Abstract
The purpose of this research study was to examine the strategic management processes utilised
to support implementation of the B-BBEE revised requirements in the petroleum sector, using
Company X as a case study. The paper also investigated challenges associated with B-BBEE
strategies and strategic management process in practice.
Strategic management processes are generating an increasing amount of attention, and are
important to organisations given the current turbulent socio-economic climate in which they
operate in. It is imperative that business look ahead constructively and interpret the future as
accurately as possible and attempt to provide the products and services aligned to the B-BBEE
requirements.
This research adopted a qualitative approach and was conducted by means of semi-structured
interviews, where respondents were asked questions about strategic management process used
in the petroleum sector to achieve the revised broad based black economic empowerment
requirements.
The results reveal that some business units are not aware that they are failing to utilise all strategic
plans in place to support B-BBEE initiatives. The results further reveal that there is a culture of
resistance and ignorance toward B-BBEE, lack of leadership support, awarding of incentives and
rewards being inconsistent and biased, lack of independence, fronting practices and funding
allocation constraints, the need for B-BBEE structures to be reviewed, lack of diversity and poor
execution of B-BBEE . The use of B-BBEE strategies, policies and procedures should fully be
implemented. The importance of collaboration amongst business units assigned to different BBBEE’s five key elements needs to be prioritised. In conclusion, the organisation should organise
training awareness for all employees in the organisation. This will assist them with better
understanding of B-BBEE in totality and afford them techniques on how to add value into the
strategy and strategic management process. The company needs to develop a manual or policy
guide that should be made available to all employees. The employees need to be incentivised to
support the B-BBEE strategy and strategic management process thereof.
M.Com. (Business Management)