Sime Darby Swot Analysis

SWOT ANALYSIS

It is an instrument used to have a superior comprehension of the Sime Darby’s business. By having a better comprehension of the variable that influence the business, it helps the company to anticipate the trends and build up a strategy to accomplish the objectives.

 Strength

 The world’s largest listed oil palm plantations

In Malaysia, Sime Darby is the largest listed plantation company. It can create around 2.47 million tons which is 5% from the world’s crude oil every year. The palm oil has many uses so the plantation area is fit for accomplishing high profit with suitable methodology. The higher of the market capitalization will pull in the consideration of investors since it gives a sign that this company has a high value

It will help them to get the best price. But it doesn’t rely on upon the extent of the business alone. In order to obtain the benefits of the economies of scale, Sime Darby ought to consider the other factors such as the company’s profit, task are performed by the employees of the organization itself and whether they utilize the assets wisely.

 Environmental Protection Practices

Sime Darby is devoted to have a best practice in the sustainability of the plantation. This is because Sime Darby believes that there are inseparable relationship between the plantation and the environment. If they wanted to keep up the business in the long run, they must preserve the environment. The effort can be seen through the annual report where there are numerous activities that stress their concern for the environment. One of these practices is concentrating on carbon emission from agriculture. Moreover, Sime Darby also putting a biogas power plant with the aim of lessening the carbon emission.

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This is due to the reason of the minimum wages in Indonesia is presently practically equivalent to the minimum wages in Malaysia, and Sime Darby also gives other advantage such as house, perfect medical and service and the current daily needs to persuade and retain the Indonesia skilled employees. Typically, Sime Darby prefers to hire the workers from Indonesia, Nepal, Bangladesh and Myanmar. The main reason why Indonesian employees becomes the first selected is on account of they are faster in cutting, reaping and gathering oil palm fruit. The downsizing of Indonesian employees will influence the performance of the company particularly as far as the amount of the palm oil that can be collected as local workers have less enthusiasm to work in plantation