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1 The business environment
2 The task of management
3 Operations management
4 Logistics management
5 Financial management
6 Human-resources management
7 Marketing management
8 Principles of entrepreneurship
9 The business plan
10 Entrepreneurship
11 Establishing a business
12 Introduction to general management
13 Planning
14 Fundamentals of decision-making
15 Organising
16 Leading
17 Organisational communication
18 Controlling the management process
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Purpose of this chapter
This chapter discusses the concept of systems thinking, because all aspects of a business, both internal and
external, are interconnected. This chapter examines how the micro-environment, the market environment,
and the macro-environment affect the success of a business, and it explains how to perform a SWOT
analysis.
Learning outcomes
This chapter should enable you to:

• understand the concept of systems thinking
• comprehend the nature and impact of the business environment
• explain the level of control that management has over the different organisational environments
• describe the micro-environment and how the various management functions affect the success of the
business
• discuss how the different role-players in the market environment affect the success of the business
• understand how the sub-environments in the macro-environment affect the business and its continued
existence
• analyse the impact of the environment on an organisation, using a SWOT analysis.
1.1 Introduction
Because a business is an open system, it is affected both by the forces within it and those outside of it. The
manager needs to understand how these forces affect the business in order to manage the consequences
(results) of these for the business. The business environment comprises anything that happens outside the
organisation which impacts upon both its current and future activities. Each organisation has a unique
environment that has distinct impacts depending on such factors as the type of product and service as well as
the market that they offer these products or services to.
1.2 The systems approach
The systems approach is based on the idea that all organisations are made up of interdependent parts that
can only be understood by looking at the whole.1 Any system consists of three components, namely inputs,
processes and outputs.
Figure 1.1 The organisation as a system
The inputs are all the things that are brought together in an organisation (human resources, natural resources,
capital and entrepreneurship). The inputs are then processed by carrying out the different management
functions (operations management, logistics management, financial management, human-resources
management, and marketing and public-relations management), with the end result being outputs in the form
of goods or services.
A business does not exist in a vacuum. Everything that happens, both within and outside the organisation,
affects the organisation. The easiest way to understand this is to think of the human body with its different
parts and organs. If any one of the organs does not function properly, it affects the functioning of the entire
body. For example, if a person stubs his or her big toe, this affects the body’s functioning by causing that
person to limp and be distracted by the pain.
A business organisation is governed by the same principles, namely: if any part of the system is not
functioning properly, it will affect the functioning of the whole organisation. For example, if there is a
problem in the human-resources department, this can affect all the other departments by demotivating
(making less enthusiastic) the employees and causing an overall drop in their performance, and therefore in
the overall performance of the business.
1.3 Organisational environment

A business’s organisational environment is the world outside the business as well as what goes on inside
the business.2 These work together in affecting the success of the business.
Figure 1.2 The organisational environment
The organisational environment has three parts:

• The micro-environment is the environment inside the business that consists of the different business
functions and the way they are managed.
• The market environment is the environment immediately outside the business, where the business gets its
resources from and trades its products. It comprises the suppliers, intermediaries, customers, and
competition of the business.
• The macro-environment includes all those factors that affect the business, including the natural,
technological, social, political, economic, and international environments.
An important point about these three parts of the organisational environment is the degree of control that the
manager has over each one.
The manager has direct control over the micro-environment. This is the environment inside the business
that the manager makes decisions about on a daily basis. These decisions relate to any of the functional
activities of the organisation, such as how the business will be marketed or how the operations will be run.
These decisions have a direct effect on the micro-environment.
Figure 1.3 Levels of management control over the three components of the organisational environment
The market environment, which is the environment immediately outside the business,is influenced by
management. For example, the decisions of management on advertising and pricing may attract customers to
the business. However, there are many things that management has little or no control over, such as the
availability of goods and skilled labour.
The organisation can be seen as a victim of the macro-environment, in that management has very little or
no control over events on the national and international levels. These are often the events that we hear about
on the news. Management has to deal with the effects of these events on the organisational environment. This
is why the SWOT analysis forms such an important part of the manager’s job description. (See Section 1.4.)
It is management’s responsibility to form strategies (plans) for the business to achieve a competitive
advantage that will eventually make the business a success.3 Rather than being passive victims of fate,
managers must be proactive (respond quickly) in managing the organisational environment. However, one of
the major challenges for management is dealing with the huge amount of information that is available, and
making accurate predictions based on this.4
1.3.1 The micro-environment

The micro-environment (also known as the ‘internal environment’) is the environment inside the business. It
includes the business functions (operations, logistics, finance, human-resources management, marketing and
public-relations) and the management tasks (planning, organising, motivating, leading, and controlling) that
are involved in running the organisation.
Figure 1.4 Relationships between the business functions in the micro-environment
The effectiveness of managers in carrying out the various management tasks has a direct effect on the
functioning of a business. To see this in action, think of two branches of a supermarket chain. The one store
functions well. The staff members are friendly and helpful, the shelves are full, the floors are clean, and the
food is fresh. The other store has unfriendly and unhelpful staff, they are continually out of stock of many
items, the food is stale, and the floors are often dirty. You will probably notice that in the first store, the
manager is present and actively involved with the staff, while in the second the manager is often absent, or if
present, he or she has very little to do with the other staff members and how they are performing. The success
of a business depends on how well the manager does his or her job.
The operations function is responsible for getting the products that the business sells. If the operations
function does not perform effectively, the business will not be able to supply its customers with the required
quantity and quality of products.
The logistics function is responsible for getting the right quality products, in the right quantity, at the
right time, and at the right price (purchasing), as well as for distributing the products of the business, either
within the organisation or by delivering them to the customer. If this function is not working well, the
products of the business will not be in the right place at the right time, at the right price, and the business will
lose customers.
The financial function must operate effectively to ensure that the business has enough capital to run the
business in both the short and the long term. It must collect debts and pay the creditors of the business. If this
does not work properly, the business will definitely fail.
The human-resources-management (HRM) function must get the right quality of employees for the
business and then look after them in the business, so that they stay, and help the business to achieve its goals.
The marketing function is there to tell potential (likely) customers about the products sold by the
business, and to persuade them to buy these goods and services. A business can have the best goods or
services in the world, at the best possible price, but if customers do not know about them, they will not buy
them. The business must also have a ‘positive image’ (attractive mental picture). If it does not, customers
may not buy its goods and services. The public-relations function is there to make sure that the business
keeps a positive image among its customers, as well as in the broader society. (Although the public-relations
function is a separate function, for the purposes of this book, it is dealt with together with the marketing
function in Chapter 7.)
1.3.2 The market environment

The market environment (also known as the ‘task environment’) is where the organisation conducts its
business. It is here that the organisation gets the inputs into the business from its suppliers and their
intermediaries, sells its goods and services to the customers, and competes for these customers with
competitors who sell the same or similar products.
The suppliers are other businesses that give the business its raw materials, if it is a manufacturer, and its
goods, if it is a retailer. It is essential that businesses have suppliers that can provide raw materials or goods
of the right quality, in the right quantity, at the right price, at the right time. If any of these requirements are
absent, it will affect the functioning of the business, and eventually its profits. Some of the consequences of
the absence of these requirements are illustrated in the table below.
Table 1.1 Consequences of ineffective suppliers
Product-requirement Consequences
problem
Poor quality • Customers will be dissatisfied.
• Manufacturing failures will result.
• Customers will buy elsewhere, and the business’s profits will decrease.
Not the right quantity • If too little is delivered, customers will be disappointed.
• If too much is delivered, stock will spoil in the store.
• Customers will buy elsewhere, and the business’s profits will decrease.
Not at the right place • If the product is not delivered where the manufacturing process requires it to be, work will
be interrupted.
• If the product is not delivered to the retail stores where it is required, customers will not get
what they need.
Too expensive • If the raw materials or processed ingredients are too expensive,the manufactured products
will be too expensive.
• Customers will buy somewhere else, and the business’s profits will decrease.
Intermediaries are the wholesalers and other businesses that act as ‘middlemen’ between the manufacturer
and the consumer. Each of these intermediaries adds their mark-up to the product. This is the percentage that
each adds to the price that they pay for the product, which is passed on to the next person in the supply chain.
The more people in the supply chain, the more expensive the end product becomes. If any of the
intermediaries are not functioning effectively, there will be a ripple effect, with the same consequences being
experienced as set out in Table 1.1.
Figure 1.5 An example of how intermediaries affect the end-cost of a product
Competitors are other businesses that sell the same or similar products or services. They create competition
for a business because they are rivals for the same customers; they may attract potential customers or tempt
existing customers away. The result could be lost profits for the business owing to:
• reduced sales
• reduced prices (to stay competitive)
• possible increases in advertising costs (both to keep existing customers and to attract new customers).
Finally, the customers of a business are the patrons who buy the business’s goods or services. These can be
members of the public, other businesses, non-governmental organisations, or government departments. The
bottom line is that if a business does not have customers, it will have no-one to buy its products. Then it will
not make a profit, which is the very reason why the business exists.
1.3.3 The macro-environment

The macro-environment is all the factors on the national and international levels that affect the success of
the business. These are the factors over which the management of the organisation has very little or no
control. These are events and circumstances to which the business is a ‘victim’. The best that management
can do is to try to predict these factors and deal with their consequences, which can be either positive or
negative for the business.
The macro-environment consists of a number of ‘sub-environments’, including the natural, technological,
social, political, economic, and international environments, which have a wide-ranging impact on business
activities.
Figure 1.6 Factors in the macro-environment
1.3.3.1 The natural environment
The natural environment includes the availability of natural resources, which are the raw materials that the
manufacturing industry uses, as well as matters such as the climate, weather patterns, and natural disasters.
Global warming affects South Africa

Global (all over the earth or ‘globe’) warming will have extreme and frightening effects on South Africa
over the next 40 to 100 years, which include higher temperatures and extreme weather changes. Some
climate experts estimate that by 2100 a third of the earth will be ruined by hunger, thirst, war, migration,
and death, as a direct result of global warming.5 One example where this is having an effect on business
in South Africa relates to water, which is critical to agriculture (farming) as well as many manufacturing
processes.
Global warming will be particularly severe in South Africa, which will suffer lower rainfall and
rising temperatures. Such weather changes will reduce water supply, and will cause major difficulties in
areas of the country that are already relatively arid (dry). The agricultural industry will be affected
particularly badly by these conditions. One of the alarming expert opinions in the second edition of The
Environmental Handbook: A Guide to Green Business in South Africa of August 2010, was that ‘If
urgent steps are not taken, South Africa will run out of water for future economic growth within the next
five years.’6
South Africans are also affected by changes in the natural environment in other countries. Recently,
prices of hazelnuts surged following cold late winter weather and bitter frosts that caused a poor harvest
in the nut’s chief exporter, Turkey, in 2014. This resulted in the price increase in products such as
chocolate spreads such as Nutella or nut-filled chocolate bars.7
However, the pressure of the natural environment is not all bad news. Some businesses have actually
profited by ‘going green’. An example of this is the Bembani Group, who provide sustainability
strategies for companies in South Africa, and a number of other Southern African countries. They are
involved in a number of environmentally sustainable businesses, such as their EnviroChoice, a system
that municipalities can use to switch off home geysers from a distance. They are also involved in a
project to recycle old tyres and turn them into shoes and conveyor belts.8
1.3.3.2 The technological environment
Technology is the processes by which people make tools and machines to influence and understand the
physical world. In 1970 Alvin Toffler wrote the book Future Shock,9 where he stated that the only thing we
can be sure of is change, and that this change is exponential (tremendously fast) as opposed to additive.
Nowhere can this be seen more clearly than in the changes in the technological environment.
Technology has enabled computers and machinery to become smaller, faster, and cheaper, and this is
happening at an ever-increasing rate. Think of the changes that have occurred in computing. The Sony
Playstation 2, which is already outdated, has more computing power than the computer that was used to put
the first man on the moon. Goods at till points are now scanned, when previously they were entered by hand.
Production lines that had dozens of employees are now mechanised and controlled by computers.
The key concepts here are invention, which is the discovery or creation of a new product or process, and
innovation, the process through which new ideas and inventions become a reality.10
A business that fails to keep up with the developments in the technological environment cannot remain
competitive, and will be overtaken by its competitors.
How smartphones have changed business

These are eight of the ways that smartphones have revolutionised how businesses operate:
1. Email and response times – checking emails and responding quickly, which is now often done on a
smartphone, has become an expectation for serious businesspeople.
2. Social networks are critical for many businesses – sucessfull businesses have a major social
network presence by which they share news and monitor their customers.
3. Affordable mobile apps are replacing productivity software – traditional, expensive office and
similar software programmes are being replaced by cheap and often free apps.
4. Easier travel opportunities – going on business trips, finding aeroplane tickets and accommodation
has never been easier with travel apps and GPS navigation apps as standard.
5. Mobile advertising has taken off – mobile advertising is very rewarding when appropriately targeted
and placed.
6. Telecommuting is becoming easier – thanks to modern technology, cloud computing, and
smartphones making telecommuting easier than ever before.
7. Technology costs are decreasing – smartphones are constantly becoming, cheaper making them more
accessible.
8. Less dead time – businesspeople can now be productive irrespective of the time and place.11
1.3.3.3 The social environment

