November 2001

Welcome to the premier issue of Bizland News!

We welcome ideas, feedback, and yes, even criticism, so get your keyboards clicking and send comments to comments@bizland.co.za. Feel free to send this newsletter on to your friends, family and business associates - and now for the small print which hopefully you won't need to read - removal instructions at the bottom.

We aim to send Bizland News out on a monthly basis, but occasionally if we hear about something so incredible that it can't wait - we may mail you more often, but we aim to be a source of information and inspiration, not irritation!

So let's get down to it…

In this month's issue:

Feature Articles: by Jeremy Chennels of Chennels, Brummer & Associates

Spilling the Beans

In light of the issue of Derivative Misconduct arising out of your silence when the situation requires you to do otherwise, the recent enactment of the "Whistleblower Act" (The Protected Disclosures Act of 2000) is apt.

The `Whistleblower Act' enables employees to disclose information relating to improper conduct and corruption in the workplace without fear of victimisation from either their fellow employees or their employer.

The employee who wishes to make such a disclosure will have to do that to either a legal advisor, an employer, a member of cabinet, the Public Protector or the Auditor General. No protection will be granted if the employee is part of the misconduct or is attempting to conceal his / her involvement in any manner.

The type of information that may be disclosed could pertain to a criminal offence, a failure to comply with a legal obligation, miscarriage of justice and damage to the environment.

Trapped Offside

A question often asked is whether I can set a trap to catch an employee out where I have strong suspicions of dishonesty or theft. In other words, is entrapment legal when there is clear evidence of shrinkage.

In the case of Cape Town City Council v SAMWU the Labour Court made the following observations: was an employee truly led into temptation (i.e. to do something that (s)he would not have done under normal circumstances) or whether a trap in indicative of a propensity to commit crimes or on the methods used by the trappers.

The Criminal Procedures Act provides that the use of traps and 'under cover operations' in order 'to detect, investigate or uncover the commission of an offence' is permissible. Evidence so obtained is admissible provided that the conduct of the trapper or undercover agent 'does not go beyond providing opportunity to commit an offence'. It therefore appears that trapping within certain constraints will indeed be acceptable but be aware of the over zealous trapper!

Bizland News

NEWSFLASH!!! Bizland has acquired funding from the Department of Trade and Industry to the value of R500 000. This funding will be used to develop exciting new applications on Bizland, such as:
- Salesforce Manager (CRM)
- Electronic Timesheets
- Expenditure Claims and Reporting
- e-Accounting Functions

Introducing a new member of staff, Sally Hetherington. Sally joined us in mid September, bringing with her loads of experience in portal management and small business development. Sally holds a degree in English and Psychology from the University of Cape Town, and enjoys all things creative, including writing, crafts and theatre. Sally sits behind the Bizland website, so if you have any inspirations or irritations, email her at webmaster@bizland.co.za.

What's new on the website? We are currently upgrading our existing site to include a number of new features, including a searchable database of articles relating to small business issues and small business links to various organisations that can assist you in your business. We will keep you posted on these developments. We have also recently added world news headlines so that you can easily keep up to date with the latest goings on. We will be adding new features on a regular basis, so keep visiting www.bizland.co.za to keep up!

Success Story

This is YOUR space. We want to know who you are, what annoys, inspires or impresses you in small business, funny stories, advice, or how you got on the road to success. Please share with us and we might publish your stories or comments in the next issue. Send your contributions to success@bizland.co.za - we look forward to hearing from you.

This week's Success Story: Harrah's Entertainment Inc.
We learn how it can be done, even under the toughest circumstances!

The Net as a Lifeline

A tough economic environment makes the Web even more important for companies attempting to cut costs, generate new revenues, and better serve customers.

As America stood still in the wake of the September 11 attacks, casino and hotel operator Harrah's Entertainment Inc. faced a sharp downturn in business. The country was in no mood for a party, and few people were willing to hop on a flight to Las Vegas. Occupancy rates at Harrah's flagship hotel soon dropped by more than 25%. So on September 14, Harrah's launched a small counteroffensive: The company sent out targeted emails to thousands of customers it thought might want to take a trip to the tables and slots. The gambit worked, helping to fill nearly 4000 rooms that otherwise would have gone empty. By September 30, the hotel was back near 100% occupancy. "We were able to get our message out immediately over the Internet," says Harrah's Chairman Philip G. Satre.

The key to Harrah's success: This summer, the company linked its database of 24 million gamblers to its Website and email marketing system. A year ago, Harrah's wouldn't have been able to seize the day. It has long known who the highest rollers are, based on its record of customer habits: Many avid gamblers participate in a rewards program that allows the company to track their playing, using cards that can be plugged into slot machines or presented to pit bosses. Until this summer, though, reaching those players with targeted pitched required bulk mailings via snail mail. Now, when a customer clicks to Harrah's Website from an emailed pitch, the company knows how much the player spends and can offer a tailored deal. The customer can then immediately book the room and a flight to get there, and reserve a seat for the show.

Harrah's beat the house odds. The September 11 attacks instantly made the toughest economic environment in a decade even worse. But for companies such as Harrah's that have spent the time and the money to beef up their Internet capabilities, the sting may not be as bad. With its innovative marketing, Harrah's rebounded more quickly after September 11 than other big casinos in Vegas.

Source: David Rocks from BusinessWeek e.biz, 29 October 2001

Still struggling to understand Capital Gains Tax? Visit www.bizland.co.za and click on the link to read our new guide. Included are links to the return form and evaluation form, as well as useful SARS contact details to help you along.

Next month…
Next month we will be discussing Internet security, so send us your comments or questions about this topic to comments@bizland.co.za.

Until next time…

Piers & Sally

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