Goodman head explains strategy

Press, 5 October 1984, Page 12

Goodman head explains strategy

PA Wellington The Goodman Group’s managing director, Mr Peter Shirtcliffe, yesterday called for an end to a go-it-alone attitude to exporting adopted by many New Zealand companies. Outlining the reasons for Goodman’s aggressive stake building in other companies, Mr Shirtcliffe said co-opera-tion with other companies was the key to Goodman’s current method of operation.

Stressing that earning foreign exchange was a board room responsibility, not one to be “handed down the line,” he said companies should be making hard nose assessments on where they stood in the Australasian market place. He said Goodman took advantage of the lack of strategy evident in the food industry a few years ago. Its strengths were a resource base with growth prospects. “We believed that tta skills we had to offer were in the areas of strategic approach and financial skills.

“If you want to survive, let alone be an international operator you must in my opinion, put yourself in a prominent Australasian position within your own

industry.” Mr Shirtcliffe said to succeed, domestically or internationally, companies had to buy or have adequate influence over their own marketing and distribution. “One of the biggest problems New Zealand firms have offshore is in getting satisfactory representation. “Our Australian food group (which Goodman manages on behalf of its associate Elders IXL) is an opportunity not only for Goodman Group but for our associate companies and

indeed any New Zealand food manufacturer. “It has an Australianwide sales and distribution service, manufacturing plants with some spare capacity and established and well supported product brands which are not fully utilised. It provides a springboard into the market.”

Mr Shirtcliffe advocated a much stronger move to branded goods, to innovative product development and common branding in overseas markets. “We must not make the mistake of trying to decide in New Zealand that the world wants our products... that’s the trap we fell into previously.” At the same time, Mr Shirtcliffe said the importance of CER should not be overrated.

“Our major foreign exchange income in the medium to long-term future is likely to come from countries in the Northern Hemisphere and Asia which have the population base and degree of sophistication necessary to raise our standard of living. “I believe the real challenge will lie in tapping these markets, not just Australia.”