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Juhayna's Stakeholder Engagement Strategy

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13 views8 pages

Juhayna's Stakeholder Engagement Strategy

Uploaded by

ahmedayman.212
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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4-1- Interested Parties Identification12

Juhayna identifies and engages with various internal and external interested parties, capturing
their emerging interests and needs through a bottom-up approach where inputs are consolidated
as part of the Integrated Business Planning (IBP) Cycle3. Stakeholder engagement and collective
accountability are central to daily operations4.

Customers (External)2:

Needs & Expectations: High-quality organic products, competitive pricing, and consistent
delivery2. They also expect proper nutrition from products5.

How Juhayna deals with it: Strengthening the supply chain, ensuring product quality,
maintaining competitive pricing for retention and growth2. Juhayna also implements a
traceability system for swift responses and reliable tracking6 and has a customer care workflow
that includes prompt complaint reception, root cause analysis, internal follow-ups, and product
replacements, even for user error6....

Investors (External)2:

Needs & Expectations: Financial sustainability, risk mitigation, and positive Return on
Investment (ROI)2.

How Juhayna deals with it: Diversifying revenue streams, improving financial ratios,
highlighting sustainability achievements2. Juhayna is committed to transparency and regulatory
compliance, issuing annual and quarterly financial reports and governance reports1011. The
Board of Directors is responsible for risk management policies and framework12.

Employees (Internal):

Needs & Expectations: A safe working environment, professional development, and fair
compensation1314.

How Juhayna deals with it: Providing comprehensive Health, Safety, and Environment (HSE)
training during onboarding and ongoing refresher courses14. Implementing an incident
management system for immediate response, investigation, and corrective actions for any
incidents1516. Offering a structured onboarding program with personalized plans and
mentorship17, and covering employees and their first-line family members under medical
programs18. Juhayna also introduced the "iVoiceUp" system in 2022 for anonymous reporting of
complaints and whistleblowing concerns, fostering transparency and accountability19.

Suppliers (External):

Needs & Expectations: Stable partnerships and clear communication20.

How Juhayna deals with it: Strengthening supplier relationships, diversifying sourcing
channels, and implementing innovative agreements20. Juhayna also collaborates with the
German Agency for International Cooperation (GIZ) on a supplier training program to develop
capabilities and skills of Egyptian suppliers2122.

Government/Regulators (External):

Needs & Expectations: Compliance with laws, regulations, and legal standards10.

How Juhayna deals with it: Adhering to Egyptian Exchange (EGX) disclosure requirements
and meeting the requirements of international certifications (e.g., BRCGS, Global G.A.P., FSSC
22000, ISO standards)10.... Juhayna's factories, agriculture sites, dairy farms, and branches are
listed on the NFSA’s whitelist23. The company joined the UN Global Compact in 2020,
committing to sustainable and socially responsible policies25....

Community (External):

Needs & Expectations: Contribution to societal needs and quality of life2829.

How Juhayna deals with it: Focusing on youth employment and strengthening community
bonds29. Implementing female empowerment activities such as the GIZ partnership and the
"Heya El Commanda" initiative, which integrates women into the distribution network30....
Partnering with Reform Studio for innovative reuse of packaging, providing employment to
women and contributing to the circular economy33.
4-2- Issues (overall or strategic scope) Identification134
Juhayna operates in an ever-changing world35 and continually navigates a complex and dynamic
global and domestic macroeconomic landscape36. Key issues include:

Economic Instability (Risk)36...:

Source: External36....

Description: High inflation rates, devaluation of currency, foreign exchange shortages, and
economic pressures37....

Effect: Negative – Increases operational costs and leads to foreign currency losses37....

Supply Chain Challenges (Risk)20...:

Source: External3742.

Description: Delays in imported raw materials disrupting operations, global supply chain
turbulence, and import restrictions20....

Effect: Negative – Can disrupt operations and impact consistent production and
distribution3739.

High Debt Levels (Risk)4344:

Source: Internal4344.

Description: A significant increase in net debt (320% from 2023 to 2024)36 and a high net debt
to equity ratio (86% in 2024)45.

Effect: Negative – Poses a risk to financial sustainability and requires optimization of
funding2....

Competition in the Organic Market (Risk)46:

Source: External46.

Description: Operating in a market with competitive pressures46.

Effect: Negative – Requires continuous efforts to maintain market position and product
differentiation46.

Growing Demand for Sustainable Organic Products (Opportunity)47:

Source: External47.

Description: Increasing consumer awareness and demand for organic and sustainable
products47.

Effect: Positive – Provides opportunities for market expansion, product innovation, and
enhanced brand reputation47....

Carbon Credit Monetization (Opportunity)50:

Source: Internal/External50.

Description: Potential for generating revenue and demonstrating environmental leadership
through carbon reduction initiatives50....

Effect: Positive – Enhances financial and natural capital, aligning with sustainability goals49....
4-3- Risk and Opportunity Assessment154
Risk analysis is the process of understanding the nature and level of risk55. Juhayna's Internal
Audit department employs a risk-based and dynamic audit plan56. The importance of a risk is
calculated by multiplying its likelihood by its consequences, while the importance of an
opportunity is calculated by multiplying its opportunity effect by its possibility of
implementation54.

Economic Instability (Risk):

Likelihood: High – Constantly mentioned macroeconomic challenges, inflation, and currency
devaluation36....

