British Steel: a Turnaround under Public Ownership

This case history of British Steel Corporation (BSC) is based on personal experience: the author was advisor to the Chairmen between 1976 and 1981 - the period when the company, still publicly owned, adopted the critical measures on which the turnaround was founded. BSC has been a model for a successful heavy industry turnaround and subsequent privatisation, even if some of its circumstances were unique. This article argues that it was the management rather than government which created the framework for change and that the steel strike of 1980, seen at the time as a disaster, became the watershed for fundamental change. Several of the principal actors achieved effects which were the opposite of what they intended: the article is about irony as well as steel.     

Peter von Staden. Business-Government Relations in Prewar Japan

Business–Government Relations in Prewar Japan by Petervon Staden deals with the Japanese iron and steel industry fromthe late 1910s through the early 1930s. The period was the turbulentyears for the industry, finally leading to the formation ofJapan Steel Corporation in 1934. Japan Steel Corporation wasa huge production firm, by Japanese standard, whose market sharewas over 90 percent in pig iron and over 50 percent in finishedsteel of the Japanese market, so that it became virtually amonopoly firm. How and why was such a semimonopoly iron     

Rewriting History: the Early Sherman Act Monopolization Cases

This paper reviews two early precedent–setting US antitrust decisions and asks a series of counter–factual questions. What if the Standard Oil Company had not been broken into 34 pieces? What if the United States Steel Corporation had been fragmented? It traces the qualitative evolution of the Standard Oil fragments, following the 1911 divestiture decision, and the corresponding history of United States Steel. It then undertakes quantitative analyses of the survivors' market share trends and the comparative productivity growth, average plant sizes, price — cost margins, and net exports for petroleum refining, blast furnaces and steel from 1899 through 1939. At first, the post–divestiture performance did not differ much between the two subject industries. However, by the 1930s, competition intensified in petroleum refining and the decline of the Standard Oil fragments' market shares came to a halt. In the steel industry, however, competition continued to be mild. A lethargic United States Steel held a price um brella over its rivals and steadily lost market share. Steel companies were ill–prepared for rising import competition during the 1960s and 1970s. The paper concludes that the 1911 break–up of Standard Oil had few deleterious short–run consequences and, by shaping a more competitive environment, it had a decidedly positive long–run effect.     

Trade Patterns in the Automobile Industry: Some Evidence from South Africa

In this article the authors analyze trade patterns in the South African automobile industry using disaggregated harmonized system product-level data. The significance of intraindustry trade is estimated and separated into patterns of horizontally differentiated (by variety) intraindustry trade and vertically differentiated (by quality) intraindustry trade. The results indicate the presence of significant levels of intraindustry trade in automotive trade flows between South Africa and bilateral trading partners. In accordance with theoretical expectations, the empirical investigation reveals that intraindustry trade in South Africa's automobile industry is dominated by vertical intraindustry trade. Moreover, in recent years the analysis reveals some evidence that, within vertical intraindustry trade, South Africa's automobile industry produces and exports high-quality automotive products aligned with international fragmentation-based production and trade.     

Apartheid and business: Competition,monopoly and the growth of the malted beer industry in South Africa

The South African brewing industry experienced enormous growth in the apartheid era, following the lifting of prohibition on the sale of ‘European liquor’ to Africans in 1961. Successive international brewers and local entrepreneurs sought to benefit from increased demand in the 1970s but were unable to withstand competition from South African Breweries (SAB), the dominant player in the industry. A decade of intense competition in the brewing industry ended with the intervention of the cabinet of the Afrikaner Nationalist government. SAB's status as ‘sole supplier to the industry’ remained virtually unchallenged until the demise of apartheid and the end of South Africa's international isolation. The end of apartheid and changes in the global brewing industry brought renewed competition to the South African beer market in the late 1990s and early 2000s.     

Welfare Policy in German Big Business after the First World War: Vereinigte Stahlwerke AG, 1926–33

According to A.D. Chandler, Jr, the rise of organisational capabilities in German enterprises was decisive for the international economic success of the German Reich before 1914. This article deals with the changes in the organisational structures of enterprises through concentration and diversification and their consequences for welfare policy in German industry. The central question is to what extent the changing organisational structures affected the quality and quantity of welfare provided by companies. The interactions between welfare policy and organisation can be illustrated by the Vereinigte Stahlwerke AG (VSt), the world's second largest iron and steel combine, next to US Steel, in the first half of the twentieth century. After a survey of the traditions of business welfare in Germany since the early nineteenth century, important aspects of industrial welfare policy, such as health insurance, company stores and housing, are analysed in the context of the VSt's organisational development between 1926 and 1933.     

The Influence Of Board Diversity On Company Performance Of South African Companies

A board of directors forms one of the pillars of a robust corporate governance framework. Board diversity can offer both challenges and opportunities for a company. In this article we investigate whether diversity of a board influences company performance as well as the change in company performance for the Top 100 South African companies listed on the Johannesburg Securities Exchange in 2013–2015. Tobin’s Q and Return on Assets are used as performance measures. Our findings show that the proportion of women on a board, the number of directors with a business qualification and board size are significantly positively related with the performance of South African companies, whereas the ethnic diversity of a board is significantly negatively related with the performance of South African companies.     

