JUHAYNA FOOD INDUSTRY

STRATEGIC PLAN

Presented to:
Dr. Farid Aly Shosha
Associate Professor of Business Administration

Presented by:
Samah Mohamed Fathi
Yasmine Thabet Abdel Meguid
Reem Attia Hassan
Elham Salah El-Deen

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 AY N
JUH
A AT A
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GLA

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Table of content (1)
Contents (1)
1. Juhayna Food Industries Profile
1.1 Introduction
Company Background

1.2 Quick view on Product Mix

1.3 Strategic Plan Time Frame
2. KEY EXTERNAL FACTORS
2.1 Economic Forces – PESTL Analysis
2.2 Juhayna Food Industries Direct Competitors
2.3 Competitive Profile Matrix (CPM)
2.4 Opportunities & Threats

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Table of content (1)
Contents (2)
3. KEY INTERNAL FORCES
3.1 Management/ Value chain/ Distribution Channels
3.2 Strengths & Weaknesses
4. SWOT ANALYSIS
4.1 Future Expectations & Scenarios
5. STRATEGIC PLAN
5.1 Vision & Mission
5.2 Corporate Values
5.3 Strategic Objectives
5.4 Long Term Objectives _ LTOs
5.5 Strategies

4.1 Past and Current Strategies

4.2 Long Term Objectives – LTOs
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4.3 SWOT Analysis
Juhayna Food Industries Profile
1.1 Introduction
The past decade seen dramatic looses in some industries. Firms that has
been performing well suddenly announced large losses. Renowned
companies losing market share to other companies due to relying heavily on
their own strength and paying no little attention to external factors
representing lost opportunities or inappropriately t threats. Companies
must continuously assess their position in the industry and know where they
are heading in the future. Hence, the key issue is strategic management.

In this paper we present the strategic plan for Juhayna Company-the

famous dairy manufacturer, we will scan the environment, develop the
company’s vision and mission statement; assess external and internal
factors, establish long term objectives, generate, evaluate, and select
strategies. Flowing from the aforementioned, we will proceed with
implementation with the strategy.

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Juhayna Food Industries Profile
1.1 Company Background
 Juhayna Food Industries is a leading Egypt-based manufacturer specialized
in the production, processing and packaging of dairy, juice, and cooking
products.
 Since its founding in 1983, it has secured a front runner position in the
dairy and juice industries in Egypt and has expanded its presence in the
Middle East, a feat made possible through its firm commitment to delivering
a wide range of high-quality, healthy, and safe products that have become
trusted household names
 Juhayna has well-earned reputation as trendsetter in both manufacturing
know-how and product innovation. Recent market studies indicate that
Juhayna enjoys a level of brand awareness that is significantly more
pronounced than its leading competitors on the Egyptian market.
 By building a state-of art industrial infrastructure, Juhayna has steadily
increased production capacity while developing and expanding product
range. Today the company has 209 different products on supermarket
shelves that are produced at six separate manufacturing facilities with the
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industrial capacity to yield a total of 2,900 tons per day. 6
Juhayna Food Industries Profile
1.2 Quick view on Product Mix
1.2.1 Dairy Milk
In 1987 Juhayna became the first Egyptian company to offer safe, healthy,
packed milk products to the local market; we have below brands: Juhyna
Milk, Bekhero Milk, Halebo, Mix and Foam Milk.

1.2.2 Yogurt
1.2.3 Cream and Cheese
In 1987 Juhayna was the first company in Egypt to launch a natural,
packed yoghurt product.

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Juhayna Food Industries Profile
1.2.4 Juice:
In 1987 when we first introduced our packed juice to the market we have been
producing the highest- quality juices

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 Strategic Plan Time Frame
1.3 Strategic Plan Time Frame

Juhayna Time Frame for the

Strategic Plan is: 5 Years

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 Key External Factors
2.1 PESTEL Analysis
Political Factors:
 Government future trends will most likely be more
transparent, helping firms not politically connected with
the government secure contracts.
 Following the new GATT treaty, opportunities will
increase tremendously for the export of agriculture
products in general and dairy products in particular.

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 Key External Factors
2.1 PESTEL Analysis
Economic Factors:
 One of the biggest exporters in Egypt so they are
providing the country with hard currency & they have
facilities so they are decreasing unemployment rate.
 They have advantage over the foreign companies in the
currency exchange rate, customers and central bank new
regulations
 Interest rates
Egypt has lowered interest rate by 1 percentages points,
from 14.25% to an annual rate of 13.25%
 Inflation rates
The annual inflation rate in Egypt fell to 4.8 percent in
September 2011
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 Key External Factors
2.1 PESTEL Analysis
Socio-cultural Factors:
 With a population of 110 million, Egypt has the largest
market in the Arab world Population growth at 2% is
considered high compared to developed countries.

