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27 August 2021 | Story Lacea Loader | Photo Supplied
Dr Millard Arnold, UFS Council Member and Senior Consultant at Bowman Gilfillan.

Dr Millard Arnold, Council Member of the University of the Free State (UFS) and Senior Consultant at Bowman Gilfillan, recently contributed to a noteworthy book on leadership and a book on responsive universities. His experience as a journalist and later as a seasoned leader and keynote speaker positioned him well to participate in the book: The Book Every Upcoming, New, and Seasoned Leader Needs to Read – Lessons From Leading Business Minds and Thought Leaders. 

From surviving to thriving

Incorporating collective leadership wisdom for both the leaders of tomorrow and the leaders of today, the book is full of lessons, insights, pep talks, advice, and direction for building your own style and approach to great leadership, and not to shy away from the ecstasy (and sometimes agony) of becoming a significant leader. Packed with the contributions of 48 authors, the book is the antidote to the lack of mentorship in the field. Authors include Brand Pretorius, Edwin Cameron, Marnus Broodryk, Nyimpini Mabunda, and Roze Phillips – to name a few. 

Giving problems to solutions

Dr Arnold’s contribution focuses on fishing out the valuable leadership principles from the sea of leaderships that we are drowning in. “I have found myself in positions of leadership and have had to develop a number of thoughts on leadership which have helped guide me in determining how best to lead,” he writes. This guided him to discover the true essence of leadership, which is problem solving. He asserts that “if there are no difficulties to overcome, no problems to resolve, the leadership is unnecessary”. Leadership has its genesis in problems, he believes. 

Effective leaders make things happen

Among the profound insights that Dr Arnold shares, he highlights the notion that great leaders must understand the problem and have the vision to see the solution. Inevitably, this necessitates the leader to take some risks and to persuade others to get on board. This is only possible if the leader has integrity and ultimately deliver on the promise made. He advises leaders to “ask good questions, listen to the answers, assess the reality, be empathic, and spend a great deal of time on self-reflection”.

Universities must remain relevant 

Dr Arnold also contributed a chapter titled, Poverty, Inequity and Decolonisation: Are Business Schools Responsive to the Challenge? in a book by Chris Brink, The Responsive University and the Crisis in South Africa. The book brings together contributions on the issue of responsiveness from several international university leaders. Dr Arnold’s chapter presents an overview of the impact of colonialism and capitalism on the African mind set and stresses how different South African business schools have responded to the task of being responsive to the challenges confronting the country. It argues that, if carefully managed, business schools can, and should be, vehicles to promote and facilitate positive and constructive change.

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher
2014-09-01

 

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail


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