GROUP ONE

NAME ID
Mataruka Alice T. R109176J
Munzvenzve Jonas R198977B
Karimunhenga Molyne T. R201327F
Chikugwe Naison R201350W
Chakabva Natasha R129199J
Masisimani Nelissa R201276M
Mapfumo Nyaradzo R201318A
Mutowodzwa Ruvimbo R174069P
Manika Shingairai R201319C
Mayaya Tatenda R143356H
Nyahuma Tichawana R075351D

QUESTION: ASSIGNMENT QUESTION: FIRM COMPETITIVENESS MODEL

IN A VOLATILE, UNCERTAIN, COMPLEX AND AMBIGUOUS
ENVIRONMENT (VUCA).

(As an advisor, what kind of a model can you suggest?)

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Contents
1.0 Introduction............................................................................................................................3
2.0 Background to the Study......................................................................................................3
3.0 Statement of the Problem.....................................................................................................5
4.0 Objectives................................................................................................................................5
4.1 Research Questions...............................................................................................................6
4.2 Hypotheses..............................................................................................................................6
5.0 Significance of the Study.......................................................................................................7
6.0 Methodology...........................................................................................................................7
6.1 Research Design.....................................................................................................................7
6.2 Population and Sampling.....................................................................................................8
6.3 Data Collection Methods.......................................................................................................8
6.4 Data Collection Instruments................................................................................................9
7.0 Results of the Study...............................................................................................................9
8.0 Interpretations and Discussion.........................................................................................11
9.0 Recommendations...............................................................................................................13
10.0 References.........................................................................................................................13

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1.0 Introduction

This paper will present a model which outlines and discusses strategies to
maintain firm competitiveness in a volatile, uncertain, complex and
ambiguous environment (VUCA). In so doing, the paper shall present the
model by giving a Background to the Study and a Statement of the Problem
before delving into Objectives, and the Methodology employed in gathering,
presenting and analysing data. Then it shall interpret the results and
discuss them before proffering recommendations in its conclusion.

2.0 Background to the Study

A VUCA environment is basically one which presents instability to a firm in

a modern setting (Simpson and Geoffrey, 2010). This means that the
modern firm must be aware of the potential hazards of such an
environment to its competitiveness. There are numerous aspects of a firm’s
competitiveness which the organisation must retain control of if it is to
remain operational. According to Martin (2011), these include among other
things, workforce retention, workforce satisfaction, ICT infrastructure,
oversight on demand and supply (market permutations), competition,
communication with external stakeholders, new technologies, the working
environment and new legislation.

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To retain its workforce and maintain their satisfaction, the modern firm
must understand the valencyvalence of its motivators against their
expectancy (Victor Vroom). Employees may make comparisons between
how they are being treated in an organisation and how other employees
are being treated elsewhere and begin to be dissatisfied. They may leave en
masse for ‘greener pastures’ if permitted, leading to sudden in-firm brain
drain. Such changes must be managed by being avoided through careful
planning and communication between management and its subordinates
(Ibid, 2011).

On the other hand, Iinformation Ccommunication Ttechnology (ICT) is

constantly changing to suit newer requirements and as such, the modern
organisation must ensure that it retains keeps up with the most relevant
technologies. New technologies such as Cloud Computing, Database
Management Systems (DBMS), R&D proxies, 3D printing and CAD,
programming software (such as Pastel), and inventory management and
payment systems such as Postilion and Temenos are constantly being
upgraded. A firm which fails to take this into account may fail to reach its
full operational and profit potential.

Then there may be sudden changes in demand and supply which may make
a firm less competitive visVis a visVis its competitors. Martin (2011), notes
that demand and supply are determined by a market’s awareness of
alternatives, prices, quality and availability among other factors which a
firm must be in constant touch with. According to Simpson and Geoffrey
(2010), this is just as important as how a firm manages its working
environment and responds to sudden changes in national or international
legislation.

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The foregoing means that an appreciation by the firm of the VUCA
environment is indispensable. The modern firm can no longer shut itself
out in and operate in isolation. The modern firm cannot afford to cut off
communication and information. It cannot afford to ignore technological
and market trends. Its structural and functional systems depend almost
entirely on its environment such that agency where potential and actual
changes are concerned is paramount.

3.0 Statement of the Problem

Simpson and Geoffrey (2010), argue that the rate of business environment
volatility and uncertainty in the United States and some parts of Europe
and Asia has increased at an exponential, compounding rate of between 5-
7% every five years. On the other hand, Africa and the rest of the
developing world are experiencing a slightly lower rate of change which
stands at an average of 3% every five years (Ibid, 2010). Despite this
difference, any change still presents uncertainty, complexity and ambiguity
which can render an unprepared business irrelevant and uncompetitive.
Albright (2004b) argues that a VUCA environment must therefore be
prepared for but sadly, according to Pindula (2020), over 70% of
businesses in Zimbabwe and Africa are ill-prepared for the massive
technological, operational and environmental changes a global VUCA
environment spread brings. As such, most businesses in these regions are
increasingly failing to remain competitive and unless measures are taken to
keep them afloat, foreclosure remains a lingering certainty.