 The expansion of the middle class segment, economic

openness & better living standards have improved health
consciousness across growing segments of the Egyptian
population

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Key External Factors
2.1 PESTEL Analysis
Technological Factors:
 Juhanya is using the social media channels intensively such
as an informative web & other social media platforms
 The use of automated systems are taking of; it helps so
much in reducing time of production while increasing the
capacity & production

Example:
The microchip injected in cattle to monitor & make sure that
all the herd has been milked

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Key External Factors
2.1 PESTEL Analysis
Political/Legal Forces:
 Bio-security, food safety & other regulations from the ministry of
health
 Government future trends will most likely be more transparent,
helping firms not politically connected with the government secure
lucrative contracts
 Following the new GATT Treaty, opportunities will increase
tremendously for the export of Agricultural products in general and
dairy products in particular
 Although there is a law prohibiting Urban construction taking over on
the already limited land suitable for agriculture production, however
there is not much enforcement
 Some lack of awareness that lead to poor irrigation and diminishing
water supply
 High unemployment may lead to political resistance to privatization
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Key External Factors
2.2 Juhayna Food Industries Direct Competitors
Competitive Forces, Identifying rival firms
Juhyna is well positioned in the local market supported by its long track
record, brand recognition and comprehensive product offerings.
Juhyna’s wide distribution network provides it with a competitive edge
compared to other players as it enables it to reach out for different market
segments in an efficient manner.
In the packaged milk segment, juhayna has a controlling market share, for
plain milk, market share stood at 69.0% at the end of 2009. the second
largest producer had a market share of 90% for flavoured milk, Juhayna’s
market share stood at 74.0% in 2009 to 11.0% for the second in line.
Market composition remained more or less stable over the past four years.
The increased competition can be detected by the modest decline in
Juhayna’s market since 2006. However, given the wide gap between
Juhayna and other dairy producers and the company’s competitive cost
and distribution advantages, it is unlikely that market ranking would alter
in the foreseeable future.
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Key External Factors
 In the Yogurt segment, Juhayna is well positioned the spoonable and
drinkable category, holding a market share of 31.0% and 86.0% in
2009, respectively. The company responded swiftly to fast growth in
the yoghurt market by introducing 46 SKUs including value added
products which gave strong boost to its market share.
 In the Juice segment, local operators Beyati and Enjoy are the company’s
main rivals. Both local companies can potentially grow to become strong
competitors. Enjoy was recently acquired by Citadel Capital’s fully
integrated food subsidiary, Gozour.
 Juhayna also faces stern competition from large multinational players
such as Danone and Lactalis. Both Companies have become increasingly
active in the Yoghurt segment in an effort to capitalize on the rapid
market growth and size. Danone’s success in capturing a market hare
followed an aggressive marketing campaign coupled with competitive
pricing strategy.

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Key External Factors
2.3 Competitive Profile Matrix (CPM)
Enjoy Juhaina Almaraai
Critical Success Factors Weight R WS R WS R WS
Market share 0.18 3 0.54 4 0.72 4 0.72
Product Quality 0.12 3 0.36 4 0.48 4 0.48
Consumer Loyalty 0.15 3 0.45 4 0.6 4 0.6
Global Expansion 0.1 2 0.2 4 0.4 4 0.4
Organizational Structure 0.04 2 0.08 3 0.12 2 0.08
Production Capacity 0.12 3 0.36 3 0.36 3 0.36
Price Competitive 0.04 4 0.16 2 0.08 2 0.08
Management Experience 0.08 2 0.16 4 0.32 3 0.24
Advertising 0.1 2 0.2 4 0.4 3 0.3
Financial Position 0.07 2 0.14 4 0.28 3 0.21
Total 1.00 2.65 3.76 3.47
CPM above implies that the weakest company is Enjoy and the strongest is
Juhayna
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Key External Factors
2.4 Opportunities & threats
2.4.1 Opportunities:
1. Egypt benefits from a large pool of cheap labor, particularly useful for labor
intensive commodities.
2. The government will continue to invest in land reclamation projects
increasing area available for agricultural output and so cattle breeding.
3. Future trends will most likely be more transparent, helping firms not
politically connected with the government secure lucrative contracts.
4. Efforts towards banking-sector consolidation should bring down the cost of
private sector credit and fuel small business growth over the long run.
5. Both global milk consumption and international dairy trade to continue to
grow over the next decade.
6. Current competitive position and ability to grew milk supply provide an
opportunity to deliver increased economic benefits to the company.
7. There is a phenomenal scope for value addition with innovation in product
development packaging and presentation such as Butter, Yogurt and Cheese.
8. Exports opportunities in milk proteins through Casein Caseinates and other
dietary protein.
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Key External Factors
2.4 Opportunities & threats
2.4.1 Opportunities:
9. Introduction of value added products with different flavors ,ice creams,
flavored milk, Dairy sweets etc are to be undertaken.
10. High birth rates which opens opportunity for infant foods such as milk is a
basic for nutrition.
11. Efforts are on to exploit export potential of reputed brands.
12. Following the new GATT Treaty, opportunities will increase tremendously
for the export of Agricultural products in general and dairy products in
particular.

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Key External Factors
2.4.2 Threats:
1. Urban construction is taking over on the already limited land suitable for
agricultural production.
2. With the prices of many agricultural commodities increasingly volatile, Egypt
will face increasing competition for many key imports.
3. Poor irrigation and diminishing water supply.
4. High unemployment may lead to political resistance to privatization plans.
5. Although levels of education are relatively high, there us a considerable
mismatch between the skills taught in schools and those required by
employers.
6. Most countries in the world have huge long term potential to increase milk
supply.
7. Global competition will be tougher “USA, New Zealand, Brazil, Pakistan, China
and Saudi Arabia”.
8. The Opportunities for growth in dairy exports may be lost if:
 Regulation unnecessarily restricts production volume.
 Dairying is unable to adopt more nutrient and water efficient farm systems-
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leading to greater need to regulate. 20
Key External Factors
2.4.2 Threats:
9. Cost of production on- farm increases to uncompetitive level driven by
production (not profit)focus and/or compliance costs.
10.Product quality/integrity is undermined through bio-security, food safety or
industry reputation disaster.
11.Changes in profitability of dairy compared to beef production and cropping in
areas of potential low cast production.
12.Milk vendors of the unorganized sector are occupying the pride of place in the
industry.

