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The profit zone : Shoprite, Pick 'n Pay, Spar and Woolworths

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Ongoing business sustainability today is one of the major issues facing the
management of organizations. How to remain in the profit zone, that area where a
company will be allowed to make high profit in its industry, is a constant challenge.
Continued profitability in a fast changing industry, where the profit zone moves as
competitors offer the same solutions, requires constant innovation, implementation of
new ideas and heavy financial commitments. The key is to identify clear and rational
business design choices that are responsive to customers and that will ensure
profitability.
This document will illustrate how the four major food retail companies in South Africa,
and their visionary leaders, have reinvented their business designs in ways that kept
or returned them to the profit zone.
Shoprite's target market is the middle to lower income group. The company has built
up core competencies within its business to serve this segment. There are currently
a number of issues facing Shoprite's core market, and as a result the company is
diversifying its income streams to be less dependant on a vulnerable target market.
. The visionary leadership of Raymond Ackerman, who applied principles of customer
sovereignty long before his peers, has resulted in one of the best-run companies in
South Africa. Pick 'n Pay's ability lies within the middle to upper segment of the
market. The company has built its business on one core element - the customer,
and has adapted the company business design to meet the needs of the customer
and capture value .
.Spars' philosophy of giving the small retailer the power to compete with the larger
retailer, who buys in bulk, has proved to be a successful formula and is threatening
the traditional hierarchy. Owners who are in close contact to customers have the
flexibility to align their businesses with the customer requirements.
'Woolworths has one of the strongest brands in the South African retail industry.
However, the company has in recent years been in serious trouble having lost its way because it lost touch with its customers. Concentrating back on the core customers
and building back confidence in its goods, have taken considerable focus.
Each of the business designs are built on a deep understanding of what the customer
needs are of the target market they serve and how they will be allowed to make a
profit. / AFRIKAANSE OPSOMMING: Een van die grootste knelpunte vir organisasies vandag is volhoubare besigheidsbestuur.
Die uitdaging is om in die area te bly waar die organisasie toegelaat sal
word om hoë wins te maak.
Voortgesette winsgewendheid in 'n industrie waar die wins area veskuif as gevolg
van mededingers wat oplossings naboots, vereis voortdurende vernuwing en
strawwe finansiële verpligtinge. Die sleutel is om duidelike en rasionele
besigheidsontwerpbesluite te neem wat kliente behoeftes aanspreek en wat na 'n
wins sal lei.
Hierdie dokument beskryf hoe die vier groot voedselhandelaars en hulle leiers hul
besighede herontwerp het sodat hulle winsgewend kan bly.
Shoprite se teiken mark is die middel - tot lae inkomste groep. Die firma het kern
bevoegdhede binne sy besigheid ontwikkel om hierdie segment te bedien. Shoprite
diversifeer huidiglik sy inkomste stroom as gevolg van die kwesbaarheid van sy
teiken mark.
Pick 'n Pay word as een van Suid Afrika se beste bestuurde firmas beskou. Die
sukses word toegeskryf aan die leierskap van Raymond Ackerman wat die
beginsels van kliënte soewereiniteit lank voor sy portuurgroep geïmplimenteer het.
Pick 'n Pay se fokus is die middel - tot hoë inkomste groep. Die firma is op een kern
element gebou, die kliënt, en sy besigheids ontwerp is aangepas om die behoeftes
van die kliënt te bevredig.
Spar se filosofie is om die kleiner handelaar in 'n posisie te stel om met die groot
handelaar, wat in grootrnaat aankoop, te kan meeding. Die groei wat Spar toon
bedreig die traditionele hiërargie en bewys die sukses van hierdie formule. Winkel
eienaars wat noue kontak met kliënte het, kan hulle besighede aanpas om in kliënte
se behoeftes te voorsien. Woolworths het een van die sterkste handelsmerke in die Suid Afrikaanse handels
industrie. Die firma was in die laaste paar jaar in groot moeilikheid omdat hy tred
verloor het met sy kliënte. Deur weer te konsentreer op die kern kliënt en om
vertroue op te bou in sy goedere het beduidende fokus vereis.
Elk van die besigheids ontwerpe is gebou op 'n intieme begrip van die behoeftes van
die teiken mark wat bedien word en hoe die firma toegelaat sal word om 'n wins te
maak.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/53150
Date12 1900
CreatorsMeyer, Juanita
ContributorsBurger, J., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format100 p.
RightsStellenbosch University

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