IOI Organization Case Study
1 . IOI strong growth was achieved through
a. Great plantation supervision practice
2. Continues advancements on produces performance
* Improve output via plantation and factories and minimize input to achieve a low-cost supply chain b. Diversified business base in palm oil sector, from downstream sector to upstream sector 2 . IOI opportunities and threats
* Proceeds growth about palm oil in edible natural oils & fats market throughout the world * Increase in nonfood market demand, like biofuel. Now, market is give attention to renewable energy. Oil from palm has been recognized as one of the useful and clean biofuel 2. Crude oil from palm price getting higher and stable year-on-year. * Revenue of properties at primary area particularly in Singapore have already been encouraging 5. Expansion in Indonesia with recent planting permit approval to the group's directly owned plantations d. Threat
2. Major income is are derived from export markets to European countries and US. Weak economic situation affect the demand on oil from palm. * With limited terrain bank in Malaysia
5. Unfavorable situation
* Deficit of estate employees
* Brutal competition from Sime Darby and Dalam negri and upcoming markets like Africa and Brazil will be catching up 3. Inner organization functions and that weakness.
e. Best 3 executive directors happen to be family members. Decisions making happen to be among family, higher chances in electrical power abusing and lack of visibility f. Offers operations all over the world, expose to foreign exchange risk 4. Alter and unchanged
* Relatives based reveal holders not enough transparency. Have to maintain very good relationship with stakeholders to boost the performance of the group they would. Unchanged
* Tissue traditions research, bringing about cultivation of clonal palms with outstanding traits 2. Continuous...