Strategiese bestuur in die kleinhandeldrankwinkelbedryf met spesifieke verwysing na die Bloemfonteingebied

Abstract

STRATEGIC MANAGEMENT IN THE RETAIL LIQUOR STORE TRADE WITH SPECIAL REFERENCE TO THE BLOEMFONTEIN AREA Liquor stores experience difficulties to stay profitable in a stagnant market. The per capita consumption of spirits and wine has declined and as a result the total market has shrunk. Liquor stores are facing possible deregulation in the market, which will have a negative impact on the entire industry. This study was conducted to ascertain the degree in which formal strategic management is practised in the retail liquor store trade. The causal factors that prompted this study are legislation, inadequate law enforcement of the Liquor Act, increased competition, wholesalers that operate in the retail market, economic pressures that forces people to down-buying and general management that tend to neglect strategic management at a time when it is a prerequisite for economic survival. In chapter three a literature study was conducted. An empirical study was undertaken, and 20 questionnaires representing 62,5% of the liquor stores in the Bloemfontein area, were completed. This percentage was considered sufficient to conduct an authoritative study. The findings of the empirical study are discussed in chapter four. The most important conclusions and recommendations made are discussed in chapter five. From the above study it transpired that liquor store owners and managers have undergone little, or no management training at all. Although 80% of the respondents reported doing formal planning, the distinction between strategic and operational planning is vague.

The issue that will have the most significant impact on liquor stores, is the deregulation of beer, which represents 70,5% of all liquor sales in the Orange Free State. Other important issues are competition from cash and carry wholesalers and inadequate law enforcement of the Liquor Act. The majority of the respondents were small business owners who have access to limited resources to do extended scenario planning, but could benefit by using consultants to assist them. Strategic management can be defined as the planning, implementation, and control of an organisation's resources, directed towards its vision and objectives in terms of its mission. It arises from an understanding of the nature of change and to design a future. A strategic management process for the retail liquor store trade, was developed. The following tasks were identified: Determine the internal and external factors that shape the choice of the organisation strategy. Gather information to do an industry, competitor and customer analysis. Determine driving forces, critical areas where change is needed, the competitive forces that shapes the competition and issues that is likely to have an important impact on the long-term viability of the organisation. Develop a mission statement that will clarify the organisation's shared vision, purpose and values. Select long-term objectives that will fulfil the organisation's mission and can be adapted to changing conditions. Develop strategies with functional plans and budgets. Implementation entails converting the strategic plan into action by structuring the organisation for successful strategy execution, exercising strategic leadership, developing a culture to fit the strategy and installing administrative systems to support the strategy. The first iteration of this ongoing process concludes with the evaluation of performance, reviewing and corrective adjustment. The liquor store owners and management have to manage their businesses strategically to ensure long term profitability and survival.