Description
This is part of a project report please answer the 2 questions in a word file and design a power-point slide for itQ1: Suggestions to the company to deal with the COVID-19 pandemic (3 Marks)As a Project Intern, suggest your suggestions to Almarai company to overcome the challenges created due to the COVID-19 pandemic.Q: Design a business plan for the company (3 Marks).As a Project Intern, design a business plan/business strategy to help the company in increasing its revenue either by suggesting the company to starting a new business unit or by launching a new product or services. Note**attached is the project report part 1 u can use it as a reference
Unformatted Attachment Preview
Group Project Assignment
Saudi Electronic University
College of Administrative and Financial Sciences
E-Commerce Department
Student Name:
Student ID:
Course Title: E-Business Strategies and Course Code: ECOM421
Business Models
Academic Year/ Semester:
2023-24/First Semester
CRN:
Instructor Name:
Student Grade:
1|Page
Grade Level:
Saudi Electronic University
College of Administrative and Financial Sciences
ECOM421 – E-Business Strategies & Business Models
Group Project Assignment
Academic Year 2023/2024, Semester (1)
Submission
Part 1
Saturday, 30th September 2023 (End of Week 5)
15 Marks
Part 2
Saturday, 11th November 2023 (Week 11)
15 Marks
Part 3
Saturday, 11th November 2023 (Week 11)
10 Marks
Total Marks: 40
2|Page
Questions
You have just graduated from Saudi Electronic University and have been selected by a company
as a Project Intern for six months’ probation period. Your Marketing Manager has invited you for
coffee and during your interaction with him, you come to know that your company wants you to
support it in growing the business. Your Marketing Manager has told you to prepare a project
report and design a power-point presentation based on certain parameters. The company will
decide whether to offer you a full-time opportunity or not based on our quality of work, efforts,
and creative thinking. Kindly do this assignment with great dedication. The purpose of this
assignment is to help students in learning how to apply skills and knowledge in planning,
managing, and nurturing a business by implementing an appropriate strategy. Students are
expected to understand the ongoing recent developments in the marketplace and be able to employ
various concepts of this course deliberately to boost the businesses of the company where they are
working/or will work. This assignment is divided into three parts and students are suggested to
submit each of them as per the stated due date. Students are suggested to create a group of 3-5
students in each group to complete this group project and join any one of the below groups
considering that all members of your group have been selected by the company stated in front of
each group number.
3|Page
Answers
Table of Contents
Group Project Assignment Part 1
S. No.
Contents
Page
Number
1
Company Profile
2
Business Canvas Model
3
SWOT Analysis
4
Core competencies
5
Types of Business Models
6
Challenges faced by the company during the COVID-19 pandemic
4|Page
1- Company Profile
Almarai Company is one of the leading companies in the field of dairy
products and foodstuffs in the Middle East. The company was established in
1977, and its headquarters are in the city of Riyadh. Almarai operates in
multiple sectors including dairy, food and beverages. Almarai is considered
one of the largest Saudi companies and has a strong presence in local and
international markets.
Almarai Company is distinguished by providing high quality products and
strict production standards. The company has complete control over its
supply chain, from raising cows and cattle on its own farms, through to the
manufacturing, packaging and distribution stages. Almarai products include
a wide range of diversified dairy products. These products include fresh
milk, canned milk, powdered milk, cheese, butter, yogurt, and cream.
Almarai targets all categories of consumers, from individuals and families to
5|Page
institutions, restaurants and hotels. Almarai products are distinguished by
their focus on quality and food safety, as the company adheres to high
standards of manufacturing and quality control. Almarai relies on modern
technologies and international standards in production, packaging and
distribution processes, ensuring the provision of safe and healthy products to
consumers.
In addition to dairy products, Almarai has diversified its activities to include
other sectors in the food industry. The company also produces bottled juices
and soft drinks, and offers a wide range of frozen products such as meat,
poultry and seafood.