Industry Structure as a Competitive Advantage: The History of Japan's Post-war Steel Industry

This article examines the role of the Japanese government in the development of Japan's post-war steel industry. It argues that the Japanese government's industrial policies facilitated the rapid growth and success of Japanese steel companies in the world market. During the early post-war years, the government instituted a set of comprehensive policies which constrained the supply of steel in Japan's market and contributed to the development of large-scale plants and the full exploitation of the economies of scale in steel manufacturing. The Japanese steel industry's sizable cost advantage, of course, derived from more than government policies alone. But, as this article will argue, through the Ministry of Trade and Industry, the Japanese government used its power to exploit the economics of capital-intensive industries and accelerate the formation of an efficient steel oligopoly in Japan.     

Redressing Mining Legacies: The Case of the South African Mining Industry

The South African mining industry is challenged by the need to address a number of legacy issues that promote a “rear view mirror view” of the industry and fan discontent leading to potential policy change. This article considers how this industry can engage more constructively and proactively with its past by outlining the choices for an overarching remedial theory and forms of engagement. After considering how the South African mining industry fared before the country’s Truth and Reconciliation Commission, the article examines recent conflicts in which the legacies of migrant labour and silicosis have been implicated. The article concludes that the past is unlikely to be addressed through a uniform process, and that the industry would do better to be more attentive to the remedial theories and limitations and opportunities inherent in multiple forms of engagement, as these manifest in flashpoints of conflict that invoke legacy issues.     

South African Managers' Perceptions of Prospective South African-US Joint Ventures

Abstract

This study explores South African managers' expectations of prospective South African-United States international joint ventures. One hundred and three middle level South African managers responded to a theory-based original survey questionnaire that included questions about various aspects of prospective US-South African joint ventures. US companies invest in South Africa to gain access to its market and South African companies get into joint ventures with US companies to tap into their financial resources. US government's imposed tariffs and South African government's administrative barriers seem to be the most crucial problems for the prospective joint ventures. Implications for international managers are offered.     

Do Anglo countries still form a values cluster? Evidence of the complexity of value change

To what extent does the Anglo Cluster remains a cultural cluster in today's managerial and professional workforce? Across six Anglo countries (Australia, Canada, New Zealand, South Africa, U.K., and U.S.), we found significant differences in values orientations (openness to change, conservation, self-enhancement, and self-transcendence values) that challenge the concept of a cohesive Anglo cluster. We also explored the influence of micro-level factors on values orientations and found consistent life-stage and gender differences across countries. We conclude that, even within a group of countries perceived as similar, multi-level analyses are needed to fully capture the essence of values differences across and within countries.     

The Relation Between Ethical Behaviour and Workstress Amongst a Group of Managers Working in Affirmative Action Positions

Unethical acts and reported cases of corruption and commercial crimes in South African business are increasing. Literature studies showed that risk groups (for instance South African managers in affirmative action positions) are functioning in a stressful environment which can give rise to unethical acts. Results pointed out that high stress correlates substantially with: to claim credit for a subordinate's work; to fail to report a co-worker's violation of company policy, to offer potential clients fully paid holidays; and to purchase shares upon hearing privileged company information. In the light of this a number of recommendations were made.     

Anglo versus Hispanic Children's Influence on Parental Purchase of Cereal

Children's influence on parental purchases of cereal was investigated by unobtrusively observing 15 pair of Anglo and 15 pair of Hispanic children and their parent(s) in the cereal aisle of Allentown, Pennsylvania grocery stores. Tabulation was kept on whether the child did or did not influence the purchase behavior of their parent(s). It was found that overall, children had a statistically significant influence on their parents' purchase behavior (p < .01). Although a percentage difference existed, there was no statistically significant difference between the Anglo children's influence and the Hispanic children's influence on their parents' purchasing behavior of cereal (p < .05).     

Argyll Motors Ltd: A Corporate Post-Mortem

This article analyses for the first time the failure of a key motor manufacturing company, Argyll Motors Ltd, which by 1906 possessed Europe's largest and most up-to-date vehicle production plan, located at Alexandria, near Glasgow. Building upon the recent discovery that the company was financially mismanaged, the article goes on to examine its marketing policies and practices, its design and production technologies and its strategic management decisions. It concludes that the proximate cause of the firm's collapse was financial mismanagement, which, complicated by a recession, precipitated liquidation within three years. This conclusion has implications for explanations of the early Scottish motor industry's failure.     

Case Study

ABSTRACT

This is a case study of one of the highest growth restaurant chains in overall system wide sales and unit growth in restaurant industry history as reported by The Nation's Restaurant News(2001). The inception of a small fledgling restaurant chain in Atlanta, Georgia to a multi-billion dollar company has changed the shape of restaurant industry growth and development. The practices of franchise growth and market penetration have allowed Applebee's International to record double digit profits over the last ten years. Future growth patterns, market saturation, and changing consumer preferences will be challenges that Applebee's will face in the future. This case study will outline Applebee's history and competitive strategies that have made the company successful. Further along in the case study an analysis of franchising in the restaurant industry and the franchising strategies Applebee's has produced over the years. This study will conclude by uncovering future issues that Applebee's may face and pose future questions to ponder about the company.     

