For Asian Agri and other Indonesian palm oil producers, the future promised to the growing demand from fast-growing Asian populations, but also intensify criticism from environmental groups. With high productivity and low cost of any vegetable oil, palm oil is an abundant, inexpensive source of food for Asia and, to a lesser extent, in international markets. Its production has increased dramatically from 1970 to 2010, which was of concern to environmentalists for the conversion of high conservation value land in Malaysia and Indonesia (where almost 90% of palm oil were produced) in palm oil plantations. Criticism intensified their campaigns in recent years, convincing, sometimes successfully, packaged food manufacturers and investors to boycott palm oil suppliers accused of environmental mismanagement. Noting that some of the allegations were unfounded, palm oil producers argued, the industry is taking steps towards greater stability and brought the unique benefits of palm oil: it was free of unhealthy trans fats, for example, and requires less land to produce more oil than any known replacement. Asian Agri, established by Indonesian palm oil producer and exporter, to date, to avoid public scrutiny. The company is one of the main sources of employment in many rural communities have had great experience in negotiating complex Indonesian regulatory environment, and moved to certify their work in accordance with a set of industry guidelines for sustainable development. In 2010, the Asian Agri a good opportunity to earn a growing market for palm oil, but the broad strokes vilification palm oil industry is a source of serious concern. In conditions of great uncertainty, the management team to develop a strategy for the future.
To evaluate the strategic options of the company in a booming, but controversial, industry environment. "Hide
by David E. Bell, Natalie Kindred Source: Harvard Business School 26 pages. Publication Date: December 17, 2010. Prod. #: 511015-PDF-ENG
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