Almarai Company aims to achieve its vision of being the leading and
preferred company for consumers in the dairy and food industry sector. The
company seeks to innovate and develop new products that meet customer
needs and keep pace with food and consumer developments.
Regarding the organizational structure, Almarai Company relies on an
integrated organizational structure that includes an executive management
and a board of directors that supervises the workflow and strategic decisionmaking. The organizational structure also contains a group of different
departments and divisions such as production, marketing, sales, quality,
research and development, and human resources.
Almarai Company works to promote environmental and social sustainability
through sustainable initiatives and strong social responsibility. The company
6|Page
pays attention to preserving the environment, sustaining resources, and
enhancing the well-being of the communities in which it operates.
2- Business Model Canvas:
Business Model Canvas
Key Partners
Key Activities
Value Propositions
Customer Relationships
Customer Segments
– Dairy farmers
and suppliers.
– Producing and
distributing quality and
nutritious food and
beverages.
– Offering a wide
range of products
under different
brands.
– Building trust and
loyalty with
consumers.
– Mass market in the
Middle East and North
Africa.
– Juice and
bakery
manufacturers
and distributors.
– Investing in research and
development.
– Ensuring high
standards of food
safety and quality.
– Providing customer
service and feedback
channels.
– Specific segments
such as infants,
children, and adults.
– Engaging in social
responsibility and
sustainability
initiatives.
– Institutional and
commercial customers
such as restaurants,
hotels, and caterers.
– Creating brand
awareness and
recognition.
– International markets
such as Egypt, Jordan,
and Kuwait.
– Poultry farmers
and suppliers.
– Retailers and
wholesalers.
– Expanding and
diversifying the product
portfolio.
– Optimizing the supply
chain and logistics.
Key Resources
– Human resources: skilled
and trained employees.
– Physical resources:
farms, factories,
warehouses, etc.
– Financial resources:
capital, cash flow,
investments, etc.
– Intellectual resources:
patents, trademarks,
know-how, etc.
7|Page
– Meeting the
changing needs and
preferences of
consumers.
– Offering competitive
prices and
promotions.
Channels
– Direct channels: own
distribution network
and fleet.
– Indirect channels:
supermarkets,
hypermarkets,
convenience stores,
etc.
– Online channels:
website, social media,
e-commerce
platforms, etc.
– Marketing channels:
advertising,
sponsorship, events,
etc.
3- SWOT Analysis
Strengths:
• Robust Brand Reputation: Almarai has built a solid reputation as a
prominent and widely acknowledged brand in the Middle East, renowned for
its exceptional dairy and food offerings. This strong brand reputation gives
the company a competitive edge in the market.
• Varied Product Range: Almarai provides an extensive selection of
products, encompassing dairy, juices, bakery items, and poultry. This
diversification enables the company to reach a broader customer base and
lessens its reliance on a single product category.
Weaknesses:
• Dependence on External Suppliers: Almarai’s reliance on external suppliers
for raw materials such as animal feed and packaging materials poses a risk to
the company’s supply chain. This reliance exposes Almarai to potential price
fluctuations and disruptions in the availability of essential inputs.
8|Page
Geographic Area: Although Almarai has a strong foothold in the Middle
East, its operations are heavily concentrated in Saudi Arabia. This
geographic concentration makes the company susceptible to economic and
political fluctuations in the region
Opportunities:
One opportunity for Almarai is the expanding Middle Eastern market,
particularly in Saudi Arabia, where there is a growing population and an
increasing demand for high-quality food products. The company can take
advantage of this opportunity by expanding its range of products and
targeting new customer segments. Additionally, investing in research and
development would allow Almarai to introduce innovative and healthier
product options. By diversifying its product line and responding to emerging
trends, such as organic and plant-based foods, the company can meet the
evolving preferences of consumers.
Threats:
• Intense Competition: The food and beverage industry is characterized by
high competition, with both local and international companies competing for
market dominance. Almarai faces competition from well-established brands
as well as emerging startups, which increases the pressure to maintain its
market position.
