Category Archives: Business Administration

– What is the cause of poor stock management by big businesses?

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Stock is money. Having large quantities for months of unsold stock on retail shop floors seems unwise. Equally so, having no stock available for days, of known fast moving or highly demanded goods, is unwise. Yet in many South African retail shops, it is unsurprising to find an oversupply or undersupply of goods in stores.

Does it mean retailers are forced to accept whatever the producer wants them to list, or is it the case of management at head office deciding on what the stores must list in spite of demand, or is it a lack of relevant technological solutions to provide intelligence information enabling managers to make informed decisions, or is it the case of poor usage of technology within the organisation? By Nimroth Gwetsa, 31 May 2021. Continue reading →

– Make technology your friend

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In my garage is a classic I bought seventeen years ago. For the past few years, it has been parked and not used regularly, but taken out once or so a week to maintain the health of the battery and other moving parts for lubrication and rust prevention. I know many will criticise the soundness of my financial management in keeping such a vehicle. We possibly have a “drug” of some sorts we obsess about, enabling us to be children again. Mine is the love I have for this modern classic.

To avoid having ownership headaches, I have honoured all its annual service maintenance requirements through the dealership of the original-equipment manufacturer (OEM). The move has thus far increased my confidence to have it as an option for any trip I wish to undertake, whether around the corner or over long distance. That my family shares in my confidence is another matter, suffice it to say when the OEM dealership presents me with a bill, I feel like swearing at people in the building, including the state of our governance in the country.

These people are not playing. They do not hesitate to present you with a bill equivalent to a budget of PPEs for a small village of migrant workers! But that is not the main reason for my telling you this story. By Nimroth Gwetsa, 30 March 2021. Continue reading →

– Longer Support Hours are imperative for Basic Service Provision

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Notwithstanding the digital divide prevalent in our country, for many, voice and data connectivity are necessities of life along water and electricity far more important to some extent than food. I do not know about you, but I know many others like me easily losing appetite even, when having to face power, water and connectivity outages with no access to backup services.

What is more frustrating is having those outages occurring closer to or outside normal office hours, say from four in the afternoon on weekdays or twelve on a Saturday or any other time on Sunday. The frustration is owing to many service providers limiting their (onsite) support to office hours on weekdays mainly.

If ever you did not know you had comorbidities, wait until you have deadlines to meet and these outages occur outside those “normal” office hours, then assess your health afterwards. Living in South Africa means investing, not only in these primary services, but having backups too for all your needs to avoid having burst arteries. With these “basic” services already so expensive for many, who would have sufficient resources to invest even in backup solutions? By Nimroth Gwetsa, 31 January 2021. Continue reading →

– #Digitise

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On 26 November 2020, several media houses published a story of Asset Forfeiture Unit (AFU) having frozen R111m from the bank account of one Thabo Simbini, a businessman from Hammanskraal, for his alleged fraudulent claims from the scheme designed to provide financial relief to employers and employees adversely impacted by covid-19.

Simbini is alleged to have claimed for more than six thousand employees from the Temporary Employer/ Employee Relief Scheme (TERS) when he was the only employee in his business, Impossible Services (Pty) Ltd. We take comfort in the knowledge that AFU’s action shows Simbini will be held accountable for his deeds, but such fraudulent submissions should not have initially succeeded.

We know government is inefficient, but basic reference checks could have flagged the claim as fraudulent even when using antiquated technological solutions. Lesson for us all, even small businesses, is to never relent in keeping records even if on a simple spreadsheet. Of all man-made innovations, spreadsheets should count among the best things since sliced bread. By Nimroth Gwetsa, 30 November 2020. Continue reading →

– Keep It Simple

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If you want to be dependable, effective and build long lasting profitable relationships, learn to keep “it simple”. Many technocrats make the mistake of trying to prove their sophistication by complicating simple matters. Perhaps they are not doing this to impress. Maybe they want to win by instilling fear and silencing opposition and those proud enough to ask for explanation of jargon used.

