MGT520 - Performance Analysis: Almarai vs Nadec Mission Statements

This report critically examines the mission statements of Almarai and Nadec, two major food and beverage companies operating in Saudi Arabia. It begins with an overview of Almarai's business, including its mission to provide nutritious and quality food. The report then analyzes Almarai's mission statement, highlighting its strengths and weaknesses, and comparing it to the mission statement of its competitor, Nadec. The analysis focuses on identifying key differences and their potential impact on the companies' performance. The report also explores the dangers of a flawed mission statement, emphasizing how it can misguide an organization's direction and hinder its ability to achieve its objectives. The conclusion summarizes the key findings and underscores the importance of a well-defined mission statement for business success. This report is aimed at providing a better understanding of the mission statements of the two companies and their impact on the overall performance of the companies.

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Author Note

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Introduction
The main focus of this paper will be to review the mission and vision statements of the
organization of Almarai, which is engaged in manufacturing and distribution of food and
beverage in the region of Saudi Arabia. A critique will be provided on the mission statement of
the company based on whether it complies with an ideal statement or not. The mission statement
of this business house will be compared with one of the competitor of this company and the
major differences will be identified, which may impact the overall performances of the two
companies. The dangers of having a flawed mission statement will also be assessed in this paper.
Critical evaluation will be performed on the identified gaps or flaws that might affect the
performance in Almarai. The selected competitor for the organization of Almarai is Nadec.
About the Organization
Almarai Company, in this context, can be said as a conglomerate based in Saudi Arabia.
The industry from where this organization belongs is the food processing, and was founded in
the year 1977. Headquarter of this business entity is based in Riyadh. The specialization of them
is manufacturing and distribution of food and beverage, and the products which are
manufactured by them includes yogurt, bakeries, dairy, juices, infant formula and poultry. More
than 200,000 cows are now possessed by the management of this company across the whole
world, and in this context, it can be stated that the organization of Almarai is the largest
vertically integrated organization engaged in manufacturing and distribution based in dairy. The
organization entered into a partnership with PepsiCo from 2009, and have successfully
performing their business operations (almarai.com, 2020).

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Mission Statement
The mission statement of this organization focuses in providing nutritious as well as
quality food and beverage that will help to enrich the lives of the consumers on daily basis
(Mission, Vision & Values, 2020). The values that are followed by the management of this
business house through the business operations that are operated by Almarai, where the quality
of the product are maintained along with the maintaining the level of the products that are
manufactured by this organization (Alotaibi, 2019). They use innovative ways to manufacture all
the products that are manufactured by them. But, in this context, it can be said that only the level
of the quality of the food products are mentioned in the mission statement, but there are no
mention about the after sales service that need to be maintained for the food and beverage that
plays and integral part in the daily business operations in the food processing sector globally.
Apart from this, other business aims and objectives are also not clearly mentioned by the
management of the organization, which may confuse stakeholders as well as other people who
are associated with this organization (Singh & Hagahmoodi, 2017). It can be stated that as the
organization of Almarai is totally involved in the business operations related to food processing,
the main mission or the focus will be to provide quality and nutritious, but it might be assumed
that some other objectives also need to reflected in the mission statement of this business house.
About Nadec
In this context, it can be stated that the National Agricultural Development Company or
Nadec is one of the largest organizations in the region of North Africa and Middle East who are
engaged in food-processing and agricultural products. This business entity was founded in the
year of 1981, and 20% share of this company is owned by the government of Saudi Arabia.
Apart from all this, this business entity is also one of the largest vertically integrated as well as

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among the very few companies who are involved in the dairy business operations across the
whole world, which also makes one of the major competitors of the organization of Almarai.
Like them, this company is also based in Riyadh, and more than 60,000 cows are owned and
managed by the management of the National Agricultural Development Company (Nadec.com,
2020).
Mission Statement
The mission statement of the organization of the National Agricultural Development
Company states that the management and the owners of this company is engaged in providing of
tasty and nutritious food to the consumers in order to bring health as well as happiness. This
helps in creation of value to the shareholders, societies and all other people who are associated
with this business house. In this context, it can be said that the mission statements of both the
selected companies are mostly similar in nature, as both of them are from the food processing
industry and deal with a variety of dairy products (Ahmed & Ali, 2016). The management of this
company is committed enough in delivery of delicious as well as innovative products to their
consumers in order to enrich the lifestyle that is possessed by the people of the society where
they serve along with nourishing their daily lives. In the mission statement that is followed by
the management of Almarai, it aims in providing nutritious as well as quality food and beverage
that will help to enrich the lives of the consumers on daily basis, but there was no mention about
offering of any kind of innovative products. But the same is followed by the management of the
National Agricultural Development Company, and this is the major difference of the business
operations that is performed by these two food processing organizations in the Saudi Arabian
market places.

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Dangers of a Flawed Mission Statement
The major threat or danger of having a flawed mission statement is the inability of
guiding the cations that are need to be taken by an organization in order to maintain their daily
business operations in the market places where they are present. It also fails to define the purpose
as well as the major objectives that need to be taken by a company. It can be stated in this
context that the modern business world is getting more and more competitive and a single
mistake will lead the competitors of a particular business organization to gain the competitive
advantage over others (FEINGOLD, 2017). A proper and focused mission statement always
helps to focus to the aims and objectives through the business operations that a particular
company is performing in the markets where they are present. A flawed mission statement will
misguide in the roadmap that a business entity needs to follow to enjoy the success through the
business operations that they are performing. Apart from these, the performance of the company
will also deteriorate along with the reputation that the management have achieved over the years
of the business operations.
The same will happen to the organization of Almarai if a flawed mission statement is
followed by the management of them. As it has been already discussed that the mission
statement for this organization is to provide nutritious and quality food and beverage that will
help to enrich the lives of the consumers on regular basis (Schackmuth, 2018). If this is flawed,
then Almarai will not be able to accomplish the set business objectives of them. Apart from this,
the values and goals for the company will also cannot be accomplished and all of these may lead
to the failure of the entire business operations that are currently operated in the market place of
Saudi Arabia. At last, the competitive advantage that is followed and enjoyed by this

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organization will also be lost and as a result, the entire business operations of Almarai will come
to an end and there will be no existence for the company in the Saudi Arabian market place.

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Reference
FEINGOLD, R. (2017). Fake News & Misinformation Policy Practicum.
Schackmuth, A. (2018). Extremism, fake news and hate: effects of social media in the post-truth
era.
Singh, A., & Hagahmoodi, S. O. (2017). Performance Measurement of Almarai Products and
Customer Satisfaction. International Journal of Management Science, 4(1), 1-12.
Alotaibi, H. (2019). Organisational Structure and the Strategic Planning Process in Almarai
Company of Saudi Arabia.
Ahmed, S. F. F., & Ali, R. F. M. (2016). The factors that affect consumers' decision making of
repeated milk purchasing. The Business & Management Review, 7(2), 68.
Almarai Homepage. (2020). Retrieved 20 February 2020, from https://www.almarai.com/
Mission, Vision & Values. (2020). Retrieved 20 February 2020, from
https://www.almarai.com/en/corporate/almarai/mission-vision-values/
(2020). Retrieved 21 February 2020, from https://nadec.com/
(2020). Retrieved 21 February 2020, from https://nadec.com/nadec-world/mission-vision-values/