Year 2014, Lessons Learned for Terry from the Dust
“Purpose: I read a Thai book that told the story of a smart and kind CEO from Thailand named Mr. Thanin Jearawanon. We will call him Thanin. In his book THE WAY TO SUCCESS, Thanin shares his simple ideas and experiences from his 41 years of work expanding the Charoen Pokphand (CP) into a leading business after his Chinese father founded it. Thanin says, ‘We could grow a large business, but we have to start from a small one.’ His book details CP’s start-up years, bright ideas and motivation for success, suggestions for managing people and thoughts about progressively managing a billion dollar business, including the Thai Seven Eleven’s core business strategy.” 
Thanin’s father Mr. Jear Exsore was a Chinese citizen who had an affinity for agricultural research. From a young age, Mr. Exsore experimented with all of the quality seeds in China. He became an expert in agriculture and moved to Thailand to start his business based on his expertise from the ground up. 
In 1941, Exsore was in China trying to explore new businesses. During the Second World War, he could not return to Thailand because it was under the control of Japan. There were too many risks in trying to return. He remained in China until the war ended.
Exsore’s first business in Thailand started with a small investment in a place much like a shack out of which he could sell seeds and other agricultural products from China. He had learned Chinese business practices from his ancestors. He began his business with his honesty, hard work and endurance. His love of agricultural research motivated him to find the highest quality of seeds from China. First, he started a seed distribution business. Then he stocked his store with all kinds of flower and vegetable seeds imported from China. His work illustrates a famous phrase, "Wherever trading is, there will be Chinese entrepreneurs." 
An innovative experiment was conducted by Mr. Exsore to produce fruits all year long. Normally a tree will produce its fruits for its season only. His agriculture labs found ways to produce fruits from the same plant year round. These techniques definitely made more revenue for farmers in Thailand and in the world. His store focused on "honesty, fairness and ethics." His reputation for providing the best quality of seeds from China spread to rural villages in Thailand. Like his reputation, his business continued to bloom. His store became a source for all agricultural products including fertilizer, insecticide and agricultural equipment. His research and innovation with all types of seeds, new breeding of livestock and all breeding of poultry, fish, shrimp, and other seafood were not the only reasons his business rapidly succeeded. He took care of his customers, providing them with the best service and products possible like Sam Walton’s stores in the US.
In 1950, Mr. Exsore won the award in an innovation research for product improvement from the Chinese government. He continued selling quality seeds and agricultural products from China for many years. Thanin writes,
His father had talent in technology more than him. Most people learned from someone’s experience and successes. But his father learned by doing with his talents in research and related technology since he was born. His father loved to observe, analyze and solve problems. He had only 6th grades. He knew how to raise the best type of chickens and they grew at their best. He used to raise chickens on his upper deck and feed them with fish mixed with rice. On the deck, there were no seashells, so he fed ground sea shells to the chickens before they laid eggs. Seashells had protein, calcium and calories. His chickens laid a lot of eggs after he fed them seashells. His father had the best visions in agricultural research.
In 1963, Exsore’s son, Thanin took his first job. Thanin was learning chicken farm technology two years prior to taking this job. In his career he hired honest, smart, and loyal Thai professors and managers to modernize his business to meet world standards. It became a golden era for CP from that point. He was beginning to work with complete, integrated chicken farms about which he learned from a US company, Arbor Acres. In 1971, he incorporated an Arbor Acres, Thailand for $125,000. Now his company produced and exported more than 50% of the chicken products in the world market. The CP was ranked in the top five of those companies producing food in Asia.
Thanin’s swim upstream approach made a difference in Thailand. When I was young, no Chinese stores allowed customers to return merchandise. That was the Chinese style of business. There was no reason to return merchandise. The CP was the first business in Thailand that let customers return merchandise, just like Sam Walton’s Wal-Mart allowed its customers to return items. That was the key difference that had never happened in stores in Thailand before. Thanin’s businesses were loyal to and took care of their customers. This swim upstream approach made their reputation #1 forever.
A bridge to a goldmine and opportunity in China: In 1979, the CP “Inter-Trade” moved to China, ten years before China opened its doors to businesses for all nations. This opportunity was the biggest stroke of luck for CP. Thanin’s parents, originally from China, were doing business in mainland China. Their children were making money in Thailand. During this time, the CP signed its first contract with China government. The CP performed at its best with honesty and loyalty. At the beginning, China was up and down; however, CP supported China’s government consistently. CP built the firm and strong bridge that China’s government was looking for. Since then, CP has earned the highest revenue of any business in China. At this time, China had over 1.3 billion people. CP could produce food to their utmost potential, send the food to China and feed all Chinese citizens with unlimited demands. Only the CP business in China could create unbelievable long-term revenue for them. What a gold mine!
The CP operates with the following philosophy: 
One corporate value: GIVE before TAKE.
