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• Case | HBS Case Collection | November 2018 (Revised May 2019)

  Almarai Company: Milk and Modernization in the Kingdom of Saudi Arabia

  Kristin Fabbe, Safwan Al-Amin, Esel Cekin and Natalie Kindred

  With SAR 14 billion ($3.7 billion) in 2017 revenues, Almarai was Saudi Arabia’s largest dairy producer, distributor, and marketer, with a large portfolio of branded dairy products, juices, bakery goods, and infant formula and a sales presence across the Gulf region, Jordan, and Egypt. Almarai employed some 42,000 people across its operations, from its massive dairy farms to its processing plants to its vast sales and distribution operation that reached over 100,000 outlets. Notwithstanding its diverse portfolio, the core of Almarai’s business was (1) sales of branded fresh/chilled dairy products, (2) in Saudi Arabia, (3) distributed through the traditional retail channel made up of thousands of small neighborhood shops called bakalas. In October 2018, all three of these focal points were under pressure. Under the economic-restructuring programs of Saudi Arabia’s new crown prince, Mohammed bin Salman, new taxes and subsidy cuts were squeezing household budgets. Concurrently, changes to other government policies were causing expatriates—who made up about a third of Saudi Arabia’s population and were a key consumer of Almarai’s dairy products—to leave the country in droves. This case finds Almarai’s management team, led by soon-to-retire CEO Georges Schorderet, debating how the company can defend and grow its position in Saudi Arabia while also finding new sources of future growth (e.g., bringing its production model to new markets with fragmented dairy sectors or entering new product categories such as fish or ice cream). The decision of how to move forward will be based on an assessment of Almarai’s strengths, how they can be best used to drive future growth, and how relevant they will remain in a market that is changing so dramatically. The note “Saudi Arabia: A Brief Background" (HBS 719-043) is essential supplementary reading for this case.

  Keywords: Dairy; Agriculture; Kingdom of Saudi Arabia; Almarai; Schorderet; food security; public policy; self sufficiency; Gulf; GCC; Business and Government; Agribusiness; Marketing; Distribution; Change Management; Leading Change; Strategy; Government and Politics; Policy; Diversification; Integration; Horizontal Integration; Vertical Integration; Food; Brands and Branding; Growth and Development Strategy; Business and Government Relations; Agriculture and Agribusiness Industry; Food and Beverage Industry; Consumer Products Industry; Saudi Arabia; Middle East;

  Citation:

  Fabbe, Kristin, Safwan Al-Amin, Esel Cekin, and Natalie Kindred. "Almarai Company: Milk and Modernization in the Kingdom of Saudi Arabia." Harvard Business School Case 719-020, November 2018. (Revised May 2019.)  View Details

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• Case | HBS Case Collection | April 2019 (Revised April 2019)

  From Globalization to Dual Digital Transformation: CEO Thierry Breton Leading Atos Into 'Digital Shockwaves' (A)

  Tsedal Neeley, JT Keller and James Barnett

  Thierry Breton, chairman and CEO of IT company Atos, faced a pivotal juncture. After spending eight intense years scaling the company globally to over 100,000 employees in 70 countries, he was ready to take the next crucial step. Breton was convinced that rapid digital shockwaves would cause transformative disruption and become key to competitiveness for companies, including his own. To take the digital leap, Breton needed Atos to undergo dual digital transformation – defined as redesigning the underlying processes and competencies of an organization to become more adaptive using digital technology, from artificial intelligence and machine learning to the Internet of Things, while simultaneously guiding customers through the same changes. Breton had also struck a high-profile partnership with Google to deliver cloud design and artificial intelligence to customers. But now that the deal had been announced, Atos had to deliver. The firm’s top leadership was split on how to equip Atos’ large workforce for its digital transformation. In one view, Atos needed to motivate the majority of its employees to voluntarily complete digital certification programs. In another view, on-the-job learning was the best way to train both technical and non-technical employees in the digital skills relevant to their respective roles. Breton had to determine which approach would be the fastest and most effective way of upskilling his workforce to meet the demands of dual digital transformation.

  Citation:

  Neeley, Tsedal, JT Keller, and James Barnett. "From Globalization to Dual Digital Transformation: CEO Thierry Breton Leading Atos Into 'Digital Shockwaves' (A)." Harvard Business School Case 419-027, April 2019. (Revised April 2019.)  View Details

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• Supplement | HBS Case Collection | April 2019

  From Globalization to Dual Digital Transformation: CEO Thierry Breton Leading Atos Into 'Digital Shockwaves' (B)

  Tsedal Neeley and JT Keller

  Citation:

  Neeley, Tsedal, and JT Keller. "From Globalization to Dual Digital Transformation: CEO Thierry Breton Leading Atos Into 'Digital Shockwaves' (B)." Harvard Business School Supplement 419-046, April 2019.  View Details

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