CASE STUDY- (From Business Management-a value chain approach by Gideon Nieman and Alf Bennet)
When Eskom had started the shutdown of the Highveld power station in 1958, one of the small towns in the Free State became a ghost town.
The shutdown caused the number of residents to shrink from 2000 to about 463.
Eskom stated that the power station could no longer continue to operate because of the rising labour and maintenance costs.
QUESTIONS:
a. Explain what changing environmental conditions could have caused the shutdown of the power station.
b. Explain from the viewpoint of a retailer, how environmental conditions caused the town to be closed.
c. How do you think the changes in the environment affected the operations of a vegetable farmer?