INTERNATIONALBUSINESSENVIRONMENT

CASE 1 : ERZA HOLDINGS

CASE 2 : BANCO COMERCIAL PORTUGUÊS
Case 3 : BANYAN TREE RESORTS

SUBMITTED BY
GROUP 7
AKSHAY TALREJA (PGPJ03004)
AVINASH SAINI (PGPJ03012)
NISCHAL UPRETI (PGPJ03034)
ERZA HOLDINGS: SUCCEEDING
IN SUCCESSION

Group 7
Akshay Talreja (PGPJ03004)
Avinash Saini (PGPJ03012)
Nischal Upreti (PGPJ03034)
INTRODUCTION- OIL& GAS INDUSTRY
• In 2011, the global oil and gas industry was valued at US$ 3223.1billion
and was projected to grow at 16.6% to an estimated US$ 3758.6 billion.
• Mainly divided into three
1. Onshore Structures (Petrochemicals plant, O&G plant).
2. Offshore Structures (FPSO, FPDSO, fixed and floating structures).
3. Subsea Structures(ROVs)
• Biggest sector in world in terms of Dollar Value.

GLOBAL OPERATING
EXPENDITURES

32% USA
48% Asia
Others
20%
ERZA HOLDINGS LTD.
• Ezra Holdings Ltd, also known under their
operating brand name of EMAS, is an integrated
offshore support provider for the oil and gas
industry.
• The business was founded in 1992 and is
headquartered in Singapore.
• 2003 Launch of Initial Public Offering (IPO) in
Singapore.
• 2005 Acquisition of Vietnam Fabrication Yard,
Asian Technical Maritime Services Ltd (ATMS)
through wholly owned subsidiary HCM Logistics
Limited & Promoted to SGX Main Board.
ERZA HOLDINGS LTD.

• 2007 Buys strategic stake of 21.83%

for S$16.5m in SGX-listed Nylect
Technology Limited to extend its oil
& gas support services activities.
• 2011 Acquisition of Aker Marine
Contractors AS (AMC) from Aker
Solutions AS (a subsidiary of Oslo
Bǿrslisted Aker Solutions ASA).
• 2011 Singapore's EMAS wins three
charters worth $73 million.
ERZA HOLDINGS LTD.
• On 30th December, 2012, Lee
Kian Soon, the founder of Erza
Holdings Ltd is getting retired
after serving as an Executive
Chairman of company for 20
years.
• Lee was instrumental in leading
the business development,
strategic planning, and overall
vision of the company.
• A company which started off as
a subcontractor in 1992 has
diversified its operations and
has emerged out as an
US$984.2 Oil and Gas service
provider in 2012.
ERZA HOLDINGS LTD.

• ERZA now its holdings on over 16

countries and has an employee
count of 3000.
• Four main divisions:
1. Offshore support services.
2. Construction & Productions.
3. Engineering & Fabrications.
4. Deepwater Subsea services.
ERZA HOLDINGS LTD.- A GLOBAL SUBSEA
STRATEGY
• With most of the O&G companies
moving more deeper into
exploration, there is a shift in to
move towards subsea
explorations.
• In 2009, ERZA decided to move
diverge there businesses into
Subsea Market.
• It thus geared itself from
“predominately Aisa-Centric
player) to a global offshore oil
and gas service provider.
ERZA HOLDINGS LTD.- A GLOBAL SUBSEA
STRATEGY
• In 2011, ERZA acquired Aker Marine
Contractors(AMC), to deepen its
capabilities in Subsea engineering
and constructions.
• ERZA acquired subsea Umbilical,
Risers and flowlines capabilities and
gained Engineering, Procurement,
Installation and Construction
capabilities.
• It further diversified into four divisions:
EMAS-AMC, EMAS Energy, EMAS
Marine and EMAS Production.
• In 2011, ERZA was awarded.
Amongst Top 50 fastest growing
company in Singapore.
ERZA HOLDINGS LTD. FINANCIAL DATA DIVISION
TOTAL REVENUE
Offshore Support
Sevices
28%
Marine Services
56%
16%
Subsea Services

OPERATING INCOME

Offshore Support
Sevices
32% 28%
Marine Services

40% Subsea Services

REVENUE BY GEOGRAPHY

10% Singapore
South East Asia
49% 25%
America
16% Other Countries
ERZA-KEY MANAGEMENT AND BOARD MEMBERS

