The IOI Group: Creating a Malaysian Palm Oil Multinational Case Solution

The case relates to the history of the IOI, one of the greatest players of palm oil in Malaysia, which has experienced rapid growth in the last group of two decades. Controlled by the family since 1982, the main activities of the IOI Group originally owned plantations and palm trees. As a newcomer on the palm oil industry has grown both organically and through acquisitions, and in 2010 a turnover of around $ 4.3 billion and employs 30,000 people. Over the years, the IOI Group away from the production of crude palm oil (CPO), a key product, and pursued a strategy of vertical integration by moving into downstream activities such as the manufacture of food and oleochemical ingredients. This IOI transformed from a Malaysian plantation company a global manufacturer of components that IOI a good example of what is called an “emerging market multinationals.” The case takes the point of view of the second-generation head of the family is currently in charge of downstream activities, and discusses three challenges it faces in the process of transformation of the IOI: 1) the question of optimization and integration the global value chain, 2) the right to coordinate a multinational with significant international sales activities and environment, and 3) adapting to the changing needs of the world customers. All this is supported by a wealth of information on changes in industry dynamics palm oil, where players from emerging countries are moving in the value chain, breaking up the assets of rapid manufacturing world moving consumer goods companies such as Unilever, while the second point of the product brand and search the bottom margin and ingredients capital intensive manufacturing. They ask students to analyze the dynamics of evolution and the recommendations of the industry to a leading IOI palm oil player.
Marleen Dieleman,
Megha Mittal
Source: Ivey Publishing
17 pages.
Publication Date: October 1, 2010. Prod #: 910M68-PDF-ENG
Palm oil creating a solution Malaysian multinational cases: IOI Group

The IOI Group: Creating a Malaysian Palm Oil Multinational Case Solution
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