Mica’s Business Model
We know what we’re doing
How Mica Works
Mica has a completely transparent operating structure and flat management design to ensure that all members are continuously aware of changes and developments within the company and to affect swift decision making. The company is structured as follows:
- All the Mica Trademarks and intellectual property is housed in Mica Holdings which has four (4) directors. These positions are reviewed annually by means of a democratic voting process to ensure efficient and effective control of the business.
- Mica Investments is the operational company which is managed according to all the Rules and Regulations of Corporate Governance and is represented by the National Executive Committee (NEC) made up of four (4) Mica Holdings Directors, four (4) elected members from the Mica store base.
- Monthly NEC Meetings take place to review the Financial Performance of the Business together with the alignment and implementation of the agreed strategic initiatives.
Members’ Marketing Fees
Based on the completion of a detailed Marketing Assessment for each and every individual members, the member contributes to his specific marketing requirements plus 40%. This 40% goes towards branding and other high level Mica Brand initiatives. These costs and relative income are transparent and are reviewed on an ongoing basis and in the instance that possible savings may be achieved these savings are passed directly onto the member automatically. All member and supplier marketing income / rebates goes into direct expenditure on the Mica Brand therefore, Mica Members pay no royalties and there are no other hidden costs.
The Competitive Edge
Due to Mica’s low cost operating model, the supplier rebate requirement for the administration of the Mica Support Centre is minimal which allows the suppliers to trade competitively with each and every Mica member.
All Mica’s Preferred Suppliers are specifically graded to ensure maximum support for the supplier whilst ensuring the member remains competitive and is able to offer their customers the correct assortment of products. The members’ throughput is analysed every month where opportunities are identified in order to continually improve supplier performance or loyalty which in turn has increased supplier loyalty to Mica. Mica partners with their suppliers at a strategic level to ensure the supplier also sees benefit from the Mica Relationship in terms of increased support.
Advertising and Product Forums
The marketing and product forums are facilitated by Mica Support Centre but are fully represented by members not only regionally but with sound product and marketing experience. This wealth of experience ensures effective supplier participation, product category detail and effective marketing initiatives.
All members are encouraged to be shareholders. This ownership fosters collaboration and knowledge sharing and increases commitment where currently 90% of the new base are current Shareholders which allows for transparent and effective management of the company.
4 Directors Including MD
3 Directors, NEC (4 Members)
8 Elected Members