Consequences: High – Leads to increased operational costs and significant financial losses37....

Importance: Red (Urgent and Important)54.

Supply Chain Challenges (Risk):

Likelihood: High – Ongoing global supply chain turbulence and import restrictions4257.

Consequences: Average – Can disrupt operations, but Juhayna has demonstrated ability to
mitigate impacts37....

Importance: Red (Urgent and Important)54.

High Debt Levels (Risk):

Likelihood: Very High – Net debt significantly increased (320%) in 2024, and the net debt to
equity ratio is high (86%)3645.

Consequences: Very High – Represents a substantial financial burden and risk to long-term
sustainability236.

Importance: Red (Urgent and Important)54.

Competition in the Organic Market (Risk):

Likelihood: High – The market is competitive, requiring continuous strategic effort4658.

Consequences: Average – Can pressure market share, but Juhayna holds a leadership
position4658.

Importance: Red (Urgent and Important)54.

Growing Demand for Sustainable Organic Products (Opportunity):

Opportunity Effect: Very High – Aligns with Juhayna’s core mission and offers significant
market growth potential47....

Possibility of Implementation: Easy – Juhayna already has established sustainable practices
and product lines48....

Importance: Red (Urgent and Important)54.

Carbon Credit Monetization (Opportunity):

Opportunity Effect: High – Potential for new revenue streams and reinforcement of
environmental leadership50....

Possibility of Implementation: Average – Juhayna reports on carbon footprint and sets
emission reduction goals, but direct monetization initiatives are not explicitly detailed as fully
implemented50....

Importance: Red (Urgent and Important)54.
4-4- Risk and Opportunities Action Plan160
When planning how to achieve its quality objectives, an organization should have an action plan
that determines what will be done, what resources will be required, who will be responsible,
when it will be completed, and the result of follow-up60.

Economic Instability (Risk):

Decision Taken: Implement cost control and price optimization strategies61.

Activities:

Optimize procurement, manufacturing, warehousing, and distribution strategies to enhance cost
efficiency39.

Sharpen focus on exports to fortify foreign currency reserves and mitigate economic
challenges38.

Maintain vertical integration strategy to enhance cost efficiency and consistent production39.

Responsibilities: Supply chain team, finance team, management20....

Status: Ongoing/Implemented – Juhayna successfully navigated challenges in 2024, indicating
active implementation36.

Supply Chain Challenges (Risk):

Decision Taken: Diversify suppliers and streamline procurement62.

Activities:

Strengthen supplier relationships and diversify sourcing channels through innovative
agreements20.

Implement contingency plans, including sourcing from new regions42.

Utilize automated monitoring systems and other technologies to optimize operations and reduce
costs57.

Improve logistics and inventory management systems using tools like geo-mapping and
handheld applications for distribution networks63.

Responsibilities: Procurement Team, Supply Chain Team, Logistics Team20....

Status: Implemented – Juhayna reported successful navigation of disruptions and maintained
product quality4257.

High Debt Levels (Risk):

Decision Taken: Reduce dependency on debt and optimize funding44.

Activities:

Explore partnerships or grants64.

Focus on cost-efficient initiatives64.

Continue to leverage vertical integration for cost efficiency39.

Responsibilities: Finance Team, Strategic Planning Team (SPT)3964.

Status: Ongoing – Net debt remains a significant financial aspect, indicating continuous
efforts36.

Competition in the Organic Market (Risk):

Decision Taken: Enhance product differentiation and quality46.

Activities:

Invest in rigorous quality standards, including state-of-the-art rapid testing for
contaminants5065.

Conduct regular internal assessments and external audits to ensure compliance with Good
Practices and Standards2366.

Provide technical training through the Quality Training Academy to enhance employee
knowledge and identify non-conformities6667.

Maintain "Food Safety Culture Excellence" (JFSCE) initiative to drive continuous
improvement67.

Responsibilities: Marketing Team, R&D, Quality Assurance Team, Production, Maintenance,
Warehouse, Sales, Logistics5066.

Status: Implemented/Ongoing – Juhayna consistently achieves and renews international
certifications and maintains a strong quality framework2366.

Growing Demand for Sustainable Organic Products (Opportunity):

Decision Taken: Develop new organic product lines and expand market presence47.

Activities:

Launch new products catering to healthier lifestyles, such as dairy-free Nuts & Grains plant-
based milk and various Greek yogurt flavors48....

Integrate environmental and social performance into the business model and EESG Strategy49....

Partner with local authorities and organizations to promote consumer education on healthier
diets59.

Responsibilities: R&D, Product Development, Marketing, Sustainability Committee48....

Status: Implemented/Ongoing – New products have been launched and sustainability is a core
part of Juhayna's strategy48....

Carbon Credit Monetization (Opportunity):

Decision Taken: Enhance carbon credit production initiatives50.

Activities:

Publish carbon footprint reports annually to evaluate impact and identify areas for emissions
reduction5152.

Commit to a 42% emissions reduction goal by 203052.

Implement initiatives like the pilot electric vehicle program63.

Engage in partnerships for recycling used beverage cartons to expand recycling capacity70.

Responsibilities: Sustainability Team (implied), R&D (for farming techniques)4452.

Status: Ongoing – Reports are being published and goals are set, indicating movement towards
this opportunity5152.
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