Three CP original objectives, wherever they invest, are that they invest for the land, its people, and CP last. After it benefits the land and its people, it would automatically benefit CP.
Six core values: The goals: For the Land, for People & for CP, Speed and Quality, Simplification, Acceptance of Change, Innovation, and Integrity & Honesty.
CP has 13 business groups: 
1) Seeds, Fertilizers and Plant Fungi
2) Agricultural and food industries
3) International Trade
4) Marketing and Distributions
5) Plastic
6) Real Estate
7) Integrated plant systems
8) Animal feed
9) Animal Food Raw Materials
10) Telecommunications
11) Automobile industries in China
12) Financial Investment and Banking in China
13) Chinese traditional medicines
The CP has established more than 200 companies in 20 countries with over 200,000 employees and approximately $28 billion in revenues.
A golden bridge in China: The CP signed its first contract with China when China first opened its doors for companies outside to do business in China. China ranked the top 30 persons who have had an influence on China since it opened its doors to the world. Thanin ranked #4, and he was the only one outside China to be honored. In 2012, Thanin had a personal asset value at $8.7 billion.
The following are Thanin’s ideas and motivation for the CP’s successes.
Chapter 1 "The heart of business operation." Every business operation always involves problems and obstacles. His belief was executives who are committed and devoted to hard work and accept the challenge to solve both anticipated problems and obstacles would be successful. They have to think of the right timing, the right place and the right merchandise. They have to recruit the right people and select the right technology for their jobs. To grow agricultural business, they have to consider three things: consumers, farmers and employees. Consumers would buy from farmer’s and employee’s products. The rest would flow without problems. Production and sales require appropriate technology, market and capital. Remember, people from the poorest and the most ignorant backgrounds do not want to buy expensive, low quality merchandise. It is the same idea as "customers want more for less."
Chapter 2 "People and opportunity are the power of organization." Business growth is dependent upon its people. We have to recruit people who are capable, responsible and honest and who love to work and try to work. Successful operations rely on timing, opportunity and efficient management. Without qualified people, a business could not be successful. All involved people must have responsibility, diligence, endurance, honesty and a strong work ethic. Thanin’s belief was that the best growing company must continuously and tirelessly train young workers and its executives. Smart people will find others who are smarter than them. If we think we are smart, we may be foolish. Instead, if we admire gifted and talented people, they will give what they have to us. If we reject them, they will not share with us or teach us what they know. We must retain them. We must train can-do people more and more in our organizations. 
Thanin wants people to learn and to make decisions by themselves. He does not blame people who make mistakes which nicely illustrates the Chinese proverb, "Failure is the mother of success." People should not assume that they are smarter than others. For people who want to advance, they have to be ready and perform accordingly. Success follows people’s performance. We must perform. People who think that they are neither good nor smart often outperform people who think they are good and smart. A smart person without others’ support will not make progress. The one who can build a capable team will outperform all others. Smart people who do not have or cannot use people skills will fail. They must use people skills and train others. As a result, they will succeed.
Chapter 3 "Business expansion and building of executive teams." 
Why did CP grow much faster than normal? 
We hire and train our best can-do workers, understand business and understand that our consumers are our bosses. We produce what they want and make it affordable. Transportation, production costs and production location are important. The location of chicken and pig farms could help farmers sell their livestock’s manure to reduce production costs. We also use technology and management techniques to reduce farmers' costs. The most important thing we can do is help our farmers to expand their business with training and teamwork. If we do not expand and continue to grow, our executives and workers have no guarantee of advancement. Young workers would not be able to advance either. Thanin’s belief in looking 5, 10 and 20 years ahead would tell us to expand. If we do not open new companies, our people could not advance no matter how smart and capable they are. We have to create opportunities for all workers to grow with no boundaries. 
Creating opportunities for all requires business expansion which would reduce operation costs. Even if our businesses do not expand, other expenses such as people’s salaries would continue to increase. Who would pay for these expenses? Our consumers would end up paying for them. This is the reason why CP always seeks to expand its business. Sometimes we have to expand faster. It is up to necessity and market opportunity.
Why do we have 4-5 CP companies doing the same type of business? First, we create opportunities for 4-5 executives who will compete with each other. As a result of their competition, we would know who the best is. This would create opportunity, a mentoring process and an increase in executives’ capabilities. This competitiveness would allow them to learn from and consult with each other. If one company fails, the rest will ensure that the group survives. Capable executives hate to be controlled or directed. Therefore, we give them opportunities to perform and watch their progress closely. Successful executives require knowledge and the ability to make the right decision, long range vision, and workers' support. These executives would provide working policies from the top.
CP management offers opportunities to capable people. Only capable people can create jobs and revenue for CP. That is why CP loves to invite capable people to work for them. CP gives these people power, duty and opportunity and wants them to feel that they are business owners. If executives leave the company, CP finds out why as the company must blame itself and correct its mistakes. CP wants to retain all executives for the long term.
