Temasek’s offer to buy Olam international Harvard Case Solution & Analysis

Temasek’s offer to buy Olam international Case Study Solution 

Introduction:

Olam: the company was founded in 1989; it is one of the biggest agricultural products suppliers throughout the world. The products include food ingredients and raw material to different destinations around the world. The business potential of the company is based on strong and integrated supply chain network. It has one of a kind supply chain that has differentiated itself from its competitors. The company has intended to expand their value chain in order to raise their margins up and making such a profound business model that would enable the company to deal with any external criticism or obligations imposed. The main operation of the company consists of edible nuts, food staples. Packaged food, and industrial raw material in specific. Food sector of the company has the largest share in the EBITDA, the driver of the food segment that serves highest to the profits of the company is rice. The company has shown favorable growth trends as the population and food consumption patterns have changed over the years. The demand for the products that has been produced by Olam shows a high trend, inspite of the higher demand, the company is facing supply side constraints. The constraints that the company is facing are there, but there is a high room for overcoming the constraints of the company, as the dynamics of the company shows.

Problem statement:

Temasek has offered to acquire all the shares of Olam that are held by minority shareholders, year after that muddy water-am saga. The company has offered to acquire all the minority shares of the premium of 11.8 percent above the market traded price of shares. Before that, after the obligations that have been imposed by muddy waters on Olam, Temasek has acquired the right issues by the claim in 2012, and became Olam's biggest shareholder and showed the confidence that Olam is still one of the best suppliers of agricultural food. Knowing the fact, Olam’s management is in the process of taking a decision, that either the offer that is given by Temasek, should be accepted or not. The share price of 23, reasonable or not? Furthermore, Olam’s sustainability, in the long run, is also under consideration.

 

Temasek’s offer to buy Olam international Harvard Case Solution & Analysis

 

 

Discussion:

SWOT analysis:

SWOT analysis would be helpful in analyzing the performance of the company in the long run.

Temasek’s offer to buy Olam international Harvard Case Solution & Analysis

 

Strengths:

One of the mega advantages that the company has retained is its integrated supply chain that would enable the company to manage its business over 65 countries. The company has shown its superiority in risk management and innovative trading skills. The integration techniques that the company has applied over few segments of the value chain has worked for the company’s performance. The company also has an added advantage in packaged food industry, especially in West African countries. The business model of the company comprises of the organic and inorganic to enhance its core supply chain business. Olam also has astrong and large workforce for operations..................

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