charoen pokphand group

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