McGill St Laurent: Growing a Commodities Trading Firm

In May 2018, Philippe Boisclair, business owner and president of McGill St Laurent (MSL), sought to grow the firm and increase annual profitability by CA$35 million by 2020. MSL was a medium-sized commodities trading firm with interests in wood, grain, and energy. Founded in 2009 by two business school graduates and veterans of the lumber industry, MSL had enjoyed significant growth. The company had not only expanded into grain and energy trading but had also diversified its wood business to encompass architectural design and manufacturing as well as industrial lumber products. Boisclair, a serial entrepreneur, had to decide on a corporate growth strategy, which he had to present at the upcoming advisory board meeting.

This case is suitable for undergraduate- and graduate-level courses that focus on corporate-level growth, including (global) strategy, entrepreneurship, and business ownership. The case could also be used to challenge students on industry analysis, given the unique nature of the commodity trading industry. If used in a core strategy course, the case should be used once students have learned how to perform industry- and firm-level analysis, assess competitive advantage, and understand both business- and corporate-level strategies. By working through the case and assignment questions, students will have the opportunity to<ul><li>understand the industry dynamics of the commodity trading business and determine industry key success factors; </li><li>identify the resources and capabilities required to compete in the industry and determine the core competencies required for competitive advantage;</li><li>explore growth strategies for a diversified corporation operating in the commodity trading business; and</li><li>develop a corporate growth strategy founded upon the business owner’s vision and values.</li></ul>

• Corporate Strategy
• Corporate Diversification
• Business Ownership
• Commodity Trading