‫ﺑﺴﻢ الله اﻟﺮﺣﻤﻦ اﻟﺮﺣﻴﻢ‬

UNIVERSTY OF KHARTOUM
SCHOOL OF MANAGEMENT STUDIES
DEPARTMENT OF MANGEMENT

Strategic management assignment

DAL GROUP:
 Prepared by
GOFRA AHMED SIDAHMED
FARAH
(Management and finance) Batch
019 (B)

Nada Mohammed Abdelrahman

Nasr (Management and finance)
Batch 019 (B)

Suaad Surag Alden Ahmed

Mohamed
(Accounting and finance) Batch
019 (B)
 UNIVERSTY OF KHARTOUM
SCHOOL OF MANAGEMENT
DAL GROUP:
STUDIES DEPARTMENT OF
MANGEMENT

Introduction

It is the largest private company in the Sudan .It operates in several business
sectors including food, engineering and agriculture.
Its upbringing:
1951– Sayre & Cooley was founded by two British businessmen. The company
specialized in trading engineering products, such as bearings and belts, and later
obtained a Caterpillar agency in Sudan.
1966 - Ten years after Sudanese independence, Caterpillar decided to transfer the
dealership to a Sudanese company, with the original British owners retaining a
minority stake. The contract was awarded to Mr. Dawoud Abdel Latif and his
newly established Sudanese Tractor Company (SUTRAC).
Between 1970 and 1971, both SUTRAC and Sayer & Colley were nationalized.
Within a year, both companies were privatized with the government retaining a
minority stake (the shares of the British partners were bought out).
1975 Mr. Dawoud Abdel Latif's eldest son, Mr. Osama Dawoud Abdel Latif,
joined SUTRAC.
From 1978 to 1979, Mr. Osama Dawoud Abdel Latif assumed the position of
Sales Director of Sutrax. The two companies returned to full private ownership,
and the government's minority stake was bought out. Mr. Osama Dawoud Abdel
Latif also changed the company's name from Sayre & Cooley to Dahl
Engineering (after the initials of his father's name).
Its field of work and its affiliated units:
In 1984, Dal Agricultural Company was established, specializing in providing
agricultural contracting services, benefiting from Sotrac’s relationships with the
agricultural sector. Most of its work is concentrated in the fertile Gezira State
(south of Khartoum), where DAL Agricultural is responsible for plowing more
than a million acres of agricultural land. The company also began purchasing
land and planting sorghum.
1988 - As the group began to grow, DAL Property Development was established
to provide architectural design, construction and facility maintenance services.
DAL Motors was established in 1994 as a natural extension of the company's
engineering activities and obtained the exclusive Mitsubishi dealership in Sudan.
1995-1996 During the early 1990s, DAL Agricultural Company often paid its
wages in wheat rather than cash. When Daoud Abdel Latif’s family saw an
opportunity, they started trading in flour.
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 UNIVERSTY OF KHARTOUM DAL FOOF
SCHOOL OF MANAGEMENT
STUDIES DEPARTMENT OF
MANGEMENT

Saiga Flour Mills was established as the first large-scale, high-quality flour mills
in Sudan, with its flour sold to bakeries across the country. Today, Saiga is one
of the largest milling operations in the region, with a production capacity of more
than one million tons of grain annually.
1997-1998: A dairy processing company, Blue Nile Dairy (today known as Dal
Dairy), was founded and began as a place for family relaxation after long days of
work. Dahl Medical Company was also established, with only one product.
Today, its portfolio includes hundreds of products from leading multinational
pharmaceutical brands. Sudanic Liquid Air (SLA), a producer and distributor of
medical and industrial gases, joined the group. The company was founded in
1949 as a branch of the French company Air Liquide, and became Sudanese-
owned in 1964.
2000 - Blue Nile Dairy Company became the first company in Sudan to obtain
ISO certification. The Saiga Bakery Development School was opened, which
trained bakers, and later housewives, in modern baking techniques.
2002 - The group won a contract to become the exclusive bottler and distributor
of Coca-Cola brands (Coca-Cola, Sprite, Fanta) in Sudan, and DAL Food
Industries (DFI) was established. The packing plant is considered a regional
model in terms of quality and standards.

2003 – Individual companies merged under the name “Dal Group”.

Establishment message:
The mission of the DAL group of companies revolves around raising the quality
of life in the Sudanese community in which it operates. We will mention the main
and basic aspects of the mission of the DAL facility:
1. Community service: It serves the community in several ways, starting with
providing food supplies (flour, dairy, and their derivatives, etc.). Its food supplies
are distinguished by high quality, taking into account the safety rules and
specifications in the country.

