Risk diversification, business resilience and sustainable development are essential to run a business in this era when global economic conditions change quickly, say leading Thai executives.
Speaking at Babson Connect Worldwide 2017 seminar hosted by American Babson College in Bangkok, Thiraphong Chansiri, president and chief executive of Thai Union Group Plc (TU), the world's biggest producer of canned tuna, said he diversifies risk by investing in many places around the world to prevent raw material shortage.
TU started in the fisheries and seafood business in 1977 and has expanded over time, mostly through mergers and acquisitions (M&A), giving the company several production bases around the world.
Last year TU made a US$575-million investment in Red Lobster, the world's largest seafood restaurant chain, for a 25% equity stake and 10-year convertible preferred units of another 24%.
The company also acquired a minority interest of 18% from its subsidiary Chicken of the Sea Frozen Foods.
Apart from acquiring businesses in Europe and the US, TU also invested in other Asian and African countries including Vietnam, Papua New Guinea and Ghana, aiming to build production bases in some.
Mr Thiraphong said innovation would support sustainable growth as higher quality products can differentiate a company from a competitor.
Aloke Lohia, chief executive of SET-listed Indorama Ventures Plc (IVL), a global maker of intermediate petrochemicals, said it also uses acquisition to diversify risk and expand the company's business.
"Acquiring businesses in other countries helps secure the company's production capacity and rising sales as the customer bases will be bigger," he said.
Mr Lohia said IVL set aside around $1 billion for M&A over this year and next.
He expects the company will seal two acquisition deals this year to help it retain sales growth of around 12% from the previous year.
Tourism and Sports Minister Kobkarn Wattanavrangkul said skills training is key to drive the Thai tourism sector forward. Both the private and public sector should collaborate in training people, both for operations and management, she said.
"Tourism is a major revenue generator, but we can't neglect improving our human resource training quality as we are a service industry," said Ms Kobkarn.