English
Assignment 02 and assesses the outcomes in Lessons 4, 5 and 6
ASSIGNMENT 02 SEMESTER 01
Essay Total marks: 50
Instructions
Read the following case study and answer the questions that follow in an essay
format of 2 500 – 3 000 words (maximum of 10 pages)
1. Start the essay with an introduction.
2. Each question should be answered in a separate paragraph with a clear
heading/sub-heading.
3. When answering the question, begin with a theoretical overview based on the
prescribed material and additional resources and then apply the theory to the
case study.
4. Use in-text citations to acknowledge your sources and include a full list of
references.
5. End your essay with a conclusion.
6. All the questions should be answered as part of the essay with one
introduction, a body and one conclusion
RCL foods
While Rainbow Chickens is a familiar household brand in many South African
households, the parent company, RCL, may not be so recognisable. Yet, RCL Foods
is a leading African food producer in South Africa with a market capitalisation of R16
billion, employing over 21 000 people in operations across South Africa, Swaziland,
Namibia, Botswana and Zambia. RCL distributes its branded and private label food
products through their route-to-market supply chain specialist, Vector.
History
RCL was established in 1891 as a small family-owned flour mill situated in Pretoria.
By 1916, RCL built its first animal feed mill and in 1960, Rainbow Chicken started its
operation on a humble farm in Hammarsdale with its first processing plant being
commissioned soon after. By 1965, their sugar mill operations in Malelane were
established. By 1989, Rainbow listed on the JSE and, in 2004, RCL acquired Vector
with the strategic intent to control and optimise its outbound supply chain. By 2013,
RCL acquired Foodcorp, one of South Africa’s largest food producers and then
changed its name to RCL Foods. By 2014, RCL acquired RSB Sugar and obtained a
49% share of Senn Foods Logistics, a Botswana-based logistics company. It
continued with its expansion into Africa and acquired a 33.5% stake in Ugandan
poultry producer, HMH Rainbow, and in 2016, acquired a 50% stake in Matzonox, a
waste-to-value operation. 2019 saw a 45% stake in L&A Logistics, a distribution
operation based in Zambia. RCL continues to expand its operations and footprint.
In line with their passion to provide more food to more people, more often, RCL sets
out to acquire several businesses with strong brands, which have enabled them to
diversify their offering and significantly enhance their reach. Such efforts result in
expanded product ranges which extend from essentials to top-end added-value
products.
Business model
Several significant opportunities exist in South Africa and the rest of Africa for RCL
Foods’ market share to expand across various food product categories. Their sizeable
portfolio of core categories enables them to reach a wide range of consumers and
diverse touch points through depth of distribution and strong market penetration. It
also contributes to growing their scale and cash flow as a basis for future strategic
growth.
With the above context in mind, their business model focuses on growing their revenue
and profit across both their core and added-value categories. In South Africa, where
they already have a wide market presence, they focus on maximising the potential of
their core categories (chicken, sugar, grains and animal feed) while accelerating
growth in a higher margin, added-value categories tailored to customers’ requirements
(food solutions, speciality products and pies) and their consumers’ needs (groceries,
baking, beverages and added-value chicken).
In the rest of Africa, they focus their efforts on first establishing a strong presence in
the four core categories, then on introducing added-value offerings as they build scale
in these markets. At the same time, they are looking to expand their markets across
South Africa and in the rest of Africa by acquiring new businesses or categories in line
with their ambition.
Vector is a key enabler in our business model, providing us with a dedicated and highly
efficient route-to-market service. As an integrated outbound supply chain business,
Vector’s sales, logistics and distribution capabilities will play a crucial role in delivering
on our business model while boosting efficiencies in line with our ambition. Going
forward, it is our intention that Vector will influence 100% of RCL Foods’ route-to-
market.
What makes RCL different?
RCL offers a portfolio of leading brands ranging from staples to top-end, added-value
offerings. They have an integrated business model that includes their own route-to-
market featuring an integrated outbound supply chain and world-class technology and
systems. RCL benefits from its significant size and scale, combined with
diversification, to counter cyclicality and provide a platform for expansion. They
recognise their management team's extensive knowledge and experience in the South
African food industry and their strong operational track record of delivering steady,
through-the-cycle revenue growth. In addition, their expansion into Africa through
several projects in sub-Saharan Africa is aligned with their low risk African expansion
strategy. Finally, Remgro Limited is a highly regarded strategic shareholder.