Mr. Koh Poh Tiong
Appointed as Senior Advisor in 2012 .
Appointed as Non-Executive Vice
Chairman.
Mr. Lee Kian Soo Mr. Lee Chye Tek Lionel
Group Founder, Non Executive and Group Managing Director
Non Independent Director.
ERZA HOLDINGS LTD.- NEW LEADERSHIP
• On 31 December 2012, Ezra appointed an
external candidate, Koh Poh Tiong, as the
Chairman of its Board.
• Koh joined Ezra’s Board on 1 October 2011
as non-executive Vice-Chairman.
• With over 42 years of corporate experience
in diverse sectors, ranging from food and
beverage to shipping, he is deeply
passionate about building global brands
and companies.
• He served as CEO of the Food & Beverage
Division of Fraser and Neave Limited from
2008 to 2011. He was also the CEO of Asia
Pacific Breweries Limited (APB) from 1993 to
2008.
ERZA HOLDINGS LTD.- NEW LEADERSHIP
• His leadership was instrumental in transforming
Asia Pacific Breweries into one of the top
brewery groups in Asia Pacific.
• Koh is also Chairman of the Singapore
Kindness Movement and the National Kidney
Foundation, as well as a Director of Raffles
Medical Group, the Port of Singapore
Authority Corporation, the Port of Singapore
Authority International, Great Eastern Life
Assurance Co. Limited, SATS, United Engineers
Limited and Petra Food Limited.
• He was bestowed the Public Service Medal
and the Service to Education Award in 2007,
and was the recipient of The Business
Times/DHL’s “Outstanding Chief Executive
Officer Award” in 1998.
ERZA HOLDINGS LTD.- KOH POH TIONG ERA
• Bringing an outsider as a leader of ERZA
would provide the new perspective to
company.
• Koh Poh Tiong can start afresh without
any leftover baggage and can ensure
that he or she brings a new set of lens
with which the organization can
determine its vision.
• Since O&G market is turning into a Red
Ocean market, Koh Poh Tiong would
rejuvenate the company.
• Koh has already proved his leadership
capablities in transforming Asia Pacific
Breweries into one of the top brewery
groups in Asia Pacific.
ERZA HOLDINGS LTD.- KOH POH TIONG ERA
• From 2011, there was a decline in the Brent crude oil prices, which have
directly impacted the share price of Erza holdings from 2011-2012.
• Real difficulty for Koh was to address the decline in Crude oil prices and sail
the company through this difficult phase.
THANK YOU
BANCO COMERCIAL PORTUGUÊS : NEW
FRONTIERS FOR A LOCAL CHAMPION

