Swot Analysis Of Pick N Pay

Pick n Pay – Introduction & History

Pick n Pays founder was Raymond Ackerman in 1967. Raymond Ackerman had just lost his job at Checkers and had returned to Cape Town from being in Johannesburg. Once back in Cape Town he negotiated for four small shops called Pick n Pay that was owned by Jack Goldin. 43 years later the chain of four small stores became a retailing giant.

In Pick n Pay’s first trading year they achieved a profit of R310 000 on a turnover of R5-million. Pick n pay’s turnover climbed to R10-million, and doubled the following year.

Pick n Pay’s franchise has values and principles that despite changing times, new developments, improved technology and radical strategies, they remain consistent.

Pick n Pays mission is:

• “We serve

Strengths

Challenges Strategies to deal with challenges

Pick n Pay have strong brand equity Pick n Pay has strong brand equity due to long heritage

Pick n Pay have online growth Pick n Pay sales increase therefore increasing profit.

Pick n Pay have loyal customers Pick n Pay have high customer loyalty due to pick n Pay focusing on good service.

Pick n Pay have good corporate social responsibilities programs (CSR) and sponsorship Pick n Pay’s CSR programs and Sponsorship has improved Pick n Pay’s reputation therefore improving its brand equity and family store image

Skilled workforce Pick n Pay have trained their workers

Pick n Pay have good prices Pick n Pay have a cost advantage due to own brand

Weaknesses

Challenges Strategies to deal with challenges

Pick n pay has bad communication Pick n Pay must find ways in order to have good communication between employees, employers and consumers

Pick n Pay is not diversified enough Pick n Pay must expand and/or vary the range of

Marvin King has always believed that leaders should direct companies to achieve sustainable economic, social and environmental performances [the triple bottom line principle – the 3P’s (People, Planet, Profit)]

The Board of directors of Pick n Pay Stores Limited (the Board) and senior management are committed to the highest standards of corporate governance and take pride in our high moral and ethical business standards. The Group is committed to sound and transparent business practices. The Board is committed to complying, in all material respects, with the principles contained in the King Code of Corporate Practices and Conduct (King III), as well as to the additional requirements for good corporate governance stipulated in the JSE SRI Index. We have performed a thorough review of the implications of King III and, where appropriate, the corporate governance structure has been amended to comply with the new code, which became effective on 1 March 2010. An overview of the Group’s corporate governance framework is provided below including a section dealing with the aspects of King III that are still under review.