The social environment is comprised of the characteristics of the society in which the business is located. The
statistical characteristics are referred to as the society’s demographics. These may include such details as the
average age, religion, culture, language, educational levels, degree of urbanisation, or any other relevant
characteristic. These are all issues that you will examine when defining your target market in Chapter 7.
SA retailers boycotted over Gaza war
Due to the 2014 Gaza conflict, an organisation called Boycott, Divestments and Sanctions against Israel
in South Africa (BDS South Africa) campaigned to boycott SA retailers that sell products sourced in
Israel. Woolworths, which sources, among other products, pretzels, couscous, matzo, figs, litchis and
mangoes from Israel, was targeted, despite the fact that they source less than 0,1% of their total products
from Israel.
CRITICAL THINKING
How important is public sentiment to a company? Woolworths bore the brunt of a campaign based on a
war halfway across the world, despite stocking only a small number of Israeli products. Can you think
of other examples of businesses that have been seriously affected by social pressures? What should
businesses do to manage such incidents?
1.3.3.4 The political environment

Politics can be defined as the competition for power within a society. The political environment is the
environment in which this competition takes place. A stable democratic environment where political parties
compete for power peacefully is helpful to conducting business. The political environment influences how
society functions in general.
An example of the impact of the political environment

During the 1980s, South Africa was in political and social upheaval. Industry was in turmoil, with
strikes and marches almost daily events. Violence was everywhere in the country. The National Party’s
army and police suppressed opposition by force, and the armed struggle hit back with regular bombings
and attacks on government targets. The United Nations had imposed sanctions on South Africa, which
meant that many goods could not be imported or exported. This had a dramatic impact on South African
manufacturers. Their markets were limited, and they could not get many types of raw materials and
spare parts. When they did get them, they cost much more than in other countries.
Another issue of particular concern in the political environment is the laws made by the government, and
whether they make business easier or harder. Laws are made by the ruling party and are based on their
policies. Some examples of legislation include:
• laws giving the tax rate for businesses
• laws that allow subsidies and tax breaks for new businesses
• labour laws to protect employees, but which can also cost money and trouble for the businesses
• Black economic empowerment (BEE) policies that require businesses trading with the government to have a
percentage of black owners.
1.3.3.5 The economic environment

The economic environment is a complex sub-environment with many factors that affect a business in
different ways. Economics is the science that describes and analyses the producing, distributing and using of
goods and services,12 and the role played by money or the lack of money. The economic environment is one
of the most important environments that a manager needs to be able to predict and deal with, as it is directly
linked to the profit and survival of the business.
The economy of a country refers to all the ways goods and services are produced, distributed and
consumed (used) by people and businesses. A healthy economy is one where new businesses are starting and
job creation is growing, which leads to more spending, and in turn leads to more businesses and jobs.
Many businesses rely on a customer’s disposable income, which is the bit of a person’s income over
which he or she has complete control.13 This is the income that the person has left after all the essentials
(such as housing, electricity, water, transport, and food) have been paid for.
The average income of individuals in a community, province or country determines the spending power
of a business’s potential customers. The higher the average income, the more money people will be able to
spend on goods and services. However, higher salaries push up the cost of goods, which results in more
products becoming less affordable.
The interest rate is the cost of borrowing money, which is calculated as a percentage of the amount
borrowed.14 Interest rates vary from time to time. This affects a business because it affects how much it costs
for that business to borrow money, and therefore affects how much profit the business makes. For example, if
a business took out a R100 000 loan, at an interest rate of 10% the business would have to repay R10 000
interest per year, while at an interest rate of 25% the business would have to pay R25 000 interest per year.
Productivity is the ratio between work-hours and the number of goods produced. Combined with the cost
of labour, this has a major impact on the cost price of goods in the production process. Poor levels of
productivity, accompanied by high labour costs, are one of the main concerns to South African industry.
Productivity levels and labour costs influence the ability of South African businesses to compete both
nationally and internationally.
Inflation is the term used to describe the decrease in the value of money in relation to the goods it can
buy over time.15 The lower the rate of inflation, the more money people have to buy goods and services.
When inflation increases, people have less money to buy goods and services because their money is being
spent on servicing debt (for example when interest rates go up, consumers’ bond and credit card payments
go up). The South African Reserve Bank aims to keep South African inflation at 6% per annum. Compare
this with Zimbabwe’s inflation rate, which is more than 10 000%. This means that in one year the price of a
loaf of bread increased from R5 to R5,30 in South Africa, but it increased 100 times in Zimbabwe.
The business cycle refers to increases and decreases in the levels of production and employment in a
country over time.16 This means that at times business is good in a country; while at other times things are a
lot tougher. This is similar to the changing of the seasons, in that it cannot be summer all the time.
The exchange rate is the principal rate at which two currencies can be traded. 17 Businesses are
increasingly trading across international boundaries. This can be seen, for example, in all the Chinese goods
we can now get in South African shops. As with interest rates, the exchange rates also change over time and
are very difficult to predict (foretell). The effects are illustrated in Table 1.2.
Table 1.2 The effect of exchange rates18
31 March 2013 31 March 2014

$1 = R9,24 $1 = R10,53
South African business imports spare parts for $100 Cost: R924 Cost: R1 053
South African business exports products priced at R1 000 Cost to foreign buyer: $108 Cost to foreign buyer: $95
Cheap rand will hit the poor
Gareth Ackerman, the chairman of Pick n Pay, has warned that any move by government to devalue the
rand will hit the poor in South Africa the hardest. ‘South Africa is a net importer of food, and food
commodity products are dollar-denominated. A wide range of foodstuffs including bread, rice, coffee,
tea and other staples are all based on the dollar’,19 he said. This may very well cause food costs to rise
quickly again, hurting the poorest in our country, who are already suffering from lower disposable
incomes, rising costs, and the threat of unemployment. Poor people spend much more of their income on
food compared to richer ones. Research shows that while the richest households of the population only
spend 7% of their total household income on food, the poorest households spend close to 50% of their
much smaller income on food.20
The majority of international trade takes place in United States dollars ($). If the exchange rate
increases (if United States dollars become more expensive) prices of imported products increase, while
if the rate decreases then imported goods become cheaper.
1.3.3.6 The international environment

The international environment refers to the events that happen in other countries that affect the business.
Globalisation is the development of business activities on an international level, which includes competition,
markets, and the increasing interdependence (they keep getting more dependent on each other) of global
economies.21
Factors in the international environment can range from policy decisions in other countries, to natural
disasters, wars, and terrorist attacks. Examples of events at the international level that have had an impact on
business in South Africa include the following:
• The outbreak of the Ebola virus in West Africa in 2014 resulted in tourists cancelling their trips to SA, even
though there were no infections here.
• The war in Syria and Iraq has led to increases in the crude oil price, which in turn has led to the increased
price of petrol and diesel in South Africa. This in turn has resulted in increased prices for everything from
food to transport.
• The increased levels of cheap products from Eastern countries have hurt the South African manufacturing
industry, in particular the clothing sector, where many jobs have been lost.
Chinese imports threaten SA manufacturing sector

Manufacturing Circle chairperson Stewart Jennings stated that the import of cheap goods from China
was one of the largest external factors inhibiting the exploitation of the manufacturing sector in South
Africa. The manufacturing sector lost more than 300 000 jobs between the first quarter of 2008 and the
first quarter of 2012. Many small businesses have also closed as a direct result of the cheap imports.
SA struggles to compete with Chinese products, which were often between 25% and 30% cheaper
than locally produced items. While the overheads of many BRICS (Brazil, Russia, India, China and SA)
countries have decreased by over 36% in the last decade, many of SA’s costs have increased
significantly, such as the cost of electricity that has increased by over 170%.22
1.4 Conducting a SWOT analysis (study of the parts) of a business’s environment
In order to stay competitive and manage the impact of the factors in the environment, a business needs to
analyse both the internal environment (the micro-environment) and the external environment (the market-
and macro-environments). This is done through a process known as a SWOT analysis (‘SWOT’ stands for
strengths, weaknesses, opportunities, and threats.) The process involves analysing the internal environment’s
strengths (what the business is good at) and its weaknesses (what needs to be improved in the business). Then
the external environment is analysed by identifying its opportunities (prospects that the business could use to
grow and make more profits) and its threats (factors that could stop the business from growing and making
profits).
Table 1.3 Example of a SWOT analysis for Thabo’s Fish and Chips
Internal External
Strengths: Opportunities:
• skilled and motivated employees • customers loyal to the brand
• well-run purchasing function • new technology that can lower production costs
• effective marketing strategies • new markets
Weaknesses: Threats:
• high number of rejects during production • shortage of raw materials
• senior manager is approaching retirement • increasing interest rates
• shortage of funds to finance expansion • increased competition
The table above is a summary of the SWOT analysis that Thabo carried out on his business, Thabo’s Fish and
Chips. In the internal environment of the business (the micro-environment) the strengths were: the skilled and
motivated employees Thandi and Joe; the good-quality raw fish and potatoes used; and the fact that the
business was well-known because of their big signs and the advertisements put in the local paper. But there
were a number of weaknesses that needed to be fixed. Several pieces of fish got burnt during frying; Thabo
was 60 years old and would like to retire; and the business could not open a second branch because of a lack
of capital. In the external environment (the market- and macro-environment) there were a number of
opportunities: the loyal group of customers who regularly bought the fish and ships; the new chip fryers that
used less electricity; and the fact that shortly a new shopping centre was opening close by, which would be an
ideal place to open a second branch. The main threats were that: at times there was a shortage of fish because
of over-fishing in the past; interest rates were increasing; and a number of other fast-food businesses had
opened in the neighbourhood.
Thabo needs to take steps to fix the weaknesses in his business. For example, he needs to find someone to
lend him capital at a reasonable interest rate, so that he can use the opportunity of opening a second branch
and buying more economical equipment.
1.5 Ethics in data collection

In conducting a SWOT analysis, information needs to be collected from a wide range of role players
including customers, competitors, suppliers and bodies in the macro-environment of the business. There are
various ethical issues that need to be considered when collecting this information, including:
• Accessibility comprises whether the business has the right to access the required information. Is the
information being accessed private or confidential?
• Privacy deals with the degree of privacy of information and how this is shared. An example would be how
information that is collected about customers is protected and what it is used for.
• Property deals with ownership and the relative value of the information that the business collects. Questions
that would be asked here relate to whether the business has paid a fair price to a legitimate source for the
information.
• Accuracy asks whether the information being collected is both accurate and authenticate.23
CASE STUDY: WALMART ENTERS THE SOUTH AFRICAN MARKET

In May 2011, American retail giant Walmart purchased 51% of South African retailer Massmart for $2,4
billion. Massmart is located in 14 African countries; however the majority of its 290 retail stores are in South
Africa (SA) with only 25 of these in the other 13 countries. Walmart has huge economic power with annual
revenues of over $400 billion, larger than the GDP of 75% of countries worldwide. Walmart operates in 14
countries apart from the US with a procurement division employing 1 400 individuals working with 6 000
factories across the world; however the majority are located in China importing over 60% of its products.24
Massmart’s highly recognised brands include Game, Dion Wired, Makro, Builders Warehouse, Builders
Express, Builders Trade Depot, CBW, Jumbo Cash and Carry and the Shield buying group. Their consumers
span a broad base extending from Living Standard Measure (LSM) 1 to LSM 10 (LSMs segment the SA
market according to their living standards using criteria such as degree of urbanisation and ownership of cars
and major appliances). The group continuously improves its performance by clarifying and streaming its
structures, high market shares, outstanding management and technology, and the sharing of resources.25
Walmart’s purchase of Massmart is part of their strategy aimed at profiting from opportunities in
countries where consumer spending power is increasing and the supermarket buying experience reaches
almost all socio-economic levels of the population. Walmart CEO Douglas Mcmillon stated that ‘Clearly
South Africa alone is an attractive market, but we are clearly interested in sub-Saharan Africa … we don’t
start out with a predisposition to growing in one country over another … we think of this as a region.’26
Most consumer goods markets in SA are underdeveloped and are import-driven. Markets for white goods,
such as fridges and washing machines, as well as clothing are heavily dependent on imports, while the
cosmetics and toiletries segment is self-sufficient. The consumer electronics segment, including audio/video
devices, mobile phones and computers, is the fastest growing and accounts for the bulk of the consumer
goods sector. A growing trend is the increasing demand for ‘green’ or energy-efficient appliances.27
But all has not been going as well as expected with Massmart experiencing a 10% fall in profits in the
first half of 2013 as a result of a weak market and slow expansion into other African countries. Massmart has
been slow to move into sub-Saharan economies, losing ground to rival Shoprite which has been expanding
aggressively outside SA. One of the key reasons for this is the lack of shopping centres outside of SA able to
accommodate their flagship Game stores.28 They have also been affected by the declining value of the rand
from a low of R6,60/$ in January 2011 to a high of R11,30/$ in January 2014 which has affected the price of
imports.29 The slowdown in consumer spending has been accompanied by increased discounting in an
attempt to hold market share.
Grant Pattison, CEO of Massmart, notes that consumer buying trends are changing: ‘We are seeing big
category shifts: TV sales are not growing; DVDs and music are in decline; laptops are declining while tablets
are growing. And the camera business has changed completely. We have not responded fast enough to these
changes.’30 Massmart has also been stopped from selling foodstuffs through Game stores in a number of
shopping centres where Shoprite holds exclusivity agreements. They were prevented by an interdict issued by
the Western Cape High Court to sell these goods in their CapeGate mall however; they plan to appeal this
ruling with the Competition Commission.31
The acquisition of Massmart was not without its difficulties. Local unions and government ministers,
including Trade and Industry Minister Rob Davies, Agriculture and Forestry Minister Tina Joemat Pettersson
and Economic Development Minister Ebrahim Patel, opposed this as they believed that the merger would
lead to a decline in local manufacturing and production including agricultural processing, the furniture
industry, electronics, plastics and household goods, as well as clothing and textiles. Despite this opposition
and the high rate of unemployment in SA currently between 25% and 40%, SA’s antitrust commission
approved the takeover with a number of conditions including that there be no job cuts at Massmart for two
years, existing labour agreements will be honoured for the next three years and $14,6 million be paid into a
fund aimed at developing local suppliers.32
QUESTIONS
1 What are the key factors in the micro-environment that impact on the success of Massmart?
2 What are the different factors in the market-environment that have an effect on Massmart?
3 Draw up a basic SWOT analysis for Massmart.
4 Make some suggestions on how Massmart could build on the strengths that you have identified in the
SWOT analysis.
5 What could Massmart do to address the weaknesses and threats that you identified in the SWOT analysis?
6 Provide some suggestions as to how Massmart could make use of the opportunities that you identified in the
SWOT analysis.
SUMMARY
In understanding how the business environment affects a business, it is vital to understand the concept of
systems thinking. This states that everything is interconnected, therefore if something occurs in one part of
the system it affects all the other parts of the system. While the business affects the environment in which it
exists, this environment also has a major impact on the business’s success.
The micro-environment is the context within the organisation, and over which the management has
almost complete control. It comprises the business functions of operations, logistics, finance,
human-resources management, marketing, and public relations. These are interdependent. Their effective
functioning, and the functioning of the business as a whole, depends on the ability of management to plan,
organise, motivate, lead, and control effectively.
The market environment is immediately outside the organisation. This is where the organisation conducts
its business, and over which the management has some influence. It includes the organisation’s suppliers and
their intermediaries, the potential customers, and the competitors who compete for their customers.
Finally the macro-environment comprises the events that take place on the national and international
level, over which management has almost no control. The macro-environment can be divided into the natural,
technological, social, political, economic, and international sub-environments.
Because the business environment determines the success of a business, it is essential that management
analyses and checks it. This is done by means of a SWOT analysis, where the internal strengths and
weaknesses, as well as the external opportunities and threats, are noted and analysed. The business also needs
to note that it collects information for the SWOT analysis in an ethical and responsible manner.
MULTIPLE-CHOICE QUESTIONS
1. ____________ is also known as the ‘internal environment’.

