Wilmar International SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

1. Increasing demand of quality agro products: There is a very bright long term prospects for the palm oil business with the prospective rise of global demand for its food and non-food applications. Also, the cost of production for the palm oil business is very low which adds to its profitability. There is an opportunity of increase in the demand of high quality agro based products with rapid urbanization and a sudden rise of affluence in Asia.

2. Joint ventures and acquisitions to drive growth: Wilmar has a strong base to build upon with the joint ventures that it has entered which will give it an edge over its competitors in coming times. Some of the joint ventures that the company has recently entered are Repi Soap and Detergent S. Co. to upgrade existing manufacturing facility and build a new manufacturing complex in Ethiopia; Great Wall Food Staff Industry Company Limited, a leading sugar company in Mynamar; Yihai Kerry Kellogg Foods for manufacture, sale and distribution of savory snacks and breakfast cereals in China; Clairant Ltd. for production and sales of amines and selected amines derivatives. Apart from its joint ventures, the company has also managed to have some successful acquisitions. The company has widened its footprint in terms of the oleochemical capabilities with acquisition of Hunstman’s European commodity surfactants business in 2014.

Threat

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Political

1. Stable local political environment in Singapore: Singapore is a strong democracy and according to Political and Economic Risk Consultancy (PERC) states it has lowest political risk in the not only in Asia but globally. Further the country ranks as the least corrupt country out of the 16 major economies surveyed by PERC for the fifth consecutive year in 2017. These factors increase the ease of doing business in the country benefitting the local industry and organizations such as Wilmar which is headquartered in the country.

2. Global political developments leading to economic uncertainty: The deterioration in the security situation and political instability in several regions across the globe is leading to economic uncertainty. Many countries in the Middle East and the North Africa region are going through civilian unrest, uprisings and impacted by terrorist activities. Yemen, Syria, Iraq, Egypt, Libya have been severely impacted by civil wars and terrorism and the recent blockade of Qatar by the other members of the GCC also complicates the political stability of the region. There have been terrorist attacks across Europe including Germany, France, Belgium and UK over the last two years. Thus Wilmar’s businesses in these geographies could be impacted if the situation deteriorates further.

Economic

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Social

1. Stakeholder engagement and global philanthropy programs: Wilmar has a very diverse, multi-national workforce of over 93,000 people. The company committed US$ 9.6 million to its global philanthropy programmes that spanned across China, Singapore, Indonesia, Malaysia, Africa and other countries which adds to the social well-being of its stakeholders and gives a responsible brand name to the company. Wilmar extensively engages with communities and has established pioneering endowment funds at Kandang Kerbau Hospital in Singapore as an initiative for the good health of the people of Singapore and help the healthcare sector of the country. In 2011, over 14,000 cataract operations were funded by the company. The group has supported education in Singapore by setting up a Wilmar Overseas Internship Fund at Singapore Management University. Wilmar advocates the value of higher education through such initiatives. The Wilmar Eye Disease Treatment Donation Drive is conducted in Mynamar.

Technological

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Legal

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Environmental

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