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Agenda
Introduction Mission and vision
SWOT analysis Value Proposition Major competitors Main Strategies Recommendations
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Savola Group
Introduction: Savola Group is one of the most successful and
fastest growing multinational food groups in theGulf and the Middle East Region, North Africanand Central Asian countries (MENACA).
The Savola Group is publically listed on theSaudi stock exchange and does not receive anyfinancial assistance from the Government.
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Savola currently has market shares of 62% in the
Edible Oils market and 68% in the Sugar marketin the Kingdom as well as 166 retail outlets,supermarkets/hypermarkets.
It has a wide portfolio of businesses & activitiesincluding (Edible Oils, Vegetable Ghee, Sugar,Pasta, Retail (Hypermarkets , Supermarkets andconvenience stores ) and Plastics (flexible andrigid).
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The Group also has significant investments inleading publicly-listed Saudi companies,
investment funds and real-estate businesses
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The retail division comprises supermarkets and
hypermarkets, and the packaging divisionincludes plastic manufacturing.
The investment division has invested in theHerfy Foods Company and the Al Marai DairyCompany. Finally, the real-estate division
includes Tameer Jordan and Kinan International.
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Savola Activities
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Workforce HR 1/2
With regard to HR, the Savola Group is givenspecial importance to this aspect, where itworks continuously to recruit and developnational cadres.
The Group has 23,806 employees, more than17,000 are employed in Saudi Arabia. Savola
continued to make efforts to increase thenumber of Saudi nationals in its workforce.
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Workforce HR 2/2
The Group has a strong commitment tonationalization, the number of Saudi nationalscomprising a significant and growing proportion
of its total workforce. Most of its top management are Saudi
Nationals. It also employs 6,738 people in its
International Businesses. The Group conduct several training courses and
workshops for its employees in all Sectors.
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Business Sectors and InternationalPresence
The Savola Group operates through main operating sectorsincluding:
Food sector (edible oils, sugar, pasta) Retail sector, through Panda markets, which include
supermarkets, hypermarkets and My Panda conveniencestores
Strategic investment portfolio, includes its major investment inAl Marai Company (36.52%)Herfy Foods Company (49%)Kinan Real Estate Co.( 29.99%)Jordanian Tameer Company (5%)Founding Shareholder of Knowledge Economic City in Madinahwith 11.5%.
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The geographical presence of the company'soperations in a number of countries in the Middle
East, North Africa and Central Asia:
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Vision & Mission 1/2
Mission Statement:
" In terms of our culture of The Balanced Way,
we at The Savola group are committed to ourSocial Responsibility, and we will workrelentlessly in achieving world class standards ofopenness, transparency and accountabilitytowards all our stakeholders, and build bridgesto reach out and serve the communities weoperate in. "
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Vision & Mission 2/2
Vision Statement:
Give consumers a fair price, while ensuringreturns to our investors and all stakeholders.Create a satisfying work experience for allSavolans. Inspire personal responsibility andenthusiasm for opportunity.
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Comments on Savolas Mission& Vision Statements 1/2
1. The Group statements are not comprehensive anddo not show the overall strategy of the organization,as both dont include the Products or services thegroup provide, the targeted Markets or the
Technology they use.2. The statements do not emphasize how the groupwill survive and grow or assure profitability for itsshareholders.
3. The Mission statement doesnt include theemployees or the concern for them
4. The Mission statement dont mention theCustomers.
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Comments on Savolas Mission& Vision Statements 2/2
5. The Mission statement mentions the The Balanced Wayphilosophy, this philosophy was adopted by Savola, and isexplained on their website as follows:
It is a culture that depends on four basic values, which are: Honesty (Amanah): responsibility towards shareholders.Caring justice (Birr): responsibility towards our staff andemployeesConscientiousness (Taqwa): responsibility towards ourcommunity, clients, and suppliersPersonal control (Mujahdah): responsibility towards selfimprovement and our aspiration to realize full potentialcapabilities.This explaination should have been mentioned in the MissionStatement.
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Savola Group MajorCompetitors
1. Supreme Foods Group
2. Astra Food Company3. Americana Group (Kuwait Food Company)
4. Waitrose (low-margin competitor)
5. Carrefour (low-margin industry)
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Savolas advantages over itscompetitors 1/2
The Savola Group is one of Saudi Arabias leadingcompanies, with a strong presence throughout theArab world and beyond
It is one of the most successful and fastest-growingmultinational food groups in the Middle East, alsopenetrating North African and Central Asian countries
The group has a workforce of more than 16,000employees, around 160,000 shareholders, and islisted in the top 20 companies in Saudi Arabia
It has long marketing experience in the Saudi marketand understands Saudi consumers
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Savolas advantages over itscompetitors 2/2
The company is strong in marketing research toenhance quality and performance
The groups export operations cover 30 countries withstrong marketing and distribution capabilities
The Savola Academy, a training institution for staff, isa professional human resources system in Savola
Savola has the capacity to expand in all business
areas, especially in the petrochemicals area Savola has plenty of cash that allows it to acquire
more assets in the GCC region
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Savolas Weakness points vsits competitors
Savola may not be able to compete against low-margin competitors such as Waitrose and Carrefour ina low-margin industry
Inflation, which results from linking the SR to the US$,may affect the companys narrow profit margin
The real-estate market is showing decliningaffordability, which could weaken Savolas ability tosell property
Savola is lagging behind in Internet-based marketing Savolas unrelated business portfolio may curtail
operational synergy