Challenges Of African Companies

ESTERN AND SOUTHERN AFRICAN MANAGEMENT INSTITUTE

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MASTERS IN BUSINESS ADMINISTRATION

MBA INTAKE 21 HQ DAY-ARUSHA

PROJECT PAPER MBA

COURSE: GENERAL MANAGEMENT (GM 501)

LECTURER: Prof. BONARD MWAPE & Dr. KIMARO M.S

PREPARED BY: GLORIA LOOMU OJARE

SUBMITTED ON: 22nd January, 2010

A report showing What Management Challenges are being faced by Companies in Africa

Table of contents

1. Introduction ....................................................................................

2. Background of the study......................................................................

3. Definitions of key terms......................................................................

4. General view at Companies in Africa.............................

5. The most common Challenges faced by Companies in Africa.......

1. Corporate Behaviour Challenge.................................................

2. Leadership Challenges.................................................................

3. Efficiency and Effectiveness Challenge..................................

4. Performance Maintenance Challenge........................................

5. Market Management Challenge..................................................

6. Micro Managing Challenge........................................................

7. Group Dynamics Challenges....................................................

8. Managerial Transformational Challenge.....................................

9. Tax Management Challenge...................................................

10.

6. Other Specific Challenges faced by Companies in Africa..................

1. Racism Challenge...........................................................................

2. Gender imbalance Challenge...........................................................

3. Global Financial Crisis Challenge....................................................

7. Recommendations and Conclusion

1. Recommendations

2. Conclusion

8. References (Bibliography)................................................................

1. Introduction

For many, the idea of owning a business is a dream comes true. People conjure up images of working reduced hours and having a fistful of cash. Whilst this is definitely a possibility for long term success stories, the truth of the matter is that owning and operating a company is very hard work, can be stressful and the owners are often stretched financially until the company gains momentum. It is, therefore, important for individuals who are contemplating owning or starting a company or a business to be aware of the challenges, obstacles or difficulties and reality that can present in day to day operations. This report looks at those management challenges faced by African Companies of all sizes across a board spectrum of different industries.

2. Background of the study

Starting up, Operating and maintaining a company requires an individual to draw on a diverse range of skills. Often, the owner has strengths in some core areas and has weaknesses in others. Hopefully, this was identified in the business plan. Irrespective, business owners must face facts that they will need to outsource or hire personnel when skill deficiency presents. Trying to be an expert in all the business facets can drain company resources and draw the business owner's attention away from core business imperatives. Part of good business management is knowing how to focus and use your skills in the most appropriate and productive way.

There are many other important considerations for running a company. However we going to look at the main management challenges that face many African companies and this report will serve as a basic primer and look at them.

3. Definitions of key terms

According to Longman Dictionary of Contemporary English here are definitions of the key terms on this report:-

Management has been defined as the activity of controlling and organizing the work that a company or organization does. And also as the people who are in charge of a company or organization.

Manager is someone whose job is to direct or control a business or a department and the people, equipments and money involved in it.

Company is a business organization that makes or sells goods or services.

Challenge is something that tests strength, skill or ability.

4. General view at Companies in Africa

African countries face many management challenges from managing the organization itself to managing its people. In most of companies in Africa they are small and owned by sometimes not very well educated owners hence financial responsibility is an often overlooked and misunderstood area of business operations. This is often the case in organizations that are run by sales personnel who are strong at generating and closing business but not so good at running operations. Having a centralized accounting system with designated personnel or employing the services of a bookkeeping service can assist business owners to deal with the accounting side of the business. It is also important