Mass store and job cuts at Massmart
Pages 300-302 in the ALC 131 Workbook
Implied meaning quotes:
Using your critical reading skills, explain in your OWN WORDS what the implied meaning is of the following two quotes from the article:
1) “Direct foreign investments are a problem as once they have got majority shareholding they start cutting jobs and increase the challenges that our country is facing, tackling high unemployment, poverty and inequality”, said Saccawu’s Khulekani Ngubane. (Paragraph 9, second sentence) (5marks)
2) But its performance against other South African incumbents has been less than stellar. Now, after nine years since Walmart’s acquisition, Massmart will add to the country’s unemployment rate because of under performance in a weak economy and tough competition. (Paragraph 1, sentence 3 & 4) [unique_solution] (5marks)
2) Critical discussion (20 marks)
In article titled Mass store and job cuts at Massmart the author states “Retail analysts said that a changing wholesale market, a weak economy and customers’ ability to source hi-tech appliances cheaply online have been at the heart of Massmart’s underperformance.” (Paragraph 4, first sentence)
Instruction:
With reference to the quote above, critically discuss why you think Massmart has underperformed in the South African retail market. Secondly, explain what the effects of Massmart’s under performance will be on the South African economy and its citizens.
Provide relevant reasons and examples in your discussion.
Use De Bono’s CAF tool as a guide in your discussion.