Group strategy
Our strategic direction remains clear: Balancing short term actions with longer term value creation objectives
We revised our strategy three years ago after engaging with our shareholders to determine their concerns, expectations and priorities A further revision was undertaken in 2020. We reflected on a number of key questions:

What is the full potential of each business in the portfolio today in the context of the constraints of their existing markets?

Are there opportunities within each of our chosen business segments to further expand the group?

What else would we need to deliver on our growth for value ambitions?
OUR AMBITION IS BOLD
To sustainably double the intrinsic value of our business every four years, enabled by the managing for value operating model.
OUR VISION
We create enduring economic and social value for our stakeholders by building businesses that serve industrial customers
OUR STRATEGY
Seeks to create value by balancing our long term growth ambitions while focusing on achieving acceptable returns for our shareholders in the medium term. This will continue to be underpinned by our sustainable development framework. In order to adapt to this new operating context and achieve our ambition, the Group will drive the strategy by addressing three critical levers in the short to medium term:
FIX AND OPTIMISE OUR EXISTING PORTFOLIO
In terms of fix and optimise, we continue to reassess the performance of the businesses and identify opportunities to unlock value in the current environment. The quick implementation of austerity measures by management is expected to bolster performance in the short term and support results in the medium to long term. Equipment southern Africa has made great progress in rightsizing and streamlining operations in Botswana and Angola with ROIC improving period-on-period. The Logistics business turnaround is ongoing, and the Group is continuously assessing performance and the medium term outlook in light of the current environment. We previously disclosed our intention to dilute our interest to 50% of the equity in Avis Fleet. Given the current market environment, a decision was taken to place this initiative on hold. This position will be re-assessed at the appropriate time and in the context of the Group's strategy and a further review of the portfolio in light of the changing market conditions and longer-term structural changes expected in several segments. Avis Fleet is now reported as part of continuing operations for the full year and going forward. Further to this, management and the board took a decision to integrate the Avis Budget and Avis Fleet businesses in an effort to unlock synergies and value. This operating model is centred on the ever-evolving needs and requirements of customers and presents an opportunity to offer integrated end-to-end mobility solutions to customers, while creating further efficiencies through the consolidation of common processes. The review of the Automotive portfolio is ongoing amid the changing environment. The review has resulted in Car Rental and Avis Fleet being integrated into a single unit to ensure the realisation of benefits of scale between these two businesses and also address gaps in product portfolio driven through a single focused management team. Options around the optimal deployment of capital in Motor Retail remain under due consideration. The Group is also considering market conditions in the Logistics business and evaluating its future options around this business.
IMPLEMENT AN ACTIVE SHAREHOLDER OPERATING MODEL
We have also made a conscious effort to change the nature of the Group to become an active shareholder by focusing on five key pillars:

STRATEGY AND M&A
Sets strategy for the Group and drives transactions through a centralised M&A function

LEADERSHIP AND TALENT
Managed centrally and deployed to the best available opportunities in the Group

PERFORMANCE MANAGEMENT
Monitor, measure and reward performance linked to Group priorities

RESOURCE ALLOCATION
Allocation of financial, human, time and other organisational resources, based on performance and alignment to strategy

RESPONSIBLE CORPORATE
Conducting our business in a responsible manner that contributes to positive socio-economic and environmental outcomes that are aligned with our stakeholder expectations as well as governance
ADD HIGH GROWTH BUSINESSES TO OUR PORTFOLIO
Our key priority moves to programmatic M&A in line with our established set of guardrails and verticals that will provide us a platform from which to grow further. We will pursue the mergers and acquisitions program by pivoting the portfolio into chosen segments building off the current base towards an industrial company with a business-to-business operating model focusing on Industrial Equipment and Services and Consumer Industries in food and ingredients. We have the right competencies and the right experience, we are also considering leveraging our offshore ownership structures by capitalising on opportunities in developed markets.
OUR STRATEGY REMAINS ROBUST
Driving sustainable value creation through our core strengths
Notwithstanding the challenging macro-environment both in the regions in which we operate as well as globally, our strategy remains robust and unaltered. Given the rapidly evolving and turbulent external environment, including input from our stakeholders, we reevaluated the way in which we are to execute our strategy while leveraging our core strengths to drive business growth in the medium term. Market forces, stakeholder sentiment and our longer term assumptions influence our strategy execution focus areas.

THE BARLOWORLD BUSINESS SYSTEM (BBS)
The effective execution of our group strategy has necessitated the design and implementation of a repeatable and scalable high-performance business system to increase the competitive advantage of our portfolio of businesses and enable the achievement of our vision and ambition.
Accordingly, the BBS, which anchors its business excellence pillar on a methodology based on the lean principles of the Toyota Production System (TPS), was launched with the guidance and support of experienced consultants.
WHAT IS THE BBS?
The BBS is a structured business operating system that enables a high-performance culture of both continuous improvement and business excellence to delight our customers and sustainably create value for our stakeholders. Our purpose is to defy limits by delivering breakthrough performance and results for Barloworld and our stakeholders.
THE KEY PILLARS OF THE BBS PHILOSOPHY ARE:
- Respect for people, including society and the environment
Continuous improvement.
THE KEY PRINCIPLES OF THE BBS:
- The customer defines value
- Value to customers must be delivered on demand and right, first time
- A new way to evaluate and improve existing processes, removing waste and defects
- It demands that we standardise and document 'today's best-known way' of running a process
- Drives the ambition to continuously improve on a daily basis
- Mutual respect and shared responsibility enable higher performance
- Individuals go through a deep personal learning experience by 'learning as we do'
- It brings in new ways of working through innovation and embracing new business models
- Drives a change in leadership style and culture in the organisation.

Related Content
- Our Business
- Group Structure
- Barloworld Worldwide Code of Conduct
- Barloworld 10 Pillars of Sustainability
- Investment case
Related Links
- Global Reporting Initiative (GRI) content index
- Barloworld IR 2021 – Progress against our strategy
- Barloworld IR 2021 – The role of BBS in creating value
- Barloworld IR 2021 – What winning looks like through BBS
- Barloworld IR 2021 – Group chief executive officer's review
- Barloworld IR 2021 – Strategy review and outlook
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