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Performing Management

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Performing Management

Company Overview

Founded in 1977, Almarai Company has grown in leaps and bounds to become the largest integrated dairy company in the world. Almarai was founded by two Irish brothers, Alistair and Paddy McGuckian. Initially, the company had 350 cows. However, in the past three decades, the company has expanded its operations dramatically. It currently, has more than 200,000 cows across the globe. Almarai specializes in the manufacture and distribution of foods and beverages. Its headquarters are in Riyadh, Saudi Arabia. Almarai uses acquisitions to expand its operations. The company has a reputation of providing quality products that are unmatched in the gulf regions where it operates. In addition, Almarai is committed to healthy living. It provides its customers with the freshest and most delicious products. The products of Almarai include yogurt, dairy, juices, bakeries, poultry, and infant formula. Vertical integration necessitates the quality standards of products to be achieved at evert stage. Almarai sources ingredients from across the globe after which they are processed in the company’s manufacturing facilities in Saudi Arabia, Jordan, and Egypt. The company has increased its presence in the Middle East region since it was listed in the Tadawul stock exchange. It has also reduced its reliance on sales in the Saudi market. Product diversification has also reduced the dependence of the company on the dairy range of products.

Mission Statement

Almarai’s mission statement is “To provide quality and nutritious food & beverages that enrich consumers’ lives every day” (Almarai, 2020).

Vision Statement

Almarai’s vision statement is “To be the consumers’ preferred choice by leading in chosen markets with superior food & beverage products” (Almarai, 2020).

Critique of the Mission Statement

Almarai’s mission and vision statement align with the company’s values. Adaptability, innovativeness, sharing, respect, passionate, and excellence are the values of the company. Adaptability requires the company to be agile and flexible in its work and take bold decisions that benefit its stakeholders. Innovativeness requires the company to be driven to improve its business every day and maximize the creative potential of its employees. Sharing requires the company to work together as one through open collaboration and sharing of skills and knowledge to enables its employees and stakeholders become the best. Passion requires the company to be proud in what it does and continuously strive for exceptional results. Respect involves embracing the principles of fairness, trust, and integrity in the relationships of the company with its stakeholders. Finally, excellence requires the company to be diligent in its work and consistently delivery the best quality in all it does.

Almarai’s mission statement is a true reflection of how customers feel about its products. Almarai has consistently been ranked as one of the most popular brands not only in Saudi Arabia but also the entire Middle East. It is market leader in the sale of dairy products in the region. Almarai controls more than 40% of the dairy market in the gulf region. This is an indication that the customers of the company appreciate the high quality and nutritious products of the company. The company also ensures it adheres to its value in how it relates with its customers and other stakeholders. This has helped it maintain its image and reputation as a world-class Saudi company. Almarai has acquired several businesses to enable it improve the quality of products it provides its customers. Land purchases enable the company to expand its farming operations. For instance, in 2016, the company purchased approximately 14,000 acres of land in California, USA, which enabled it to expand its farming operations in the country (Mohd Qtaishat & Al-Hyari, 2019).

Halwani Bros Company is one of the major competitors of Almarai. The company specializes in the manufacture and distribution of food products. It was founded in 1950. Its headquarters are in Jeddah, Saudi Arabia. The main products of Halwani Bros are halawa, cream cheese, pasterma, smoked turkey breast, date mamoul, and beef mortadella. The company is popular due to the high quality and wonderful taste of its products. In addition, having 100% natural products has increased the popularity of the company among health-conscious customers. The fact that Halwani Bros does not use any genetically modified foods, high quality of its products, delicious taste, and competitive pricing has increased its popularity among Saudi consumers.

The vision of Halwani Bros is “To be a premier food company, offering superior tasting, and high quality Middle Eastern food products to people around the globe” (Halwani Bros, 2020). The mission statement of Halwani Bros is “Together, we provide high quality food products by bringing innovative ideas and people who represent the highest standard of excellence, delivering sustainable growth to our shareholders” (Bayt, 2020).

The major difference between the Halwani Bros’ mission statement and the Almarai’s mission statement is that Halwani Bros’ mission statement acknowledges the impact of sustainable growth on its performance. On the other hand, Almarai’s mission statement only acknowledges the need to develop superior food and beverage products. The company does not mention whether its products are made using natural or synthetic products. This may have a significant impact on the performance of the company. It may make customers who do not like to consume genetically modified products to desist from purchasing Almarai’s products and opt to purchase Halwani Bros’ products since they are sure Halwani Bros products are made using 100% natural products something that cannot be said of Almarai’s products.

Halwani Bros’ mission statement also claims that the company strives to offer high quality Middle Eastern food products to people across the globe. In so doing, it differentiates itself from other Middle Eastern companies that sell food products. It limits the number of companies that can effectively compete with it on the global stage. On the other hand, Almarai merely offers high quality food and beverage products. Therefore, it can face competition from both Middle Eastern companies and other international food and beverage companies. However, having a global appeal also increases the market of Almarai’s products to people who would not like to consume Middle Eastern food products.

Conclusion

The mission and vision statements detail the focus of operations of an organization. They help in the development of strategies that improve the competitiveness of the organization. Therefore, it is vital to ensure the organization has the right mission and vision statement since the mission and mission statements guide the activities of an organization (Bora, Borah, & Chungyalpa, 2017). Almarai is the largest integrated dairy company in the world. Therefore, its mission and vision statement depict its position as the global leader in the provision of food and beverage products. On the other hand, Halwani Bros has a strong footing in the Middle East. Therefore, the company’s vision statement highlights its effort to differentiate itself from other companies in the industry to improve its competitiveness.

References

Almarai. (2020). Mission, Vision, and Values. Retrieved from: https://www.almarai.com/en/corporate/almarai/mission-vision-values/Bayt. (2020). Halwani Brothers Co. Retrieved from: https://www.bayt.com/en/company/halwani-brothers-co-307634/Bora, B., Borah, S., & Chungyalpa, W. (2017). Crafting Strategic Objectives: Examining the Role of Business Vision and Mission Statements. Journal of Entrepreneurship and Organizational Management, 6(1), 205-212.

Halwani Bros. (2020). Halwani Bros: About Us. Retrieved from: http://halwani.com.sa/index.php/company-info/

Mohd Qtaishat, W., & Al-Hyari, D. A. (2019). Cultural Language and Commercials: Cross-cultural Content Analysis of Commercials between Almarai and Real California Cheese. Journal of Language Teaching and Research, 10(3), 461-468.