4.0 Objectives

The model at the onset had various objectives which had to be resolved for
it to be deemed successful. These were:

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  To define the elements of a VUCA environment which may pose a
threat to the competitiveness of a firm
 To outline and describe the strategies which are currently being
employed by modern fiorms to protect their interests in a VUCA
environment
 To ascertain the level of success of the strategies
 To define a model which best answers how a firm can maintain
competitiveness in a VUCA environment

4.1 Research Questions

From the objectives presented above, the research developed

working questions which were placed in a structured questionnaire
used as one of the instruments in collecting data and these are:

 What makes a VUCA environment a threat to a firm’s

competitiveness?
 What strategies are currently being employed by firms to
protect themselves from the threats of a VUCA
environment?
 To what extent are these measures useful?
 How best can a firm maintain competitiveness in a VUCA
environment?

4.2 Hypotheses

H1: Most modern firms are ill-prepared to operate

competitively in a VUCA environment

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 H2: Most modern firms are well prepared to operate
competitively in a VUCA environment

5.0 Significance of the Study

This study is intended to be significant to various groups of people, national

productivity structures and organisations which include:

i. Industry - Industry will benefit by implementing appropriate

measures which will benefit overall competitiveness through
enhancing operational efficiency and effectiveness among industry
players. This also entails that they can benefit from the research
being the starting point for assisting players who fail to perform
according to standard within the VUCA environment.
ii. Academia – Academics, research agencies and national repositories
of research will benefit immensely from the availability of a blend
between primary and secondary research which this paper seeks to
present. This will form the basis for future research since the modern
business environment is fraught with changes which require
constant adjustments of perspective and strategies.
iii. The national economy – When the national economy benefits, the
positive outcomes are ubiquitous in their impact on other sectors.
For instance, a robust economy will promote socio-political stability.
So, this model’s aim, of encouraging firms to remain competitive in a
VUCA environment, is the initial step in attaining the said economic
growth and development.

6.0 Methodology

6.1 Research Design

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 This study employed methodological integration which means that it
will use both qualitative and quantitative techniques to gather,
present and analyse data. This shall be done within the parameters of
a carefully selected population from which a sample shall be
collected using probability, simple random sampling.

6.2 Population and Sampling

The model was based on a population of 1000 derived from Delta

Beverages employees at all levels in Harare, Zimbabwe. It was from
this population that a sampling frame of 100 potential respondents
was derived. Their names were blindly hand-picked from a basket
before they could be contacted. The hand-picking resulted in the
choice of two management level employees, with a proportion of 67
men and 33 women.

Most of the respondents were between the ages of 25 and 35. The
management staff were 46 and 53 years of age and both were men. In
terms of experience on the job, 65% (70% men and 30% women) of
the respondents had worked for between 3-5 years at Delta while
15% (62% men and 38% women) had worked for between 6 and 10
years. The remaining 20% (72% men and 28% women) had worked
for over 10 years for the organisation and included both managers.
This meant that overall, there were more male respondents than
females in the chosen sample.

6.3 Data Collection Methods

The study used a combination of secondary research (in the form of

academic and non-academic publications such as print and electronic
journals, newspapers, and books) and primary research strategies
which involved interviews and Focus Group Discussions (FGDs). Four
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 FGDs were established to tackle each of the four research objectives
outlined in this study.

6.4 Data Collection Instruments

The study used 100 questionnaires and structured interviews to

interrogate respondents. In order to gather information relevant to
the study in a timely and quick manner, the study ensured that the
questionnaires were structured according to the research questions
posed at the onset.

7.0 Results of the Study

• What makes a VUCA environment a threat to a firm’s

competitiveness?

In seeking responses to this question, the study defined a VUCA

environment as a volatile, uncertain, complex and ambiguous environment.
The respondents were then asked how each aspect of a VUCA environment
can pose a threat to a firm’s competitiveness. The results which were
gathered, were coded and summarised and are outlined in the table below.

VUCA ASPECT Possible threat to organisation

Volatility  Failure to adjust due to suddenness of
changes
 Inability to learn according to speed
 Disruptive technologies can be expensive
 Lack of trust between organisation and
technology vendors
Uncertainty  Difficulty to perceive competitor’s position
after change
 Failure to predict future potential threats
 Difficulty in predicting the usefulness of
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 current strengths and opportunities the firm
has
Complexity  Difficulty in organisational learning due to
limited skills and adaptivity levels
 Change may be uncontrollable (e.g. that
brought into global industries by COVID-19
Ambiguity  Difficulty in getting and retaining relevant
information
 Failure to choose appropriate strategy since
numerous strategies may be presented
 Communication failure across vital
interfaces

• What strategies are currently being employed by firms to

protect themselves from the threats of a VUCA environment?

The study coded and summarised the strategies presented below which
were gathered from available literature
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• To what extent are the above measures useful?

