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BUSI 604 Global Business Cultural Analysis South
Africa
International Business (Liberty University)
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Global Business Cultural Analysis (South
Africa) Student
Dr. Saunders
BUSI 604
October 17, 2018
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Abstract
The study attempted to investigate the Global Cultural Business Analysis in South Africa. The
study focused on explaining the historical growth of South African Economy and Business
especially those factors that have directly impacted on the growth of South Africa business since
the colonial period. Major factors were studied in this paper, their individual relationship with
each other in contributing to growth, all other internal factors such as the natural and human
resources shall be analyzed and compared to other developed countries such as the United States
of America. Diversities in growth and development between those two countries were used in
making some economic decisions such as how investment can be made to uplift South Africa
Business cultural growth. To accomplish the major objective of this study some hypothesis was
set. And the result obtained from there research was compared with the hypothesis set. And
according to the comparison the result and conclusion were made. And thus, the result obtained
from the research was not according to the hypothesis set and this paper describes the different
reasons not satisfying the hypothesis.
Keywords: South Africa, ethics, religion, manners, customs
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List of Table
1. Major elements and dimension in culture
2. Integration of Economic Elements by Locals
3. Comparison of South Africa Business with the United States economy
4. Implications of United States businesses wishing to Conduct Business in South Africa.
Abbreviations
FDI foreign direct investment
GBCA global culture business analysis
MSN Microsoft network
BBC British Broadcasting Corporation
Global Business Cultural Analysis
The global business cultural analysis is one of the major areas which have really taken
time and a lot of resources in carrying out a deep study on it. Many famous World economists
have spent a lot of their time in carrying out Global business cultural analysis in South Africa.
There are major reasons why a lot of interest was placed in African Country and specifically
South Africa (Dawkins& Ngunjiri,2008). The economic and business development in South
Africa dates back in three major phases namely during the pre-colonial period, the colonial
period and post-colonial period. In addition, it is the only Country in the entire African which
was colonized for a long period of time with the colonists departing the country in the late early
1990s. This means that the colonists took their time in facilitating economic growth and
development in South Africa compared to other African countries (House, et.al, 2004). Major
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developments and investments were therefore made setting South Africa’s economy
and Business culture in another level with high global economic influence.
Major economic factors that have played a major part in setting the phase and rhythm of
South Africa’s business culture includes the following (Abor & Quartey, 2010):
✓High levels of natural resource riches boasting the major source of Gold in entire Africa.
✓Diverse in socioeconomic cultures due to different ethnic groups such as the
Afrikaans and Boers giving it different dimensions in economic developments.
✓Long political stability period due to colonists’ presence within the country providing
peace for investment and establishment of strong economic foundations.
✓The geographical location which enables South Africa to be independent in
conducting international business without fear from any form of sanctions. In addition,
its location has facilitated the development of a strong tourism industry in Africa.
✓Established international airlines which have great depth boosted economic growth.
The above-mentioned factors have played a major role in establishing South Africa as
one of the strongest economic power not only in Africa but in the whole World (Olawale &
Garwe, 2010). These developments in South Africa have made many Economists have a
comparison between South Africa and the United States in the World’s economic growth.
Global Business cultural analysis, therefore, focused on carrying a study and analysis to
determine how South African economy and its business culture have direct influence in the
regional economic development (Africa) and the in the whole World (Ferraro, & Briody, 2013).
Objective and Limitation of the study
Objectives
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The study was carried out to fulfill and address some gaps in the economic world. Major
objectives of this study were:
•Establishing the main factors leading to South Africa economic growth.
•Establishing the economic effects of a long colonialist period in South Africa.
•Investigating the cultural and economic behavior of the people of South Africa
which have facilitated in Economic growth and rise in economic power by South
Africa.
•Establishing gaps in the economic growth in South Africa which have dragged back
the economic growth and coming up with the best possible solutions to address them
increasing economic efficiency and prosperity.
•Comparing economic development between South Africa and the United States and
addressing what needs to be done for the two countries to be on the same economic
investment line.
