MNG3701
EXAM PACK
, lOMoARcPSD|18222662
4
MNG3701
October/November 2024
Read the case study below and answer all the questions that follow.
Dischem
Dischem is a prominent retail pharmaceutical group in South Africa. The company’s core belief
centres around prioritising pharmacies and delivering a comprehensive shopping experience,
serving as a one-stop destination for its valued customers. Having been listed on the
Johannesburg Stock Exchange (JSE) in 2016, Dischem falls under the category of Food and
Drug Retailers. Over time, the company evolved into a highly respected brand in the eyes of
South African consumers, built on the pillars of exceptional customer service, diverse product
offerings, and an Everyday Low Price (EDLP) because of its cost cutting approach. Catering
to all customers, Dischem has firmly established itself as a preferred choice, continually striving
to meet the diverse needs of its clientele. Dischem’s comprehensive and interconnected
services give the company a responsibility in a nation where quality healthcare is urgently
needed: to extend affordable healthcare access to millions more South Africans. The
importance of primary healthcare in proactively managing well-being to prevent severe
illnesses cannot be overstated. Beyond alleviating pressure on the public healthcare system,
it enables individuals to lead healthier lives, providing substantial physical, mental, and
financial benefits.
The Dischem Foundation primarily focuses on access to healthcare, access to education and
community upliftment. Last year alone, it provided over 2.4 million nutritious meals to children,
established and supported food gardens, and facilitated access to clean water in rural
communities, thereby fostering sustainable work opportunities and nourishment for those in
need. Dischem’s community clinics also extend health services to those requiring assistance.
Dischem commitment lies in providing customers with products and services while maintaining
affordability, all within the framework of industry regulations and guidelines. Guided by a clear
vision, mission, and values, the company’s daily operations are centred on the collective
direction and objectives, ensuring a cohesive effort toward achieving organisational goals.
Dischem’s vision is to be the preferred and leading retail pharmacy group in Southern Africa.
The company’s mission is to be a committed and caring team that strives to provide consistent
value, low prices and service excellence for customer’s health and beauty needs while caring
for the communities and environments in which the company operates. Dischem takes pride
in the distinctive competitive advantages that set the company apart in the market. Dischem’s
commitment to excellence and innovation positions the company as a leader in the industry.
The Group recently reviewed and adapted its longer-term growth strategy. The successful
implementation of the strategy should result in a diversified earnings profile, improved
shareholder returns and more value for stakeholders. Dischem’s strategy is supported by
substantial human capital, information technology and sound financial and capital
management. Embarking on a path of strategic growth and sustainability, the Group sets
, lOMoARcPSD|18222662
5
MNG3701
October/November 2024
ambitious short- and medium-term targets that encapsulate the commitment to innovation,
excellence, and continued value creation.
The Board holds ultimate responsibility for stakeholder management, ensuring a balanced
approach that considers stakeholders’ needs, interests, and expectations while serving the
Group’s best interests. The execution and oversight of stakeholder engagement are delegated
to the management team entrusted with implementing and monitoring these initiatives.
Shareholders serve as the company’s key suppliers of financial capital within the overarching
investment framework and community they inhabit. The company’s employees, associates,
and partners represent the cornerstone of the company’s human, social, and relational capital,
crucial for steering the daily operations and fostering direct engagements with customers.
Customers constitute the primary market to which the company deliver products and services.
They are pivotal in facilitating the Group’s sustainable, value-driven business. The government
and society encompass the company’s wider national community, including representatives
who advocate for public interests within public institutions. Suppliers form integral parts of the
company’s supply chain, powering operations by providing essential resources and
connections to key means of production.
Annually, the senior management conduct a comprehensive review of the Group’s material
issues, encompassing internal, industry, and macroeconomic factors. This evaluation identifies
key financial and non-financial operational risks that could profoundly affect the Group’s
capacity to generate and uphold value for its stakeholders. The intense competition
significantly impacts various aspects, including pricing, product range and quality, store
location and format, customer service levels, and advertising strategies. The competitors
include other pharmacy groups, independent pharmacies, prescription courier providers, and
a range of retailers such as grocery stores, convenience stores, and online retail platforms.