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In seeking responses to these questions, the study presented the above
current solutions to the 100 respondents gathered at Delta Beverages in
Harare. They were asked to place a value between 0 and 5 before all the
results were added up and averaged by being divided by 100 (which is the
total number of questionnaires used). The results are presented in the
graph below

Efficacy of current measures to manage VUCA

120
100
80
60
40
20
0
Continuous Learning Forecasts Insurance Use of ICT Change
Management

Series 1

8.0 Interpretations and Discussion

From the data presented above, a VUCA environment presents the modern
firm with numerous challenges where maintaining competitiveness is
concerned. These challenges are in concord with the perceptions of Robins
and Kilby (2001) who state that VUCA environments present suddenness of
change which firms may find difficult to manage. For example, firms may
fail to learn because of the suddenness of the change. Some changes may be
too major for small firms such as the ones presented by COVID-19 which
halted most economic operations globally in 2020. All the respondents
agreed unanimously that this was the main threat of a VUCA environment
to a firm.

Seventy respondents came up with the same notion that change may be
expensive. Robins and Kilby (2001) are also of a similar view citing that

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there are certain technologies which are expensive to implement even
when demanded by the changes in the environment. For instance, where
firms lack enough proclivity to engage the use of ICTs or to adapt
accordingly, a problem which is being experienced in Zimbabwe and much
of Africa due to economic and financial challenges, when change is desired
it may prove too expensive. Most banks such as NMB, CABS, CBZ and
Steward in 2016 failed to introduce comprehensive ‘Scan and Pay’ systems
based on QR codes which are rapidly being introduced in the region
because they are expensive (Pindula, 2009).

Change may make it hard to perceive competitor’s position after change

(Malcolm, 2009). Four respondents cited this problem since VUCA
environments present communication ambiguity. An organisation may lose
touch with the position of their competitor. This means that certain change
may improve a competitor’s prospects. As such, VUCA environments also
make it harder to predict future potential threats and weaknesses. Even
strengths and opportunities may become less clear (Ibid, 2009). For
example, a merger may prove to be as threatening as a hostile takeover
where a firm’s relative position remains unclear.

Twelve respondents cited the possibility that a firm may have trouble in
organisational learning due to limited skills and adaptivity levels. Simon
and Simon (2011), noted that change is only manageable where learning is
permissible. As such, forty-two respondents stated that change may be
uncontrollable for example the change that was influenced by COVID-19. It
may be difficult to get and retain relevant information when change is too
rapid. There may also be failure to choose appropriate strategies where
numerous options are presented according to thirteen respondents. Simon
and Simon (2011), are of the view that at the centre of these challenges is

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communication failure across vital interfaces which may happen due to the
suddenness in VUCA environments.

9.0 Recommendations

This study recommends a model based on the five strategies which are
currently being implemented globally by firms seeking to manage VUCA
environments. The recommendations are also based on Lewin’s (1987)
views on change management where change training and change
preparedness are vital in managing VUCA environments. These strategies
are continuous learning, the use of forecasts and ICT, insurance and change
management. Continuous learning would ensure that the modern firm does
not lag and can easily take on new strategies to manage new environments.
For instanceFor instance, when COVID-19 struck in full force, some
companies were forced to commit their employees to work from home.
Working from home meant using ICT which some organisations hitherto
had not developed themselves to use. Those firms which had developed
their employees for online operations managed to stay afloat.

A firm must be able to use forecasts such as Compound Annual Growth

Rate (CAGR) to manage not only their finances and liquidity but also to
create contingency strategies in the event of sudden change. Lewin (1987),
argues that it is better to have a poor strategy than no strategy. Such
strategies are created through forecasting and planning. Then over and
above the strategies, firms should ensure their plant, resources and
operations against contingency in order to remain afloat. This can also be
done better using ICT, to research and document findings safely for use
when necessary. ICTs are also vital for conducting market intelligence
where a firm can weigh its strengths, weaknesses, opportunities and
threats visVis a visVis the position of its competition.

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10.0 References
1. (Pindula News, 2008 &2009). www.pindula.com [Accessed 20 June
2020]
2. Albright, J. (2004b). “What is Organisational Change?”
https://study.com/academy/ [Accessed 20/06/2020].
3. Lewin, K. (1987). Principles of Change Management, Third Edition,
Houghton-Mifflin Publishers, New Orleans, United States of America
4. Malcolm, N.L. (2009). “What is Organisational Culture?”
https://gothamculture.com/what-is-organizational-culture-
definition/ [Accessed 20 June 2020].
5. Morseley, C. 2019. What is a VUCA environment? [Online]
https://blog.jostle.me/blog/modern_environments [Accessed 19
June 2020].
6. Robins and Kilby (2001). Elements of a Modern Business
Environment. https://www.ukessays.com/essays/business/
[Accessed 17 June 2020].
7. Simon, B. & Simon, N. (2011)
https://www.ukessays.com/essays/business/ [Accessed 17 June
2020].
8. Simpson, B.G. & Geoffrey, V. (2010). The Modern Business Unit.
Oxford Univ. Press, RSTO1980D
9. Simpson, K. and Martins, B. (2009). “Understanding Organisational
Culture”
https://www.managers.org.uk/~/media/Files/PDF/Checklists/CHK
-232 [Accessed 7 April 2020].

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