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Parkson Holdings Berhad (PHB) was incorporated under the Companies Act, 1965 on 26 August 1982 as

a private limited liability company under the name of Amalgamated Cement Mills Sdn Bhd. On 27
August 1988, it changed its name to Amalgamated Containers Sdn Bhd. It was converted to a public
company on 17 August 1992 and assumed its present name on 19 September 2007. PHB was listed on the
Main Market of Bursa Malaysia Securities Berhad on 28 October 1993.
PHB is an investment holding company with stakes in Parkson Retail Asia (PRA) and Parkson Retail
Group Limited (PGRL), listed on the Singapore Stock Exchange and Hong Kong Stock Exchange
respectively. It also owns and manages KL Festival City mall located in Setapak, Kuala Lumpur.
PRA which was listed on 3 November 2011, operates a total of 52 department stores in Malaysia, Vietnam
and Indonesia. Under the Parkson brand name, it has 37 and 8 stores in Malaysia and Vietnam
respectively; and in Indonesia, it has 7 stores under the brand name of Centro Lifestyle Department Store
and a Kem Chicks Supermarket.
PRGL, which made its debut listing on 30 November 2005 is one of the premier retail operators in the
Peoples Republic of China (PRC) having an extensive network of 49 department stores covering 31
major cities in 23 provinces across PR

DEFINITION OF GLOBAL BUSINESS MANAGEMENT

Global business consists of transactions that are devised and carried out across national borders
to satisfy the objectives of individuals, companies, and organizations. These transactions take on
various forms, which are often interrelated. Primary types of international business are import
export trade and foreign direct investment (FDI). The latter is carried out in varied forms,
including wholly owned subsidiaries and joint ventures. Additional types of international
business are licensing, franchising, and management contracts.

As the definition indicates, and as for any kind of domestic business, satisfaction remains a
key tenet of global business. Beyond this, because transaction environmental factors, to different
constraints, and to quite frequent conflicts resulting from different laws, cultures, and societies.
The basic principles of business still apply, but their application, complexity, and intensity vary
substantially. To operate outside national borders, firms must be ready to incorporate
international considerations into their thinking and planning, making decisions related to
questions such as these:
How will our idea, good, or service fit into the international market?
Should we enter the market through trade or through investment?
Should I obtain my supplies domestically or from abroad?
What product adjustments are necessary to be responsive to local conditions?
What threats from global competition should be expected and how can these threats be
counteracted?

When management integrates these issues into each decision, international markets can provide
growth, profit, and needs satisfaction not available to those that limit their activities to the domestic
market place.

PUSHING AND PULLING FACTORS

PUSHING FACTORS
Experience working
Many workers Parkson has more than 5 years working with Parkson. Staff are our greatest asset a
company in which the operation will be more easily managed by them.The staff is committed and this
can prevent the occurrence of large errors in the operation. The company also invested time and money in
recruiting and permanent intheir forms.
The location is good
All Parkson stores are located in strategic areas, particularly in urban and residential areas. Customers can
access to Parkson stores easily. Most of Parkson stores located in the buy - side with part of it is strong
and tenants in the complex.
A strong financial background
At this time, Parkson has a strong financial position and is supported by the Lion Group.With a strong
financial position, management may open new branches in Malaysia.
Product Quality Goods
Parkson has been known retail brands in Malaysia. At this time, Parkson has beenselling quality goods to
customers. Retail goods offered products are branded materialsat affordable
prices. Goods - merchandise was ordered from local suppliers andinternational suppliers.

Support from vendor


Parkson has a strong relationship with the vendor since it operates. Good support fromvendors is
very important for companies to succeed in the industry where companies can get the lowest price and at
the same time the company also helps vendorsindirectly
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PULLING FACTORS
Alfred Cheng, managing director of Parkson Retail Asia was said , according to market
consultancy Euromonitor, retail sales by value in the department store sector are projected to grow 4.5%,
9.1% and 10.7% for Malaysia, Vietnam and Indonesia respectively between now 2015. Establish 24 years
ago in Malaysia, Parkson is now the nations second largest department store operator, with chain 0f 36
stores in 24 cities in a market share of about 20% . Is also operates sores in Vietnam, where it controls
about 36% of the department store sector. Earlier this year, it entered the Indonesian market through the
acquisition of Centro Retail, a local chain of department store focused on the middle class.Cheng expect
to see dramatic growth in Indonesia over the next few years, and plan have already been drawn up for
more Parkson stores across a dozen cities in the country.
Indonesia expansion
With a current market share of just 2.5% in Indonesia, however, Parkson Retail Asia could face a
tough time stabling a foothold in the middle-to upper-middle-class consumer market there. Indeed, it
faces head-on competitionwith other department store operator such as Sogo, Debenhams and Metro as
well as local players such as Matahari and Ramayana and other speciality stores or standalone outlets
offering the same product. That could see Parkson Retail Asia struggle to gain headway in the world
fourth most popular nation. Cheng isnt worryyied, though. To take on his rivals, he intends to have the
compony focus on fashion and cosmetics for a young, contemporary market, particularly in Jakarta and
Bali.

