Sodexo strategy
Four key strengths in our strategy
- A considerable growth strategy
- The commitment of our employees to our values
- A complete global network
- An excellent financial model
Over the longer term, "the outlook remains good since the potential market to conquer is considerable".
This growth potential is estimated at more than €380 billion, including €110 billion in food services and €270 billion in other services.
Ambition Sodexo 2015
Adherence to values
Accelerate profitable organic growth
Improve our management
Strengthen the role of the Board of Directors and reinforce internal controls
Ambition Sodexo 2015
In order to take advantage of our considerable growth potential, we have launched a group-wide project named Ambition Sodexo 2015.
We asked 350 managers on 5 continents:
"What do you want Sodexo to be in 10 years time?"
The strategic plan, inspired by their suggestions, contains 5 major principles:
- Adherence to values
- Accelerate profitable organic growth
- Improve our management
- Improve our operations and our operating margin
- Strengthen the role of the Board of Directors and Internal Controls
Adherence to values
In addition to the values defined in 1966 when Sodexo was created, in November 2003 we added, a 'Charter of Ethical Principles' that was signed by the 20 senior managers of the Group. This Charter sets out:
- Loyalty shared among our stakeholders
- Respect for people and equal opportunities
- Transparency
- Business integrity
All Sodexo managers must prove their absolute adherence to these values through their daily conduct.
Accelerate profitable organic growth
We do not want to win a sections of non-profitable markets. Accordingly, we have made the choice of Right Client, Right Terms® to allow us to establish long term partnerships. We believe that we can reach an organic revenue growth objective of 7% in 3 years, provided that we implement the following 5 actions:
- Improve client retention.
- Revamp our food offer by reducing the number of internal brands and by developing more rapidly the most successful and profitable.
- Develop the multiservice offer more quickly.
- Increase our Service Card and Voucher activity more than 10% each year.
- Create a Group Sales function.
Improve our management
Sodexo's strategy is to select activities and services that are people intensive. It implies a highly efficient long term management of our human resource needs.
- To support the development of management through internal promotion and high level external recruitment.
- To create, within the Group's Human Resources Department, a Director for Managerial Development.
- To pursue the internationalization of our support function teams.
- To create a Sodexo school of management.
- Improve our operations and our operating margin.
- To return our margins in the United Kingdom.
- To improve our procurement practices.
- To reduce our overhead and administrative expenses, by an amount equal to 0.6% of our revenues in 4 years.
- To develop synergies within the Group, particularly between food and management services and Sodexo Pass.
Strengthen the role of the Board of Directors and reinforce internal controls
The President's report which describes the Group's existing internal control procedures (as of 16 November 2004) was presented to the Annual Shareholders Meeting on 8 February 2005.
The reinforcement of internal controls remains a priority for the Group in the years to come.
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