Asian Agri and the Future of Palm Oil Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

For Asian Agri and other Indonesian palm oil companies, the future assured rising demand from fast growing Asian populations, but also intensifying criticism from environmental groups. With the maximum return and lowest production cost of any edible oil, palm oil made up international markets, an abundant, cheap source of food for Asian and, to a lesser extent. Its production had soared from 1970 to 2010, sparking concern from environmentalists over the conversion of high-value conservation property in Malaysia and Indonesia (where almost 90% of palm oil was made) into palm oil plantations.

Their efforts had intensified in the past couple of years, encouraging-at times - packaged food manufacturers and investors to boycott palm oil providers accused of environmental mismanagement. Asian Agri, an established Indonesian palm oil grower and exporter, had thus far prevented public inspection. The business had extensive experience negotiating the complicated regulatory environment that is Indonesian, proved to be a crucial source of employment in many rural communities, and was moving to certify its operations according to sector -set sustainability guidelines. In 2010, Asian Agri appeared well placed to capitalize on the growing palm oil market, but the broad-strokes vilification of the palm oil sector was a source of serious concern. In the surface of great doubt, the management team needed to devise a strategy for the future. To appraise an organization 's strategic choices in the context of a booming, but contentious, industry surroundings.

PUBLICATION DATE: December 17, 2010 PRODUCT #: 511015-PDF-ENG

This is just an excerpt. This case is about SALES & MARKETING