The healthcare industry in South Africa operates within a framework of extensive government
regulation. Dischem is obligated to adhere to, and bear costs associated with compliance with
numerous laws and regulations, including but not limited to the Pharmacy Act, the Medicines
Act, and the Consumer Protection Act. Dischem’s commitment to Environmental, Social, and
Governance (ESG) principles is central to the company’s corporate ethos. The company is
proud to present its first standalone Sustainability Report, which is now available on the Group
website. Dischem believes integrating ESG into the company’s core business and decision-
making processes is essential for long-term sustainability. Dischem’s sustainability pillars
include good environmental stewardship, investing in employees and the communities it
serves, practising good business ethics, and providing customer-centric service. At Dischem,
the commitment to exemplary governance practices fuels the company’s ongoing efforts to
enhance its business management for sustainable value creation. The company endeavour to
foster an ethical culture that encourages transparent decision making, fostering an
, lOMoARcPSD|18222662
6
MNG3701
October/November 2024
appointment procedures to ensure a balanced distribution of power and authority within its
composition.
Dischem is committed to fair dealings and integrity in its business practices, endorsed actively
by the Board of Directors. This dedication is rooted in the fundamental belief that business
should be conducted honestly, fairly, and within legal boundaries. The company’s commitment
to sustainability is deeply ingrained in its ethos and operations. Dischem believes in conducting
business responsibly, minimising its environmental footprint, and positively impacting the
communities it serves. The company’s comprehensive approach to sustainability
encompasses various initiatives aimed at reducing waste, conserving resources, and
supporting social causes.
The prevailing high interest rates continue to exert pressure on consumer spending habits.
The increased cost of borrowing has prompted consumers to adopt more cautious purchasing
behaviours, affecting discretionary spending in various sectors, including healthcare. There is
a noticeable shift in consumer behaviour towards heightened health awareness and self-
medication practices. This trend reflects a growing emphasis on proactive healthcare
management and the desire for accessible healthcare solutions. Dischem has intensified its
focus on sustainability initiatives in response to increasing consumer awareness of
environmental issues. Consumers are increasingly conscious of the environmental impact of
their purchasing decisions, driving demand for eco-friendly products and responsible corporate
practices. By prioritising sustainability across its operations, from procurement to waste
management, the company meet consumer expectations and align with its values as a
responsible corporate citizen.
Source: Adapted from. https://dischemgroup.com/wp-content/uploads/2024/07/Dis-Chem-
IAR-2024-2.pdf.
EXAM PACK
, lOMoARcPSD|18222662
4
MNG3701
October/November 2024
Read the case study below and answer all the questions that follow.
Dischem
Dischem is a prominent retail pharmaceutical group in South Africa. The company’s core belief
centres around prioritising pharmacies and delivering a comprehensive shopping experience,
serving as a one-stop destination for its valued customers. Having been listed on the
Johannesburg Stock Exchange (JSE) in 2016, Dischem falls under the category of Food and
Drug Retailers. Over time, the company evolved into a highly respected brand in the eyes of
South African consumers, built on the pillars of exceptional customer service, diverse product
offerings, and an Everyday Low Price (EDLP) because of its cost cutting approach. Catering
to all customers, Dischem has firmly established itself as a preferred choice, continually striving
to meet the diverse needs of its clientele. Dischem’s comprehensive and interconnected
services give the company a responsibility in a nation where quality healthcare is urgently
needed: to extend affordable healthcare access to millions more South Africans. The
importance of primary healthcare in proactively managing well-being to prevent severe
illnesses cannot be overstated. Beyond alleviating pressure on the public healthcare system,
it enables individuals to lead healthier lives, providing substantial physical, mental, and
financial benefits.
The Dischem Foundation primarily focuses on access to healthcare, access to education and
community upliftment. Last year alone, it provided over 2.4 million nutritious meals to children,
established and supported food gardens, and facilitated access to clean water in rural
communities, thereby fostering sustainable work opportunities and nourishment for those in
need. Dischem’s community clinics also extend health services to those requiring assistance.
Dischem commitment lies in providing customers with products and services while maintaining
affordability, all within the framework of industry regulations and guidelines. Guided by a clear
vision, mission, and values, the company’s daily operations are centred on the collective
direction and objectives, ensuring a cohesive effort toward achieving organisational goals.
Dischem’s vision is to be the preferred and leading retail pharmacy group in Southern Africa.
The company’s mission is to be a committed and caring team that strives to provide consistent
value, low prices and service excellence for customer’s health and beauty needs while caring
for the communities and environments in which the company operates. Dischem takes pride
in the distinctive competitive advantages that set the company apart in the market. Dischem’s
commitment to excellence and innovation positions the company as a leader in the industry.
