South Africa

Shelby Bates Sarah HartAnnalisa Day Tye JonesChelsi Delgado Travis MarlarJessica Denis Zach Williams

BackgroundLocation

50 million

GDP 363.9 billion

CurrencyRand

Exchange rate◦1 US Dollar = 7.88 Rand

Financial System◦South African Reserve Bank

IndustriesNatural Resources

◦Minerals: platinum, coal, diamonds◦Timber: to build mines ◦Agriculture: sugar, grapes, citrus, wine,

meat, wool, cotton, tobacco, maize

Motor vehicles/vehicle parts

Tourism

Infrastructure

Business AppealEstablished legal system

Strives for 6% economic growth

Incentive grants◦Electricity allowances, low interest

rates, support programs

Business in South AfricaBusiness language

Communication◦Acceptable/unacceptable

Conflict style

Negotiation style

Business Background In South AfricaDiverse Business Mixture

◦First world economic infrastructure◦Third world poverty

Wealthiest country in Africa

Major Political Changes◦Post-Apartheid◦Abolishing racial segregation◦“Rainbow Nation”

Business Structures

50% of South Africa’s fixed assets are controlled by the government◦ Centralized Power◦ Hierarchical & Bureaucratic Organizations

Business environment changes daily

Recent government and political changes have transformed the business structure of many South African companies

New Companies Act (2011) – Similar to U.S. business structures ◦ Sole Proprietor ◦ Close Corporation◦ Private & Public Company◦ Partnerships◦ Non-Profit Organizations

Management Style

Power accumulated style

Decisions are often made at the top by a few senior managers (usually white)

Post-Apartheid◦ Hierarchies starting to break down◦ Younger middle-managers more proactive and

involved in decision making

Evolving Middle Management◦ Black Professionalism ◦ “Affirmative Action” Programs

Business Communication Styles

English is the common business language

Different English language usages◦ Plain Speaking VS Diplomatic Approach◦ Plain Speaking: mainly spoken by Anglo/white

South Africans◦ Diplomatic Approach: mainly spoken by native

black cultures

Humor is often used while communicating in the business environment

Formal titles rarely used

Typical Business Environment

Women in Business◦ Traditionally women have played a very minimal

role◦ Female participation at the senior management

level is rare◦ Progress towards gender equality has progressed

slowly

Business Attire◦ Similar to the United States (conservative)◦ Men-collar and tie, jacket is not preferred by South

African’s◦ Women-conservative dresses or suit

Human ResourcesAffirmative action

Minimum wage◦R1100/month ($140)

Promotion

Key employment laws◦17 weeks maternity leave◦15 years of age

Common Business Practices45 hour work week (10 hours

overtime)Meetings

◦Establish rapport◦Not common to use agendas

Decision making based on facts, not intuition

Gift-giving is not commonDon’t interrupt

ConclusionLegal support

Strong natural resource industries

Strongest economy in Africa