cpffdippt-130710062429-phpapp01 (1)

Embed Size (px)

Citation preview

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    1/57

    Charoen Pokphand

    Food

    Kitchen of

    (FDI)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    2/57

    Kitchen of

    Foreign DirectInvestment

    Kitchen of

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    3/57

    ha t is FDI?

    Internationalization strategy

    Developed countries will benefit from natural resource, cheap labor, and avoid trade barrier.

    Developing countries will benefit from capital,knowledge and technology.

    Does not include stock echange investment

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    4/57

    !orizontal FDI

    "ertical FDI

    #onglomerate FDI

    Types of FDI

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    5/57

    ! orizontal FDI

    Firm will invest in the same business as the firm does in their own countries.

    $ample% &oyota factory in 'entucky, (nited )tate

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    6/57

    Forward and backward In forward vertical FDI, the firm will play a

    role as a supplier and send finished goods through subsidiaries or dealers to host countries.

    $ample% "olkswagen sell though many car dealer instead of using only one main dealer.

    "ertical FDI

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    7/57

    Forward and *ackward In backward vertical FDI, the firm will inves

    t in the industry that support their business.

    $ample% Ford #ompany build engine facto

    ry in +eico in order to decrease their cost.

    Vertical FDI

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    8/57

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    9/57

    + ethods of FDI

    reenfield

    *egin everything from zero$% *uying land

    +ergers and -cuisitions /oining between two firms

    $% *uying local firm asset

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    10/57

    0ros 1 #o ns of FDI

    0ros For developed countriesDecrease cost and increase profit

    For developing countries#apital, knowledge and technology

    #ons &he host countries may lose their natural reso

    urces because of non strict laws.

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    11/57

    $ffects of FDI

    )timulate nation economy

    )tability of FDI

    )ocial development

    Infrastructure development and technology transfer

    2#rowding in3 and 2#rowding out3

    )cale and pace of investment

    )kewed distribution

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    12/57Kitchen of

    Company Prole

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    13/57

    *rief 4verview

    $stablished in 5678

    -gro9industrial *usiness#ore *usiness

    -nimal Feed

    Farming

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    14/57

    &w o + ain 4 perat ions

    &hailand +anages all operation in &hailand

    Distributes in domestic4verseas

    4verseas 4peration in 55 countries

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    15/57

    : + ain 0roduct #ategor ies

    Feed

    Farm *reeding, Farming, and basic meat proces

    sing

    Food

    )emi, fully cooked meat, and frozen products

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    16/57

    0rodu cts of #0F

    #onsumer products ;eady9to9eat products

    ;eady to cook products Fresh products

    -gricultural products Feed *reed

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    17/57

    #onsum er 0roduct

    ;eady9to9eat1 ;eady to cook products -ppetizer, and ;eady meal

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    18/57

    Fresh 0roducts #hicken

    $ggs

    Consumer Product

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    19/57

    -gricultural 0rod uct

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    20/57

    -gricultural 0rod uct

    Feed > Feedmill plants

    !igh ?uality Feed

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    21/57

    -gricultural 0rod uct

    *reed @FarmA

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    22/57Kitchen of

    ReuirementsConsidering FDI

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    23/57

    Factors to # onsider

    -ssessment of internal resources

    #ompetitiveness

    +arket analysis1 $pectation

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    24/57

    -ssessm ent of Internal ;esour

    ces

    Internal resources

    Internal supportDomestic performance

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    25/57

    #ompetit iveness

    #ompetitor !ow well they do

    +arket share#ompetitive advantage

    #omparison

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    26/57

    + arket -nalysis 1 $pe ctat ion

    +arket research

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    27/57Kitchen of

    CPF!s "istoricalDevelopment

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    28/57

    # aroen 0okp and ,roup

    Found by #hia $k #hor and #hia )eow !ai in 56B5

    )tarted a small shop2#hia &ai #hung3

    $panded *usiness to !ong 'ong, #hina, +alaysia

    and )ingapore

    International Trading(#$%#$')

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    29/57

    In 56C, /aran started feed business knownas 2#haroen 0okphand3.

