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

The case examines the history of IOI Group, one of the largest players in palm oil in Malaysia, which has experienced rapid growth in the past two decades. Family-controlled since 1982, IOI Group's core business was originally owned and palm plantations. As a relative latecomer to the palm oil industry, it has grown both organically and through acquisitions, and in 2010 had sales of about $ 4.3 billion and employed 30,000 people. Over the years, the IOI Group withdrew from the production of crude palm oil (CPO), a key product, and a strategy of vertical integration by moving downstream in activities such as the production of food ingredients and oleochemicals. This turned from Malaysia's IOI plantations worldwide manufacturer of ingredients, making IOI is a good example of so-called "emerging markets multinational." Case takes the point of view the second-generation leader of the family, which is now responsible downstream enterprises, and discusses the three challenges it faces in transformation process IPI: 1) the problem of optimization and integration of the global value chain, 2) The most appropriate method for the coordination of international companies with significant global sales and operations, and 3) adapting to the changing needs of customers around the world. This is supported by the extensive information on the dynamics change in the palm oil industry, where new market players to move up the value chain, buying productive assets of the global fast-moving consumer goods companies such as Unilever, and the second more attention to brand-name products and are eager to get out of the bottom edge and capital-intensive production ingredients. Students were asked to analyze the changing dynamics of the industry and provide recommendations based on the goal of making a major player IOI palm oil. "Hide
by Marleen Dieleman, Megha Mittal Source: Richard Ivey School of Business Foundation 17 pages. Publication date: 01 Oct 2010 . Prod. #: 910M68-PDF-ENG