An assessment of own revenue management for financial sustainability of the Eastern Cape municipalities
- Authors: Majikijela, Vuyolwethu
- Date: 2018
- Subjects: Revenue management , Municipal government -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape -- Finance , Municipal government -- South Africa -- Eastern Cape -- Cost effectiveness , Municipal services -- Finance
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/61445 , vital:28027
- Description: The purpose of the research is to assess the financial viability of municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient thus cost benefit theory emphasises that municipality must adopt cost recovery revenue management. The application of cost recovery revenue management requires that municipalities take into account internal and external revenue management challenges that will be factored on user charges. Cost recovery also requires governance to lead the process through capacitation, transparency and communication with all stakeholders. This research highlights that municipalities in the province have not matured to a level wherein they are able to adopt cost recovery revenue management because of prevalent external revenue management challenges caused by high unemployment rate in the province and the slow economic growth. Municipalities in the province are thus financially unsustainable. This research therefore proposes that a phase in approach to cost recovery should be adopted in line with the changes in unemployment and economic growth. Increased transparency and consultation with intergovernmental relations should also be promoted to enable financial sustainability of municipalities in the province.
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- Date Issued: 2018
Airline revenue management performance measurement of South African Airways origin-destination revenue management
- Authors: Githiri, Duncan Wanjau
- Date: 2017
- Subjects: Revenue management , Airlines Finance , Performance Measurement , Airlines Rates Mathematical models , South African Airways
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/59188 , vital:27455
- Description: Revenue Management (RM) in the airline industry is the practise of selling fixed capacity as a service over a finite time horizon. The market is characterised by the customers’ willingness to pay different prices for the service. This creates the opportunity to target different customer segments and use price differential to attain the optimal passenger fare mix to maximise revenue. The aim is to maximise revenue and an airline can expect revenue increase of between 3 to 7 percent with the successful implementation of a Revenue Management system. The question of whether the revenue increase can be attributed to the RMS is crucial in determining its level of success and validating the optimisation strategy applied (Rannou and Melli, 2003). South African Airways (SAA) migration from Leg-based optimisation to Origin-Destination (O&D) network based revenue management optimisation created the opportunity for this study to measure and evaluate the RMS performance. Revenue performance measuring tools using inventory systems data to measure RMS performance, ASK (Available Seat Kilometre), RASK (Revenue per Available Seat Kilometre), CASK (Cost per Available Seat Kilometre), RPK (Revenue Passenger Kilometre) and cabin factor yield. The limitations relating to the performance measuring tools utilising inventory system data, is the inability for continuous measurement and the isolation of the impact to revenue due to the RMS on its own. In seeking to gauge the performance of the O&D optimisation, the Revenue Opportunity Model (ROM) is applied. ROM is a post departure measuring tool utilised to continuously measure and isolate the contribution of the RMS on SAA’s O&D network. The revenue opportunity achieved versus the potential revenue was assessed. A revenue comparison of the airlines 2014 and 2015 financial year is performed. The results of the analysis showed the O&D optimisation yielded positive revenue capture on routes that applied the correct optimisation strategy. Recommendations on the optimisation strategy to be applied on routes having average or low revenues captured are presented. The aim is to provide the SAA revenue management department with tangible solutions that would result in increased revenue for the SAA network.