a. Market environment
b. Micro-environment
c. Social environment
d. Economic environment
2. Global warming is an example of a factor in the ____________ environment.

a. international
b. technological
c. political
d. natural
3. The suppliers of a business form part of its ____________ environment.

a. social
b. market
c. economic
d. macro
4. ____________ is the part of a person’s income over which he or she has complete control.
a. Disposable income
b. Inflation
c. Average income
d. Exchange rate
5. The function in the market environment responsible for getting the right quality products, in the right
quantity, at the right time for the business is the ____________ function.
a. purchasing
b. operations
c. logistics
d. marketing
REFERENCES AND ENDNOTES
1. Needle, D. 2004. Business in context: An introduction to business and its environment. 4th ed. London:
Thompson.
2. Fitzroy, P. & Hulbert, J. 2005. Strategic management: Creating value in turbulent times. London: John
Wiley & Sons.
3. Needle, D. 2004. Business in context: An introduction to business and its environment. 4th ed. London:
Thompson.
4. Connor, P.E., Lake, L.K. & Stackman, R.W. 2003. Managing organizational change. 3rd ed. Portsmouth:
Greenwood.
5. Gordin, J. 2006. Weather wise: SA’s in for a rough ride. [Online]. Available: http://www.iol.co.za/index
.php?from=rss_South%20Africa&set_id=1&click_id=&art_id=vn20061008083921736C491277 [14
November 2007].
6. iafrica.com. 2010. SA flirts with water crisis. [Online]. Available: http://business.iafrica.com/news/653833
.html [27 October 2010]; Bain, J. 2007. SA on the frontline of global warming. [Online]. Available: http
://www.thetimes.co.za/PrintEdition/BusinessTimes/Article.aspx?id=553273 [10 November 2007].
7. AFP. 2014. Nut price hike, Nutella-lovers hit hard. [Online]. Available: http://news.iafrica.com/worldnews
/956314.html [24 August 2014].
8. Sibanyoni, M. 2009. Building on a green foundation. [Online]. Available: http://www.fin24.com
/PersonalFinance/My-Business/Building-on-a-green-foundation-20090802 [27 October 2010].
9. Toffler, A. 1970. Future shock. New York: Random House.
10. Needle. D. 2004. Business in context: An introduction to business and its environment. 4th ed. London:
Thompson.
11. Business Pundit. 2014. 8 ways smart phones have changed business. [Online]. Available: http://www
.businesspundit.com/8-ways-smart-phones-have-changed-business/ [24 August 2014].
12. Encyclopædia Britannica. 2006. Ultimate Reference Suite DVD.
13. Ibid.
14. Ibid.
15. Jones, S.L. 2005. Inflation and deflation. Microsoft Encarta 2006 [DVD]. Redmond: Microsoft.
16. Bonello, F.J. 2005. Business cycle. Microsoft Encarta 2006 [DVD]. Redmond: Microsoft.
17. Encyclopædia Britannica. 2006. Ultimate Reference Suite DVD.
18. XE. 2014. Current and historical rate tables. [Online]. Available: http://www.xe.com/currencytables/# [6
April 2014].
19. Bloomberg. 2010. Pick n Pay says South Africa mustn’t devalue the rand. http://www.bloomberg.com
/apps/news?pid=newsarchive&sid=a4drGW86Vn4Q [27 October 2010].
20. Masemola, M.E., van Aardt, C.J. & Coetzee, M.C. 2012. Income and expenditure of households in South
Africa (Research Report 429). Pretoria: UNISA Bureau of Market Research. http://www.unisa.ac.za
/news/wp-content/uploads/2013/01/Household-income-and-expenditure-patterns-Press-Release
-3Jan2012.pdf [12 August 2014].
21. Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. 2004. Global transitional business: Strategy and
management. 2nd ed. Chichester: John Wiley & Sons.
22. Odendaal, N. 2012. China imports threaten SA manufacturing. [Online]. Available: http://www
.engineeringnews.co.za/article/china-imports-threatens-sa-manufacturing-2012-11-28 [24 August 2014].
23. Paliwal, M. 2006. Business ethics. New Dehli: New Age International Publishers.
24. Consultancy Africa Intelligence. 2011 Walmart in South Africa: The good, the bad and the ugly. [Online].
Available: http://www.consultancyafrica.com/index.php?option=com_content&view=article&id=875
:walmart-in-south-africa-the-good-the-bad-and-the-ugly&catid=82:african-industry-a-business&Itemid
=266
25. Fastmoving: The retail exchange. 2014. Massmart retailers in South Africa. [Online]. Available: http:/
/www.fastmoving.co.za/retailers/massmart-6
26. SouthAfrica.info. 2011. Walmart ‘raring to go’ in South Africa. [Online]. Available: http://www
.southafrica.info/news/business/380378.htm#.U0LvVvmSwdM
27. Thomas White International. 2011. Emerging market spotlight: Retail in South Africa. [Online].
Available: http://www.thomaswhite.com/global-perspectives/retail-in-south-africa-making-an
-impression/
28. Business Report. 2013. Massmart lags rival in expansion. [Online]. Available: http://www.iol.co.za
/business/companies/massmart-lags-rival-in-expansion-1.1566790#.U1FJ-_mSzfw
29. XE. 2014. XE currency charts (USD/ZAR). [Online]. Available: http://www.xe.com/currencycharts/?from
=USD&to=ZAR&view=5Y
30. Moneyweb. 2013. Massmart to focus on food, clothing and e-commerce. [Online]. Available: http://www
.moneyweb.co.za/moneyweb-south-africa/massmart-to-focus-on-food-clothing-and-ecommerce
31. Business Day: BD Live. 2013. Shoprite granted interdict to stop Massmart’s food offering. [Online].
Available: http://www.bdlive.co.za/business/retail/2013/10/22/shoprite-granted-interdict-to-stop
-massmarts-food-offering
32. SAPA. 2011. Walmart-Massmart merger poses risk to SA ministers. [Online]. Available: http://www
.timeslive.co.za/politics/2011/08/02/walmart-massmart-merger-poses-risk-to-sa-ministers [02 August
2011].
This chapter introduces and explains the basic concepts of management, and it identifies the different
organisations in which managers work. It explains the levels at which managers fulfil their tasks, the tasks
that they perform, and the areas of an organisation in which they work. This chapter also examines the skills
and competencies (abilities) that managers need to have, and the roles that they need to perform.
Learning outcomes

• understand what the management tasks involve
• distinguish between the different types of organisations in which managers work
• identify the different levels of managers
• explain the various tasks performed by managers
• distinguish between the different areas of management
• describe the various management skills
• list a number of important management competencies
• explain the various management roles and sub-roles.
2.1 Introduction
The role of management increasingly includes all levels of employees in the organisation. Managers must
fulfil the various management tasks and also act as leaders, but employees should also now take
responsibility for managing themselves. This chapter analyses the meaning of management and examines
what a manager needs in order to succeed in the ‘global village’ (the world that seems as small as a village
because of modern communication).
2.2 What is management?1
Management can be defined as the process of co-ordinating work-related activities so that the people
performing them complete these activities effectively and efficiently. In each management function, the
specialised manager needs to apply all the management tasks (planning, organising, leading, motivating, and
controlling). However, while ‘management’ can refer to a combination of managerial tasks, it can also be
seen as a specific function (for example, marketing or finance) in an organisation. ‘Management’ can also be
the term used to refer to the people with formal power in an organisation.
2.3 What is a manager?2

A manager is a person who has been appointed in a managerial position in an organisation, and who has
certain responsibilities to carry out management tasks. Managers have authority (the right to make decisions,
use resources and give orders), and should provide leadership to the employees reporting to them in their
team or department.
Management is a continuous and active process that obtains (finds), organises, and utilises resources, in
order to reach certain goals. Managers and other employees need to work together to:
• develop plans and objectives
• structure tasks in a sensible way
• act in organised structures (such as teams, departments or projects) while considering authority
• motivate each other
• communicate clearly, and
• develop and act according to set performance standards.
The effectiveness of a manager lies in his or her ability to:

• maintain a favourable work environment
• create opportunities for all employees to perform at their best
• act as a leader (and a follower, depending on the situation),
• communicate continuously with other employees and motivate them, and
• acknowledge and reward good performance considering the limited resources.3
2.4 Organisations in which managers work

Managers work in a variety of organisations, which can be classified as commercial, governmental, or
voluntary. Table 2.1 is a summary of these types of organisations.4
Table 2.1 Organisations in which managers work
Type of organisation Possible forms Specific examples

Commercial organisation (an Sole (single) proprietors (owner), Volkswagen, Checkers, Spur,
organisation that manufactures goods, partnerships, close corporations, public Woolworths, McDonald’s, Protea
provides services, or retails (sells and private companies, franchises, hotels, Virgin Active, Kalahari
directly to consumers) products) holding companies, conglomerates, .com, BHP Billiton, Makro
multinational corporations, virtual
companies, and co-operatives
Governmental organisation (a Government departments and public Department of Trade and

tax-funded department, or unit that is enterprises Industry, South African Revenue
formalised by the government, to ensure Services, Department of
a framework of support and the Transport, Department of Arts
application of legislation according to and Culture, Statistics South
the country’s bill of rights) Africa, Eskom, SAA, Transnet
Voluntary organisation (an organisation Political parties, pressure groups, African National Congress,
that focuses on a specific agenda and charities, clubs, associations, Democratic Alliance, Freedom
creates income not for profit but to professional bodies and trade Front Plus, Johannesburg Country
ensure funding of this agenda) associations Club, SAICA, Starfish
Foundation, ASATA
Woolworths
The Woolworths head office in Cape Town can be best described as the central hub of Woolworths’
retail operations. Work-life in this environment for management and employees is fast-paced and
challenging. In order to succeed in the dynamic clothing and food retail environment, managers are
required to show dynamic leadership and act as thinkers who are passionate about driving change and
who thrive in a high-performance environment. Some of the key areas for specialisation for management
and other employees working at head office are clothing and general merchandise, food, real estate
development or facilities, as well as functional specialisation areas such as marketing, human resources
(people), information technology, finance and corporate governance. Corporate governance is an
example of one contemporary specialisation area for management, to ensure optimum ethical conduct,
not only to meet legal requirements but to also ensure internal compliance in various areas using
processes such as legal audits.5
2.5 Levels of management6

