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Pick n Pay – a scale business
R63bn turnover
7 countries
>1000 stores
50% Franchised
~100 000 employees
Estimated to have about 28.5%
market share of the top 4 players
in South Africa
1
FY14 results
“Make the customer Queen and she will make you King”
Core Philosophy 4 legs of a table
Our plan
3
Be ethical
Obey laws and
regulations
Be profitable
Contribute resources
towards community
development & welfare
Obligation to do what is
right, just and fair and to
avoid harm
Law is society’s
codification of right
and wrong.
The foundation upon
which all others rest
Economic Responsibilities
Legal Responsibilities
Ethical Responsibilities
Philanthropic
Responsibilities
Adapted from: Carroll, 1991
Be a Good
Corporate citizen
Multinationals
and large
South African
corporates, 55 Medium sized
South African
companies,
433
Small
companies,
1682
PnP corporate stores spend FY2014
Multinationals
and large
South African
corporates
68%
Medium sized
South African
companies
20%
Small
companies
12%
PnP corporate stores spend FY2014
ENTERPRISE DEVELOPMENT PROCESS
IDENTIFY
INDUSTRY
SOURCE
SUPPLIER
ASSESS
NEEDS
APPLY
MENTORSHIP
FINANCE
MARKET
ACCESS
Small Business
Incubator
To facilitate SMMEs’ and EMEs’ intro to
retail through mentorship, guidance and
support using the PnP structure
• 3 Tiers of support
•BABY < R5m
•TODDLER between R5m – R8m
•TEEN > R8m
•Giving Access to
Market and mentorship
for small entrepreneurs
Nontwenhle Mchunu
former chocolate supplier to PnP
• Coming together –
• empowering individuals,
• creating jobs,
• alleviating poverty
• Advice on and access to Financial assistance
Sibusiso Tshabalala – entrepreneur – charcoal supplier to PnP group
Cwebeni Project
• Specialised skills
developed
• Environmental impact
• Community participation
• Electricity and water
• Telkom connection
CHALLENGES TO ACCESSING
FUNDING
• Slow pace of process
• Complicated application process
• Conduit organisations/ agencies
• Response time adjusted according to size of applicant ( smme/ start ups
cannot afford to wait)
• Call centre system for advice and guidance
• Small business cannot navigate through the red tape
• Insufficient communication between market players
• Lack of flexible funding
OUR EXPERIENCES
• Dept of Agric partnership ( Siyasiza , Vrede, Food basket for
Africa, Dreamland Piggery )
• DTI funding options (Fairharvest )– timelines do not benefit
small business
• Lack of flexibility within parameters ( Rise uniforms )
• Govt contracts do not have favourable payment terms
Vrede, Free
State
Bana Bagwala,
Mpumalanga
Fairharvest Organic Farm, Limpopo
Fairharvest
Organic farm, Limpopo
ED PUBLIC / PRIVATE PARTNERSHIP
Access to market
•Off take
agreement
•mentorship
infrastructure
•Pack houses
•Transport
•equipment
Financing
•Working capital
Business management
•Accounting skills
•HR/labour
•Quality
•Preferential trading terms
Operational
services
•Distribution
•Merchandise
•marketing
Regulatory
environment
•compliance
Govt
PnP
PROPOSED SOLUTIONS
• Utilise different models for different categories
• Engage with all market players for a comprehensive
solution ( banks, retailers, agronomists, technologists
etc )
• Flexible solutions driven by business needs
• Limit media exposure until agreed size has been
achieved or sustainability guaranteed
HURDLES FOR SMME’S
• Compliance (Health / safety audit, SARS )
• FINANCE
• Business management skills ( business plan,
budgeting, cash flow)
• Capital investment ( buildings, boreholes, trucks)
• Infrastructure (Fencing, electricity and security)
“Some opportunities
only come along once
in a life time” Saraah, flower
supplier to Pick n Pay stores
• We have an obligation to
create opportunities
• Enterprise development
builds the nation,
empowers individuals and
helps meet demands of
society – Ackerman Pick n
Pay Foundation
OUTCOMES
• Firm commitment to growing ED in SA
• Clear guidelines , roles and responsibilities
• Efficient and effective PPP with deliverables
• ‘One-stop’ platform for Small Business
ED Process
Identify
industry
Source
supplier
Assess
needs
Source
mentorship
Funding
Access to
market
Monitor
and
measure
invest

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PnP Business Presentations Slide Show.ppt

