Case Study of Alliance One International Tobacco

Pages: 8 (2737 words) Published: August 26, 2013
2011
Tatenda J gunda 4230205
ALLIANCE ONE INTERNATIONAL TOBACCO
8/13/2011
2011
Tatenda J gunda 4230205
ALLIANCE ONE INTERNATIONAL TOBACCO
8/13/2011
ALLIANCE ONE INTERNATIONAL TOBACCO

EXECUTIVE SUMMARY
The report is aimed at demystifying the world’s second largest leaf tobacco merchant and agro-processing company which has since diversified it portfolio to also integrate other areas of economic development in non-tobacco products such as agricultural financing and also agronomy training. The company is well known of its robust structure and can be said to enjoy managerial economies of scale all looking at various operational aspects such as Operations. Legal, Finance, Marketing but most importantly the human resources aspect of the company is of paramount importance. However like any other business the company is also facing uphill challenges predominantly in its Human resources area especially issues to do with performance management faced by alliance one international. The second issue is about training and development. This is followed by the issue of occupational health and safety and integration of all operations and people involved in them including using tried and tested HR systems such as change management. INTRODUCTION

The objective of this report is basically to apply the HR systems such as change management skills to manage the organizations through a case study of ALLIANCE ONE INTERNATIONAL. The report consists of overview of ALLIANCE ONE including the organizational structure, mission and vision .Alliance one International was founded in 2005 as a result of a merger between two USA based multinational tobacco merchants STANCOM or Standard Commercial Tobacco Company and DIMON Incorporated both world leaders in the leaf processing and merchant industry. As a result of this merger the end result was that of the creation of the world’s second largest leaf merchant business after Universal Leaf Corporation. The report will look at the change management theory and its implementation in addition to demystifying the 3 HR concerns in the company COMPANY INFORMATION AND HISTORY

The company traces its history and to the late 1800 with the formation of Dibrell-brothers which was a small time family company in the USA which prospered due to demand of the leaf tobacco domestically and also through foreign trade. Another firm to join the gravy train in 1907 was Monk Austin which soon made its name in the leaf industry by putting quality first above all other things. In 1910 was the formation of the STANCOM which was more diversified as it had a wool division among other commodities with tobacco being its cash cow unit as it would contribute meaningfully to the overall company results. In 1995 the two companies Dibrell-brothers and Monk Austin agreed to merge resulting in the creation of DIMON incorporated which again took over INTABEX tobacco worldwide operations which was the world’s fourth largest merchant in 1997. The series of mergers and acquisitions progressed well into the new millennium which saw in 2005 STANCOM AND DIMON coming together to form ALLIANCE ONE INTERNATIONAL TOBACCO. (www.aointl.com)

Organizational structure
Alliance One International Tobacco Structure which is decentralized and divisional according to region
SOURCE ( www.aoitl.com)
A divisional structure can be explained as a structure that is characterized by a set of self-contained, autonomous units coordinated and controlled by headquarters. The structure is more power giving to divisional executives as well as middle managers over the daily affairs of their subsidiaries or divisional units that’s why it tends to be autonomous. The divisional executive team report directly to headquarters pertaining to issues of the day to day affairs of their divisions including progress and hindrances. Head office is an external overseer and as such is responsible for cash...

References: Alliance One International Company History. www.aointl.com
Tobacco Industry Marketing Board Statistics and Leaf Merchants market share www.timb.co.zw
B.A.T industries awards for safety and health 2003. Zimbabwe leaf processing companies. (www.tpz.co.zw)
Tobacco Industry compensation and work conditions in Zimbabwe. National Social Security Authority of Zimbabwe (www.nssa.org.)
Tobacco processing factories in Africa images can be viewed at legacy Tobacco documents. www.legacy.library.ucsf.edu.
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