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Key Internal Factors
3. Key Internal Forces
3.1 Management / Value Chain / Distribution Channels
3.1.2 Management
Juhayna’s operation is run by a solid management team headed by the
group’s founder and current chief executive. The company’s top executive
have a combined experience of more than 230 years in the fast moving
consumer goods industry (FMCGs) with reputable and regional firms
including Procter & Gamble and Arthur Anderson.

 3.1.2 The Value Chain:

On the supply side the farms of Juhayna uses Holstein cattle which is a breed
of cattle known as the worlds highest production dairy animal, there is also
medical care for the herd.
Bottles are made in Egypt through a fully automated system; while the
cartoon packages are imported from Saudi Arabia on high quality standards.
 

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Key Internal Factors
2.4.3 Operations:
The herd is cleaned via an automated system to make sure they are clean before
milking, then air drying then to milking, which is also automated.
After finishing they clean the cows again for bacteria, and then the milk is taken
to 3 degrees fridges, then to storing towers , then to trucks. The trucks leave the
factory in 1 hour time, the trucks are cleaned before and after they are filled,
trucks go to another area to be pasteurized.
 
2.4.4 Quality Assurance and Controls:
Milk pasteurization through tubes heating up to 78 degrees to kill bacteria, then
the bottles are prepared and the expiry date is printed with a rate of 50,000
bottles per hour, filling takes 6 seconds per bottle, then the milk is checked again
and defected products are removed manually and good products are taken to
storage unit using a bar code system to store all the products, this system is fully
automated.
Also the R & D hardly checks products and check the juice tasting.
Then the products are taken to distribution center and then to distributers.
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Key Internal Factors
 Distribution Channels

10% B2B

27% 7% Distributers

10% Supermarkets

Major Chains
8%
Retail

38% Wholesalers

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Key Internal Factors
3.2 Strengths & Weaknesses

3.2.1 Strengths:
1. Biggest Market share.
2. Strong brand name
3. Strong & high experiences management team.
4. Wide variety of business portfolio & products,
5. Well established distribution matrix.
6. Well established and financed R&D division
7. Reasonable product price which enables strong completion in the
market.
8. Concentration on healthy products
9. Spread in a large number of countries all over the world.
10. Availability of capital for expansion or expenses.

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Key Internal Factors
3.2.3 Weaknesses:
1. Lack of resources for packaging,
2. Lack of skilled functional & technical skilled workers,
3. Seasonality of production reduces plant capacity utilization increasing
capital requirements and it restricts product mix.
4. Instable prices of fruits which affects the profit margin.
5. Dependability on imports in areas of shortages, such as milk powders.
6. Processing industry is smaller in scale than the main international
competitors.
7. Scale in marketing is better than average but also below main
international competitors, leading to cost disadvantages.
8. Emergence of strong competitors such as Almaraai.

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 4. SWOT Analysis
STRENGTHS WEAKNESSES
1. Biggest Market Share 1. Lack of resources for packing
2. Strong brand name 2. Lack of skilled functional &technical
3. Strong &high experienced skilled workers
Management team 3. seasonality of production reduces Plant
4. wide variety of business Portfolio& capacity utilization increasing Capital
products requirements and it restricts product mix
5. Well established distribution matrix 4. Instable prices of fruits which affects The
6. well established and financed R&D profit margin
division 5. Dependability on imports in areas of
7. Reasonable product price which shortages, such as milk powders
enables strong competition in the 6. Processing industry is smaller in Scale
market than the main international Competitors
8. Concentration on healthy products 7. Scale in marketing is better than Average
9. 9-Spread in a large number of but also blew main international
countries all over the world competitors, leading to cost
10. A availability of capital for expansion disadvantages
or expenses 8. Emergence of strong competitors such as
Alamaraai

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 SWOT Analysis
OPPORTUNITIES
1. Egypt benefits from a large pool of cheap labor,
particularly useful for labor intensive commodities
2. The government will continue to invest in land
reclamation project, increasing area available for
agricultural output and so castle breeding
3. Effort towards banking-sector consolidation should
bring down the cost of private sector credit and fuel
small business growth over the long term
4. Both global milk consumption and international dairy
trade to continue to grow over the next decade
5. There is a phenomenal scope for value addition with
innovation in product development, packing and
presentation such as Butter, Yoghurt and Cheese.
6. Introduction of value added products with different
flavors, Ice cream, flavored milk; Dairy sweets, etc. are
to be undertaken.
7. High birth rates which opens an opportunity for infant
food as milk is a basic for nutrition
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THREATS
1. Urban construction is taking over on the
already limited land suitable for
agricultural production
2. With the prices of many agricultural
commodities increasingly volatile, Egypt
will face increasing competitors for many
key imports
3. Poor irrigation and diminishing water
supply
4. Most countries in the world have huge
long-term potential to increasing milk
supply
5. Global competition will be tougher "USA,
New Zealand, Brazil, Pakistan, Chine and
Saudi Arabia "
28
 SWOT Analysis
SO STRATEGIES
 Using the strength of our R&D to
introduce Value Added products
 Taking advantage of our Market Share
and brand name to hunt the
opportunity of the high birth rate and
the shortage in the market.
ST STRATEGIES
 Exporting will be done carefully
choosing the target market to access
easily and smoothly
 The availability of capital will facilitate
the access to any market and operations
will function successfully in all alike
markets
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WO STRATEGIES
 Filtering and seeking of good skilled workers
Going global makes us cooperate and
integrate the processes to achieve the
economies of scale
 The government aid will support in stabilizing
the prices of supplies and raw materials.
WT STRATEGIES
 To secure resources of supplies and raw
materials
 It is so important , the research and
development functions are of very high
importance
 Cooperation and integration of processes with
suppliers of packages and know-how transfer
for future further expansion
29
Strategic Plan
Future Strategies
The conclusion of both the SPACE matrix and the SWOT analysis resulted
strategies will formulate the combination of the below strategies to follow:

1. SWOT SO Strategies with SPACE product Development strategy 

Via using the strength of our R&D to introduce Value Added products 
Market penetration strategy taking advantage of our Market Share and brand
name to hunt the opportunity of the high birth rate and the shortage in the
market

2. WO Strategies with Market Development strategy 

Filtering and seeking of good skilled workers
Going global makes us cooperate and integrate the processes to achieve the
economies of scale
Market Development would best fit.
The government aid will support in stabilizing the prices of supplies and raw
materials.
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 Strategic Plan
  
Future Strategies
3. ST Strategies with Market Development strategy  
Market Development will be done carefully choosing the target markets to
access easily and smoothly
The availability of capital will facilitate the access to any market and
operations will function successfully in all a like markets
 
 
4- WT Strategies with integration & product development strategy 
Further backward integration to secure resources of supplies and raw
materials
Product Development is so important; the research and development
functions are of very high importance.
Cooperation and integration of processes with suppliers of packages and
know-how transfer for future further expansion by backward integration.
 
  5/16/23 31
4.1 Future Scenarios
1. Increase our raw milk supply from local farms by 10%
2. Hire consultants to conduct inspections and recommend best
practices for higher milk quality
3. Increase farm audits to ensure compliance with Kafa’a’s
standards framework
4. Expand milk collection centers in Gharbeia governorate
5. Lay down the foundation for expansion plans across the rest
of the country
6. In support of farmers at Enmaa, we also intend to provide
additional trainings, perform several upgrades, and purchase
tools that assist them during their work
7. The worsening dollar crisis, which began in 2015 and resulted
in the dollar reaching as high as EGP 30, has lead to a
reduction of benefits for Juhayna Food Industries from its
partnership with European Arla Foods where the latter
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produces its products in the Egyptian market. 32
4.1 Future Scenarios
Towards Low Carbon Emission
Juhayna is fully aware of the momentous Paris Agreement which brought all
nations together in 2015 to combat climate change and adapt to its effects.
Egypt is also one of the countries which commits to cooperative global efforts
to act against climate change through a variety of mitigation and adaptation
efforts. In alignment to our National Strategies and commitment to Global
direction, we are in the Process of developing our 1st Carbon Footprint
Report calculating our GHG Emissions across our value Chain, in accordance
to GHG protocol.

One of the biggest challenges lies in the impact of desalination,

desertification, and water scarcity on agriculture and feed stock production in
Egypt.

In our transitional journey to lower emission energy sources, our current

efforts are focused on our Energy Efficiency Practices across our farming,
processing and distribution by resorting to decrease of energy usage and
usage of renewable energy.
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 4.1 Future Scenarios
Towards Energy Efficiency
AL DAWLEYA EGYFOOD AL MASREYA AL MARWA
•Replacing lighting •Improving the • Re-organizing operating systems • plan to
fixtures to LED power factor. install ( 75 VSD air compressor implement saving
• Overhauling service • Better utilization instead of normal 75 air projects 2020
for Refrigeration for cooling plant. compressor)
Plant • Control the usage • Changing light to led (230)
• Generating of HVAC units. Reducing compressors air
Renewable Energy in • Using LED lighting pressure from 8.5 to 8.3 bar
Solar Shed Project. • Improving the Upgrade Cip
• New Boiler control steam boiler Eff. • Installing motion sensor
system to reduce Gas (Air/Fuel ratio). detector in offces
Consumption • Maintenance of • Installing LVS monitoring system
• Maintain the stam the main gas (plc) Installing cooler in air
network utilization station. compressor area
• Reducing UHT temp from 140 to
138 Automating blow up
• TDS control
• Installing Steam monitoring
system

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5. Strategic Plan
5.1 Vision and Mission

Vision:
“Juhayna is a leading food for all ages, and a friend for
all generations”

To standout as the leading source of a healthier and

tastier quality of life, for you.

