Petach Tikva / IL. (sg) The Board of Directors of Israel’s Strauss Group Limited approved implementation of the StraussONE plan for improving the company’s organizational operating model, and adapting it to the Group’s strategy and the economic environment.
The structural change is based on a number of principles and decisions:
- Focusing future Group investments in four leading geographical regions – Israel, Brazil, the United States, and China – while maintaining continuity in the geographies in which the Group operates
- Continuously developing growth capabilities and infrastructure through both acquisitions and ventures with new business models
- Focusing business units in Israel on consumers and communities, while ensuring excellence in creating demand
- Concentrating plants in Israel under one division as well as the supply chain under one division for continuous improvement and excellence in the level of product quality, safety and innovation
- Centralizing headquarters and building centers of excellence, as well as crossorganizational capabilities and service, enabling professionalism, synergy and efficiency
- Flattening the organization and reducing management layers to strengthen organizational flexibility, streamlining and effectiveness
The operating model will enable optimal implementation of the strategy and transformation we have defined and intend to carry out. The company expects that the synergies created by the new operating model will contribute to resource optimization and estimated annual savings of 65-80 million NIS before tax (and before one-time costs, which at this stage are estimated to be non-essential).
Group CEO Giora Bardea: «As we draft our multi-year strategy plan, we are carrying out organizational and operating model changes that will help implement the strategy we have already announced. The plan includes steps to advance sustainable growth that will be achieved by focusing investments in selected geographies in which we will continue to develop a competitive advantage, launching new business models, expanding current partnerships, continuing to invest in foodtech, and building excellence in our core areas. The plan also includes adapting the operating model and reorganizing in accordance with the changing reality and the challenges in our economic environment. We are earmarking resources in growth areas, while streamlining in places where it is suitable to create synergies in Israel that will support strengthening organizational effectiveness and excellence.»