A strategic model of macro-economic and supply chain factors that influence the decision-making process of SA retailers when expanding their footprint in African countries

Engelbrecht, Lizet (2018-03)

Thesis (MEng)--Stellenbosch University, 2018.

Thesis

ENGLISH ABSTRACT: As part of the era of globalisation, the foreign market expansion of retailers is a trend that draws the attention of economists and researchers alike, and is an ever-expanding field of scholarly review. Africa is no exception to the process of globalisation, and as the local South African retail market becomes saturated with increasing levels of competition, large retailers are gradually experiencing more pressure to expand their footprint into other African countries. Foreign market expansion is a business decision that requires a structured analytical framework to assist in the decision-making efforts of potential foreign investors. Models can be synthesised to assess and prioritise which market, country, or region to enter next; what the opportunities and risk of such a move will be; and what the business case would look like in terms of cost and benefit. Only a limited amount of literature discusses this topic in the specific context of South African retailers, creating an opportunity for further research. This paper presents a strategic decision-support model to assist South African retailers in making well-informed decisions about which Sub-Saharan African market to enter next. A holistic approach is taken that covers various disciplines, including supply chain management, economics of development, and financial management.

AFRIKAANSE OPSOMMING: Die uitbreiding na buitelandse markte as deel van die globaliseringsera, is ‛n tendens wat die aandag van ekonome en navorsers trek en is ‛n studieveld waarop deskundiges toenemend fokus. Afrika is geen uitsondering in die globaliseringsproses nie, en soos die plaaslike Suid-Afrikaanse kleinhandel ‛n versadigingspunt in mededingingsvlakke bereik, word groot kleinhandelaars gedwing om hulle in ander Afrika-lande te vestig. Uitbreiding na buitelandse markte is ‛n besigheidsbesluit wat op ‛n analitiese raamwerk baseer moet word ten einde beleggers te help in hulle besluitnemingsproses. Modelle kan saamgestel word om vas te stel watter mark, land of streek vervolgens ‛n prioriteit behoort te wees vir besigheidsuitbreiding; watter geleenthede en risiko so ‛n skuif inhou; en wat die besigheidsplan ten opsigte van koste en voordele inhou. Daar is beperkte navorsing oor dié onderwerp in die Suid-Afrikaanse kleinhandelskonteks, wat ‛n gaping skep vir verdere navorsing. Hierdie tesis bied ‛n strategiese besluit-ondersteuningsmodel om Suid-Afrikaanse kleinhandelaars te help om ‛n ingeligte besluit te neem na watter Sub-Sahara Afrika mark hulle volgende moet uitbrei. ‛n Holistiese benadering word voorgehou wat verskeie dissiplines soos voorsieningskettingbestuur, ontwikkelingsekonomie en finansiële bestuur insluit.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/103389
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