CP-ALL and the Case of Value Web Creation

19 Pages Posted: 26 Feb 2015 Last revised: 27 Feb 2015

See all articles by Bryane Michael

Bryane Michael

University of Oxford

Christopher Andrew Hartwell

CASE - Center for Social and Economic Research; Department of International Management

Vladimir Korovkin

Skolkovo Institute for Emerging Market Studies

Multiple version iconThere are 2 versions of this paper

Date Written: February 26, 2015

Abstract

How should convenience store operators like Thailand’s CP-ALL construct its value chains? What does economic theory teach us about an under-modelled area of management theory (namely value chains)? In this paper, we use a seemingly unrelated economic model analysing Vietnam to tell us something about the conglomerates running convenience stores licenses like CP-ALL. We find that convenience stores may not want to raise capital from Thai banks and the Bangkok stock market when labour productivity exceeds capital’s. We also find that inefficiencies inherent in Thai markets may significantly reduce the optimal size of a convenience store operator like CP-ALL. These operators may also (counter-intuitively) need to give up a significant share of their profits to “value service providers” when the cost of capital falls. As such, counter to the usual World Bank nostrums, improvements in Bangkok’s stock market and banks may actually hurt firms like CP-ALL.

Keywords: convenience stores, Thailand, value chains, value web

JEL Classification: D46, G11, L81, P23

Suggested Citation

Michael, Bryane and Hartwell, Christopher Andrew and Korovkin, Vladimir, CP-ALL and the Case of Value Web Creation (February 26, 2015). Available at SSRN: https://ssrn.com/abstract=2570762 or http://dx.doi.org/10.2139/ssrn.2570762

Bryane Michael (Contact Author)

University of Oxford ( email )

South Parks Road
Oxford, Oxfordshire OX1 3QY
United Kingdom

HOME PAGE: http://users.ox.ac.uk/~scat1663/

Christopher Andrew Hartwell

CASE - Center for Social and Economic Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland

Department of International Management ( email )

ul. JagielloDska 57/59
Warsaw, 03-303
Poland

Vladimir Korovkin

Skolkovo Institute for Emerging Market Studies ( email )

No. 8 Beichendong Road, Unit 1608
Chaoyang District
Beijing, Beijing 100101
China

Register to save articles to
your library

Register

Paper statistics

Downloads
29
Abstract Views
704
PlumX Metrics