A question related to recruitment’s psychic? CP’s recruitment process for key executives involves a psychic check to see if potential executives have bad luck. Thanin does not agree with this. He believes in CP’s background and reference checking process. He has never become involved in details for this activity anyway. His personnel administrators know the process. Some companies use psychologists. But Thanin believes in past experience and sincerity. He believes in his executives. His executives are hardworking, responsible and honest. Their performance average is higher than that of executives of other companies. 
Thanin encourages all executives to express their feelings and ideas freely and he listens to them carefully. Thanin notes that his interaction with his executives allows him to place them in important positions that match their talents. Moreover, Thanin says that people should own more stocks when they move to higher executive levels. They should be owners and develop business as if CP were their own business. That is why CP has more than a hundred companies, and it cultivates an atmosphere where these businesses grow the best they can. CP gives them the power and support to perform to their highest potential. The more CP delegates its authority, the better the company’s executives will perform. This is why so many companies have been built within the CP business. If one company fails, the rest could hold. Diversification has ensured CP’s survival and growth as a whole.
Smart and capable people want to be given highly esteemed positions. If companies offer only one position, then opportunity to grow or advance is rare. It would be better that all people move up. In fact, capable people have large egos and hate to lose. Hence, CP allows 4-5 executives to compete so that they will improve their performances. The best one out of the five will be promoted to the top and the rest will accept the results. It is not enough to be capable, to work hard and to endure. Responsibility is the most important trait. People who are not responsible find it difficult move up. Honesty and responsibility are most important. Intelligence and capability follow. For those who are not smart, if they work harder they could become capable. Many capable people make mistakes. They should analyze what causes these mistakes. Some people blame others when they make mistakes. They assign their failures to others, an unfair practice. If those who make mistakes do not find out the causes and correct their mistakes, they will never be successful.
After CP presented policies to all executives, they could perform to their potential. First, executives commit to these policies and find out whether these policies are correct or not. If not, the executives share their observations with CP, and the company adjusts them so that they move in the right direction.  
Criteria used for selecting CP executives are as follows:
1) High sense of responsibility
2) Hard working or diligent
3) Endurance
4) Putting forth the best effort in every task
5) Unselfish
Besides the above, CP executives will take an opportunity to look at people’s strengths, forgive and not retaliate, find self-weaknesses and give more than take. Then they can assign their people’s strengths to the right jobs. If they cannot accept people’s strengths, they cannot trust others. Their employees have to succeed by themselves. If they refuse to work and succeed on their own, no one will want to work with them nor will they be given more important projects to work on. They will never be successful and will never advance to a higher executive level.
Chapter 4 "Leader expectation."
In his book, Thanin says, "Most large businesses had been developed by a few generations."  Larger businesses will have to be more transparent and more open. For large businesses, there are not enough family members to do the jobs. It forces companies to recruit qualified people from the job markets. Without forgiveness, team unity cannot be built within the organization. The company must give first and take later. If employers love their employees, employees will love their employers back. Similarly, if employers respect their employees, employees will respect their employers. Executives must know how to use people, get along with bosses and others, and train and mentor others. Responsibility is the number one trait that leads to success. 
When CP invests, the company does not think of what they will gain first. They first concerns are what their customers will gain, then what their community will gain and then what their employees will gain. Naturally, the company will gain much more later this way. Good executives know people’s strengths, are able to work for bosses and are able to assign the right jobs to people under them. Good leaders will not compare their strengths with other people's weaknesses. Good people will help poorer people which would help society be a more wonderful place to live. Good executives help the community first; good executives get what they want later.
Conclusion: If we do not help our community, our business will not grow but will atrophy instead.
Chapter 5 "An integrated system" is the most important tool for CP management. 
System development is a never ending process that includes accounting, finance, service and management. Cross training has been used to rotate executives at CP. They prefer a dynamic system which accepts change. A good system can handle dynamic job training, rotation and advancement. A good system will train and mentor top executives too. CP does not build only specific managers. Top executives not only take care of policy, training good workers and helping the community, but they also must manage all environments within the system.
The best company will challenge all executives and all workers to be a part of solutions and will not create any problems for the company. In the past, CP adopted "an agricultural integrated system” used in the US, a country with tough competition. The system has been built to reduce steps for marketing and to reduce the need for a middleman. CP had to change to fit Thai cultures. The system aided CP in producing quality products at lower costs which Thai people can afford. This system adapted from the US has helped Thai chicken farmers. In the past with the old system, one Thai farmer could raise 100 chickens. Now, the US system allows one Thai farmer to raise 10,000 chickens. Farmers’ incomes increase and the price of chicken is reduced. This 100 times productivity improvement for each farmer reduces cost per chicken allowing consumers to buy cheaper chicken. The US has used the system for a few decades, but CP made the integrated system work in Thailand in a short time. This presented Thai farmers with new opportunities to survive and grow. CP representatives recruit and train farmers. It has been a goldmine for Thai farmers since CP opened new doors for farmers to earn more revenue. Farmers have no risk; only investors have risks. Investors come and go. When all farmers produce as much as possible, CP could export to China and many countries continuously. This success integrated system has been great for developing countries that lack of technology, capital and market. They only have to provide land and labor.