2. Social responsibility: It provides job opportunities for a large number of

community members due to its excellence and development in its field and the
expansion that occurs within the facility, which provides job opportunities.
3. It contributes to the development of the country’s local economy through
investments, encouragement, and focus on agriculture on the facility’s private
farms, which has a positive impact on the country’s local economy.

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 UNIVERSTY OF KHARTOUM
SCHOOL OF MANAGEMENT
DAL FOOD
STUDIES DEPARTMENT OF
MANGEMENT

Company clients:
1. Industry and Trade Sector: These are the commercial activities that use
DAL Company’s products and generate profits. In this field, bakeries use
flour such as “Sika” and other production inputs such as “agricultural
machinery and technologies provided by DAL Company,” as it supports
major agricultural projects.
2. The final consumer: Millions of Sudanese families depend on DAL
products in their daily lives, such as “Kabu” dairy products and its
derivatives of yogurt, mish, etc., starches and “Sika” flour.
The markets in which it operates are three:
1. The local market (Sudanese market): It is the facility’s mother market
and it dominates the food and automobile sectors (Mercedes and Mitsubishi
agents).
2. Regional markets (in Africa): It began to spread and expand in Africa
(neighboring countries) in the fields of flour and engineering services.
3. Global markets: The DAL Group began operating offices in Dubai and
London, where it manages exports, exporting Sudanese products and crops,
supply chain channels, as well as investments.
Analyze the internal environment and what are the company’s strengths and
weaknesses?
First: Strengths
1_Diversity of products:
Dal Foods produces a wide range of commodities (such as flour, dairy, beverages,
fodder…), which enhances its ability to meet the needs of the multiple local market.
2- Having a strong brand:
The company owns well-known brands that are trusted by the Sudanese consumer
(such as Sayga, Capo, and others).
3-Wide distribution network:
Dal's products are widely available in local markets, with a strong spread through
agents and distributors in the various states of Sudan
4- A strong social role:
The company actively works in social responsibility projects such as supporting
education, environment, and worker programs, which enhances its image in the
community.
5- Commitment to quality and international standards:
Some of its facilities obtaining ISO certificates and other international awards
enhance consumer confidence and product quality.
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6- Regional growth opportunities:
Having representation and sometimes entering markets outside Sudan (such as
UNIVERSTY OF KHARTOUM
SCHOOL OF MANAGEMENT STUDIES DEPARTMENT OF DAL FOOD
_ _ _ __ __ _
M A N G E M E N T

representing its products in neighboring countries).

Second: Weaknesses:
1- Relying heavily on the Sudanese local market:
Despite some regional activity, the bulk of revenues and business depend on the
Sudanese economy, exposing it to the risks of economic decline and fluctuations in
demand. (Inference from the nature of corporate activity in unstable economic
environments).
2-Complexities of production and logistics:
The company faces supply chain challenges due to poor infrastructure in Sudan, such
as poor roads and high transportation costs, which affects operational efficiency.
3-Financial challenges and economic fluctuations:
Exchange rate fluctuations and the high cost of raw materials affect profit margins
and the company's ability to plan long-term.
4- Technology and innovation issues:
Compared to international companies, the production tools and technology used may
be less advanced, which may limit efficiency and high productivity
5-Complexities of dealing with international finance:
The Sudanese market's limited access to international financing points due to
international sanctions/policies affects th company's ability to expand its business
freely. (Based on the nature of business in Sudan and the international economic
environment)
Does the company have a competitive advantage? What is the source of this
competitive advantage?
Yes she has
Key competitive advantage: vertical integration in the value chain
Dal Food Company is not just an ordinary food manufacturing company, but rather an
integrated entity that begins with agriculture and ends with distribution:
*It owns agricultural activities to produce raw materials (cereals, fodder, milk, etc.).
*It manufactures and packages various products (flour, dairy,beverages, pasta, feed,
etc.).
*It has an advanced and wide distribution network inside Sudan (points of sale,
distributors, retail customers).
This integration reduces costs, increases production efficiency, and gives them strong
control over quality and availability
This ability to combine the production chain from raw materials to the final product
and distribution is a strong competitive source because its re-creation by competitors
requires huge investments and a long time.
Sources of competitive advantage:_
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 UNIVERSTY OF KHARTOUM
SCHOOL OF MANAGEMENT STUDIES DEPARTMENT OF