Limitation of the Study
•Limited resources for facilitating the study as it required and involved a lot of traveling
to gain information from different stakeholders within and outside South Africa.
•Limited information due to loss of some economic backup.
•Geographical challenges and weather conditions had a lot of health impact
interfering with the efficiency of the study in the data collection stage.
•Information privacy by some institutions and individuals in the World economic
recording departments making it hard to get facts about business culture in South
Africa.
•Failure in data collection instruments which sometimes interfered and cost the
efficiency and quality of data collected.
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•Language Barrier was a major limitation as some people could not use
international language in giving information.
•Limited time making it hard to carry in-depth data collection and analysis.
Hypothesis set to achieve the objective
One of the objectives of the study was to establish the main factors leading to economic
growth in South Africa. It is hypothesized that there could be different factors that have
contributed to economic growth in South Africa being classified as major and main factors with
a direct influence on global business culture in South Africa. This study had a major motive to
make it clear to the reader of this work.
The next objective of the study was to investigate how the presence of colonists for a
long period of time had economic and business effects to the country. From the external world,
there was a perspective that colonists had mixed impacts to the economic growth of South
Africa. In this study, it was hypothesized classifying effects of colonists in two major categories
in relation to the economic growth of South Effects. Economic developments were therefore
analyzed to come up with the end on whether the long presence of colonists had negative or
positive impacts on the growth of economy and business in South Africa.
The next objective of the study was to investigate the economic culture of South Africa
and how socioeconomic behavior has contributed to economic growth of South Africa and
making it have high economic influence in the World economic rankings. It hypothesized that
many people in South Africa have economic development mentality. This study focused on
establishing the percentage of the population in South Africa who are business and economic-
focused to drive economic developments within the country. The major focus was on
strategies
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the government has taken in pushing for economic prosperity in South Africa. Investigations on
economic relationships between different sectors were also considered in establishing such
facts.
The next major objective of the study was to establish economic gaps existing within
the economic system of South Africa. It was hypothesized that despite the economic prosperity
and rise, there were still major factors (gaps) dragging the economy back. The study was
focused on addressing these issues since they form the main factors in the global business
cultural analysis.
The global business cultural analysis involved carrying out research on different
economic aspects and factors that are directly related to the subject of study. GBCA, therefore,
was structured in different sections to enable and make it easy to carry out research in depth and
in details. The business cultural analysis, therefore, involved factors aspects drawn from different
socioeconomic areas as well as political fields which directly plays a major role in the economic
development of South Africa (Noe, et.al, 2006). The structure of GBCA, therefore, takes the
following steps.
Elements and dimension of culture the
region Communication
One of the most powerful economic elements in South Africa is communication. It
refers to the exchange and flow of information from one point to another. South Africa is one of
the most developed countries in terms of the communication network (Waverman, et.al,
2005).A communication network in South Africa is characterized by the presence of strong
internal and external communication channels such as independent radio and televisions
networks, the presence of satellite base which enables the country in collecting information
globally, strongest mobile networks ownerships in Africa, well-developed road system
networks as well as airlines networks. Communication plays the biggest part in facilitating
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business growth in any country.
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This is because it enables the flow of information from point to another, enables the economic
acquisition of information used for making economic decisions to propel economic prosperity.
Communication drives business activities directly as some economic activities are purely based
on the communication line.
There are major economic activities in South Africa which have prospered because of a
strong communication network (Ongori & Migiro, 2010). Some of these economic activities
include international airlines such as 3 SA and 4 MANGO which are based in South Africa and
controlled by strong lines. This has led to the development of strong air transport which have
highly facilitated economic and business prosperity giving South Africa upper hand compared to
other Africa countries. In addition, other international communications firms such as the BBC
and MSN in addition to international sports channels such as super sport and sky sports are all
based in South Africa due to the strong communication network. They have enabled South
Africa to economically grow since many firms would like to use communication networks in
marketing and advertising their goods. The government is, therefore, earning a lot of income
from the communication element of the economy giving South Africa more economic
momentum to advance to achieve higher economic prosperity. Communication, therefore, forms
the backbone of all other economic elements in South Africa since it drives all of them. The
research, therefore, confirmed that South Africa boasts one of the strongest communication
networks not only in Africa but also in the whole economic World.
