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11 Strategic Initiatives for the Palm Oil Industry

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11 Strategic Initiatives for the Palm Oil Industry (where applicable)

Publicado en: Economía y finanzas
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11 Strategic Initiatives for the Palm Oil Industry

  1. 1. Proposals For PAlm Oil Leadership & Management (PALM Associations) 11 Strategic Initiatives that will provide outstanding innovation and creativity in transforming the oil palm industry By Lt Cmdr (Retired) Johnny Moi, RMN
  2. 2. 2 Table of Contents Section Proposal Topic Page No 1 Executive Summary 3 2 Current Situation 4 3 PALM Policies 5 4 The Approach – 10 Strategies 6 5 Implementation Summary 7 6 Deliverables Overview 8 7 Results Enhancers 9 8 Conclusion 11
  3. 3. 3 I. EXECUTIVE SUMMARY The purpose of this proposal is to provide PALM Associations [including Malaysian Palm Oil Association (MPOA), Malaysian Palm Oil Board (MPOB), Malaysian Palm Oil Council (MPOC) and related organizations such as FELDA, National Organization of Smallholders, Malaysian Estate Owners Association, Palm Oil Millers Association and Malaysian Oleo-chemical Manufacturing Group…] with the Strategic Initiatives that will address the socio-economic challenges and improve livelihoods of individuals, communities and regions in the palm oil industry. Successful implementation of this proposal will enable it to have an enhanced model to achieve its objectives (or strategies) and beyond. The proposed overall objectives (or strategies) to be accomplished are: 1. To expand and improve current uses of palm oil products. 2. To find new uses and markets for palm oil products. 3. To improve production efficiency and quality in palm oil processing. 4. To optimize land utilization in oil palm areas using technologies and other farming methodologies. 5. To promotethe consumption and marketability of oil palm products. These are the major overall objectives or strategies.
  4. 4. 4 Secondary benefits that will result from the success of these strategic initiatives are: 1. A Master plan or Blueprint to implement policies and developmental program relating to oil palm industry. 2. A central point to conduct and promote R & D. 3. An industry Training and Development platform. 4. A focal point to coordinate all activities in relation to the oil palm industry. 5. Further development and maintenance of the palm oil markets. 6. Forum and Focus point with external interested parties. 7. Human Resource Development Centre – planning and implementation of all training programs. 8. Management of a Resourceand Information Centre for the palm oil industry.
  5. 5. 5 II. CURRENT SITUATION There are many critically challenges and factors affecting the palm oil industry. Among them are low prices, low soybean oil prices, replanting issues and unregulated supply and demands. Growing challenges and issues have necessitated other organizations that are beginning to challenge the leadership position. This new leadership challenge make it imperative that it reasserts its status quo by introducing new strategic initiatives that will bring value-added benefits beyond its entity to existing and new members and the community at large. III. PALM ASSOCIATIONS POLICIES The proposed key activities and policies of PALM Associations are: 1. To adopt strong market and industry –orientated research and development programs. 2. To aggressively undertake transfer of technologies and commercialization of research results. 3. To forge an active partnership in technology development and utilization with the private and public sectors. 4. To strengthen international linkages and research collaboration in selected areas.
  6. 6. 6 5. To promoteglobal awareness, appreciation and demand for Malaysian oil palm and related products and services. IV. THE APPROACH – DEVELOPING THE 11 STRATEGIC INITIATIVES PALM Associations proposes to meet the objectives and requirements by implementing of the following approach. This implementation plan consists of 11 Strategic Initiatives. This will include the following: 1. Development of a global or transnational strategy. 2. Development of a total system approach in measurement, mitigating, reporting and monitoring in oil palm production. 3. Development of a blueprint to improve palm oil yields and reduce biodiversity environmental and climatic impacts. 4. The development and enhancement of a Research & Development Centre as well as a Training Centre. 5. Development of a strategic approachto CSR programs for community development in the oil palm industry. 6. The empowerment of smallholders / farmers through plantation companies & governmental assistance programs. 7. The study and adoption of new technologies to improve yield, reduce pollution and improve management of mills and plantations. 8. Development of a comprehensive conservation approachto mitigate biodiversity impacts of oil palm production.
