Wilmar International: Strategic Management Analysis Report

This report provides a comprehensive analysis of Wilmar International, a leading food and beverage company. It includes a SWOT analysis identifying the company's strengths, weaknesses, opportunities, and threats. The report also examines the company's ethical approach, focusing on the justice approach and its application in ensuring equitable treatment of employees. Furthermore, it discusses the company's CSR approach, specifically the damage control approach, and how it addresses issues related to working conditions and employee discrimination. The analysis extends to the four key elements of planning, including objectives, actions, resources, and implementation, and explores how Wilmar International cultivates a strong company culture based on espoused values. The report also delves into the organizational structure, highlighting unity of command, centralization vs. decentralization, span of control, and formalization. Finally, it examines traditional leadership theory, particularly trait leadership theory, and motivation theory, specifically Urwick's theory Z, as applied within the company. The report concludes with recommendations for Wilmar International.

Running head: INTRODUCTION TO MANAGEMENT
Introduction to Management
Name of the Student:
Name of the University:

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INTRODUCTION TO MANAGEMENT
Table of Contents
1. Introduction of the company and nature of the business.............................................................2
2. SWOT analysis............................................................................................................................2
3. Ethics approach and ethical decision making on chosen approaches..........................................4
4. CSR approach and how the company can use chosen approach.................................................4
5. Four key elements of plan............................................................................................................4
6. One aspect of the company culture and how the company creates strong culture based on
chosen aspect...................................................................................................................................7
7. Organization structure.................................................................................................................7
8. Traditional leadership theory and motivation theory.................................................................10
9. Recommendations......................................................................................................................11
10. Conclusion...............................................................................................................................12
References......................................................................................................................................13

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1. Introduction of the company and nature of the business
The selected company for this report is Wilmar International, which was founded in the
year 1991 and headquartered in Singapore. This company is ranked among largest listed
companies based on the market capitalization on Singapore exchange. It is a food and beverages
sector. The business activities of the Wilmar are cultivation of oil palm, edible oils refining,
manufacturing of the customer’s products, biodiesel and others. The revenue of the company is
US$43.85b and net profit is US$1.22b (Wilmar-international, 2017). The nature of business of
the Wilmar International is that it is engaged into investment holding in addition to trading
businesses.
2. SWOT analysis
Strengths: The business model of Wilmar International enjoys a lower cost because of
the economics of scale, logistical as well as distribution advantages in addition to superior
market intelligence. There is gaining of business efficiency which improved logistics resulting
into lower transportation cost. The company has strong foothold within China, South East Asia
as well as India with fastest growing consumers’ markets all over the world.
Weaknesses: Because of relative young acreage, the company is based substantially on
the third parties for crops (Ansoff et al., 2019). The company is uncertain in form of the
commodities of the risks towards price, credit, foreign exchange as well as interest rate risks.
Opportunities: The Company is emphasis towards growth in China, India as well as
Indonesia. It is expected to increase in consumption of meat in China and India. There is increase

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in demand for the meat drivers required for the animal feed like corn, rapemeal as well as
soymeal. The company does joint ventures as well as acquisitions to drive the growth.
Threats: The operating environment for the oilseeds as well as grains are challenging as
the crush margins are remained under the pressure. The company is required diversification from
China as the government started to retail the prices of food to curb the inflation. There is higher
competitive industry due to competitors such as Bunge Ltd, Golden Agri-resources Ltd and
others.
Figure 1: SWOT analysis of Wilmar International
(Source: Bull et al., 2016, pp-109)

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3. Ethics approach and ethical decision making on chosen approaches
The chosen ethics approach is justice approach. The company can make ethical decisions
on the justice approach where both female and male are paying same for their same job. It stated
that the ethical decisions are those decisions which distribute benefits as well as harms among
the stakeholders in equitable way (Laudon & Laudon, 2016). All the employees are treated
equally so that same respect is provided to them. In some of the organizations, the female
employees are not treated same as male, therefore Wilmar International provides same respect to
them. Ethical decision making is required to perceive as well as reduce the unethical options.
4. CSR approach and how the company can use chosen approach
CSR approach which is used in the company for managing stakeholders is damage
control approach. There is identification of controversies linked in the companies and they are
taken CSR initiatives as measure of the damage control. There are issues of working conditions
based on the applicable statutory provisions plus international labor standards (Noe et al., 2017).
There are concerns of granting the trade union rights and elimination of the employee
discrimination. The constructive cooperation with the social partners is important part for the
company. There is control over employee discrimination by providing same respect to all the
employees either male or female.
5. Four key elements of plan
Following are the key elements of the plan based on Wilmar International such as:

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Objectives: Wilmar International meets with SMART objectives to plan for their
business. SMART objectives are as follows:
Objectives Details
Specific  Keeping the food cost at less than 40% of the resources
 There is achievement of customer satisfaction by 82%
Measurable  Close sales represented $20,000 into monthly recurring of revenue in
first quarter
 By comparing monthly as well as quarterly sales figures with
comparison of previous years
Attainable  Excellent service paired with the quality of the food
 Improve the product knowledge to find solutions for the customer’s
issues
Relevant  Increase in turnover by 25%
Time-based  To meet with the goals within first three months
Actions: In this company, the CEO management level takes strategic decisions to reduce
the potential consequences of the issues that the company faces. The strategic planning makes
decisions on allocation of resources. Acquisitions are the strategic choices for the organization
where the choices are looked at 4 years but its vision is extended to 20 years. Tactical planning is
emphasized with the current operations of different parts of Wilmar International (Christopher,
2016). The action plans are taken in areas of the production, marketing and financial facilities.
The operational planning is a process to link the strategic goals as well as objectives.

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Managerial Level Level of Details Time Horizon
Strategic CEO level Low 4 years
Tactical Departmental Head Medium 1 year
Operational Supervisors and Team
Leaders
High 8 months
Resources: Following are the resources which are identified for the company such as:
Resources Details
Financial The financial resources are cash, bank deposits, foreign currency holdings and
checks.
People Store Manager, Sales Manager, Customer Relationship Manager,
Equipment and tools Country business patterns, Business dynamics statistics tools
Implementation:
Defining tasks to be
accomplished
Assign
individual
responsibilities
Managing the individuals to ensure
completion
Identify variables of marketing
mix
Sales Manager Promotion of the products and services through
communication channels
Carrying out periodic audit of the
products
Store Manager Observe new trends into the market
Monitor the prices of the
products
Sales Manager Taking considerations of the factors like
production cost and value of the product

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Evaluate the placement of the
products
Product Manager Taking considerations of the factors like
distribution channels delivered the products
Position and reposition of the
products
Sales Manager Redesigning the products as well as services
6. One aspect of the company culture and how the company creates strong
culture based on chosen aspect
One of the aspects of the company’s culture is espoused values which are based on
catering to employee’s needs, support their innovative ideas and reward the employees. The
espoused values are contributed to develop normal standards of Wilmar organization of how it
conducts the business in present and in future. The company creates stronger culture based on the
espoused values aspects (Kerzner & Kerzner, 2017). In the company, values plus morality is
required to develop and improve standards on how the business is performed. The participants
identify as being a significant importance in the current culture of selected company, Wilmar
International.
7. Organization structure
The selected company achieves unity of command, centralization vs decentralization,
span of control and formalization. In Wilmar International, the organization structure
automatically follows unity of command when there is single owner or the manager can full
control over the managerial responsibilities. CEO is the unity of command or the owner of the
company (Bull et al., 2016).

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Centralization and decentralization is a structure where the government, management and
purchasing are involved. The centralization of authority means there is power of planning as well
as decision-making are in hands of the top level management. It includes concentration of
powers at apex levels (Phadermrod, Crowder, & Wills, 2019). It involves sales director, HR
director, finance director and operations director.
The span of control is referred to the subordinates those are under the direct control of
managers. The manager has span of control over five members. It helps to review how effective
the organization is as long as they are looking in context of the organizational structure of
Wilmar International. It involves managers of various departments and divisional and finance
accountants.
Formalization in the organization structure is process in which the managers are specified
the rules and responsibilities for the employees, organizational units, teams, group members as
well as organization as whole (Chernev, 2018). It leads towards development processes,
relationships plus operating procedures. It involves technical and procurement staffs.
The organization structure of Wilmar International is like divisional organization
structure where each of the organizational functions have own division corresponds to the
products and geographic. Each of the division contains required resources along with functions
required to support the product line (Moutinho & Vargas-Sanchez, 2018). This organization
structure is independent of the operational flow where failure of one company is not threatening
existence of others. This structure organizes the activities of the business based on geographical,
market, and product and service groups. The organization structure is selected based on
following strategic factors such as:

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Function: All the employees of the company are grouped based on the functions that
Wilmar International is provided. The company organized on the divisional lines which have
operating groups for various countries and commercial customers (Armstrong et al., 2015). Each
of the division is contained completed set of the functions.
Geography: The employees are being grouped based on regions. As Wilmar International
is a global or MNC Company, therefore the grouping is done based on the countries.
Product: When the company is producing various products and offering various services,
then it is grouped based on the food and beverage products as well as services which the
company provides (Zimmerman & Blythe, 2017).

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Figure 2: Organization Structure
(Source: Meuser et al., 2016, pp-1379)
8. Traditional leadership theory and motivation theory
The traditional leadership theory which is used in selected company is trait leadership
theory defined as integrated patterns of the personal characteristics which can reflect on range of
the individual differences as well as foster effectiveness of the leaders across different
organizational situations (Wagner & Eggert, 2016). It is one of the theories which can investigate
nature of effective leadership among the leaders those are leading entire organizational functions
and operations. The leadership traits are:
 Intelligence, action oriented judgments
 Eager to accept responsibilities
 Skilled and capable to lead the operations of the business
 Interpersonal skills are required to lead the work effectively
 Understand the followers plus their needs
The motivation theory which is used in selected company to motivate the employees is
Urwick’s theory Z. Each of the individuals knows the goals of organization as well as amount of
contributions through efforts towards the organizational goals. They should know relation of the
organizational goals for satisfying the needs of their customers (Lussier & Achua, 2015). By
means of this theory, the members are ready to behave positively to involve in organization’s as
well as individual’s goals. Theory Z is attracted attention of the management practitioners plus
researchers. This theory makes stronger bond among organization and employees. This stability
is achieved throughout high conductive working environment plus challenges furthermore

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participation in making organizational decisions (Meuser et al., 2016). It also makes employee
participation and involvement stronger so that all the employees are involved into the business
functions. The employees suggested their decisions to the management and final decisions are
taken by the top level management. There is no such formal structure and there is proper
development of human resources.
There must be perfect team work with cooperation in sharing of information and
resources. It solves problems with no such formal reporting relations and minimum
specialization of the positions plus tasks (Graham & Taylor, 2016). The leader can coordinate to
people for organizational productivity. It involves development of people’s skills and creates
new structures. In order to develop culture in the organization, the leader users process of
communication and analysis. Mutual trust and cooperation are required as informed control
system so that all the members are made proper decisions and motivated to work (Sanoff, 2016).
This theory provides job security while the employees are failed to develop loyalty among the
employees. Therefore, this motivational theory helps the employee to work perfectly in the
organizational environment.
9. Recommendations
Following are the recommendations which are suggested as the company can make
progress in the next 5 years such as:
Form a perfect team structure: The Company should form a perfect team structure
where each responsibility of team members is assigned to them so that all the members can
perform their work effectively.

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Communication plan: The Company should implement communication plan so that all
the members can interact with each other’s so that all possible issues are mitigated on time to
overcome with organizational conflicts.
Schedule the plan: The Company schedules the implementation plan so that all
organizational objectives are implemented on scheduled time.
10. Conclusion
It is concluded that the employees of Wilmar International are motivated which helps the
person to achieve the SMART objectives. The individuals are pushed to achieve the goals to
achieve the customer satisfaction level by 82%. The employee as well as manager can possess
the leadership as well as motivational traits. Development of morality as well as team sprit can
provide a key impact on the well beings of the organizations. The individuals are encouraged to
get involved into planning so that the decisions are taken on time. Team spirit is soul of the
business organization so that the leader can make sure about the business performance.

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References
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