Religion
GBCA mainly focus on analyzing the economic prosperity, efficiency and global
influence of that country due to some factors that are observed to be directly influencing its
economic growth and prosperity. In South Africa, one of the major economic driving forces is
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religion. It traces back to a pre-colonial period when people in South Africa were governed by
traditional African norms and culture. These norms and culture governed people on what to do
and what not to do for them to achieve developmental prosperity. When colonists and
missionaries arrived in South Africa they found well established African religion. They installed
their western religion to the people with the goal of making knowledge more on what is right or
wrong. Religion was strongly established and installed in the lives of people. In addition, there
developed different religions in South Africa such as Christianity, Islam, and Hinduism.
Religion has played a big role in the economic prosperity of South Africa in the sense
that people through religions are told on human virtues that they need to have to promote unity,
peace, love, and strength which are key pillars in business and prosperity (Barro & McCleary,
2003). When a country is united by religion perspective, it tends to move in the same direction in
all aspects since most of the decisions are made from holy book earning a lot of respect to all
stakeholders being involved in making such economic decision. Religion has been used in
preaching peace in South Africa enabling each person to take the other as his or her brother thus
making it easy to fight against some inhuman practices such as political instability which really
interferes with economic prosperity and development of any country. Research has shown that
creating a good relationship with God from the religion believes brings success. Religion in
South Africa has helped in the fight against economic poor practices such corruption which has
really affected the economic development of many countries (Nwabuzor, 2005). In addition, the
government operations and decisions making are all religious based therefore eliminating any
doubt the citizens might have with the government since there is a lot of transparency and
accountability from all the government agencies. Religion therefore as a major economic
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element has facilitated economic growth in South Africa through the creation of three pillars of
peace, love, and unity and the motto “UNITY IS STRENGTH”.
Ethics
Ethics refers to the moral principles that govern individual behavior or conduct in all
activities. Ethics have the biggest portion to play as global business culture designing. This is
because the economic prosperity of any country is determined by individual decision in his or
her activities towards economic development (Rossouw, 2005). This means that ethics don’t
require anyone to be near you or to supervise you, but you are internally controlled by some
principles guiding you on what you should be doing at that time. Ethics, therefore. enables the
government to fully reduce some costs such as supervision cost since everyone controls himself.
South Africa is one of the countries ranked to have the high level of ethics due to the strong
religion installed by the missionaries.
Ethics is a major economic element in South Africa as it facilitates economic efficiency
by reducing operational costs and enabling the government to use those funds in return to invest
and push forward for economic growth. It enables the nurturing of precious human virtues such
as integrity, honest, responsible, transparency and accountability. These virtues help in resource
management making everyone to fight against any action which may bring down economic
development plans (Rossouw, et.al, 2002). South Africa is one of the countries who has
successfully fought out corruption as it is practiced due to lack of morals within the country
systems. High moral values have created a lot of interest from external world with many
investors willing to invest their resources in South Africa since they are sure that nothing bad
will happen with their investments since everyone is controlled by moral ethics. Ethics,
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therefore, makes South Africa international spot for investments hence facilitating its economic
growth and prosperity.
Values and Attitude
Economic development and prosperity are direct. Values refer to the net worth a country
possess. This may be characterized for example by the natural resources that the country
possesses. Attitude refers to the internal force that drives people to react either positively or
negatively towards some matters. These are two major values that have really played a big part in
determining the economic position of South Africa (Ferraro & Briody, 2013). The developmental
history of South Africa exposes them to these two features and testing their response on different
situations they have been exposed to. During the three different periods the country has been
exposed to, values and attitude played a key part in making the people to realize themselves and
what they wanted.