  7. 7. 7 9. Development and enhancement of a trans-boundary haze pollution prevention council. 10. The establishment of a Palm-oil Leadership & Management (P.A.L.M.) Annual Gala Awards’ Night. 11. The development of a Strategic Marketing Plan that will cover the Organizational Positioning, Goals & Strategies, Market Opportunities, Target Market(s) and the Marketing Budget. In enhancing PALM Associations as an effective organization, following are the considerations: Vision – To become the premier producing research and development institution providing leadership and impetus for the development of a highly diversified, value-added globally competitive and sustainability oil palm industry. Mission– It is to enhance the well being of the Malaysian oil palm industry through research, development and excellent services. V. IMPLEMENTATION SUMMARY 1. Review all the above Strategic Initiatives, programs or plans with approving Associations for final approval and implementation. 2. Develop written and electronic copy and handbooks for users’ distribution. 3. Hold enterprise-wide meeting and presentation to formally introduce programs to all members.
  8. 8. 8 4. A Project Management Systemmay be developed forthe implementation of PALM Associations’ 11 Strategic Initiatives. VI. OVERVIEW OF DELIVERABLES In support of PALM Associations it is proposed with the following proposed deliverables: 1. Legal and formal set up of a subsidiary company or entity. 2. Strategic Planning services for members (include smallholders and traders) and associated parties in the oil palm industry. 3. Financial Planning services for all members and interested parties. 4. Development of a Small Medium Enterprise Model for smallholders or traders. 5. Development and implementation ofthe proposedMultiple Benefits Insurance Plan (optional). 6. Development and implementation of BEST (Better Expertise Support & Training programs) (2) – Basic and Advanced Levels 7. The development of an Enterprise Resource Planning (ERP) system to manage the end to end activities. OPTIONS In addition, the following optional services may be made available:
  9. 9. 9 1. Project Management of start up, staffing and hand over of PALM Associations Strategic Planning Unit or entity. 2. Feasibility Study and Project Management of PALM Associations Strategic Division set up and any other projects as directed by PALM approving Associations. 3. The sourcing and project implementation of the ERP system for PALM Associations. VII. RESULTS ENHANCERS To provide accelerated project completion and reduce development costs, the following items that add value and enhance the results are proposed. Theseresults-enhancers will provide PALM Associations with minimal risks, maximum benefits in the following:  The setting up of a Strategic entity / think tank to develop global and transnational strategies for PALM Associations.  Development or enhancement of a whole system approachin measurement, mitigation, monitoring and reporting in oil palm production (ERP System).  The adoption of Best Management Practices (BMP) to improve palm oil yields and reduce Biodiversity, Environmental and Climatic Impacts (BECI).  The establishment of an enhanced R & D Centre as well as an Industry Training Centre.
  10. 10. 10  Development of a Strategic Plan to all CSR activities for community development in oil palm industry and environment.  Further empowerment of smallholders, farmers and traders through plantation companies and government assistance with funding and management controlby PALM Associations.  Enhanced efforts in promoting new technologies to reduce pollution and improve management of mills and plantations (new machinery and ERP IT systems).  Development of a comprehensive conservative approach/plan to mitigating biodiversity impacts of oil palm production.  The creation of a transnational Haze Pollution Prevention Council that will look into replanting, law enforcement, zero burning, peat soil management, firefighting, collaboration among members’ nations, cloud seeding, payment for non burning practices and any other innovative approaches.  PALM Associations annual hosting of the Palm Oil Leadership & Management (PALM) Annual Gala Awards Night (Round-table basis). A separate proposalon this event management is available on request.
  11. 11. 11 VIII. CONCLUSION The many complex and challenges faced by all in the oil palm industry make it imperative that PALM’s associations must take the innovative approachin asserting its respective leadership position and roles in this industry. A strategic technology plan is needed and may not be adequate for technology is just a tool in strategic planning. With this in mind, the 11 Strategic Initiatives is proposedto meet the myriad issues and challenges faced by those in the industry. The 11 Strategic Initiatives will take in consideration the objectives and policies of PALM Associations and outline the strategic approaches and benefits to enhance PALM Associations’ standing. Implementation of the 11 Strategic Initiatives will enable PALM Associations to address the major challenges outlined in the proposaland faced in the oil palm industry. The call for an innovative and creative plan necessitates that an out-of-the-box approachto the complex and dynamic nature of the oil palm industry. This means advocating the implementation of a Strategic Plan (11 Strategic Initiatives) rather than a Technology Plan. Suffice to say, a Technology Plan is to supportthe Strategic Plan.
  12. 12. 12 Lt Commander (Ret) Johnny Moi, RMN is an international award writer, was formerly the Chief Editor of LEADERS Magazine. He can be reached at