Business Strategy 13 BUSINESS STRATEGY Business strategy Name of the university Author note

Running head: BUSINESS STRATEGY
Business strategy
Name of the student
Name of the university
Author note

1BUSINESS STRATEGY
Executive summary
This report had discussed about the sustainability challenges faced by Wilmar along with the
major problems in the palm oil industry. The need for deforestation for lands in palm tree
cultivation is one of the challenges for this industry. Wilmar is getting criticized for their
negative impact on the environment. In this report, the internal and external analysis is being
done for Wilmar along with the analysis of the current business strategy of them. There are
number of limitations identified. These limitations can be overcome by means of a few
strategies, which are recommended in this paper.

2BUSINESS STRATEGY
Table of Contents
Introduction......................................................................................................................................3
Problem statement...........................................................................................................................4
Evaluation of the business strategy of Wilmar................................................................................4
Determination of the internal and external factors of Wilmar.........................................................6
Resource based view analysis......................................................................................................6
PEST analysis..............................................................................................................................8
Recommendations..........................................................................................................................10
Determination of the social responsibility.....................................................................................11
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

3BUSINESS STRATEGY
Introduction
Management of the social responsibilities is one of the ways of gaining competitive
advantages in the current time. This is due to the reason that contemporary business entities are
facing the challenge of the social organizations such as NGOs in their business operations.
Probability of emergence of negative branding is more in the current time and thus the
contemporary business entities are initiating and focusing more on the social responsible
activities to ensure their positive branding (Epstein 2018). However, the companies who are
directly associated with the natural resources are facing the major challenge of managing their
social image due to the reason their business activities are having direct impacts in the
environment. For example, the palm oil industry is facing the same issue in managing their social
responsibilities. With the current increasing trend for palm oil due to their alterative usages, this
industry is also increasing at a rapid rate. This is further creating pressure on the environment
because forest lands are getting acquired for the palm tree plantation (Mba, Dumont and Ngadi
2015).
Rapid rate of deforestation is causing reduction in the green cover from the earth,
increase of carbon emission and destruction of the biodiversity including the flora and fauna. In
the current time, deforestation is getting caused by different means and growth of the palm oil
industry is one of the major contributors. The increase in the demand for palm oil is creating
opportunities for the palm oil producers and they are acquiring vast forest lands for palm tree
plantation (Choong and McKay 2014). In addition, palm tree industry is also accused for the
destruction of the biodiversity and human rights abuses. Wilmar being the market leader and
biggest player in this industry is also accused for the same. They are accused for their alleged
new investment in Nigeria, which is criticized by the NGOs for abusing the human rights and