M&A_Assignment1_CPAll_Makro.pdf - Assignment 1 Acquisition of Makro by CP ALL FINC D55 Mergers Acquisitions Professor Eduard M Sprokholt Presented

M&A_Assignment1_CPAll_Makro.pdf - Assignment 1...

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Assignment 1 Acquisition of Makro by CP ALL FINC D55 Mergers & Acquisitions Professor Eduard M . Sprokholt Presented By Ms . Phatheera Nicknipa D590015 Mr . Kantaphon Klinjui D600010 Ms . Dolpapat Thiangchanya D600011 Ms . Hataithip Vittayawacharin D600027 Ms . Tunchanok Winaivorrasakul D600039
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A. Why buy? ( please use no more than a single page ) Is CP ALL the best owner ? Make sure to use the relevant conceptual frameworks Helpful Hint : Apply the sources of best ownership as presented in the McKinsey book . CPALL could be the best owner of Siam Makro as following aspects; Unique links with other businesses The most common way to add value for the synergies is to link with other businesses within the portfolio . After CPALL and Siam Makro s Merger and Acquisition, both companies could share their resources with each other in order to reduce costs and benefit from Economy of Scale . For instance, 7-Eleven could use 57 warehouse of Siam Makro as the additional distribution centre which reduce the warehouse expenses and improve the logistic network of CP Group . Furthermore, Siam Makro branch shall be the new distribution channels for CPF which is one of the world s leading listed agro-industrial and food conglomerates providing fresh, frozen food and ready meal products . Distinctive skills With regards to distinctive skills in any number of areas across the business system, the CPALL was the leader in wholesale and retail sector of Thailand supported by the number one ranking with the highest market share and its earning 310,000 Million Baht per year making it the 3rd ranking in Asia excluding Japan . From all these reasons could enhance its bargaining powers and make it a monopolist taking control the whole market . For example, Better Insight / Foresight Local owner like CPALL has better insight, who know how a market and industry will evolve and can then capitalize, expand and develop an innovation, of thai people more than SHV Holdings . By leveraging CPG s expertise and understanding of market trend in Asia as well as its international presence, the Company could fully exploit its Makro brand to capture robust growth in new markets domestically and especially internationally . Makro could leverage CPG s platform to effectively penetrate unfamiliar markets and prompt to every opportunity, which may arise as a result of the launch of the AEC and CLMV . Distinctive Access to Talent, Capital, Government, Suppliers and Customers In emerging markets where running a business is complicated in underdeveloped capital markets, and high levels of government involvement, the diversified conglomerates like CPALL could manage itself as the best owner of Makro because of the following reasons . Firstly, it had better access to suppliers with high bargaining power . Secondly, seriously investing to improve its human capital especially through Panyapiwat institute of Technology, CPALL would enable Makro to accelerate producing high quality human resource sufficiently and quickly enough to support its growth plan .
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  • Summer '19
  • Siam Makro

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