Values stood in the sense that people of South Africa new exactly the values their country
held in the economic world. It gave them an opportunity to interact with the world market and to
establish economic links with more developed countries such as the United States. The country
reached in natural resources and African culture which has boosted economic development
significantly. Altitude stretches back during the colonial period when South Africa as any other
country was under colonial stewardship. It was clearly noted that the people of South Africa were
reluctant to fight and expel the Colonialists since they were developing the country. They never
developed negative altitude even though some of their resources were being taken away by their
colonial masters. It is from that attitude that enabled the foreign government to have a lot of
influence in the economic development of South Africa compared to other African countries
(Feinstein, 2005).
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The foreign government, as a result, build and turned South Africa economy to be like
their respective country where they had come from. This developments since then have kept
South Africa at the high economic position since many systems were built to keep economic
growth moving forward. This is witnessed by the physical infrastructural developments such as
business complex and extensive road systems to facilitate trade within the country as well as
prosperous international airports for connecting South Africa with other international countries.
In addition, strong tourism and mining systems were developed. However, as the foreigners
developed most of the economic systems in South Africa, the citizens were also helping them
since they knew all that was being built one day will be theirs. Research shows that people of
South Africa are economically most working people as this attitude was installed in them by
their colonial masters.
Manners
This refers to the in which things are done. It may be viewed as how people of South
Africa have been conducting their economic activities during and even after the colonial period.
It is one of the major elements which has played a big part in the economic prosperity of South
Africa. The fact that colonial masters stayed for long in South Africa means that they educated
and enriched people with economic knowledge on how things are done (Nel, 2001). South
Africa adopted their colonial masters’ economic sustenance technics which has enabled them to
surge forward and maintain the economic lead for long without falling. It keeps them in
economic performance standard, therefore, making them compete successfully with World
economic superpowers such as China and the United States.
Reaction to economic unfavorable situations has played a key part in economic
sustenance enabling South Africa to successfully handle economic situations such as inflation.
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Customs
These are the authorities within a country for collecting tariffs and helping in controlling
the flow of goods within and outside the country (McCarthy, 2003). The fact that South Africa
is very reaching in natural resources a good custom was needed to be put in place to oversee and
control movements and flow of goods within the country or as goods get into the country. These
customs were very important as they help in ensuring that there is payment of tax to the
government which was invested back for economic growth. Customs was also used in ensuring
such precious resources are not taken away by anybody without pay. These customs have played
such as the significant role of ensuring there are maximum possible returns from their resources
(Fine, 2018). Customs have enabled South Africa to develop a business culture which needs
everyone take care of future developments by ensuring she pays back for the Country’s
resources. In addition, these customs are religion referenced enabling each person to feel
responsible for the development of the country.
Social Structures and organizations
South Africa is one of the countries dominated by social structures and organizations
which have direct impacts on the economic growth of the country (Granovetter, 2005). Social
structures exist in South Africa depending on what they control. There are mainly two
categories of social structures in South Africa. One group controls politics and the other controls
the major economic backbone of South Africa. However, both have some effects on economic
growth in a way. The political organizations help in resource distribution (The political
economy of South Africa) as well as ensuring there are peace and other security issues that
impact economic progress in any way. The economic group controls the mineral-energy
complex, which is the economic backbone of South Africa.
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There is an existence of social structures in South Africa based on races and skin color.
However, they are governed by the same economic development motives. These social classes
were integrated after the historical Apartheid putting all the people in the same economic
direction. They have therefore formed a strong economic base for future prosperity.
Organizations have enabled the country to stand together for the common goal of
future prosperity.
Education
One of the major developmental tools for economic prosperity is education. It involves
installing knowledge and skills to people to enable them to be directly involved in economic
development. There are different types of educational systems made to fit into different
economic systems. The educational system of a country directly affects economic performance
since it absorbs the trained labor directly. This is what happened in South Africa since they
understood the relationship between the educational system and economic prosperity of that
country.
