The Nation Newspaper

Tag: simple

  • ‘I like to keep things simple’

    ‘I like to keep things simple’

    Peter Ndegwa is Managing Director/CEO, Guinness Nigeria Plc. In this interview with Ibrahim Apekhade Yusuf he speaks on the challenging business environment in the country vis-à-vis the opportunities it present for growth for companies ready to look inwards, as well as his management style, among other issues. Excerpts:

    These are trying times for businesses in the country. What has been your greatest challenge?

    The economic environment has been challenging for all businesses and we are no exception. In fact every CEO in Nigeria at the moment is confronted by lots of challenges with the economy being the biggest one. Within the context of the economy, there are three things to be mindful of. Firstly, consumers are under pressure given that we are in a recession and for businesses like ours who sell consumer goods, it’s is an important consideration. We have also seen a lot of down-trading by consumers as well as a reduction in the frequency of purchase thus forcing them to prefer lower priced brands.

    Secondly, the cost side has had the most fundamental impact on many businesses. As evidenced by many of the financial results being announced, one would see clearly that the cost side of the business has posed a very great challenge for many firms. This is primarily caused by the currency, in terms of where the naira is versus the dollar and also inflation. On the Forex issue, we have seen a move from a fixed rate to a kind of managed float which has led to depreciation of our currency of about 50 percent. When you then compare that with the parallel rate, which is the proxy that is being used for pricing goods, the impact on industry becomes very significant directly through from when you import inputs and also on our local suppliers who also depend on imported inputs.

    So while we have increased our local sourcing from about 40% to 70% in the past two years, we have had it easier with raw materials like sorghum because they come from farms. But what we have seen when we locally source, especially for packaging materials, where large components are imported is the inability to source for foreign currency from the official market has forced them to go into the parallel market which they in turn now use to price our goods. As such, we have seen producer input costs go up by about 50%. Even with sourcing local raw materials, we have had some challenges partly in terms of crop failure, and partly because of increase in trading around the borders which is driven by currency which means that the price we’ve had to pay for sorghum for example is twice or two and a half times increased.

    The third factor which is also very important is related to energy.  We have seen less availability of gas during the year. Our energy supply in many of our factories is dependent on gas plants especially in Lagos. As such, when gas is not available, we are forced to use diesel which is less efficient and more costly.

    So when you translate these big elements into performance, your topline and costs are under serious pressure. And then in terms of funding, interest rates have gone up, and because you have less cash flow, you have to take a little bit more debt, including foreign currency debt so that you are able to fund the business given the lack of liquidity.

    What makes Guinness Nigeria Plc unique?

    I’m proud of all our brands in Guinness Nigeria. Our business in our industry is considered and referenced as the innovation powerhouse. Innovation continues to be a critical part of our DNA as a business. For example, in the last three years, Orijin has come alive, whether it’s the Orijin ready to drink, a very strong brand that has excited customers. From there, we have launched Orijin Bitters, a spirits drink and Orijin Zero, a non alcoholic version. So Orijin is a very strong and innovative brand that we have leveraged to launch exciting extensions across a number of customer categories. So we are very proud of Orijin.

    It is important to note that we have also launched innovation on the basis of our big brands.  So for Guinness, we launched Guinness Africa Special which appeals to more contemporary consumers, slightly smoother and lower alcohol. In the malt segment, we have launched Malta Herb Lite for consumers who still want to enjoy the goodness of the Malta Guinness brand but with less calories. Even though, it is still early days, initial consumer reaction to Malta Guinness Herb Lite has been very great. We have been known primarily for our premium beer brands but with our Satzenbrau brand, we have begun to expand access to enable us participate in the accessible categories.

