Khalulu Bakery is a family-owned bakery and deli situated in KwaPhili, a small, friendly, multi-racial mining town in the North West. Since opening for business in 1987, Khalulu has grown from selling vetkoek and scones out of a food truck with three employees, to becoming a fully-fledged bakery that supplies local spaza shops and the cafeterias of several mining firms in the area. The bakery now employs 30 permanent and 40 fixed-term staff and is indispensable in a community where poverty and unemployment are rife, with only a few opportunities for casual work in the mines. The prices, consistency and quality of Khalulu's baked goods have made them a staple in KwaPhili, and they enjoy loyal support from their customers. However, in recent times, management has noticed a decline in profits. Upon further investigation, it appears that the losses are due to very high levels of theft. Khalulu Bakery employees who cannot be identified are pilfering everything from flour, sugar and eggs to baked goods. This breach of trust has the potential of closing a business that has been in operation for 32 years and through which many families survive. The closure of Khalulu would devastate an entire community. Management decides to form a committee of external labour relations experts to advise them on how to deal with the disciplinary challenge that this theft presents. The committee consists of Mr Aprils, Mrs Mbatha and Mr van Niekerk. They all have different approaches to dealing with the disciplinary process, owing to their respective management philosophies. They agree to investigate this matter independently and meet in two weeks' time to consolidate a report based on their findings. After two weeks, the committee members meet and present their findings and recommendations one by one. Mr Aprils attributes the high level of theft to lack of internal controls and stringent rules to regulate the bakery. He argues that, unless such controls are put in place and there is cooperation between the bakery and the police to deal decisively with implicated employees, this high level of profit loss will not be reduced or completely eradicated in the foreseeable future. Mrs Mbatha insists that the best way to address this challenge is by suspending the hardline, penal disciplinary process in favour of a corrective approach. She suggests that the close-knit community of KwaPhili is a resource and ally. She highlights that families in this community depend on the bakery for employment and for the supply of baked goods and that no one would want to see the demise of the business. As such, she recommends that the matter be dealt with by the community, since it encourages this crime by buying some of these goods from employees of the bakery. The idea is that the employees, their families and the greater community of KwaPhili should be made aware of the theft and its potential consequences. All these stakeholders must be "conscientised" about Khalulu Bakery's contribution to the community of KwaPhili (employment, lifestyle and charity work). The very real danger of Khalulu having to shut down must be emphasised to get buy-in from the stakeholders in protecting the bakery. Such protection would come in the form of whistle-blowing, refusing to buy the stolen goods and self-regulation (where the older stakeholders reprimand those known for stealing from the bakery, without management necessarily being involved). Mrs Mbatha suggests that the punitive approach should be used as a last resort and that making the community a partner in the disciplinary process would reap favourable results in the long term, since people conform to rules if they believe the system also benefits them. The principle should be about inclusive dialogue between all the role-players. Mr van Niekerk, who is also a family friend with a degree in sociology and law, suggests that the problems of Khalulu should be viewed in context. He argues that, given the South African historical background, employers are generally perceived as being the symbols of oppression and exploitation; as such, Khalulu Bakery employees do not believe that the relationship between the company and themselves is mutually beneficial. Hence, some of these misconducts, particularly theft, stems from an "us and them" mindset. He argues that any suggestion to instil workplace discipline will be viewed as a reflection of power relations. He suggests that the solution to these high levels of theft would be to allow employees to be more vocal and involved in the day-to-day running of the bakery, and a wage increase.

QUESTION: Briefly explain the impact of external factors at the Bakery (20 Marks) Explain, with examples, the macro environmental factors impacting on the Bakery Answer to not exceed 2.5 typed pages