South Africa is known for comprehensive and flexible educational system. It is a two-
way educational system which involves training people on job skills as well as impacting
management skills (Jansen& Christie, 1999). It, therefore, involves people training on a specific
field of study which has direct absorption to the economy. It enables the government to reduce
the cost of offering further training after schools. This means that trained people are absorbed
directly into the economy of the country making the government save a lot of resources that
could have been used in offering further training them (Barro,2001). The Colonists, in addition,
developed schools for training unprofessional but important courses that are a big force for
economic prosperity. Such courses include mining skills and masonry.
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The education system in South Africa, therefore, has played a big part in promoting
economic growth and development of business culture which has led the country to have a lot
of impact on Worlds’ economic table. The education is quality, job and industry-focused as well
as skill-based training.
ECONOMIC ELEMENTS AND DIMENSIONS INTEGRATION BY
LOCALS CONDUCTING BUSINESS
Communication
Locals conducting business in South Africa have developed the strong use of
communication within the country to facilitate their daily activities. Communication facilitates
processes such as marketing, selling and goods delivery as well as getting customers to feedback
to enable you to react to their future needs well. Maximum integration of communication as an
economic element ensures the locals conducting the business can address that market gaps by
providing the best response to customers’ demands. Customers are the main force driving
economic prosperity in any country. Addressing the gaps in their need’s leads to their satisfaction
and assurance of future support hence future business prosperity. South Africa economic growth
has really been boosted by a strong communication network.
Religion
One of the major factors for economic developments in South Africa is a strong religion.
Locals conducting business have embraced religion as their main guiding force as they interact
with their customers. Religion has installed virtues such as faithfulness, transparent, honest,
endurance and being responsible. These are precious virtues that are needed in making the
environmental business to be conducive for proper and quality business conducting. Locals need
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to be faithful to their customers as well as being faithful to the government as they are required
to pay taxes for economic sustenance. Religions impart self-control to the locals enabling to go
against any unethical practice they may come across in the field. In addition, it enables the
locals to stop engaging themselves from illegal business such as drugs trafficking which may
end up tarnishing the good economic image of South Africa.
Ethics
Ethics are the most important virtues when for locals as they interact and conduct their
business with the economic system of South Africa. They are the morals that control internal
decision making. Locals are guided by morals in making decisions such as selling of expired
goods to customers knowingly. They are bound by moral values to know that the success of the
economy of South Africa lies in their hands and any misconduct can tarnish the good
environment for their business. However, the locals for long have been bound by morals hence
ensuring that the economic growth of South Africa is not interfered with by such small and
minor issue.
Values and Attitude
These are two that must always guide locals in their daily activities. Locals conducting
business within the economy of South Africa must understand the value of that country and what
is required of them to maintain such standards by installing the business culture from one
generation to the other. The locals need to embrace the economic attitude they inherited from the
colonial masters of pushing for economic prosperity regardless of different challenges they
might be facing from internal economic factors. However, research has confirmed South African
locals have always kept positive economic development spirit hence maintaining economic
prosperity in South Africa.
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Manners
Manners explains how things are done for them to meet the expected standards. Locals
conducting business in South Africa are obliged to abide by the manners set up by their colonial
masters of conducting business. They need to obey every aspect of business for them to maintain
the good business relationship between South Africa and the international economic community.
This will ensure that they maintain the business standards high hence prompting business and
economic prosperity. Manners are much required especially in the global market where a lot of
scrutinizes is being done to eliminate any form of business misconduct. However deep analysis
of business manner analysis on locals conducting business has revealed that due to economic
pressure and standard previously set, most of the locals have embraced good business manners
as they follow the steps of their business successors. This is one of the factors that have
propelled the economic prosperity of South Africa which is one of the features of characteristics
of global business culture analysis.
Customs
These are the authorities set aside by the government of South Africa to enhance the
collection of revenues from the business such as revenues from the issue of business licenses and
collection of taxes. These incomes are of great value as they are invested back in the economy
and facilitate in improving structures such as roads which in turn facilitate economic growth and
development. Locals conducting business in South Africa have embraced and integrated customs
in their operations in the sense that they have known that paying them back to the government is
only helping themselves as their facilities such as roads and market infrastructures are much
improved just by using their own contributions.
