Eagle Logistics $($EL$)$ was started many years ago when its founder Amir Singh, invested his

retrenchment package into establishing the business. Amir has retired and handed over the

business to his two sons, Hassan and Rohan. EL is a specialist in international logistics

solutions with its head office in South Africa with international branches in Mauritius, Australia,

Germany, Netherlands, UK$,$ Hong Kong, and China. EL owns no physical assets. Over $80\%$ of

their earnings come from outside of South Africa and across multiple major trade routes. As the

company gets larger its ability to aggregate client volumes and logistics needs increases,

allowing them to leverage their network for cost$-$effective solutions compared to asset$-$heavy

competitors.

EL has achieved success by providing a very differentiated service to its customers. EL$$s

strategic objective has been to exploit market opportunities to achieve a high level of return on

investment. Father and Sons have been very involved in the business where they carried out

all the strategic planning and operational management activities. One could call their approach

to strategic planning as Freewheeling opportunism.

Now that their Father has retired, Hassen and Rohan know that to continue to grow the business

they will need to raise more capital, and they will have to appoint other senior managers to

maintain the operational side of the business. This will free up the brothers to focus more on

the strategic development of EL$.$ The brothers are considering raising new capital through listing

on the Johannesburg Stock Exchange $($JSE$)$

REQUIRED:

a$)$ Explain how the strategic planning of EL might alter if the organisation raises additional funds

by listing on the JSE. $($Do not provide a theory dump on the strategic process, no marks will

be awarded$).$

$(13$ marks$)$

b$)$ Discuss the most appropriate strategic planning process that EL should adopt in order to

satisfy its organisational objectives following the public issue of shares on the JSE

$(12$ marks$)$