Bidvest Corporate strategy

Topics: Strategic management, Management, Business model Pages: 14 (4428 words) Published: October 13, 2013


Module code: EDPSDGN

Group Assignment due date: 15 August 2013

Lecturer: Prof Peet Venter


Carry out a research on Bidvest Group and analyse its corporate strategy. Further analyse its approach to international/global business.

Maximum length: 15 A4 pages, Times Roman 1,5 spacing, 12 pt font

Table of Contents
1. Executive summary
2. Introduction
3. Bidvest’s Key Success Factors
a) Leadership of original creator
b) Decentralised corporate management approach
c) Business acquisition model
d) Flair for entrepreneurship
e) Healthy organizational culture; a diversified product/service offerings f) Adding value by building a reputation for quality reliability and innovation g) Quality of Bidvest brand
h) Bidvest’s philosophy is one of transparency, accountability, integrity, excellence and innovation i) Product innovation
j) Strategic Innovation
4. Corporate and Business strategy
5. Porter’s Diamond of National Competitive advantage
i. Business strategies and structures and rivalry
ii. Existence or lack of related and supporting industries
iii. Factor conditions
iv. Demand conditions
6. Conclusion
7. References
1. Executive Summary
Bidvest is a South Africa-based distribution services and trading business and the largest foodservice business outside North America. The group is active in freight management, outsourced services, industrial and commercial products and services, printing, packaging closures, stationery, office products, corporate travel and automotive retailing. Bidvest is listed on the Johannesburg Stock Exchange, with over 105,000 employees on four continents. .The group is also highly debt-averse – a position it is able to maintain through its ability to generate cash. This assignment firstly provides an introduction into who is Bidvest and provides a broad and critical evaluation of Bidvest strategy.

The group used approach that evaluated Bidvest started with highlighting the key success factors of Bidvest. Secondly we used the two competitiveness models, firstly the generic business strategies which are also supported by Porter for possible use in adoption to gain competitive advantage model and Porter's diamond model. From investor perspective Bidvest shares are very appealing for their stability and or growth and for anyone who is in the market for a job, they will not go wrong with Bidvest. Lastly any small innovative struggling company out there who would like to will like to be on the shoulders of a giant they should not look elsewhere.

2. Introduction
The Bidvest Group started as an idea to raise capital to acquire, fix and develop underperforming services business by Brian Joffe. Joffe consolidated what was a highly fragmented support services sector and created the enabling working conditions for people to enjoy their work and flourish. It started with the acquisition of Chipkins Catering Supplies in 1988 Bidvest was founded by Mervyn Chipkin and Brian Joffe in 1988 via an R8 million cash shell (a little over US$1 million in 2011 rands). The shell was a fast-track to a 1989 stock exchange listing. The next acquisition was the purchase of Sea World frozen foods. Bidvest listed on the JSE and its appetite for acquisitions has been insatiable ever since.

Since then, Bidvest acquired a range of companies in diverse sectors from hygiene services to sports marketing to logistics to stationery. The group's international expansion began in 1995 when it acquired 50.1% of Australian Stock exchange listed Manettas. This business was renamed to Bidvest Australia. Bidvest has a small corporate office to give strategic direction, pursue strategic growth opportunities, support divisions, monitor performance, and maintain the entrepreneurial spirit and a red-tape free environment. 8...

References: 8th August 2013
According to Michael Porter on his work on firm-level factors (1986) and clusters of firms (1990) competitive advantage is created and not inherited
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