    We have also begun to innovate in the area of Spirits, which is a big part of our strategy going forward. In January 2016, Guinness Nigeria acquired the rights to distribute Diageo’s International Premium Sprits (IPS) like Johnnie Walker, Baileys, Smirnoff, etc  in Nigeria making us the only truly total beverage alcohol (TBA) company in Nigeria offering the widest range of drinks – from adult premium non-alcoholic drinks (APNADS) to lager, stout and IPS. We also acquired the rights to distribute brands from India’s largest spirits business, United Spirits Ltd (USL) for brands like McDowell’s Whisky. Also last year we commissioned a production line for the local manufacturing of spirits at our Benin plant. We have just launched some exciting innovations from there using global brands like Smirnoff, Gordons to locally produce variants such us Smirnoff X1, Smirnoff X1 Chocolate and Gordons Moringa. This is an exciting time for us as a business because I was in trade visiting some of our outlets and saw the brands selling. Innovation is a competitive advantage for us in this market and we have a strong innovation pipeline to drive the products which would leave our consumers spoilt for choice.

    Your company embarked on the rights issue recently. What informed this?

    In January this year, we held an Extra Ordinary General Meeting where shareholders approved for Guinness Nigeria to go out there and raise N40 billion using a rights issue. The reasons why we are going for a rights issue are very straight forward. I have earlier provided a context to the harsh realities of the operating business environment so business is under pressure from the currency challenges and that has impacted our performance – reducing earnings. Also because of the liquidity in the market, we have had to get dollar based loans to enable us fund our imports so that we can continue to produce brands for consumers. It is pertinent to say that as a business, we have been committed to Nigeria and we will continue to be in this market for decades to come. This is reflected in the quality of investments we have made over time including the new production line we launched last year. So, it is very important that we go into the capital market to give shareholders an opportunity to participate in the business.

    Most difficult moment as CEO

    At this point, I think that any CEO in this country would say that they have moved from producing and marketing whatever it is that they produce to dealing with the risks arising from the economy. The amount of time that we spend as CEOs determining how to mitigate the risk of currency fluctuations is significant – where do you get dollars for raw materials, at what price, etc. So for me, the business has gone through a difficult moment but if there is one that I can call out, it’s our ability to keep the business going given the liquidity in the market.

    Leadership style

    I have a very simple leadership philosophy – keep it simple. You must be very clear on the two or three things that the organisation is going after. Communicate it to the staff, external stakeholders and investors and just keep repeating the message regardless of what’s happening in the environment. It’s also important that you focus on the area that you want to influence. For us as a business, we are committed to expanding our portfolios so that we are rich in more consumers across three areas – beer, spirits and soft drinks. We also want to take out costs so that we can become a more agile business and one that can price brands in a more affordable way for the consumers. Also as a leader, it is imperative to be obsessed with the front line, for us this means getting our brands as close to the consumers as possible.  Also keep the strategy very simple and ensure that the internal guys don’t worry about what’s going on in the environment, whether it’s the currency or other external factors.  And then, make decisions quickly. The problem when you are facing many challenges is to be very risk averse and not want to make decisions quickly. It is the time to be a lot more agile so that you can navigate through the challenges that you are faced with.

    Advice to existing and prospective shareholders

    Our consumers have been with us for a very long time. As Guinness Nigeria, we offer an array of high quality brands and are an innovation hub. We are able to offer a wider variety of products to our consumers at a more affordable price points with our innovations in the spirits, beer and soft drinks categories. Some of these brands include Smirnoff X1 intense chocolate vodka, Smirnoff Extra Smooth Vodka, Gordon’s Dry Gin, Moringa Citrus Blend, McDowell’s No. 1 Reserved Whisky, McDowell’s VSOP and Royal Challenge Finest Premium Whisky for the spirits segment; Orijin Zero and Malta Herb Lite in the adult premium non-alcoholic drinks and in the beer segment, our brands like Satzenbrau provide touch points at which our consumers can continue to interact with us. We will continue to provide our consumers with brands that are of high quality and choices in spite of the prevailing economic circumstances.

    To our investors, we have been a stable company for a long time. We have invested in this country and will continue to invest in it for the future. As management and a board, we are confident about our strategy. I can’t tell investors whether or not to buy shares as they have to make their judgement based on the information available. All I can say is that our intention is to continue to invest in the country and make investors happy that they invested in our company.

