Inecda Corporation: A subdivision of Pan Inecda Corporation investment and holding

• Main Author: Rangkuti, Zainul H.
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2243
• Institution: De La Salle University

The current growth for the demand of palm oil products is relatively high. There was a dramatic increase in the market price of palm oil products during the past four years. The flexibility of food stuff from palm oil resulted in the drastic increase for its demand in the market, however, there is a possibility for the fluctuation of prices in the future as an effect of the law of supply and demand. As of the present, Inecda Corporation has not fully utilized all its land resources which may result in opportunity loss in terms of production. This paper aims to provide a solution to the company in taking advantage of the growth in product price and market demand by analyzing the present situation using the five forces, value chain and SWOT as tools for analysis. The purpose is to formulate strategy to solve the companys present problem by using its available resources. The strategy is focused on the expansion of the company capacity by the development of the idle plantation area covering around 4, 000 hectares of land. This undeveloped area will be opened to small investors who are interested to invest in the oil palm industry. The small investors will comprise the oil plantation estate which will be manage by Inecda Corporation. The initial investments of small investors will be utilized to develop the idle land to increase the companys production, thus generating income for both the company and the small investors.