GRIGGS UNIVERSITY INTERNATIONAL MBA PROGRAM ------------ CAPSTONE PROJECT REPORT FORMULATION OF BUSINESS STRATEGY ON PRINTING PRODUCTS FOR VIETTEL NEW SERVICE DEVELOPMENT COMPANY HA NOI - 2010 ACKNOWLEGEMENTS Through the study process of Master in International Business Administration Program - Griggs American University, Group 8 GaMBA01.N03 class has learned and accumulated much valuable practical experience to apply on current work and future. We would like to extend our sincere thanks to the Program for facilitating our group during the research and implementation of thesis. Thanks to enthusiastic teachers who have taught for the past 16 months Sincerely thanks the leadership of Viettel New Services Development Company for their enthusiastic help, sufficient documentation provision and the best facilitating to us in fulfilling this graduation thesis Due to limited time and experience, so our mistakes are unavoidable. We do hope to receive valued reviews and comments of all teachers and you for more complete and practical report.
Sincere thanks Hanoi, 30th May 2010 Group 08, Class GAMBA 01.N03 CONTENTS TRANG PHỤ BÌA .Error! Bookmark not defined.3 LIST OF SYMBOLS AND ABBREVIATIONS.5 LIST OF TABLES AND CHARTS.5 2 LIST OF FIGURES AND GRAPHS. 7 CHAPTER I:THEORETICAL BASIS OF DEVELOPING BUSINESS STRATEGY.Overview of the corporate business strategy. Basic characteristic of business strategy. Roles of business strategy.
Business strategy establishment process.Defining the corporate strategic vision, missions and objectives.External environment analysis. Macro environment analysis (PEST). The sector environment analysis. General opportunities and challenges of the enterprise.
The corporate internal environment analysis. The corporate recourse analysis. Defining the corporate competitive advantages. Leading expense strategy.
Market centralization or focus strategy. Selection of the optimal strategy.The strategy analysis tools. External Factor Evaluation Matrix (EFE). Internal Factor Evaluation Matrix (IFE).
Competition image matrix. Quantitative Strategic Planning Matrix.25 CHAPTER II: ANALYZING BUSINESS ENVIROMENT IN THE PRINTING FIELD VIETTEL NEW SERVICE DEVELOPMENT. General introduction of Viettel New Service Development Company 2. The company’s name.
Establishment and development history. Area of business. Major Service Products. Defining the strategic vision.
Present organization structure of the Company. Analyzing the internal factors. Analyzing strengths and weaknesses of resources. Marketing capability analysis.
Analysis of organization and administration competence. Analysis of financial resources. Analysis of human resources. Analysis of technology use.
Analysis of the information network system. Analysis of the present competitive advantage of the Company. Analyzing core competency of the Company. Assessing the strengths and weaknesses of the Company - Internal Factor Evaluation Matrix (IFE).
Analyzing enternal impacts. Analysis of factors of macro environment.1 The Impact of economic environment. Effect of law, government and politics. Cultural and social influences.
Impacts of demographic enviroment. Impact of Technology. Impact analysis from printing industry environment. Risk analysis of potential rivals.
Analysis of Customer’s pressure. Threat analysis of alternative products. Analysis of supplier pressure. Analysis of the pressure of competitors.
Competition image matrix.External Factor Evaluation Matrix (EFE) and challenges and opportunities of the Company.62 CHAPTER III: BUSINESS STRATEGY DEVELOPMENT FOR PRINTING PRODUCT IN VIETTEL NEW SERVICE DEVELOPMENT COMPANY BY 2015. Tasks and objectives of Viettel New Service Development Company for printing products by 2015. Grounds for determining objectives:.The objectives of Viettel Development New Service Company in printing service until 2015. Developing strategic plans.
SWOT Matrix of Viettel New Service Development Company. Main strategy matrix. Analysis of the proposed strategic plans. Feasible strategy selection.
Quantitative Strategic Planning Matrix (QSPM). Organizational structure solutions:. Financial and investment solutions. Information system solutions:.
