1. Abstract
Now days, information technology plays a big roles in run the businesses. Using information technology helped the business to growth faster than before. Every business needs information technology to improve the efficiency, make new products, build strong relationship with customers and suppliers, improve decision making and to be the best between the competitors and to be exist in the market. This report represents the role of information technology in Almarai Company in form of the six strategic business objectives. It applies how almarai uses information technology to increase the customer satisfactions and value of the company to gain high profit.
2. Introduction
2.1 Company's background
Over the years, Almarai has become a leading in dairy field and other foodstuff. It was established in 1977 by Prince Sultan bin Mohammed bin Saud Alkabeer .it's began commercial Operations in Saudi Arabia by opening a first manufacturing facility is located in Riyadh . In addition, it is the largest company to produce and distribute food and beverage in Saudi Arabia. It is the number one fast- moving- consumer- goods brand (FMCG) in the Middle East and North Africa. Moreover, it continues to provide healthy products with high quality to customers of all age. It has expanded its portfolio to include juices, bakery, poultry and infant formula under the brand names Almarai, L'Usine, 7 Days, Alyoum and Almarai Nuralac. (almarai.com,2015)
2.2 Vision
'To be the consumers' preferred choice by leading in chosen markets with superior food and beverage products'. (almarai.com,2016)
2.3 Mission
'To provide quality and nutritious food and beverages those enrich our consumers' lives every day'. (almarai.com,2016)
2.4 Values
' Adaptable
' Passionate
' Sharing
' Innovative
' Respect
' Excellence
2.4 The purpose of almarai
To provide the customers with high quality and health food
2.4 organization structure
The structure of the company represents different levels of authority and responsibility. 'Almarai's policies and procedures has standardized and has tended towards a centrally controlled structure. The senior management of each division consists of a team of experienced, capable Professionals, led by a Divisional General Manager. The Divisional General Managers report to the Chief Executive Officer'. I made the hierarchy based on almarai report it contains of the board of directors and general managers. Please refer to appendix A to see the hierarchy.( cma.org.sa,2011)
3. Procedure
4. Strategic Business Objective
4.1 Operational Excellence
Almarai considered as a largest food and beverage manufacturer and distributor. Almarai seeks to improve the efficiency of its operation by offering high quality product and by effectively managing on efficient supply chain to get high profit at lower cost-per units. It focuses on three steps: first, deliver the highest quality feed to its livestock. Second, high- tech and efficient manufacturing that apply high safety and health standards which helping to reduce the consumption of water and electricity. Finally, maintaining the distribution network and controlling the safety of vehicles and drivers to make sure those products deliver to retailer and customer in a good quality to improve cost efficiencies. (almarai,2015)
4.2 New product, service, and business models
Almarai designed its business models to maintain quality and excellence in execution. Almarai had automated milking technology as a result of this technology Almarai saves time and effort in milking their cows with lower costs by limit the number of labor.
In 2015, Almarai started to work on integrating the European foundation of quality management (EFQM) to reach high levels across all divisions. Also, It tries to make new products to meet customer needs. It produced new products such as white sandwich, wraps apple strudel, chicken stir fry and sliced milk bread (to see more details please refer to appendix B).
4.3 Customer and Supplier intimacy
The most important elements for the company are customers and suppliers. Every company tries to build strong relationship with customers and suppliers. When they know their customers and serve them well that will make the customers purchasing more and more. This will increase the profit and the value of the company. The same thing with supplier, when the company attracts more suppliers it will get lower costs. Almarai provide a high quality and healthy product and it cares about health and hygiene and that was made the customers trust on Almarai.
4.4 improve decision making
In the past,' managers did not have access to accurate and current data, and that cusses raising costs and lost customers '.Now IT and Technology make it possible to take accurate data. Almarai created a website to contact with customers to know their preference , listen to their needs and requirement and responding to them in real time and that will improve decision making by providing or improving new products and new services .( misnotesformba,2015)
4.5 Competitive advantage
Almarai competitive advantage lies in its four dairy farms which shelter more than 60,000 cows. The dairy farms contain feedings areas that provide best Conditions to protect the animals from heat that exceed 120 degree in the summer. Each cows of Almarai produce approximately 12,400 liters of milk per year. In addition, Al Ain Dairy Farm which is a competitor to Almarai and known as the largest dairy company in UAE produces about 10,000 liters of milk per year. Moreover, Almarai's capital investments objective to use the most advanced technologies to enhance quality products and increase production efficiency by using advanced technologies that Help to reduce costs and Provide a high quality products with competitive prices.( Bloomberg.com,2013)
4.6 Survival
Almarai continues to live or exist by:
' AlMarai must be vigilant for other companies competing in a number of production.
' Make new products or services.
' Improve the performance of employee and rewarding them.
' Use more advanced technology in production.
' Make a lot of Advertisements.
' Maintaining her position in the list of food and dairy Saudi companies by maintaining the nature and the quality of its products.
' Increased the emergence of the Company in advertising their products in social media such as YouTube and Face Book and this increases the fame of the company's products and attracts the customers to buy the product.
5. Conclusion
In conclusion, Almarai improves its performance by using information system and applied the six strategic business objectives. It provides different products to different categories. In addition, Almarai advertised their products in social media to attract the customers to buy the product. It tries to be the best choice to the customers.