Group 7
Akshay Talreja (PGPJ03004)
Avinash Saini (PGPJ03012)
Nischal Upreti (PGPJ03034)
BANCO COMERCIAL PORTUGUÊS: INTRODUCTION
• Banco Comercial Português (BCP) was born
out of liberalization of the Portuguese
market in 1985.
• Since its inception BCP has maintained an
annual growth rate of 15% during the next
10 years.
• In the first half of 2000, BCP has completed
the acquisition of two domestic competitors
taking it to a commanding 28% share and
over 10 billion in market capitalization.
• BCP was looking for international
expansions and they started a joint venture
with a polish bank named BIG Bank
Gdanski(BBG) in Poland to found a new
retail bank called Millennium.
BANCO COMERCIAL PORTUGUÊS : THE EARLY
YEARS OF BCP
• From the very beginning BCP developed a rational and structured
approach to its conquest of the Portuguese market.
• Prior to opening any branches, its founders conducted market
research in order to define the most attractive segments for a new
bank.
• BCP used the services of a leading international management
consulting firm to help it introduce best practices and IT from around
the world into the Portuguese market.
• BCP was able to leverage the advantage its new systems and low
relative cost base afforded it, opening more than 300 branches by
1993.
• By this time it was able to claim a market share of some 8.4% of bank
loans and over 5% of the insurance market.
SEGMENTATION MODEL AND IT STRATEGY
• The first segment to be targeted, in 1986,
was wealthy (or “high net worth”)
individuals, by a division called BCP
Particulars.
• In parallel, a banking division aimed at
small corporates (Empresas) made
immediate inroads.
• Customer was at the center of BCP’s
strategy and a significant commitment
was made to continuous market
monitoring and customer satisfaction
research.
SEGMENTATION MODEL AND IT STRATEGY
• Launching of NovaRede in 1989,
aimed at individuals in the “mid-
income range” doubled the branch
network in 1990 and again in 1991.
• BCP bypassed the difficulties
associated with outdated legacy
systems by introducing a new IT
system which was large and more
flexible.
• The growth in number of branches
did not require the bank’s processes
to migrate onto new systems.
PRODUCT DEVELOPMENT AND CROSS SELLING
• Through a division called Ocidental
Holding set up in 1987, BCP developed
risk and life insurance products,
pioneering the banc assurance model in
Portugal.
• In 1991 the bank entered into a
partnership with Cariplo, an Italian
savings bank, to establish a mortgage
lending bank in Portugal: Banco de
Investimento Imobiliário (BII).
• Other business units were established to
offer consumer credit and asset
management (the latter through the
acquisition of Interfinança in 1988).
PRODUCT DEVELOPMENT AND CROSS SELLING
• The product-focused business units were
managed quite separately from the core
retail business, enabling a focus on
efficiency and service through
specialization.
• These financial products—and others
such as credit cards—were promoted
intensively through BCP’s retail branch
network.
• The bank’s incentive structure and
approach to local branch management
led to significant penetration for these
financial products among its customer
base.
DOMESTIC EXPANSION
• In January 2000 the BCP acquired the financial assets of
the José de Mello group. The key assets of interest were
Banco Mello and the insurance group Império.
• The BCP Group increased its market share to 22% in
terms of customer funds and loans. In the insurance
business the group’s market share grew from 19% to
27%.
• BCP purchased Banco Pinto & Sotto Mayor, the
principal financial-sector assets of the Champalimaud
group.
• BCP also entered into a strategic alliance in e-
commerce and telecommunications with the
Portuguese electric utility, EDP and its partner in the
Greek market, Interamerican.
• The combined effect of this frenetic activity in the
markets in 2000 doubled the market capitalization of
the group: from a value of €5 billion at the end of 1999
to €10 billion.
GROWTH OF BCP FROM ITS INCEPTION
INTERNATIONAL EXPANSION
• In order to expand internationally, BCP adopted
a policy of establishing joint ventures with local
partners rather than attempting more immediate
growth through acquisitions.
• In 1993 BCP entered into a partnership with the
Spanish Banco Central Hispanoamericano (BCH)
to build bilateral representation in the Spanish
market named Banif.
• In France BCP founded a retail banking network,
Banco Popular Comercial (BPC), with another
Spanish bank, Banco Popular.
• Cross-shareholdings were also established
between the subsidiary Ocidental, the UK-based
insurer Friends Provident and the Dutch Avero
Centraal Beheer (later to become Achmea).
INTERNATIONAL EXPANSION
• BCP’s principal focus—after the domestic
restructuring—was the developing markets
of Eastern and Southern Europe.
• Millennium joint venture between BCP and
a local partner in the Polish market, BIG
Bank Gdanski (BBG), was established with a
50/50 share each of both the partners.
• In Greece, a new greenfield bank
NovaBank was established in a joint
venture with Interamerican Hellenic Life
Insurance Company (the largest Greek
insurance company).
INTERNATIONAL EXPANSION

• The relationship with Eureko, the Netherlands-

based European insurance partnership, was
strengthened in the year 2000; in exchange
for an increased share in the group (from 15%
to 23%).
• In 2000 BCP opened four branches of this new
bank in New Jersey directed at serving a small
niche of US citizens of Portuguese origin.
• A new strategic partnership was established
in early 2000 with the Spanish Banco Sabadell
in order to develop a number of pan-Iberian
financial services, in particular e-finance.
ISSUES IN ACQUISITION OF BANCO PORTUGUÊS
DO ATLÂNTICO
• BCP acquired Banco Português do
Atlântico (BPA) which was some 30% bigger
than BCP and was the second largest
financial institution in Portugal.
• In 1995 customers of BPA were leaving at
such a rate that BCP calculated that there
would be no retail banking operation
remaining by 2004 if urgent action was not
taken.
• There were four main issues that BCP faced
in the acquisition of BPA.
• People : The human resources policies of
Atlântico received immediate attention.
The commercial focus that had been so
successful at BCP would now be applied to
the front line of Atlântico.
ISSUES IN ACQUISITION OF BANCO PORTUGUÊS
DO ATLÂNTICO
• Branches : The Branch network of BPA was
outdated and design did not fit with the
younger, more dynamic image of the
group, it was also recognized that the IT
infrastructure was highly inconsistent.
• Products : BPA was under-penetrated in
complementary financial products and
services and had very little product
innovation. The first element in improving
profitability was to cross-sell the products
of the mother bank.
• System Integration of BPA : The quality of
IT infrastructure, data management and
processes were in a very bad shape. A
team of IT and banking experts was
formed to study the problem and propose
the best solution. The effort was to be
called the Synergies Project.
ISSUES IN INTERNATIONAL EXPANSION
• After Banco Central Hispanoamericano
(BCH) merged with fellow Spanish bank
Santander to form the largest Spanish
banking group (BSCH), BCP found itself
competing locally with its foreign
partner.
• In June 1999 BSCH announced that it
had agreed to purchase the financial
interests of the Portuguese
Champalimaud group, building a
threatening 15% market share in
Portugal.
ISSUES IN INTERNATIONAL EXPANSION
• System integration of Banco Mello and
Banco Pinto & Sotto Mayor proved to be
complicated and took 6-9 months for
entire integration.
• Looking at Deutsche Bank’s interest in BIG
Bank Gdanski (BBG), BCP’s local joint-
venture partner in Millennium, BCP was in
a dilemma of whether to abandon or
take over BBG.
• In Brazil BCP was unable to find a suitable
local partner and therefore it has to stay
away from Brazilian market.
PROPOSAL FOR FUTURE EXPANSION

