Strategy Project Group 7

Strategy Project Group 7. A van der Merwe 29992109 S Landman 31634680 B van Tonder 30511364 L Stander 31960375 B Rossouw 31882544 T Ramapulane 28694473.

EXCELLENCE Consulting services Pty Ltd.

Directors. Managing director- Fanie Landman Director of Operations-Tebogo Ramapulane Finance Director- Bernico van Tonder and Alexander van der Merwe Public Relations Director- Biance Rossouw Quality Assurance Director- Loraine Stander.

Tiger Brands. Tiger Brands.

PURPOSE STATEMENT. Introduction Excellence Consulting Services Ltd wants to give Tiger Brands with guidance on the path the company should take to accomplish its updated medium-term and long-term strategic goals in this study . Strategic goals are financial and non-financial objectives that a corporation aspires to attain over time . Background Under the name Tiger Oats Limited , the company was founded in Johannesburg in 1921 by Jacob Frankel and Joffe Marks as a small family business , but was later rebranded to Tiger Brands Limited in 2000 . Understanding of the existing company vision, mission, goals, objectives, and KPIs Vision Tiger Brands' ultimate mission is to grow in the fast-moving consumer goods (FMCG) industry in South Africa, benefiting all parties involved, and to be the most desirable branded consumer packaged products firm in future markets..

Mission To improve and enrich the lives of consumers on a daily basis by providing high-quality brands that meet their various and evolving needs. Tiger companies will also ensure that they meet their customers' needs and adopt procedures to ensure that product quality is continually improved. Goals Invest in the company's future growth through embracing innovation and adaptation. Consistent supply chain flows from all factories, as well as timely delivery to their clients. To expand their existing departments and generate significant growth over the next few years. Objectives Assuring the company's long-term growth . The ability to develop high-quality items while remaining ecologically conscious . To reclaim their competitiveness in production by eliminating waste and improving the efficiency of the equipment they employ . Key performance indicators Key performance indicators (KPIs) are frequently utilized to get answers about the quantitative aspects of your goals and objectives. With the exception of sales volume growth, all of the KPIs for the fiscal year 2021 were met ..

Critique of the company vision, mission, goals, objectives, and KPIs: Vision The company remains true to its vision statement because the focus of all its production and manufacturing is based on consumer goods in the fast-moving consumer goods industry. Mission While the company supplies numerous products to the market to improve and enrich consumers' lives, recalls such as the KOO brands tinned cans in the 2021 financial year have a negative impact on the mission statement because it is inconvenient to consumers. Goals The company will need to grow in its sales segment as indicated by the company's KPI of sales, the volume growth is not being achieved due the results in the 2021 financial year which indicates that no new sales were achieved for that specified financial year. The company might benefit from focusing on implementing systems to prevent recalls of products in the future. In doing so the company ensures the safety of their clients as well as saving time and resources needed to recall products such as the KOO brand tinned cans in the 2021 financial year. The company strives to have a consistent supply chain between all factories and depots, but also has an obligation towards the environment and it will, thus, must take aspects such as fuel and carbon emissions into consideration. The company seeks to continuously improve product quality and reduce quality complaints The goal is very specific and clear as they state that they want to grow their operations and it, therefore, will be attainable. Tiger Brands' goal is relevant as it will help them to achieve their overall vision and mission within the appropriate time frame..

Objectives The company is actively launching new products and expanding current brands thus securing long-term growth in new and existing segments Overall, the company has realised an increase in operating margins, thus, driving up revenue and operating income. Although the company has realised an increase in revenue in exports, operating income and margins have decreased due to a higher cost of sales, more specifically higher global shipping costs. For Tiger Brands to regain its competitive nature and increase its volume production, they will need to consider whether there will be any additional expenses incurred which in effect influences their future profits and objective. Key performance indicators The company should prioritise sales volume growth as a key component and seek to improve to meet the target goal. While achieving the following KPIs are below minimum standard: Brand health Net Working capital Wastage Since Tiger Brands did not achieve all of its target KPIs, it is important to consider whether they were actually aligned with its objectives. It might be possible that the implementation of the KPIs were too ambitious..

