An entrepreneurial entity’s experience with opportunity realisation

M.Comm. (Business Management)Over the past ten years the insurance industry has been subject to extreme losses due to dual exposure in both underwriting and investments. Financial survival was the number one priority for many insurance firms in the aftermath of the September 11 terrorist attack in America in 2001, the natural catastrophe losses across the USA, and most recently the global financial crisis. Multinational European and North American insurance firms have been forced to focus on core business activities, and this has necessitated improvement of holistic risk and capital management of global and regional operations. Against this evolving microeconomic and managerial backdrop, multinational insurance firms withdrew from the South African insurance market in an attempt to improve financial performance by recapitalising funds to their core operations in Europe and America, and to mitigate their international risk exposure in developing countries. This study explores the phenomenon of how an entrepreneurial entity experienced opportunity realisation within the South African insurance industry when multinational insurance firms withdrew from the South African market. This research employed qualitative case study methodology to illustrate the phenomenon under investigation. Participants of this study included a purposefully selected group consisting of 12 candidates who have been directly involved in the opportunity realisation of the entrepreneurial entity. Grounded Theory analysis allowed for insightful descriptions of opportunity realisation within the South African insurance industry. The empirical evidence suggest opportunity realisation to be impacted by five dominant forces, namely, the South African insurance market, an entrepreneurial entity, opportunity identification, strategic development, and organisational design. Collectively, these five forces constitute the Inductive Opportunity Realisation (IOR) theory. This study focuses on entrepreneurial behaviour to realise opportunities within the South African insurance industry. The IOR theory also highlights the important role of constructive and deconstructive entrepreneurial behaviour in realising opportunities

The valuation performance of mathematically-optimised equity-based composite multiples

Purpose – This paper aims to examine the valuation precision of composite models in each of six key industries in South Africa. The objective is to ascertain whether equity-based composite multiples models produce more accurate equity valuations than optimal equity-based single-factor multiples models. Design/methodology/approach – This study applied principal component regression and various mathematical optimisation methods to test the valuation precision of equity-based composite multiplesmodels vis-à-vis equity-based single-factor multiples models. Findings – The findings confirmed that equity-based composite multiples models consistently produced valuations that were substantially more accurate than those of single-factor multiples models for the periodbetween 2001 and 2010. The research results indicated that composite models produced up to 67 per cent more accurate valuations than single-factor multiples models for the period between 2001 and 2010 which represents a substantial gain in valuation precision. Research implications – The evidence therefore suggests that equity-based composite modelling may offer substantial gains in valuation precision over single-factor multiples modelling. Practical implications – In light of the fact that analysts’ reports typically contain various different multiples it seems prudent to consider the inclusion of composite models as a more accurate alternative. Originality/value – This study adds to the existing body of knowledge on the multiples-based approach to equity valuations by presenting composite modelling as a more accurate alternative to the conventionalsingle-factor multiples-based modelling approach.Propósito – Este documento intenta examinar la precisión de la valoración de los modelos compuestos en cada una de las seis industrias clave en Sudáfrica. El objetivo es determinar si los modelos de múltiplos compuestos basados en la equidad producen valoraciones de capital más precisas que los modelos de múltiplos de factor único óptimos basados en la equidad. Diseño/metodología/enfoque – Este estudio aplicó la regresión de componentes principales y varios métodos de optimización matemática para probar la precisión de la valoración de los múltiplos compuestos basados en capital frente a modelos múltiples de factor único basados en acciones. Hallazgos – Los hallazgos confirmaron que los modelos de múltiplos compuestos basados en la equidad produjeron sistemáticamente valoraciones que fueron sustancialmente más precisas que las de los modelos de múltiplos de un solo factor para el período entre 2001 y 2010. Los resultados de la investigación indicaron que los modelos compuestos produjeron hasta un 67 por ciento de valoraciones más precisas que los modelos de múltiplos de factor único para el período entre 2001 y 2010 lo que representa una ganancia sustancial en la precisión de la valoración. Implicancias de la investigación – La evidencia por lo tanto sugiere que el modelado compuesto basado en la equidad puede ofrecer ganancias sustanciales en la precisión de la valoración sobre el modelado de múltiplos de un solo factor. Implicancias prácticas – A la luz de que los informes de los analistas suelen contener varios múltiplos diferentes parece prudente considerar la inclusión de modelos compuestos como una alternativa más precisa. Originalidad/valor – Este estudio se suma al conocimiento existente sobre el enfoque basado en múltiplos para las valoraciones de capital al presentar el modelado compuesto como una alternativa más precisa al enfoque convencional de modelado de factor único basado en múltiplos

Precision, Consistency and Bias in Emerging Equity Markets

The use of multiples is a popular approach employed by analysts to perform valuations. These multiples are based on optimal value drivers, the valuation performance of which should be underpinned by empirical findings from carefully designed, unbiased research initiatives. This paper firstly investigates the risk of biasing the design of market-based studies which aim to test the valuation performance of individual value drivers. The evidence revealed that, when testing the valuation performance of value drivers, there is an inherent risk of biasing the design of a study of this kind, and therefore, its outcome. Secondly, the paper presents evidence in support of the consistency of previous research findings regarding the valuation performance of individual value drivers in the South African market over the period 2001-2010. To this end, the paper introduces a new approach for the analysis of multidimensional equity valuation research data in the form of principal component analysis (PCA)-based biplots. Thirdly, the paper provides evidence that multiples-based modeling seems to be biased to the downside, which is an important consideration for analysts who choose to adjust their valuations outside of these models