• BCP should have a flexible policy for international expansion, it

should not just stick to a few successful domestic or international
polices.
• BCP should target Portuguese speaking countries such as Brazil and
Angola as these countries have cultural and linguistic links with
Portugal.
• BCP should reconcile a strategy to limit risk and find profitable
growth opportunities in high-potential markets.
• BCP needs to include some top level managers in its management
team which can take wise decisions on issues such as Millennium.
THANK YOU
BANYAN TREE DEVELOPING A POWERFUL SERVICE
BRAND

Group 7
Akshay Talreja (PGPJ03004)
Avinash Saini (PGPJ03012)
Nischal Upreti (PGPJ03034)
OVERVIEW
• Banyan tree: one of the leading player in
the luxury resorts and spa market in asia.

• It is the case of:

 Brand with it’s brand extension
 Niche marketing strategy
 Public relations & global marketing
programs

• Bthl operates with 15 resorts and hotels,35

spas and 38 retail shops in more than 40
locations in 20 countries.

• Founder: ho kywon ping.

 INTRODUCTION-GOING AHEAD
The ‘Laguna Phuket’ project :
• Launched with his brother Ho Kwon Cjan with investment of US$200
million by transforming the ravaged area into Asia’s first integrated resort
and named it Laguna Phuket.
• KC an architect by profession established ADP(Architrave Design and
Planning).
• ADP will go on to handle the design and construction of most of the BTHR
properties in future.
• In early 1990’s KP saw a gap in the luxury resort market in Phuket from
prices range of US$250-US$500.
• He identified demand for luxury accommodation at in terms of value
which is focused at romance, intimacy, privacy and rejuvenation

“A resort is not a hotel, it’s an experience”

INTRODUCTION- FURTHER EXPANSION
• In June 2000, mid-range brand, ‘Angsana’ was launched to
capture a wider customer base.
• It also introduced the Angsana Gallery.
• Its target market was couples, small families and companies
organizing corporate retreats.
• Angsana Spa prices were 40% lower than at Banyan Tree Spa.
• They launched Banyantravel.com, in October 2000.
• Its target market was the highly “Free Independent Traveler”
(FIT).which usually preferred small owner managed hotels.
• BTHR partnered with various small properties to cater to these
highly individualistic travellers.
ISSUES
Targeting the Right Market Segment :
• The company was able to grow so much in its
initial phase.
• Due to identifying the market gap and
capitalize on it early on.
• With an average rate of 11,887 it sits right in
between the Aman Resorts and Sheraton which
cater to both ends to market. While maintaining
highest average occupancy rate of 78.9%
among the three.
Site Selection :
• Site selection was really important as it really
dependent on the type of location, not every
location can be successful as resort location.
FACTORS BEHIND SUCCESS

