Sipef Case Study

 

Figuur 1 Hectares planted (blue; source: Annual Report "Ouderdomstructuur") and oil yield per plant (%of rated output, right axis; source: bursadummy.blogspot.be) both in function of plant age. Sipef has a lotof immature plants.

With the age structure of the plantations on the one hand, and the yield per age on the other,we can simulate the future production for Sipef, assuming no Capex is made in planting new palm oil trees. We do this by correlating the two data series, and applying a +1 year offset onthe age of the plants for every year we want to look into the future. We find that the effect of additional yield from the (numerous) immature plants maturing is more important than the detrimental effect of the declining yields of older plants, and the demolishing of +28 years plants for until 2019 (see below). Some findings:

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Sipef’s real turnover (in tons) will grow 23%, until 2019, without any planting Capex!

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without any planting Capex, Sipef can sustain current level of production for until 2024!With stable prices for all crops, this means Sipef’s turnover will grow 19%

1

 “organically”, and without any growth capex until 2019.

1 The simulated 23% growth only applies for Palm oil turnover

owned by the group

. 84% of total turnover (palm ru!!er !ananas..." derives from palm oil. 82% of the palm oil a#tivities$ turnover is in turn #oming from the group$s plantations (18% rening of third-party$s #rops" as derived from the gures in the annual report on page &2. 'e #onservatively assume all other #rops have homogeneous age stru#ture and apply the 23% growth on the 82%84% se#tion of total turnover.

...Tutorial 3 Making the Business Case Multiple Choice Questions 1. A mature, stable industry may need IS to ________ the current pace of operations, while a company in a newer, more volatile industry (i.e., a cellular phone company) may find it more important to __________________ technology. a. reduce, outsource b. maintain, be on the leading edge of c. advance, reduce d. accelerate, maintain 2. Porter’s five forces include: a. competitors, new entrants, customers, suppliers, distributors b. customers, suppliers, distributors, middlemen, stockholders c. stockholders, suppliers, distributors, customers, competitors d. competitors, customers, suppliers, new entrants, substitutes 3. Probably the most important factor that can affect IS investment is the nature of ________________ in the industry. a. competition or rivalry b. technology c. customer service d. marketing 4. When making a successful business case, "Arguments based on data, quantitative analysis, and/or indisputable factors" are known as: a. arguments based on faith. b. arguments based on fear. c. arguments based on fact. d. None of the above. 5. What type of argument is this: "This analysis shows that implementing the inventory control system will reduce errors by 50% and pay for itself within 18 months"? a. An argument based on faith b. An argument based on fear c. An...

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