Strategy Execution by Thai Large Companies for ASEAN Economic Community

Nopadol Rompho,Sakun Boon-Itt,Kitti Siripullop,Robert Twiddy

doi:10.5539/ijbm.v9n5p138

Nopadol Rompho, Sakun Boon-Itt + Show 2 more

Open Access

https://doi.org/10.5539/ijbm.v9n5p138

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Abstract

The ASEAN Economic Community’s (AEC) road map targets implementation by December 2015. It promotes a single market and production base by supporting the free flow of goods, services, investment, capital, and skilled labor. Although there are a number of studies related to the AEC, few studies, if any, address this issue from the perspective of private companies, especially in Thailand. In this study, a survey was conducted onexecutives in large Thai corporations listed on theStock Exchange of Thailand (SET), covering eight industries including retail, property, banking, telecommunications, oil and gas,chemicals, transportation, and food.Results showed that large Thai firms are aware of the AEC, but most of them do not have specific strategies for the AEC. Some of these firms have already entered other ASEAN markets, while others look further beyond. It seems that most executives in large Thai firms perceive the AEC as an opportunity for companies rather than a threat. However, they also believe that more in-depth AEC integration is required in order to fully utilize its benefits.

Highlights

All governments and companies find translating strategy into action a challenge (Kaplan & Norton, 1996), whether it is connecting the strategy to changing elements of established business practices, or to connect it with initiatives, programs, or projects
There is no consolidated knowledge of their readiness for ASEAN Economic Community (AEC) integration in 2015, researched through an independent study
As the AEC’s road map includes a significant milestone in December 2015, understanding the views of some of the SET50 companies from Thailand adds a perspective on the work that has been done to date and that required in the future

Summary

Introduction

All governments and companies find translating strategy into action a challenge (Kaplan & Norton, 1996), whether it is connecting the strategy to changing elements of established business practices, or to connect it with initiatives, programs, or projects. There is no consolidated knowledge of their readiness for ASEAN Economic Community (AEC) integration in 2015, researched through an independent study. Strategies will need to address AEC integration Thailand, with this knowledge, may move to a timely implementation of solutions to improve national economic competitiveness. This will be one of the first intensive studies done in Thailand It will look into new solutions for connecting strategy to regular business operations. The focus will be on strategies for AEC integration, so secondarily there will be an understanding of the extent of the plan that is required to put the organization’s strategy in place to be ready for the AEC or validation that the strategies are in www.ccsenet.org/ijbm. The potential managerial implications are that gaps will be found and that a plan to fill these gaps will be required

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