The main business of Pioneer Foods is te production, distribution, marketing and selling of a huge range of food products and beverages for the consumption of human and animals alike.

The organisation was formed in 1997, the result of two farming co-operatives, Sasko and Bokomo becoming one. After the merger the company embraked on a series of acquisitions and joint-ventures, as well as in-house product innovation.

Within ten years after the successful merger between Bokomo and Sasko, the group trebled in size. The excellent growth and performance of the organisation over the years after the merger had ensured a variety of household brands across almost every food and beverage product segment. Being listed on the Johannesburg Stock Exchange (JSE) was the obvious thing to do, given the potential advantages (the provision of a larger shareholder base).

Pioneer Foods, one of the most significant players in Southern Africa’s food and beverage industries listed on the JSE on 22 April 2008.

Today the business operates through its four main divisions. Sasko manufactures a range of affordable grain-based staple foods, including maize, rice, beans and lentil products.
Bokomo produces some of South Africa’s best known bnreakfast cereals.
The Agri business which produces poultry and animal feeds.
The Ceres Beverage company which is one of the largest producers of fruit juices, soft drinks (ie. Pepsi).
Pioneer Foods also have international joint ventures with the likes of Heinz Foods from the USA and, Bowman Ingredients from the UK.

Organisational Structure

Diagram

Strategy
Pioneer Foods operates within a competitive industry. As a result their product mix is well diversified, with the majority of their brands being either number one or two in their respective categories.

Their strategy is based on growth, which they have ensured over the years with household rands across almost all food and beverage segments.

The following are part of their strategy going forward:
To increase manufacturing capacity to benefit from the growth in consumer spending in South Africa.
To become more innovative, through the use of technology and new product development (NPD).
Acquire brands which will compliment their current businesses.
Driving transformation throughout the business. The company’s vision is: To be a leading food and beverage company through globally trusted brands.

Environment?
Pioneer Foods and all its operating divisions are committed to the provision of quality food products that comply with legal and statutory requirements. Significant investments are made in Information Systems, information technology, and research and developments.

One of the pioneering initiatives that the group is investing in, is the development of an Integrated Management System. This system aims to integrate management systems and business processes- i.e. environmental management, food safety and people safety.

The work/office environment is one where an open door policy applies. Subordinates can walk into their superiors’ offices without an appointment. With offices all over the country, and a head office in Paarl, it is easy to have access to top management.

Employees are encouraged to take risks, and make decisions within certain parameters. Red tape in decision making does exist, which might cause delays in the process of taking the actual decisions. The organisation invest huge amounts of money into the training and developmental needs of its employees (R5.2 billion for its current financial year). The organisation believes in socio-economic development, supporting a range of community projects.

Organisational culture
Pioneer Foods’ culture is crafted from its rich South African roots, and is continuously nurtured to enable long term sustainability. The core values which shape the organisation’ behaviour are: adaptability, accountability, commitment, integrity, passion and consumer focus.

Strategic information systems
They use SAP (Systems Applications and Products) and BI (Business Intellegence)
The original idea with SAP was to provide customers with the ability to interact with a common corporate database for a comprehensive range of applications.
SAP providesthe capability to manage financial, assets, production operations and materials, personnel, and even archived documents.

BI: Computer based techniques used in the identification, extraction and analysis of business data, such as sales revenue by products and/or departments, or by associated costs and incomes.

This technology provides historical, current and predictive views of business operations. It aims to support better decision making. BI uses technologies, processes and applications to analyse internal, structured data and business processes (I have BI examples).

SAP ERP (Enterprise resource planning) gives the organisation the tools to manage strategic planning, monitor their key performance areas and analyse operations to spot trends quickly.
SAP CRM (Customer Relationship Management)
Enables the organisation to understand customer entitlements and deliver the right level of services, and transform service from a cost center to a profit center.

SAP Risk management
Allows the organisation to identify, mitigate, and manage risk so that it can increase visibility into the impact of risks. Helps reduce cost and risk across strategic initiatives, and increase the organisation’ strategic effectiveness.