STRATEGIC AND OPERATING CONTEXT
STRATEGIC FOCUS AREA
REORGANISATION OF
BUSINESS MODELS
Optimisation and improvement with respect to the group’s current
products and services, operational efficiencies, corporate and other
support services, as well as operational restructuring.
Objectives
� Optimisation of the current product and/or service offerings.
� Focus on improving operational efficiencies.
� Margin enhancement projects.
� Optimisation/improvement of existing infrastructure.
� Operational restructuring (addition of new business units or restructuring
of the current business units).
� Optimisation/improvement of corporate and other support functions
and/or services.
Top-of-mind risks
� Environmental, health and safety risk.
� Political and economic climate risk.
� Credit, liquidity and market risk.
� Commodity price risk.
� Information technology - systems and cyber risk.
� Urbanisation, scarcity and retention of skills risk.
� Transition and customer risk.
� Diversification and agricultural industry risk.
� Unique competitor risk.
� Regulation and compliance risk.
� Theft and fraud risk.
For more detail on top-of-mind risks, see p. 84
Looking ahead
� Creating value lies in constantly attempting to improve the basics.
Therefore the group will continue to subject its business
units and processes to analyses and investigations in order to
establish whether or not any enhancements, redesigns, restructuring
and/or the establishment of new business units/proces ses
are necessary.
� Improved and/or revamped product and/or service solutions.
Reflecting on the progress to date
Repositioned grain trading in Tradevantage in order to
develop into a national grain trading agent.
Roll-out of the new B-BBEE-strategy.
Senwes subjected some business units to an external process
of analysis and investigation. The business mo dels of
these units underwent total redesign and enhancement.
Senwes increased its appetite in the high probability trading
book and centralised this function.
Senwes launched its hedge fund into the market in
co-operation with Absa Bank during September 2016.
The loyalty scheme (AgriRewards) was implemented and
has been active since the 2017 reporting period.
Margin enhancement projects.
Established Hinterland Fuels (Pty) Ltd to take the fuel
strategy forward.
Established a Business Engineering division. Even though
this division will focus largely externally, it will maintain
some internal focus through the management of selected
corporate projects.
Established an internal research unit, which forms the
basis for market intelligence.
Restructuring of selected divisions within Senwes Grainlink.
Reorganisation of Senwes Credit’s organisational structure
to position the unit for further organic growth.
During the 2019 reporting period, the Business Engineering
division launched a range of services to add to
farmer clientele services.
The IT division is intensively driving unified communications,
a project that focuses on establishing a single,
centralised collaboration platform.
Established a Business Modelling and Optimisation division,
which is primarily focused on the optimisation of
business processes within the group.
Redesign and/or restructuring of the Corporate Marketing,
IT and selected financial divisions to ensure that
they are geared for future challenges.
SENWES INTEGRATED REPORT 2020
47