20 December 2024
“Resilient and Dynamic”
“Bangchak: Entering Its Fifth Decade with Strength and Sustainable Growth”
Entering its fifth decade in 2024 is not only a milestone of success for Bangchak Corporation Public Company Limited, but also a reflection of its resilience and growth - evolving from a small oil refinery into a leading energy corporation in the Asia-Pacific region.
Narupan Suthamkasem Senior Executive Vice President, Corporate Strategy and Business Development Bangchak Corporation Plc.
The “4S” Strategy: The Secret Behind Success
Narupan Suthamkasem, Senior Executive Vice President, Corporate Strategy and Business Development, Bangchak Group, explained that the “4S” strategy is a vital mechanism driving Bangchak’s growth. The strategy focuses on creating energy Security, fostering collaborative Synergy, developing sustainable businesses (Sustainability), and seeking new growth opportunities (Scalability).
It begins with environmental scanning to assess trends and opportunities that may impact the business or create new avenues for the organisation. The gathered data is then shared with each business group to formulate strategic plans aligned with their specific goals. These plans are subsequently integrated into a consolidated corporate plan covering all five business groups. She elaborated: “This plan helps us anticipate and navigate global changes. Each plan aligns with Bangchak Group’s goals while remaining flexible enough to adapt to shifting situations.”
Communication and Participation: Keys to Success
To ensure that everyone in the organisation clearly understands the goals, the company communicates through town hall meetings to convey both the overall corporate plan and the plans of each business group. Each group then conducts separate sub-meetings to outline action plans, monitor progress, and adjust strategies in response to evolving situations. This approach reflects the Bangchak way, which emphasises the importance of employee participation in achieving success and driving growth. This approach reflects the Bangchak way, which emphasises the importance of employee participation in achieving success and driving growth.
Resilient and Dynamic
Although Bangchak is a relatively small organisation compared to other global companies, precise planning and employee collaboration have enabled it to achieve sustainable growth. Narupan views Bangchak as an organisation that prioritises teamwork and shared goals. The company not only develops business strategies but also systematically integrates sustainability through its Growth Balanced Portfolio Strategy, which balances business growth and sustainability initiatives. To ensure the entire organisation shares the same vision and moves towards the same goal, each business group sets its own Carbon Neutrality targets, with the flexibility to determine how to achieve those goals through synergy. This approach reflects Bangchak’s commitment to balancing value and virtue while advancing towards a sustainable, low-carbon society.
In the rapidly changing business environment, it is crucial to anticipate situations in advance to prepare defensive strategies or identify opportunities to “Plan Ahead to Stay Ahead.” Additionally, the ability to adapt swiftly upon recognising mistakes is essential. This adaptability is one of Bangchak's key strengths, driven by the readiness of its executives and employees to respond quickly.
Bangchak has experienced significant growth, expanding from seven subsidiaries in 2015 to eighty-nine subsidiaries today, increasing its workforce from 1,169 employees to 4,061 employees, and achieving a four-fold increase in EBITDA over the past decade. As a large organisation, Bangchak must maintain a robust and globally recognised system to thrive and remain competitive. “Every organisation has its strengths. A good strategy must align with the organisation’s capabilities. However, if an organisation can adapt quickly and enhance its strengths, it will gain a competitive advantage,” she added.
Next Steps in the Next Ten Years
When asked about her vision for Bangchak over the next decade, she shared that Bangchak aims to grow into a strong, diversified company with core businesses extending beyond the domestic market. The acquisition of BSRC, formerly Esso Thailand, was a pivotal first step in the Security and Synergy strategy, already delivering significant growth. Bangchak’s commitment to exploring and driving new S-curve businesses under the Bangchak100x target has diversified revenue streams, propelling EBITDA to 100 billion baht and total revenue to over one trillion baht across five robust core business groups. Today, Bangchak continues to demonstrate sustained growth and a solid foundation, earning recognition for its organisational management and adherence to world-class standards in multiple areas. At the heart of this success are Bangchak’s employees, who grow alongside the company and help drive it towards achieving 100x Happiness.
Narupan concluded that Bangchak’s journey from a small refinery to a globally recognised energy corporation is a testament to its adaptability and commitment to sustainability. The company’s success comes not from its size but from strong strategy, collaborative teamwork, and flexibility to adapt to change. In an era filled with new business challenges and opportunities, Bangchak is poised to enter its fifth decade with stability, powered by its “4S” strategic plan, focused on creating security, fostering cooperation, and driving sustainable growth.