OBS 220 CASE STUDY FOR THE JUNE AND JULY EXAM FOR 2021. CAPITEC CASE STUDY 2 FOR SUPPLEMENTARY EXAM FOR 2021 PDF

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OBS 220 CASE STUDY FOR THE JUNE AND JULY EXAM FOR 2021. CAPITEC CASE STUDY 2 FOR SUPPLEMENTARY EXAM FOR 2021...

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CAPITEC: FROM NEW KID ON THE BLOCK TO THE BIG BOSS

In 2019, at the prestigious Sunday Times Top 100 Companies Awards, Capitec CEO Gerrie Fourie was named the 2019 Business Leader of the Year. Although Gerrie Fourie had been with Capitec Bank since it was established in the year 2001, he had only been the CEO for five years prior to receiving the award. Through his leadership Capitec has developed into the largest bank in South Africa, with more than 13 million clients. Capitec is dominating the digital sphere as well, with more than 6.5 million digital clients (TimesLive, 2019). In the beginning of 2021, Capitec boasted a client base growth of 14%, with an average of 160 000 new clients every month (Business Tech, 2021).

Capitec’s growth can be credited to the company’s strategy that combines the bank’s values and modern insights. Capitec has focused on having state-of-the-art infrastructure as well as incorporating a strong digital component. The bank’s branches have a triangular layout to enable to consultant and client a view of the computer at the same time, this promotes transparency and trust between the bank and its clients (The CEO Magazine , 2019) .

Capitec is deliberate in how it operates. The bank’s slogan “simplicity is sophisticated” influences every decision, from the design of the branches to the decision to serve rural, remote communities (The CEO Magazine , 2019). In his acceptance speech for the Sunday Times Top 100 Business Leader of the Year award, Fourie said: “I’m honoured to say that it’s a great privilege to receive this award, but I actually want to dedicate this [award] to the whole Capitec team, not only my executive team but the 14,000 people who actually work for Capitec. I think what we created is not me, it’s still about the team.” (TimesLive, 2019) . Fourie further added that “ No man is an island and an award like this comes with the dedication and support of my wider team who diligently work alongside me to create the Capitec of tomorrow” (Ana, 2020). Fourie describes his leadership philosophy as ‘understanding the why’. “Most theories about leadership are needlessly complicated. Ultimately, to keep people inspired, all you have to do is make sure they understand the reason behind what they’re doing. The moment a team member understands why – what is expected of them when it must be done, and how it fits into the functioning of a large organisation – they

will do it with passion, passion comes from the understanding that you’re really making a difference,” Gerrie says (The CEO Magazine , 2019). Capitec bank is committed to serving its clientele base, and Gerrie Fourie credits defining the company culture to making this task easier. Fourie notes that Capitec’s main goal is not to drive up the share price but instead “it’s all about delivering on the Client’s needs.” Capitec does not limit its impact to satisfying client’s needs but is also involved in serving the community at large. In his time as CEO, Fourie has expanded the company’s corporate sustainability initiatives from just financial literacy programs for clients and bursaries to offering leadership and managerial training programs to teachers and principals in underprivileged schools (The CEO Magazine , 2019).

In his acceptance speech Fourie revealed that he dreamt of being an entrepreneur and had not planned on being a CEO or a banker, this while stressing the importance of passion and dreaming big. “But for every dream you need to make certain that you’ve got plans and you execute them and understand where you are going”, said Fourie (TimesLive, 2019). The Sunday Times Top 100 award recipients are nominated and selected by other business leaders in the same field. “It is the ultimate accolade to be selected by one’s peers for such a prestigious award, and Gerrie Fourie is very deserving. His commitment to the Capitec brand is only surpassed by his determination to accelerate growth in SA, in order to stimulate employment opportunities. We’re proud to recognise him for his grit and determination, and the leadership he provides”, said Sunday Times editor Bongani Siqoko (TimesLive, 2019). Along with an award for its CEO in 2019, Capitec collected an award for The Sunday Times Top 100 Company of the Year. This award was acquired based on the performance of Capitec’s share prices on the Johannesburg Stock Exchange over five years. Capitec stock prices have shown immense growth at a compound growth rate of 40.9%. This means that an investment of R10 000 in 2014 would have delivered R55 491 in 2019 (TimesLive, 2019). Capitec’s growth is a testimony of how excellent leadership, a clear vision and defined culture can propel a company to great heights! References Ana,

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