Background and Context
Almarai is a great leading business for manufacturing food and beverage products and distributing them in the Middle East. It is also considered as being the largest integrated dairy company in the world. The company was established in 1977 to be recognized by customers of the Arab world as of high quality. The company depends on a strong quality culture that includes all areas such as management, the Board of Directors decisions, farming processes, manufacturing and production, products' distribution and the company's human resources development. In Riyadh, KSA, lies the company's main headquarters and there are many branches in countries of the MENA that presents different products of different areas related to food and beverage such as juice, dairy, bakery, infant nutrition and poultry. The current project is a strategic plan covering Almarai background, its vision and mission, environmental scan of the company, SWOT analysis and stakeholder analysis. The project presents an idea about the theoretical background of strategic management in addition to the practical application on Almarai Company.
The company has a big market share and it has an unrivalled reputation synonymous referring to its excellence and quality in products' delivery across the area where customers can find its products. In the gulf region, Almarai has the power that it employs more than 40,000 employees that are servicing about 50,000 retail outlets with a turnover that was more than US$3.36 billion in 2015.
Vision and Mission statements
Vision
The company has a vision which is to present superior food and beverage products for customers to be their preferred choice in the market.
Mission
The company has a mission that is to provide customers with food and beverage products that are of high quality to support and enrich their lives every day.
Core Values
- Innovative: Delivering new ideas, pre-empt market changes in addition to providing the consumers with enhancements for their shopping basket is at the core of Almarai ‘Quality you can trust’ promise.
- Excellence: Maintain high excellence levels in all processes of the company.
- Respect: Ensuring respect for all the business stakeholders.
- Passionate: Being passionate with the consumer through adapting ideas that can help achieve the consumers' aspiration and meet their needs.
- Sharing: Sharing different ideas, opinions and views with the consumers via different communicative channels.
Environmental Scan
SWOT Analysis
Strengths
Almarai is a market leader in food, beverage and dairy market in the GCC, Middle East and MENA areas. It is characterized with high quality products and the company is ranked on the list of Forbes as one out of 2000 strongest global companies in the world. The company has specific products such as butter and long life milk that ranges from full, half to skimmed cream milk. It depends on strong distribution network and has suitable climatic conditions that help the company keep their products safe and healthy. It also has strong market share of %60 in 2010.Its supply chain is integrated and its human resources are strong. It uses high quality technology that is advanced and updated. It has less wasting percentage than other market rivals. The company has mergers and acquisitions such as Louisene and others.
Weaknesses
Much operating costs affect the company. The company also depends highly on dairy products and juices rather than other products. Importing many of the company's raw materials weakens its position in the market in addition to working under one name only. The company is affected by employee turnover in many countries where the company works and its market share in the Gulf area is limited.
Opportunities
There are many opportunities such as growing the dairy market in the GCC area and in countries of the MENA area. Another is diversifying the company's products and innovating new ones. Marketing the company's products in seasons of tourism in KSA strengthens it as well as making use of the reduced duties that will be applied in near future on exports and imports of the GCC countries. There are also increased public and international awareness towards passive effects of fizzy drinks and the general attendance towards consuming milk and juices.
Threats
Threats include risks of operations, the instability of political situations in some countries in the MENA and Gulf area, increased costs of raw materials and human resources, other market competitors such as KDD and others and different risks of currency rates changes.
Stakeholder Analysis
Stakeholder | Role |
CEO | Responsible for management and supervision of all departments. |
CEO Assistant EVP bakery | Managing bakery works. |
CEO Assistant EVP farming | Managing farming and relevant issues. |
VP-corporate affairs | Responsible for corporate affairs. |
CHRO | Responsible for human resources management. |
Almarai has many stakeholders that can be classified based on priorities to primary and secondary stakeholders, among the primary ones are the company's senior management on top of them are the CEO Georges Schorderet who was appointed as Chief Executive Officer in Feb 2015. He joined the company in 2004 as Chief Financial Officer and in September 2011 he was its Chief Operating Officer. Assistant to him is Abdullah Abdulkarim. Abdullah Al Bader is the company's EVP bakery and Andrew Mackie is EVP farming. Faisal Alfahadi is the company's VP-corporate affairs and Fawaz Aljasser is CHRO, the company's chief human resources officer. The company has also general managers, managers and officers for the different departments and processes. Other stakeholders include shareholders, suppliers, customers and the community.
Action plan
- Building a basis for future sustainability for high quality food and beverage production.
- Improving organizational performance to keep presenting high quality products.
- Identifying challenges and suggesting innovative solutions that enhance the company's role in improving people's lives through its products.
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