Analysis of economic development strategy (a study conducted in Ethekwini Municipality)

Abstract

This study was conducted in Ethekwini Municipality, between May 2003 and August 2003. The aim of this study was to analyse and evaluate the economic development strategy implemented by the city. The major concern of the research was to locate strategy responsibility within broad economic transformation. Since 1996 Durban has been at the forefront of change in urban management as far as South African cities are concerned. Strict fiscal controls and innovative transformation programmes have ensured that the Council has managed to walk the delicate tightrope between maintaining established areas and uplifting historically disadvantaged ones. The strategic integration of the world markets brought about by the growth of transnational and multinational enterprise activity requires very responsive management with flatter and more flexible organisational structures in order to adapt to an everchanging business climate. This leads organisations to develop partnerships in order to increase their weapons to face the tight global competition. Organisations have tried many strategies, but in most cases, they are not suitable for the competitive edge as might be the company goal. It is questionable whether the wrong strategies are implemented in wrong organisations, the right to the wrong or the lack of leadership? This means that the managers must not focus on rigid strategies but focus on those strategies that will lead the organisation to exploit opportunities.