Concepts to Understand in the Leadership

combined with poor local interest and global capacity.

To accomplish an upper hand of your competitors, the strategy needs to be consistent with the organisation's internal environment and its external environment (macro- and industry environments). A portion of the key drivers affecting the Group's sectoral and geographic markets are discussed below: The economic outlook for South Africa remains subdued as a result of sustained weakness in the global economy and factors unique to the domestic economy, such as policy uncertainty and labour instability.

The prolonged delay in public sector infrastructure investment and the downturn in commodity prices - which has led to the cancellation or postponement of private sector capital expenditure in the mining industry - have adversely impacted many of Aveng's key sectors.. This has expanded challenge for a predetermined number of accessible ventures, putting more weight on net revenues.

External environment: As the Group works crosswise over various parts and geologies, it is an influenced by financial elements outside the ability to control of Aveng.

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The South African economy, mining and steel divisions estimated to stay curbed, adversely affecting the organisations working inside these conditions. There are, nonetheless, infrastructure inside Southeast Asia, New Zealand and Australia.

· Rightsized the Group by improving the overhead and adjusting ability to accessible chances

· Maintaining key partner connections empowers stakeholder relationships and winning of new work in a discouraged cycle

· Closed non-performing units and set different manufacturing plants on consideration and maintenance

· Adapted the Group's way to deal with offering and guaranteeing that offered edges are supportable

· Greater spotlight on item type and range of products

· Renewed spotlight on efficiencies and productivities

· Improve strategic procurement to lower cost base.

Market review: Market audit Aveng works predominantly in South Africa and different markets in sub-Saharan Africa, Australasia and Southeast Asia. Working conditions in these business sectors stay troublesome due to the supported worldwide monetary downturn and serious challenge. Foundation venture South Africa.

The South African development industry keeps on being impacted by low levels of public sector in major infrastructure programs and the supported downturn in product costs, despite the fact that Aveng has profited from development openings in the business, private and human services building sectors.

Public sector expenditure on transport, energy and water infrastructure is adding to an expansion in opportunities in these sectors as the government addresses inadequate maintenance of transport infrastructure and undersupply of potable water and energy facilities. Australasia and Southeast Asia

The completion of major oil and gas projects in 2015 marked the end of a decade-long resources boom in Australia. This has been partially offset by increased government expenditure on transport, power and water infrastructure. The New Zealand construction market remains steady, with road and water projects driven by urban developments in Auckland and the Christchurch rebuild. Urbanisation and population growth continue to underpin growth in Southeast Asian infrastructure markets which have also been impacted by a decline in mining and oil and gas opportunities.

Mining: The worldwide mining industry stays under extensive weight. In South Africa, this has brought about various mining contract scratch-offs, scope decreases and demands for edge limits at proceeding with tasks. This decrease seems to have settled yet mining contractual workers are probably not going to encounter the advantages of a recuperation in the business for another 12 to 18 months.

Manufacturing: The manufacturing business industry has been impacted by moderate interest from the construction and mining sectors and reduced expenditure on rail maintenance. Aveng has expanded into new geographic and product sectors to mitigate weakness in its traditional markets. The South African steel market has been unfavourably affected by lower priced imports from China, coupled with poor residential interest and excess capacity in global markets. Volumes balanced ut in the second 50% of the year as international prices increased but project opportunity in the domestic market stays stifled.

3.3 Leadership within the organisation

Top down management approach. Top-down associations don't include subordinates in planning, rather, the executives or management produces the organisation vision, mission, key objectives and plans and afterward imparts these to the positions below. The front-line define the work and mapped the way forward and identified required resources and roles, put structures in place, plan, organize and monitor.

This approach can experience many of the flaws of autocratic leadership, with difficulties in motivating and retaining staff. Leadership has power over the team, with the members just accepting the status quo with little or no opportunity to make suggestions, even if these would be in the team or organisation's interest. A bottom-up context in managing a project plan, for instance, helps an owner incorporate practical information that could have been overlooked.

One practical example of the analysis in the vital administration of New Clicks Holdings where for David Kneale, head of New Clicks Holdings, achievement is 10% technique and 90% execution.