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This has made the government always to have the finance to put in place any economic
input required. This has resulted in the development of the complex economic system of South
Africa with most of the economic facilities which are rare to find in most of the countries made
available for locals in South Africa. In addition, it has changed their individual
Perspective on customs.
Social Structure and Organizations
South Africa is one of the countries with many social classifications especially due to the
existence of many people with different origins. These social structures have helped in
propelling the economic prosperity of South Africa ahead. After the historical Apartheid war to
fight against social discrimination, which was pulling the South Africa part, the nation was
turned into one unit with all those groups (social groups) having the same economic focus.
Locals conducting business in South Africa have integrated social structures to facilitate
economic growth by ignoring those perspectives brought up by discriminations. Therefore, they
have turned South Africa to be a good example of how a country with diverse cultures can really
prosper in the economy as it boosts the wide range of skills and knowledge adopted from
different countries where South African nationals trace their origins. People in South Africa are
aligned in different organizations which are all focused in ensuring a conducive environment for
business and trade. For example, there is a political organization which is charged with ensuring
equal distributions of economic resources.
Education
Education is always the most powerful economic tool as it gives you knowledge and
skills of interacting with customers in the market as well as enabling you to know how to handle
economic challenges. Research revealed that Locals conducting business in South Africa have
in
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great depth adopted and integrated the educational system in carrying out their business activities
as it enables them to increase their efficiency and quality in service delivery. This has enabled
them to be fully absorbed in the economic operation in South Africa since education has enabled
them to understand well all the local and international economic operational systems. Education
as one of the global business culture tools focuses on investigating if the locals are able to fully
embrace and integrate the economic system of the national by interpreting and applying the
knowledge acquired from their national educational system. However, this is already what the
locals have done hence increasing dynamics in the economic progress of South Africa.
COMPARISON WITH UNITED STATES’ CULTURE AND BUSINESS
South Africa and the United States are two different states with some similarities and
differences in the economic and business development observed from critical analysis of the
Global Business cultural analysis (Alm & Torgler,2006). This is mainly observed from diversities
in their economic elements and dimensions as analyzed below.
Communication
Communication is the main force driving the economic prosperity of any country. The
two countries are boosting strong communication networks however of different communication
depth level. The fact that Communication in South Africa was developed by colonialists while
that in the United States was purely made the by nationals of the United States brings wide
diversity. A communication system in the United States is of high-quality levels compared to
those in South Africa. However, all of them are facilitating economic development and
prosperity since the two countries are operating in different economic levels in the World.
Religion
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Religion in the two countries is similar in the sense that the two countries have the same
diversities in the religion of their respective citizens. In economic development religion is used
to install the same virtues and habits to the citizens, to enable them to be careful in any activity
as well as having economic decisions that are religion-bound.
Ethics
Ethics, as it is observed, are moral values that govern human conduct. The two countries
have different ethics perspective in the sense that some practices are accepted in the United
States’ culture and at the same time they are illegal in South Africa. For example, some trade
such as drugs are accepted in the United States but fully prohibited in South Africa. Some of
these ethics are culture-bound with the two countries being governed by different cultures. This
may bring future complications in carrying business between the two countries.
Values and Attitude
Comparison of these two features from the two countries shows that the United States has
high economic value compared to South Africa regardless of whether South Africa is one of the
major sources of Gold in the World. This big difference is because of the economic development
diversities between the two countries. However, the two countries are viewed to have the same
attitude toward economic development and prosperity. They are focused on improving the
economic status regardless of their past and current development.
Manners
Analysis of manners as one of the global business cultural analysis tool between the two
states fall in the same bracket in the sense that locals from respective countries have learned how
things are done to maintain developments standards.
Customs
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The two countries are aimed at economic sustenance. Research shows that governments
of the two respective countries have put in place different structures for customs operations.
However, customs in both countries are focused on the same goal of improving economic
facilities for a better economic environment.
