How clover creates value
How clover creates value
Overview of Clover’s value creation process
Clover’s value creation process begins with our vision and mission, as the business model is designed to put these into effect. Our business model is the engine of Clover’s value creation and is driven by the resources fed through it in accordance with Clover’s strategy. Its outputs and outcomes are the short, medium and long-term value created in terms of Clover’s vision and mission. Clover’s leadership, support services and our people at all levels must ensure that Clover’s vision flows seamlessly and accurately through the entire value chain and the business model to be transformed into outputs and outcomes that actualise this vision.
Yesterday
Since its founding 118 years ago, Clover was always about milk and its related products. As the decades have rolled by, Clover has spread across southern Africa, added new products and amended its legal identity and business model on several occasions to fit visions and strategies of the time.
Clover underwent a major shift in 2010, which required a rethink of its core vision and mission, followed by a comprehensive reorganisation of the corporate structure and business model to align with the revised mission.
In the following years Clover began leveraging the King III code and Integrated Reporting principles to guide the development of our value creation processes for the long term sustainability of the Company and the environments that we impact.
Today
Since the 2008 global crisis, the risk of company failure or financial losses due to inaccurate or incomplete corporate reporting is a growing priority in investor decision-making. Investors are demanding to see clear and accurate reporting on how companies‘ business models work and how they make their money, or create value.
Clover has long taken the view that the Integrated Annual Report is not simply a compliance document that takes up management time. On the contrary, we utilise it as a worthy management tool for conducting a regular ”reality check” of our performance and strategies.
We also devote considerable time to transparently and concisely laying out the Clover value creation story for all stakeholders to see. This enables stakeholders, shareholders and potential investors to evaluate our actions from an informed basis, as well as gaining their confidence and trust.
Tomorrow
How a company creates value is its ”reason for existence”. Clover has taken the view that company value creation chains, incorporating their business models, will soon become the single most important measure against which companies will be judged.
Investors that go beyond purely financial results to examine company value creation processes will understand why businesses at times need to invest now for longer-term outcomes in future. These are the calibre of investors that every company wants.
In this report, Clover has endeavoured to use King III and Integrated Reporting <IR> principles to clearly show how our value creation chain and business model works for you.