Raw materials, markets and technology are important for most industries. For agricultural industries, time has been a major factor because success in raising animals and in growing vegetables depends on weather.  Baby chickens need food and water when they are born. CP has to plan exactly when a mother will have chicks, so that CP may deliver the baby chickens to farmers. The farmer has to sell all chickens in time to clean and to clear places for upcoming babies. If CP does not sell and empty the place on time, the babies cannot move in and chicken meat manufactures will have to wait and lose revenue. When no chickens are fed into the machine, 500-600 workers have no jobs. Wholesale chicken sellers and retail stores have no income. People have no chicken to eat. The integrated system is a solution for all partners. Fairness to all is very important for farmers, investors and consumers.
When CP first adopted an integrated system from the US, we imported chicken breeds from the US too because US chicken breed types grow much faster than Thai breed types.
CP had to build a system with quality farms, quality food for chickens, and an efficient delivery system. A stable price control system could keep all parties doing business with CP. Even price control was installed and has functioned well. Before, some farmers were bankrupt or were poor. With the changes CP made, farmers became rich. However, they did not know how to control their budgets, and many of them overspent. This is the main problem for Thai farmers. After they went bankrupt, they had to borrow money with high interest rates. They ended up selling their land. It was unfortunate.
CP provided technology. CP also always promoted a policy not to take advantage of either farmers or consumers. If CP took all money from consumers, how could their farmers survive? Adopting complete integrated technology has been CP’s major productivity improvement. In addition, CP developed better breeding, better animal food formulas, raw material development, sound transportation, innovative research, effective management, cost reduction, food processing factories, and food distribution.
Fairness is required for all the activities CP has done. A system of fairness would encourage new investors to do business with the company continuously. They could replace the ones who bankrupted. The cause for bankruptcy was incorrect spending, not from investing in farms. Farmers had an income of twenty thousand baht a month and wanted items that were too expensive, requiring, for example, a thirty thousand baht payment per month. How could they survive? Farmers’ failures are from buying new televisions, new refrigerators and new automobiles that they did not need.
In fact, the Thai government could develop the country by teaching all farmers how to manage their budgets and spending for their families. Then they could balance their detailed expenses and make sure that they do not overspend. In the past, CP planned ahead 5 to 10 years. If CP finds a place that would be a good location for a chicken farm, the company then finds a local lady farmer who owns land. Next, CP talks to her parents. Then CP builds a little home. Their parents often live with her. CP trains the lady but does not teach her parents. 
Why does CP train a lady?
A lady farmer is more responsible than a man. CP believes this is 60% true. If a man raises a farm, he is more likely to engage in nonproductive activities such as drinking, gambling and fish fighting. If CP trains a man after he gets married, he would move out to his new place. CP wants to train and keep its knowledge at a local village. CP will follow a committed lady to her home and build chicken farms on her land. Two reasons why CP trains ladies are: (1) Ladies do not have to pay for training. After she raises chickens, she shares the profits and uses the profits to invest more and more. (2) CP believes that ladies do better jobs than men.
If CP employees raised chickens, they would have to pay employee benefits and welfare which costs much more for years. CP reduces its workload this way as well. By providing classrooms and training to farmers, CP receives revenues back from those farmers. It is a win-win business. It solve the nation unemployment problems too.
In a pilot project in a Thai town “Sriracha,” CP trained more than 200 farmers. One farmer had one baht profit more than the others. The farmers used the same breed of chickens, the same type of food and the same environment. But the farmer who profited more than the others was cleaning the nets inside the chicken houses. It improved the air circulation allowing chickens to breathe much better. CP printed the lesson learned and sent it to all farmers. Another lesson CP learned was in the summer a farmer made chickens run every hour. When chickens run every hour, the heat distribution improves, and the chickens exercise and eat more food and are healthier. When chickens run, they do not crowd each other thus lowering the death rate too. These lessons have helped all farmers.
The highlight of CP’s integrated system was that they taught farmers, and farmers taught CP back, and investors took the risk. CP encouraged capitalists to risk their capital. If capitalists and CP could not sell chickens or ran out of Thai and Chinese markets, they would have to find markets in other countries such as Germany, France or Japan. If CP puts pressure on farmers, it would be unfair to them because they do not have money to lose. Risks should be with capitalists and CP. CP business has helped all involved parties and the Thailand economy. CP requires farmers and investors to cooperate in the CP integrated system. Some people have mentioned that the system may create conflicts. Nevertheless, CP believes that any business can build an integrated system with no conflict. The CP system does not create any problems for Thailand at all.
