MBA

Environment
of Business
Session 2
7 November 2023
Dr Michele Ruiters

Adapted from Prof. Nick Binnedell’s slides

© 2021 Gordon Institute of Business Science

© 2021 Gordon Institute of Business Science
There, but for the grace of God, go I
- A recognition that others' misfortune
could be one's own, if it weren't for the
blessing of the Divine, or for fortune or
fate.

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We live in an era of large scale and rapid change,
increasing technical and social complexity and
significantly more competition.

VUCA world and BANI world

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World map – Hammer projection

https://en.wikipedia.org/wiki/Hammer_projection#/media/File:Hammer_projection_SW.jpg
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Peters Map Projection

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© 2021 Gordon Institute of Business Science
History – is it truth?

‘Past is always interpreted, contextualised and adapted by the bias

and political viewpoint of the historian’

‘his story’ not ‘her story’

(Rosenberg, 2017, p46)

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Strategic analysis levels

• Big picture • Grand strategy (state)

• Industry • Strategy
• Market • Operations
Geostrategic discourse (Rosenberg, 2017)
• Failed/fragile states
• Third world/First world
• Emerging/developed markets
• EMEA/Europe/Americas, etc.
• BRICS/NATO/MENA/AMEA/MINTs/PIGS
• OPEC - oil producing countries
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Levels of analysis

Surface level

Structures

Systems (deep)

Schein’s organisational culture

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Forces at work

• Indirect • Direct

• Positive • Negative

• Quick • Slow

• Event • Trend

• Financial • Non-financial

Stock flow

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Domains of contention

• Cyber

• Space • Culture
• Intellectual property
• Ideology
• Air • Social media

• Sea

• Land

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Geopolitical framework – Rosenberg (2017)

Mike Rosenberg. (2017). Strategy and Geopolitics : Understanding Global Complexity in a Turbulent World. Emerald Publishing Limited.

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The big picture

Fate

Choice Luck

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Fate/Luck/Choice?

https://www.reddit.com/r/dataisbeautiful/comments/fg1kb6/oc_life_expectancy_vs_gdp_per_capita_of_countries/
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Average income vs Child mortality rate

Fate/luck/choice?

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 Fate/
Luck/
Choice?

https://www.visualcapitalist.com/cp/healthcare-spending-versus-life-expectancy-by-country/ © 2021 Gordon Institute of Business Science

Hofstede – comparative cultural dimensions

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Factors relative to geography

https://www.theguardian.com/news/datablog/interactive/2012/mar/29/carbon-map-infographic-world
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Multidimensional poverty 2019

https://worldmapper.org/maps/grid-poverty-mpi-population-2019/?sf_action=get_data&sf_data=results&_sft_product_cat=poverty
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Poverty in standard of living, 2019

https://worldmapper.org/maps/grid-poverty-mpi-livingstandard-2019/?sf_action=get_data&sf_data=results&_sft_product_cat=poverty © 2021 Gordon Institute of Business Science

 Ecological footprint per capita 2019

https://worldmapper.org/maps/grid-ecologicalfootprint-2019-population/?sf_action=get_data&sf_data=results&_sft_product_cat=sustainability© 2021 Gordon Institute of Business Science

Absolute poverty

https://worldmapper.org/maps/absolute-poverty-2016/?sf_action=get_data&sf_data=results&_sft_product_cat=income,poverty
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Youth unemployment 2015

https://worldmapper.org/maps/youth-unemployment-2015/?sf_action=get_data&sf_data=results&_sft_product_cat=work
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South African business DNA

Culture

Demography
Political Economic
economy competitiveness

History

Geography © 2021 Gordon Institute of Business Science

South Africa big picture

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Factors related to national challenges
1. Consensus that there is a crisis
2. Make a significant move to action, not intention
3. Clarity on the core issues
4. Generating resources to initiate change
5. Studying useful comparisons
6. Building national consensus
7. Honest self-appraisal
8. Reflection on past difficulties
9. Understanding the consequences of failure
10. Options and agility
11. Creating political economic and social room to move

Adapted from Upheaval (2019), Jared Diamond

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Strategic alignment for value creation

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Porter’s 5 forces in South Africa
Macro environment
Global
Technological
Potential
entrants

Industry
competitors
Sellers (Rivalry among Buyers
existing firms)

Economic
Substitutes

Industry environment
Social Political Legislative
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Strategic leadership

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How do we understand the world?

The problem is that “life can only be understood

backwards; but we live it forwards”
Soren Kierkegaard

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Four frames for strategy

Purpose

Innovation excellence

Rivalry
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Past, present, future frames

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No secondary education

https://worldmapper.org/maps/education-nosecondary-2015/?sf_action=get_data&sf_data=results&_sft_product_cat=work,school
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Tertiary education

https://worldmapper.org/maps/education-tertiary-2015/?sf_action=get_data&sf_data=results&_sft_product_cat=work,school

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Population increase 2015-2050

https://worldmapper.org/maps/population-increase-2015-2050/?sf_action=get_data&sf_data=results&_sft_product_cat=work,population,population-atlas&sf_paged=2
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Science papers published 2016

https://worldmapper.org/maps/science-paperspublished-2016/
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Out of 100 people…

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 BCG – global manufacturing competitiveness
Forces that are redrawing the map:
1. Wages
2. Exchange rates
3. Labour productivity
4. Energy costs

https://www.bcg.com/publications/2014/lean-manufacturing-globalization-shifting-economics-global-manufacturing
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War in 2021

https://www.visualcapitalist.com/mapped-where-are-the-worlds-ongoing-conflicts-today/

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© 2021 Gordon Institute of Business Science
4 areas to watch - Estimated developing country
vulnerabilities and financing needs for 2023

https://www.brookings.edu/blog/future-development/2023/01/10/30-developing-countries-to-watch-in-
2023/?utm_campaign=Brookings%20Brief&utm_medium=email&utm_content=241634539&utm_source=hs_email

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Singapore case

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Map of Singapore

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Singapore

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Singapore discussion

• Study the case (and online sources) and identify key strategic
choices Singapore made. Why were these choices made, what
were the implications for country, government and people?

• Using Rosenberg’s (2017) framework, map out Singapore’s fixed,

semi-fixed and current assets.

• What is your view of Singapore as a political economy?

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