charoen pokphand group
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Charoen Pokphand Group. Group C: Angus Karen Karina Janet Simone. Agenda. Background CP’s strategies Reasons for success Influence of Asian Financial Crisis Recommendations. Background. Begins as animal feed business - PowerPoint PPT PresentationTRANSCRIPT
Charoen Pokphand GroupCharoen Pokphand Group
Group C: Angus
Karen
Karina
Janet
Simone
Agenda
Background
Strategies
Asian Crisis
Recommendations
AgendaAgenda
1. Background2. CP’s strategies3. Reasons for success4. Influence of Asian
Financial Crisis5. Recommendations
Agenda
Background
Strategies
Asian Crisis
Recommendations
BackgroundBackground
Begins as animal feed business
Based in Thailand, quickly developing Southeast Asia and China
Agenda
Background
Strategies
Asian Crisis
Recommendations
Organization ChartOrganization Chart
CP GROUPCP GROUP
Aquaculture
Seeds &Fertilizers
Real estate
International Trading
Wholesales &retails
Agriculture
PetrochemicalManufacturing
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategiesStrategies
Investment Finance Operational Management Marketing Technology HR Management Business Network
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategiesStrategies
Investment–Diversification•A) geographical (China, Japan…)–Long term investment »E.g. Rising Populations of rising
income, middle-class and working women
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategiesStrategies
–Long term goal»Not taking profit from country
»Develop local talents
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategiesStrategies
• Industrially–Looking for large and growing
markets–Must be important–Analyze internal resources and
capabilities –Pioneer of new market
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategiesStrategies
–Overall,
Invest in small first
If projects developed
successfully
Reinvestment and
Commitment
Agenda
Background
Strategies
Asian Crisis
Recommendations
Reason for successReason for success
Lower the risk of individual business
Geographic– Explore opportunities in new market
Industry–Explore new business opportunities
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
Finance–Keep all private
–Recently, publicized more reports to invest by corporate equity
Agenda
Background
Strategies
Asian Crisis
Recommendations
Reason for successReason for success
Financial–Closed financial position
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
Operation Management–Vertical integration•Backward integration–Seeds & Feeding Chickens
• Forward integration–Chickens Food Processing & retail
s
Agenda
Background
Strategies
Asian Crisis
Recommendations
Reason for successReason for success
Vertical integration Control supply and demand Facilitate market coordination Provide leverage Create new market opportunities Leading market share
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
Marketing–Sensitive to market needs• Provide different kinds of
chicken products –e.g. TV-type dinners, chicken parts»Suit the needs of convenience of
customers
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
Technology–Acquire best technology
– Improved to suit local needs
–World class technology (partnership)• e.g. cooperation with Arbor Acres
Agenda
Background
Strategies
Asian Crisis
Recommendations
Reason for successReason for success
Be the pioneer in technological aspect
Acquire the special technology for the agricultural related industry
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
HR management–Each company has own autonomy
–Flat Hierarchy
–Attract and build good people
–Promote personal development
–Not family progressive
Agenda
Background
Strategies
Asian Crisis
Recommendations
Reason for successReason for success
Effective information flow Quick response to problem
and remedy immediately High commitment of staff
Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
Business network–Good government relationship
–Partnership
Agenda
Background
Strategies
Asian Crisis
Recommendations
Reason for successReason for success
Obtain a wide range of resource from the partners
Agenda
Background
Strategies
Asian Crisis
Recommendations
Asian CrisisAsian Crisis
Interest rate increase Firms become illiquid Diminishing markets Lay off people
Agenda
Background
Strategies
Asian Crisis
Recommendations
RecommendationsRecommendations
Mainly diversification–Spin off losing parts
–Develop based on company’s resources
Agenda
Background
Strategies
Asian Crisis
Recommendations
RecommendationsRecommendations
- Better coordination between departments and companies within group
- Make partnership with world-wide based company to improve global network
Q & AQ & A