THE IMPACT OF BUSINESS TRANSFORMATION ON THE PROVISION OF PRODUCTS AND SERVICES IN OPERATIONAL-LEVEL RETAIL BUSINESSES: CASE STUDY

  • Xolani Protus Simamane Durban University of Technology, Faculty of Management Sciences, Durban
  • Robert Walter Dumisani Zondo Durban University of Technology, Faculty of Management Sciences, Durban
Keywords: business transformation, employee motivation, financial performance, retail, products and services

Abstract

The retail industry is arguably one of the most prosperous sectors in the global economy. It serves as an intermediary between producers and consumers. Given its significance in the everyday lives of people in communities, and its role in national economies, the industry operates under extensive competition driven by growth in Information Technology which has dramatically changed the consumption patterns and buying behavior of consumers today.  This study investigates the impact of transformation on the provision of products and services in operational-level retail businesses of KwaZulu-Natal (KZN).  This is a case study and the South African Post Office (SAPO) in KwaZulu-Natal (KZN) participated in the study.  Of the 101 branch managers of SAPO, 72 participated in the study, representing a 71 percent response rate.  The sample frame was obtained from both the Human Capital and the Infrastructure Management departments of SAPO in KZN.  Descriptive statistics and chi-square tests were used to analyze the two objectives. That is, to establish if the change brought about by business transformation activities improves the provision of products and services in retail businesses and thereby improves the financial performance.  It also determines if retail businesses undergoing transformation inspire confidence amongst employees, and thereby achieving their financial goals.  The findings revealed that business transformation has the ability to improve the provision of products and services of retail businesses.  Continuous communication with regards to transformation inspires confidence among employees, thereby leading to productivity improvements and the achievement of the organizational goals. Productive employees contribute positively to the financial performance of the business.  The original value of this study is its approach in uncovering strengths and weaknesses of business transformation in the operational-level retail businesses.

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Published
2017-09-23