Mr Popane Module 8 Topic Operational Management Case study on page 158 Case Study Entrepreneurship on page 158 1The textile industry is not competitive because Inability to source inputs at world prices ID: 1001263
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1. Entrepreneurship N5Lecturer Mr PopaneModule 8Topic : Operational ManagementCase study on page 158
2. Case Study Entrepreneurship on page 158 1.The textile industry is not competitive because Inability to source inputs at world pricesThis has caused an environment of import replacement and employment creation at almost any cost, non-competitive economic environment and price and supply controls at the input ends of the industries pipelines. This has led to establishment of industries and activities which are not and may never be able to become internationally competitive.A NPI study concluded that the raw-material input cost into costs into the pipeline from farmers to textile mills and on to clothing manufacturers are too high to compete effectively on the international scene. 2. Overprotect in this sector as elsewhere in the economy, may protect existing jobs in the capital-intensive industries but at the expense of many more potential jobs in downstream ones.The textile sector doesn’t profit from overprotection. Both industries are in “dire financial straits”. Profits earned by both industries will not sustain long-term growth and viability” 3. Capital-intensive- capital is need in large amounts(lots of Cash), hence Capital costs higher than labour costs, example Oil extractions and mining, Car manufacturing. Business that need a lot of CapitalLabour-intensive- A production is said to be labour intensive when it is heavily reliant on the workforce. Because the labour supply is cheap and readily available. The product need craftsmanship or special expertise to produce. The business is small and does not have the finance to purchase expensive machinery.