_ _ _ __ __ _
M A N G E M E N T DAL
FOOD

1-Vertical Integration
The company makes the value chain connected — from farming to reaching the
consumer. This reduces costs and increases the efficiency of operations.
2- A very strong distribution network in Sudan
The presence of a wide spread of its products in the markets, which means faster and
more consistent access to consumers, and gives it an advantage over its competitors in
availability and spread.
3- Occupying a leading position in the market for basic products
Like flour (via "Saika" tag)
– Dairy products (via the “Capo” brand)
– Beverage, milk and feed processing.
This location makes it a well-known brand that Sudanese families trust
4-Strong and different brands
Owning more than one well-known brand in various categories (flour, dairy,
beverages, feed) makes it able to satisfy multiple sectors and segments of the market.
5-Focus on quality and products suitable for the local market
The company expresses its commitment to providing high-quality, safe products that
suit the Sudanese consumer’s taste and lifestyle on an ongoing basis, which increases
consumers’ loyalty to it.
6-The ability to face economic challenges with financing partners
International investments and partnerships (such as financial investments to boost
wheat supplies) enhance the company's survival and ability to secure essential
materials even in times of challenges.
What strategies does the company follow to achieve competitive advantage? Is cost
leadership?
, Differentiation, Cost leadership with differentiation or focus?
Dal Food Company does not rely on only one strategy, but rather follows basically:
 Cost leadership with distinction
Not focus.
Why does DAL follow cost leadership with distinction?
1- Cost leadership (partially):-
 Achieve cost reduction through:
-Vertical integration (from agriculture to distribution)
-Mass production (Economies of Scale)
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-An internal distribution network that reduces dependence on external parties
This allows it to provide:
[Link] products (such as flour) at affordable prices for the majority of consumers.
[Link] (clearly):-
At the same time, DAL stands out from competitors because:
-Strong and reliable brands (such as Saiga, Kapo)
*-High quality and consistent manufacturing standards
*-Strong reputation and Sudanese consumer confidence
*-A wide variety of food products
The consumer does not buy just because the price is lower, but:
Because the product is reliable, available, and safe
Why is it not a focus strategy?
D. Do not target a narrow segment
Rather, it targets:
*Sudanese families
*The broad market
*Everyday essential products
 So it is a broad market strategy, not a focus.
To what extent are these strategies effective and appropriate for the company:
Strategies are compatible with the company's vision and goals and are in line with the
values and expectations of stakeholders. Their effectiveness is represented in
developing the quality of the product and achieving a competitive advantage for the
organization in the market, and the success of the organization in achieving profits by
satisfying the needs and requirements of the consumer, and creating loyalty from the
consumer to the organization.
What successes has the company achieved through the strategies it adopted:
The strategies have led to remarkable success in the company. For example, the
differentiation strategy has led to the introduction of unique, high-quality products,
which has created strong brand loyalty (Dahl Group has an impressive portfolio of
leading brands that impact the lives of millions every day. It contributes positively to
the success and growth of its business partners’ brands, making it the ideal choice for
international brands wishing to invest in Sudan).
The cost strategy led to attracting a wide segment of customers at competitive prices.
The marketing strategies are appropriate with the culture of society and consumers
trust the company’s products.
A finalist for the Best Strategic Project Award
Management Consulting Association (MCA) in 2013 in developing an agricultural
investment strategy, and there are many awards in other sectors of the company such
as the leading market share award, and an award in the field of corporate social
responsibility.
What are the factors and reasons that helped achieve the level of performance you
achieved:
DAL Group has an excellent reputation for conducting all its businesses according to
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the highest standards of business ethics.
• Integrating quality and food safety standards into the core of business strategies,
operations and performance indicators.
• Establish and review measurable quality and food safety objectives for all
operations, in line with the risks and opportunities available in the DAL context.
• Promote an inclusive ownership culture in which employees feel valued and
respected.
• Ensure all employees are competent and appropriately trained to understand and
perform their roles in quality and food safety.
• Select business partners who embrace our commitments and demonstrate
compliance with DAL Foods' quality and food safety standards.
Dal Foods Company is committed to striving for excellence in the field of
occupational health, safety and environment in all its business activities, in order to
create added value for all stakeholders.
To what extent is there a relationship between the degree of strategic management
practice and the organization’s performance:

There is a strong relationship between the degree of strategic management practice

and the performance of the facility, as strategic management provides a clear vision
for the future and defines the general and specific goals of the facility, the strategic
capabilities that the facility possesses, the long-term direction it takes to achieve its
goals, directing resources and energies towards strategic goals in order to ensure their
optimal use, reviewing strategies, adapting to changes, and continuous follow-up to
ensure the success of the change.
Strategic management in establishments also contributes to developing the skills of
the human element through training courses internally or externally, and their
participation in setting goals and methods for implementing them.
The application of strategic management leads to improving the administrative and
financial performance of institutions, and the performance is characterized by
effectiveness and efficiency.

Our Reference links:-

[Link]
[Link]/[Link]/history/

[Link]

Academic Journal for Scientific Research and Publishing

[Link]

1-The official company website (DAL Food)

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2- DAL Group – Food & Beverages website

3- Reports on financial partnerships and support for basic food supplies

4- A report on the company’s integrated approach and market challenges

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