Critically Evaluate of the Culture Issues for Successful Operation for an International Enterprise in Food Industry (Case Study Sample)

INSTRUCTIONS
TOPIC: Critically evaluate of the culture issues for successful operation for an international enterprise in food industry: Case study CP Group
Summary:
Number of pages:19Academic level:University, Master'sReferencing style:HarvardClient country:United Kingdom (UK English)
Assignment extract:
1.A clear definition of the research problem and the objectives of analysis;2.A clear description of the research strategy with related aims and objectives;3.A detailed list of the RELEVANT HYPOTHESES (if appropriate)4.A research plan with PROPOSED RESEARCH METHODS, SOURCES OF INFORMATION to be used and stages of conducting the dissertation.Consequently, the dissertation proposal will almost always include or present all or most of the following features:1.the background/nature of the research problem(s)/question(s);2.the research objectives that flow from the research question(s) identified;3.the research plan (schedule of activities, outcomes, processes);4.as required and appropriate, it will also indicate planned:-Data sources and collection methods-Sampling methods-Research instruments/tools (draft questionnaires etc.)-Methods of data analysis-Description and justification of planned research methodology.
RESEARCH PROPOSAL: A CRITICAL EVALUATION OF THE CULTURE ISSUES FOR THE SUCCESSFUL OPERATION OF AN INTERNATIONAL ENTERPRISE IN FOOD INDUSTRY: CASE STUDY CP GROUP
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(Student Name)
INTRODUCTION
General Background
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- 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 have 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 Philippines and finished foods in Turkey. This 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 has 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 employs 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.
Problem Statement
Despite the evident success of the company both locally and in most of its overseas operations, CP Group has failed to establish a formidable presence in the UK specifically and in Western Europe generally. This research shall thus be concerned with CP’s expansion efforts into the particularly with regards to the cultural differences between Thai and British culture. The author thus proposes to conduct a research based on the cultural issues faced by the Thai enterprise CP Group in its bid to establish an international presence in the food industry.
In addition, CP has a major competitor in the form of China as the international business world, including industry heavyweights operating on a global scale, rushed into what was fast becoming the world’s largest single market. The fact that an Asian nation such as China has managed to establish such a major presence in the global food industry serves as a major challenge to CP and lessons can be learned from China’s global strategy.
Research Questions
The central research question of this study is: what are the cross cultural issues that a Thai company such as CP Group need to overcome in order for it to become successful in the UK? However, in order to answer this central research question, the following major sub-questions will be addressed:
What are the cultural differences between Thailand and the UK?
How has CP Group been able to become successful in countries such as Russia which are culturally different?
What are the keys to its expansionist success in its overseas operations?
What are the characteristics of the UK food industry?
What are the keys for success in the UK food industry generally?
What foreign food organizations/ companies, if any, have achieved success in the UK food industry?
How has China managed to become a world leader in the food industry despite being an Asian country?
2.1RESEARCH OBJECTIVES
2.1 a Secondary Objectives
The secondary objectives of this research are two- fold. Firstly, the author has a keen interest in the international food industry and wants to develop a career in it as a person of culture living in a Western country. This case was thus appropriate as it deals with a company that seeks to become the “Kitchen of the World” by having a presence in each corner of the world, including the UK. Secondly, the author seeks to discover ways in which a Thai company such as CP can overcome cross- cultural issues with the UK and set up a successful presence therein. If successful, the findings of the research will serve as template for other foreign companies seeking to expand into the UK or any other culturally different country.
.a Primary Objectives
There are several objectives this research seeks to achieve. For one, the major research objective is to discover the possibility of success of a foreign food company such as CP in a country such as the UK. This comes against the backdrop of CP’s lack of a significant presence in Western Europe with the company only having a headquarters in Germany and a mere representative office in UK. For a company that aims to be a "Kitchen in the world" and whose current ambition is to expand into the UK and European market, what challenges must it overcome and how will they accomplish it? In addition, this research aims to find out the reasons for CP Group’s great success in other countries such as Thailand China, Turkey and Vietnam. From studying the reasons behind this success, will it be possible to discover strategies that may be similarly replicated in the UK? Another research objective is to discover the importance of the food industry in UK in general. What are the unique characteristics of the food UK industry, what its net worth is and what is the presence of foreign food companies in the UK industry. What can the CP Group learn from the successes of local British food companies as well as the few foreign ones? A further key objective of this research is to find out the key to success for cross cultural management in general and for the food industry in specific. An additional objective is to find out the Did CP Group learn anything from UK market yet? The last objective of this research will be to discover the cultural differences between Thai and British culture. What does the company need to learn about British culture and in what ways will they need to adapt? 
Theoretical Background
Relevant Theories
There are quite a number of theories that have been derived from cultural anthropology and that deal with cross-cultural management that are useful for general business and management. The following theories represent the theoretical framework against which the proposed research shall be based on:
3.1.a Hofstede's Five Dimensions
It’s the most common theory of cross-cultural communication and according to this theory, every culture has to tackle a variety of questions that can be dealt with according to a five culture dimensions- individualism/ collectivism, uncertainty avoi...