9|Page
• Regulatory Challenges: The food industry is subject to various regulations
concerning food safety, labeling, and advertising. Ensuring compliance with
these regulations can be intricate and expensive for Almarai. Furthermore,
any shifts in regulatory requirements can affect the company’s operations
and profitability.
4- Core competencies of the company
Core competencies refer to the main skills and capabilities that distinguish a
company or organization from others and help it achieve its goals and excel
in the labor market. Core competencies reflect the unique capabilities that a
company possesses, which enhance its competitiveness and ability to
achieve success. Core competencies vary from one company to another
depending on the nature of the industry and market needs, but for Almarai
Company, the core competencies that distinguish Almarai Company are:
Product Quality: Product quality is one of Almarai’s key competencies. The
company adheres to strict standards in production and quality control
processes to ensure the provision of high quality and reliable products to
customers.
Food Safety: Almarai Company places food safety at the core of its
priorities. The company adopts advanced practices and modern technologies
to ensure product safety and compliance with health standards and
applicable legislation.
10 | P a g e
Innovation and Development: Almarai Company seeks to innovate and
develop new products that meet customer needs and are compatible with
food and consumer developments. The company invests in research and
development to improve its operations and introduce new and innovative
products.
Sustainability: Sustainability is an essential part of Almarai’s strategy. The
company works to achieve environmental and social sustainability by
adopting environmentally friendly practices and strong social responsibility
in its operations.
Distribution and Marketing Channels: Almarai Company has broad and
effective distribution channels that enable it to deliver its products to
customers in local and international markets. The company relies on strong
marketing strategies to promote its products and increase customer
awareness of them.
Competitiveness: Almarai Company has a strong competitive ability in the
dairy products and food industry. This capability is based on the company’s
commitment to quality, innovation, operational efficiency and sustainability
orientation.
Global orientation: Almarai Company seeks to expand its global presence by
investing in international markets and developing strategic partnerships. The
company is consolidating its position as a global player in the dairy and food
industry.
11 | P a g e
It is important that these competencies are developed and enhanced to
achieve sustainable success in business.
5- Types of Business Models:
Almarai, a leading food and beverage company, has a business model that emphasizes “Quality
you can trust.” The company switched from a functional to a business unit model, allowing each
business unit to have end-to-end sales, profitability, and return on Net Operating Assets
(RONOA). The Almarai Quality 4.0 program covers process, people, and technology,
demonstrating Almarai’s commitment to quality. The core values of the company (ASPIRE) are
inextricably linked to its world-class quality management system. Sales, Distribution and
Logistics, Procurement, and other corporate functions support Almarai’s business units. In
addition, the company has an exports team to expand sales opportunities outside of the Gulf
Cooperation Council (GCC) region.
1. B2C (Business to Consumer): Almarai Company’s most common business model is to
sell its dairy, juice, bakery, poultry, and infant nutrition products directly to consumers
via its extensive distribution network. Almarai Company enjoys a strong brand presence
12 | P a g e
and consumer loyalty in the Middle East and beyond, and it strives to provide highquality products that meet their needs and preferences.
2. B2B (Business to Business): This is another important business model for Almarai
Company, as it supplies its products to other businesses such as hotels, restaurants, cafes,
catering companies, and supermarkets. Almarai Company also provides customized
solutions and services to its B2B customers, such as product development, packaging,
and delivery.
3. M-Commerce (Mobile Commerce): This is a relatively new business model for
Almarai Company, as it leverages the growing use of mobile devices and applications to
reach and engage with its customers. Almarai Company has launched its own mobile app,
Almarai Plus, which allows customers to order products, access promotions, earn
rewards, and provide feedback. Almarai Company also uses social media platforms such
as Facebook, Twitter, Instagram, and YouTube to communicate with its customers and
showcase its products.