CP constantly planned ahead for farmers to produce all year long and guaranteed pre-orders. All farmers, investors, consumers, CP and people involved in the system became winners. CP does not require a middleman at all. It allows farmers to produce for their market, and buyers may connect to farmers directly. This system does not require any agents. Its advantages are to reduce capital cost and expenses.
For the integrated pig farm system, besides connecting to markets, CP asks corn farmers to use pig manure for fertilizer and asks pig farmers to feed corn products to their pigs. CP buys only needed pig food. All will make money, but CP assures reliable pre-purchasing markets.
Today, CP has confidence and knows that agricultural business is tremendous because Thailand is an agricultural nation. Agricultural businesses will expand and become sources of unlimited revenue for Thailand forever because of CP’s complete integrated systems.
Chapter 6: Becoming a “Leading Edge and Current Technology” Leader.  
The best ingredients for CP’s successes are not intelligence and capability. Rather, CP has succeeded because it has had the opportunity to adapt the complete system with applications of technology. CP searched for applications of technology from developed countries which matched its business niches. When they found a best system with appropriate technology that matched their needs, they signed the license and paid for it by using it to reduce costs, to improve quality and sell their affordable and high quality products to consumers. 
It would take a few decades and a lot of money for an underdeveloped country to produce a best system with technology. It is better to search for a readymade system using technology from other countries. It will benefit both production and marketing. Now CP operations are very successful with progressive and best technology to produce quality products and services for the world. CP has focused on high productivity and sales to compete throughout the world.
Even though CP’s business is in a developing country, its operation is not underdeveloped. CP has a variety of technologies from developing countries such as the US and other counties for its businesses. And CP improves the capability of those technologies. Now its animal food systems are of a world class standard. Especially, CP’s prawn and shrimp food manufacturing business is one of the largest in the world. CP’s petro-chemical and telecommunication businesses have used the same approach. CP’s policy is to invest in large, experienced corporations for their modern and developed technologies. The most important ones are in the US. European and Japanese business are using integrated technology systems too. CP adopt such systems from them and use them successfully in a short time.
Leading edge technology reduces CP’s production costs, creates new market, makes CP’s marketing stronger, and makes CP capable of competing in the world effectively. For example, in one country where people are very poor, CP could produce merchandise that they could afford which would create more market opportunity. Technology is a key to reducing costs. It helps to improve all industries’ and people’s productivity. It would be wise to gain markets from poor nations with the best technology. Business is poor nations are tremendous opportunity for CP.
On an old style farm, a household raised 100 chickens which required food, drugs, and veterinarians’ services which made the cost per chicken higher. If CP has 100 farmers, it costs even more with multiple problems. How could CP catch all chickens from 100 farms? It would be a nightmare. CP has changed. One lady who raised 100 chickens made a profit of 20 baht per chicken for a total of 2000 baht. Now one lady who raised 10,000 chickens made a profit of 3 baht per chicken for a total of 30,000 baht. The profit increased 15 times. CP’s new experiment involves one household feeding 70,000 or 150,000 chickens. Chicken and egg costs could be the cheapest ever.
Chapter 7: “Search for business partners.”
CP has invested with large corporations in Japan for producing materials, in the US for corn production, in Europe for wholesale merchandise and telecommunication networks. CP is looking to expand 2 million to 18 million phone systems from New York and Boston. CP is looking for partners from all over the world and focusing on applications of technology which matches with CP business niches. CP has maintained and sustained its old core values for decades.
Chapter 8: “Could we change a crisis to opportunity?” 
Many world crises have affected Asian countries in the past. A new crisis may encourage CP to create future opportunities. Crisis forced CP to change. Every time fuel prices increase, people all over the world have to adjust and change their lifestyles. After the Second World War, people saved too much money. In Japan, companies built large ships to stock gasoline so that it could be sold when gasoline prices increased. They predicted that people had purchasing power to buy when a crisis occurred. They speculated and made a lot of revenues and profits. This is an example of changing a crisis to opportunity. Why Japan had to build large ships? They had limited land.
CP looked for opportunity. When Taiwan and Indonesia allowed investors to invest, CP invested successfully.
Twenty years ago, CP speculated to adapt the US integrated farm system to increase chicken farm productivity in Thailand. Now the idea has been changed to leap ahead for a much better integrated system. CP should learn from others’ examples and do better with its agricultural strengths in the Thai environment. If CP just wants to be as good as them, there is no way that CP could get ahead of them. CP would be behind. If CP moves slower than them, it will not have new opportunities. CP must find ways to leap ahead for all businesses it anticipates in the future. Then opportunity would be with CP.
Chapter 9: “Learn and Follow the World.” 
