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A Case Study Of Bouwland Landgoed Ltd, South Africa

5874 words - 24 pages

Module: Business Strategy and Management

TABLE OF CONTENTS
1. Introduction……………………………………………………………………… 3
2. Discussion Questions…………………………………………………………… 3
2.1. Concepts of effective board governance…………………………………… 3
2.2. Incorporation of farm workers as shareholders and supporting
Theory……………………………………………………………………… 7
2.3. Suggested strategies for gaining new markets…………………………...... 9
2.4. Balancing Stakeholder needs…………………………………………….... 12
2.5. Possibilities for coalition building in South Africa……………………….. 15
2.6. Legal, social and political pressures facing the Trust……………………... 17
3. Conclusion……………………………………………………………………… 21
4. Bibliography……………………………………………………………………. 22

1. Introduction ( an abstract from the case study)
A case study of Bouwland Landgoed Ltd, South Africa, documents and analyses how a group of farm workers in South Africa’s famous Stellenbosch wine region became shareholders in a recently established vineyard and wine company. It further explains how this farmer group succeeded in entering a modern market channel. When Mr Truter and Mr Jaap Hendriks, the farm supervisor at Kanokop Estate and founder of the Stellenbosch Farm Workers Association, started to develop the idea of an empowerment company in 1998, they went through various time consuming steps. They brought together a selected group of farm workers from four wine estates namely, Kanonkop, Beyerskloof, the old Bouwland and Uyterwyk. Financing was arranged to fund the procurement of vineyard and equipment. The concept for the new Bouwland was worked out in detail in 2002 and 2003 and the land grant application was filed in April 2002. It took four years before Bouwland Landgoed Ltd was established in part because of the time it took to negotiate a land grant with the Ministry for Agriculture and Land Affairs. It is this land grant which made the project feasible, as stated in the USAID article by Neven, D, Reardon, T & Hopkins, R. (2005: 14).
The case discussion and questions below give a bigger picture of the organisation and operations of Bouwland Landgoed Ltd.
2. Discussion questions

2.1 . Think about the concepts of effective board governance. What can be learned about the effect of incorporating new shareholders on the governance board?
A corporation is a mechanism established to allow different parties to contribute capital, expertise and labour for mutual benefit. The investor/shareholder participates in the profits of the enterprise without taking responsibility for the operation. Management runs the company without being responsible for personally providing the funds. To make this possible, laws have been passed that give shareholders limited liability and corresponding, limited involvement in a corporation’s activities. That involvement includes the right to elect directors who have a legal duty to represent the shareholders and protect their interests. As representatives of the shareholders, directors have both the...

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