Please read the case study below and answer the question.

CASE STUDY: Dickys father worked for one of South Africas leading bricks manufacturing companies. On his retirement, per company policy, his daughter Dicky was absorbed by the company as an administrative assistant. After a couple of years working at the company, Dicky saw an opportunity to open her own company in Soweto. Within two years, with the support and training of women's organisations the business idea was crystallised. She developed a business plan, obtained licensing, selected staff and registered the business legally. It was never a walk in the park, though. Initially, she dependent on established suppliers delivery trucks, but drivers were not reliable enough, often delaying their deliveries. Then they started making use of emerging contractors as well in Soweto, with only gentlemens agreements, which worked well for them. Around 1984 they became even more hands-on; they diversified into selling tiles also. As a result, the companys name changed to Pholo Brick & Tile. The business started trading, but with some growing pains as usual. In 1985 riots erupted in Soweto, and trucks were burnt down. They overcame this problem by using their business names on the trucks belonging to established white businesses to safeguard them. The police used to escort them in convoys for protection. Three years later, things went back to normal.

Between 1988 and 1994, they acquired a truss manufacturing plant and operations under licence - MII Mitek. Growth put pressure on resources: they had to match opportunity with resources; closely watch and balance cash flow; production; delivery, and appointment of personnel. For cultural reasons, they had to change the companys name gain as the people in the township associated the name Pholo Brick & Tile with Corobrik, creating the perception that they were fronting for Corobrik! They, therefore, had to personalise the business name to 'Dickys Bricks', and that was acceptable. The company gained Competitive Advantage by becoming a Soweto- based one-stop service ranging from designing houses and trusses (architectural & engineering services) to manufacturing cement bricks, steel windows and, doors and security gates, to the range of hardware needed for housing schemes.

In 2000 some staff members were sent to the US Agency for International Development (USAID) conference on franchising. They wanted to go into a franchise with Corobrik, who became their main competitor and the deal fell through. At this point they learned a lot of things: They learned how to manage time and to delegate; expense control; productivity; enter into niche market; investment in plant, equipment and etc. They also empowered and rewarded talented & committed staff members who performed well. They further outsourced and sold many of the successful ventures on their premises to staff members, shared the running costs and focussed on their core business. Additionally, they focussed more on community services and effectively use their networks to the advantage of their business. They acknowledge the role that organisations such as The South African Women in Construction (SAWiC) have played in expanding their networks, promoting their businesses and helping them to secure business partners. Dickys Bricks started focusing on marketing. She found that the Junk Mail brought them more business than the Sowetan advertisements. Held promotions & training sessions for their supply companies run on their business premises. Used discount coupons, brochures, leaflets at traffic lights, and trade shows and used signboards. From 1992 and 1995 to 1996, Transnet and Mining retrenchments negatively impacted on their business. They had to come up with new and innovative ideas to maintain a competitive advantage. Thats when they outsourced those activities that were not part of their core business but retained them on their premises. They created a mini industrial park in Soweto, thus sharing running costs. This was beneficial to all parties involved, which also provided a one-stop service.

Questions

• Discuss the growth stages of Dickys Bricks (Pty) Ltd
  • In which business sector is Dickys Bricks (Pty)
  • Is Dickys Bricks an opportunity, necessity or growth-oriented business? Support your answer
  • Discuss the life cycle of Dickys Bricks (Pty) Ltd.

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