AN OFFER FOR CONSUMERS AND BUSINESS

In the long-run intensive growth implies market development strategy by introducing number of flour variations for specific purposes and product development strategy by introducing new product lines spaghetti and cereals. In order to utilize bran received as a result of grinding process the Company plans to diversify into animal food production and marketing. Also, the Company plans to develop chain of own bakeries, what will enable Begi Company to interact with ultimate consumers of its flagship products directly.

Chosen strategy would allow the Company to cover all market segments from wholesale to retail. Since there are several components of production and selling system, with each component having different profit characteristics, the Company aims to cover whole chain from raw products (wheat, seed) to finished ones (packaged flour, pasta, spaghetti), from wholesale (flour) to retail market (packaged flour, baked products spaghetti, pasta), as failure to maximize participation in the highest-profit components (baked products, pasta, spaghetti) depresses profitability of the entire Company, taking into account that full participation in the less profitable components is required to win the market for the most profitable components.

Above model realizes economies of scale, highly efficient fleet utilization, modern equipment, and total focus on profit growth. Company's business design was the cornerstone of an low-cost system, which included control of production chain and quality of products and was geared to constantly reducing costs, not to be subject to fluctuation of demand from wholesale buyers and creating strongest possible positions in the distribution network.

In order to successfully implement above described strategy , to achieve sustained value growth and to withstand competition on the market Begi Company plans to protect itself by several strategic control points: i) value chain control from wheat to marketable goods, ii) low cost production system due to land ownership and financing farmers to conduct sowing works, iii) own brands of flour and pasta.

Distinctive features of the Company are the transparency of conducting business and the Company's unblemished reputation on the wheat market, which helps Begi Company to achieve its long-term goal.