The RCL operating context
2021 has proven to be a challenging year across the board. RCL faced demanding
economic conditions brought about by the Covid-19 pandemic. Unemployment
continued to be a challenge and reached an all-time high of 34,4% in the second
quarter of 2021. South Africa produces more than enough food to feed its population,
yet one in five households has inadequate or severely inadequate access to food as
a result of poverty, largely due to unemployment. Rising food prices linked to input
cost hikes and exchange rate volatility present challenges to its business outlook. The
continued growth in world populations present large-scale food producers with
opportunities for growth, but the realities of increasing biodiversity loss, deforestation,
soil degradation, water scarcity and greenhouse gas emissions remain constant. At
the same time, the South African government began to enact certain food regulations
to limit exposure to high levels of sugar and salt. Consumer behaviour is always in flux
with more focus on value, with price and affordability becoming key factors in
consumer decision-making. Online shopping among higher LSM groups continues to
rise with an increased preference for foods perceived to be healthier.
Sources consulted.
https://rclfoods.com/our-business/who-we-are/ Accessed 18 July 2022
https://rclfoods.com/wp-content/uploads/2021/09/RCL-FOODS-Integrated-Annual-Report-2021-1.pdf
Accessed 18 July 2022
RCL FOODS Integrated ANNUAL Report 2021
Questions
1a Comment on the various methods to analyse the internal environment. 4
1b Use the information in the case study and conduct an internal 6
environmental analysis.
2 Explain the strategic importance of analysing the external environment 10
and critically discuss the various methods for external environment
analysis.
3 Using the information in the case study, conduct an analysis of the RCL 20
macro and market environment.
4 Identify the business level strategy of RCL and comment on its 5
appropriateness based on your findings in questions 1 to 3 above.
Technical requirements 5
isiZulu
I-ASAYIMENTI 02 Ivivinya ngokufundwe ezifundweni 4, 5 no 6
I-ASAYIMENTI 02 YESIMESTA 01
I-Iseyi Amamaki: 50
Imiyalelo
Funda umbhalo wocwaningo ongezansi bese uphendula imibuzo elandelayo.
Izimpendulo zakho masibe yi-iseyi, usebenzise amagama awu-2 500 kuya ku-3 000
(ungeqi emakhasini ayishumi)
1. Qala i-iseyi yakho ngesingeniso
2. Umbuzo nombuzo kufanele uphendulwe ngepharagrafu yawo
enesihloko/isihlokwana esizimele
3. Uma uphendula umbuzo, sebenzisa amathiyori owafundile ezincwadini
ezisetshenziswa kule mojuli, neminye imithombo ozitholele eceleni,
ukuhlaziya lo mbhalo wophenyo
4. Uma ucaphune emisebenzini yabanye abauntu, yisho ukuthi ucaphune
ndawophi. Ekugcineni bhala uhlu lwemithombo yolwazi oyisebenzisile
5. Vala i-iseyi yakho ngesiphetho
6. Yonke imibuzo kumele iphendulwe ihlanganise i-iseyi eyodwa enesingeniso,
umzimba nesiphetho esizodwa
7.
I-RCL Foods
Nakuba iRainbow Chicken iyigama elidumile uma kukhulunywa ngemikhiqizo
ethengwawo emakhaya iNingizimu Afrika yonkana, inkampani eyizalo, iRCL, yona
kayidumile kangako. Yize kunjalo, iRCL Foods ngabakhiqizi bokudla abahamba
phambili eNingizimu Afrika. Ihweba ngamasheya enani elilinganiselwa ku-R16 billion,
futhi inezisebenzi ezingaphezulu kuka-21 000 ezizinze eNingizimu Afrika, eSwatini,
eNamibia, eBotswana naseZambia. IRCL isabalalisa mikhiqizo yezinye izinkampani
neyayo isebenzisa inkampani engongcweti bokuhambisa impahla, iVector.