13 | P a g e
6- Challenges faced by the company during the COVID-19 pandemic
1. Disruptions in the Supply Chain: The pandemic resulted in disruptions in
global supply chains, which included restrictions on transportation and
lockdown measures. Almarai, as a company heavily reliant on the import of
raw materials and distribution networks, faced difficulties in ensuring the
timely availability of inputs and delivering products to customers. These
disruptions led to delays in production and increased costs related to
logistics and inventory management.
2. Changes in Consumer Behavior: The pandemic caused significant shifts in
how consumers behave, such as a preference for online shopping and an
increased need for essential food items. To adapt, Almarai swiftly increased
its online presence, expanded its delivery capabilities, and adjusted its
product offerings to meet the changing demands of consumers. However,
accurately forecasting demand and managing stock levels proved
challenging due to fluctuating consumer preferences.
3. Food Safety and Hygiene Measures: As a food producer, Almarai had to
implement strict measures to ensure the safety and well-being of its
employees and customers. These measures included implementing social
distancing protocols, enhancing sanitation practices, and conducting regular
testing. Although necessary, implementing these measures incurred
additional costs and required operational adjustments, impacting the
company’s profitability.
14 | P a g e
4. Amidst the pandemic, there was a rise in economic uncertainty, which
resulted in job losses, reduced incomes, and overall financial instability for
consumers. As a result, consumer spending patterns shifted and purchasing
power decreased, prompting a move towards more price-conscious buying
decisions. Almarai had to navigate the delicate balance between remaining
competitive in terms of pricing while also maintaining profit margins.
Additionally, the company had to adapt its marketing strategies to address
the changing priorities of consumers.
5. Governments implemented various regulations and trade barriers to
manage the pandemic, which had an impact on Almarai’s operations. These
included restrictions on movement, import/export limitations, and
modifications to customs procedures. In order to remain compliant and
effectively adapt to evolving trade policies, the company had to demonstrate
agility and proactively engage with government authorities.
Despite these obstacles, Almarai persevered and continued its endeavors.
During the pandemic, Almarai showed resilience and flexibility. The
company took steps to protect its employees’ health, improve its supply
chain, and adjust its product range according to consumer needs. By utilizing
its reputable brand and loyal customer base, Almarai successfully
maintained its market position and continued to serve its customers despite
the difficult circumstances.
15 | P a g e
References:
Hanaysha, J. R. (2023). Almarai Company: Regional Growth in the Arabian Gulf
Market. Emerging Economies Cases Journal, 25166042231179656.
AL Zubaidi, A., & Nobanee, H. (2020). Performance Analysis of Almarai. Haitham
and Nobanee, Haitham, Performance Analysis of Almarai (August 16, 2020).
Foley, S. (2014). When Collision Emerges as Unexpected Harmony: Saudi
Responses to the Arab Spring. Contemporary Review of the Middle East, 1(1),
53-74.
Hanaysha, J. R. (2023). Almarai Company: Regional Growth in the Arabian Gulf
Market. Emerging Economies Cases Journal, 25166042231179656.
Mohamad, K. A., & Asfour, A. M. (2020). Is the business in Saudi market
sustainable? Case study of Almarai. IIUM Journal of Case Studies in
Management, 11(2), 7-14.
Farrell, C. (2017). Innovation’s Changing Landscape: Do Innovative Firms
Engage in Sustainability-Inspired Innovation?.
Park, Y. E., & Alenezi, M. (2018). Predicting the popularity of Saudi multinational
enterprises using a data mining technique. Journal of Management Information
and Decision Sciences, 21(1), 1-14.
Shaban, M. I. J. (2021). The Impact of Effective Business Continuity Plan on
Organizational Performance During COVID19 Pandemic: The Case of Jordan
Telecommunication Group (JTG)/Orange (Doctoral dissertation, University of
Petra (Jordan)).
16 | P a g e
Almarai Co – Strategy, SWOT and Corporate Finance Report (marketresearch.com)
Almarai Company Recieves Pandemic Prepared Certification – BevNET.com
17 | P a g e
Purchase answer to see full
attachment
