Multistrada Agro International: Non-Market Strategy in Indonesia
(7 pages of text)
In 2016, a personal threat was made against the managing director of Multistrada Agro International, an Indonesian industrial forestry firm. The permits for the firm’s new rubber plantation overlapped with an existing palm oil plantation and the activities of local villagers, and also drew concern from outsiders who claimed to have rights over the land or wished to protect the environment. In sum, the venture altered the delicate balance of conflicting local interests. The managing director knew that unless she managed to work with local stakeholders, she would never be able to successfully operate large-scale rubber plantations. How should she handle this latest threat? What tactics could she use to deal with a variety of stakeholders with divergent interests?
This case illustrates the difficulties and frustrations of operating a business in an emerging market where there is limited protection of property rights. It is suitable for undergraduate and graduate students, or executive audiences, in courses on strategy, general management, or business in emerging markets. The case gives students an opportunity to
- become familiar with the business setting of emerging markets, and in particular, the significant non-market challenges that occur in such a setting;
- recognize the importance of non-market strategies;
- identify a range of non-market tactics toward stakeholders, and understand their use and impact; and
- explore the moral dimensions of non-market strategy in emerging markets.
Agriculture, Forestry, Fishing and Hunting
Indonesia, Large, 2016
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download