Survival strategies : changes to systems and controls in agricultural based businesses during a period of economic instability and hyperinflation in Zimbabwe.

Abstract

Zimbabwe is currently experiencing unprecedented hyperinflation, which is impacting

on the effectiveness and efficiency of businesses operating in this unstable economic

climate.

The current skewed economic policies are producing unusual threats for these

businesses but are also providing unusual opportunities for exploitation. Some of

these threats can be summarised as the breakdown of social infrastructure, which has

worsened the effects on these operations of low world market prices for primary

products.

There is a large amount of strategic systems and controls theory about management in

turbulent operating environments. Most of these focus on survival against fast moving

competition from rivals and substitutes, rapid pace of technological change and

similar developed country problems. Conventional strategic theory relies on stable

currency and procurement environments and is not well adapted to operations in

hyperinflation situations.

This paper reports the results of a study of strategic changes introduced as survival

mechanism by four businesses with a long operating cycle in primary agricultural

production. The study examines the relevance of specific strategic theories to each of

the respondents.

The respondents questioned all expect that the economic situation will return to

"normal" and that these strategic adjustments will be replaced with conventional

theory soon thereafter.