When structuring an organisation, the various management levels are identified, and the authority,
responsibility, duties and tasks for each management level and each specific manager, are made clear. A
small business may have only one layer of management, while a large organisation may have many levels. 7
In general, the three main levels of management are top management, middle management, and first-level
management. Figure 2.1 illustrates the three management levels and their interaction with the
non-management employees.
Figure 2.1 Management levels and interaction with non-managerial employees
2.5.1 Top management
Top management is responsible for the overall direction of an organisation. Top managers have to develop
and communicate the organisation’s vision, its mission statement, and its long-term goals, plans, and
strategies. Top managers also establish overall organisational policies. Typical examples of top managers are
presidents, directors, and chief executive officers (CEOs), or managing directors. For instance, Patrice
Motsepe is the CEO of African Rainbow Minerals, Adrian Gore is the CEO of Discovery, Tiger Brand’s
CEO is Peter Matlare and Maria Ramos is the CEO of Barclays Africa Group, and they all oversee the
strategic activities within their relevant organisations.
2.5.2 Middle management

Middle management is made up of department heads (the ‘manager’ of a specific department), functional
managers (such as marketing or human-resources managers), branch managers, or project managers. These
middle managers must have a good understanding of the overall organisational strategy. Middle managers
create the link between top management and first-level management. They receive broad, general strategies
and policies from top managers, and they change them into specific goals and action plans to be implemented
(put into practice) by first-level managers. Middle managers are usually responsible for ensuring that all
organising tasks are conducted, and they take care of operational (practical) planning.
2.5.3 First-level management

First-level managers implement all the strategic plans sent through to them via middle managers from top
managers. First-level management takes responsibility for operational planning, which means that these
mangers are responsible for the production of goods or the provision of services. First-level managers are
also responsible for controlling activities in order to monitor the performance of employees.
In most organisations, first-level managers do not spend much time with higher management or with
people from other organisations. Their focus and responsibility are on specific operational issues only.
Typical examples of first-level managers are supervisors, crew leaders, and section heads. At a large
wholesaler such as Makro, the floor manager will be classified as a first-level manager as would a restaurant
manager at a McDonald’s restaurant.
Non-managerial employees report to first-level managers, and are responsible for the basic process of
production or service provision.8
Managing operations at different levels – Mercedes Benz South Africa9
Mercedes Benz South Africa is a wholly owned subsidiary (is a company that is fully owned by another
company which is better known as the parent or holding company) of the global motor manufacturer
Daimler AG. Top management participates in the planning and decision-making process of their
organisation’s overall goals and strategies in alignment to the strategies and goals developed by Daimler
AG. This will include, for example, establishing assembly and export contracts of all right-hand drive
C-class models and a limited amount of left-hand drive models to more than 80 countries, including the
United Kingdom, as from the latter part of 2014.
On middle management level, a functional manager such as an operational manager will develop an
operations plan and strategy to set up and finalise the plant for assembling the new C-class model, which
will satisfy the needs of existing and potential, local and internal customers. This manager will liaise
with various operations experts such as engineers, designers, and floor managers to plan for the set up of
a new assembly line which in the example of the new C-class required an investment of approximately
R5 billion. As a middle manager, this person will consider the strategic goals and vision statements of
the organisation and align his or her functional strategies and goals with these. During the liaison
process, this middle manager will then communicate these strategies to the various section managers of
the assembly plant, functioning as first-level managers, to ensure that the implementation of these
strategies is effective and efficient.
This will take place where, for example, at first-level management, the manager in charge of a
section of the assembly line will take on the responsibility to set up the section of the assembly line,
engineers will assist with developing and upgrading equipment for the assembly plant, and
assembly-plant floor managers will train plant personnel with the necessary skills to use new technology
and implement the new assembly processes.
A non-managerial employee such as an electrical technician will acquire the skills to assemble the
electrical components for the new vehicle, and when the plant is up and running, he or she will be
responsible for installing all electronic wiring and equipment, such as the optional extra Burmester
surround sound system into the C-class, in order to meet the specifications set by the customer and order
country.
2.6 Management tasks

The primary management tasks are planning, organising, leading, motivating, and controlling as illustrated in
Figure 2.2.10 For each of these tasks to succeed, effective communication is important.11
Figure 2.2 Primary management tasks
2.6.1 Planning
Planning is an essential process for almost every business activity. Planning is deciding in advance what to
do, how to do it, when to do it, and who is supposed to do it. Planning involves choosing different strategies
and actions for every individual, team, and department in an organisation, and for the organisation as a
whole. Planning allows the business to define its overall short-term objectives, together with the long-term
goals for each part of the business. Planning allows members of an organisation to achieve their vision,
mission, and purpose, as stated in their goals and objectives.
During the process of planning, managers must make various decisions. Different types of decisions are
made at different levels of management. Decision-making focuses on the identification of possible
alternatives and the selection of the most appropriate one as the solution to address an opportunity or
problem. Decision-making does not only happen during the planning process, but also when any of the
management tasks are conducted. (Planning is discussed in more detail in Chapter 13.)
Ensuring successful management and planning while changing ownership at

Protea hotels
The critical management requirements, telling us how things are done (managed) at Protea Hotels, are
up for consideration. This demands planning, potential changes in organising, even possible changes in
leadership and motivation as well as existing and new controls to monitor future performance. The sale
of Protea Hotels, Africa’s largest hospitality company, to Marriott International, effective 1 April 2014,
has naturally produced many operational and managerial questions about the company’s structure,
relationship with suppliers, public profile and branding to be considered for future communication with
all stakeholders. Planning is critical to ensure the transitional process of integrating the two large
companies’ systems. This integration process will be supported with the help of existing management
and staff, as well as some Marriot executives to provide additional support in expanding the existing
brand names Protea Hotels, Protea Hotel Fire & Ice and African Pride Hotels across Africa.12
2.6.2 Organising
Organising is the structuring (arranging), co-ordinating and directing of an organisation’s resources in order
to achieve its objectives. When involved in the task of organising, managers structure and oversee resources
such as people, materials, equipment, money, and time. This task involves delegating (passing on) work to
other employees so that they can carry out the necessary activities effectively, and act according to their set
authority and responsibilities. (Organising is discussed in more detail in Chapter 15.)
2.6.3 Leading
Leading is directing, guiding, and motivating other employees. Leaders play an important role in
organisations, and are not only assistants to CEOs. Leadership in today’s organisation is needed on all levels
within the organisation. Managers need to act as leaders in order to influence other employees to achieve set
objectives.13 (Leading is discussed in more detail in Chapter 16.)
Leadership in the eyes of a South African business veteran
Brand Pretorius played a key role in establishing Toyota as a market leader in the South African motor
industry and later on turned around an insolvent McCarthy Group. Today as a retired CEO but still
active business leader he uses his vast experience as a manager and leader as a guest speaker. One of his
critical leadership views on managing people is ‘…buildings are merely a venue from which to serve
our customers, but the bricks and mortar play a small role in our business. It’s the people that are
important…’.14
2.6.4 Motivating
Motivating people is the act of influencing them so as to cause, channel and sustain certain goal-directed
behaviours. While managers need to lead their employees, they also need to motivate them to perform in such
a way as to maximise (enlarge to its biggest) their objectives, as well as the objectives of their team and the
whole organisation. However, motivation is not only the duty of a manager; every employee should ensure
self-motivation.
Motivation at Google15
The management and employees at Google certainly know how to motivate. Employees that work at
Google receive benefits that most other organisations do not even consider or cannot provide. If you
were thinking of bowling alleys, free haircuts, gym memberships, and shuttles picking you up from
home and returning you after a long day’s work, then you are not dreaming, as those are exactly the type
of extra benefits offered by management. Google’s secret to success is that their management and
employees put the same amount of time and effort into keeping all employees happy as they do in
making innovative products. Furthermore managers provide tasks to employees that are inspiring and
challenging.
2.6.5 Controlling
Control creates a link between the other management tasks. Controlling is the process of developing
performance standards according to the set objectives developed during the planning process. In other words,
controlling refers to the process where the level of performance needed to achieve certain goals and
objectives, is developed. Management has to determine at what level all employees need to perform to reach
the goals set out for the organisation. This is followed by measuring the actual performance of employees and
teams, in order to know if they are performing according to the set standards. The outcome shows whether
employees perform acceptably or whether they do not, and if corrective action is needed.16 (Controlling is
discussed in more detail in Chapter 18.)
CRITICAL THINKING
Why is management development (the development of good management skills) so important for a
developing country such as South Africa? Why can’t we all be employees and have no managers? Why
do we need to develop senior managers to also become business leaders? Why do we need to develop
leadership on all levels of management? Answer these questions and give reasons for your answers.
2.7 Areas of management17
The five main business functions (which are discussed in detail in Part Three) are operations, logistics,
finance, human-resources management, and marketing. These different functions are usually performed by
different managers who implement all the management tasks in relation to their departments.
2.7.1 Production and operations managers

Production and operations managers develop and administer (supervise) all activities in transforming the
organisation’s resources into final goods or services. (Management of the operations function is discussed in
more detail in Chapter 3.)
2.7.2 Logistics managers

A logistics manager is responsible for the management tasks connected with inbound/incoming logistics
(purchasing) and outbound/outgoing logistics (distribution). This includes the collection of resources as well
as the packing, storage, transportation, distribution, and sales of completed goods. (Management of the
logistics function is discussed in more detail in Chapter 4.)
2.7.3 Information-technology managers

An information-technology manager is responsible for implementing, maintaining, and controlling
technology (systematic application of knowledge) in the organisation. Information-technology managers
ensure the effective flow of information for effective management decision-making.
2.7.4 Financial managers

Financial managers focus on getting the money needed to operate the organisation, as well as managing these
funds in the best interests of the organisation. These funds are used to achieve the organisational goals.
(Management of the financial function is discussed in more detail in Chapter 13.)
2.7.5 Human-resources managers

The human-resources managers handle all the staffing needs. They establish the human-resources needs of
the organisation, and manage the finding and hiring of new employees, their training and development, and
also their performance evaluation and all other relevant (connected) administrative applications.
(Human-resources management is discussed in more detail in Chapter 6.)
2.7.6 Marketing managers

Marketing managers are responsible for the establishment of need-satisfying goods or services for the
organisation’s customers. They must then consider pricing, marketing communications, and how to make the
products and services available to existing and potential new customers. (Marketing management is discussed
in more detail in Chapter 7).
CRITICAL THINKING
How would the roles, tasks and responsibilities of a marketing manager differ from those of a sales
employee? Consider large retailers such Woolworths, Checkers and Mr Price. Each of these retailers
needs to identify a selection of products that will satisfy the needs of their specific customer base. Then
they need to communicate to these customers in order for them to buy these products in stores or
online, in order to satisfy their differing needs. First identify the tasks of the marketing department –
now work out how the responsibilities and roles for these tasks will be divided between management
and other non-managerial employees in the marketing department.
2.7.7 Public-relations managers

Public-relations managers are involved in communicating and keeping in touch with internal and external
groups (stakeholders) in order to start or maintain a good relationship with all stakeholders.18 These
stakeholders include: employees, suppliers, government, communities, customers, and others relevant to the
organisation.
2.7.8 Administrative managers

Administrative managers are responsible for an entire business or a major division in the organisation. They
are not specialists in the way that the other types of functional managers (e.g. marketing or financial
managers) are; instead they co-ordinate the activities of the specialised managers.
2.8 Management skills

For managers to fulfil their planning, organising, leading, motivating and controlling tasks, they need to use
three groups of management skills, namely: conceptual skills, human skills, and technical skills. Each of
these groups of skills will now be discussed in more detail.
2.8.1 Conceptual skills

Managers use conceptual skills to understand abstract (cannot be seen or touched, etc.) ideas, so that they can
consider various possible solutions to a problem or opportunity, before selecting the best solution or
alternative, while evaluating all relevant factors. Having the appropriate (suitable) conceptual skills mean that
a manager can understand the entire organisation, department, range of products or services, as well as the
interrelationship among the various parts.
Planning and organising require a great level of conceptual skill. Because top managers mostly perform
planning and organising tasks, they require particularly good conceptual skills. All managers should develop
their conceptual skills, because these allow them to see beyond the immediate situation, and to consider
alternatives while still keeping in mind the long-term goals of the organisation.
Because businesses are competing in a continually changing global environment, conceptual skills are
increasingly required. Managers need this skill in order to see the bigger picture, in order to handle the
constant changes in the internal and external business environment.
2.8.2 Human skills

Managers use human skills to understand and change the attitudes and behaviour of individuals and groups.
Human skills are needed to manage change and conflict among employees, as well as work-force diversity
(differences). Current (present) management trends include participative management, where
non-management-level employees participate (share) in managing resources. Participative management can
be implemented more effectively if managers have strong human skills.
Communication skills are essential human skills without which no-one can be an effective manager (or
team member). Apart from communication skills, the ability to lead, co-ordinate and motivate people, and to
shape individuals into a cohesive (sticking together) team, distinguishes effective from ineffective managers
and can be identified as the core human skills required by managers. Effective human skills are critical in the
development of appropriate ethical conduct within and between organisations.
While good human skills allow managers at all levels to motivate and interact with the employees for
whom they are responsible, it is probably middle managers who have the greatest need for human skills.
2.8.3 Technical skills
Managers use technical skills when they use job-specific knowledge and techniques to perform an
organisational role. These skills reflect a manager’s understanding of the business’s methods.
The specific technical skills that a manager needs depends on that manager’s position and job description.
For example, one manager, such as a restaurant manager, may need to draw up a budget, another manager,
such as a project leader involved in new product design at a cellphone company may need to present a
marketing campaign, and another manager at an assembly plant may need to train a production team.
(However, every manager needs to be able to plan, organise, lead, motivate, and control, as all of these are
essential for effective management.)
First-level managers and middle managers are the most likely to need specific technical skills.
CRITICAL THINKING
Access the website or advertisement (online or in the newspaper) of any of your favourite retailers in
Southern Africa, for example, for food go to Checkers, for clothes go to Mr Price Sport, for
communication go to Cell-C, for new cars go to BMW, for hotel accommodation go to Tsogo Sun, and
so on. Identify a specific management job title at any one of these types of organisations. Find a job
description on their webpage or an advertisement providing some job description and specification
indicating the job requirements in terms of management skills required. See if you can identify and
classify any of the management skills required for the management positions as technical, human, and
conceptual.
2.9 Management competencies19

