Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita

1. Case Study #4 Marketing Management
ANALYZING BUSINESS MARKET:
CASE STUDY OF ASIAN AGRI
Asian Agri and The Future of Palm Oil
Presented by:
Dian Atika
Rafika
Rery Indra Kusuma
MM UGM Jakarta Executive B Class 27 C

2. Case Summary
Main Issue
Problem Statement
Analysis
Recommendation

3. History
Year Activities
1979 Sukanto founded ASIAN AGRI; 10,000 ha
1984 Built a mill for extraction CPO and plam kernels
1986 Asian Agri began participating integrating
smallholder former plasma program
1989 Asian Agri expansion 30,000 ha
1989 – 1999 Expanded its growing
R&D, husbandry practices, fertilizer inputs for
different types of soil, higher-yield, pest and
disease controls, upgraded its refining capacity,
built a plant for production of margarine and
shortening.
2010
(at the time case
was written)
Plantation and Mills, Refining and Exporting,
Customer and Markets.

4. Holding Group of Asian Agri:
RGE (Royal Golden Eagle)
1. APICAL: Asia Pacific Resources International
Limited
2. Sateri International 0
3. Pacific Oil & Gas
ASIAN AGRI TRIED TO ENTER CONSUMER MARKET TO GROW THEIR
BUSINESS TROUGH APICAL ONE OF THEIR HOLDING GROUP.

5. Asian Agri Challenges in Up Stream market:
1. Sustanaibility of Resource
2. Plantation Expansion
3. Enter the Consumer Market or Focus on
Business Market?

6. NGO Critics to CPO company:
◦ Allegedly forest biodiversity/endangered species
◦ Deforestration, high leve of carbon
◦ Conflict indigenous population and grower
Result Pressure on Actual Business:
 CPE companies had stopped sourcing palm oil
accused of environtmental mismanagement
 Calling on bank and investment fund

7. Ernomous challenges on Plantation Expansion:
 Two years freeze on new land concession in May
2010, limited land
 Country Risk
 Poverty
 Infrastructure was poor
 Controversial land-right disputes between grower
and indigenous population
 Complex govenment concession process
 Opposition from NGO

8. Asian Agri had started enter the consumer market trough their
holding company APICAL.
Downstream market will give them several benefits:
 Force the company to mature
 Customer and process management
 Capture more value  utilize all part of oil
But...
Is it worth to be focussed on consumer market while Asian Agri
had upstream competitive advantages?

9.  Should Asian Agri aggresively expand the
plantation despite all the challenges on land
expansion? And make their upstream
business STRONGER?
 Should Asian Agri put more effort on their
downstream business?

10. Asian Agri had already started to apply below
strategy:
 Leverage its foothold, expanding 160,000 into
300,000 ha by 2015.
 Enhance its upstream competitive advantage
 But would bring many practical challenges.
 Develop more trading and refining operation or
market a portfolio of branded products
 Transfer Asian Agri’s plantation assets to its sister
business, APRIL, a highly succesful pulp and paper
operator.

11.  Give best effort both to upstream and
downstream business as their capital also
strong.
 The strategy is on the right track, in term of
expanding branded product they should
create more serious plan.
 Continous improvement on resource
sustainability. It improved the company
profile and assured the company
sustainability.

12. Thank You....