Question 2 [34] Read the case study below and answer the questions that follow: IS TIGER BRANDS STRATEGICALLY READY TO COMPETE AND COOPERATE? Headquartered in Bryanston, South Africa, Tiger Brands Limited has been one of the largest manufacturers and marketers of food, home and personal care brands, and bay products in Southern Africa for several decades. Founded in 1921, the consumer goods company has used expansions, acquisitions and joint ventures to achieve a distributed network that now spans more than 22 African countries. Apart from its operations in South Africa, Tiger Brands also has interests in international food businesses in Chile, Zimbabwe, Nigeria, Kenya and Cameroon. For the period October 2014 to March 2015, Tiger Brands reported a 9 per cent increase in operating profit from domestic businesses; the total group turnover increased by 7 per cent to R15.9 billion, while operating profit before the IFRS 2 charges declined by 3 per cent to R1.7 billion. In 2010, the Competition Commission found Tiger Brands and its competitors Pioneer Foods and Premier Foods guilty of anti-competitive behaviour and conspiring to increase the price of bread. Pioneer settled on a penalty of nearly R1 billion and Premier was granted immunity for co-operating with the commission. However, despite co-operating Tiger Brands had to pay a fine of nearly R90 million. Tiger Brands' statements of vision and mission, posted on their corporate website, include its aim to be the most admired brand for packaged consumer goods in emerging markets. Tiger Brands is also working towards being a high-performing, fast-moving company that operates across the globe in several emerging territories (David & David, 2017:153). According to Michael Porter in his Five Generic Strategies, strategies allow organisations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus (David & David, 2017:134). Striving to be a low-cost producer in an industry can be especially effective when the market is composed of many price-sensitive buyers, when there are few ways to achieve product differentiation, when buyers do not care much about differences from brand to brand, or when there are a large number of buyers with significant bargaining power. 2.1 Explain why Tiger Brands pursues a cost leadership strategy (Type 1 and Type 2). (3) 2.2 List five (5) conditions under which a cost leadership strategy can be effective. Evaluate these conditions with reference to Tiger Brands. (10) 2.3 Do research on the internet and write down the vision and mission statements of Tiger Brands. (4) 2.4 Differentiate between a vision and a mission statement with reference to Tiger Brands