The South African Breweries (SAB)

The South African Breweries (SAB) is a subsidiary of AB InBev. Founded in 1895, SAB is South Africa’s top brewer and leading distributor of beer.

For more than 120 years SAB has been an integral thread in the social fabric of our country and continues to play a crucial role in the national economy. The company operates seven breweries and 40 depots in South Africa with an annual brewing capacity of 3.1 billion litres. Its portfolio of beer brands meets the needs of a wide range of consumers and includes some of the country’s most popular beer brands ­namely Carling Black Label, Hansa Pilsener, Castle Lager, Castle Lite and Castle Milk Stout.

The movement towards ending the prevalence of youth unemployment in South Africa is currently underway and another organisation which has been aiding the country is The South African Breweries. The need to place the youth’s entrepreneurial spirit and creativity on display has been at an all-time high and SAB’s Kickstart Ignite programme is here to do just that.

SAB Kickstart is a programme which was developed in May 1995 as a poverty alleviation programme and subsequently evolved into 2 umbrella entities geared towards the development of youth entrepreneurship; these were KickStart Ignite and KickStart Boost. KickStart Ignite provides up-and-coming entrepreneurs, aged between 18 and 35 years, a foundation to begin their business through funding. The objective of KickStart Boost is to provide already established businesses assistance with expansion and support.

Kickstart Ignite holds a competition where budding entrepreneurs and innovators are invited to enter. Applications are opened from  4th September to 30th November.

For more information visit

By | October 20th, 2017|Entrepreneurship|0 Comments

The Strategy of People and Products: YES or NO?

On Monday we opened up a can of worms by looking at what growth strategies need to be implemented in a business for the people and products you manage.

This has created some debate with some of our clients and colleagues with many different opinions and ideas. As we add to this conversation, here is a 30-minute video of the webinar mast class on this topic for you to watch.

I would love to have your opinion and ideas: please comment or email us.

By | October 19th, 2017|Strategy|0 Comments

Service Industry Performance Measurement

We continue discussing performance measurement and this week we look at service industry performance measurement.

It is quite difficult to measure performance management for service industries for several reasons:

·         Production and consumption of the service happen at the same time.

·         A service cannot be stored. It must be provided when the customer wants it.

·         Goods manufactured may be identical but the quality of service varies from service to service. The quality of a  service can depend on several factors; i.e., talent, skill, passion for the job, work environment, disposition etc. This makes it difficult to measure the quality of a service.

·         A service has no physical features. Customers can pinpoint physical aspects and attributes of a product that they believe add value. For example the slick looks of a sports car; the curves and contours, the headlights, brakes, exhaust and engine sound.

Fitzgerald and Moon came up with the Building Block Model as a framework for service companies. It helps in designing a system for performance evaluation. There are three blocks of this model; –dimensions, standards and rewards.

Dimensions are aspects of performance which must be measured. Organisations need to identify performance measures using six dimensions, which are similar to the four aspects of the balanced scorecard. These are:

1.       Financial Performance

2.       Competitiveness

3.       Quality

4.       Resource Utilisation

5.       Flexibility

6.       Innovation

Quality, resource utilisation, flexibility and innovation impact future results, whilst financial performance and competitiveness result from past decisions.

Standards: Targets are then set for managers based on three measures:

1.       Ownership –managers should believe in the targets. Participatory budgeting motivates managers to perform.

2.       Achievability –targets should be challenging but also achievable. If too high, managers will be too motivated. Those responsible for results will always push for easier targets so there has to be a delicate balance.

3.       Equity –standards throughout the whole organisation should be uniform. Managers or employees should not individually negotiate targets as those more persuasive will always end up having easy targets.

Rewards Schemes: Performance can be linked to reward schemes by paying managers or employees bonuses if they meet the targets. The following principles apply:

·         Clarity –employees must understand how their performance is being measured.

·         Motivation –bonuses should be adequate enough to motivate staff to perform and reach the targets.        They should be linked to performance so that they do not become an entitlement.

·         Controllability –managers’ performance should be measured within their locus of control.If they can’t    control an aspect of company performance, then it will be unfair to use it to measure their performance.

By | October 18th, 2017|Entrepreneurship, Strategy|0 Comments

Strategy of People and Products

The third leg of our series on Strategy is on People and Products. This follows last week’s lesson on Purpose.

What strategy is required in order to leverage your Human assets within a business? It is not just about headcount or workforce: we need to consider the intellectual capital, wisdom, experience and relationships that come with each of your staff members.

The strategy implemented within a business should include the following:

·         Staff retention

·         Staff empowerment

·         Staff education

·         Legacy planning

Products and services within a business are also assets that need to be looked after and protected. Each different brand has a reputation in the marketplace, a following with the customers and a future of expansion. Strategies need to include the following:

·         Product brand development

·         Brand footprint expansion

·         Existing customer retention

·         Switch over customers per brand

·         New customers per brand

·         Associated or bundled up-sell potential

·         Income diversification per product

All these may seem a little overwhelming and unattainable if you are new to all this, but these are the things that should be on the agenda of directors meetings and a part of the long-term strategic planning for any business.

We will, of course, expand on these during our weekly webinar on Wednesday. Go here to register that.

Any questions or want some help with this, please give us a call or click to make an appointment in person or via Skype.

By | October 16th, 2017|Strategy|0 Comments