Charoen Pokphand: Thailand's Largest Agribusiness Conglomerate
 |
ICMR HOME | Case Studies Collection
Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
||||
EXCERPTS Contd...Inching its Way Out of the CrisisBy 2003, CP had successfully left behind its financial problems and was growing rapidly (See Exhibit II). Its businesses included agriculture, aquaculture, fast food, convenience stores, retailing, telecom, auto parts, international trading, petrochemicals, real estate, insurance, logistics and pet foods (See Exhibit III). The group had established itself as one of the largest animal feed and shrimp producers in the world, with annual sales of $13 billion. CP had operations across many countries in Asia, EU, North America, South America, Middle East and Africa (See Exhibit IV).
Dhanin's Leadership SupportEarly in his career, Dhanin had realized that with economic development in Thailand and other developing countries, meat consumption would also grow rapidly. This idea was based on the simple principle that economic development would lead to an increase in the income and living standards of people in these countries. This formed the basis for CP's entry into the animal-feed and chicken breeding businesses.
CP in 2004 - Facing a Host of ChallengesJust as the group began to stabilize and reap the benefits of its restructuring initiatives, the avian flu catastrophe struck. In February 2004, CPF reported a 14% decline of baht 2.42 billion in the net profit (on revenues of baht 83.1 billion) for the year 2003. The company attributed the decline to the Thai government's new stringent food safety regulations (such as prohibiting the use of chemicals to redden pork) and the avian flu. CPF also cut its sales growth target for 2004 by 15%, as flu fears continued to hurt its sales in the domestic and international markets... Exhibits
Exhibit I: CP - Worldwide Poultry Plants |
Case Studies Links:-
Case Studies,
Short Case Studies,
Simplified Case Studies.
Other Case Studies:-
Multimedia Case Studies,
Cases in Other Languages.
Business Reports Link:-
Business Reports.
Books:-
Textbooks,
Work Books,
Case Study Volumes.