Tiger Brands

Increased regulation

Higher reliance on the private sector to deliver national infrastructure and services

• Optimising efficiencies while minimising costs
• Influencing mutually beneficial policy development

• Increased industrial action and social unrest
• Increased regulation increases the cost and administrative burden of doing business

• Adjusting our portfolio to address affordability and increase market share, supported by a cost-conscious culture and world-class integrated supply chain
• Invest in and support our brands to maintain strong brand equity and grow market share

• All

• Chairman’s review
• CEO review
• Strategic review
• Customer and consumer strategy

We will be measured on the effectiveness of our enterprise and supplier development programmes, as well as our succession planning and skills development programme

• Build an agile group to create employment through growth; work with government to optimise vertical integration opportunities to protect and create jobs in our supply chain
• Meet our skills development targets as part of the BBBEE scorecard
• Maximise opportunities for extending our smallholder farmer development initiatives

• Business continuity vulnerabilities
• Inadequate human resource management
• Non-compliance to revised BBBEE codes

• Portfolio growth and strategy
• Operating model and organisational design
• Unleashing the power of our people
• As a good corporate citizen, build a renewable and sustainable future

• Employees
• Trade unions
• Government and regulatory bodies

• Our people
• Preferential procurement, enterprise development
• Our communities

Understanding that we will be judged annually on how well we execute this five-year strategy, we will focus on building market confidence that we are incrementally delivering on our strategy – key measures include innovation rates as a percentage of revenue over a three-year period, cost targets, gross margin expansion, market share growth, marketing investment, net working capital and employee engagement

• Aggressively manage variable vs fixed costs to maintain and improve affordability
• Adopting a centralised procurement strategy to maximise scale and drive efficiency of spend
• Grow market share through brand building, relevant innovation and value offerings

• Inability to react to growing competition
• Failing to anticipate/respond to changing consumer preferences
• Inability to maintain cost competitiveness
• Failing to successfully execute business transformation programmes
• Managing input cost inflation poorly

• Portfolio growth and strategy
• Creating a cost-conscious culture and world-class integrated supply chain
• Operating model and organisational design

• Shareholders
• Analysts
• Media
• Customers and consumers
• Governments and regulatory bodies

• Chairman’s review
• CEO review
• Risk report
• Strategic review

We will be judged by the speed and effectiveness of execution, preferred employer status and measuring employee feedback via our employee pulse surveys that monitor satisfaction

• Organisational structures redesigned to ensure a responsive company, aided by simple and interdependent ways of working
• Recruiting and resourcing essential roles to address identified gaps
• Revised remuneration philosophy linked to strategic plan
• Training and developing our people

• Inadequate human resource management
• Employee health and wellness
• Threats to employee safety

• Creating cost-conscious, high-performance culture and world-class integrated supply chain
• Operating model and organisational design

• Employees
• Trade unions

• Our people
• Remuneration policy

Current regulatory issues include packaging waste, and pending sugar tax. In addition to legislative compliance, we will be measured by market share, brand equity and operating margin

• Centralised R&D/innovation hub to create a sustainable pipeline
• Improved procedures to enhance speed and success by better understanding consumers
• Ongoing initiatives on product affordability through manufacturing optimisation/efficiency and alternative pack sizes

• Inability to react to intensifying competition and changing competitive landscape
• Failure to respond to changing consumer preferences
• Regulatory non-compliance

• Portfolio growth and contribution to net sales from innovation
• Creating a cost-conscious culture and a world-class integrated supply chain

• Customers and consumers
• Suppliers and service providers
• Government and regulatory bodies

• Stakeholder engagement
• Preferential procurement
• Our customers and consumers
• Regulatory issues