OSI’s International Expansion and Why It Has been so successful

OSI Group has been a leader in the food processing industry since 1909 when it was established. Even though a lot has changed since then, one thing remains constant: the company’s commitment to providing its customers with nothing but the best. When the current CEO of the company, Sheldon Lavin, took over, he had one vision—to transform the company into a global enterprise—and he has been making small but steady steps towards that. OSI’s first operation outside the U.S. was the Beijing facility, which it opened in 1992. Since then, the company’s presence in China has grown vastly, and it now has several other operations in the country.

Over the years, OSI has been forming strategic partnerships with other companies in the food processing industry to expand its market reach. Over the past 12 months, it has opened 7 new facilities in various locations around the world. Its leaders put a lot of emphasis on growth and expansion, and are investing a lot in this. The company partners with clients to find out what they need so that they can provide them with exactly that.

Strategic Partnerships

OSI recently purchased a plant in Chicago that formerly belonged to Tyson Foods for $7.4 million. The plant makes various food items including bacon, meat balls, hotdogs, hamburgers, vegetable products and poultry products as well. The company also purchased Flagship Europe, which makes dips, sandwich fillings, dressings, sauce, pies and marinades. OSI formed a partnership with Daho Foods, a Dutch company that manufactures deli meats, snacks and convenience foods. Daho Foods has operations in Netherlands and Germany and serves 18 countries in Europe, so this new partnership will really increase OSI Industries’ market reach. Through all these new operations, OSI is able to meet the growing demand for its products in the U.S. and beyond.

OSI currently has 65 facilities in more than 15 countries including the U.K, Brazil, India, Poland, Canada, Spain and Germany among others. The headquarters of OSI are in Aurora, Illinois. However, it runs its operations as autonomous units with local managers and employees as they understand the locals better and are better placed to meet their unique needs.

Conclusion

The decentralized business structure that OSI uses has worked very well for it. That is one of the reasons why its international expansion has been so successful. There is no micromanaging by top executives who do not really understand the local markets. With the excellent leadership and winning business strategies used at the company, OSI is bound to grow tremendously in the coming years.

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