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- Date Issued: 2017
A critical analysis of the reference pricing tool used by SARS to address undervaluation of imported clothing
- Authors: Mansoor, Younus Ahmed
- Date: 2014
- Subjects: Transfer pricing -- Taxation -- South Africa , Tariff -- Law and legislation , Customs appraisal , Revenue management
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:8965 , http://hdl.handle.net/10948/d1020755
- Description: The South African Revenue Service has since 2009 introduced “reference pricing” as a tool to detect undervaluation of customs values of imported clothing and textiles. The term “reference pricing” is not defined in the Customs and Excise Act No.91 of 1964 which is the legislation that governs the importation of goods into the Republic of South Africa. The mandate of the South African Revenue Service, amongst others, is to facilitate legitimate trade. By applying the reference pricing guidelines the South African Revenue Service will target all importers who declare customs values which are less than the reference price for a targeted tariff heading associated with an item of clothing or textile. The Customs and Excise Act No.91 of 1964 is clear in that the transaction value which is the price paid or payable for the imported goods shall be the value used for customs duty purposes. The Customs and Excise Act No.91 of 1964 also requires that the interpretation of the sections 65, 66 and 67 of the said Act shall be subject to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Valuation Agreement). Part I of the Valuation Agreement deals with the rules for customs valuation. Article 17 of part 1 allows for customs administrations to satisfy themselves as to the truth or accuracy of any statement, document or declaration presented for customs valuation purposes. The Technical Committee on Customs Valuation of the World Trade Organisation decided the following in so far as Article 17 of the aforesaid agreement is concerned: “1. When a declaration has been presented and where the customs administration has reason to doubt the truth or accuracy of the particulars or of documents produced in support of this declaration, the customs administration may ask the importer to provide further explanation, including documents or other evidence, that the declared value represents the total amount actually paid or payable for the imported goods, ....” It would appear that the South African Revenue Service is using reference prices as a tool to support its reason for doubting the truth or accuracy of the declared customs values. The indiscriminate use of reference pricing, it is submitted, affects legitimate trade adversely. This treatise provides an understanding of how the customs value should be determined in terms of the Customs and Excise Act No.91 of 1964 and the Valuation Agreement. It then provides a background to reference pricing and how reference pricing will be used to detect undervalued imports of clothing and textiles, the advantages and disadvantages of using reference pricing and a comparative analysis of the approach adopted by the Mexican Tax Administration Service in so far as the use of reference pricing is concerned. It was established that the reference price cannot replace the customs value of an imported clothing item as the customs value is based on the price actually paid or payable for it and not on some arbitrary or fictitious value. The reference price can only be used as a tool to identify importers that are possibly undervaluing the customs values. The disadvantages far outweigh the advantages of using reference pricing. The treatise further provides a background to the use of a valuation database as a risk assessment tool and compares this to the use of reference pricing. The use of reference pricing and its impact on trade facilitation is then discussed as well as whether the use of reference pricing is consistent with the risk management principles as discussed in the World Customs Organisation Risk Management Guide. It was established that the South African Revenue Service has not disclosed the basis of arriving at the reference price per tariff heading that it targets and the use of reference pricing is not sanctioned by any international guideline or agreement. It was also established that the use of reference pricing targets compliant importers unnecessarily and this practice goes against the principles of trade facilitation. The use of reference pricing can be used as a tool to detect undervalued imports of clothing but should not be used as a basis to stop every consignment of clothing simply because the customs value declared is less than the reference price. It should not be used as a stand-alone tool but rather enhanced further with the recommendations provided. In the final analysis, recommendations are provided which seek to enhance the reference pricing mechanism and to further identify and exclude compliant importers and limit the use of reference pricing to target non-compliant importers who undervalue the customs value of imported clothing and textile items.
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- Date Issued: 2014
Design and implementation of a network revenue management architecture for marginalised communities
- Authors: Tarwireyi, Paul
- Date: 2007
- Subjects: Community development -- South Africa -- Eastern Cape , Computer network architectures -- South Africa -- Design and construction , Computer network protocols -- South Africa -- Eastern Cape -- Design and construction , Revenue management , Computer networks -- Social aspects
- Language: English
- Type: Thesis , Masters , MSc (Computer Science)
- Identifier: vital:11374 , http://hdl.handle.net/10353/72 , Community development -- South Africa -- Eastern Cape , Computer network architectures -- South Africa -- Design and construction , Computer network protocols -- South Africa -- Eastern Cape -- Design and construction , Revenue management , Computer networks -- Social aspects
- Description: Rural Internet connectivity projects aimed at bridging the digital divide have mushroomed across many developing countries. Most of the projects are deployed as community centred projects. In most of the cases the initial deployment of these projects is funded by governments, multilateral institutions and non-governmental organizations. After the initial deployment, financial sustainability remains one of the greatest challenges facing these projects. In the light of this, externally funded ICT4D interventions should just be used for “bootstrapping” purposes. The communities should be “groomed” to take care of and sustain these projects, eliminating as soon as possible a dependency on external funding. This master thesis presents the design and the implementation of a generic architecture for the management of the costs associated with running a computer network connected to the Internet, The proposed system, called the Network Revenue Management System, enables a network to generate revenue, by charging users for the utilization of network resources. The novelty of the system resides in its flexibility and adaptability, which allow the exploration of both conventional and non-conventional billing options, via the use of suitable ‘adapters’. The final goal of the exploration made possible by this system is the establishment of what is regarded as equitable charging in rural, marginalized communities - such as the community in Dwesa, South Africa.
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- Date Issued: 2007