Olam International Singapore – Building a Risk Resilient Enterprise Harvard Case Solution & Analysis

The note on Olam International Limited (Olam) describes how it acquired the status of international supplier of 14 agro-products and a top supplier of cashew nuts, hot chocolate, and coffee. With fully-owned subsidiary companies in 36 states, Olam supplied agro-products from manufacturers' farm gates to factory gates of over 3,300 customers in 40 markets and achieved organic growth by seizing on 'adjacent business ' that were opportunities. Its top line had shown the next yearly growth rate of a little more than 25 percent between 2002 to 2005; dollar volume increased from S$1.59 billion to S$3.37 billion during that time.

Presenting the financial results of 2005, Warm George Verghese, Group Managing Director and Chief Executive Officer unveiled the growth strategy for 2006 to 2011, which sought to supplement organic growth with acquisitions. Against the backdrop of agricultural harvest seasonality, industry deregulation and cyclicality, and trade liberalisation, Olam weathered changes in demand, supply and cost with origination (procurement), integrated supply chain and marketing capacities, which were supported by a risk management system. As Olam embarked on a growth-by-acquisition model, along with its organic growth model, the business had to reassess the need to adjust its current risk management system. The Board's danger committee led by Tse Po Shing was tasked to deliberate on the issue.

Publication Date: 10/14/2010

This is just an excerpt. This case is about Finance

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