The paper "Culture Issues for Successful Operation for an International Enterprise - Charoen Pokphand Group " is a great example of a business research proposal. Charoen Pokphand Group (CP) is one of the largest companies in Thailand with its operations spanning over 250 companies in more than 20 countries around the world. Most of its operations are in Malaysia, Indonesia, Cambodia and India. CP employs over 100, 000 workers and has sales of $13 billion. CP group strongly believes in diversification hence its ambition to expand to all regions internationally and as such has adopted the slogan “ Kitchen of the World. ” It is a completely vertically integrated agriculture-to- a retail business empire which includes animal feed production as well as poultry, egg and livestock production (Charoen Pokphand Group, 2004). For 2010, CP anticipates its net profit and sales to increase by a further 10 per cent due to expansion efforts into foreign investments as well as distribution channels and ready-to-eat food products (CP All ICC, 2010).
For 2009, the company’ s net profit increased by 226 percent and the sales revenue increased by 6 percent from 2009 to record a profit of 10.19 billion baht and sales of 165.06 billion baht.
A large part of this success was due to profitable overseas earnings in markets such as Turkey, Russia, Philippines and India. Foreign operations are expected to contribute around 23 per cent to the overall kitty, an increase of 19 percent of 2009 and this is very significant considering that domestic sales are down by 64 per cent In additional, the company’ s exports have been very profitable, increasing from 15 per cent in 2009 to 19 per cent in 2010.
This is due to its renewed focus on aquaculture and food as opposed to livestock which has recently been affected by disease and trade barriers. CP intends on investing 6 billion baht on expansion and half of this will be invested in overseas operations particularly in the area of broiler production in India, pig production in Russia pig farms in the Philippines and finished foods in Turkey. These expansionist plans are also planned for Africa, with Tanzania and Kenya being earmarked as the first countries of operation in the region.
The main reason for this success in expansion abroad has been its long-standing experience in the industry and its vast political connections worldwide which have caused it to become the partner of choice for other companies such as its motorcycle manufacturing operating which is in partnership with Honda of Japan (Cohen, 2010). The UK food industry is a highly profitable one and if CP group can penetrate it, they are sure to reap the financial benefits. According to UK Trade and Investment (2007), the UK has one of the fastest-growing food and drink markets in the world.
This is mainly due to research in the nanotechnology and chemistry sectors which has subsequently fueled innovation in the UK food and drink industry in the areas of health and convenience foods and hi-tech packaging to name but a few. As a result, the UK food and drink industry employ about 500, 000 workers and generates sales of £ 70 billion. As of 2007, the UK chilled food market was worth £ 7 billion and accounted for 60 per cent of the total European chilled food market while the UK organic industry alone was estimated to be valued at about £ 1.2 billion a year.
Evidently, the UK food industry is one that any forward-thinking organization would be keen to invest in.
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