Charoen Pokphand: Thailand's Largest Agribusiness Conglomerate

Charoen Pokphand: Thailand's Largest Agribusiness Conglomerate
Case Code: BSTR109
Case Length: 18 Pages
Period: 1921 - 2004
Pub Date: 2004
Teaching Note: Not Available
Price: Rs.500
Organization: Charoen Pokphand Group
Industry: Agriculture
Countries : Thailand
Themes: Business Environment
Charoen Pokphand: Thailand's Largest Agribusiness Conglomerate
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case examines the various challenges that the Charoen Pokphand Group (CP), Thailand's leading agri-business conglomerate, had to face during the period 1997-2004. It details the growth of CP from a small seed shop in 1929 into one of the largest companies in Thailand by the turn of 20th century. The case discusses the problems CP faced due to the 1997 Asian financial crisis and growing competition to its businesses in the domestic and international markets. Thereafter, it examines the restructuring efforts of the group - in terms of asset sales, focus on core businesses (food and agribusiness, telecommunications and retailing), debt management reforms, focus on corporate transparency and cost reduction - to tide over the crisis. It then details CP's globalization efforts, with special reference to China, and also examines the role of Dhanin Chearavanont, the Chairman and CEO of CP in steering the company out of the Asian financial crisis. Finally, it examines the future prospects of CP in the light of the bird flu epidemic of 2003, and various other problems on the operational and strategic fronts.

Issues

The case is structured to achieve the following teaching objectives:

  • How a diversified family-owned business in Asia manages its vast portfolio of businesses
  • The concept and benefits of vertical integration and explore the rationale for diversification of businesses

Contents

Keywords

Challenges, Charoen Pokphand Group, CP, Thailand, agri-business conglomerate, period, 1997-2004, small seed shop, 1929, 20th century, problems, CP, 1997, Asian, financial crisis, competition, domestic, international markets, restructuring efforts, asset sales, focus, core businesses, food, agribusiness, telecommunications, retailing, debtmanagement, reforms, focus, corporate transparency, cost reduction's, globalization efforts, China, Dhanin Chearavanont, CEO, future prospects

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