    Leisure

    Outside of work, I have some of activities that help me to relax and unwind. I go to the gym three or four times a week.  I also love martial arts and so I have a trainer who comes to teach me taekwondo.  I love to watch football and enjoying watching the games with my family apart from taking my son to play football. Finally, I also find time to play golf and these activities really help to keep me relaxed.

    Most important item required in a strange land

    It has to be Johnnie Walker. I love water but Johnnie Walker would do in this scenario.

  • Simple Changes

    Last week, I met an educationist, Dr Felix Adeduro, who lamented that Malaysia and India, countries that were once in the same category as Nigeria, have gone light years ahead to shoot into world reckoning, particularly in the areas of technology and education.

    We now have Nigerians choosing schools in Malaysia and India as cheaper alternatives to Europe and America. Adeduro said Amity University, a privately-owned institution in India, boasts of facilities and faculties to envy. The university is making such breakthroughs it registers patents regularly.

    Nigerian tertiary institutions are not listed among the top in the world. They are plagued by underfunding, poor infrastructure, and poor management. However, our institutions actually have the potential to achieve much more. That was one fact that came out of the selection process for the Africa Centre of Excellence (ACE) project funded by the World Bank.  The Executive Secretary of the National Universities Commission (NUC) Prof Julius Okojie acknowledged that much when he said that despite the criticism of our educational standard, Nigerian universities were able to claim 10 of 19 ACE slots out of the 51 applications from various countries in West Africa.

    If our universities could do so well when scrutinised by an international panel of assessors for selection, then I am sure they can become better ranked with some changes.  I do not dispute that we need greater financial investment by the government to improve infrastructural facilities.What good money can do is evident in the various facilities funded by the Tertiary Education Trust Fund (TETFund) that dot our tertiary institutions. It is also evident in the number of academics that are being supported for further education and to attend conferences both home and abroad. However, funding and infrastructure are not all that make a good tertiary institution. So many things matter – from the organisation and neatness of the environment, to how courteous the workers are, and the comportment of the students – not leaving out the lecturer/student relationship.

    How does the institution communicate with students? Are the students respected or do they feel ignored and their needs unmet? How long does it take for the management to fix problems around the campus like: mend broken fences, replace burnt out light bulbs, fix plumbing or water problems? How are disciplinary issues concerning both workers and students handled? Are the laws protected? Or is it that offenders can escape punishment by buying their way out or being saved by god fathers?

    How long does it take for results to be processed and submitted after examinations? Does it take two weeks? Or does it take the end of the next session? These two extremes happen in some institutions in Nigeria. A graduate of an institution in the Southeast told me that results are released once in a session – and never signed – so they are subject to changes at the whims of lecturers. A university that encourages such practices cannot hope to compete with the best on the continent, not to mention the world.

    What are the rules concerning class attendance and examinations?  While virtually all institutions have rules regarding the percentage of attendance a student must achieve to write an examination (for instance, a private university in Lagos stipulates 80 per cent attendance before students can take examinations), not many institutions implement this rule, so it is not uncommon for students to skip classes and get others to write their names for them.

    How does the institution handle issue of plagiarism in assignments and projects? With the internet so readily accessible, copying is now so easy.  All the student does is some researching on the topic, a few clicks of the mouse and pronto! the material is copied, pasted, and ready for submission as his own assignment. Regarding projects, the practice is even worse. Students copy projects done by students in other institutions and from the internet.  Now, I even learnt that there are people that specialise in writing projects for others for a fee.  A friend of mine told me she was advised to pay N50,000 instead of bothering to write her masters project! Can you imagine copying at that level? Unbelievable but true. If it the university was that strict about scrutinising projects, it would have been difficult for students to present work they did not do as their own.

    Attention to these little details can go a long way to improve an institution. They do not require billions of naira to implement.They only require instituting a culture of excellence, of doing things properly. These small changes can go a long way to make a big difference.

