Strategy 'key to overseas success'

In a special lecture to the MBA students of Nation University, he said that before Banpu charges into uncharted waters, it would consider if its organisational structure was ready.
Those wanting to explore new frontiers must make clear their business direction – if it is better to stay at home or venture abroad.
Different companies have their own ideas and situations. Some might think that it is better to continue ploughing the local market, which is still on a fast-growth trajectory, but others might feel that it is time to go out to seek new markets.
Companies have to perform a check-up on their financial health and ask themselves what are they good at – for instance, marketing or production – and what their staff is well prepared to do.
“Wherever you go, vision and mission must be made clear first. Banpu uses these visions and missions to guide our overseas operations. We do not write only what we’ll do but also how we’ll do it,” he said.
Banpu believes that it should not play in too many industries at the same time or it might not be able to do its best in all of them, which require different sets of expertise.
“Our key success factor is doing what we can capitalise on with our strong expertise, and developing strong teams. Human resource is the most important factor,” he said.
Companies also have to be aware of the expectations of the countries they will invest in and have to fully comply with their regulations and understand their culture and norms.
They also have to understand the operating environment – from macroeconomic policies to the banking systems of the target countries.
Chanin said corporate culture was part of the company’s strategy to become a global company. After Banpu established footholds in Indonesia and China, it found that the work cultures of the two countries were different.
The company has since come up with Banpu Corporate Shared Values, or Banpu Spirit, to create a shared corporate culture for all its employees, regardless of where they work. Banpu started reinforcing the values with its staff in Bangkok in 2005.
Banpu Spirit consists of innovation, integrity, care and synergy. These shared values have been applied to its subsidiaries worldwide.
Banpu employs more than 6,000 personnel in six countries, of which about half are based in Indonesia, a third in Australia and the others in China, Mongolia, Thailand and Laos. About 400 staff are Thais.
Banpu was set up in Thailand in 1983 to operate coal mines and was listed on the Stock Exchange of Thailand in 1989. Since 2001, it has focused on becoming a leading coal-based energy player in the Asia-Pacific region.
The global economic slowdown has also opened up opportunities for other giant Thai companies such as PTT, Siam Cement and Indorama Venture.
Banpu operates coal and power plant businesses in Thailand, Indonesia, China, Australia and Mongolia.