Management 110 : Assessment 2

1) Case Study
I chose Sime Darby Edible Products Limited is because throughout the years, Sime Darby is a very
famous multinational company. Dont you think that they are having management problem in such big
company? Through my research, I have noticed that Sime Darby is ongoing a process of deforestation
and this may cause the environmental damage and pollution in the country.
2) Contemporary management Issue in relation to this article
Issue : Failing Planning and Leading that occurs deforestation through business operations
Background of the company
Sime Darby is the worlds largest in palm oil producer, the leader in plantation sustainability and also a
fully-owned subsidiary (Anonymous, 2014). The company produces oils and fats that are widely
recognized by Sime Group. In 1938, the company has fully committed to provide the customer with the
best quality product by processing the edible oil to a branded consumer product. Sime Darby created an
attractive packing, projecting sales material and a well-planned marketing strategy in their company. Not
only that, they have exported to almost every part of the world such as America, Europe, China, the
Middle EAST, Africa, the Asia Pacific region. (Simedarbyepl.com.sg, 2014)
Key Issues for the Company
Sime Darby is a multinational company that having main sector, which is the palm oil plantation based in
Malaysia. Lately, Sime Darby has destroyed the environment by cutting down the trees for construction in
Sabah. In this case, to ensure environmentally sustainability in the long run, Sime Darby has been
pursuing an increase in the oil palm industry by increasing production in Tawau, Sabah. Therefore, this
issue will bring ecological damages caused from the deforestation.
Relevant Management Theories and the key issues relating to them:
Planning
Planning is the process of setting objectives and determining how to accomplish the goals (Schemerhorn
and Davidson et al., 2011, pp. 163-184). In this case, Sime Darby involves operational plan in order to
achieve the goal. The problem that the Sime Darby is facing is due to deforestation and this report has
conveyed the plan, which is replantation and rehabilitation of the rainforest and its inhabitants.
Leading
Leadership is a process of directing and influencing the task-related activities group members (James A.F
and R.Edward et al., 1995, pp. 470-489). A leader is someone who influences others to achieve the goals
set and has managerial authority over the subordinates (Robbins, 2009). Based on this research, Sime
Darby should incorporate a leader who is both a transactional leader and charismatic leader. A
transactional leader is to push the workers to work hard with reward at the end whereas the charismatic
leader motivates the employees to work together and achieve the goal as a team. (G.A, 1996, pp. 50-51)

3) Dicussion and Analysis

-The problem is that Sime Darby wanted to resolve a serious ongoing problem with environmental groups
before it became a crisis but had no experience of global issues management.
- Good practices management would require Sime Darby to undertake their planning and leading
because Sime Darby has adopted the best practices from the industry throughout the entire supply chain.
The Good Agricultural Practices implemented by Sime Darby Plantation to make sure the sustainability of
its business such as Land Preparation & Management. Through the agricultural practices, it can involve
planning and leading.
- The key challenges that organization faces are the sustainability palm oil driving deforestation. Like for
example, Sime Darby palm oil company based in Malaysia is deforesting new land in order to meet the
targets and increase of demand for biofuel. The issues may be solved by having a good management in
creating some rules and regulations so that it can prevent from deforestation occurs.

Reference List
- Simedarbyepl.com.sg. 2014. SimeDarby. [online] Available at:
http://www.simedarbyepl.com.sg/profile.html [Accessed: 4 Apr 2014].
- G.A, C. 1996. Management Theory and Practice. 5th ed. London: DP publications.
- James A.F, S., R.Edward, F. and Daniel R. Gilbert, J. 1995. Management. 6th ed. United States of
America: Prentice-Hall International, Inc.
- Robbins, S. 2009. Management5. Frenchs Forest, N.S.W.: Pearson Education Australia.
- Anonymous. 2014. [online] Available at:
http://www.simedarby.com/upload/Sime_Darby_Sustainability_Report_2013_Low_res.pdf [Accessed: 8
Apr 2014].
- Schemerhorn, J. R., Davidson, Poole, Simon, Woods and Chau. 2011. Management. 4th ed. New York:
John Wiley & Sons, Inc.
- Palm oil giants target Africa in 'land grab' following Indonesia deforestation ban. 2011. Available at:
http://www.theecologist.org/News/news_analysis/823928/palm_oil_giants_target_africa_in_land_grab_foll
owing_indonesia_deforestation_ban.html [Accessed: 9 Apr 2014].
- Reaching for the star. 2014. [e-book] Sime Darby Plantation Sdn Bhd.
http://www.simedarbyplantation.com/upload/SL_newsletter_5_6(L).pdf [Accessed: 9 Apr 2014].