The Company // Strategic business goals
 
 
 

STRATEGIC BUSINESS GOALS

Our strategic goals are central to drive the implementation and realisation of the Group’s strategy.

We have set clear goals for ourselves as we enter a phase of our journey towards perfecting the ‘Art of Service’. Believing that we are well equipped to realise key objectives and to meet whatever challenges the future may bring. We use both objective and subjective criteria to measure our ability to create value.

The following are the Group’s business divisions’ strategic business goals:

  • Traditional Retail
    Optimisation of retail efficiency and delivery of required return on revenue.
  • Cash Retail
    Product and service differentiation, store expansion and delivery of required return on revenue.
  • International Retail
    Store expansion and delivery of required return on revenue.
  • Financial Services
    Risk management, collection optimisation and delivery of required return on capital employed.
  • New Business Development
    New product and market development and delivery of required return on capital employed.

STRATEGIC BUSINESS GOALS OF THE OPERATING DIVISIONS
    Actual Target
  Objective 2007/8   2008/9   2010/11
  Traditional Retail
Optimisation of retail efficiency and delivery of required return on revenue		 2,1%   4,4%#   12,5%
return on revenue
  Cash Retail
Product and service differentiation, store expansion and delivery of required return on revenue		 5,7%   5,5%   7%
return on revenue
  International Retail
Store expansion and delivery of required return on revenue		 6,1%   6,9%   10%
return on revenue
  Financial Services
Risk management, collection optimisation and delivery of required return on capital employed		 12,8%   5,4%*   25%
return on capital employed
  New Business Development
New product and market development and delivery of required return on capital employed		 n/a   Loss   25%
return on capital employed
# Adjusted for restructuring costs of R29 million.
* Return = operating profit plus restructuring costs less interest on 50% of average gross book divided by capital employed (50% of average gross book).
 
     
 
 

GROUP OPERATIONAL STRATEGIES

 
  Strategy  
 

Customer centricity
Continuous focus to serve our existing and new customers with the best possible range of differentiated merchandise and financial services offerings, underpinned by excellent service.

  
 

Sustainable growth
Secure short and medium term business performance to satisfy stakeholders’ ensure future relevance and market growth.

  
 

Building and optimising people capacity
Creating and establishing a culture of continuous learning, leadership development and business performance.

  
 

Optimised technology enablement
Establish, maintain and grow technology capacities that will enable a differentiated customer experience and secure maximised business efficiencies.

  
 

Transformation
Driving transformation as a key imperative for the future success of South Africa and the Group.