THE QUESTIONS ARE BASED ON THE CASE STUDY

Ayanda is a small-scale farmer with a mix of produce that he supplies to local fruit vendors and smaller, privately owned supermarkets. Recently, agricultural land has been made available in Ayandas area as part of a black economic empowerment (BEE) initiative. Ayanda has been approached by a consortium, called Siyaphumelela Holdings, to act as a project manager on the farm, with the aim of establishing table grape vineyards. Siyaphumelela is also running other farms in the area. The goal is for 90 per cent of the grape yield to be used for export to overseas markets, and the remaining ten per cent to be sold within South Africa. The overseas markets are highly lucrative, due to the weak South African rand. However, overseas buyers have very stringent regulations and policies that must be adhered to, and that require a lot of administration in order to meet certifications, which also vary from country to country. Fruit is sold by agents to overseas clients such as supermarket chains; for example, Tesco in the United Kingdom (UK). Local clients include Spar and Food Lovers Market. Fruit is sold to clients on demand or on fixed contracts, where the producer commits to delivering a specific quantity at an agreed priced to the client during the season. Furthermore, the fruit must be of a very high quality, and growing the fruit will require very specific expertise, as fruit is a sensitive crop that is prone to diseases and pests. The venture is capital-intensive, with high input costs. It is also time-sensitive, as it takes at least two years before the vines will yield their first harvest. This means that there will be a long period of time during which the farm will receive no income, and where it will rely only on credit that has been made available to it (around R 2 million per annum). Ayanda accepts the position based on his agricultural and commercial experience, and he is named chief project manager. He will report to the head of the project committee, Sihle, who reports to the board of Siyaphumelela and the chief executive officer (CEO), chief financial officer (CFO) and chief operations officer (COO). Before the first spade penetrates the ground, Ayanda needs to put together a team to help him establish an operational structure that will be used to launch the first stages of the project.

Question 3 [21] The farm is located within a larger farming community and is near to a medium- sized town. There are also at least two informal settlements in the vicinity, both of which have high unemployment rates, and that provide the farms with seasonal and casual labour. Most farms have permanent labourers who live on the premises, and who have been doing so for generations. It is a culturally mixed area that reflects the demographics of the rest of South Africa. Knowing who the stakeholders are is an integral part of the project. A tool that can be used to identify stakeholders and the influence they have on the project is the stakeholder analysis. Ayanda decides to use the power-interest grid in order to analyse the characteristics of the stakeholders who he has identified on the farm and in the surrounding area. Mark 3.1 Briefly define the concepts of power and interest as they are applied in the power-interest grid. (6) 3.2 Identify the two key stakeholders who should be placed in quadrant B of the power-interest grid. Substantiate your choices. (4) 3.3 Name the quadrant in which the community leaders of the informal settlements should be placed. Substantiate your answer. (6) 3.4 Ayanda has now identified stakeholders and is attempting to categorise them according to their priority. Complete the following stakeholder analysis matrix and assign the level of priority of each stakeholder in the 'Priority' column. (5) Scores: Key: 13-15 points . Secondary: 9-12 points Other: 1-8 points Urgency Total Priority 1 1 4 Stakeholder Legitimacy Interest Seasonal 2 5 labourers Permanent 2. 6 labourers Sihle 5 5 Irrigation 5 3 3 contractors Community 3 2 leaders 5 2 2 1