In bringing a strategy to life, top-level executives need to demonstrate strategic leadership and authority. This means that they need to be able to have the capacity and be able to think strategically, be emotionally intelligent, have a range of behaviours at their disposal (behavioural complexity), and have the emotional intelligence and wisdom to apply the right combination of behaviours at the right time, the capacity to apply both value-based and transformational leadership, and the capacity to apply the reasoning of African leadership. In the Aveng leadership an intensive condition process is put in place to assess the leadership and skills required at each operating group and to develop action plans to establish leadership gaps, included is a reward system and transformation needs within the Group.

3.4 Problem identification and Impact

Analysing the Aveng case study it became apparent that there were many challenges that Aveng Limited is faced with. The major problems the company encountered is with the Long term sustainability structure, profitability, focus on their core business. For them to be able to take full advantage of their competitive edge, they need to improve their performance and profitability. Aveng needed to make corrective action to the problems identified and outlined above.

To achieve this, the organisation needs to sustain and integrate:

· Leadership performance,

· Talent and hiring performance,

· Team performance,

· Business planning performance,

· Sales performance and

· Marketing performance into its strategies.

The manner in which strategic leaders respond to, and manage economic, social, and environmental relationships, and how they engage with their stakeholders, has a direct impact on the organisation's long term success and its ability to create value, that has a sustainable impact on employees, Social and relationships and Economic and Environmental impact. The Aveng group needs to maintain and have a strong focus on improving liquidity headroom throughout their strategic planning, control and implementation.

A prescriptive strategy is one whose objective is defined in progress and whose main elements have been developed before the strategy commences." Such an approach usually starts with an analysis of the outside environment and the resources of the company. The objectives of the organisation are then developed from this. There then follows the generation of strategic options to achieve the objectives, from which one (or more) may be chosen. The chosen option is then implemented.

In this case Aveng chooses to focus only on the Aveng's strategies which is being executed and implemented in three phases:

· Recover and stabilise

· Position for profitable growth

· Realise growth and sustain profitability

In the Prescriptive Strategic Processes there are commonly major difference between designed and a realised strategy. Rigid Planning in a dynamic and turbulent business environment and can be uncreative. The loyalty to plans may mean missed business opportunities. It is possible and better to go without the short-term benefit in order to obtain the long-term good. The Aveng executives has the information and authority to choose between options and it is overly prescriptive because the business environment can be very disordered and complex.

The Strategic Management Process consists of a series of decisions about the organisation's strategic direction, strategic planning, and strategy implementation, facilitated by strategic decision enablers that include business and competitor intelligence, and the ability to be innovative.

Strategic Planning is not just a vision, but more of an assessment and allocation of its core competencies became clear. The firm believes in the approach that what they can do, they do well. Planning is done over a long term, taking into account the development and changes in the processes involved to produce a product.

Failure is also taken into consideration and the risks reductions are built around them

The most important facet of the planning is that the resources rely upon each other and divisions of the organisation rely on co-operation from each other.

Risk problems in Aveng operates in complex environments where risk and opportunity are inherent in all of our business activities; therefore, it is impossible to completely eliminate risk.

The Leadership which is a simple definition of the ability and willingness to take ownership of the organisation or take the portfolio of the organisation that one is charged with to manage, with a combination of a fundamental drive to do what is best for the company. All leaders need to consider what is possible in terms of change, just as much as what is beneficial. The company's executives do not necessarily have unconfined power, competition is healthy in organisations, except when unhealthy conflict and political schemes happens within the change. The first concept to understand in a leadership role is differentiating between a leader and a manager because they are not equivalent; a leader may manage but a manager is not necessarily a leader.

An intensive continuous process is in place to assess the leadership and skills requirements at each operating group and develop action plans to identify leadership and skills gaps, including reward systems and the transformation needs of the Aveng Group. Some of the Aveng leadership focus areas is to maintain focus on recruitment and the retention strategy. They had to address matters raised by employees in the Aveng culture survey to continue training and upskilling staff within the organisation.