  • Trendy and simple pencil skirts

    Trendy and simple pencil skirts

    Just because you aren’t going to the office doesn’t mean you shouldn’t consider wearing a pencil skirt. What I really love about this type of skirt is that it’s flexible enough to team up with most types of tops and shoes. Especially a simple black pencil skirt which can be worn as part of a conservative office work outfit or for parties – or with your casual denim shirt!

    You can dress it up for work or parties, or dress it down for casual everyday wear. Just put on your sophisticated dress shirt at daytime and take it off and put on a slouchy tee later that evening. It has (almost) everything you can ever wish in a skirt, and that’s why I consider a pencil skirt to be one of your most important wardrobe essentials.

    It suits most body shapes. However, if you have a pear or hourglass shape you must be careful with how you style it for formal occasions because of the tapered hemline. No matter how luscious your curves are it might not be appropriate for the occasion. My tip is to try to balance it out by adding more volume to your upper part with a bright or light-coloured blouse and add an extra inch to your shoe wear. It can really accentuate your curves.

    *If you want your hips and legs to appear leaner, go for a pencil skirt with two darts in the front.

    *If you’re wearing a high waist skirt or a skirt with a thick waistband, then you should tuck it in as it complements the look a lot better than wearing it that way.

    *If you want to conceal your tummy – look for skirts with a wide waistband to help tuck in a larger part of your stomach. If you wear the top like that, it will give a completely different feel to your skirt outfit.

  • A simple format

    Of all the types of speech presentations, impromptu speech is perhaps the most believable. The reason is not farfetched; listeners believe the speaker speaks from the heart instead of delivering a premeditated speech. If, for instance, you are given several months notice to deliver a speech on President Goodluck Jonathan’s alleged ambition to contest during the 2015 election, you will have enough time to think of all the right words to speak. One of the things you may also do is to assess the nature of your audience. If you don’t fancy the idea of the President contesting, but a government official will be present at the event, you may think of several diplomatic ways of presenting your views. However, if you were not informed of the presentation, you may actually express you real view (or at least something close to it).

    For this reason, audience finds it easier to relate with impromptu speeches in terms of credibility than some other types of speeches. Think about it, why is it that at press conferences by government officials or other dignitaries, journalists still ask questions after the individuals have delivered the speech? First, the speech delivered was premeditated so the journalists need some heartfelt responses, second, there are areas of concern that were not covered in the speech, and third, there is need for further clarification on some issues raised. In most cases similar to the one we have here, people tend to benefit more from the question and answer session than the initial speech presentation. During question and answer sessions, people get the answers the desire, which are usually beyond what the speaker are prepared to share.

    Last week, we examined a few elements of impromptu speech. We said that it is immediate, it is brief and it is based on the current situation or event. We also said that you are called to deliver the speech because of your experience or personality. Consequently, it should be presented from your personal point of view, though it should focus on other people rather than yourself.

    This week, we shall examine a simple format you can adopt anytime you are called upon to deliver an impromptu speech:

    • Introduction: since the entire speech should not last more than a few minutes, your introduction is not expected to be an extensive one. Nevertheless, it should be catchy enough to capture your audience’s attention. A brilliant way to start your speech is to acknowledge the distinguished people present and appreciate the privilege given to you to contribute to the important subject. You may also begin by referring to the invaluable contributions that have been made before you. While you don’t have a lot of time, it is still fashionable to refer to one or two memorable contributions that others have made for your audience to know that you are not engaging in flattery.

    • State your point: remember that you don’t have a long time to speak, so, suspense may not be the best idea at this time. Considering that public speaking is an art, I believe you can adapt your speech to any situation or be creative whichever way you like. Nevertheless, I suggest you state your position straight on. Let the audience know what side of the discussion you belong to.

    • Justify your position: why do you feel the way you do? That is your next assignment. Your justification is perhaps more important than your position. This is because the credibility or soundness of your position will be judged by the reasons you give. For instance, lets assume you are asked at your organization’s board meeting if the company should fire some staff in view of emerging economic realities. If you say yes and you are asked why, you can’t simply say, “Well I don’t know. I just kind of think the company is too crowed.” People will lose respect for you because you are putting others’ jobs on line without any sensible justification.