Social Structure and Organizations
The two countries are observed to have two different forms of social structures and
organizations. South Africa developed under social structures based on the Apartheid which was
not the case in the United States.
Education
The two countries are experiencing almost the same educational system which is skill
based and job oriented. This means that due to economic development and prosperity motive, the
two countries are sailing in the same boat.
IMPLICATIONS OF UNITED STATES BUSINESS THAT WISH TO CONDUCT
BUSINESS IN SOUTH AFRICA
SWOT Analysis
This involves the analysis of the strengths, weaknesses, opportunities, and threats likely
to be faced by the United States wishing to conduct business in South Africa as follows.
Strength
•High economic power in the World market
•Strong business skills and experience
•Good brand and market image.
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•Strong financial depth to invest high.
•High-risk management skills for managing invests.
•Strong currency in the market making easy for them to transact.
•Internationally recognized currency hence easy for trading.
•Strong and well-established international relationship which will facilitate their trade.
Weakness
•Poor relationships with some groups in South Africa may expose their loopholes.
•Failure to understand the sociocultural practices in South Africa
•Devaluation of African heritage
•Poor interaction skills in the market.
•Failure to understand the social structures in South Africa.
Opportunities
•The big and readily available market for further exploitation.
•A good opportunity of interacting with international merchants based in South Africa.
•High chance of business growth
•High profitability opportunities.
•International market exploitation due to international connections from South Africa.
•High skilled labour from the educational system of South Africa to offer labour
for business exploitation.
•Well, religion governed community to make it easy for business activities.
•An economically motivated society ready to work for economic growth and prosperity.
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Threats
•Poor geographical climate may make it hard for the United States people to adapt
•A negative attitude may develop towards their business by the locals
•Strong competition may not give them peace of mind to fully establish themselves.
•Strong customs regulation may make them feel pressed as it is different from that one
of the United States.
FDI Analysis
This is Foreign Direct Investments which usually occurs when an investor directly invests
in another country from his own (Wang & Wang, 2010). This is the case with the United States
individuals willing to invest in South Africa. There are four different types of FDI and their
analysis follows below to help in establishing the kind of FDI that is about to take place as
follows:
I. Natural resource seeking: This is mainly influenced by factors such as seeking for
well-developed infrastructures, cost-effective and quality resources, a source of a
new market base as well as well as well processing industry.
II. Market-seeking: This is initiated by factors such as the search for big market
size, cheap cost of labour, institutional competence as well as good established
macro- economic policies of the host government.
III. Efficiency-seeking: It is usually controlled by a search for reduced cost of
production, skilled and professional labour, creative and innovative economic
policies and high-efficiency infrastructure.
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IV. Strategic –asset seeking: It is mainly initiated by factors such as availability of
knowledge –related assets, different cultures, and well-developed production
systems.
The above analysis shows that those individuals from the United States willing to conduct
business from the United States are will be on Market-seeking Foreign Direct
Investments.
Study Area Description
This study was conducted in South Africa. This is one of the African Countries that has
undergone a lot of economic developments associated with different socioeconomic and political
factors. The country has undergone different developmental periods due to its pre-colonial,
colonial and post-colonial administration. The major goal of the study was to carry out global
business cultural analysis mainly done to investigate developments that have taken place and the
major factors associated with such developments. Many economic elements have been associated
with the developments of South Africa, therefore, making it a top spot for economic
developments. This has made it draw attention from international investors such as those from
United States who are willing to have Market-seeking FDI. Presence of precious gold in South
Africa has also played a major role in making South Africa one of the most influential countries
in the world economic line.
Secondary Data Collection
The study involved data collection in two phases namely the primary and secondary
phases. Secondary phase involved getting into the international chamber of business and
commerce where all business information across the world is stored. A lot of business data and
information about global business are taken and analyzed in order to prove our hypothesis. The
data analysis usually was controlled by our hypothesis as we aimed at establishing facts as
required in the global business cultural analysis desk. The facts obtained from this analysis was
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then stored as they could only be proved the collection of the primary data about the same. This
was to avoid biases and assumptions in our Research paper which could render in void and
invalid.