ORGANISATIONAL ECOSYSTEM. Analysing of Tiger Brands' financial performance and position.

Swot analysis Strengths As we can see the company has a lot of strengths, but the main strengths are the following: Tiger Brands is one of Africa’s largest listed manufacturers of fast-moving consumer goods (FMCG) Tiger Brands’ products are relevant across every meal occasion of the day and are well-positioned to grow. Tiger Brands’ portfolio is well placed to grow its presence on most occasions The board and management are taking various steps to ensure improved performance, recruiting the right skills, developing an innovation pipeline, and investing in improving overall equipment effectiveness in key operations Weaknesses There are a lot of factors that influence Tiger Brands, but the following are the main factors: The brand's Benny, Ace, and Golden Cloud products are seen to be the weakest overall brands since customers prefer not to use them Operational performance costs and costs relating to civil unrest and product recall are all in red, implying higher expenditure is implemented in these specified cases. The export portfolio has not gone the way it should have gone, says the CEO. This is due to a lack of performance Food quality and safety are not always uniformly applied across all brands provided by Tiger Brands.

Opportunities Tiger brands have the following opportunities in the industry: Tiger brands have an opportunity where investors will be more interested in them if they focus more on their ESG (environmental, social, and governance), with this, they have three, (3), focus areas such as the following: health and nutrition, enhanced livelihood, and environmental stewardship. Tiger brands invested in strengthening innovations, by focusing on fewer and less big projects, this lets them focus more on their brand in how they can improve for future purposes Tiger brands could develop their market in the African region as this will make them an international trader where, ultimately, more investors will be interested in investing in the company as it will give a bigger return Threats The following factors are threats that Tiger brands can experience: Recall of products will impact the turnover in the long run as these items will have to be written off. Civil unrest will cause products to be stolen or that deliveries cannot take place from the warehouses. The fluctuating agricultural community cost will impact the company as they will have to adopt these prices, this will impact their selling price during the period that they have to stay competitive in the market As consumer expectations and preferences change, the company can struggle to adapt to the changing market..

Gap analysis Between the vision, mission, objectives, and KPIs Tiger Brands have the vision to deliver a top-tier financial result and to be recognized as a fast-moving consumer of goods in South Africa. Its mission is to nourish lives every day. There is a clear gap between the concepts as they are not consistent with one another. Tiger Brands will have to take steps to close the gap and to ensure that both are met. Tiger Brands’ objectives are to meet the needs of the consumer, optimize its supply chain, be obsessed with cost savings and efficiencies, build a growth pipeline, and ignite its people. There are increases in the revenue and consumer brands and decreases in the volumes. This indicates that there are gaps between the customer and what the consumer buys, there is also a gap between Tiger Brands and the factory performance. The focus cannot be on revenue but in the meantime their production costs are high. This will result in prices going up due to production costs that is higher and the low stock that is available..

Recommendations to secure competitive sustainability Implement a research team Understand standards and legislation in new markets Create an online store Review efficiency of equipment every 2-5 years Enter performance market with products for athletes.

