Read the following case study and answer 1 out of 2 questions:
With SAR 14 billion in 2017 revenues, Almarai was Saudi Arabia’s largest dairy producer, distributor, and marketer, with a large portfolio of branded dairy products, juices, bakery goods, and infant formula and a sales presence across the Gulf region, Jordan, and Egypt. It specializes in food and beverage manufacturing and distribution. The company's main offices are located in Riyadh, Saudi Arabia. Almarai was founded in 1977.
Almarai employed some 42,000 people across its operations, from its massive dairy farms to its processing plants to its vast sales and distribution operation that reached over 100,000 outlets. The core of Almarai’s business was sales of branded fresh/chilled dairy products in Saudi Arabia, distributed through the traditional retail channel made up of thousands of small neighborhood shops called bakalas.
The dairy company began with 350 cows, before expanding its operations over the past three decades. The company is now responsible for more than 200,000 cows globally and is one of the world's largest dairy companies. The company has an excellent refrigerated distribution network across the Gulf region.
The company notably partnered with PepsiCo from 2009 onwards and has been responsible for acquiring a number of large businesses. Almarai had started an initiative called "Almarai for Innovation Management" which is at the center of its innovation activities. Almarai's research and development efforts annually result in testing of 630 experimental products each year with 65 products under development at all times throughout the year.
Almarai has an annual growth rate of over 20% per annum for the past 10 years. The revenue of Almarai has almost tripled in the past five years as demand for its products has increased.
Despite challenging economic conditions, the dairy company plans to expand. The board of Almarai approved a new five-year business plan with 7.1 billion riyals and aims to cut costs and increase profit.
In October 2018, new taxes were squeezing household budgets. This situation finds Almarai’s management team debating how the company can defend and grow its position in Saudi Arabia while also finding new sources of future growth (e.g., bringing its production model to new markets or entering new product categories such as fish or ice cream). The decision of how to move forward will be based on an assessment of Almarai’s strengths, how they can be best used to drive future growth, and how relevant they will remain in a market that is changing.
END OF CASE:
Now Answer one of the following two questions:
Questions:
Analyze what happened at Almarai with the help of the any two of the dimensions of strategy diamond.
Suppose you are hired by Almarai as a strategy consultant. You have been asked to propose the vision statement of the company. Clearly write the vision statement for Almarai. Also, show how this statement fulfills the assessment criteria discussed in the class.