Value creation in the African cement market : a model and validation

Abstract

PURPOSE OF THE STUDY : This research sets out to develop a systems-thinking-based conceptual model that can be used by the cement service industry to market its products and services in Africa; to review the literature to identify available systems-thinking approaches that are used in the industry and to determine how they are used in the field of value engineering; and to identify the key challenges that prevent the diffusion of engineering products and services in Africa. DESIGN/METHODOGY/APPROACH: A descriptive narrative inquiry in the form of unstructured interviews with industry experts was conducted, together with a literature review, to validate and test the proposed model. FINDINGS : The research findings suggest that, in today’s unforgiving economic climate and ever-changing business environment, characterised by globalisation and increased competitiveness, it is increasingly important for every cement manufacturer to streamline its processes, optimise its overall equipment effectiveness, and effectively implement tested cost-reduction methods to remain competitive in the market. RECOMMENDATIONS : It is recommended for future research that this model be tested in a real market environment by a company operating in the African cement industry. The real market environment would test the model’s stages for applicability, effectiveness, and reliability. MANAGERIAL IMPLICATIONS : The research in this study supports the use of the proposed model to penetrate the African market and to help managers who are servicing the cement industry to be successful in the region. As suggested by the findings from the literature review, the success of this model would ultimately be determined by management, who should communicate the clear goals and expectations of this model and supply employees with the resources needed to help the company to achieve its set goals.