1. South Africa Shelby BatesSarah Hart Annalisa DayTye Jones Chelsi DelgadoTravis Marlar Jessica DenisZach Williams

2. Background Location 50 million GDP 363.9 billion

3. Currency Rand Exchange rate ◦ 1 US Dollar = 7.88 Rand Financial System ◦ South African Reserve Bank

4. Industries Natural Resources ◦ Minerals: platinum, coal, diamonds ◦ Timber: to build mines ◦ Agriculture: sugar, grapes, citrus, wine, meat, wool, cotton, tobacco, maize Motor vehicles/vehicle parts Tourism Infrastructure

5. Business Appeal Established legal system Strives for 6% economic growth Incentive grants ◦ Electricity allowances, low interest rates, support programs

6. Business in South Africa Business language Communication ◦ Acceptable/unacceptable Conflict style Negotiation style

7. Business Background In South Africa Diverse Business Mixture ◦ First world economic infrastructure ◦ Third world poverty Wealthiest country in Africa Major Political Changes ◦ Post-Apartheid ◦ Abolishing racial segregation ◦ “Rainbow Nation”

8. Business Structures 50% of South Africa’s fixed assets are controlled by the government ◦ Centralized Power ◦ Hierarchical & Bureaucratic Organizations Business environment changes daily Recent government and political changes have transformed the business structure of many South African companies New Companies Act (2011) – Similar to U.S. business structures ◦ Sole Proprietor ◦ Close Corporation ◦ Private & Public Company ◦ Partnerships ◦ Non-Profit Organizations

9. Management Style Power accumulated style Decisions are often made at the top by a few senior managers (usually white) Post-Apartheid ◦ Hierarchies starting to break down ◦ Younger middle-managers more proactive and involved in decision making Evolving Middle Management ◦ Black Professionalism ◦ “Affirmative Action” Programs

10. Business Communication Styles English is the common business language Different English language usages ◦ Plain Speaking VS Diplomatic Approach ◦ Plain Speaking: mainly spoken by Anglo/white South Africans ◦ Diplomatic Approach: mainly spoken by native black cultures Humor is often used while communicating in the business environment Formal titles rarely used

11. Typical Business Environment Women in Business ◦ Traditionally women have played a very minimal role ◦ Female participation at the senior management level is rare ◦ Progress towards gender equality has progressed slowly Business Attire ◦ Similar to the United States (conservative) ◦ Men-collar and tie, jacket is not preferred by South African’s ◦ Women-conservative dresses or suit

12. Human Resources Affirmative action Minimum wage ◦ R1100/month ($140) Promotion Key employment laws ◦ 17 weeks maternity leave ◦ 15 years of age

13. Common Business Practices 45 hour work week (10 hours overtime) Meetings ◦ Establish rapport ◦ Not common to use agendas Decision making based on facts, not intuition Gift-giving is not common Don’t interrupt

14. Conclusion Legal support Strong natural resource industries Strongest economy in Africa