Supalai's modern management in MBA institutions around the world, regardless of country or continent, teaches about "risk" and "return" in the same direction:

If you expect "low risk = low return"
If you accept "high risk = high return"
However, the teaching at Supalai Public Company Limited is different, in the opposite direction:

We teach that: We want "low risk = but expect high return"

Is this really possible? And how can it be achieved?

Typically, there are two main types of risk:
"Business risk" and
"Financial risk"

Supalai's approach to reducing "business risk" is:

  • Avoid high-risk projects and locations
  • Develop the quality of products and services to the highest standards by implementing ISO 9001:2015 standards, Enterprise Resource Planning (ERP) systems, and supporting innovation, among others.
  • Good "quality" will strengthen the "brand," which helps reduce risk while increasing revenue.
  • Expand the business both horizontally and vertically to enhance growth and achieve "Economy of Scale," which leads to lower costs and higher profits.
  • Conduct business not only on a legal basis but also must adhere to ethics and good conduct.

Supalai's method for reducing "financial risk" is:

  • Maintain a low debt-to-equity ratio and a low gearing ratio to reduce risk and enhance credibility.
  • Achieve a high credit rating = "A".
  • This results in low financial costs, enabling extensive growth in both domestic and international markets.

Supalai's growth model:
"Dual Track" develops both horizontal and vertical residential projects in Bangkok and provincial cities. Currently, Supalai is developing 250 projects in 29 provinces across Thailand. Additionally, Supalai has expanded investments abroad in ASEAN countries and Australia. Investments in Australia have grown from 1 project 11 years ago to 24 projects in 4 states and 6 cities today.
The strategies "Dual Track" and "Triple Track" aim to enhance "growth potential" and "diversify risk," effectively addressing both goals.What about "high returns"? The best way to measure "high returns" is to compare with the top 10 listed companies in the same industry. The comparative results clearly show that "SUPALAI" has better returns and lower financial risk:

The Banking and Finance magazine has confirmed Supalai's outstanding performance by ranking it number 1 for excellence and awarding it the "Best Public Company – Property and Construction Industry 2023" in the Best Public Companies of The Year 2023 ranking.

The "secret" behind Supalai's long-term success comes from its management philosophy: A comparison table between outdated management (Old Fashion Management), modern management (Modern Management), and Supalai's post-modern management (Supalai’s Post Modern Management) can be translated into Thai as follows: