1. 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)

2. 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

3. Background of Qian Hu Corporation Limited

4. 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

5. 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

6. 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

7. 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

8. Key Competitive Strengths
Was first to:
Received ISO 9002 and ISO 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

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

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

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

12. 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

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

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

15. Qian Hu Distribution Network

16. Growth Strategy Approach
Wholesaling
Direct Retailing
Direct Exporting
Joint venture

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

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

19. 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

20. 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

21. The Pros and Cons of the Growth Approach (Cont..)
3. Retailing
Achieve economics of scale
Wider brand recognition
Able to gain potential
returns in long terms
Able to differentiate its services
Diversify their range of products
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

22. 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

23. Thanks for your attention
Q & A Session