  • 1. Pick n Pay – a scale business R63bn turnover 7 countries >1000 stores 50% Franchised ~100 000 employees Estimated to have about 28.5% market share of the top 4 players in South Africa 1 FY14 results
  • 2. “Make the customer Queen and she will make you King” Core Philosophy 4 legs of a table
  • 4. Be ethical Obey laws and regulations Be profitable Contribute resources towards community development & welfare Obligation to do what is right, just and fair and to avoid harm Law is society’s codification of right and wrong. The foundation upon which all others rest Economic Responsibilities Legal Responsibilities Ethical Responsibilities Philanthropic Responsibilities Adapted from: Carroll, 1991 Be a Good Corporate citizen
  • 5. Multinationals and large South African corporates, 55 Medium sized South African companies, 433 Small companies, 1682 PnP corporate stores spend FY2014
  • 6. Multinationals and large South African corporates 68% Medium sized South African companies 20% Small companies 12% PnP corporate stores spend FY2014
  • 8. Small Business Incubator To facilitate SMMEs’ and EMEs’ intro to retail through mentorship, guidance and support using the PnP structure • 3 Tiers of support •BABY < R5m •TODDLER between R5m – R8m •TEEN > R8m •Giving Access to Market and mentorship for small entrepreneurs Nontwenhle Mchunu former chocolate supplier to PnP
  • 9. • Coming together – • empowering individuals, • creating jobs, • alleviating poverty • Advice on and access to Financial assistance Sibusiso Tshabalala – entrepreneur – charcoal supplier to PnP group
  • 10. Cwebeni Project • Specialised skills developed • Environmental impact • Community participation • Electricity and water • Telkom connection
  • 11. CHALLENGES TO ACCESSING FUNDING • Slow pace of process • Complicated application process • Conduit organisations/ agencies • Response time adjusted according to size of applicant ( smme/ start ups cannot afford to wait) • Call centre system for advice and guidance • Small business cannot navigate through the red tape • Insufficient communication between market players • Lack of flexible funding
  • 12. OUR EXPERIENCES • Dept of Agric partnership ( Siyasiza , Vrede, Food basket for Africa, Dreamland Piggery ) • DTI funding options (Fairharvest )– timelines do not benefit small business • Lack of flexibility within parameters ( Rise uniforms ) • Govt contracts do not have favourable payment terms
  • 15. Fairharvest Organic Farm, Limpopo Fairharvest Organic farm, Limpopo
  • 16. ED PUBLIC / PRIVATE PARTNERSHIP Access to market •Off take agreement •mentorship infrastructure •Pack houses •Transport •equipment Financing •Working capital Business management •Accounting skills •HR/labour •Quality •Preferential trading terms Operational services •Distribution •Merchandise •marketing Regulatory environment •compliance Govt PnP
  • 17. PROPOSED SOLUTIONS • Utilise different models for different categories • Engage with all market players for a comprehensive solution ( banks, retailers, agronomists, technologists etc ) • Flexible solutions driven by business needs • Limit media exposure until agreed size has been achieved or sustainability guaranteed
  • 18. HURDLES FOR SMME’S • Compliance (Health / safety audit, SARS ) • FINANCE • Business management skills ( business plan, budgeting, cash flow) • Capital investment ( buildings, boreholes, trucks) • Infrastructure (Fencing, electricity and security)
  • 19. “Some opportunities only come along once in a life time” Saraah, flower supplier to Pick n Pay stores • We have an obligation to create opportunities • Enterprise development builds the nation, empowers individuals and helps meet demands of society – Ackerman Pick n Pay Foundation
  • 20. OUTCOMES • Firm commitment to growing ED in SA • Clear guidelines , roles and responsibilities • Efficient and effective PPP with deliverables • ‘One-stop’ platform for Small Business

Editor's Notes

  1. Total qualifying spend = R 46.8b Multinationals and large South African corporates = R31.7b (multinationals + South African companies that we spend more than R100m on) Medium South African companies = R9.4b (South African companies that we spend R35m-R100m on) Small companies = R5.6b (QSEs, EMEs and other suppliers that we spend less than R35m on)
  2. “Life is liking making chocolate, it is a refining process. One drop of water can spoil a whole batch. In the same way, a small amount of negativity or regret can spoil a life…”
  3. - Stories x 4 (30 seconds each)- Please let me know which 3 you'd like to spend a little more time on?- Focus story 1 (1 mins)- Focus story 2 (1 mins)- Focus story 3 (1 mins)- What we give them (accounting, mentors etc)
  4. “Some opportunities only come along once in a life time – If you don’t take the chance, it may never come along again… So make the most of every opportunity, and always do the things you love!”