MNG2602 case study for Assignments 01 and 02 of semester 2 PICK N PAY Introduction Pick n Pay is a retail business in the fast-moving consumer goods industry and its offerings include groceries, clothing and general merchandise, as well as other value-adding services to cater for its customers’ expectations and evolving needs. To ensure a convenient and accessible shopping experience, Pick n Pay operates across multiple store formats, both franchised and owned, under three brands. One of the Pick n Pay Group’s brands is Boxer, a “one-stop shop” for middle to lower income shoppers in South Africa and Eswatini. Boxer is fast becoming Southern Africa’s leading limited-range discount supermarket. The first store opened in KwaZulu-Natal in 1977. Pick n Pay acquired Boxer in 2002. In 2004, a new trading format was opened, Boxer Build stores, which stock a wide range of competitively priced hardware and building materials for the DIY market, home builder and commercial builder. Customers are at the heart of Pick n Pay’s business and consumer sovereignty informs everything they do. Furthermore, they are committed to environmental, social and corporate governance that is built on the principles of honesty, integrity and accountability. Their purpose is stated as: “We serve. With our hearts we create a great place to be. With our minds we create an excellent place to shop”. Pick n Pay management Pick n Pay’s headquarters are located in Cape Town, South Africa. The top management team consists of the chief executive officer, Pieter Boone; the chief financial officer, Lerena Olivier; and the chairman of the board, Gareth Ackerman. This team is a dynamic group of people, each bringing his/her own strengths to Pick n Pay’s top management. As a team, they interact to share information and make decisions that will help each member to perform within his/her own area of responsibility. People, culture and diversity at Pick n Pay Pick n Pay is committed to building a high-performance culture that rewards efficiency and productivity. The board continuously monitors the work being done by the Pick n Pay Group to achieve a diverse workforce at all levels. They are currently expanding their recruitment pool even further as more stores open and offer new employees diversity training during the compulsory induction programme. During the induction training, newcomers are also given a blue or red t-shirt with the well-known “Pick n Pay” logo on; told about how Raymond Ackerman, the founder, started the Pick n Pay Group; and they are taught the terminology and vocabulary that are used among Pick n Pay employees. The induction programme and weekly team meetings in store contribute to a culture of rewarding efficiency and productivity which, in turn, leads to increased employee motivation and a strong corporate image for the Group. Pick n Pay aims to build a better and more sustainable business with more opportunities for all employees. The research and development (R&D) department is an example of how Pick n Pay’s culture manifests in the workspace. Mr Cassim is the department’s director and Ms Mothupi is the experienced and dynamic departmental manager. Ms Mothupi drives productivity, but never at the expense of her employees. She provides an example for her employees to follow; and her department is renowned for excellent outputs and a positive team spirit among employees. She believes in consulting her employees when complex issues arise, as their inputs have led to creative problem solving. Ms Mothupi’s department comprises of 30 fulltime employees managed by three line managers who are each responsible for ten employees. The first line manager, Ms Riley, is a quick thinker and good at dealing with difficult or unexpected problems in the department. She is highly creative and able to think outside the box. Ms Nel, although introverted, is intelligent, reliable and efficient. She is a practical person who turns ideas into action. In contrast, Mr Ndzunga is extroverted and sociable and liked by all his subordinates. He is outgoing and enthusiastic and is usually the one to develop and engage important business contacts. Pick n Pay School Club Now in its 19th year, Pick n Pay School Club is the largest brand-funded educational resource programme in South Africa, reaching over 110 000 teachers, 2.4 million learners and 3.5 million guardians in 3 185 urban, suburban and rural schools across South Africa. The footprint continues to grow as they open new stores and identify local schools to register. In 2021, the Pick n Pay School Club provided 20 000 learners across 41 primary schools with a PnP pencil bag made from a 500 ml recycled plastic bottle. Andre Nel, head of sustainability at Pick n Pay, stated that a growing focus at schools is encouraging positive behaviour towards recycling, and that this project can help drive good recycling habits from a young age. Lumka Poswayo, a sustainability manager at Pick n Pay, was in charge of the pencil bag project. She built a supportive social network among the entire set of collaborators who all had diverse standards, obligations and views. She stated: “People are the most essential part of this project, and the most essential factors for this project’s management are teamwork, communication, leadership, negotiation, problem solving, and conflict management”. In conclusion, it is evident that Pick n Pay believes that sustainable businesses have an important role to play in the building of sustainable communities. Pick n Pay’s long-term strategic plan also remains focused on delivering an exceptional customer offer, which includes sustained improvements in range, quality, price, availability and service. Adapted from Boxer. 2022. Boxer Build. Available from: www.boxer.co.za/?slug=division-details&article_id=27 [Accessed 7 June 2022]. Pick n Pay. 2021. Corporate Governance Report. Available from: www.picknpayinvestor.co.za/downloads/annualreport/2021/Pick n Pay -corporate-governance-report-new-10-06-2021.pdf [Accessed 7 June 2022]. Pick n Pay. 2021. Integrated annual report. Available from: www.picknpayinvestor.co.za/downloads/annualreport/2021/pick-n-pay-iar-new.pdf [Accessed 7 June 2022]. Pick n Pay. 2022. Leadership. Available from: https://picknpayinvestor.co.za/leadership [Accessed 7 June 2022]. Pick n Pay. 2022. ESG performance summary and databook. Available from https://www.picknpayinvestor.co.za/downloads/doing-good/sustainable-living-report/2022/picknpay-interactive-esgreport-spreads.pdf [Accessed 16 March 2023]. Pick n Pay School Club. 2021. Learners receive pencil bags made from plastic bottles. Available from: https://www.schoolclub.co.za/project/learners-receive-pencil-bags-made-from-plastic-bottles/ [Accessed 16 March 2023]. Pick n Pay School Club. 2023. About us. Available from: https://www.schoolclub.co.za/about/ [Accessed 16 March 2023]. Pick n Pay School Club. 2023. Our Team. Available from: https://www.schoolclub.co.za/team/ [Accessed 16 March 2023]. Disclaimer We try our best to include real-world information and facts in the case studies we use. However, in order to assess your knowledge on a variety of topics covered in the syllabus, fictional information has been included. Access the company’s website and download their integrated reports for a true reflection and background of the company, its milestones and how it operates.