Umlando
I-RCL yasungulwa ngo-1891 njengenkampani yomndeni ekhiqiza uflawa ePitoli. Ngo-
1916, iRCL yakha indawo yayo yokuqala yokondla izilwane. Ngo-1960, iRainbow
Chicken yaqala ukusebenza epulazini elincane eHammarsdale, kwalandela nemishini
yokwenza nokuhlela imikhiqizo. Ngo-1989, iRainbow yaqala ukuwheba eJSE, kwathi
ngo-2004, iRCL yathenga iVector ngenhloso yokulawula nokuphucula ukuhanjiswa
kwemikhiqizo kumakhasimende. Ngo-2013, iRCL yathenga iFoodcorp, enye
yezinkampani ezinkulu ezikhiqiza ukudla eNingizimu Afrika, yashintsha igama yaba
yiRCL Foods. Ngo-2014, iRCL yathenga iRSB Sugar, yaphinde yathenga u-49%
wamasheya eSenn Foods Logistics, okuyinkampani yezokuthutha ezinze eBotswana.
Yaqhubeka nokudlondlobala e-Afrika, yathenga u-33% wamasheya enkampanini
yemikhiqizo yezilwane ezinezimpaphe, yase-Uganda, iHMH Rainbow. Ngo-2016,
yathenga u-50% wamasheya eMatzonox, okuyinkampani ehlela kabusha iphinde
ivuselele okubheke emgqonyeni. Ngo-2017 yaba no-45% wamasheya enkampanini
yaseZambia ethutha impahla iL&A Logistics. Namanje iRCL isaqhubeka nokusabalala
kwamanye amazwe.
Indlela yokuqhuba ibhizinisi
iRCL inamathuba amaningi okukhulisa isabelo sayo semakethe kwezokudla
eNingizimu Africa lokukhula kumikhakha ehlukene yemikhiqizo eNingizimu Africa
nase-Africa yonkana. Ubuningi bezinhlaka zale nkampani kwenza ikwazi ukufinyelela
kubathengi ezindaweni eziningi kusetshenziswa imizila yayo enozinzo yokuhambisa
impahla namandla okungena ezimakethe ezintsha. Kuyasiza nangokuthi ikhule,
ngokwanda nokushintshisana ngemali okuwumgomgodla wezinhlelo zayo zokukhula
kusasa.
Ngenxa yalokhu okubalwe ngenhla, indlela yabo yokuqhuba ibhizinisi igxile kakhulu
ekukhuliseni inzuzo emikhakheni yayo emqoka, nasemikhakheni yenzuzo
eyengeziwe. ENingizimu Afrika, la asebevele bekhonya emakethe yakhona, bagxile
eqiniseni imikhakha yabo emqoka (inyama yenkukhu, ushukela, izinhlamvu zezitshalo
ezisatshani nokokondla izilwane) nokwenyusa izinga lokukhula emikhakheni yenzuzo
eyengeziwe ehambisana nezidingo zamakhasimende (ukudla okulungisiwe
njengophaya, nemikhiqizo ekhethekile) nezidingo zawo (igilosa, ezokubhaka,
iziphuzo, nenyama yenkukhu enenzuzo eyengeziwe).
Kwamanye amazwe ase-Afrika, iRCL Foods igxile ekutheni igcwale ezimake futhi
yaziwe emikhakheni yayo eminingi, bafake kancane kancane imikhiqizo yenzuzo
eyengeziwe ngokuhamba kwesikhathi. Ngesikhathi esifanayo, le nkampani isafuna
ukuqhubeka nokusabalala eNingizimu Afrika nase-Afrika yonkana ngokuthenga
amanye amabhizinisi, nokwandisa imikhakha ehambisana nomgomo wayo.
I-Vector iwumgomgodla ezinhlelweni zethu zokuqhuba ibhizinisi, njengoba isenzela
umsebenzi obalulekile wokuhambisa imikhiqizo kumakhasimende. Inzuzo yeVector,
nokusebenza ngendlela kuzodlala indima ebalulekile ukuqinisa indlela yethu
yokuqhuba ibhizinisi nokuphucula ukusebenza kwenkampani ngokwesifiso sayo.
Kuyinhloso yethu ukuthi iVector yengamele zonke izinhlelo zeRCL Foods
zokuhambisa imikhiqizo emakethe.
Yini eyenza iRCL yehluke?