    &hai $conomic Development 0lanDhanin worked for the governmentEs slaug

    hterhouse @56C8956=:A

    eneral manager

    #$4

    Mr. DhaninChearavanont

    nimal Feed(#$'$*+)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    30/57

    0oultry farming

    /oint venture @=>%>A with -bor -cres

    2&he contract farming system3.#0 became a maor player in agro9indust

    ry

    Integrated gro&Industry(#$*+$*$)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    31/57

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    32/57

    0.00

    100.00

    200.00

    300.00

    400.00

    500.00

    600.00

    700.00

    800.00

    1994

    199

    5

    199

    6

    Frozen Shrimps Exported (1994-1997) (Million US$)

    Source: !n" o# h!il!nd

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    33/57

    )ausages 1 +eatballs

    2#hester ,ri l led3

    ) rimp Farming

    )iam + akro 1 7955

    Infrastructure )ector

    #able &" Getwork

    Future Integration , Diversication(#$-+s&Present)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    34/57Kitchen of

    CPF!sInternational

    ./pansion

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    35/57

    International $pansion

    #0F invested in 55 countries around t e worl

    d%

    &urkey&aiwan

    #hina

    India

    Indonesia

    0hilippine

    +alaysia

    "ietnam

    ;ussia$ngland

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    36/57

    )trategy - maor food producer in the world

    $pand distribution channels

    - country that has high rate of population

    ;esearch and development

    International ./pansion

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    37/57

    +ain 0roducts

    #hicken feed

    *reed farming, livestock farm and meat process manufacturer

    semi9cooked food and ready9to9eat

    International ./pansion(Turkey)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    38/57

    &he biggest and most successful nation of #0FEs FDI is in &aiwan, called 2#0$3.

    4ne of the leading manufacturers in &aiwan

    ain maor market shares

    2;eady9to9eat3 is very popular

    International ./pansion(Tai0an)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    39/57

    +r.Dhanin #hearavanont stated that %

    International ./pansion(China)

    CPs investment in China focuses mainly uponagriculture. Whether it is producing animal

    feed, or raising livestock such as pigs, thelatest technology and management systemsare utilized. (Dhanin, 2011)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    40/57

    !ighest rate of population and potentials.

    +ain products are feed, farm and food.#0F ust took over #00 @)econd largest m

    arket shares in #hinaA and become the

    maor shareholders @7.58HA.It will boost the net profit and enables gr

    owth in the future.

    International ./pansion(China)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    41/57

    )econd largest rate of population.

    overnment supports foreign investors.

    +ain products are feed and farm.#0 brand in India is well9known

    &rade with local wholesalers and retailer

    s

    International ./pansion(India)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    42/57

    )ome products in domestic consumption,supplies are less than demands.

    International ./pansion(India)

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    43/57Kitchen of

    Characteristics tothe 1verall 2ro0th

    and Internali3ationProcess

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    44/57

    Fully9Integrated 0rocess

    (nderstanding +arket

    Finding ood )trategic 0artner

    Characteristics

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    45/57

    &he ability to integrate everything from feed material production to retail distribu

    tion channels.

    Fully Integrated 4usiness

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    46/57

    Fully Integrated 4usiness

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    47/57

    Fully Integrated 4usiness

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    48/57

    (nderstand markets in developing count

    ries #reates opportunities

    Invest in developing countries

    +arketing and distribution strategy

    2'now9!ow3 2'now9What3

    5nderstand 6arkets

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    49/57

    7trategic Partners

    -merican agricultural multinational 2-bor -cres3 +odern technology

    Import chicken breeding stock from ()-

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    50/57Kitchen of

    1verseaInvestment Risks

    R I S K

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    51/57

    Foreign countriesE rules and regulations

    $conomic conditions

    0olitical changes

    +inimum wage

    Foreign echange

    $tc.

    1versea Investment Risks

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    52/57

    Investment 0olicy% #ontrol and Follow9up system -ppointments of ;epresentative of +anaging Direct

    or and Finance eecutive

    #onduct feasibility studies thoroughly $nsure that the investment is profitable and it is wo

    rth the risk.

    +eetings in &hailand with 4verseas operation management teams @$very = monthsA ;eviewing performance and updating plan.

    Risks 6anagement

    8"igh risk9 "igh return:

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    53/57

    Kitchen of

    1perating Results

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    54/57

    ThailandOperation

    OverseaOperations

    1 i R l f . h

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    55/57

    1perating Results of .ach4usiness ;ine

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    56/57

    Conclusion

  • 7/24/2019 cpffdippt-130710062429-phpapp01 (1)

    57/57

    Thank

    You!