The Global Expansion Model of OSI Group and its Importance

Companies across industries apply various strategies when they want to go for global expansion. Short-sighted strategies can cost the disappearance of the companies, and due to that reason, the leadership of various companies look for stories of successful expansion models. A perfect example of global expansion can be quoted is OSI Group, a U.S.-based food processing firm. The company that started its global journey in the early 90s became one of the global leaders in the food processing industry in a quick span of time. The firm was quick enough to adapt to the conditions of various countries and designed local business models that are respecting the culture, taste needs, and more of the particular countries.

Secondly, OSI Group ramped up the expansion process using the acquisition tool effectively across the globe. This helped the company to improve its footprint and to diversify its product portfolio. The firm is still rapidly absorbing other players in different demographics to improve its network and service excellence. For instance, in 2016, OSI acquired Baho Food, a prominent Dutch food processing company, to improve the presence of the former in Europe. Baho had food processing plants in Germany and the Netherlands, and it was operating as five different subsidiary companies.

The Dutch food processing firm also had the customer network in 18 countries in Europe. Apart from improving the presence, the deal also helped OSI Group to improve its operational excellence. In June 2016, the firm went for another acquisition in the North American region. OSI acquired a food processing plant including a storage facility from Tyson Foods. The plant located in Chicago improved the infrastructure support of the company for its continued business growth. Thirdly, the company is also committed to highest quality products from its plants and ensures greater management of environmental risks. It helped OSI UK division to win Globe of Honor Award – 2016 from the reputed British Safety Council.

OSI Group is headquartered in Aurora, Illinois, and it grew its business to nearly 17 countries around the globe. It operates with more than 50 plants and has a significant presence in all the major economies. The President of the firm, David McDonald confirms that the group has global scale and efficiency clubbed with local solutions. The company was established in the year 1909, and the influential leadership of Sheldon Lavin, the Chairman and CEO of the group, made a significant difference in the growth strategy of OSI in the recent years.