MASSMART

Courtney Fesette

Massmart
Holdings Ltd.
Massmart is a South Africanbased, globally competitive,
regional management group,
invested in a portfolio of
differentiated,
complementary, focused
wholesale and retail formats
each reliant on high volumes
and operational excellence as
the foundation of price
leadership, in the distribution
of mainly branded consumer
goods for cash.

Massmart
Founded in 1990
The Group comprises nine wholesale and retail chains, and one buying group
Massmart operates more than 350 stores in South Africa and 12 other sub-Saharan countries through the
Groups four operating divisions:
Massdiscounters, Masswarehouse, Massbuild and Masscash.
Its headquarters are in Johannesburg.
Total Massmart Associates:25,652
Social Responsibility:
School Nutrition Programs
Anti-Malaria initiatives
Small farmer marker access
Environmental Responsibility:
Water harvesting
E-waster landfill diversion
Seafood supplier advocacy and sustainable seafood sourcing
Corporate Responsibility:
Impilo program
Diversity

Positive Consequences of MNC

Provides not only goods, but services as well
Effectively increase Walmarts profits
Contribute positively to the living standards of South Africans
Provide access to more affordable products and employment
opportunities
Issue?
These positive outcomes can only contribute to South African society if
very specific conditions were imposed

Negative Consequences of MNC

Activities are compared to country as a whole, therefor requires
government intervention
MNCs do not have the corresponding structures to ensure accountability, which
places an even greater responsibility on governments to impose conditions on
mergers
accountability gaps= the challenges that might result from governments
assuming (or not assuming) new responsibilities in the light of the growing
influence of MNCs

Stretches into politics:

Involvement between government officials and MNCs makes it possible for these
enterprises to distort the outcome of political processes
Can become repressive(by advancing their financial power)
Unaccountable political structures

Painting Africa Pink

Game
In 11 African countries by 2010
Mostly in shopping malls, began to shift to stand-alone stores to make a
fundamental mind shift to think smaller when doing business in Africa
Merchandise sold is based on the local needs and culture of the area the
store is located
Ex: Mosi beer sold in Zambia, but not South Africa
Ex: Lagos demanded a broad range of furniture
Ex: Mozambique stock 250 lines of dry and pre-packed food

Had support from African countries because they wanted to encourage

Games investment
Game was prepared to finance local development if it failed

Globalizing Africa
An American corporation upholding another countrys culture
Provides more jobs
Opens more political and financial doors
Set up commission to study how small suppliers could best participate in Wal-Marts
supply chain
Fast-growing middle class

Works Cited
Adeleye, Ifedapo.The Changing Dynamics of International Business in Africa. N.p.:
n.p., n.d. Print.
"Africa."Africa. Walmart, n.d. Web. Apr. 2016.
Fourie, Willem. "Can MNCs be Held Morally Responsible for the Unintended
Consequences of their Operations?"African Journal of Business Ethics7.1 (2013):
26-31.ProQuest.Web. 19 Apr. 2016.
"Massmart Overview."Massmart. N.p., 2013. Web.