A Unique Strategy Drives OSI Group’s Expansion Plan

Business, Food Industry

OSI Group is an entity that has a rich history laced with innovative growth strategies. The global company has its headquarters in Aurora, Illinois. OSI can be traced back to 1909, when a German immigrant Otto Kolschowsky opened a small meat market in Oak Park, Illinois. The business expanded gradually to become a leading player in the retail and foodservice industry. OSI’s breakthrough came after partnering with McDonald’s, a relationship that still exists.

OSI Group supplies products to renowned entities in the food industry including McDonald’s, Starbucks, and Burger King. The main products include pork, poultry, bacon, meat patties, and pizza among others.

The company is one of the largest private businesses in the United States. Its expansion to the international market is attributed to an impressive strategy. OSI endeavors to provide customized services to its customers from different parts of the globe. In fact, every brand or outlet of OSI is created in line with the culture, customers’ preferences and regulatory provisions of its location. The result is usually provision of services that satisfy the needs of customers in the particular context.

Another critical element in its strategy is the acquisition of other brands. It has enabled OSI to penetrate other markets such as Europe. At home, OSI Group bought Tyson Foods plant in Chicago. The plant is expected to support infrastructural development, which is an essential element of OSI’s future growth plans.

OSI Group purchased Flagship Europe, a key player in the UK foodservice industry. The Flagship Food Group, Denver owned the brand. Flagship Europe supplies sous vide products, pies, frozen poultry, and mayonnaise sauces among others. Also, OSI acquired Baho Food, a Dutch food processing company. Baho Food is a successful company with five other subsidiaries and presence in 18 European countries. The company also owns two processing plants in Germany and Netherlands.

The two acquisitions have significantly boosted OSI’s presence in the European market. The company, however, plans to retain the teams that were running these enterprises. The decision is in line with OSI’s strategy of maintaining managerial teams that have an excellent understanding of the culture and consumer tastes and preferences. The approach drives OSI’s operational excellence by encouraging the exchange of ideas between the teams at the headquarters and its branches.

OSI Groups now boasts of over 80 facilities and a presence in over 17 countries. It has a workforce of over 20, 000 employees around the world. The company has also won recognition from various entities. For instance, OSI Food Solutions UK won the Globe of Honour Award for 2016 for excellent management of environmental risks.