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
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Charoen Pokphand GroupCharoen Pokphand Group
Group C: Angus
Karen
Karina
Janet
Simone
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Agenda
Background
Strategies
Asian Crisis
Recommendations
AgendaAgenda
1. Background2. CP’s strategies3. Reasons for success4. Influence of Asian
Financial Crisis5. Recommendations
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Agenda
Background
Strategies
Asian Crisis
Recommendations
BackgroundBackground
Begins as animal feed business
Based in Thailand, quickly developing Southeast Asia and China
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Agenda
Background
Strategies
Asian Crisis
Recommendations
Organization ChartOrganization Chart
CP GROUPCP GROUP
Aquaculture
Seeds &Fertilizers
Real estate
International Trading
Wholesales &retails
Agriculture
PetrochemicalManufacturing
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Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategiesStrategies
Investment Finance Operational Management Marketing Technology HR Management Business Network
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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
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Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategiesStrategies
–Long term goal»Not taking profit from country
»Develop local talents
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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
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Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategiesStrategies
–Overall,
Invest in small first
If projects developed
successfully
Reinvestment and
Commitment
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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
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Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
Finance–Keep all private
–Recently, publicized more reports to invest by corporate equity
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Agenda
Background
Strategies
Asian Crisis
Recommendations
Reason for successReason for success
Financial–Closed financial position
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Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
Operation Management–Vertical integration•Backward integration–Seeds & Feeding Chickens
• Forward integration–Chickens Food Processing & retail
s
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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
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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
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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
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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
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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
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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
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Agenda
Background
Strategies
Asian Crisis
Recommendations
StrategyStrategy
Business network–Good government relationship
–Partnership
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Agenda
Background
Strategies
Asian Crisis
Recommendations
Reason for successReason for success
Obtain a wide range of resource from the partners
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Agenda
Background
Strategies
Asian Crisis
Recommendations
Asian CrisisAsian Crisis
Interest rate increase Firms become illiquid Diminishing markets Lay off people
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Agenda
Background
Strategies
Asian Crisis
Recommendations
RecommendationsRecommendations
Mainly diversification–Spin off losing parts
–Develop based on company’s resources
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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
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Q & AQ & A