Meanwhile, he plans to pursue a dual-brand strategy in Indonesia, ehich will see it leverging on
the widely known Centro brand to capture the underserved middle-class market and expand its network

to at least 12 or 13 cities in Indonesia. Cheng will also open new Parkson department stores to meet the
demands of the Indonesia upper class in first-tier cities such as a Jakarta, Medan and Surabaya. Cheng
believes that Parksons size and reputation will enable it to attract a wider base of international brands
into its fold.
Also,the Indonesians already know our brand, since they tend to travel a lot in Malaysia and they have
been asking for our brand for a while now. So, that will shorten our brand-building process in Indonesia.

Lesson From China


To successfully enter the Indonesian market, Parkson can also use the experience gained from its
operations in Chna, which is controlled under a separate compony listed in Hong Kong Parkson Retail
Group of which is also managing director. Parkson is the first department store operator to up set its
store in 1994 in Beijing and nw operates 50 outlets in 23 provinces across the country. How did Cheng
manage to build this Malaysians brand into most successful department store operator in China? One of
our advantages was being there early he says. To be sure, when Cheng broughParkson to China, the
department stire sector in the country comprised a handful of fragmented operators
We were the first to introduce a brand with a personality and, over the years, we have developed
standard of consistency and service that set us apart from our rivals
Parkson also hires mainly local talent, which allows it to better understand the needs of each
market and tailor the merchandise according to customer demands. Indeed, even difference in the weather
in each city in China plays a part in influencing the size and colour of the apparel customers look for.
Parkson currently hires some 13,000 staff across China, of whom just 40 are expatriates.
At the end of the day, its the merchandise that draws the consumer and we have platform experience to
offer our customers what they need says Cheng
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Understanding your customers better than your competitors is the key to success in this sector. Coming
out on top in the Chinese market gives us the confidence to operate in other countries
That experience will certainly help Singapore-listed Parkson Retail Asia, which will hold all of its
department stores outsides China. Indeed, Parkson is also exploring opportunities for growth in other
Southeast Asia markets and will become the first department store operators to enter Cambodia when it
opens its first outlets in Phnom Penh in 2013. In total, Parkson runs about 50 outlets across Southeast
Asia, with profits hitting S$36 million for FY ended June 30, up about 60%year-to-year (y-o-y) on the
back of S$367 million in revenues, up 10% y-o-y.
We have branded ourselves as a fashionable,family department stire targeting the middle to upper-middle
classes in the markets that we in Chengs says
In each country we have tailored our merchandise to appeal to the local consumer, even though certain
more high-profile stores such as the Parkson outlets in KLCC and Pavilion Kuala Lumpur see a higher
volume of tourist
Parkson Retail Asia closed its first day trading at S$1.13, with 35.5 million shares changing
hands. At these levels, the stock has a market capitalization of S$765 million, or 18 times earnings. After
the listing, parentscomponyParkson Holdings Bhd- which is controlled by Parkson Retail Asia chairman
Cheng HengJem- will hold a 70.5% stake in the compony.
listing is Singapore at this time is the right thing to do because we have just entered Indonesia and
announced a new store in Cambodia
Based on our growth profile and ability to execute, we are bullish on longe term and believe our equity
vqlue will be roth a lot more than the market recover The Edge Singapore

SUCCESS RECIPE AND FORMULA

According to Parkson, there is. Especially in knowing who the relevant shoppers are and how
to reach them.Parkson has been a household name in Malaysia for the last 20 years, but to to help propel
the chain toward becoming a premier retail brand, Parkson needed the right tools to turn its masses of
data into accurate and significant information.
The Parkson chain
Established in 1987, Parkson Corporation Sdn. Bhd. (Parkson) is the retailing arm of the diversified Lion
Group, and has rapidly become one of the largest retail chains in Malaysia. Parkson operates on the tiered
store/labels concept with three different store formats selected based on the retail market for each
location. To date, Parkson boasts 31 stores operating nationwide in Malaysia. Its premium brands,
Parkson Pavilion and ParksonSuria KLCC, offer a whole new store environment with contemporary retail
presentation, while its Parkson Grand department stores cater to middle- and upper-income families with
a selection of merchandise focused on style, quality and variety. For those in the middle- to lower-income
tier, ParksonRia provides variety and quality at affordable prices.Parkson is also present in Vietnam and
China. In China, it is one of the largest foreign-owned retailers, with operations in prime locations across
26 major cities.