Many things have changed very fast in the world--human rights, environmental regulations, the Internet, Information Technology and others. CP food products have served three billion people in the world: one billion in China, nine hundred million in India, two hundred million in Indonesia, seventy million in Vietnam, forty million in Burma and others. CP has businesses in half the world. The company continues to try to build “Thai kitchens for the world.” Why? CP has all food ingredients and food productions to launch new designs for new business opportunities to produce the best kitchens for the world. CP’s kitchen equipment could help prepare tasty food that people love to eat in all cities and towns across the world. CP has the best steamer to send to all Thai restaurants that would become one of CP’s franchises. Three meals could be ordered through the Internet. CP would deliver these meals to all homes in the world. CP’s new niche involves Thai kitchens feeding the world. With all of CP’s talents in place for more than five decades, the company could be the best integrator in the next three decades.
Chapter 10: Last, but not least--The Thai newborn Seven-Eleven story: Why Seven-Eleven revenues have soared since the stores were started
In 1927, the Seven-Eleven convenience store was born in Dallas, Texas, USA. John Jefferson Green, called Uncle Johnny by most, intended to build a retail store to serve the community demands. He founded “The Southland Corporation” in Dallas. He produced and sold ice which was the most popular demand at that time. There was no technology then. 
Ninety years ago, the weather in the desert, which included Dallas, was very hot. Cowboys were raising farm animals. Uncle Johnny opened his ice store every day, and his ice became very popular with local people and farmers. Later on, he added milk, bread and eggs in his store. Then he changed the name of his store to “U Tote’m” which was the beginning of the convenience store. 
In 1946, a new, experienced manager named Joe Thompson made it a complete convenience store. The reason for the name “7-11” was that they opened for longer hours from 7:00 a.m.-11:00 p.m. The new name, “Seven-Eleven,” created more attention, strength, and faster services in retail business and was easy to remember. Later on they opened for 24 hours and offered 24/7 services.
The first day, Seven-Eleven opened to maximize the number of people coming in. They brought most items in and provided fast service, the right place, the right people and the right time. If employees love and like what they do, they will be happy and grow. In service business, customers come first, not employees. Many business failures’ owners focused on their talents and what they wanted instead of what their customers wanted. If customers do not like something, a company should quit or change to give its customers what they want. 
In 1947, Seven-Eleven added “City Ice Delivery, T.P.U., Southland Ice and Oak Farm.” In 1952, they expanded to 100 stores. In 1969, Southland Corporation had 3,537 stores in 38 states. 
In 1971, Seven-Eleven leaders decided to franchise to England. In 1974, they franchised to Japan. They provided its best training in financial control, computers, purchasing, inventory control, and distribution control for Japan. In 1985, Japan had 2,471 stores. In 1995, Japan had 5,820 stores. In 2013, Japan had more than 12,000 stores, and the US had more than 5,600 stores. Japan surprised the world by having the most stores in forty years. In 2013, there are approximately over 30,000 stores in the world. Forty percent of Seven-Eleven stores are in Japan, 23% in Thailand, 19% in the US and 18% in other countries.
The Seven-Eleven, Thailand: Thanin saw a golden opportunity for Thailand to grow.
Remember, the CP has had its philosophy for nation, people and CP, Speed & Quality, Simplification, an Embracing of Change, Innovation, Integrity & Honesty. In addition, technology, market and capital are important.
On September 7, 1988, CP signed a license with the US Southland Corporation. On June 1, 1989, the first Seven-Eleven store opened at Patpong Road, Bangkok, Thailand.
There were three types of Seven-Eleven stores in Thailand:
1)	CP-owned stores
2)	Franchises that sold at 1.5 million baht for 6 years or 2.6 baht for 10 years
3)	Sub-area licenses for companies in regional sections of Thailand
After CP signed its franchise license with the Seven-Eleven, Inc., USA, Thanin hired the first team of executives to enlarge its business. Since they had no experience and had problems in expanding branches and problems with his management team, they recommended that Thanin give up the Seven-Eleven business in Thailand because it was not their area of expertise. Nevertheless, Thanin had his vision and knew of the success of the Seven-Eleven franchise in Japan. He knew that with his food production capability, he could do much better than Japan. He saw the light for the future of the Seven-Eleven in Thailand. He moved his team of executives from CP headquarters. He had known them long enough, had confidence in them and had a can-do attitude toward his people. By no surprise, the operation was successful.
The Seven-Eleven in the US is much different than the Seven-Eleven in Thailand. The function, "convenience store," is the same. In the US, people love to buy the best priced merchandise from Wal-Mart type stores. When we run out of an item, we buy it from the Seven-Eleven convenience store. The prices are double, almost triple, but we need these items. That is the only reason we use Seven-Eleven stores in the US.
