An investigation into the window of opportunity for a small to medium size enterprise in the South African plastics industry as a manufacturer of industrial plastic wrapping

De Kock, Evan (2003-12)

Thesis (MBA)--Stellenbosch University, 2003.

Thesis

ENGLISH ABSTRACT: The South African business environment is undergoing drastic changes. Unemployment is on the increase, globalisation is becoming a serious factor to contend with, competition in many industries is increasing and the South African government is pursuing more international investments. All these factors contribute to these changes. Many companies are rationalising to ensure competitiveness within the South African economy and to ensure that products are competitive with international brands entering South Africa. Increasing unemployment in South Africa is forcing individuals to develop an entrepreneurial spirit. The only method to curb this wave of unemployment is to invest in a small to medium size enterprise. Entrepreneurs in the USA have permanently altered the economy of the USA in the past 30 years. It is felt that this entrepreneurial spirit will also change the South African economy in years to follow. This research project analysed and discussed the window of opportunity for a small to medium size enterprise manufacturing plastic wrapping. The Plastics Industry Analysis Framework was developed to ensure a comprehensive insight into the plastics industry of South Africa. This framework is the combination of the Five Forces Model of Competition and the General Framework for an Industry Analysis, both developed by Michael Porter. The research found that the plastics industry is currently undergoing drastic changes, specifically in regard to South African legislation. It was also found that the plastics industry historically grew by 5% per annum, however, in recent years this growth was negative. Since 1998 the plastics industry reduced in size by 7,1%. Legislation in regard to plastic bags has had a major impact on the plastics industry. The research found that nearly 2000 additional jobs have been lost. The research found that the window of opportunity for a small to medium size plastic wrapping enterprise is limited. The effect of the new legislation on plastic bags is not clearly known, however, it has already negatively influenced the plastics industry. Opportunities do exist within other market sectors of the plastics industry of which recycling and export market sectors are prime examples. Future opportunities within the plastics industry will have to be carefully analysed to ensure success of any new venture.

AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse sake-omgewing ondergaan tans drastiese veranderinge. Verhoogde vlakke van werkloosheid, die bedreiging van globalisering, die kompetisie tussen industrieë, sowel as die Suid-Afrikaanse regering se strewe na internasionale beleggings, dra alles by tot hierdie veranderinge. Suid-Afrikaanse maatskappye rasionaliseer nie nét om kompeterend te bly binne die Suid-Afrikaanse ekonomie nie, maar ook dat hulle produkte kompeterend moet wees teenoor internasionale handelsmerke wat Suid-Afrika binnekom. Die verhoogde vlakke werkloosheid forseer individue om 'n entrepreneuriese denkwyse te ontwikkel. Belegging in 'n klein tot medium grootte besigheid is die enigste manier om werkloosheid teen te werk. Entrepreneurs in die VSA het dié land se ekonomie in die laaste 30 jaar permanent verander. Daar word gespekuleer dat hierdie entrepreneuriese denkwyse in die toekoms kan bydra tot veranderinge in die Suid-Afrikaanse ekonomie. Hierdie studie het die geleentheidsvenster van 'n klein tot medium grootte vervaardiger van plastiekfilm ondersoek. 'n Analitiese raamwerk is ontwikkel om 'n volledige begrip van die Suid-Afrikaanse plastiekbedryf daar te stel. Die raamwerk is saamgestel uit navorsing van Michael Porter, met spesifieke verwysing na kompetisie binne industrieë en 'n algemene raamwerk om industriëe te analiseer. Die ondersoek het getoon dat die plastiekbedryf tans drastiese veranderinge ondergaan, met verwysing spesifiek na Suid-Afrikaanse wetgewing. Histories het die plastiekbedryf jaarliks met 5% gegroei, maar negatiewe groei is die afgelope jare waargeneem. Sedert 1998 het die plastiekbedryf met 7,1% in grootte gekrimp. Wetgewing, met betrekking tot plastieksakke, het 'n groot impak op die plastiekbedryf gehad. Navorsing het getoon dat ongeveer 2000 bykomende werkgeleenthede verlore gegaan het. Die ondersoek het bewys dat die geleentheidsvenster vir die klein tot medium grootte plastiekfilm vervaardiger, beperk is. Hoewel die totale uitwerking van die nuwe wetgewing op plastieksakke nog onbekend is, is daar reeds 'n negatiewe tendens in die plastiekbedryf waargeneem. Geleenthede bestaan egter in verskeie ander marksektore binne die plastiekbedryf waarvan herwinning- en uitvoermarksektore voorbeelde is. Deeglike analise van geleenthede in die plastiekbedryf kan sukses in 'n toekomstige besigheid verseker.

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