Swot Analysis Of Palm Oil Industry

Since the palm oil industry is moving to a sustainable development, the organizations in it are adopting significant change to achieve this objective. For example, in their raw material process, the palm oil industry in Malaysia is now shifting towards selective breeding in order to support this change. When adopting selective breeding, palm oil production would be positively affected since those organizations would save their resources apportioned to pesticides and insecticides since those trees would no longer need those chemicals to grow when compared to the previous trees. Thus the manufacturing of the product would increase gradually as there would be more resources available.

Correspondingly, the world demands require to double the current

An organizational structure is how activities such as task distribution, direction and management are directed towards the success of structural goal. It can also be considered as the perspective through which persons see their organization and its environment .An organization can be structured in many different ways, depending on their objectives.

MALAYSIA PALM OIL BOARD (MPOB) ORGANISATIONAL STRUCTURE The board organizational structure is excellent, as they use departmentalization whereby each and every work is categorized according to their specialism. Before their departments were few in number but the diversification of the organization resulted in more departments. This facilitates specialization of work. For example, they differentiate between oleochemical technology and biotechnology, this simplify the work of leaders and subordinates. Also it gives a better chain of command whereby, every subordinate report to the head of their departments. • POLITICAL AND LEGAL FACTORS

The political-legal dimension of the general environment also affects business activity. The philosophy of the political parties in power influences business practices. The legal environment serves to define what organisations can and cannot do at a particular point in

Decision-making and any actions of the organisation is never possible without encountering a law, regulation, or legal problem.

In Malaysia, the industry is governed by the Malaysian Palm oil Board Act 1998 (Act 582) found under the Ministry of Plantation Industries and Commodities (MPIC), which acts as a controller and monitors all the activities from plantation till exportation. They entrusted to serve the country’s oil palm industry, to promote and develop national objectives, policies and priorities for the well being of the industry.

The Palm Oil Industry took part in the Roundtable on Sustainable Palm Oil (RSPO) conference recently where various stakeholders try to reach common agreement at International level, in a view to implement common actions towards achieving sustainability of production and use in its entire supply chain The RSPO requires companies appealing to sell certified-sustainable palm oil to participate in third-party assessments to confirm the “legal, economically viable, environmentally appropriate, and socially beneficial management and operations” grade of the product. By 2015, 15% of RSPO member groups have entrusted to use only sustainably produced palm oil (Skinner