Presentation Transcript

1. Al-Ghazzawi GroupStrategy workshop preparation

   January 2012
2. Group industry and company analysis: Pre-work: Competitive analysis
3. Areas of analysis Business scope Business model Markets and customer analysis Key competitors, strengths and weaknesses SWOT analysis Financial analysis Key business issues New directions
4. Business definition What Products and Services do you provide? We are chain of coffee and tea company operating in KSA and Bahrain as sub franchise of Joffrey’s Coffee & Tea Company USA What Markets (customer segments) do you compete? Retail food & beverage business in restaurants, hospitals, universities, kiosks and wholesale trading to Aramco, Tammimi and AFS . What Geographies do you compete in? Western (Jeddah), Central (Riyadh) and Eastern (Dammam, Khobar, Jubail, Hasa and Bahrain).
5. Business model What is the value chain for your industry and what parts of the value chain do you compete? Refer chart below. What is your approach within each segment of your value chain? Procurement: We are buying best of quality products from top notch companies across the world to keep a distinct identity in the market Inbound Logistics: We have our owned big warehouse facility equipped with own roasting systems Operations: We maintain a very hygienic environment in our outlets updated equipments and service standards. Business Development, Sales & Marketing: Our constant endeavor to expand in the market but here we need more aggressive strategies to counter our competitors so to capture the bigger market share. We already started our initiatives in this direction by recruiting a development manager for further directions. Servicing: Maintain quality of products and customer satisfaction. Making more efforts to set high standards for bench marking What is your value proposition? To increase the sales via adding more outlets and resultantly higher profits by optimizing the indirect cost as well. Tailored to fit local environment give bring customer into community How do you or where in your value chain do you make money? By selling products and services in the food business across KSA
6. Value chain components Example value chain and competitive approach (example) Inbound Logistics Outbound logistics Business Development, sales and marketing Servicing Procurement Operations Procure high- grade coffee beans, tea and other food ingredients from international companies of repute and locally. Hygienically storage and Inventory management Process and package coffee beans with consistent quality operate stores and sub franchise with controlled processes Manage effective channels through owned stores and franchises with consistent effort to achieve our targets Maintenance of stores and store equipments Training of employees Manage warehousing, order processing, shipment and delivery
7. Markets and customer analysis with sales
8. Markets and customer analysis with sales (sample)
9. Markets segment analysis
10. Markets segment analysis
11. Markets and customer analysis per segments (example) Key account:- Are outlets that display, sell and promote our products to the direct consumer within an area of 70 meters or above with 1 branch or more. Our current coverage is 96%. With long and short term stability and high growth potential during the next coming 5 years. Members ( sample ): 1. Carrefour 2. Hyper 1 3. Spinney's Members priorities Profitability Increase average spent per invoice Increase traffic Continuous calendar of events Availability and Follow up Display and merchandizing
12. Markets and customer analysis per segments (example) (cont’d) Members unmet needs Proper loose corner for olives with high level of hygiene Automatic ordering through the internet to minimize ordering cost Segment profitability: Medium to High Growth constraints: Long Payment terms requirements ( DOH). Growth potential: High. Projected 55 new hyper Key account to be launched in Alexandria, Sinai, Cairo and Suez canal with an inventory value of SR 250 Million. Relevant Strategic Group(s): Own Outlets Projected franchised outlets Needed development for the segment: Logistics Communication Projected segment perception for WAF: The trusted brand
13. Competitor analysis
14. Competitor analysis
15. Contractor value chain components Comparison of how competitors compete versus you – pick 3 biggest competitors Project tendering and planning Material/resources acquisition Project execution Service extension - Operate and maintain Contracting business development and growth strategy Design and engineering Target sectors with High Margin opportunities and to consolidate where we work geographically Use centralized staff that are experts in estimating and know market to best leverage all capabilities for best pricing and in developing plans Use centralized design and engineering staff as small nucleus and outsource with contract firm when needs exceed abilities Use Group contracts for best prices and long term supplies contracts to get best price and delivery service…use suppliers as contractors where possible Effective project management where project manager controls resources to optimize efficient and effective implementation Once projects are complete, we offer operate and maintain services of facilities as extension and long term revenue stream You Company A Company B Company C
16. Joffrey’s Coffee Company Middle East Comparison of how competitors compete versus you - - pick 3 biggest competitors Inbound logistics Outbound logistics Business development, sales and marketing Servicing Procurement Operations Procure high-grade coffee beans, tea and food ingredients Warehousing and inventory management Process and package coffee beans with consistent quality Operate stores and franchises with controlled processes Manage store outlets inside and outside KSA Manage warehousing, order processing, shipment and delivery Manage effective channels through owned stores, franchises and different brand commercial outlets Increase marketing and advertising Ensure salesforce effectiveness Maintenance of stores and store equipment training for employees You Procure high-grade coffee beans Procure certified Fair trade coffee Apply latest technology to manage inventory Process coffee in house Build a strong certified air trade coffee process Improve franchise processes Apply latest technology for order processing, shipping and delivery Build and sustain brand in all markets Standardized service support system as per international standards Starbucks Procure high grade coffee beans and certified fair trade coffee Latest inventory management system Standardized operations governed by unified systems across the world Updated systems Only to sustain ng efforts of Brand High quality standards Costa Centralized purchasing system for procuring the high quality coffee Well managed professional inventory system High bench mark standards Updated systems and latest applied technology Ongoing expanding efforts Well managed service standards Second Cup
17. SWOT analysis Strengths: Weaknesses: Poor visibility at key locations in KSA Image and identity Service and Hospitality Retention of key employees Early penetration in the Saudi Arabia market Product quality Positive customer perception SWOT Big market in KSA and Middle East Wholesale market penetration Morale and motivation of staff due to lack of HR policies and strategies Competitor strategies to improve their market share Opportunities: Threats:
18. Financial analysis Revenue and projected growth
19. Financial analysis Profit margins:
20. Financial analysis Revenue (in mn) and projected growth (%) Profit margins (in ‘000) Cash management and flow challenges: Relative financial health of Company and plans:
21. Key business issues Lack of vision and mission of top management We lack the resources and tools to be able to grow the market Some competitors are bidding very high for the new contracts in the Hospitals and universities to gain market share New government regulations may limit our use of immigrant workers Our management policies need to be transparent and updated Strengthening the retention strategies of staff as employee turnover ration is very high Lack of objective criterion to evaluate and reward key performers
22. Key focus for new directionsand competitiveness Add more outlets at strategic locations Revival plan for Riyadh area Improving internal hierarchy, systems, policies and controls Retention strategies for Key employees Improving value chain propositions Improving the product portfolio to have more variety in product mix
23. Key focus for new directions and competitiveness 1. Invest in branding via marketing and publicity 2. Develop Riyadh area and expand in other places in KSA and Middle east: To make and develop a complete development plan to expand and penetrate in the profitable segments To restructure the Riyadh area operations to make it profitable Gather, compile and analyses the data of competitors to counter them with effective strategies To liaison with Hospital and University authorities aggressively to get new contracts Develop benchmarks for productivity and retention of employees. 3. To tap new opportunities for wholesale business in Hyper markets To explore more options to expand sub franchise business across middle east

24. Thank you