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 Strategic Plan
1.4 Vision and Mission
Mission:
“Juhayna preserves in providing products that are
healthier, tastier, and classier while increasing
shareholder’s value and focusing on the most
updated state-of the art technology as well as our
employees who represent our most valuable asset”
Mission Methodology
Crossing barriers and traditional consumption habits was no easy task, nor a smooth journey, but with a set of robust
un-shifted values, Juhayna mission was clear: “To provide quality products that enrich the lives of our people and
support the development of our community seeking a healthier & a better tomorrow”. “Caring Every Day Since 1983”
has been our mission and promise to our consumer. And as we grew, our dreams and commitments have expanded to
create shared value to our stakeholders. Therefore, at the core of our Business Strategy, three pillars have paved the
way to success: best international practices, innovation and sustainability; all of which were the footings of the
Juhayna Brand, where employees, suppliers, and partners have collectively pledged caution and care to our
consumers, communities, and the environment. Through our stakeholders’ engagements we have discussed,
exchanged and concluded our most critical issues and material topics to drive our business to a responsible and
sustainable growth.
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Strategic Plan
5.2 Corporate Values
 Our business model is based on the belief that growth must have a
positive effect on society as a whole.
 Creating new job opportunities through the expansion of our operations,
our commitment to developing quality products and utilizing the most up
to date production techniques has helped to upgrade quality standards in
the Egyptian food industry as a whole
 Honesty & Transparency
 Quality

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Strategic Plan
5.3 Strategic Objectives
1.  Amongst future capital expenditure is heavy investment in
the company’s 10,000-acre farm dedicated to satisfy its raw
material requirements.
2. Additional investment is planned is acquiring additional land
and expanding the farming business in attempt to securing
raw milk supply internally
3. Product diversification through expanding the range of
existing products as we as entering new product segments
4. Enhancing the regional operations in markets such as Libya,
Jordan and Lebanon where the company has established
brand recognition
5. Replicating the business model in Egypt in other markets in
2022 by 40 %
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Strategic Plan
5.4 Long Term Objectives _ LTOs
 Juhayna is aiming to accomplish the long-term objective listed
below:
1. Amongst future capital expenditure is heavy investment in the
company’s 10,000 acre farm dedicated to satisfy its raw
material requirements.
2. Additional investment is planned in acquiring additional land
and expanding the farming business in attempt to securing raw
milk supply internally.
3. product diversification through expanding the range of existing
products as well as entering new product segments
4. Replacing the business model in Egypt in other markets
5. Enhancing the regional operations in markets such as Libya,
Jordan and Lebanon where the company has established brand
recognition
6. Regional and local acquisitions of complementary businesses.
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Strategic Plan
5.5 Strategies
Juhayna’s strategy is aimed at maximizing revenues and keeping a tight rein on
operating expenses while simultaneously maintaining its leading edge in the
market
Efficiency is Key In a year fraught with challenges, Juhayna maintained its
position as market leader, reacting strategically and deftly to the country’s
economic hardships. As a vertically integrated company in Egypt with a sizeable,
expansive, and diverse range of operations, Juhayna weathered the storm with
dexterity and

Resilience, implementing measures to maximize its efficiency. Now as the

Egyptian market grows, Juhayna’s attention will be focused on achieving higher
revenues while diligently streamlining its operations and controlling expenses to
maximize shareholder value.

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Strategic Plan - STRATEGIES
Juhayna continued to execute its five-year
strategy in 2020, which was originally drafted
two years ago to emphasize innovation,
performance, and reach. Despite the spread of
COVID-19, the company was able to move
forward with its plans for the year with minimal
interruption due to its teams’ excellent
mitigation of the virus’ impact on internal
operations.

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Strategic Plan - STRATEGIES

Product and Branding Innovation

Juhayna unveiled several products and key upgrades in 2020.
Whether under new or existing segments, all products launched
by the company during this period required minimum CAPEX
investments as production only needed alterations in existing
machinery.

They are also high-margin, niche products that aim to serve

specialized client needs and improve the company’s overall brand
equity

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Strategic Plan - STRATEGIES
Current Segments
Part and parcel of Juhayna’s progress strategy is presenting new product ranges
that fill market gaps and keep the company relevant to its increasingly health-
driven consumers. The release of the new Greek Yogurt range was among this
year’s highlights, as it outperformed its projections and secured Juhayna’s
positioning in this growing yogurt subsegment. 2020 also saw the company
further improve on its lactose-free milk, a unique addition to its range of
packaged dairy offerings, which increased the product’s availability, visibility,
and popularity.
Furthermore, and in continuation of the company’s branding revamp in 2020,
more of the company’s products received new packaging in 2020 to give all of
Juhayna’s ranges a cohesive look that is instantly recognizable wherever they
are sold. The revamp is expected to cover the company’s full range of products
by the end of 2021, and changes are advertised to consumers to promote and
popularize the new, contemporary look.

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Strategic Plan - STRATEGIES
New Ventures
Penetrating new market segments is a constant pursuit at
Juhayna, and with the help of its research and development team
it is able to develop new and well-received products that meet
market expectations. During 2020, the company worked on and
prepared for its new plant-based product line, Nuts & Grains,
which was officially launched in January 2021. Through this
launch and by maintaining a commitment to market innovation,
Juhayna remains adamant on penetrating new markets and
creating products that keep the company ahead of ever-evolving
consumer needs

5/16/23 44
Strategic Plan - STRATEGIES
Performance Optimization
Despite the severe impact that COVID-19 had on businesses in
2020, Juhayna was able sustain its revenues and improve
profitability using manufacturing, warehousing, and distribution
optimization strategies. Through improved utilization of
materials, space, and fleets; renegotiating deals at lower prices
with suppliers; and a smart approach to rightsizing its workforce,
the company was able to maintain its performance levels while
reducing costs and improving margins.

