company practices and also promotes social good by reinvesting in the local community. E.g. mr price young hero's
Self-Evaluation
To look at how the business operates and the progression of the business
Mr price ensures ethics through
Codes of conduct
Directors and associates are required to maintain the highest ethical standards. On joining the Group, every associate receives
a copy of the Business Code of Conduct and is required to sign as acknowledgement of acceptance of the Code. On an annual basis, all senior associates of the Group are required to submit a declaration confirming their continued compliance with the Code. Any areas of non-compliance or any perceived conflicts of interest are addressed through the appropriate levels of divisional management, with ultimate reporting to the CEO and Board
Question 5
Article
OPINION: Malema to be 'big winner' in elections
27 May, 04:13 PM
Watch as political analyst Justice Malala weighs in on the likelihood of a coalition between the Economic Freedom Fighters (EFF) and Democratic Alliance (DA).
Speaking to an audience of hundreds of people at Deloitte's State of the Nation breakfast on Friday, he predicted significant growth for the Economic Freedom Fighters (EFF) in the elections later this year.
Malala is of the opinion that despite Malema's blighting tax troubles, the EFF leader would be "the big winner" in the 2016 municipal elections. Malala toyed with figures of 12 to 15 per cent growth for the party (up from about 6 per cent in 2014) based on the surveys of other political parties.
Elsewhere, Malala predicted a disastrous outcome for South Africa's economy if Malema came into power. Of course, the analyst's opinions will have to be tested in the upcoming municipal elections.
Malala said, "The key thing with Julius Malema is that he is speaking to a constituency that largely didn't even vote in 2014 or 2009 and it's young people."
"Julius Malema is tapping into a whole new market."
So how will small businesses be affected?
Change in laws
Economic recessions require business managers to adapt their management methods to account for the fear and anxiety of employees, customers and investors. If a change occurs, management must handle the change through the lens of the recession. Managers who react to business changes without considering the recession could destabilize their business and fall victim to the ailing economy.
If there is a change in government it could affect the way in which the business operates and would have to change management. Change in management could lead to unhappy staff, which depletes the sustainability with employees. With change in government it could affect the economy and weaken the rand, which employees become concerned about their job stability and, in turn, are more likely to be cautious with expenditures, which leads to decreased revenue for small business owners. A slow profit stream can make it difficult for a small business to repay creditors, which can negatively impact its long-term viability. A business facing financial struggles is far less likely to qualify for loans for capital expenditures and operations, which limits growth opportunities. Many small businesses also are forced to downsize their workforce during a slow economy. This limits their ability to serve customers and contributes to the unemployment rate, which furthers slows the economy.
If this happens it could have a negative impact on the business and affect their sustainability with their stakeholders and lead to a downfall in the business and could eventually lead to the closing of Mr. price.
Question 6
Overall I believe mr price running of the business is sustainable by looking at their good business management and their reationships witht their stakeholders.
Mr price positives
1. Assess yourself
2. Assess your product
3. Know your market and competitors: It is essential that you know your market, as
4. The ability to recognize opportunities
5. Costing and pricing:
6. Good terms of trade and paperwork:
7. Keep clear records
Mr price negatives
1. Productivity
2. -Investments in research and development
3. -Cost structure
4. -Future profitability
5. -Future debt rating
6. In store services
above are a few factors which mr price can work on in order to ensure it maintains their profatibility.
Reference list
' mr price, 2015, http://www.mrpricegroup.com/MRPG/media/MRPG/AnnualReports/2015/42197_MRP_Online_AR_2015.pdf, viewed july 18th
' hearst newspapers, 2016, http://smallbusiness.chron.com/seven-characteristics-good-corporate-governance-57207.html, viewed july 20th
' news24, 2016, http://www.news24.com/Video/SouthAfrica/News/opinion-malema-to-be-big-winner-in-elections-20160527, viewed july 20th
' weiner & partner, 2016, http://www.swotanalysis24.com/swot-m/73349-swot-analysis-mr-price-group.html, viewed july 24th