Management competencies can be described as sets of skills, knowledge, attitudes and behaviour that a
manager needs to be effective in a variety of organisational settings and managerial jobs.
Research has been done regarding the competencies that managers need to be successful. Michael
Bristow analysed research on 60 different organisations. The top five competencies identified were:20
• communication (written and oral [spoken] communication)
• self-management (personal effectiveness, self-control, self-discipline, self-confidence. and resilience [easy
recovery from something unpleasant])
• organisational ability (organisational awareness, delegation, control and structure)
• influence (impact on others, motivation, leadership, networking [contacting people], and negotiation)
• teamwork (team membership and team leadership).
Some of the other important competencies that were identified were: interpersonal skills, analytical ability,
results orientation, customer focus, developing people’s potential, strategic ability, commercial awareness,
decision-making, planning, leadership, self-motivation, specialist knowledge, flexibility, creativity, initiative,
change orientation, dealing with information, concern for quality, reliability, an ethical approach and
financial awareness. These results indicate that interpersonal skills (the skill to interact with people, to
co-ordinate and supervise organisational employees, and to give direction to organisational members) are an
essential requirement for today’s manager.
Ethical leadership
A report investigating corruption within the Johannesburg Metropolitan Police Department, by
Corruption Watch, revealed that half of Johannesburg Metro Police officers have asked for bribes, and
one in four of the city’s motorists has paid a bribe. The Mail & Guardian also revealed evidence
suggestive of bribery in the R26-billion Gautrain contract.21 Therefore with the reality of corruption,
South Africa is in need of ethical managers who are innovative, competitive but always truthful – and
that will ensure sustainable growth in all industries, while practicing the values embedded in the
constitution, which is built on the principles of a fair and honest democracy.
2.10 Management roles

A management role is a set of specific tasks or behaviours that a person is expected to perform because of
the position he or she holds in an organisation.22 In the 1970s Henry Mintzberg identified ten roles indicating
the specific tasks that managers need to perform. These managerial roles, which are still relevant today, can
be grouped into three categories, namely:23
• decisional roles
• interpersonal roles
• informational roles.
Managers take on each of these roles in order to influence the behaviour of individuals and groups, either
inside or outside the organisation. Managers often perform several of these roles simultaneously (at the same
time).24
2.10.1 Decisional roles

Managers are exposed to a variety of problems and opportunities, and they need to make decisions about
them. The types of decisions that managers need to make, as well as the conditions under which they are
made, vary.
The decisional role includes four sub-roles:

• entrepreneur
• disturbance handler
• negotiator
• resources allocator (giver).
These sub-roles are described in Table 2.2.

The decisional role can be connected with the methods used by managers to plan strategies and use
resources.
Table 2.2 Decisional sub-roles identified by Mintzberg25
Type of Description Example

decisional
sub-role
Entrepreneur In this role the manager must make decisions A manager decides to solve an energy-crisis problem at
involving the creative use of organisational a manufacturing plant by introducing alternative energy
resources, and think of alternative (other) sources, such as wind energy and solar (sun) energy.
possibilities.
Disturbance In this role the manager must deal with After the organisation has caused an oil spillage in a
handler conflict situations quickly. These situations coastal town, a manager consults with the angry
could be expected or unexpected, and internal community in finding an acceptable solution to deal
or external. with the pollution.
Negotiator In this role the manager must create an During a relocation (moving) of offices, a manager
acceptable solution in a negotiating situation. negotiates with employees to ensure an acceptable
solution to ensure that all employees are satisfied with
their new offices.
Resource In this role the manager must establish the If a retailer has an annual sale, a manager could decide
allocator best possible ways to allocate and use to move the majority or all regional staff to the biggest
resources. retail outlets where the demand will be the highest.
2.10.2 Interpersonal roles

Managers take up the interpersonal role in order to interact with people, to co-ordinate and supervise
organisational employees, and to give direction to all organisational members.
The interpersonal role includes three sub-roles, namely:

• figurehead
• leader
• liaison person.
All these sub-roles are essential at all levels of management, although the importance of each role might vary
depending on the management level or situation. These roles are described in Table 2.3.
Table 2.3 Interpersonal sub-roles identified by Mintzberg26

interpersonal
sub-role
Figurehead In this role the manager must act as a The CEO of an organisation represents the
representative of the organisation, team, or organisation and delivers a speech at the annual
division. South African Business Women of the Year
Prize-giving Ceremony.
Leader In this role the manager must give direction, and The new cars sales manager of a car dealership
motivate employees. motivates the sales staff to increase their annual sales,
in order to qualify for an international holiday grand
prize, as the top sales team.
Liaison In this role the manager must establish a A financial manager acts as a liaison officer with
person working agreement between two business units, media during a conference, while presenting an
or co-ordinate tasks or link resources between organisation’s annual financial statements.
different parts of a business.
2.10.3 Informational roles

In today’s global business environment, the role of information and the associated technology is very
important. Successful managers access, interpret, and provide information to all relevant parties at the exact
moment when this information is needed to maximise an opportunity.
The informational role of managers includes three sub-roles, namely:

• monitor
• disseminator
• spokesperson.
These roles are described in Table 2.4.
Table 2.4 Informational sub-roles identified by Mintzberg27

interpersonal
sub-role
Monitor In this role the manager must collect The marketing manager evaluates annual data on regional
useful information. sales and trends presented by the research team of the
marketing department.
Disseminator In this role the manager must focus on The human-resources manager informs employees on the
distributing useful information inside or outcome of the annual negotiations about salary increases and
outside the organisation. benefits.
Spokesperson In this role the manager must The public-relations officer of a large retail group makes a
communicate on behalf of the public announcement at the launch of a new exclusive
organisation, division, or team. clothing brand launched at their flagship stores.
CASE STUDY: GLORIOUS JEWELLERY

Glorious Jewellery is a privately-owned company specialising in the manufacturing and retailing of designer
jewellery for women and men. They are also specialist retailers for international watch brands Rolex, Cartier,
Baume & Mercier and IWC, to name a few. Rosa is the CEO of Glorious Jewellery and she and her senior
management team as well as the designers and technical staff are based at their head office and
state-of-the-art factory in the design capital of Africa, Cape Town, South Africa. Their products are sold
through a chain of 24 retail outlets based in the major cities throughout South Africa, Botswana and Namibia.
At head office, Geert is responsible for operations (manufacturing) and design, and he has 28 employees
working in the design department and factory. Mpho is the senior designer for Glorious Jewellery, and she
reports to Geert. The design team consists of three people: Marcus, Mavis and Mpho. The rest of the staff in
operations include specialist jewellery technicians working in the factory, who report to Elvis, the factory
manager. Elvis reports to his senior manager Geert.
At the beginning of the year, Rosa restructured the purchasing department and appointed Avril as
manager. Avril is in charge of purchasing all precious stones such as diamonds and semi-precious stones such
as quartz, metals such as gold, silver and platinum as well as the imported watches from international
suppliers. Avril has two employees reporting directly to her who are each responsible for a sub-division of
procurement and they fulfil the roles of purchasing supervisors. Paul handles all imports of exclusive watches
from international suppliers and Precious is in charge of local procurement of all stones and metals required
for jewellery manufacturing.
The financial manager, Suzie, is responsible for the acquisition of capital, investment decisions, creditors
and debtors. She has six people working in her department, working in teams of two, each handling regional
financial responsibilities for orders and payments from different branches. Lindiwe has taken on the role of
marketing manager and she will be responsible for all global communication and advertising. This function
had previously been outsourced to an external company and therefore no additional staff has yet been
appointed. Lindiwe needs to consult with human-resources manager Mohammed in order to establish her
future needs to compile and set up a fully functional marketing department for Glorious Jewellery.
QUESTIONS
1 What type of organisation is Glorious Jewellery?
2 Identify the different management levels and relevant people working at Glorious Jewellery.
3 Who in the operations and design department is responsible for implementing the Glorious Jewellery
strategy and operational planning?
4 What management levels are they on?
5 What different managerial roles do you think should be fulfilled by Rosa?
6 Which managerial skills do you suggest should be developed by Suzie, as financial manager, and Lindiwe,
as marketing manager, in order for them to optimally perform their job as managers at Glorious
Jewellery?
7 Considering the typical management functions presented in the chapter, which management functions are
not functioning as independent departments at Glorious Jewellery?
8 Which one of the three management skills would be a critical requirement for Mpho in her position as
senior designer at Glorious Jewellery?
SUMMARY
A manager can work in commercial organisations, governmental organisations, or voluntary organisations. In
an organisation a manager can be part of top-level management, middle management or first-level
management. Each manager is involved in five main management tasks: planning, organising, leading,
motivating, and controlling. But each manager will also have a special focus, depending on which area of the
organisation he or she is working in (for example, finance). All managers need conceptual skills, human
skills, and technical skills, and managers also benefit from having a specific range of competencies. In each
position that they hold, managers must play a variety of roles, which can be divided into decisional roles,
interpersonal roles, and informational roles.
MULTIPLE-CHOICE QUESTIONS
1. The ____________ is responsible for the basic process of production or service provision.
a. top management
b. middle management
c. first-level management
d. non-managerial employees
2. Organisations such as Eskom, SAA and Transnet can be classified as a ____________ type of organisation.
a. commercial
b. governmental
c. voluntary
d. non-profit
3. The CEO of an organisation who is representing his or her company at a gala event by presenting a speech
on their current successes can be classified as fulfilling an ____________ management role and a
____________ management sub-role.
a. leader; informational
b. interpersonal; liaison person
c. interpersonal; figurehead
d. entrepreneur; informational
4. Conceptual skills include ____________ .

a. communication and negotiation skills
b. administrative and computer skills
c. the ability to understand abstract ideas
d. the ability to apply technical skills
5. The ____________ manager is involved in communicating and keeping in touch with internal and external
groups in order to maintain a good relationship with all stakeholders.
a. marketing
b. human-resources
c. operations
d. public-relations
REFERENCES AND ENDNOTES
1. Oosthuizen, T.F.J. 2013. Management success a task focus. 2nd ed. Roodepoort: FVBC.
2. Ibid.
3. Lussier, R.N. 2012. Management fundamentals: Concepts, applications, skill development. 5th ed.
Cincinnati: South Western Cengage Learning.
4. Woolworths. 2014. www.woolworths.co.za. [Online]. Available: http://www.woolworths.co.za/store
/fragments/corporate/corporate-index.jsp?content=../article/article&contentId=cmp100597 [29 April
2014].
5. Smith, M. 2007. Fundamentals of management. London: McGraw-Hill; Oosthuizen, T.F.J. 2013.
Management success a task focus. 2nd ed. Roodepoort: FVBC.
7. Kroon, J. (Ed) 1995. General management. Pretoria: Kagiso.
8. Robbins, S.P. & Coulter, M. 2014. Management. 12th ed. London: Pearson.
9. Venter, I. 18 February 2014. New aluminium-rich C-Class to be exported to more than 80 markets. www
.engineeringnews.co.za [Online]. Available: http://www.engineeringnews.co.za/article/new-aluminium
-rich-c-class-to-be-exported-to-more-than-80-markets-2014-02-18 [29 April 2014].
10. Dixon, R. 2003. The management task. 3rd ed. Oxford: Butterworth Heinemann.
11. Lussier, R.N. 2012. Management fundamentals: Concepts, applications, skill development. 5th ed.
Cincinnati: South Western Cengage Learning; Hellriegel, D., Jackson, S.E., Slocum, J., Louw, L.
Staude, G., Amos, T., Klopper, H.B., Louw, M. & Oosthuizen, T.F.J., Perks, S. & Zindiye, S. 2012.
Management. 4th SA ed. Cape Town: Oxford University Press.
12. Reynard, S. 23 April 2014. Marriott allays concerns over Protea deal. www.hotelandrestaurant.co.za
[Online]. Available: http://www.hotelandrestaurant.co.za/tourism/marriott-allays-concerns-over-protea
-deal/#sthash.6teKqLL9.dpuf [29 April 2014].
13. Lussier, R.N. & Achua, C.F. 2012. Leadership – Theory, application, skill development. 5th ed.
Cincinnati: Cengage Learning.
14. Pretorius, B. 2014. www.brandpretorius.com [Online]. Available: http://www.brandpretorius.com
/summary.cfm [29 April 2014].
15. Brassfield, M. 21 March 2013. How Google Continues to Keep Employees Happy. www.payscale.com
[Online]. Available: http://www.payscale.com/career-news/2013/03/how-google-continues-to-keep
-employees-happy [29 April 2014].
16. Nieuwenhuizen, C. & Oosthuizen, T.F.J. 2013. Business management a contemporary compilation.
Roodepoort: FVBC.
17. Bennett, J.A. & Nieman, G. (Eds) 2006. Business management: A value chain approach. Pretoria: Van
Schaik.
18. Katz, R. 1974. Skills of an effective administrator. Harvard Business Review. September/October 1974.
pp. 90–102.
19. Hellriegel, D., Jackson, S.E., Slocum, J., Louw, L. Staude, G., Amos, T., Klopper, H.B., Louw, M. &
Oosthuizen, T.F.J., Perks, S. & Zindiye, S. 2012. Management. 4th SA ed. Cape Town: Oxford
University Press.
20. Bristow, M. 2001. Management competencies. Manchester: University of Manchester Institute of Science
and Technology.
21. Schoeman, C. Bribe, facilitation payment or commission? 2014. www.ethicsmonitor.com [Online].
Available: http://www.ethicsmonitor.co.za/Article.aspx?AID=63 [27 June 2014].
22. Robbins, S.P. & Coulter, M. 2014. Management. 12th ed. London: Pearson.
23. Mintzberg, H. 1990. The manager’s job: Folklore and fact. Harvard Business Review. pp. 49–61.
25. Mintzberg, H. 1990. The manager’s job: Folklore and fact. In: Harvard Business Review. pp. 49–61.
26. Ibid.
27. Ibid.
Operations management is a wide field and this chapter introduces the basic developments and ideas
(sub-functions, concepts and principles) of the discipline. It explains the importance of operations
management as the core function of any organisation (and/or business plan). The chapter therefore focuses on
different operations systems (e.g. projects), productivity concepts, cross-functional process management,
production planning, scheduling and control, lean production, demand management, capacity concepts,
inventory management and a holistic approach to quality management (TQM) and operations improvement.
Learning outcomes