In Thailand, the prices for all merchandise in the Seven-Eleven store are as cheap as those at the super store. That is a big plus for Thai consumers. One street in HuaHin, the city I in which I retired, has many Seven-Eleven stores. Almost every gas station in Thailand has a Seven-Eleven store. Believe it or not, each Seven-Eleven store has high quality packs of food produced by qualified food vendors and certified by CP. The best quality and taste of food is complemented by convenience. All brands of whiskies and liquors are sold at Seven-Eleven stores. Other merchandise sold at these stores includes books, CDs and DVDs. They have microwaves to warm up food for you. Thai Seven-Eleven stores have added counter services at which people may pay their bills 24/7, have access to ATM service, buy airline tickets, and have access to seven catalogs and a digital purse. Customers do not need cash to buy things at Thai Seven-Eleven stores.  
Mornings, I have seen parents take their children to the Seven-Eleven to find and eat breakfast before they go to school. People visit the stores all day and all night. Honestly, I have patronized Thai Seven-Eleven stores for food and whisky for myself. Seven-Eleven has it all--the best taste, the best price, convenience and fast service. The CP made an excellent plan to select merchandise that people need and want. Their distribution, improved with timing optimization and operation, has matured and is almost perfect. All Seven-Eleven research gurus would design and test all executions proper for their operation. I admire and am proud of Seven-Eleven stores established in Thailand by the CP leaders.
 
How do employers empower employees to win their customers’ trust?
The following paragraphs tell of a miracle and the secret to building a billion dollar business in Thailand by the CP management team. 
Most Thai people and families have loved to go to Seven-Eleven convenience stores. They can go in the morning, afternoon, evening and night. It is a popular store for new Thai housewives and family members.
The US Seven-Eleven stores open 24 hours, and their prices are much higher than those at Wal-Mart. Americans mostly shop at Seven-Eleven in an emergency. But prices at the Thai stores are very competitive with those of super stores. CP designed Thai Seven-Eleven stores to serve all needed merchandise with fast service at the best prices.
CPF (Food) has created a fully integrated food business system. They design, deliver, manage and sell all finished products and food to all Thai families in all Thai communities. This includes all foreigners who visit Thailand.
A crisis for our Seven-Eleven stores occurred from 2006 to 2007 when revenues fell below what CP expected, especially for its main merchandise which included food, drinks and household sales.
What happened to the Seven-Eleven stores? According to Thanin, customers changed their minds or the CP got lost. Because customers had more brands to try, their values changed. They wanted to try different brands from the other stores. The question was raised: Was CP waiting to die?
Modern trade has seven kinds: Department, super center, cash and carry, supermarket, specific, category killer and convenience stores. 
CP found out that its customers switched between two brands and used larger sizes for their long-term use and for better prices. CP decided to add more brands for more selection and larger sizes. CP also added more items such as book smiles, catalog purchase at the counters, coffee and bakeries. CP’s sales and revenues rose; in addition, the company jump-started new merchandise to please more customers in time too. This has been an example of changing crisis to opportunity at the CP Thai Seven-Eleven stores. 
Every busy road in Thailand has Seven-Eleven stores open 24 hours that are well-decorated, modern and brightly lit with easy to find products. Each store will serve on average more than ten thousand people per day. The CP has more than 7,000 stores now. The number of Seven-Eleven stores in Thailand is number two in the world, with more than 100,000 employees and revenues of over a few billion dollars per year. The number of Seven-Eleven stores in Thailand is growing to 10,000 in the near future. Now Japan has more than 12,000 stores. This business venture was developed by the CP’s capable and responsible management team using all existing business niches developed by all CP divisions for decades. There is a prediction by a Thai economist, “No matter what happens, Seven-Eleven business will grow and sell more.”
Thanin’s ideas for running his business: There have been problems, mistakes, failures along its development timeline. The CP was challenged to mature to solve problems when crises occurred. This is the nature of all businesses. The more CP failed, the more CP won. CP learned from its experiences. Ethics is one reason why the company wins; moreover, they want their competitors to survive. CP won because of the honesty, hard work and responsibility of its tireless teams. Putting the right person in the right job is a must. Then CP’s teams’ actions are effective and productive. And it takes fewer people to perform tasks. CP competes with creative and constructive operations. They will not retaliate or destroy anyone. CP created an internally motivated team with the power to perform better than its competitors automatically. 
Timing in making effective business decision is very important too. CP unites and walks with confidence, moves together with cohesive power and speed. And its competitors have moved far behind them. CP corrected their mistakes with creative ideas and love for all customers. CP needn’t fear bankruptcy. Speed, precision, quality, understanding and giving what our customers want will help CP to survive and grow. When CP stops walking, its competitors are walking or running.
“Great business leaders would remember their excellent decisions to manage people in all crises.” --from Judgment: How Winning Leaders Make Great Calls by Noel M. Tichy 
The quality of decision making within an organization could be proven to all people when in the middle of crisis. The best professionals are capable of transforming crisis into opportunity.
