| Summary: | Thesis (MBA (Business Management))--University of Stellenbosch, 2006. === ENGLISH ABSTRACT: Since packaging materials comprise a substantial percentage, namely 35% of the entire input
cost on a fruit farm, the four largest fruit producers in the Western Cape decided in 1988 to
erect their own corrugated cardboard plant at Worcester, namely A P L Cartons.
The driving force of the company is to minimise the longterm input cost of packaging material
in a sustainable manner. Therefore cost effectiveness and competitiveness had to be a distinct
characteristic of the company. The company's corporate strategy is aimed at strong growth by
means of a best value strategy that adds to the value of clients' products and production
processes.
Despite a well formulated strategy, it has been found that key targets are not met according to
expected standards. While profitability, productivity, cost effectiveness and the workers'
moral are on the decline, there is a constant rising in downtime, quality rejections and waste at
the plant. The problem is further complicated when one takes into account that the company
still succeeds in maintaining its specific growth performances. Yet, this take place at the
expense of effectiveness in the plant.
A literature study will be conducted to establish the general causes for strategic gaps at
companies. Against this background the reasons for the gap between the strategic direction
and the company results at A P L Cartons will be identified.
A literature study will also be conducted to determine the project management and strategic
management approach to goal achievement. This will be developed into a management model
for bridging the strategic gap at A P L Cartons.
An investigation into companies that have experienced project failures revealed two main
causes, namely that such companies:
a) Don't have a framework for projects; or
b) Don't have a distinct strategic direction.
Therefore strategic, as well as project managers must act as facilitators who rely on delegating
and co-ordinating in order to create conditions for performance instead of failure.
From the study it appeared that the main reasons for strategic gaps at A P L Cartons are the
following, namely :
a) Although a definite strategic direction has been formulated, the company does not have a
proper framework for the implementation of its strategy, projects and initiatives.
b) Functional managers do not contribute on a cross-functional basis to the training and
development of skills lacking in other departments.
c) The development of functional and competitive strategies don't go further merely than
their formulation. Therefore they can't support the implementation of corporate strategy.
d) Senior management is too intent on operational detail, so much so that a helicopter like
vision of a strategic direction and its implementation mostly is lacking.
e) There doesn't exist a procedure for the identification, handling and managing of critical
issues for strategy implementation.
The study suggests two related tools for the handling of critical matters, namely a critical issue
management form and a critical issue register. This forms part of a management tool that can
be utilised alongside a management model and management framework, especially developed
for A P L Cartons to strive for reaching strategic goals. The framework was developed after
discovering that both strategy and projects can be managed within the same framework of
reference since both share the same origin and substructure. The origin is found in corporate
objectives, while a directional value system provides its substructure. === AFRIKAANSE OPSOMMING: Aangesien pakmateriaal 'n wesenlike gedeelte, naam1ik 35 persent van totale boerdery
insetkoste in die vrugtebedryf beslaan, het die vier grootste vrugteprodusente in die Wes-Kaap
in 1988 besluit om hul eie riffelkarton vervaardigingsaanleg, naamlik A P L Cartons te
Worcester op te rig.
Die dryfkrag van die maatskappy is om pakmateriaal insetkoste oor die langtermyn
handhaafbaar te minimiseer. Daarom moes kostedoeltreffendheid en mededingendheid 'n
onderskeidende kenmerk van die maatskappy wees. Die korporatiewe strategie van die
maatskappy is ingestel op versnelde groei by wyse van 'n waarde-strategie wat
waardetoevoegend tot kliente se produkte en produksieprosesse is.
Ondanks 'n goed geformuleerde strategie, word gevind dat sleuteldoelstellings nie teen
verwagte standaarde bereik word nie. Terwyl winsgewendheid, produktiwiteit,
kostedoeltreffendheid en werknemermoraal afneem, styg staantye, kwaliteitsafkeurings en
afval in die aanleg. Die probleemstelling word verder gekompliseer indien in ag geneem word
dat die maatskappy steeds daarin slaag om sy reele groeiprestasie voort te sit. Dit vind egter
plaas ten koste van doelmatigheid in die aanleg.
Daar sal op 'n literatuurstudie staatgemaak word om die algemene oorsake van strategiese
gapings by ondernemings vas te stel. Teen die agtergrond sal die oorsake vir die gaping
tussen die strategiese rigting en maatskappyresultate van A P L Cartons identifiseer word.
'n Verdere literatuurstudie sal onderneem word om vas te stel wat onderskeidelik die
projekbestuursbenadering en strategiese bestuursbenadering tot doelwitbereiking is. Daaruit
sal 'n bestuursmodel vir die oorbrugging van die strategiese gaping by A P L Cartons
ontwikkel word.
'n Ondersoek na projekmislukkings by maatskappye identifiseer twee hoof-oorsake daarvoor,
naamlik dat sulke maatskappye :
a) Nie oor 'n raamwerk vir projekte beskik nie; of
b) Nie oor 'n duidelike strategiese rigting beskik nie.
Daarom moet strategiese en projekbestuurders optree as fasiliteerders wat staatmaak op
delegering en koordinering om die omstandighede te skep vir prestasie pleks van mislukking.
Uit die ondersoek is vasgestel dat die hoof-oorsake vir strategiese gapings by A P L Cartons
die volgende is, naamlik :
a) Alhoewel 'n duidelike strategiese rigting geformuleer is, beskik die maatskappy nie oor 'n
raamweek vir die implementering van strategie, projekte en inisiatiewe nie.
b) Funksionele bestuurders dra nie kruisfunksioneel by tot die opleiding en ontwikkeling van
vaardighede wat in ander departemente ontbreek nie.
c) Funksionele en mededingende strategiee word nie verder as die formulering daarvan
ontwikkel nie. Gevolglik rugsteun dit nie die korporatiewe strategie tot implementering
nie.
d) Senior bestuur is te ingegrawe in operasionele detail, sodat 'n helikoptervisie oor
strategiese rigting en implementering meestal ontbreek.
e) Daar bestaan nie 'n werkswyse vir die identifisering, hantering en bestuur van kritiese
kwessies vir strategie-implementering nie.
Die ondersoek stel twee instrumente wat met mekaar verband hou voor vir die hantering van
kritieke kwessies naamlik 'n kritieke kwessie bestuursvorm en 'n kritieke kwessie register.
Dit vorm 'n bestuursinstrument wat saam met 'n bestuursmodel en -raamwerk, wat vir A P L
Cartons ontwikkel is, gebruik kan word om strategiese doelwitbereiking na te streef. Die
raamwerk is ontwikkel nadat vasgestel is dat strategie en projekte binne dieselfde
verwysingsraamwerk bestuur kan word, omdat beide dieselfde oorsprong en onderbou deel.
Die oorsprong word gevind by korporatiewe doelstellings, terwyl 'n rigtinggewende
waardestelsel die onderbou daarvoor verleen.
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