• understand the background, developments and importance of operations management as the core
organisational function
• discuss what productivity is
• describe the characteristics of different operations systems
• understand the operations guidelines of design
• explain operations planning and control
• understand the concepts related to sequencing, scheduling, and managing bottlenecks (narrow places
where flow is restricted)
• think of ways to change capacity to suit change in demand
• discuss how to manage inventory, calculate order quantities, and decide when to re-order required
materials
• understand projects and project management as an important and alternative operations system
• use basic Gantt charts and network analysis
• understand the essence of total quality management and operations improvement
• discuss the principles of operations safety, quality, maintenance, and improvement.
3.1 Introduction
An operation is the ‘heart’ of any organisation and can be referred to as the ‘engine’ of the organisation.
Operations management (OM) therefore involves the management of the conversion (transformation)
processes, in all kinds of organisations for the manufacturing of goods and/or for rendering of services. Since
operations management is about creativity, design, productivity and adding value, it should be given pride of
place in the affairs of any business. It is the closest an organisation comes to the act of creation and to create
value. An operation is a process in which inputs are transformed into outputs, the word can also refer to any
new task that involves a transformation, such as a new set-up, improving facilities, maintenance, or making
something unique.
The scope of operations management ranges across the organisation.1 A modern view of the scope of
operations management is the integrated supply chain that describes the material flow from purchasing to
transformation to distribution. Stevenson links the fascinating subject matter of operations management to the
creativity of everyday life, productivity, e-business, global competition and underscores the need for effective
operations management by referring to examples of many historic economic disasters such as motor vehicle
recalls, oil spill disasters and even dysfunctional state legislatures.
Today’s economies depend on businesses having good operations management. The contributions of
operations management to society include:2
• better quality goods and services
• higher standards of living
• improved working conditions
• a concern for the environment.
3.2 A brief history of operations management

In the past, the act of overseeing the manufacturing of products was described as production management.
Today the term operations management is used instead, although this new term also covers the management
process in service-delivery organisations.
Production or operations management began in the Industrial Revolution. Adam Smith, for instance,
insisted that workers should specialise (concentrate on special skills). Henry Gantt, Frank and Lillian
Gilbreth, and Frederick Taylor were also important people in this field. Gantt began using schedule charts,
the Gilbreths (who had 12 children and used the slogan ‘cheaper by the dozen’) used time-and-motion
studies, and Taylor used process analysis.
In the past 100 years, production or operations management has developed from a set of newly
discovered ideas to a collection of developed and combined concepts.
3.3 The future of operations management

The innovative economy will see how innovative capacity is spurred by technological externalities and more
innovative supply-chains. Organisational agility (e.g. mass customisation) will become the skill of the future.
This will enable operations to respond with minimum disruption in terms of business process
re-configurability. Agile organisations are nimble and have the ability to react (move) quickly and easily.
Services operations will increase and concepts related to service innovation, servitisation, deployment of
service innovations, productisation of services and servitisation of products will become more relevant.
Modern operations management is very much the same in terms of its principles, tools and functions, but
its application is much more organisation-wide. Operations management is therefore not only confined to the
factory since process management is organisation-wide. The logical reason for this is the importance of
process management (a typical operations concept) in all functions of the organisation. The annual
international operations management conference (Euroma) held every year is a good indication of how the
subject of operations management evolves, with recent thematic paper presentations such as sustainable
operations, lean and agile operations, service operations, servitisation, total quality management and project
management.
3.4 Operations management is the core function of any organisation

Operations management is the core (central) function in all organisations, and is also important in all parts of
the business, because all the activities aim to add value. Operations management is a ‘make or break’ activity
because in most businesses it works with the bulk of its assets and resources. It is easy to understand the
importance of operations management in making tangible products like furniture, paint, motor vehicles, etc.
It may not be so clear in the service industries, although any business produces something, whether it is
tangible or not. Even not-for-profit organisations use resources to produce something. The process of adding
value (making money) is an operations function. Slack, Chambers and Johnston state: ‘Operations
management uses resources to appropriately create outputs that fulfil defined market requirements.’ These
authors also say that operations decisions are the same in commercial and not-for-profit organisations, but
that a new agenda is arising because of a changing business environment and modern business pressures. 3
Some examples of the items on this new agenda are ethical sensitivity, health and safety, sound
environmental management, and seeking ways to use new technologies. Operations management will
continue to remain crucial, in spite of all the new challenges. It will continue to affect profitability, it will
remain the way to achieve strategic performance objectives, and it will continue trying to satisfy a wide range
of stakeholders.
If one needs to pick out one particular performance objective, then this would be agility, which in
physical terms means being quick and supple. It is also therefore the ability to react quickly and flexibly. An
agile operation responds to uncertainty in the market (the external customer) and also has several advantages
for the internal customer. An agile operation is one where the trade-offs between performance objectives
(speed, cost, quality, etc.) are limited. These abilities will benefit several other objectives, and agility should
therefore be an obvious strategic business principle.
3.5 Effectiveness, efficiency, and productivity

Businesses come in many forms, and therefore have many operations (see Table 3.1). However, all
operations should be value-adding processes in which inputs are transformed into outputs. Operations
management involves making these processes effective (doing the right things to create the most value for the
company) and efficient (doing something at the lowest possible cost).
Table 3.1 Examples of transformation processes
An operations manager’s key challenge is to increase the value of the business’s outputs relative to the cost
of its inputs. Productivity is a common measure of how well inputs are being used by a business
(micro-productivity) or a country (macro-productivity).
Productivity is sometimes measured by means of the following formula:
OUTPUTS ÷ INPUTS = PRODUCTIVITY
But just saying that productivity is ‘output divided by input’ is not the whole story. One can be ‘productive’
without really producing usable output. Productivity is therefore not only efficiency, but also effectiveness. In
addition, there must be a market for what is produced, in order for the process of production to be considered
‘productive’. This brings us to a more accurate formula for productivity that uses output income, which is
usable output quantity, and input expenses, which are the available input quantity:
OUTPUT INCOME ÷ INPUT EXPENSES = PRODUCTIVITY
Lead time, or throughput time refers to general time for the actual manufacturing process. The main
elements of lead time are:
• queue time: the period for which a job stays in the queue at a work centre
• set-up time (the time needed to prepare equipment for processing a new job)
• processing time (the actual time needed to process the job)
• waiting time (the empty time between the processing of a job and its transportation to the next work centre)
• transportation time (the time needed to move the job from one work centre to the next)
• inspection time (the time needed to check whether the job comes up to quality standards).
Operations management is concerned all the time with process management, reducing all kinds of lead-time
elements to improve both effectiveness and efficiency. Process throughput time can be reduced by:
• re-engineering
• getting new equipment
• performing activities in parallel (side by side)
• changing the order of activities
• reducing interruptions.
CRITICAL THINKING
Think of an example to explain why output income / input expenses = productivity, is a better way of
describing productivity than outputs / inputs = productivity?
3.5.1 Process management

Stevenson4 refers to process management as a central role of all management. The processes associated
within the different functional areas are the following three process categories:
1. Upper management processes refer to governing, visioning, designing, strategising and so forth.
2. Operational processes are the core functional processes (such as purchasing, production and marketing) that
make up the value stream.
3. Supporting processes such as information technology, accounting and human-resources management.
All processes need to be managed in terms of design, sustainability and variation. Variation occurs in all
business processes due to two major reasons, namely variability or variety. Random variability is always
present and it is inherent in every process. Even stable processes will have random variability, which is
natural. Variety occurs as the result of deliberate management choices. Management decisions regarding
process designs will have a definite effect on the performance of the process in terms of variability.
Stevenson distinguishes between the four types of variation:
1. Variety of goods and services being offered
2. Structural variation in demand patterns (predictable trends and seasonal variations)
3. Assignable variation due to mistakes, incorrect methods, defective inputs, old equipment and so on
4. Random variation is natural variability present to some extent in all processes. Even stable processes that
are in control will therefore have some natural variation.
3.6 Operations strategies

All business activities are aimed at achieving objectives. Business strategies are wider, large-scale plans for
the future, which aim to achieve these objectives in the very best way. Significant (meaningful) decisions that
have a big effect can also be called business strategies.
Pearce and Robinson identify the following core aspects of a business’s strategic decisions:5
• Strategic decisions are future-orientated. They are made on the basis of anticipation and forecast, aiming to
choose the most promising strategic position.
• Strategic decisions must involve top-level management because they affect several areas of the business. At
this level, there is a need to understand and anticipate the wide effects of such decisions.
• Strategic decisions involve a lot of resources. Human and non-human resources must come from either
inside or outside the business.
Slack et al. define operations strategies as the total patterns of decisions and actions that form the roles,
objectives and activities of each part of the operation, so that they support the organisation’s business
strategies.6 Operations strategies are designed, created, and implemented to make the business more
competitive in the market.
In general, the operations-management function has three important strategic roles, namely:
• driving business strategy
• supporting business strategy
• implementing business strategy.
Performance objectives are the skills that drive business strategy. They can be referred to as ‘strategic
performance objectives’. Examples of these are quality, cost, service delivery, speed, reliability, consistency,
responsiveness, and flexibility. Businesses try to achieve more than one of these at the same time.
However, it often happens that when one performance objective is achieved very well, another one is
achieved less well. According to Trade-off Theory, operations managers must choose to trade-off one
performance objective against another. The best example is the quality versus cost trade-off. However, the
Trade-off Theory has been challenged. It has been suggested that rather than deciding which performance
objectives to sacrifice in order to concentrate on others, operations managers should change whatever is
causing one objective to go downhill when another improves, and create continuous improvement.
3.7 Product design and operations design

Product designs are plans for goods or services. Operations designs are plans for how to produce goods or
services. Good things come from good product designs and good operations designs; bad things usually come
from bad product designs or bad operations designs.
Examples of South African inventions7