Digital strategy. Advice on the impact of digitization on company operations, strategy, and sustainability The impact will be that customers want to move from buying in-store products to buying online products. This is where online shopping apps are getting in the picture. The impact of improving technologies on the company’s supply chain will be much easier for them to optimize and manage production. This can lead to better forecasting of customer demand and unexpected future events that can occur. The involvement of digitalization in operations can lead to combining AI, machine learning, delivery improvements, and the improvement of customer satisfaction so that it can increase the company’s sales. Digitization of sustainability will lead to better and more productivity, efficiency, and saving costs. This will help Tiger Brand to better manage its spending of money and resources. Analysis of the company’s current digital agility and existing use of digital technology Tiger Brands has good digital agility and is making use of digital technology to sustain performance and be competitive. This leads to improving productivity and cash flows and sustains their competitive nature. They implement their digital technology to manage information, communicate with the public, and make operations easier. Tiger Brands recently improved its labeling techniques and launched a television campaign. They also made use of new technology for in-line inspections to lower customer complaints. Tiger Brands have plans in place to improve the technology of procurement practices further in the next three years. They make a point in it to invest in newer plants and equipment that gives long-term growth and is cost efficiency that reduces the environmental impact. All of this is possible by the research and marketing team, and the experts in the technology department. Tiger brands saw that online shopping is increasing and they started investing in these platforms. They have new technology improvements to protect customers from IT risks. Tiger Brands have a good understanding of digital ability and how to implement digital technology..

Recommendations to secure its competitive sustainabilit y We suggest implementing a research team to analyze all considerations needed to explore new territories and satisfy new demands in an ever-changing market. It’s vital to understand the standards and legislation that needs to be complied with, to minimize losses when exploring new markets. Centralize purchases by creating a Tiger brand’s online store. Efficiency is very important in any business environment; centralizing purchases will streamline the process and make auditing such a system much easier. We suggest reviewing the efficiency of equipment every 2-5 years. Technology progresses at a blinding pace, improving in all aspects can lead to small improvements and large gains when upscaling. Entering the performance market with products for athletes will be the next step in expanding the business. Online surveys are a good tool to use in these given circumstances..

Strategic implementations and measurement. Implementation plan addressing the role/importance of leadership, change management, and corporate culture: Role/importance of leadership : Tiger brands have various factories located in key areas as well as numerous distribution centres that implement a multi-national supply chain to reach the final destinations such as the customers as well as exportations, the role of leadership is to implement plans and goals to streamline the process from start to finish in a timely and cost effective way with minimum wastage, as well as maintaining adequate levels of quality to comply with food safety laws. Implementation plan addressing the change of management : To remain competitive Tiger Brands has entered the e-commerce segment to reach new customers. Lastly, on the aspect of sustainability, Tiger Brands is continuously implementing changes to be able to exceed in manufacturing on a large scale while staying true on their environmental, social, and governance policies which are clearly defined as goals to be achieved by 2030. Implementation plan addressing the corporate culture: Tiger Brands has implemented a high standard of what they deem important of their employees as well as the company as a whole. Tiger Brands clearly defines its expectations for its employees in the company as core values as treating one another with care and respect, delivering passion and excellence, safety and quality are not negotiable, embracing diversity and inclusivity. The company goes even further to continuously implement a reputable corporate culture by including an extra set of positive goal based mind-set traits..

Recommendation of tools/frameworks to measure strategic performance: The corporate culture benefits the company as a manufacturer due to its focus on delivering high quality goods which will add value to the company as a whole because of the brand recognition of the products. The company has various products in numerous segments all falling under the consumer’s goods industry and relies on brand recognition and brand value to drive sales by enticing and appealing to consumers to buy their specific brand. The leadership of Tiger Brands from top to middle management have clear goals to get materials to the factory to be processed and then be shipped to various locations in a timely manner while remaining true to their environmental goals which would include, driving economically with full load to lessen the environmental impact, and maintaining adequate stock levels at all endpoints. While the company has numerous widely known products that consumers would buy based on brand, the company has had numerous fallouts with product safety such as the listeriosis in 2018 as well as a recall of canned food in 2020. These product flaws have damaged the brand names which resulted in lawsuits against the company, it is recommended that extra care is added in product safety to ensure that the company stays true to its goals of high quality goods. Tiger brands have met the majority of their key performance indicators except the sales volume growth which is a red flag in terms of the company’s long term growth if it is not corrected. While the other growth metrics where met and the company has a positive revenue and operations income it is still driving for new sales as indicated by the expansion into e-commerce to reach new markets both foreign and domestic..