Management

1.
In what way could the huge cultural diversity in South Africa pose challenges for MNCs seeking to set up a business there?

Answer: The tremendous cultural diversity that exists in South Africa could create many challenges for MNCs seeking to do business in the country. Long held tensions between ethnic groups could create problems for MNCs when hiring employees, establishing managerial reporting systems, and even when marketing to customers. In addition, MNCs may find that their decision making is constrained by the government policies and indeed even the international political environment which may limit certain types of activities or transactions as part of an effort to encourage certain types of behaviors.

2.
How is South African culture different from or similar to U.S. culture?

Answer: Both the U.S. and South Africa are home to multiple ethnic groups creating a melting pot of sorts. This melting pot helps to create a richer culture, but tensions between groups and in particular the rights afforded to each group can also create problems. Indeed, there have been efforts to create more equality between ethnic groups in the U.S. for decades. This type of effort is more recent in South Africa, and tensions between blacks and white in particular remain strong.

3.
In what ways could South Africa benefit from hosting the World Cup in the long term?

Answer: The 2010 World Cup Soccer tournament put South Africa in the global spotlight and brought the country much needed economic growth. More than 160,000 new jobs were created as part of the World Cup. In addition, to cope with the requirements of the tournament, the country upgraded its transportation infrastructure and its ability to generate power using environmentally-friendly techniques. The skills and training workers received as part of this process are another benefit associated with hosting the World Cup.

4.
What do you think are the most pressing social issues in South Africa and how is the country doing resolving them?

Answer: Social problems including poverty, AIDS, crime, and corruption continue to create challenges for South Africa. For years, the government failed to address these problems, but more recently, efforts have been made to find solutions. Certainly the recent hosting of the World Cup has created new jobs and provided many people with new skills, but more remains to be done. AIDS awareness campaigns have been implemented to try to address the problems associated with the disease, and in 2010, new guidelines for pregnant women with AIDS were established. The government has also taken steps to curb corruption, and while these efforts have met with some success, corruption remains a problem for the country.