1. Appletiser and Grapetiser – a pure aerated (sparkling) fruit juice recipe
2. Kreepy Krauly – the well-known automatic pool-cleaning device
3. PUDU crime-prevention project (explosive gel that freezes the cash if a robbery of cash/goods occurs)
4. Pratley’s Putty – a two-part clay-like mixture which bonds into a very hard and strong compound
5. Mine-hoist cage door that reduces loading time from 72 to 42 seconds
6. Computicket – the first computerised ticket-sales system in the world
7. Noise Clipper custom-made hearing protection devices (HPDs)
Take note of the following ten guidelines for effective product and operations designs:8
1. Take into account target-market expectations and target costs. (Designers should be experimental in their
search for materials and methods to ensure that the new product designs are not too expensive.)
2. Simplify assemblies and reduce the number of parts or operations to bring down costs, improve quality, and
make production or service easier.
3. Ensure that exact customer or client requirements are known, so that designs are based on actual needs.
Designers should also be absolutely clear about the required specifications and possible variations.
4. Ensure that there is enough available process ability to carry out the design.
5. Use standard materials, parts, methods and procedures of known and proven quality. Untested materials
and methods are risky.
6. Design parts and service elements that are multi-functional (have several uses) and that can be used in
different circumstances or situations.
7. Design products for ease of joining, separating or rejoining, and services for ease of coupling or
Another random document with
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presente negoçio, por lo qual le
obliga aora a usar de mayor
uirtud. Yo creo se contentará con
esto, pues teniendoos en su
poder ha de hazer por fuerça lo
mismo de rescataros por lo que él
pidiere. El abençerraje le
respondio: Bien paresçe, señora,
que el amor que me teneys no da
lugar que me aconsejeys bien,
que çierto no caere yo en tan gran
yerro como éste, porque si
quando me uenia a uerme solo
con uos estaua obligado a cumplir
mi palabra, agora que soy uuestro
se entiende más obligaçion. Yo
mismo boluere a Alora y me
pondre en las manos del Alcayde
della, y tras hazer yo lo que deuo,
haga la fortuna lo que quisiere.
Pues nunca Dios quiera, dixo
Xarifa, que yendo uos a ser
preso, yo quede libre, pues no lo
soy: yo quiero acompañaros en
esta jornada; que ni el amor que
os tengo, ni el miedo que he
cobrado a mi padre de auelle
offendido, me consentiran hazer
otra cosa. El moro llorando de
contentamiento la abraço y le
dixo: Siempre vays, alma mia,
acresçentandome las merçedes,
hagase lo que uos quereys, que
assi lo quiero yo. Con este
acuerdo antes que fuesse de dia
se leuantaron, y proueydas
algunas cosas al viaje
neçessarias, partieron muy
secretamente para Alora. Ya
amenesçia, y por no ser
conosçida, lleuaua el rostro
cubierto. Con la gran priessa que
lleuauan llegaron en muy breue
tiempo a Alora, y yendose
derechos al castillo, como a la
puerta tocaron, fue luego abierta
por las guardas, que ya tenian
notiçia de lo passado. El ualeroso
Alcayde los reçibio con mucha
cortesia, y saliendo a la puerta
Abindarraez, tomando a su
esposa por la mano, se fue a él y
le dixo: Mira, Rodrigo, de
Naruaez, si te cumplo bien mi
palabra, pues te prometi de boluer
un preso, y te traygo dos, que uno
bastaua para uençer muchos. Ves
aqui mi señora: juzga si he
padesçido con justa causa,
reçibenos por tuyos, que yo fio mi
persona y su honra de tus manos.
El Alcayde holgo mucho, y dixo a
la dama: Señora, yo no sé de
uosotros quál uençio al otro: mas
yo deuo mucho a entrambos.
Venid y reposareys en nuestra
casa, y tenedla de aqui adelante
por tal, pues lo es su dueño. Con
esto se fueron a su aposento, y
de ay a poco comieron, porque
uenian cansados. El Alcayde
preguntó al moro qué tal uenia de
sus llagas. Paresçe (dixo el) que
con el camino las tengo harto
enconadas y con dolor. La
hermosa Xarifa muy alterada
desto, dixo: ¿Qué es esto, señor,
llagas teneys uos que yo no
sepa? Dixo el: Quien escapó de
las uuestras en poco tendra todas
las otras. Verdad es que de la
escaramuça de la noche saqué
dos pequeñas heridas, y el
trabajo del camino y el no auerme
curado me ha hecho algun daño,
pero todo es poco. Bueno sera
que os acosteys (dixo el Alcayde)
y vendra un cyrujano que yo
tengo aqui en el castillo y curaros
ha. Luego la hermosa Xarifa le
hizo desnudar, todauia alterada,
pero con harto sossiego y reposo
en su rostro, por no le dar pena
mostrando que la tenía. El
cyrujano uino, y mirandole las
heridas dixo: Que como auian
sido en soslayo no eran
peligrosas, ni tardarian en sanar
mucho, y con çierto remedio que
luego le hizo, le mitigó el dolor, y
de ay a quatro dias como le
curaua con tanto cuydado estuuo
sano. Acabando un dia de comer,
el abençerraje dixo al Alcayde
estas palabras: Rodrigo de
Naruaez (segun eres discreto) por
la manera de nuestra uenida
aurás entendido lo demas, yo
tengo esperança que este
negoçio que aora tan dañado está
se ha de remediar por tus manos.
Esta es la hermosa Xarifa de
quien te dixe es mi señora y
esposa, no quiso quedar en Coyn
de miedo de su padre, porque
aunque él no sabe lo que ha
passado, todauia se temio que
este caso auia de ser descubierto.
Su padre está aora con el Rey de
Granada, y yo sé que el Rey te
ama por tu esfuerço y uirtud
aunque eres christiano. Suplicote
alcançes dél que nos perdone
auerse hecho esto sin su liçençia
y sin que él lo supiesse: pues ya
la fortuna lo rodeó y traxo por este
camino. El Alcayde le dixo:
Consolaos, señores, que yo os
prometo como hijo dalgo, de
hazer quanto pudiere sobre este
negoçio, y con esto mandó traer
papel y tinta, y determinó de
escreuir una carta al Rey de
Granada, que en uerdaderas y
pocas palabras le dixesse el caso,
la qual dezia assi:
Muy poderoso Rey de Granada,
el Alcayde de Alora Rodrigo de
Naruaez tu servidor besa tus
reales manos, y digo que
Abindarraez Abençerraje, que se
crió en Cartama auiendo nasçido
en Granada, estando en poder del
Alcayde de la dicha fortaleza, se
enamoró de la hermosa Xarifa su
hija. Despues tú por hazer
merced al Alcayde, le passaste á
Coyn. Los enamorados por
assegurarse se desposaron entre
sí; y llamado el Abençerraje por el
ausençia del padre della que
contigo tienes, fue a su fortaleza,
yo le encontre en el camino, y en
çierta escaramuça que con él
tuue en que se mostró muy
valiente, esforçado y animoso, le
gané por mi prisionero, y
contandome su caso, apiadado y
conmouido de sus ruegos, le hize
libre por dos dias, él fue y se vió
con su esposa, de suerte que en
la jornada cobró a su esposa y
perdio la libertad. Pues uiendo
ella que el Abençerraje boluio a
mi prision, quiso uenir con él, y
assi estan aora los dos en mi
poder. Suplico te no te offenda el
nombre de Abençerraje, pues
éste y su padre fueron sin culpa
de la coniuraçion contra tu Real
persona hecha, y en testimonio
dello biuen ellos agora. A tu
Alteza humildemente suplico el
remedio destos tristes amantes se
reparta entre ti y mí, yo perdonare
su rescate dél, y libremente le
soltaré, y manda tú al padre della,
pues es tu vassallo, que a ella la
perdone, y a él reçiba por hijo,
porque en ello allende de
hazerme a mí singular merçed,
harás aquello que de tu uirtud y
grandeza se espera.
Con esta carta despachó vno de
sus escuderos. El cual llegando
hasta el Rey, se la dio, él la tomó,
y sabiendo cuya era, holgo
mucho, porque a este solo
christiano amaua por su ualor y
persona, y en leyendola, boluio el
rostro, y uio al Alcayde de Coyn, y
tomandole a parte, le dio la carta,
diziendole: lee esta carta, y él la
leyo, y en uer lo que passaua,
reçibio gran alteraçion. El Rey
dixo: No te congoxes, aunque
tengas causa; que ninguna cosa
me pedira el Alcayde de Alora,
que pudiendo la hazer, no la
haga, y ansi te mando uayas sin
dilaçion a Alora, y perdones a tus
hijos, y los lleues luego á tu casa,
que en pago deste seruiçio yo te
haré siempre merçedes. El Moro
lo sintio en el alma, más uiendo
que no podia passar del mandado
de su Rey, boluiendo de buen
continente, y sacando fuerças de
flaqueza, como mejor pudo, dixo
que ansi lo haria. Partiose lo más
presto que pudo el Alcayde de
Coyn, y llegó a Alora, a donde ya
por el escudero se sabía lo que
passaua, y fue muy bien reçebido.
El Abençerraje y su hija
paresçieron ante él con harta
uerguença, y le besaron las
manos, e los reçibio muy bien, y
les dixo: No se trate de cosas
passadas; el Rey me mandó
hiziesse esto, yo os perdono el
aueros casado, sin que lo
supiesse yo; que en lo demás,
hija, nos escogistes mejor marido
que yo os lo supiera dar. Rodrigo
de Naruaez holgo mucho de uer
lo que passaua, y les hazia
muchas fiestas y banquetes. Vn
dia acabando de comer, les dixo:
Yo tengo en tanto auer sido
alguna parte para que este
negoçio esté en tan buen estado,
que ninguna cosa me pudiera
hazer más alegre, y ansi digo que
sola la honra de aueros tenido por
mis prisioneros, quiero por el
rescate desta prisión: vos,
Abindarraez, sois libre, y para ello
teneys liçençia de yros donde os
pluguiere, cada y cuando que
quisieredes. El se lo agradesçio
mucho, y ansi se adereçaron para
partir otro dia, acompañandolos
Rodrigo de Naruaez, salieron de
Alora, y llegaron a Coyn donde se
hizieron grandes fiestas y
regozijos a los desposados, las
quales fiestas pasadas, tomando
los un dia a parte el padre, les
dixo estas palabras: Hijos, agora
que sois señores de mi hazienda,
y estais en sosiego, razon es que
cumplays con lo que deueys al
Alcayde de Alora, que no por auer
usado con uosotros de tanta
uirtud y gentileza, es razon pierda
el derecho de vuestro rescate,
antes se le deue (si bien se mira)
muy mayor, yo os quiero dar
quatro mil doblas zaenes,
embiadselas, y tenedle desde
aqui adelante, pues lo meresçe,
por amigo, aunque entre él y
uosotros sean las leyes
diferentes. El Abençerraje se lo
agradesçio mucho, y tomandolas,
las embió a Rodrigo de Naruaez,
metidas dentro de un mediano y
rico coffre, y por no mostrarse de
su parte corto y desagradecido,
juntamente le embió seys muy
hermosos y enjaezados cauallos,
con seys adargas y lanças, cuyos
hierros y recatones eran de fino
oro. La hermosa Xarifa le escriuio
una muy dulce y amorosa carta,
agradesçiendole mucho lo que
por ella auia hecho. Y no
queriendo mostrarse menos
liberal y agradesçida que los
demas, le embió una caxa de
açipres muy olorosa, y dentro en
ella mucha y muy preçiosa ropa
blanca para su persona. El
Alcayde ualeroso tomó el
presente, y agradesçiendolo
mucho a quien se lo embiaua,
repartio luego los cauallos y
adargas y lanças por los hidalgos
que le acompañaron la noche de
la escaramuça, tomando uno para
sí, el que más le contentó, y la
caxa de açipres, con lo que la
hermosa Xarifa le auia embiado, y
boluiendo las quatro mil doblas al
mensajero, le dixo: Deçid a la
señora Xarifa, que yo recibo las
doblas en rescate de su marido, y
a ella le siruo con ellas para
ayuda de los gastos de su boda,
porque por sola su amistad
trocaré todos los intereses del
mundo, y que tenga esta casa por
tan suya como lo es de su marido.
El mensajero se boluio a Coyn,
donde fue bien reçibido, y muy
loada la liberalidad del
magnanimo capitan, cuyo linaje
dura hasta aora, en Antequera,
correspondiendo con magnificos
hechos al origen donde proçeden.
Acabada la historia, la sábia
Feliçia alabó mucho la graçia, y
buenas palabras con que la
hermosa Felismena la auia
contado, y lo mismo hizieron las
que estaban presentes, las cuales
tomando liçençia de la sábia se
fueron a reposar.
Fin del cuarto libro.

NOTAS:
[1254] V., angusta.
[1255] M., venir.
[1256] En la edición de Milán se intercalan aquí las cuatro
octavas siguientes:
A Plania Lampuñana más hermosa

que l' hermosura misma, y más perfeta,
mirad, pastores, y vereis la cosa
que más animos rinde y los subjeta.
Mirad por una parte quán graçiosa,
por otra ved quán grave y quán discreta:
y vereis de las partes hecho un todo,
que a todas las del mundo exçede el modo.
Aquella clara luz que rresplandeçe
de modo que el sol huye y se le esconde,
doña Artemisa es sola, qu'engrandeçe
la insigne y alta cosa de Vizconde.
La flor de Italia es ella y quien mereçe
estar adonde está: que bien rresponde
linaje a hermosura y gentileza
y a quanto pudo dar naturaleza
Mirad Barbara Estanga, a quien s'inclina
no solo Amor, sino Minerva y Marte,
donde hay tanta beldad que s'imagina
que solo paró alli natura y arte:
su discreçion, su platica divina
para escreuilla soi muy poca parte:
ni bastan las çien lenguas de la fama
para saber loar tan alta dama.
¿Quién es aquella fénis do ha mostrado
su fuerza y su poder naturaleza?
¿Quién es la que hoy al mundo ha despojado
de gran valor, virtud, bondad, grandeza?
¿Quién es esta, dezid, do se han sumido
la hermosura, graçia y gentileza?
Doña Luisa de Lugo y de Mendoza
a quien la poca edad no haze moza.
[1257] Falta el más en la edición de Milán.