From convenience to eating well:
In 2010, the lifestyle of most Thais changed to eating out in places that provided fast service, good taste and quality ingredients. CP changed its strategy to please its customers by helping them to eat well and conveniently. The company added more cooked food, a bakery and drinks. The percentage of food sales changed from 70% to 85%. Six million people used CP’s stores per day. CP offered 5,000 to 10,000 items to buy. They worked with their food suppliers to improve food taste, quality and price. The suppliers worked very hard with CP to be its representatives and to conduct research for the company. CP found out that many CP establishments offer less than 10% of CP-created merchandise. The rest came from CP’s suppliers. CP also allowed local food suppliers to sell products in local stores too. CP has been very happy that most Thai people come to eat there three or four times a day.
THE WAY TO SUCCESS: CP’s excellent philosophy has made Seven-Eleven a large empire.
CP has its management philosophy to give opportunities to capable people. The company wants capable people because it believes only capable people can create jobs and revenues for the entire business in the long haul.
The following 11 ingredients made Seven-Eleven a great business:
1)	Create a clear and good vision
2)	Recruit, train people and build team strengths
3)	Build a team of capable and honest people; prefer teamwork and delegation of authority
4)	Grow everywhere, change crisis to opportunity, and promote networking
5)	Select the best location that will grow in the future
6)	Have excellent merchandise management and sell customer-wanted items
7)	Have up-to-date technology leaders, risk management and control system
8)	Cultivate an excellent image and reputation
9)	Establish a process for efficient transportation and distribution of merchandise to create added value
10)	Maintain high standards and provide best services.
11)	Search for and build new integrated businesses
Recruit, train people and build team strengths: People are a company’s most valuable assets. The CP has its formula 5-7-11 that melds all employees which helps them to move in the same direction toward organization successes.
Five loves each employee is expected to possess: 
1)	Love your job 
2)	Love your customer 
3)	Love your integrity 
4)	Love your organization
5)	Love your team
Seven common values for each employee to conform to CP culture:
1)	Move to the finish line
2)	Courage 
3)	Keep promises 
4)	Harmony 
5)	Generosity 
6)	Respect others 
7)	Appreciation
Eleven leadership ingredients:
1)	Sincerity, do not take advantage of others
2)	No feudalism, do not create or use social classes, do not look down others, no institutional division and bias
3)	Talk creatively, talk politely, be a good listener
4)	Do not overuse power, do not want power, do not want any status or position, and do not bother lower level people
5)	Be a good example, be diligent, be self-disciplined, have a good working attitude
6)	Be fair, listen to all with no bias, and be reasonable
7)	Take care and love to help lower level employees
8)	Be willing to make decisions based on rules, facts, and experience
9)	Care for the community and help the community with responsibility
10)	Train good citizens and train capable people for the organization
11)	Be open-minded, accept opinions from all levels and love new ideas.

“Bright ideas: Since 1973, Thanin Jearawanon has been an excellent leader and CEO of the CP Corporation. Prior to accepting his challenging job, Thanin had learned all ingredients for business success from his father. The best Chinese culture and practices and his father’s talent in agricultural research have molded him into a great businessman and a world-class entrepreneur. All his ideas have matched my ways of growing business. Fairness is his best tool to bring in the best people. He used his intelligence to make good decisions for CP businesses. He opened all his doors widely to grow the CP business at low risk or no risk. He worked with greater speed, greater scope, greater precision, cost reduction and confidence. He was wise to build bridges to all of his business partners. He was wise to listen and learn from all people and all business successes. I have been proud of him, of his willingness to teach and train others, of his kindness and willingness to help others, and of his many wonderful ideas for the world. What a man!”

More Bright Ideas:
I can certainly understand why Thanin and his management style are held in high esteem by so many.  Some of his great ideas that really jumped out at me were as follows:
1.      His entire startup philosophy was focused on common people, not the rich.  That same principal made Sam Walton who he was and has proven itself many times.
2.      He hires people with insecurities and lesser qualifications.  It will often push people to work and try harder than the competition to prove themselves and make the best of the opportunities presented to them.
3.      Thanin was open minded and not a dictator.  He was willing to listen to criticism, was willing to take personal inventory and was willing to change as needed.  That is a unique attitude.  Chris once said that strong leaders can take criticism which he admitted is always difficult.  He said that he worked on getting good at it throughout his career.  Most business owners are not really willing to take criticism and change as needed.  Thanin was unique in that way.  That shows good confidence.
4.      Of course I loved his section on ladies.  There is some truth in his perspective.  Males and females are just wired differently so he figured out how to take the best of both, and make it work for him.  Smart on his part.
5.      The most interesting of all is his thinking on the 7/11 stores.  He basically built a bunch of mini Wal-Mart.  What a great concept!  The world is in a hurry, so he gives the consumer the ability to save time, access products more conveniently and still get the best price.  At Christmas time, I needed some batteries but didn’t have time to run into Wal-Mart so I ran into a convenience store.  When I saw the price I almost choked as it was 3X the price. Crazy!  I really hope that this concept makes it to the US.