5/16/23 45
Strategic Plan - STRATEGIES
Working Capital

The impact of capital losses due to divesting from agricultural

land and assets, as well as one-off payments such as end-of-
service bonuses, affected the company’s profitability in 2020.
However, Juhayna still managed to grow every other profitability
metric and managed to largely offset adverse impacts. The
company also benefitted from its existing stock of skimmed milk
powder (SMP) this year, thus reducing spending on the product,
which was beneficial as prices increased due to high Chinese
demand. It is worth noting that the company also reduced its
overall use of SMP in 2020 by 15% and succeeded in decreasing
inventory days, now holding its SMP stock for a maximum of two
months. Juhayna also managed to minimize its cash conversion
cycle and improved its payable and receivable days in 2020.

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Strategic Plan - STRATEGIES
CAPEX and Net Debt
In line with its continuing cost optimization strategy, Juhayna
maintained low CAPEX spending in Our Strategy 2020 by not
exceeding the EGP 300 million mark, and focused its efforts on
maintenance and small additions in place of large
transformations. This notably benefited its performance this year,
especially amid its launch of a new product range, with all
improvements made requiring less to no spending on the
company’s part. Juhayna was also successful in renegotiating
financing agreements to reduce interest payments, and
successfully lowered its net debt from EGP 1.4 billion, recorded
by the end of 2019, to EGP 781 million by the end of 2020. The
company also took advantage of the Central Bank of Egypt’s “8%
loans for manufacturers” initiative, which further reduced its
interest rates.

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Strategic Plan - STRATEGIES
Reach and Accessibility

Juhayna’s products are accessible to consumers around the

country at small, medium, and large points of sale. The company
spares no effort in facilitating access to its Juhayna and Bekhero
products at different price points where needed, so as to
accommodate the purchasing capabilities of its diversified
consumer base. In 2019 and 2020, it extended its reach by using
innovative distribution initiatives such as ElCommanda, which
helps it sell its products to underserved communities. Juhayna
also increased its presence on online grocery shopping websites
and apps, which was particularly beneficial in 2020 as footfall
lessened in larger retail outlets and shops.

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Strategic Plan - STRATEGIES
Third-Party Distribution

Juhayna identifies future expansion as growing its product ranges

and reach, as well as optimizing the use of its resources to
improve profitability. The successful third-party distribution
arrangement struck with the Danish Arla encouraged the
company to seek similar collaborations, and resulted in its
partnering with Rabea Tea in 2020. Juhayna aims to continue
striking similar arrangements to utilize its excess capacities;
maximize the potential of this new revenue stream without
incurring changes in schedules or costs; and cover much of its
existing fixed distribution costs.

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Strategic Plan - STRATEGIES
Footprint Expansion
In extension of the company’s plan to increase its reach and
introduce more consumers to the brand, Juhayna is in the process
of growing its regional footprint through potential JV
opportunities with established businesses across high-growth
markets. The company aims to achieve this without incurring
significant investments in manufacturing and distribution
capacities on the back of its solid operational strengths, well-
established networks, and regularly growing banks of knowledge,
expertise, and innovative strategies. As the company’s
optimization strategies continue to prove successful in its current
areas of operations, it seeks to transport this know-how to newer
markets, thus establishing solid bases for its diversified range of
products to generate new revenue streams.

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Strategic Plan
Strategies

Corporate Strategies BCG Matrix

Star Question mark

Pure Cooking cream

Mix Whipping cream
Sour cream
Foam milk

Cash cow Dog

Plain milk Cheese

Juice
Yoghurt
Rayeb

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6. Action Plan
Action Plan
Juhayna’s future lies in a willingness to constantly grow,
experiment, and innovate.
As we began to vertically integrate our supply chain, we began to
identify more opportunities for integration that can transform
the concept of supply chain management.
As such, we began to implement some crucial upgrades
throughout this reporting cycle, which resulted in operational
and cost efficiencies, as well as stronger digital integration across
our facilities.
These upgrades included the following projects.

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Action Plan
Caring for Egypt Material Issue:
• Rural Economies & Market Development
• Sustainable Sourcing
o With the traditional farming population aging and growing smaller, global and
national concerns continue to arise, putting Dairy Farming and Agribusiness at
risks.
o So today, the collective efforts of businesses of the Dairy Sector have become a
necessity for Rural Development and Food Security.
o Recognizing our role in proactively contributing to the National Sustainable
food system, Juhayna’s commitment extended to developing rural areas
through national farmers by establishing Juhayna Farms Network, which
includes all our supplying farms that have reached a total of 107 farms, all
operating under our Sustainable Farming Strategy “Kafa’a”, and building on the
knowledge, practices and standards that we have successfully established on
our farm Enma’.
o Kafa’a is the first of its kind strategy for Developing Egypt’s Dairy Farms and is
part of our Shared Value Strategy that fosters for our Business Performance and
our Sustainability Commitments.
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Action Plan
Restoring Profitability and ROIC
In the wake of extreme inflationary pressures on the
company’s cost base, Juhayna took the strategic decision to
begin transferring cost hikes to the consumer through an
increase in prices across the board. Taking into account the
sensitive nature of the food sector, the company ensured the
process was gradual and as of year-end 2016 average prices
had increased by 35%. Management also notes that given the
somewhat inelastic demand for Juhayna’s products and the
lack of significantly cheaper substitutes for them in the market,
the company expects volumes to be relatively less affected
compared to other industry segments, and for it to continue
maintaining its market leading position

