Cargill Analysis

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Proposed Expansion of International Operations:

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Rice Processing in Cambodia

Cody Huddleston

Week 10 - Final Project - Part 1

International Business Management

Norwich University MBA Program

November 12, 2011

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Table of Contents

Executive Summary 3

Part I - International Strategy 4

The Cargill Strategy 4

Cambodia: A Push into the Rice Market 5

SWOT Summary 9

Part II - Country Scenario Analysis 10

Market Overview of Cambodia 10

Political Environment 10

Economic Environment 12

Social Environment 16

Technological Environment 19

Environmental Environment 20

Legal/Regulatory Environment 21

Part III - Market Analysis 25

Global Rice Demand 25

Cambodia’s Competitive Strengths 27

Cambodia’s Competitive weaknesses 28

Five Forces Market Analysis 28

Threat of New Entrants 28

Bargaining Power of Suppliers 29

Bargaining Power of Buyers 29

Threat of Substitute Products or Services 30

Rivalry among Existing Competitors 30

Cargill’s Competitive Strengths 30

Cargill’s Competitive Weakness 31

Conclusion 34

References 35

Executive Summary

The growth of the agricultural sector in Cambodia presents a unique opportunity for Cargill's rice business. In its ongoing drive for diversification, scale and entry into new markets Cargill can grow its global share of the rice trade by entering Cambodia as a resource play. Gaining access and early entry into Cambodia's rapidly growing rice market, Cargill can reduce its business and political risk by developing a consistent supply of rice to its global customers.

Cambodia has doubled its rice exports in the last few years to almost 1 million tons and it is aggressively using government projects, foreign-direct investment, business partnerships, development banks, inter-governmental loans and education to exponentially grow...