NAMIBIA BUSINESS SCHOOL

MBA- NATURAL RESOURSES MANAGEMENT GROUP 5

STRATEGIC MANAGEMENT
CODE: B6961MS
Lecturer: Dr Akweenda
DATE: 2/03/2025
By: Shikesho FM, 221118918
Munikonzo PS, 200527410
Tusereepo N, 201078325
ASSIGNMENT 2
OUESTION INSTRUCTION
Come up with a strategic plan for your organisation where you will clearly show the
following aspects:

a) An executive summary of the Strategic plan (8 marks)

b) The Vision and Mission Statements as well as the core

values of the organisation (6 marks)

c) Strategic and Financial Objectives (6 marks)

d) Internal and External Analysis of the organisation (20

marks)

e) The strategic choices of the organisation (10 marks)

Organisation of choice: Namib Mills

Executive Summary (NamibMills, 2009)

Namib Mills is Namibia's largest grain processing company. They are known for producing

flour, pasta, animal feeds, and other products from raw materials like maize and pearl millet.

Namib Mills was established in 1982. They see themselves as an extension of the

government's focus on food availability and security. They actively explore new opportunities

to expand their branded products and services.

The company sources maize and other crops from local farmers, ensuring both sustainable

agricultural practices and a consistent supply of raw materials. Namib Mills processes these

crops into premium maize meal, which is distributed through a vast network of retailers,

wholesalers, and food service providers across Namibia.

Namib Mills is committed to ensuring food security and high-quality food products for the

nation. This strategic plan outlines the company’s approach to maintaining its industry

leadership by optimizing internal operations, leveraging market opportunities, and mitigating

external threats. By focusing on operational excellence, sustainable growth, and market

expansion, Namib Mills aims to solidify its position as a trusted food supplier while

enhancing financial performance and social responsibility.

Vision, Mission, and Core Values (NamibMills, 2009)

Namib Mills’ vision is to feed the nation, ensuring that all Namibians have access to high-

quality and nutritious food products. The company’s mission is to strive for excellence in

feeding the nation by focusing on people, processes, the environment, and quality products

and services. These commitments are driven by core values, including honesty, ethics,

innovation, social responsibility, passion, and respect. Namib Mills conducts business with

transparency and integrity, upholding high moral and professional standards. The company
continuously improves its products and processes, contributes to the well-being of

communities, commits to operational excellence, and values all stakeholders involved in its

operations.

Strategic and Financial Objectives (NamibMills, 2009)

Namib Mills' strategic and financial objectives include growing the company, contributing to

the local economy, and improving operational efficiency.

Strategic Objectives

1. Expand Production Capacity

Increase the production capacity of maize meal and other food products by enhancing

manufacturing facilities and adopting new technologies to meet rising market demand.

2. Strengthen Local Sourcing

Enhance partnerships with local farmers to secure a steady, sustainable supply of raw

materials, promoting agricultural growth and reducing reliance on imported crops.

3. Market Expansion:

Explore new market opportunities both domestically and regionally by increasing product

distribution and entering untapped markets within southern Africa.

4. Sustainability and Environmental Responsibility

Implement environmentally responsible practices in manufacturing and packaging, aiming for

reduced carbon footprint and waste, while supporting sustainable farming practices.

5. Innovation in Product Development

Develop new product lines, such as fortified meals or value-added products, to diversify

offerings and cater to changing consumer preferences.

6. Enhance Supply Chain Efficiency

Invest in supply chain technologies and logistics to improve product availability, reduce

costs, and increase operational efficiency.

7. Community Engagement and Corporate Social Responsibility (CSR)

Strengthen community development programs and support initiatives that improve local

agricultural practices, food security, and education.

To ensure sustainable growth and competitiveness, Namib Mills has set key strategic and

financial objectives. The company aims to strengthen its market leadership by expanding

distribution networks and increasing product accessibility across Namibia. Enhancing

production efficiency through technological advancements and process optimization is a

priority, alongside diversifying product offerings to cater to evolving consumer preferences

and dietary needs. Namib Mills is also committed to implementing environmentally

sustainable practices to reduce its carbon footprint and fostering strong stakeholder

relationships to drive long-term business success.

Financial objectives

 Market leadership: Expand market share and branded products and services

 Operational efficiency: Continuously improve operational efficiencies

 Quality: Maintain international standards and quality products

 Service: Provide superior service to customers

Namib Mills Initatives

 Vetkoek initiative: Supports SMEs by providing flour to bake vetkoek

 SME chicken development: Trains small-scale farmers to raise chickens

 Carbon credits: Sells carbon credits and donates 50% of the revenue to CSR

projects

From a financial perspective, Namib Mills targets a 10% annual revenue growth over the next

five years. Operational cost efficiency will be improved by reducing waste and optimizing

supply chain logistics. The company also seeks to maintain strong financial reserves to

support innovation and expansion initiatives while enhancing profitability through value-

added product lines and premium offerings.