5/16/23 54
Action Plan
Restoring Profitability and ROIC
In the wake of extreme inflationary pressures on the
company’s cost base, Juhayna took the strategic decision to
begin transferring cost hikes to the consumer through an
increase in prices across the board. Taking into account the
sensitive nature of the food sector, the company ensured the
process was gradual and as of year-end 2016 average prices
had increased by 35%. Management also notes that given the
somewhat inelastic demand for Juhayna’s products and the
lack of significantly cheaper substitutes for them in the market,
the company expects volumes to be relatively less affected
compared to other industry segments, and for it to continue
maintaining its market leading position

5/16/23 55
Action Plan
Maintaining Market Leadership
Juhayna has taken significant strides to ensure it maintains a leadership
position in the Egyptian market, a strategy it plans to sustain going forward.
Through the introduction of innovative SKUs and flavors to its product
lineup; a concerted effort to focus on our competitively-priced SKUs amid
consumers’ declining purchasing power; and through introducing new
products via our joint venture with ArJu — a collaboration that has seen
the company distribute Arla’s products allowing it to maximize utilization of
its strong distribution network — Juhayna is able to consistently stay ahead
of competition. The company has always maintained a strong brand equity
as ranked by global indices, a key pillar of its success over the years

5/16/23 56
Action Plan
Penetrating New Export Markets
By the end of 2016, Juhayna was preparing to begin ramping up exports with a
focus on African and neighbouring markets. To do this, the company realigned
its organizational structure and invested in its export department to help both
define and implement its export strategy

Boosting Efficiency and Productivity

The company also plans to push through increased operational efficiencies at
its factories and in its distribution network to quell expenses and maximize
output and restore profitability. Investment efforts during the year saw the
company add seven new filling lines to the juice, dairy, and yoghurt segments
and enhance the company’s logistics and distribution capabilities.

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Action Plan
Localizing Raw Materials
Juhayna plans to continue to direct efforts toward sourcing its input products
locally and progressing in its backwards vertical integration program, which
saw the company establish its first fully-owned dairy farm in 2015 and expand
it to 4,000 cows. Juhayna’s farms are now producing 12% of the company’s
total daily raw milk needs. Having also began sourcing concentrates from
Egypt, Juhayna managed to lower foreign currency denominated COGS over
the year, with efforts already underway to bring it down even further
Focusing on Cash Flow Management
In an effort to streamline cash flow management, the company made the
strategic call to complete any ongoing projects and postpone new
investments, earmarking c.EGP 400 million for completion of its expansion
plan. Juhayna also managed to secure EGP 212 million in financing packages
from HSBC and QNB.

5/16/23 58
REFERENCES
o https://en.wikipedia.org/wiki/Juhayna

o http://www.juhayna.com/ar/

o http://www.juhayna.com/app/uploads/2016/10/Jufo-AR14-v2.5-Scrn-Res.pdf

o https://

www.juhayna.com/app/uploads/2021/04/1618922865_865_28908481_jufosr192
0efinal.pdf
o https://

www.juhayna.com/app/uploads/2021/11/1637757709_542_4022953_jufoear20f
sfinal.pdf

5/16/23 59
 THANK YOU

5/16/23 60
 Succession Policy Juhayna’s succession policy aims to ensure that the company is able to benefit from uninterrupted
leadership across all departments and units by building the capacities of talented employees across the company. This is
done by offering learning and development opportunities to employees demonstrating potential, expertise, and leadership
qualities. Our development strategy seeks to optimize their experience through on-thejob training and motivation to
prepare them for more senior roles when the opportunity arises. Conflict of Interest Policy Juhayna’s Conflict of Interest
Policy ensues conflicts of interest are avoided and managed. It outlines the Board’s expectations of conduct, and the
consequences for misconduct, for the people involved with the organization and identifies all types of conflicts of interest
and how they are identified, disclosed, and managed. The Internal Audit Department, HR Department, and Legal Affairs
Department coordinate should any suspected incident or misconduct arise that needs investigation. The policy explicitly
states and requires disclosures of Conflicts of Interest related, but not limited to: 1. Conflicts with the company’s suppliers
2. Conflicts with company’s competitors (including holding financial stake that can significantly affect an employee’s
behavior decision within the company) 3. Personal relationships between employees, influencing the recruitment,
selection, appointment, or promotion of employees 4. Personal benefits, and financial or commercial conflicts of interest of
all types 5. Conflicts with outside duties 6. Competing interests or loyalties Equal Opportunity and Anti-Harassment Policy
Juhayna’s core values are centered on diversity and respect for the personal dignity, privacy, and rights of each of its
employees. The company is committed to providing a workplace that is free from discrimination and harassment in order to
allow its employees to meet their full potential. The company does not tolerate any sort of discrimination on the basis of
origin, nationality, race, gender, or age against its employees. Any employee facing verbal or physical harassment based on
the aforementioned reasons or others are asked to bring their concerns to the HR department in order for the complaint to
be dealt with accordingly. Whistleblowing Policy Any complaints pertaining to suspected fraud or foul play within the
company are currently handled by the Internal Audit and Human Resources departments, which then undertake
confidential investigations into the complaint. Juhayna is currently studying automated pathways to handle whistleblowing
procedures to boost the efficiency and accuracy of the process. Juhayna’s core values are centered on diversity and respect
for the personal dignity, privacy, and rights of each of its employees.

