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Agenda

Introduction
Mission and vision
SWOT analysis
Value Proposition
Major competitors
Main Strategies
Recommendations

Savola Group
Introduction:

Savola Group is one of the most successful and


fastest growing multinational food groups in the
Gulf and the Middle East Region, North African
and Central Asian countries (MENACA).
The Savola Group is publically listed on the
Saudi stock exchange and does not receive any
financial assistance from the Government.

Savola currently has market shares of 62% in the


Edible Oils market and 68% in the Sugar market
in the Kingdom as well as 166 retail outlets,
supermarkets/hypermarkets.

It has a wide portfolio of businesses & activities


including (Edible Oils, Vegetable Ghee, Sugar,
Pasta, Retail (Hypermarkets , Supermarkets and
convenience stores ) and Plastics (flexible and
rigid).

The Group also has significant investments in


leading publicly-listed Saudi companies,
investment funds and real-estate businesses

The retail division comprises supermarkets and


hypermarkets, and the packaging division
includes plastic manufacturing.
The investment division has invested in the
Herfy Foods Company and the Al Marai Dairy
Company. Finally, the real-estate division
includes Tameer Jordan and Kinan International.

Savola Activities

Workforce & HR

1/2

With regard to HR, the Savola Group is given


special importance to this aspect, where it
works continuously to recruit and develop
national cadres.
The Group has 23,806 employees, more than
17,000 are employed in Saudi Arabia. Savola
continued to make efforts to increase the
number of Saudi nationals in its workforce.

Workforce & HR

2/2

The Group has a strong commitment to


nationalization, the number of Saudi nationals
comprising 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.

Business Sectors and International


Presence
The Savola Group operates through main operating sectors
including:
Food sector (edible oils, sugar, pasta)
Retail sector, through Panda markets, which include
supermarkets, hypermarkets and My Panda convenience
stores
Strategic investment portfolio, includes its major investment in
Al 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 Madinah
with 11.5%.

The geographical presence of the company's


operations in a number of countries in the Middle
East, North Africa and Central Asia:

Vision & Mission

1/2

Mission Statement:
" In terms of our culture of The Balanced Way,
we at The Savola group are committed to our
Social Responsibility, and we will work
relentlessly in achieving world class standards of
openness, transparency and accountability
towards all our stakeholders, and build bridges
to reach out and serve the communities we
operate in. "

Vision & Mission

2/2

Vision Statement:
Give consumers a fair price, while ensuring
returns to our investors and all stakeholders.
Create a satisfying work experience for all
Savolans. Inspire personal responsibility and
enthusiasm for opportunity.

Comments on Savolas Mission


& Vision Statements
1/2

1. The Group statements are not comprehensive and


do not show the overall strategy of the organization,
as both dont include the Products or services the
group provide, the targeted Markets or the
Technology they use.
2. The statements do not emphasize how the group
will survive and grow or assure profitability for its
shareholders.
3. The Mission statement doesnt include the
employees or the concern for them
4. The Mission statement dont mention the
Customers.

Comments on Savolas Mission


& Vision Statements
2/2

5. The Mission statement mentions the The Balanced Way


philosophy, this philosophy was adopted by Savola, and is
explained 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 and
employees
Conscientiousness (Taqwa): responsibility towards our
community, clients, and suppliers
Personal control (Mujahdah): responsibility towards self
improvement and our aspiration to realize full potential
capabilities.
This explaination should have been mentioned in the Mission
Statement.

Savola Group Major


Competitors
1.
2.
3.
4.
5.

Supreme Foods Group


Astra Food Company
Americana Group (Kuwait Food Company)
Waitrose (low-margin competitor)
Carrefour (low-margin industry)

Savolas advantages over its


competitors 1/2
The Savola Group is one of Saudi Arabias leading
companies, with a strong presence throughout the
Arab world and beyond
It is one of the most successful and fastest-growing
multinational food groups in the Middle East, also
penetrating North African and Central Asian countries
The group has a workforce of more than 16,000
employees, around 160,000 shareholders, and is
listed in the top 20 companies in Saudi Arabia
It has long marketing experience in the Saudi market
and understands Saudi consumers

Savolas advantages over its


competitors 2/2
The company is strong in marketing research to
enhance quality and performance
The groups export operations cover 30 countries with
strong marketing and distribution capabilities
The Savola Academy, a training institution for staff, is
a 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

Savolas Weakness points vs


its competitors
Savola may not be able to compete against lowmargin competitors such as Waitrose and Carrefour in
a 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 declining
affordability, which could weaken Savolas ability to
sell property
Savola is lagging behind in Internet-based marketing
Savolas unrelated business portfolio may curtail
operational synergy