Content area
Abstract
The residential building industry in South Africa, and more specifically in Pretoria, is characterized by the large number of failed enterprises in this industry. An important reason for this is the fact that the residential building industry functions in a turbulent environment. In order to be successful it is necessary for those developers and contractors to use their available resources in such a way that they will be utilizing the opportunities and threats caused by the environment. The underlying problem dealth with in this investigation is that of a turbulent environment and its influence on the management of enterprises in the residential building industry.
The situation in the Greater Pretoria Area was investigated. Strategic management aspects of the enterprises in the residential building industry were tested according to a model for strategic management that was developed from the literature. The investigation revealed that the residential building industry severely lacks an explicit mission. Also, the empirical testing of the various components of the model indicated that the enterprises are managed on a reactive basis and that pro-active or strategic management is lacking. The latter is essential to manage the enterprises effectively in a turbulent environment.
Against this background and specifically bearing in mind the most important findings, it is recommended that: (1) the industry make a thorough study of the environment in order to develop a mission; (2) the management of enterprises in the residential building industry be exposed to training in strategic management; (3) small enterprises in the industry should consider the consolidation of their interests to maintain greater competitiveness and thereby stand a better chance of surviving; and (4) the utilisation and training of Blacks for management positions be strongly considered.