AVI Limited is a prominent South African company operating in the fast-moving consumer goods (FMCG) sector. Listed on the Johannesburg Stock Exchange, AVI’s extensive brand portfolio includes over 50 brands spanning categories such as hot beverages, sweet and savoury biscuits, snacks, frozen convenience foods, out-of-home ranges, personal care products, cosmetics, footwear, accessories and fashion apparel.
AVI Limited was founded by a group of visionary South African entrepreneurs who identified the potential in the FMCG sector. Their strategic leadership and innovative approach established AVI as a market leader. Although specific details about the founders are not widely publicised, the
company’s longstanding success and market presence underscore their entrepreneurial prowess
and business acumen.
A diverse workforce of over 11,000 individuals contributes to the company’s strong operations across multiple divisions. The company’s commitment to diversity and inclusion is reflected in its efforts to create a dynamic and inclusive workplace. AVI places a strong emphasis on transformation and good corporate citizenship, recognising the importance of embracing and supporting diversity within its workforce.
AVI Limited’s marketing strategies are deeply intertwined with its brand management approach, ensuring strong brand presence and consumer loyalty. It has a diverse portfolio of over 50 well- known brands such as Bakers, I&J, Yardley, Lacoste and Five Roses. The company leverages its well-developed shared services structure, including international, IT, finance, logistics, marketing, procurement and field marketing, to enhance operational efficiency and market reach.
The company is committed to sustainable practices and corporate social responsibility. Its CSR activities focus on education, development programmes, health, community training and skills development. AVI emphasises long-term, sustainable projects that have a substantial impact. The company aligns its CSR initiatives with its operational locations and sectors to ensure relevance and effectiveness.
AVI has faced significant challenges such as rising raw material costs, energy prices and transportation expenses. Despite these pressures, the company has implemented strategic measures like price increases and rigorous cost control to sustain operations. These economic challenges have constrained consumer spending and increased operating costs, particularly affecting the I&J division with higher diesel costs and lower catch rates.
The company operates through several divisions, including Snackworks, Entyce Beverages, Indigo Brands, I&J, Ciro Beverage Solutions, and fashion businesses like Spitz and Kurt Geiger. This structure allows for focused management and strategic growth in each category, ensuring specialised attention and development.
AVI Limited has demonstrated resilient financial performance despite economic challenges. The company reported a 7.2% increase in half-year revenue, driven by price adjustments and cost control measures. Its strong brand portfolio and strategic management have helped maintain profitability and market position even in a challenging macroeconomic environment.
AVI Limited’s success can be attributed to its strong brand management, strategic leadership and commitment to CSR. The company’s ability to navigate macroeconomic challenges and maintain operational efficiency highlights its robust business model and market resilience. AVI continues to be a key player in the South African FMCG sector, driven by a focus on sustainability, innovation and consumer loyalty.
Source
AVI Limited. (2024). About Us: Company Overview. Available from: https://www.avi.co.za/our- company/. [Accessed on 2 September 2024].
AVI Limited. (2023). Annual Report 2023. Johannesburg: AVI Limited. Available
from: https://www.avi.co.za/investor/results-and-presentations/annual-reports/. [Accessed on 2 September 2024].
MarketLine. (2023). AVI Limited Company Profile. Available from: https://www.avi.co.za/wp- content/uploads/2023/09/AVI-Company-AFS-2023_HR.pdf. [Accessed on 2 September 2024].
Question 1
Describe how the human relations movement might influence employee engagement strategies at AVI Limited.
Overview of the human relations movement (3 marks) Human relations movement theories (12 marks).
Question 2
Analyse the impact of political and legal factors on AVI Limited’s operations in different countries.
Provide specific examples.
Political factors (5 marks) Legal factors (5 marks).
Question 3
Discuss three (3) different types of management information systems (MIS) used at AVI Limited and their impact on business operations.
Three (3) marks for each description of different types of MIS (3 x 3 marks) Two marks (2) for the impact of each MIS on business operations (3 x 2 marks).
Question 4
Discuss five (5) essential characteristics of successful entrepreneurship, using AVI Limited’s
founders.
Two (2) marks per characteristics of AVI Limited’s founders (5 x 2 marks).
Question 5
Explain the primary purpose of non-profit institutions and how they differ from profit-driven institutions and government institutions. Identify what type of institution AVI Limited is and explain why.
Explanation of non-profit, profit and government institutions (6 marks) Identification and explanation (4 marks).
Question 6
Discuss the progression from brand recognition to brand insistence and explain how AVI Limited might strategically move a consumer through these stages.
Two (2) marks per valid point for each stage (6 marks) Examples (4 marks).
Question 7
Explain how AVI Limited’s organisational structure is influenced by its dynamic environment.
Provide specific examples.
One (1) mark per valid point.
Answers to Above Case Study Questions
Answer 1: There is a significant influence of the human relations movement on employee engagement strategies at AVI Limited in the sense that
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