MAC4863
Assignment 3
2024
(504821) -
DUE 20 May
2024
QUESTIONS WITH WELL OUTLINED ANSWERS
, MAC4863 Assignment 3 2024 (504821) - DUE 20 May 2024
Question 1 (25 marks)
(This question comes from the Jan/Feb 2024 supplementary exam) Eagle
Logistics (EL) was started many years ago when its founder Amir Singh,
invested his retrenchment package into establishing the business. Amir has
retired and handed over the business to his two sons, Hassan and Rohan. EL
is a specialist in international logistics solutions with its head office in South
Africa with international branches in Mauritius, Australia, Germany,
Netherlands, UK, Hong Kong, and China. EL owns no physical assets. Over
80% of their earnings come from outside of South Africa and across multiple
major trade routes. As the company gets larger its ability to aggregate client
volumes and logistics needs increases, allowing them to leverage their network
for cost-effective solutions compared to asset-heavy competitors. EL has
achieved success by providing a very differentiated service to its customers.
EL’s strategic objective has been to exploit market opportunities to achieve a
high level of return on investment. Father and Sons have been very involved
in the business where they carried out all the strategic planning and
operational management activities. One could call their approach to strategic
planning as Freewheeling opportunism. Now that their Father has retired,
Hassen and Rohan know that to continue to grow the business they will need
to raise more capital, and they will have to appoint other senior managers to
maintain the operational side of the business. This will free up the brothers to
focus more on the strategic development of EL. The brothers are considering
raising new capital through listing on the Johannesburg Stock Exchange
(JSE) REQUIRED:
a) Explain how the strategic planning of EL might alter if the organisation
raises additional funds by listing on the JSE. (Do not provide a theory dump
on the strategic process, no marks will be awarded). (13 marks)
b) Discuss the most appropriate strategic planning process that EL should
adopt in order to satisfy its organisational objectives following the public issue
of shares on the JSE (12 marks) [25 marks] MAC4863/A02 5
Eagle Logistics' Strategic Planning After JSE Listing
a) How Strategic Planning Might Change:
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