[1258] Le en la edición de Milán.
[1259] En la edición de Milán termina aquí el libro 4.º con estas
palabras: «Y acabando de çenar, y tomando liçençia de la sabia
Feliçia, se fué cada uno al aposento que aparejado le estaba».
Falta, por consiguiente, toda la historia de Abindarráez, que es
adición, hecha en ediciones posteriores á la muerte de Jorge de
Montemayor.
LIBRO QUINTO
DE LA DIANA DE
GEORGE DE
MONTEMAYOR
Otro dia por la mañana, la sábia

Felicia leuantó, y se fue al
aposento de Felismena, la cual
halló acabandose de vestir, no
con pocas lagrimas,
paresçiendole cada hora de las
que alli estaua mil años. Y
tomandola por la mano, se
salieron a vn corredor que estaua
sobre el jardin, adonde la noche
antes hauian çenado, y
hauiendole preguntado la causa
de sus lagrimas, y consolandola
con dalle esperança que sus
trabajos aurian el fin que ella
deseaua, le dixo: Ninguna cosa
hay oy en la vida más aparejada
para quitalla a quien quiere bien,
que quitalle con esperanças
inçiertas el remedio de su mal:
porque no ay hora, en quanto
desta manera biue, que no le
parezca tan espaçiosa quanto las
de la vida son apressuradas. Y
porque mi desseo es, que el
nuestro se cumpla, y despues de
algunos trabajos, consigays el
descanso que la fortuna os tiene
prometido, uos partireys desta
uuestra casa, en el mismo habito
en que veniades, quando a mis
Nimphas defendistes de la fuerça
que los fieros saluages les
querian hazer. Y tened entendido,
que todas las vezes que mi aiuda
y fauor os fuera neçessario, lo
hallareys sin que ayays menester
embiarmelo a pedir: assi que
(hermosa Felismena) vuestra
partida sea luego, y confiad en
Dios que vuestro desseo aurá
buen fin: porque si yo de otra
suerte lo entendiera, bien podeys
creer, que no me faltarán otros
remedios para hazeros mudar el
pensamiento, como a algunas
personas lo he hecho. Muy
grande alegria reçibio Felismena,
de las palabras, que la sábia
Feliçia le dixo, a las quales
respondio: No puedo alcançar
(discreta señora) con qué
palabras podria encaresçer, ni
con qué obras podria seruir la
merçed que de vos reçibo. Dios
me llegue a tiempo en que la
experiençia os dé a entender mi
desseo. Lo que mandays pondre
yo luego por obra, lo cual no
puede dexar de suçederme muy
bien: siguiendo el consejo de
quien para todas las cosas sabe
dallo tan bueno. La sabia Feliçia
la abraçó, diziendo: yo espero en
Dios, hermosa Felismena, de
veros en esta casa con más
alegria de la que lleuais. Y porque
los dos pastores y pastoras nos
estan esperando, razon será que
vaya a dalles el remedio que tanto
an menester. Y saliendose ambas
a dos a vna sala hallaron a
Syluano, y a Sireno, y a Belisa, y
a Seluagia, que esperandolos
estauan, y la sábia Feliçia dixo a
Felismena: Entretened (hermosa
señora) nuestra compañia entre
tanto que yo uengo: y entrandole
en un aposento, no tardó mucho
en salir, con dos uasos en las
manos de fino cristal con los pies
de oro esmaltados, y llegandose a
Sireno, le dixo: Oluidado pastor, si
en tus males uuiera otro remedio,
si no este, yo te lo[1260] buscara
con toda diligençia possible, pero
ya que no puedes gozar de
aquella que tanto te quiso, sin
muerte agena, y está este en
mano de solo Dios, es menester
que reçibas otro remedio para no
dessear cosa que es imposible
alcançalla. Y tú, hermosa
Seluagia, y desamado Syluano,
tomad esse uaso, en el qual
hallareys grandissimo remedio
para el mal passado, y prinçipio
para grandissimo contento: del
qual uosotros estays bien
descuydados. Y tomando el uaso,
que tenía en la mano yzquierda,
le puso en la mano a Sireno, y
mandó que lo beuiesse, y Sireno
lo hizo luego, y Seluagia y
Syluano beuieron ambos el otro: y
en este punto cayeron todos tres
en el suelo adormidos, de que no
poco se espantó Felismena, y la
hermosa Belisa, que alli estaua, a
la qual dixo la sábia Feliçia: no te
desconsueles (o Belisa) que aun
yo espero de uerte tan consolada
como la que más lo estouiere. Y
hasta que la uentura se canse de
negarte el remedio que para tan
graue mal as menester, yo quiero
que quedes en mi conpañia. La
pastora le quiso besar las manos
por ello, Feliçia no lo consintio:
mas antes la abraçó, mostrandole
mucho amor. Felismena estaua
espantada del sueño de los
pastores, y dixo a Feliçia: paresçe
me, señora, que si el descanso
destos pastores está en dormir,
ellos lo hazen de manera, que
biuiran los más descansados del
mundo. Feliçia le respondio: No
os espanteys desso: porque el
agua que ellos beuieron, tiene tal
fuerça ansi la una, como la otra,
que todo el tiempo que yo
quisiere, dormiran, sin que baste
ninguna persona a despertallos. Y
para que ueays si esto es ansi,
prouá a llamarlo. Felismena llegó
entonces a Syluano, y tirándole
por vn braço, le començo a dar
grandes bozes, las quales
aprouecharon tanto, como si las
diera a un muerto: y lo mismo le
auino con Sireno y Seluagia, de lo
que Felismena quedó assaz
marauillada. Feliçia le dixo: pues
más os marauillareys despues
que se despierten, porque uereys
una cosa la más estraña que
nunca imaginastes; y porque me
paresçe que el agua deue auer
obrado lo que es menester, yo
quiero despertar, y estad atenta,
porque oyreys marauillas. Y
sacando un libro de la manga, se
llegó a Sireno: y en tocandole con
él sobre la cabeça, el pastor se
leuantó luego en pie con todo su
juyzio, y Feliçia le dixo: Dime,
Sireno, si acaso uiesses la
hermosa Diana con su esposo, y
estar los dos con todo el
contentamiento del mundo
riendose de los amores que tú
con ella auias tenido, qué harias?
Sireno respondio: Por çierto
señora, ninguna pena me darian,
antes les ayudaria a reyr de mis
locuras passadas. Feliçia le
replicó: ¿y si acaso ella fuera
ahora soltera y se quisiera casar
con Syluano y no contigo, qué
hiziera? Sireno le respondio: yo
mismo fuera el que tratara de
conçertallo. ¿Qué os parece (dixo
Feliçia contra Felismena) si el
agua sabe desatar los nudos, que
este peruerso de amor haze?
Felismena respondio: jamas,
pudiera creer yo, que la sçiençia
de una persona humana pudiera
llegar a tanto como esto. Y
boluiendo á Sireno, le dixo: ¿qué
es esto, Sireno? Pues las
lagrimas y sospiros con que
manifestauas tu mal, tan presto
se an acabado? Sireno le
respondio: pues que los amores
se acabaron, no es mucho que se
acabase lo que ellos me hazian
hazer. Felismena le boluio a dezir:
¿y que es possible, Sireno, que
ya no quieres bien más a Diana?
El mismo bien le quiero (dixo
Sireno) que os quiero a uos, y a
otra qualquiera persona, que no
me aya offendido. Y viendo Feliçia
quán espantada estaua
Felismena de la subita mudança
de Sireno, le dixo: Con esta
mediçina curara yo, hermosa
Felismena, vuestro mal, y el
vuestro, pastora Belisa, si la
fortuna, no os tuuiera guardadas
para muy mayor contentamiento
de lo que fuera ueros en nuestra
libertad. Y para que ueays quán
differentemente ha obrado en
Syluano y en Seluagia la
mediçina bien será despertarlos,
pues basta lo que han dormido. Y
poniendo el libro sobre la cabeça
a Siluano se leuantó, diziendo: ¡O
hermosa Seluagia, quán gran
locura ha sido, auer empleado en
otra parte el pensamiento
despues que mis ojos te uieron!
¿Qué es esso Syluano, dixo
Feliçia, teniendo tan presto el
pensamiento en tu pastora Diana,
tan subitamente le pones ahora
en Seluagia? Syluano le
respondio: Discreta señora, como
el nauio anda perdido por la mar
sin poder tomar puerto seguro,
ansi anduuo mi pensamiento en
los amores de Diana todo el
tiempo que la quise bien, mas
agora he llegado a un puerto,
donde plega a Dios que sea tan
bien recebido, como el amor que
yo le tengo lo meresçe. Felismena
quedó tan espantada del segundo
genero de mudança que uio en
Syluano, como del primero que en
Sireno auia uisto, y dixole riendo:
pues qué hazes, que no
despiertas a Seluagia, que mal
podra oyr tu pena una pastora
que duerme? Siluano entonces
tirandole del braço le començo a
dezir a grandes bozes: Despierta,
hermosa Seluagia, pues
despertaste mi pensamiento del
sueño de las ignorancias
passadas. Dichoso yo, pues la
fortuna me ha puesto en el mayor
estado que se podia dessear:
¿qué es esto, no me oyes, o no
quieres responderme? Cata que
no suffre el amor que te tengo, no
ser oydo. O Seluagia, no duermas
tanto, ni permitas que tu sueño
sea causa que el de la muerte dé
fin á mis dias. Y viendo que no
aprouechaua nada llamarla,
començo a derramar lagrimas en
tan gran abundançia, que los
presentes no pudieron dexar de
ayudalle, mas Feliçia dixo:
Syluano amigo, no te afflijas, que
yo haré que responda Seluagia, y
que la respuesta sea tal, como tú
desseas; y tomandole por la
mano, le metio en un aposento, y
le dixo: No salgas de ay, hasta
que te llame. Y luego boluio a do
Seluagia estaua, y tocandola con
el libro despertó, como los demas
auian hecho. Feliçia le dixo:
Pastora, muy descuydada
duermes. Seluagia respondio:
Señora, qué es del mi Syluano?
no estaua él junto conmigo? Ay
Dios, quién me lo lleuó de aqui?
Si boluiera? Y Feliçia le dixo.
Escucha, Seluagia, que paresçe
que desatinas: as de saber que el
tu querido Alanio está a la puerta,
y dize que ha andado por muchas
partes perdido, en busca tuya, y
trae liçençia de su padre para
casarse contigo. Essa liçençia
(dixo Seluagia) le aprouechará a
él muy poco, pues no la tiene de
mi pensamiento. Syluano qué es
dél? Adonde está? Pues como el
pastor Syluano oyó hablar a
Seluagia, no pudo suffrir sin salir
luego á la sala donde estaua, y
mirandose los dos con mucho
amor, lo confirmaron tan grande
entre sí, que sola la muerte bastó
para acaballo, de que no poco
contentamiento reçibio Sireno, y
Felismena, y aun la pastora
Belisa. Feliçia les dixo: Razon
será, pastores y hermosa pastora,
que os boluays a vuestros
ganados, y tened entendido que
mi fauor jamas os podra faltar, y
el fin de vuestros amores será
quando por matrimonio cada uno
se ayunte con quien dessea. Yo
terné cuydado de auisaros,
quando sea tiempo, y vos
(hermosa Felismena) aparejaos
para la partida, porque mañana
cumple que partays de aqui. En
esto entraron todas las Nimphas
por la puerta de la sala, las cuales
ya sabian el remedio que la sábia
Feliçia auia puesto en el mal de
los pastores: de lo cual reçibieron
grandissimo plazer, mayormente
Dorida, Cinthia, y Polidora: por
auer sido ellas la principal ocasion
de su contentamiento. Los dos

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Introduction to Business Management

and General Management Janine

Introduction to Business Management Prof J.A.

Introduction to Construction Management 2nd Edition

Lean Management: Introduction and In-Depth Study of

Business Management (5th Edition) Paul Hoang

An Introduction to Human Resource Management 3rd

Introduction to Management Accounting, Global Edition,

Introduction to Environmental Management 2 ed. Edition

Introduction to Healthcare Quality Management 4th

2 The task of management

9 The business plan

12 Introduction to general management

18 Controlling the management process

This chapter should enable you to:

Figure 1.1 The organisation as a system

1.3 Organisational environment

Figure 1.2 The organisational environment

The organisational environment has three parts:

1.3.1 The micro-environment

Figure 1.4 Relationships between the business functions in the micro-environment

1.3.2 The market environment

Table 1.1 Consequences of ineffective suppliers

Figure 1.5 An example of how intermediaries affect the end-cost of a product

1.3.3 The macro-environment

Figure 1.6 Factors in the macro-environment

Global warming affects South Africa

How smartphones have changed business

1.3.3.3 The social environment

1.3.3.4 The political environment

An example of the impact of the political environment

1.3.3.5 The economic environment

Table 1.2 The effect of exchange rates18

31 March 2013 31 March 2014

1.3.3.6 The international environment

Chinese imports threaten SA manufacturing sector

1.5 Ethics in data collection

CASE STUDY: WALMART ENTERS THE SOUTH AFRICAN MARKET

1. ____________ is also known as the ‘internal environment’.

2. Global warming is an example of a factor in the ____________ environment.

3. The suppliers of a business form part of its ____________ environment.

This chapter should enable you to:

2.3 What is a manager?2

The effectiveness of a manager lies in his or her ability to:

2.4 Organisations in which managers work

Table 2.1 Organisations in which managers work

Type of organisation Possible forms Specific examples

Governmental organisation (a Government departments and public Department of Trade and

2.5 Levels of management6

Figure 2.1 Management levels and interaction with non-managerial employees

2.5.2 Middle management

2.5.3 First-level management

2.6 Management tasks

Figure 2.2 Primary management tasks

Ensuring successful management and planning while changing ownership at

2.7.1 Production and operations managers

2.7.2 Logistics managers

2.7.3 Information-technology managers

2.7.4 Financial managers

2.7.5 Human-resources managers

2.7.6 Marketing managers

2.7.7 Public-relations managers

2.7.8 Administrative managers