Supergroup/South Africa: Contextual Leadership from Turnaround to Strategic Niche
(5 pages of text)
In January 2018, the chief executive officer (CEO) of logistics company Supergroup Limited (Supergroup), considered the ideal weighting of Supergroup’s offshore activities given a weak South African rand and slow growth in the country. The company had nearly become bankrupt in 2009, and the CEO had been hired as the “turnaround” leader who headed its steady recovery, stabilizing the company and building its initiatives toward growth. Now that Supergroup had made a successful recovery, shareholders were asking the CEO whether Supergroup should be focusing its investment strategy outside Africa. The CEO, too, was concerned about the group’s concentration in Africa. Although he and the executive team preferred organic acquisition growth to dividends, they were grappling with the question of what their future focus of acquisitions should be.
The case is suitable for a graduate-level course on strategic leadership, international business, organizational development, or corporate finance. After working through the case and assignment questions, students should be able to do the following:
- Understand contextually relevant factors in deciding to turn around a business.
- Evaluate the contextual intelligence of a turnaround leader.
- Analyze corporate finance ratios to inform decision-making.
- Understand strategic choices in sustaining the growth of an organization.
Transportation and Warehousing
South Africa, Large, 2017
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