Critical success factors determining performance of cross‐border acquisition: Evidence from the African telecom market

This study investigates the factors affecting Bharti Airtel's cross‐border postacquisition performance in an African market. This study describes the relationships among various factors such as technical capability, affiliated firm's absorptive capacity, and organizational learning capabilities, which determine the successful operations of the Zain acquisition deal in South Africa. This paper adopts a qualitative approach to identify factors that influence the postacquisition performance. Seven factors are identified based on the literature. Consequently, it has become a necessity to encapsulate these factors in suitable proportions. In this study, we have developed a total interpretive structural modeling (TISM) to analyze the postacquisition performance of Bharti Airtel in South Africa. Our research has highlighted six dynamic factors (organizational learning capability, knowledge management, technology capability, technology relatedness, acquirer's absorptive capacity, and national culture difference) that affect the firm's postacquisition performance. The interpretive structural model (ISM) and total interpretive structural model for postacquisition performance are built‐up. The developed TISM will support academics and practitioners to develop their understanding of acquisition performance of parent companies in the context of telecom business in the South African market.     

The World Is Watching: Polaroid and South Africa

This article examines the Polaroid Corporation’s "experiment"in South Africa during the 1970s, which began after AfricanAmerican workers pressured the company to pull its operationsout of South Africa in protest of the white minority government’sapartheid policies. It argues that Polaroid’s initiatives,little studied until now, led other American companies to questiontheir presence in South Africa and inspired both student divestmentmovements at Harvard and other colleges and universities andthe efforts of Leon Sullivan, whose 1977 "Sullivan Principles"urged American companies to treat their workers in South Africaas they would treat their counterparts in the United Statesin an effort to battle racism and apartheid. Despite Polaroid’sefforts, engagement with South Africa and apartheid proved futile,which initiated a larger movement to completely disengage fromSouth Africa.     

Current Trends and Future Challenges in the South African Advertising Industry—An Introductory Review

ABSTRACT

The purpose of this article is to provide an introductory review of the structure of the South African Advertising Industry, to identify and discuss the main issues and future challenges in the South African Advertising Industry, and to recommend applicable managerial strategies to the main role players.

The South African society has been involved in a process of transformation, a search for identification, and a conscious effort towards non-discriminatory practices, direct or indirect, for the past eight years. This is apparent in current marketing and advertising practices, which remain firmly focussed on the new breeds of consumers-including the growing young black market. This new challenge to marketers includes a paradigm shift from established practices to an embracing of new research methods, which could address the complexities of reaching, communicating, and meeting the demands of a multicultural consumer society in South Africa. The marketing challenge also indicates the necessity of redefining the largest audience groups in categories that reinterpret race from a South African perspective.

A review of the literature was undertaken, followed by discussions with knowledgeable industry spokesmen. The survey of racial issues in South Africa forms part of an on-going project, as it is envisaged that the shape of the industry will change dramatically during the next decade.

Key managerial implications focus on perspectives and attitudes towards changing employment and empowerment ratios, that would require innovative interpretative studies to contribute towards an understanding of the current challenges. This includes the elimination of stereotypes and linguistic ethnocentrism, black empowerment, training in multicultural advertising communication, and the aligning of conflicting cultures with corporate vision.     

Global strategy gone astray: Maersk's big box boats and the world shipping industry

A.P. Moller‐Maersk Group (A.P. Moller‐Mærsk AS in Danish), commonly known as Maersk, is the world's largest global shipping conglomerate from Denmark and carries a rich history and corporate heritage in the industry. The company operates large container ships which are mostly known as “big box boats” in the industry. By using interdisciplinary literature and the shipping industry's operational routes and corporate developments, this case‐based research analyzes and discusses Maersk's internationalization and its global strategies. Although Maersk aggressively sought internationalization and company‐specific expansion, its global strategy and international expansion areas have encountered problems because of the slowdown of the global economy, de‐globalization, and the U.S.–China trade tussle. The case‐based research analyzes and discusses these issues within the areas of international business and the company's global strategies and industry‐specific competition. Analysts and industry observers believe that Maersk will continue to be a major shipping and logistics firm and will thrive in global markets. At the same time, the company will be impacted by the changing competition, regulatory forces, and new technologies in logistics and global shipping. This case study also provides future developments and growth prospects of Maersk and the shipping industry.     

The return of 7-eleven… from Japan: The vanguard program

This article examines how Ito-Yokado Co. Ltd. of Japan, the long-time licensee of the Southland Corporation's 7-Eleven store chain, has come back to the United States to acquire its parent company and has begun to implement the Japanese firm's management techniques at 7-Eleven stores in the United States. While we have been fully aware of the Japanese competitive juggernaut in the consumer durable products industry, we rarely hear about it in services, let alone in retailing. As the Japanese licensee's takeover of the American convenience-store parent company suggests, the next generation of Japanese competition may come unexpectedly from service sectors such as retail business.