Business problem solvers must do their best to keep it simple, for having it any other way will result in strained relationships. By Nimroth Gwetsa, 30 July 2020. Continue reading →

– Know the implications of your role

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Not a day goes by without a user of a social network platform focusing on professional networking and career development posting or forwarding an article or two about what the difference between a leader and manager is, what modern progressive employers should do for their employees. All these are important, and wise and good employers would heed the message.

Taking personal responsibility and not deflecting the problem or issues elsewhere is the foundation of building success. That’s why employees too, should deeply reflect on their role in enabling the employer achieve goals and success. Many employees seem to think their employers are there to just give them “things” without them equally giving “something” back to the employer. An “Us” and “Them” tension will not create a conducive environment for excellence. It’s time for employers and employees to understand and deeply reflect on their roles. By Nimroth Gwetsa, 31 May 2020. Continue reading →

Giving ICT SMMEs a Chance #PostCovid_19Lockdown

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No doubt, our challenges are many and mounting as we speak. Indications from different perspectives and sectors show we have grave problems and are heading for even the worst of times. Government and big business alone do not have sufficient resources, capacity and even credit rating to resolve many of these challenges facing society. But these important role players can enable extensive socioeconomic development to occur rapidly, thereby reverse our current malaise sooner. Such progress is achievable if attitudes and behaviour are changed. By Nimroth Gwetsa, 30 April 2020. Continue reading →

– #COVID-19 #Lockdown – Don’t lower your guard

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With our country experiencing recession and having recently had a sovereign credit rating downgrade to subinvestment (junk) grade, the covid-19 induced lockdown will mean more economic woes for many SMMEs and ordinary people alike. Many already struggle to adjust to a new routine of staying put with limited contact with the outside world, and some are facing job-losses after the lockdown. And with our public-health facilities already taking strain, depression will be on the rise. It’s normal for many to feel helpless, demotivated and discouraged, while some, in the same vein, resorting to pursuing quick “feel-good” solutions that may be ruinous in the long run if not carefully managed. We need to be alert and watchful against becoming sidetracked and ignoring the importance of using this lockdown period to face and tackle our challenges head on so we can emerge stronger afterwards. By Nimroth Gwetsa, 30 March 2020. Continue reading →

– Get to #KnowYourCustomer

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For a long time, I had been a proponent of textbook styled strategies, methodologies and principles on business administration and leadership. In big corporations, no initiative would be approved or considered unless it has supporting business case and matrices to prove the viability of the opportunity. Quite often, inordinate time passes before the opportunity could finally and favourably be considered. Many a small business entrepreneur may be unable to spare such investment in time.

Having little time to spare doesn’t mean SMME entrepreneurs choose to be flippant about conforming to business administration “basics” and ascertaining viability of prospects. Many entrepreneurs are not always driven by accounting and economic matrices alone in their decision making, but other considerations too such as having and relying on a hunch and a little faith among others. SMME entrepreneurs are more agile than their corporate counterparts owing to their low overheads, fewer “touch-points” and division of work.

Though many SMME entrepreneurs may find it onerous and eventually stop compiling important matrices, they should at least do some informed study on their customers to improve their understanding and offerings accordingly. Every product design embodies inherent assumptions after all, whether deliberate or implied, about the target market. Such assumptions have a direct and significant bearing on the uptake of the product. By Nimroth Gwetsa, 29 February 2020. Continue reading →

– The immeasurable economy of humility, generosity and kindness

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Ultimately, what matters to any business is the ability to generate revenue. The more diverse the sources of revenue, the better the prospects for the business. Likewise, the fewer and narrower the sources, the higher the risks to the business.

Sometimes business earns income because it has superior offerings, capabilities and the brand, among others. Sometimes, earnings are from customer patriotism and sentimentality (loyalty, familiarity, proximity, tradition etc). Other times, out of the generosity and general good behaviour of employees.

One thing is clear, unless your business is a monopoly, arrogance, self-centeredness and unpleasantness towards customers will not bring them through the doors of your business. By Nimroth Gwetsa, 30 November 2019. Continue reading →