I-RCL iyinhlanganisela yezinkampani ezihamba phambili kusuka ezejwayelekile kuya
kwezihlinzeka ngemikhiqizo enenzuzo eyengeziwe. Inendlela yokuqhuba ibhizinisi
exubile ebandakanya ukuzithuthela imikhiqizo, emizileni yayo eminingi
kusetshenziswa nezinhlelo nobuchwepheshe besimanje. I-RCL idla ngokuba nkulu
nokuxhanta kwayo emikhakheni ehlukene, okwenza ingagidi ndawonye kodwa
iqhubeke nokusabalala. Bayakuqhakambisa ukuthi banethimba labaphathi elinolwazi
olujulile nesipiliyoni embonini yokudla eNingizimu Afrika, nomlando omuhle
ekungeniseni inzuzo elokhu iqhubeka nokukhula. Ngaphezulu kwalokho, ukusabalala
kwabo e-Afrika njengoba benezinhlelo eziningi e-sub-Saharan Africa kuhambisana
neqhinga labo eliwugadingozi. Okokugcina, iRemgro Limited ingumnini-masheya
osebenzisana neRCL ngendlela enobuchule.
Isimo iRCL esebenza ngaphansi kwaso
Unyaka ka-2021 ube ngonzima kakhulu kuzo zonke izinkampani. I-RCL ibhekane
nesimo ezinzima kwezomnotho ngenxa yobhubhane iCovid-19. Ukwentuleka
kwemisebenzi kuqhubekile ukuba yinselelo njengoba ngekota yesibili ka-2021
kufinyelele ku-34,4% okokuqala ngqa. INingizimu Afrika ikhiqiza ukudla okwenele
ukondla abantu abahlala kuyo, kodwa owodwa emindenini emihlanu awukutholi
ukudla okwanele ngenxa yobubha, okubhebhezeliswa kakhulu wukwentuleka
kwemisebenzi. Ukwenyuka kwamanani okudla okudalwa yikwenyuka kwezinsiza-
kusebenza nokwehla kwamandla emali kuyinselelo kumabhizinisi. Ukwanda
kwesibalo sabantu emhlabeni kunika izinkampani zokudla ithuba lokukhula, kodwa
ukufa kwemvelo, ukuphela kwamahlathi, ukucikelwa phansi komhlabathi, ukushoda
kwamanzi, nokungcola komoya ngezinye zezinselelo. Khonamanjalo, uhulumeni
waseNingizimu Afrika uqhamuke nemithetho emisha yokudla ehlose ukunciphisa
izinga likashukela nelikasawoti ekudleni okudliwa ngabantu. Ukuziphatha
kwamakhasimende kuyashintsha-shintsha, izinga lemikhiqizo, inani nokukuthengeka
kwayo kuya ngokuba yizinto ezibalulekile kumakhasimende uma ethatha izinqumo.
Kubantu abathe ukuba phezulu ngokwezinga lempilo, liya ngokwanda izinga
lokuthenga
kwi-inthanethi, futhi bathanda kakhulu ukudla okuthathwa njengokunempilo.
Imithombo esetshenzisiwe
https://rclfoods.com/our-business/who-we-are/ Icashunwe mhlaka-18 Julayi 2022
https://rclfoods.com/wp-content/uploads/2021/09/RCL-FOODS-Integrated-Annual-Report-2021-1.pdf
Icashunwe mhlaka-18 Julayi 2022
RCL FOODS Integrated ANNUAL Report 2021
Imibuzo
1a Phawula ngezindlela ezehlukene zokuhlaziya isimo sangaphakathi 4
enkampanini.
1b Sebenzisa umbhalo wocwaningo ongenhla ukuhlaziya isimo 6
sangaphakathi enkampanini.
2 Chaza ngokubaluleka kokuhlaziya ngobuchule isimo sangaphandle 10
inkampani esebenza ngaphansi kwaso. Chaza kabanzi ngezindlela
zokuhlaziya isimo sangaphandle.
3 Sebenzisa ulwazi olutholakala kulo mbhalo wocwaningo ukuhlaziya 20
isimo semakethe yeRCL.
4 Xoxa ngeqhinga lokuqhuba ibhizinisi leRCL bese uphawula 5
ngokufaneleka kwalo ngokubuka okutholile emibuzweni engenhla.
Indlela Umsebenzi Obekwe Ngayo 5
