Case Study : Qian Hu Corporation Limited Done by : Team 3 Toh Wanning (033296D) Wom Li Ling (035811T) Chia Yan Li Jacqueline (034183Z) Ang Soon Lee Kelvin (032438G) Ng Tse Hsiung (033425B)

Objectives Background of Qian Hu Corporation Kenny Yap’s Leadership Style and its Impact on Organization Behaviour Qian Hu Corporation’s Global Business Strategy via Wider Distribution Network

Background of Qian Hu Corporation Limited

Qian Hu’s Beginnings Started in 1985 as a pig farm Suffered many setbacks Government’s move to stem pollution in 1985 Guppies were washed out by a thunderstorm in 1989 4,000 of their high-fin loaches dying in one swoop

Present Condition of Qian Hu More than 4% of the global ornamental fish market Multinational with subsidiaries across Asia Last year making $1.8 million Establishes Singapore as the leading exporter over the past few years

Future Plans of Qian Hu Widen their distribution network to other countries Setting up retail chain stores across Asia under “Qian Hu- The Pet Family” Expand to more than 100 stores within the next 5 years

Competition in the Ornamental Fish Industry High growth business 6 farms registered with AVA for breeding of Dragon fish other than Qian Hu Leading exporter of ornamental fish despite of the competition

Key Competitive Strengths Was first to: Received ISO 9002 and ISO 14001 certification for having effective quality management system Integrated ornamental fish service provider to achieve Singapore Quality Circle status “one-stop” centre as their unique business model

Kenny Yap’s Leadership Style and its Impact on Organization Behaviour

Type of Leadership Style Kenny Yap Adopted Exceptional drive towards his work Humble and have integrity A visionary and democratic leader

Tools Used to Assess Effectiveness of Leadership Employee Opinion Survey Customer feedback Self assessment

The Pros and Cons of His Leadership Style Drive for his work Take employees suggestion into consideration Provides rewards Gives direction Achievement oriented person Goal setter Honest and have integrity

Effectiveness of This Approach Possesses great foresight Visionary leader Set a challenging and realistic goal Build good rapport with employees

Qian Hu Corporation’s Global Business Strategy via Wider Distribution Network

Qian Hu Distribution Network

Growth Strategy Approach Wholesaling Direct Retailing Direct Exporting Joint venture

Reason for the Approach Adopted Singapore market small Learn from past failure More control on market movement Enhance market movement

The Pros and Cons of the Growth Approach Distribution of ornamental fish and accessories through: Direct Exporting Wholesaling 3. Retailing

The Pros and Cons of the Growth Approach 1. Export of ornamental fish and accessories 1. Foreign markets provide a better profits opportunities than local markets Require a larger customer base to achieve a economics of scale Reduce independence on any one market Require less investment Able to maximize potential profit returns 1. Fail to understand foreign customers preferences 2. Failure to understand the foreign business culture Underestimate foreign regulations Lack of talent mangers with international experience Foreign country might change its commercial laws

The Pros and Cons of the Growth Approach (Cont..) 2. Wholesaling 1. Less decision making 2. Able to cover a larger trade area 3. Deal with business customer only 4. Deals differently on legal regulations and taxes compare to retailing 5. More efficient to perform the tasks 1. Wholesale business might dwindle somewhat in the future 2. Retailer bypass the wholesaling to direct buy programs from the manufacturers 3. Failure to carry out customers’ requirement

The Pros and Cons of the Growth Approach (Cont..) 3. Retailing 1. Achieve economics of scale 2. Wider brand recognition 3. Able to gain potential returns in long terms 4. Able to differentiate its services 5. Diversify their range of products 6. Able to gain the process of owning the customers and not the business. In short term, it might occur huge losses It is more risky and requires huge investment Require a lot of carefully planning and decision making Faced intense competition from same retailer

Effectiveness of the Strategy Dip in Net Profit of S$1.6 million in 2004 Net Profit of S$7.016 million in 2003 Strategy on Exporting, Wholesaling and Joint Venturing Strategy on Retailing and Manufacturing

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