SWOT Analysis
Strengths
- The company has a long tradition of beer making.
- The company has an international outlook in its operations owing to involvement of the Germans in its inception (Arson & Gray 2011).
- The company has a significant market share in China.
- The company has strong financial health that will make it easy to raise the capital for the expansion to Thailand (Bryman & Bell 2011).
Weaknesses
- The company has never done any production outside China. It lacks international experience.
- The company may have to pay heavy import duties if it does not manage to source all raw materials in Thailand.
- The company does not have any business relations in Thailand. This will increase the cost of establishing the company (Dalic 2007).
Opportunities
- The beer market in Thailand has several international brands such as Carlsberg this shows that the market welcomes foreign beer brands.
- Thailand is generally a tolerant society, there should be no cultural backlash against the company (Kerzner 2010).
- Production in Thailand is better that importing ready made beer in Thailand because of heavy import duties on imported beer.
Threats
- The company will be in direct competition with establishes beer manufacturers and brands in Thailand such as the Boon Rawd Brewery, makers of Singha beer.
- The company will be competing with other international brands that have established themselves in Thailand.
- The company risks making huge losses in Thailand if its market entry strategy flops because of the size of the investment it plans to make.
- The Beer market in Thailand is already very saturated, creating brand space will be challenging (Kerzner 2009).
Scope Statement
Project Justification
- Tsingtao Beer has an international appeal.
- Tsingtao Beer Co Ltd has the financial muscle to finance the expansion to Thailand.
- Thailand has the raw material needed to produce the Beer locally. Therefore the beer will not attract high import duty compared to exporting the brand to Thailand.
- The Beer will enjoy access to markets that have trade agreements with Thailand.
Scope
- The project will include the following elements:
- The establishment of a brewery in Thailand.
- The identification of sources of raw material and the securing of supply contracts with all the potential suppliers.
- The development of a marketing strategy for market entry.
- The securing of licenses, trade permits and all regulatory approvals for beer brewing and marketing in Thailand.
Deliverables
- A fully functional beer brewery in Bangkok.
- Service and maintenance contracts with suppliers.
- Product supply contracts with rice farmers.
- Marketing Strategy.
- Licenses, Permits and regulatory approvals necessary for brewing operations in Thailand.
Project Exclusions
- The Project will not include the following:
- Marketing activities of the brand within Thailand (The project will only develop the marketing strategy, but will not implement it).
- Land acquisition and servicing (The company will only start this project after leasing a site. This role will be managed independently of the project).
- Construction of access roads (Thai authorities will be expected to handle this aspect as an FDI incentive).
Constraints and Assumptions
- The constraints facing this project are:
- The project has a fixed budget.
- The brewery must be operational before December 2013.
- The assumptions made in this project are:
- The company will not experience lengthy delays in getting approvals from Thai authorities such as construction permits, business permits and other licenses.
- The company will find all the raw materials it needs for beer production in Thailand.
Work Break Down Structure
- Brewery Construction:
- This portion of the project will deal with the design, construction and commissioning of the brewery.
- Marketing Strategy development:
- The marketing strategy will address the branding, market entry, and market sustainability.
- Business Processes Contracts:
- This portion will address all supply side contracts, distribution contracts, licensing, and regulatory approvals.
Stakeholders
- Stakeholders Identification:
- Tsingtao Beer Company Shareholders.
- The Chinese Government.
- The Thai Government.
- The Bangkok Local Authority.
- Beer Customers in Thailand.
Network Diagram
The network diagram below shows the critical path of the project.
Brewery Construction (Critical Path)
- (1) Start
- (2) Architectural Planning
- (3) Land Survey
- (4) Obtaining of Construction Permits and Regulatory Approvals
- (5) Retaining Contractors
- (6) Construction Phase
- (7) Handover of Construction Project to the Company
- (23) Finish
Marketing Strategy Development
- (1) Start
- (10) Marketing Research
- (11) Market Analysis
- (12) Market Segmentation
- (13) Branding Decisions
- (14) Development of Marketing Objectives
- (15) Action Plan
- (23) End
Business Process Contracts
- (1) Start
- (17) Identifications of Rice Suppliers
- (18) Identification of Product Distributors
- (19) Obtaining Trade Licenses from Government
- (20) Obtaining Permits from Alcohol Regulators
- (21) Environmental Assessment
- (22) Identification of Service Contractors
- (23) End
References
Arson, EW & Gray, CF 2011, Project Management: The Managerial Process, McGraw Hill International, New York, NY.
Bryman, A & Bell, E 2011, Business Research Methods, 3rd edn, Oxford University Press, Oxford.
Dalic, T 2007, Globalisation of Marketing Strategies in Light of Segmentation and Cultural Diversity, GRIN Verlag, Norderstedt.
Kerzner, H 2009, Project Management: A Systems Approach to Planning, Scheduling and Controlling, 10th edn, John Wiley and Sons, Hoboken, NJ.
Kerzner, H 2010, Project Management: Best Practices – Achieving Global Excellence (2nd Edition), Wiley, Hoboken, NJ.
Project Management Institute 2003, A Guide To The Project Management Body Of Knowledge, Project Management Institute, San Diego.