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Charoen Pokphand Group

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

cassandra-gilbert
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Charoen Pokphand Group

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  1. Charoen Pokphand Group Group C: Angus Karen Karina Janet Simone

  2. Agenda • Background • CP’s strategies • Reasons for success • Influence of Asian Financial Crisis • Recommendations

  3. Background • Begins as animal feed business • Based in Thailand, quickly developing Southeast Asia and China

  4. CP GROUP Organization Chart Agriculture Real estate Aquaculture Wholesales & retails Seeds &Fertilizers International Trading Manufacturing Petrochemical

  5. Strategies • Investment • Finance • Operational Management • Marketing • Technology • HR Management • Business Network

  6. Strategies • Investment • Diversification • A) geographical (China, Japan…) • Long term investment • E.g. Rising Populations of rising income, middle-class and working women

  7. Strategies • Long term goal • Not taking profit from country • Develop local talents

  8. Strategies • Industrially • Looking for large and growing markets • Must be important • Analyze internal resources and capabilities • Pioneer of new market

  9. Reinvestment and Commitment Strategies • Overall, If projects developed successfully Invest in small first

  10. Reason for success • Lower the risk of individual business • Geographic • Explore opportunities in new market • Industry • Explore new business opportunities

  11. Strategy • Finance • Keep all private • Recently, publicized more reports to invest by corporate equity

  12. Reason for success Financial • Closed financial position

  13. Strategy • Operation Management • Vertical integration • Backward integration • Seeds & Feeding  Chickens • Forward integration • Chickens  Food Processing & retails

  14. Reason for success • Vertical integration • Control supply and demand • Facilitate market coordination • Provide leverage • Create new market opportunities • Leading market share

  15. Strategy • 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

  16. Strategy • Technology • Acquire best technology • Improved to suit local needs • World class technology (partnership) • e.g. cooperation with Arbor Acres

  17. Reason for success • Be the pioneer in technological aspect • Acquire the special technology for the agricultural related industry

  18. Strategy • HR management • Each company has own autonomy • Flat Hierarchy • Attract and build good people • Promote personal development • Not family progressive

  19. Reason for success • Effective information flow • Quick response to problem and remedy immediately • High commitment of staff

  20. Strategy • Business network • Good government relationship • Partnership

  21. Reason for success • Obtain a wide range of resource from the partners

  22. Asian Crisis • Interest rate increase • Firms become illiquid • Diminishing markets • Lay off people

  23. Recommendations • Mainly diversification • Spin off losing parts • Develop based on company’s resources

  24. Recommendations - Better coordination between departments and companies within group - Make partnership with world-wide based company to improve global network

  25. Q & A

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