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Case Study

SCG: An ASEAN sustainable business leader

By Balaji S. Chakravarthy and Pallivathukkal Cherian Abraham

19 pages

October 2013

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Reference: IMD-3-2384

SCG was the largest industrial conglomerate in Thailand in 2013. The firm had radically transformed itself after the Asian financial crisis of 1997, focusing on its core businesses of cement and building materials, chemicals and paper. Kan Trakulhoon led the task force that had engineered that transformation. He was appointed the company’s CFO in 2003 and CEO in 2006. Kan reaffirmed his commitment to the two key strategic initiatives that he had launched as CFO: (i) transform the company from a commodity to an innovative player with high value added (HVA) products and services, and (ii) diversify its presence across the ASEAN region. Indeed by 2013, SCG had made impressive strides toward both goals. Contributions from HVA products and services had jumped to 34% of revenues in 2012 from a low of 4% in 2004; and revenues from ASEAN operations increased from 3% in 2006 to 8% by 2012. Exports to ASEAN countries accounted for another 10%. As Kan led the centennial celebrations for SCG, he was aware that there was more to be done before his planned retirement in 2016. Having successfully reset the company’s strategy, he now focused his attention on strengthening its talent pool and organizational culture.

Learning Objective

To understand the key components and major challenges in transforming a large organization, especially as related to strategy, culture and human resources.

Keywords

Transformation, Culture, Human Resource Management, Cement, Construction Materials, Paper, General Management, Strategy

Settings

Thailand
1997-2013

Type

Field Research

Available Languages

English

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