Internal and External Analysis

1. Internal Analysis (SWOT Analysis)

The internal analysis examines Namib Mills' strengths and weaknesses, which impact its

operations and competitiveness.

Strengths

Market Leadership

Namib Mills is the largest grain processor in Namibia, giving it a strong brand presence and

market influence.

Diversified Product Range

Offers maize meal, wheat flour, rice, pasta, and other staple foods, catering to a broad

customer base.

Strong Distribution Network

Well-established supply chain ensures products reach retailers and consumers efficiently.

High-Quality Standards – Commitment to product quality and food safety enhances

customer trust and brand reputation.

Investment in Modern Technology

Advanced milling and production facilities improve efficiency and product consistency.

Corporate Social Responsibility (CSR)

Actively supports local farmers, nutrition programs, and community development projects.

Weaknesses

Dependence on Imported Raw Materials

Some grain supplies are imported, making the company vulnerable to currency fluctuations

and supply chain disruptions.

High Operating Costs

Rising fuel and transportation costs impact profitability.

Limited Export Market

While strong in Namibia, Namib Mills has limited penetration into regional or international

markets.

Competition from Imports

Imported food products can offer lower prices, affecting local market share.

2. External Analysis (PESTEL Analysis)

The external analysis examines macro-environmental factors influencing Namib Mills’

operations.
Political Factors

Stable political environment in Namibia supports business growth. Government policies

promoting local food production and food security benefit Namib Mills. Import tariffs on

foreign grain can affect production costs.

Economic Factors:

Namibia’s economy relies on agriculture, creating demand for milling products. Inflation and

exchange rate fluctuations impact raw material costs. Economic downturns can reduce

consumer purchasing power, affecting sales.

Social Factors:

High demand for staple foods ensures steady consumer demand. Growing health

consciousness may drive demand for healthier grain products. Population growth supports

long-term demand for food products.

Technological Factors:

Investment in modern milling technology improves efficiency and quality. E-commerce and

digital marketing provide new sales opportunities. Automation can help reduce labor costs

and improve productivity.

Environmental Factors:

Climate change affects grain production and supply chain stability. Sustainability initiatives,

such as supporting local farmers, help mitigate environmental impact. Water and energy

consumption in production need careful management.

Legal Factors:
Compliance with food safety regulations and industry standards is critical. Labor laws and

employment regulations impact workforce management. Trade regulations affecting grain

imports and exports influence business costs.

Opportunities

Namib Mills can further its role as Namibia's largest grain processing company by expanding

its market leadership through sustainable employment initiatives in agriculture, enhancing its

contribution to local economy and community development, and through innovative projects

like the Bakpro Vetkoek initiative aimed at supporting small and medium-sized enterprises.

This focus on growth and community support, coupled with its contribution to the Namibian

GDP and employment creation, presents attractive prospects for potential investors looking to

engage with a company deeply rooted in and committed to Namibia's development.

Strategic Choices

Namib Mills Investment Group is proud to announce the successful completion of its Solar

Emission Reduction Project, marking a significant step towards a sustainable and greener

future for Namibia. The project involves the construction and operation of a solar plant,

reinforcing Namib Mills Investment Group’s commitment to environmental responsibility

and energy independence.

The solar plant, which is located at Namib Poultry Industries, just outside of Windhoek,

comprises of a 2,850-kW grid-connected solar PV plant. The plant utilise cutting-edge

monocrystalline silicon panels, optimising their efficiency and output. This groundbreaking

initiative aligns with Namibia's goal of achieving a 70% share of renewables in its energy

mix by 2030. The solar plant will contribute to the reduction of reliance on high-intensity
fossil fuel. Namibia's abundance of sunlight hours per year makes the solar installation a

strategic and sustainable choice for cleaner energy.

To maintain its leadership position and drive future success, Namib Mills has identified

several strategic choices. The company will strengthen its distribution network within

Namibia while exploring regional markets for export opportunities. Product innovation will

be a priority, with a focus on developing new and improved product lines, including fortified

foods and healthier alternatives. Investing in automation and process optimization will

enhance productivity and reduce costs, supporting operational efficiency.

Sustainability initiatives will be implemented to ensure environmentally friendly business

practices, such as eco-packaging and energy-efficient production methods. Additionally,

Namib Mills will enhance engagement with consumers through digital marketing, feedback

mechanisms, and personalized services, reinforcing a customer-centric approach.

Lastly, by implementing these strategies, Namib Mills will continue to fulfill its mission of

feeding the nation while ensuring long-term sustainability, financial growth, and social

impact.
References

NamibMills. (2009). Namib Mills. Retrieved from

https://www.namibmills.com/