Radical Islamic fundamentalism in South Africa. An exploratory study

The wave of Islamic militancy that is currently sweeping the world and which is variedly referred to as radical Islamic Fnndamentalism, Islamism, Islamic Resurgence, and the world-wide Jihad movement has its remote origins in the Muslin Brotherhood movement in Egypt in the late 1920s. During the early years of its existence the Brotherhood advocated the revitalisation of Islam as part of the anti-colonial movement among Egyptians. The Brotherhood soon spread to other parts of the Arab world where it acquired a more temporal and a less apolitical character as it became more deeply involved in the growing anti-colonial struggle that followed the end of the Second World War in 1945. As a result, by the early 1950s the Brotherhood's welfare activities had become over- shadowed by its commitment to mainly political objectives

The Impact Of Industry Classification On The Valuation Accuracy Of Multiples In The South African Capital Market

Although multiples are used extensively in practice, empirical guidance in emerging markets is limited in this regard. In terms of valuation accuracy, the impact of peer group selection by way of industry classification in emerging markets has not yet been substantiated by research. This paper investigates the valuation performance of multiples over various industry classifications when valuing the equity of South African companies listed on the Johannesburg Stock Exchange for the period 2001 to 2010. The empirical results revealed that peer group selection based on a narrower industry classification could, on average, increase valuation accuracy by as much as 19.60%

A Bayesian approach for inferring the dynamics of partially observed endemic infectious diseases from space-time-genetic data

We describe a statistical framework for reconstructing the sequence of transmission events between observed cases of an endemic infectious disease using genetic, temporal and spatial information. Previous approaches to reconstructing transmission trees have assumed all infections in the study area originated from a single introduction and that a large fraction of cases were observed. There are as yet no approaches appropriate for endemic situations in which a disease is already well established in a host population and in which there may be multiple origins of infection, or that can enumerate unobserved infections missing from the sample. Our proposed framework addresses these shortcomings, enabling reconstruction of partially observed transmission trees and estimating the number of cases missing from the sample. Analyses of simulated datasets show the method to be accurate in identifying direct transmissions, while introductions and transmissions via one or more unsampled intermediate cases could be identified at high to moderate levels of case detection. When applied to partial genome sequences of rabies virus sampled from an endemic region of South Africa, our method reveals several distinct transmission cycles with little contact between them, and direct transmission over long distances suggesting significant anthropogenic influence in the movement of infected dogs

Assessment of the physical activity, body mass index and energy intake of HIV-uninfected and HIV-infected women in Mangaung, Free State province

Published ArticleDeclining levels of physical activity at workplaces, during leisure time and when travelling, accompanied by increasing exposure to the mass media, are major determinants of the global obesity epidemic. This study aimed to assess physical activity, the body mass index (BMI) and energy intake of human immunodeficiency virus (HIV)-uninfected and HIV-infected black women in Mangaung. Method: A random sample of 500 black women was selected in Mangaung. Physical activity levels, dietary intake and BMI were determined in younger and older women, aged 25–34 and 35–44 years, respectively. Results: Of the 488 women who qualified for participation, 61% of the younger women and 38% of the older women were HIV-infected. Low physical activity levels were reported in most women, and more than 50% were overweight or obese. The BMI of HIV-infected younger women with low physical activity levels (24.9 kg/m2) was significantly lower than that of the HIV-uninfected younger women (27.2 kg/m2) (p-value 0.02). The energy intake of older HIV-infected women with low physical activity levels was significantly lower (10 090 kJ) than that of the older HIV-infected women in the normal to high physical activity category (14 519 kJ) (p-value 0.03). Conclusion: A more active lifestyle and energy-reduced diet that focuses on food quality could partially address BMI parameters in HIV-uninfected women. Safeguarding a lean BMI in HIV-infected women, by increasing physical activity levels while maintaining current energy intake, with an emphasis on healthy eating practices, could support quality of life

The relationship between body mass index, energy intake and level of physical activity of HIV positive women (25-44 years) in Mangaung

Published ArticleObjective: To determine the relationship between body mass index (BMI), energy intake and levels of physical activity of HIV negative and HIV positive women. Design: Cross sectional study. Methodology: A random sample of 500 pre-menopausal women within the two age group categories of 25-34 and 35-44 years was selected. Data on physical activity was obtained using an adapted Baecke questionnaire and categorized into low, medium, and high levels of physical activity. Weight and height were used to calculate BMI. Dietary intake was determined by means of a standardized food frequency questionnaire. Results: Sixty-one percent of younger women and 38% of older women were HIV infected. The vast majority of women (91%) had low levels of physical activity, while only 9% of the sample had physical activity levels that fell within the normal to high category. More than 50% of respondents were either overweight or obese (BMI above 25 kg/m2). BMI of HIV positive younger women was, however, significantly lower than that of HIV negative women. Median energy intakes were high (more than 10 000 kJ) for both HIV positive and HIV negative women. Conclusions: Reverting to a more traditional lifestyle, including diet and physical activity, could assist in addressing unfavorable BMI parameters of these women and improve health status and quality of life of HIV infected women

Phonological awareness and the minimising of reading problems: a South African perspective

In South Africa and in many other countries there is a concern that many learners in our schools do not have well developed reading abilities. Research in overseas countries has indicated that phonological awareness as a pre-reading skill influences the development of reading abilities. In order to verify overseas research, the authors undertook a research project to determine the relation between phonological awareness and reading success of a group of young learners in three primary schools. The results of the research findings verified overseas research in which a meaningful relation between preschoolers' phonological awareness and later reading success was indicated. Keywords: phonological awareness, phonological structure of language, emergent literacy, reading abilities, reading success Journal for Language Teaching Vol. 39(2) 2005: 210-22