    • Illustrate your point: don’t waste time at all, give a practical example that will drive home your point. While there is no time for any lengthy story, you may just call their attention to something around them that supports your line of reasoning. If you can bring the illustration close to them, you are likely to get their attention. The more familiar your illustration is, the more likely you are to win your audience.

    • Restate your point: make sure that your listeners don’t stray from your line of argument. Remind them of your position again. This time, they should understand it better because you have already provided your justification.

    • Conclude with appreciation: end your speech by thanking whoever invited you to talk for the opportunity to make a contribution. You should also thank your audience for listening and seeing your point.

     

  • Keep it simple and Glamorous

    Keep it simple and Glamorous

    Chiffon is a beautiful breathable fabric that is easy to wear and always looks elegant. It can be very cheap and sturdy despite its light weight. Some chiffon fabrics are made of silk while others are cotton, nylon, rayon, or polyester. There are many styles and colours that can be created from chiffon fabric for gorgeous styles. Chiffon dresses are great formal wear, appropriate for parties, formal events or as casual, even every day wear as well. They look amazing with all kinds of accessories, costumes, or real jewelry. They flatter all body types and you can look just stunning. Chiffon is a feel good easy trend. We will all realise that one way or the other we own at least one or more pieces of chiffon outfit, perhaps a blouse or dress. Chiffon outfits just never go out of trend. It gives a sultry look and you can always keep it simple or glam it up. If you are looking for the glam look, watch out for pieces with detailing such as draping. Keep it simple and sophisticated.

    These dresses are often sheer and summery. The fabric is usually layered to avoid allowing transparency. However, care should be taken by ensuring that the undergarments are not visible under the dress. If your skin tone contrasts with the colour of the dress, be extra careful that your skin is not too visible. A pale slip made out of a thin silky material can be worn to help avoid wardrobe malfunction.

    A chiffon dress can be short or long. Chiffon dresses that are cut just above the knee are more elegant and often fitting to a woman’s physique.

    The lightweight texture of a chiffon dress should be coupled with flattering makeup and modest accessories. Some black chiffon dresses look best with gold or silver jewelry. A white chiffon dress looks best with gold if it does not have any sorts of prints on it. Other accessories can be chosen to match the print.

    Casual dresses with flowers look stunning with playful costume jewelry and a solid coloured clutch or purse. Strapped sandals complete the look. A few of the more elegant chiffon dresses might be complemented with a pair of heels. When you’re shopping for chiffon outfits, be sure to take into account any stretching of the fabric.

  • Pencil skirts: Trendy and simple

    Pencil skirts: Trendy and simple

    JUST because you aren’t going to the office doesn’t mean you shouldn’t consider wearing a pencil skirt. What I really love about this type of skirt is that it’s flexible enough to team up with most types of tops and shoes. Especially a simple black pencil skirt which can be worn as part of a conservative office work outfit or for parties – or with your casual denim shirt!

    You can dress it up for work or parties, or dress it down for casual everyday wear. Just put on your sophisticated dress shirt at daytime and take it off and put on a slouchy tee later that evening. It has (almost) everything you can ever wish in a skirt, and that’s why I consider a pencil skirt to be one of your most important wardrobe essentials.

    It suits most body shapes. However, if you have a pear or hourglass shape you must be careful with how you style it for formal occasions because of the tapered hemline. No matter how luscious your curves are it might not be appropriate for the occasion. My tip is to try to balance it out by adding more volume to your upper part with a bright or light-coloured blouse and add an extra inch to your shoe wear. It can really accentuate your curves.

    *If you want your hips and legs to appear leaner, go for a pencil skirt with two darts in the front.

    *If you’re wearing a high waist skirt or a skirt with a thick waistband, then you should tuck it in as it complements the look a lot better than wearing it that way.

    *If you want to conceal your tummy – look for skirts with a wide waistband to help tuck in a larger part of your stomach. If you wear the top like that, it will give a completely different feel to your skirt outfit.