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 Integrating Strategies
4. Integrating Strategies
4.1 Past & Current strategies
Juhayna pursued strategies are centered on building an integrated operation and
implemented vertical and horizontal expansion plans.
The existing business structure provides the company with presence across different
segments of the value chain starting with the supply of quality raw milk and fruits passing
through production and ending with distribution. The recent addition of farming to the
group’s operations was aimed at gaining control over the quality and supply of raw
materials. Owning a distribution fleet and network has the added benefit of optimizing
distribution costs and monitoring customer satisfaction. Going forward, the company
intends to replicate its business model in a number of regional markets.
Juhayna accomplished integration strategies that were designed to achieve three
objectives:
1. Backward integrations, including supply of raw milk, fruits and fruit concentrates
through owning and operating agricultural farms.
2. Horizontal and vertical integration through product and geographic expansion.
3. Forward integration where Juhayna delivers its products to end customers via its own
distribution network.

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 Integrating Strategies
 
Illustration of an Integrated Business Model

Horizontal
Backward Integration
Integration Forward
Supply of raw material Integration
Product Expansion
Raw Material Distribution
Geographic
Fruits Expansion
Fruit Concentrates

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 Integrating Strategies
Backward Integration
Raw milk is the main input for dairy and yogurt, the two largest business segments for
the group, together, they generated 80.6% of consolidated revenues in 2009 .Dairy
products encompass milk, cheese and cream .One of the main risks in this industry is the
strong bargaining power of milk suppliers which can cause interruption to supply of raw
materials and quality inconsistency. Juhayna's strong market presence enables it ,to
some degree to minimize such risk through maintaining a good network of milk suppliers
with the appropriate quality standards .

Raw milk is close to 50.0% of total production cost thus securing supply of quality raw
milk has always been at the top of management's agenda. Besides working closely with
milk suppliers, the company ventured into farming in order to secure its raw milk
requirements from within the group.
In 2008 Juhayna bought an indirect 40.0% stake in Milks Dairy, a company that run a
state of the art dairy farm. Following the acquisitions, the group's animal headcount
reached 2,500 from 1,460 and the milk yield grew to 35 Kg per cow per annum from 30
kg per cow in 2008..

5/16/23 64
 Integrating Strategies
The investment is expected to have a positive impact on the quality of milk
supply, which is measured by the average bacterial count milliliter (TBC
thousand /ML). Currently the ratio of Juhayna,s raw milk input is 70.
Milks Dairy's ratio is at par with international standards at 50. The farm
presently provides the company with 7.0% of its raw milk requirements.
Management is intending to expand its farming operations to ultimately
achieve self-sufficiency in its raw milk requirements.
In its continuous effort to strengthen control over the production chain,
Juhayna built a concentrate production facility, Modern Concentrate Company,
to secure its need of fruit concentrates for the juice production operation
which generates 18.2 % of total revenues. In 2009, the company bought 10,000
acres of farm and land that it intends to use to grow a portion of its order to
produce concentrates.
Currently, nearly 76.0% of juice requirements are sourced in house and the
balance is sold to third parties.

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 Integrating strategies
The wide distribution coverage provides the company with direct interaction
with the different income and market segments. For example, in rural areas
Juhayna distributes brands targeted at low and middle income consumer, while
in urban areas it markets the more costly, high end products. Juhayna ,s
distribution network is comprehensive in terms of its geographic footprint
and customer categories which could be difficult to replicate by other
producers thus providing the company with a competitive edge:
Having a wide distribution network and own fleet enforces continuous brand
awareness and lowers marketing and distribution expanses,
Direct access to customers ensures that customer's services and satisfaction are
under the company's own supervision and is therefore note compromised in
addition to allowing it to monitor market trends and consumers' behavior,
More effective market penetration and customer reach,
Continuous tracking of replacement levels and sales volume
Management indicated that major supermarket chains and hypermarket, are
becoming the company’s fastest growing customer base. Accordingly, the
company's current sales strategy includes strengthening relationships with
major chains in order to grow market share further.

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 Integrating strategies
  Strategic direction "SPACE Matrix"
Internal Strategic Position
Financial Strength (FS)
Leverage =0.66
Liquidity Quick Ratio = 1.05
Liquidity Current Ratio =1.54
Leverage (debt\ Total Assets) =0.38
Competitive Advantage (CA)
Market share =-2
Product quality = -2
Product life cycle = -3
Customer loyalty = -1
Competition's capacity utilization =-1
Technological know-how = -3
Control over suppliers & distributors =-2
FS =.9075 ES = -2 IS = 3 CA=-2
5/16/23
External strategic Position
Environmental Stability (ES)
Technological changes = 0.5
Rate of inflation =-1
Demand variability = -2
Price range of competing products =-3
Barriers to entry =-2
Industry Strength (IS)
Growth potential =3
Profit potential =4
Financial stability=3
Technological know-how=3
Resource utilization =2
Ease of entry into market =2
Productivity, capacity utilization =1
X=-2+3=1 Y=-2+.9075=-1.0925
67
Integrating strategies
Conservation Aggressive

CA -6 -5 -4 -3 -2 1 2 3 4 5 6 IS

-1

-2

-3

-4

-5

-6

ES

Defensive Competitive

5/16/23 68