• Choice of target segment

• Positioning and branding strategy
• Product/service design and delivery
• Aggressive internal marketing
• Winning the support of local
communities and public interest
groups
• Pioneer status: first mover advantage
• Pro-environmental business practices
 BANYAN TREE VALUES
• All Banyan Tree hotels and resorts are
designed around the concept of providing “a
sense of place” to reflect and enhance the
culture and heritage of the destination
• It helped create pride and respect among
staff across the brand’s resorts.
• It has also been a strong practitioner of
sustainable growth, both in terms of minimising
its environmental impact as well as its
approach to the communities in which it
operates..
WHAT'S MAKE IT DIFFERENT?
• The resorts were designed to blend into the
natural landscape
• Used natural foliage and boulders as a privacy
screen
• The furnishing were deliberately native to convey
the exoticism of the destination with its rich local
flavor and luxurious feel
• Service delivery process varied according to local
culture and practices.
• Dinner on a traditional Thai long boat
• Accompanied by private Thai musicians
• Coupled were blessed by Buddhist monks
• In Maldives, wedding ceremonies are
conducted under water.
 WHAT'S MAKE IT DIFFERENT?
• Individual villas with
– Private pool
– Jacuzzi
– Spa treatment room
• Culture and heritage of the
destination
• Reflects in the architecture
Furnishing
• Landscape
Vegetation
Services offered
• Privacy of the guests
WHAT'S MAKE IT DIFFERENT?

Banyan Tree Spa

• First tropical garden spa in the industry
• Offered variety of aromatic oil
massages
• Face and body beauty treatments
using traditional Asian therapies
• Choice of indoor or outdoor treatment
• Spa products were natural, indigenous
and made from local herbs and spices
• Relied mainly on the ‘human
touch’ instead of energy-
consuming high-tech equipment
MARKETING & BRAND VALUES

• BTHL marketing strategies were

managed by international
advertising agency
• Sanctuary for the senses
• Promoted as “smallish” hotel
experience
• Promoted as “Banyan Tree
Experience”
• Focused on extensive advertising
• Brand awareness created through PR
&global marketing.
LOCAL COMMUNITY INVOLVEMENT
• Local artisans
• traditional art and handicraft
• Local farmers and traders
• Purchase fresh produce
• support local tourism venture
• Benefit the wider local community
and enhance the visitors experience
• Other social interactions
• Disparity in life styles and living
standards between guests and the
local community
• Scholarships for the needy children,
building schools, child care centre ,
hosting lunches and parties
NEW BRANDS INTRODUCTION
Introduce the ANGSANA brand
• Introducing spa services in hotels
• Opened In 1999 in Dusit Laguna
BTHL launched Colours of Angsana
Resort & spa, complete with an Angsan
Gallery
• Penetrate the soft adventure and
cultural tourism market, creating
to the more adventurous segment
of market.
Two hotel were lunched under the
Colours of Angsana at China and Sri
Lanka
FACTORS THAT CONTRIBUTED TO BANYAN
TREE’S SUCCESS
Banyan Tree’s success attributed well designed and
executed external and internal marketing program, and in
particular:
• Choice of target segment
• Positioning and branding strategy
• Product/service design and delivery
• Aggressive internal marketing

• Winning the support of local communities and public

interest groups
• Pioneer status: first mover advantage
• Pro-environmental business practices.
BANYAN TREE’S BRAND POSITIONING AND
COMMUNICATIONS STRATEGIES.
• Brand positioning is timely and
appropriate in today’s hectic
and stressful lifestyles
• Focused promotion
efforts with minimal
wastage
• Unique positioning sustainable?
• Unique service experience at
Banyan Tree.
• Appeal to “the senses,”
PERCEPTUAL MAPPING
 THE BRAND PORTFOLIO OF BANYAN TREE,
ANGSANA, AND COLOURS OF ANGSANA
• Central theme: “the romance of
travel and the beauty of
discovering the world”.
• Banyan Tree targeted the higher end
of the luxury resorts market
• Angsana was more
mainstream and
contemporary, targeting the
wider market
• The Colours of Angsana range of
boutique hotels catered specifically
to the soft adventure tourism
segment,
 RECOMMENDATIONS
• Achieving branding consistency
through management by brand

Management of the portfolio by

brand would achieve more
consistency in branding and
positioning, and also make it easier to
cross- sell and bundle products,
although such an arrangement
would require duplication in resources
for various functions.
 RECOMMENDATIONS

• In little more than two decades Banyan Tree has grown from a single resort
to a chain of successful, resorts, hotels and spas that is growing into new
markets far from its beachside Southeast Asian origins.
• The Banyan Tree has become a global name, while retaining a strong local
flavour in each of its resorts that makes each one unique.
• It has also been a strong practitioner of sustainable growth, both in terms of
minimizing its environmental impact as well as its approach to the
communities in which it operates.
• As a pioneer in the resort spa industry it has drawn many imitators – an
indication of its success, but also a challenge as it moves forward.