The IOI Group: Creating a Malaysian Palm Oil Multinational Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The case discusses the storyline of the IOI Group, among the biggest palm oil players in Malaysia, which has seen rapid growth in the past two decades. Family-commanded since 1982, the IOI Group's principal companies were property and palm plantations. Over the years, the IOI Group moved away from creating crude palm oil (CPO), a vital commodity, and pursued a strategy of vertical integration by moving into downstream activities like food ingredients making and oleochemicals. This malformed IOI from a Malaysian plantation corporation to a world-wide ingredients producer, making IOI a good example of a so-called "emerging marketplace multinational."

The case requires the point of view of the second generation family leader who is now in charge of the downstream companies, and discusses three challenges he faces in IOI's transformation process: 1) the issue of optimizing and integrating the international value chain; 2) the most suitable means to coordinate a multinational company with substantial international sales and operations; and 3) adaptation to changing needs of international customers. All this is supported by extensive info on the changing dynamics in the palm oil business, where emergent market players are moving up the value chain, snapping up making assets from international fast-moving consumer goods businesses, such as Unilever, while the latter increasingly focus on branded goods and seek to exit the lower border and capital intensive manufacturing of ingredients. Students are requested to analyze the changing industry dynamics and supply recommendations given the aim to make IOI a top palm oil player.

The IOI Group Creating a Malaysian Palm Oil Multinational case study solution

PUBLICATION DATE: October 01, 2010 PRODUCT #: 910M68-HCB-ENG

This is just an excerpt. This case is about STRATEGY about STRATEGY & EXECUTION