The Group recently reviewed and adapted its longer-term growth strategy. The successful
implementation of the strategy should result in a diversified earnings profile, improved
shareholder returns and more value for stakeholders. Dischem’s strategy is supported by
substantial human capital, information technology and sound financial and capital
management. Embarking on a path of strategic growth and sustainability, the Group sets
, lOMoARcPSD|18222662
5
MNG3701
October/November 2024
ambitious short- and medium-term targets that encapsulate the commitment to innovation,
excellence, and continued value creation.
The Board holds ultimate responsibility for stakeholder management, ensuring a balanced
approach that considers stakeholders’ needs, interests, and expectations while serving the
Group’s best interests. The execution and oversight of stakeholder engagement are delegated
to the management team entrusted with implementing and monitoring these initiatives.
Shareholders serve as the company’s key suppliers of financial capital within the overarching
investment framework and community they inhabit. The company’s employees, associates,
and partners represent the cornerstone of the company’s human, social, and relational capital,
crucial for steering the daily operations and fostering direct engagements with customers.
Customers constitute the primary market to which the company deliver products and services.
They are pivotal in facilitating the Group’s sustainable, value-driven business. The government
and society encompass the company’s wider national community, including representatives
who advocate for public interests within public institutions. Suppliers form integral parts of the
company’s supply chain, powering operations by providing essential resources and
connections to key means of production.
Annually, the senior management conduct a comprehensive review of the Group’s material
issues, encompassing internal, industry, and macroeconomic factors. This evaluation identifies
key financial and non-financial operational risks that could profoundly affect the Group’s
capacity to generate and uphold value for its stakeholders. The intense competition
significantly impacts various aspects, including pricing, product range and quality, store
location and format, customer service levels, and advertising strategies. The competitors
include other pharmacy groups, independent pharmacies, prescription courier providers, and
a range of retailers such as grocery stores, convenience stores, and online retail platforms.
The healthcare industry in South Africa operates within a framework of extensive government
regulation. Dischem is obligated to adhere to, and bear costs associated with compliance with
numerous laws and regulations, including but not limited to the Pharmacy Act, the Medicines
Act, and the Consumer Protection Act. Dischem’s commitment to Environmental, Social, and
Governance (ESG) principles is central to the company’s corporate ethos. The company is
proud to present its first standalone Sustainability Report, which is now available on the Group
website. Dischem believes integrating ESG into the company’s core business and decision-
making processes is essential for long-term sustainability. Dischem’s sustainability pillars
include good environmental stewardship, investing in employees and the communities it
serves, practising good business ethics, and providing customer-centric service. At Dischem,
the commitment to exemplary governance practices fuels the company’s ongoing efforts to
enhance its business management for sustainable value creation. The company endeavour to
foster an ethical culture that encourages transparent decision making, fostering an
, lOMoARcPSD|18222662
6
MNG3701
October/November 2024
appointment procedures to ensure a balanced distribution of power and authority within its
composition.
Dischem is committed to fair dealings and integrity in its business practices, endorsed actively
by the Board of Directors. This dedication is rooted in the fundamental belief that business
should be conducted honestly, fairly, and within legal boundaries. The company’s commitment
to sustainability is deeply ingrained in its ethos and operations. Dischem believes in conducting
business responsibly, minimising its environmental footprint, and positively impacting the
communities it serves. The company’s comprehensive approach to sustainability
encompasses various initiatives aimed at reducing waste, conserving resources, and
supporting social causes.
The prevailing high interest rates continue to exert pressure on consumer spending habits.
The increased cost of borrowing has prompted consumers to adopt more cautious purchasing
behaviours, affecting discretionary spending in various sectors, including healthcare. There is
a noticeable shift in consumer behaviour towards heightened health awareness and self-
medication practices. This trend reflects a growing emphasis on proactive healthcare
management and the desire for accessible healthcare solutions. Dischem has intensified its
focus on sustainability initiatives in response to increasing consumer awareness of
environmental issues. Consumers are increasingly conscious of the environmental impact of
their purchasing decisions, driving demand for eco-friendly products and responsible corporate
practices. By prioritising sustainability across its operations, from procurement to waste
management, the company meet consumer expectations and align with its values as a
responsible corporate citizen.
Source: Adapted from. https://dischemgroup.com/wp-content/uploads/2024/07/Dis-Chem-
IAR-2024-2.pdf.
