The BGZ business plan
Diana Vennik,
The client's perspective
2008 - 2012
of the OMPOL Lesnice company
'yr rftesm
acquisition of a majority stake in BGZ could hardly have
come at a better time. BGZ's local expertise and national
presence combined with Rabobank's global network,
expertise and product offering combines the best of both
worlds. But possibly even more important isjust how much
the banks share in terms of ambition and goals. Both are
leading banks in the Food and Agribusiness and have
a strong track record and ambition for their retail banking
business. The tie-up with Rabobank gives BGZ direct access
to the Dutch bank's extensive global network and its
abundance of knowledge and expertise. At the same time,
its majority stake in BGZ has not only given Rabobank its
second European home base, but also a very strong
position in a dynamic and rapidly developing country
with a huge amount of potential in its core markets. So it
is fairly safe to say that Rabobank and BGZ are a win-win
combination!
BGZ recently drew up its 2008-2012 business plan. Take a look
at BGZ's objectives for the future.
Overall vision:
BGZ will remain a universal top 10 bank in Poland with well-
balanced retail and institutional business units and a strong
share of the agribusiness market.
In line with strategie shareholder Rabobank, BGZ will remain
a more conservative bank with relatively low P&L volatility.
Business focus:
BGZ will follow a segment-specific strategy with clear focus
and goals, including:
Realisation of growth in and focus on retail banking
Profitable growth in institutional banking
Expansion of leadership position in Food Agribusiness
Oistribution:
BGZ will expand its coverage by:
Strengthening its position and physical presence in its
core market
Leveraging options to tap into various market segments
using a non-traditional approach
BGZ will also:
Enhance its products and brand
Focus on cliënt relationships
Improve its processes
Enhance management tools for accountability
and performance
"Our company OMPOL, a dairy farm with around 300 cows,
was set up by my husband Gerrit van Ommeren in 1996.
In 2002, his brother Aart van Ommeren and I also became
shareholders. The early years in Poland were extremely hard:
we found ourselves up against a different mentality and were
also treated differently because we were foreigners. A major
problem was the language, which we couldn't speak. This
meant that we weren't able to understand a lot of things in
the beginning."
"From the start, we managed our company as frugally as
possible. I am convinced that this approach is what kept us
going and has ensured that we still have a solid business to
this day. We have seen many other foreign farmers come
and go; some of them had set up their business using huge
loans from banks in their homeland. The financial support
also influenced the way they ran their business. Looking back,
I am glad that we didn't take out a loan because it has made
us stronger."
"OMPOL was set up with the money that my husband had
saved and with the support of the family. A few weeks ago,
we received approval for a current account loan from Bank
BGZ. We can use this to fïnance the construction of our barn,
which will cost around EUR 45,000 (USD 68,000). Until now,
we have always invested our own money, but have now
decided to borrow as we are keen to build the barn during
the summer months. This is a period in which there are many
other expenses and we don't want to postpone the construc
tion work."
"We are with a branch of Bank BGZ in Stupsk, which is a large
regional city in the north of Poland. Many farmers that we
know also use this bank. I have noticed that the mentality
in this branch has changed a little since Rabobank acquired
a majority stake in BGZ. It is as if they have cast off a suit of
armour. Although we are satisfied with the service, I think
they could adopt a more commercial approach. For instance,
it took a long time for them to approve our loan. Once they
took a good look at our balance, they were suddenly very
interested and the loan was fixed up. Personally, I think it will
take the bank another couple of years to speed up processes.
It is run by personnel who have been there for many years, so
it will take a while to change the mentality."
ISSUE 17
THE WORD
