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Investment & Financial EnvironmentThe economic environment in Zimbabwe’s foodmanufacturing sector is not conducive for f...
11/08/2022

Investment & Financial Environment
The economic environment in Zimbabwe’s food
manufacturing sector is not conducive for foreign direct
investment as shown by the bar chart below. Only 0.8% of
the respondents indicated that the environment is conducive
for FDI whilst half of the respondents indicated that the
environment is largely deterrent.

f) Business Level Innovation and Technology- Views onthe Tertiary Education SystemCollaboration with tertiary institutio...
10/08/2022

f) Business Level Innovation and Technology- Views on
the Tertiary Education System
Collaboration with tertiary institutions ensures that tertiary
institutions produce the right products (human capital) for
the market. The use of Virtual Social Networks in marketing
is also limited in Zimbawe’s food manufacturing industry. In
this environment where globally people are advocating for
online buying and selling there is need for companies to
embrace technology and increase the usage of internet as a
marketing gimmick. Only 10% use internet in marketing
significantly whilst 5% use virtual social networks
significantly e.g. Facebook, twitter. The results are provided
in figure 4 below.

Companies in the food manufacturingindustries in Zimbabawe carried out new capital investmentincreased by 11% in 2011. O...
10/08/2022

Companies in the food manufacturing
industries in Zimbabawe carried out new capital investment
increased by 11% in 2011. Of these, 93% invested in
machinery and equipment whilst 7% invested in land and
buildings. The major reason for investment was to replace
worn out machinery and equipment (46%) whilst 44%
indicated that they wanted to expand their operations.

Major Capacity ConstraintsThe factors affecting the food manufacturing sector inZimbabwe remain largely that of working ...
09/08/2022

Major Capacity Constraints
The factors affecting the food manufacturing sector in
Zimbabwe remain largely that of working capital
constraints. The issue of working capacity constraints was
further compounded by tight liquidity conditions and nonperformance of creditors which was greatly affecting
business level cash flows. Working capital constraints
40.2%, low local demand 17.6%, competition from imports
12.5%, antiquated machinery and machinery breakdown
9.8%, power and water shortage 8.8%, shortage of raw
materials 5.9%, and high cost of doing business 5.2%.
Business level funding was mainly profit plough back at
54%,

09/08/2022

Adapting the organization: Managing change brought about
by BPR activities is the final effort towards a successful
project. Providing updated documentation, organizational
structures, governance models as well as updated charts of
authority and responsibility leave little room for confusion
and allow a smooth transition into the new way of work.

e) Capacity UtilisationCapacity utilisation is the percentage of the firm’s totalpossible production capacity that is ac...
09/08/2022

e) Capacity Utilisation
Capacity utilisation is the percentage of the firm’s total
possible production capacity that is actually being used.
Thus, it refers to the relationship between actual output that
'is' actually produced with the installed equipment, and the
potential output which 'could' be produced with it, if
capacity was fully used. The global capacity utilization for
the manufacturing sector for 2013 is 39.6%. From the
respondents only 35.7% recorded capacity utilisations of
above 50%, with only two firms recording a capacity of
100%. The average capacity utilisation of 39.6% would
imply a decline of 5.3 percentage points from last year’s
average of 44.9%.

Foreign Trade, Investment and FinancialEnvironmentExport MarketsThe survey results show that there was no significant ch...
09/08/2022

Foreign Trade, Investment and Financial
Environment
Export Markets
The survey results show that there was no significant change
in terms of export destinations and the respective market
shares, with the exception of South Africa. Over the years
South Africa had continued to lose market share of
Zimbabwean exports, but this year market share has
increased from 12% in 2012 to 18% in 2013. The table
below shows the various export destinations and their
respective market share.

08/08/2022

Robustness is another dynamic capability through which firms are able to deal with
environmental change. A robust business model is one that is “not threatened by shifting
contingencies” (Zajac et al., 2000: 434). This may be due to the possession of “resources
that offset external pressures for change”, something also argued by Selznick (1957), or
“its local environment may shelter it from larger changes in its industry” (Zajac et al.,
2000: 434). Similar arguments are presented by Hofer and Schendel (1978: 144) who
suggest that exceptional resources can “parry the threats that [a firm] faces in its external
environment” and thus mitigate its need for strategic adaptation to achieve external fit (cf.
Zajac et al., 2000). Such a business model is an intrinsically stable whole, the external fit
of which is insensitive to external changes, and is thus resistant to external perturbations,
fluctuations, and noise without a qualitative structural change (Jen, 2003). Therefore, while
a flexible business model maintains external fit by adjusting in response to environmental
uncertainty and heterogeneity, a robust business model maintains external fit through the
ability to buffer environmental uncertainty and heterogeneity.

08/08/2022

Because external fit is only a snapshot and uncertainty and heterogeneity within the
BoP business environment are substantial, it is important to explore the mechanisms that
capture the ability to maintain external fit over time as the external environment changes.
We distinguish between two such dynamic mechanisms or capabilities through which
firms can preserve external fit under changing environmental conditions: flexibility and
robustness (cf. Zajac, Kraatz, Bresser, 2000).

Meeting the challenge of this situation requires creativity and imagination. To this end,firms increasingly recognize th...
08/08/2022

Meeting the challenge of this situation requires creativity and imagination. To this end,
firms increasingly recognize that “listening to the voices of the poor and disenfranchised
can be a source of creativity and innovation” (Hart & Milstein, 2003: 63). Through such
creative processes, firms engage in innovation and develop new capabilities that lower
risks (Hart & Milstein, 2003), generate a source of differentiation (WBCSD, 1997),
improve managerial practices, speed up regulatory approvals, enhance employee morale,
and on the bottom line contribute to a firm’s competitiveness (Porter & Van der Linde,
1995; Russo & Fouts, 1997; Sharma & Vredenburg, 1998).

One would therefore expect the BoP to choose value propositions with a morepositive environmental performance over those...
08/08/2022

One would therefore expect the BoP to choose value propositions with a more
positive environmental performance over those with a negative environmental impact.
However, those living in poverty may often harm the environment, as they may be driven
to inflict damage in order to ensure a minimum income (Roper Organization, 1990; World
Resources Institute et al., 2005). They might not be in a position to take care of their
natural surroundings if doing so would harm their livelihood, even if it would ultimately be
in their best interests to do so. As it would have been for the island nation of Nauru, which
depleted its natural resources through extensive phosphate mining, thus denying their
people a source of food in exchange for short-term transient income (Gowdy & McDaniel,
1999). Hammond et al. (2007) therefore speak of subsistence as a “poverty trap”. Hence,
care for the environment may form a brake on economic development at the BoP, yet it is
also valued by various nonshareowner constituencies and a necessity at the macro-level.

Most businesses don't need to register with the federal government to become a legal entity, other than simply filing to...
02/08/2022

Most businesses don't need to register with the federal government to become a legal entity, other than simply filing to get a federal tax ID. Small businesses sometimes register with the federal government for trademark protection or tax exempt status.

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