Expert Suggestion and Decision
After the analysis of secondary data on global business cultural, there was a lot of
contradiction from the real facts about South Africa economic development. The data and
information were deemed invalid as maybe it had been altered while in stores. The next step
was to carry out primary data collection to establish the actual facts about South Africa
economic development.
Primary Data Collection
This was conducted from the ground (South Africa financial institutions& government
sectors). The main aim of this primary data collection was to remove disparities witnessed on
secondary data and have actual Prof of the hypothesized statements. Data collection here was
done using primary data collection methods such as questionnaires and interviews. Information
obtain was safely recorded for further analysis to get the Actual facts relating to South Africa
economically and hence answering the facts on global business cultural analysis requirements.
Those interviews and questionnaires had been structured to fulfill the requirements of our
interviews.
Primary Data Analysis
The primary data obtained was critically analyzed in the drive of our hypothesis. Some
variations were observed during the analysis of primary data compared to the results on the
analysis of secondary data. However, there was a high percentage of correlation between the
analyses of the two data samples. Facts were established on how and which factors have
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contributed to economic growth of South Africa. There was an establishment of both minor and
major factors contributing to the economic growth of South Africa. All other elements and their
economic growth influence level were also addressed during data primary and secondary data
analysis. Harmonization of these disparities was done.
Result and Discussion
The main results of the research paper were to establish some economic facts on the
economic prosperity of South Africa. In addition, there was an urge to establish minor and
major factors contributing to economic growth and development. This was done through an
analysis of the economic elements used in a global business cultural analysis. The results
classified the elements into main and major factors for the economic growth of South Africa as
follows.
Major factors
These were the main elements which were observed to be playing the upper hand in
influencing the economic dynamics of South Africa (Menyah & Wolde-Rufael,2010). These
factors include:
•Communication
•Ethics
•Religion
•Education
•Customs
These factors control all the other factors in the economic system of any country.
They form the backbone of economic progress in the sense that if those factors are not
operating well, then the economic progress of that country is compromised. The results also
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showed the degree of economic prosperity of any country (South Africa) is
directly influenced by the individual relationship between them.
Minor Factors
These were other factors that have a direct influence on economic development in South
Africa (Granato, et.al, 1996). However, these factors do not largely influence the economy since
they are under the brackets of the major factors. These factors include
•Social structures and organizations
•Manners
•Values and attitude
Data analysis showed economic prosperity can still prosper even when these factors are
unfavorable. They have little influence on the economic development of any country. Thus,
the hypothesis on addressing the main factors contributing to economic prosperity as required
in the global business cultural analysis was fully addressed.
The hypothesis on the effect of the long presence of colonial masters to economic
developments was fully addressed as data analysis shown some development projects set
recently and in late years which have highly contributed to the economic prosperity of South
Africa was fully addressed in the data analysis stage of the research paper. The last part of the
paper was addressing the drawbacks to economic prosperity of South Africa and what can be
done to ensure economic progress. These drawbacks were fully seen and witnessed during our
primary data collection stage. Establishment of these loopholes has therefore made it possible
for correct advice to be made available to the government of South Africa for it to take the
necessary actions to address them. This will create a conducive environment for business and
economic prosperity.
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Conclusion
The main reason for this research was to carry out GBCA analysis for the chosen country
and draw facts from the analysis. In addition, it was driven to establish facts on the economic
prosperity of South Africa and advice possible investors through SWOT analysis on how they
should carry out their investment activities. Economic behavior and flexibility of South Africa
were also studied in addition to its possible opportunities. Main reasons for the economic
development of South Africa such as the presence of their colonial masters were well analyzed.
The study also involved a comparison of South Africa economy behavior with other
countries such as the United States through comparing their similarities in the global business
cultural analysis elements. This was done to test the standards of economic developments of
South Africa.
Recommendation
This paper recommends that South Africa needs to strengthen the major elements
contributing directly to its economic prosperity for it to maintain high developmental standards
and economic prosperity.
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