Understanding the customer


In the effort to maintain its status as a household name, Parkson is always looking for ways to optimize its
market reach, customer understanding and revenue. To take its business to the next level, the company
needed insight into customer behavior. After several months of extensive evaluation, Parkson chose SAS
Customer Intelligence to help achieve its objectives. SAS had already demonstrated itself as the best
business intelligence vendor with global brands such as Office Depot, 1-800-

FLOWERS.COM, Staples and Federated Department Stores. So Parkson embarked on a three-year


investment to implement SAS Customer Intelligence throughout its stores across Peninsular and East
Malaysia. The SAS solution uses data mining for predictive analysis of customer trends and behavior
(customer segmentation), allowing the retailer to have a clearer understanding of customer behavior.
Armed with this information, Parkson is able to enhance its marketing campaigns in a three-pronged
approach, including recency, frequency and monetary analysis, in an effort to increase shopper visits and
encourage greater spending at its various outlets.

Reaping from intelligence


Since the implementation of SAS, Parkson has successfully undertaken several campaigns to identify and
reach its relevant shoppers. Parksons General Manager Management System, Lee Kong Huat, shares
that it is always the intention of the retailer to minimize the cost of running marketing campaigns, but
strive for optimal results.

An example of how SAS helped Parkson achieve this was during the Parkson Members Day promotion,
when mailers were sent to pre-selected members of BonusLink (Malaysia's premier multipartner
consumer rewards program). Using SAS, Parkson was able to identify the best pool of shoppers to send
the mailers to, says Lee.

Upon implementation of the SAS solution, the number of shoppers responding to Parksons
mailers increased by 40 percent against the annual average. In addition, Spending per shopper amongst
those who responded to the mailers was also an average of 20 percent higher than those who did not
receive the mailer. SAS also helped Parkson in a churn campaign targeting members who had stopped
shopping at Parkson. With SAS, the company was able to identify members who could potentially be
retained and helped Parkson reverse their churning behavior. As SAS helps single out the relevant
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shoppers for Parkson those who visit their outlets frequently and have greater spending power the
company can now understand each of the customer segments better, including information about their
favorite brand, spending power, types of purchases and more.

The SAS model provides us with a much more comprehensive and systematic way of analyzing the data
we have. It points out methods to increase our mailer response rates and the efficiency of our routine
campaigns -- with the same budget, says Lee, adding that the customized reports provided by SAS have
helped the company speed up its decision-making process.

We are definitely seeing significant ROI from Parkson outlets nationwide as SAS allows us to better
understand our shoppers and craft more effective campaigns that focus on customers needs, habits and
push-points.

Moving forward, Parkson plans to implement several campaigns tailored to the different segments and
needs of existing and potential customers.

Armed with SAS, we can identify the best opportunities for us and are looking forward to exciting times
ahead as we move forward with plans to provide a richer shopping experience with the right choices,
variety and great ambience and to attract both planned and impulse buys, adds Lee.

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CONSTRAINTS & OTHER CONSIDERATIONS,SUMMARY& CONCLUSION


In overall, a lot of factorsto supportParksonthroghtglobalization. That because
Parkson pulling factors are very efective. For example,Parksonhasestablish in
malaysianmarketsmore than20years, has over30branchesthroughout thecountry.
This isshownsthatParksonhas astrongorganization structureand thepotential to
expand further.The other factor is pulling factor are exits from a few contry around
south east asia. With economic condition aredifferentin every country,that will
support this organization to moredireclyproactivlyexstandthebusinessempire. For
exampleinVietnamandIndonesia,this countryhasa lotofpeopleandwillopen
upmanyjob opportunitiesto the people ofthecountry. For the future, I am sure that
Pakrson will be another big global brand in the world.

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REFERENCE

http://www.lion.com.my/WebCorp/phb.nsf/Intro
Czinkota, Michael R., Ilkka A. Ronkainen and Michael H. Moffett. Fundamentals of
International Business. Mason: South-Western, 2004.
http://sbaer.uca.edu/publications/international_business/pdf/01.pdf
http://www.sas.com/success/parkson.html
http://wwwnorismaieja.blogspot.com/2009/04/objektif-utama-analisisperniagaan.html
http://wwwnorismaieja.blogspot.com/2009/04/parkson.html
http://www.theedgemalaysia.com/features/195919-parkson-retail-asia-bullish-ongrowth.html
The Edge Financial Daily, Novermber 10, 2011

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