As for the State. As for the printing industry:. 931 LIST OF SYMBOLS AND ABBREVIATIONS IFE Matrix: Internal Factor Evaluation EFE Matrix: External Factor Evaluation SWOT Matrix: Strength, Weakness, Opportunity and Threat QSPM Matrix: Quantitative Strategic Planning Matrix LIST OF TABLES AND CHARTS Table 1-1: SWOT Matrix.26 Table 2-1: Source of capital and capital structure of Viettel Corporation.34 Table 2-2: Internal Factor Evaluation Matrix (IFE).43 Table 2-3: Vietnam's GDP growth rate for the period of 2001 - 2009.44 Table 2-4: Vietnam's population from 1994 to 1997 and estimated until 2010.47 Table 2-5: Comparative prices among competitors.57 Table 2-7: Competition image matrix.62 Table 2-8: External Factor Evaluation Matrix (EFE).64 Table 3-1: Paper printed product structure in the next five years may fluctuate as follows:.67 Table 3-2: Forecast on Viettel Corporation's consumption of products by 2015.68 Table 3-3: Viettel Venture’s SWOT Matrix.70 Table 3-4: Main strategy matrix.73 5 Table 3-4: Production and business results of some large printing enterprises summarized as follows:. QSPM Matrix of Viettel Venture Company - S-O strategy Group.
QSPM Matrix of Viettel Venture Company - S - T Strategy Group. QSPM Matrix of Viettel Venture Company - W - O Strategy Group. QSPM Matrix of Viettel Venture Company - W - T Strategy Group.80 Chart 2-1: GDP growth rate quarterly.44 Chart 2-2: Structure of the development trends of the printing industry in the world expected for 2010. 49 Chart 2-3: Growth of printing enterprises and production of printed pages.55 Chart 2-4: Distribute printing industry's revenue in areas.56 Chart 2-5: Distribute the number of the enterprises in areas.56 LIST OF FIGURES AND GRAPHS Figure 1.1: Strategy planning steps.2: five competitive forces (M.3: The process of identifying sustainable competitive advantage.19 Figure 2-1: Master Plan of Viettel Printing Factory.
38 Figure 2-2: Design plan of product circulating flow. Overall design solution of the complete line. 39 Figure 2-5: solution for printing invoice. 40 Figure 2-4: Technical solution for printing and finish part.
The difference between the business results of foreign companies and domestic companies. 60 PREAMBLE Imperativeness of study theme Today, in the background of globalization, fierce competition has been taking place in all areas of business, the most important and necessary matter for a corporate 6 who wants to survive and develop in the marketplace is that its direction has to be driven on a proper road and in accordance with the frequent changes of environment aimed to achieve the appropriate adopt and ensure its sustainability. To do this, businesses must identify and establish their own business strategies, because a business strategy is the foundation and guideline for all activities of a business. Planning business strategy will help corporate deeply understand its operation environment, as well as identify opportunities, strengths, weaknesses and risks thereby, it can promote their strengths, take the opportunities, limit weaknesses and minimize the risks in their business activities.
Therefore, in the economy market of present fierce competition, to win successful business, corporate must understand clearly the factors of the business environment, to be able to work out appropriate business strategies. Only when doing so, products and services can compete with those of competitors, not only domestically but also other countries in the region, with a view to be towards a better future for the survival and development of the businesses. Printing industry belongs to the system of material production sectors in the national economy, and plays an important role in the process of producing publications serving the needs for economic, cultural and social information in the current life. Products of printing industry are various and abundant, including newspapers, magazines, advertising, communication and pictured publications, packaging, trademarks, greeting cards etc., printed on paper or different materials.
Along with the increase of social demand for printing quality, the printing process requires modern technology, machines and equipment and technical means for production. Vietnam economy has been joined in international organizations such as AFTA, WTO and so on, so the printing industry has to face with a new business environment, a fierce competition on the domestic and foreign market. For this reason, an imperative issue for the printing enterprises right now is that they should establish their own suitable business strategy to continue survival and development. Viettel Printing Factory of Viettel New Services Development Company is established with the immediate goal is to serve the large printing demand of the Viettel Corporation.
Currently, the factory has come into operation. First of all, it is conducting printing of local products of Viettel Corporation. Therefore, there has not had any long term strategy for the company's printing services. According to 7 orientation of leadership of Viettel Corporation, Viettel New Services Development Company will penetrate deeply and extensively into Vietnamese and international printing market.
To advise the leadership, we have selected the theme "Establishing the business strategy of printing products of Viettel New Service Development Company" aimed to contribute to improvement of business efficiency and competition capacity in the printing field of the Company. Purposes of study: As analyzed in selected subjects, the business environment of the printing industry is more and more difficult; therefore, "Establishing the business strategy of printing products of Viettel New Service Development Company" is conducted to reach the following objectives: - Identify strengths and weaknesses, and realize the opportunities and challenges of the Company. - Suggest some strategies that companies can choose to do business printing products with high efficiency. - Take solutions to implement selected strategies.
The scope of study: - Study period: From 2010 to 2015 - Study space: Internal structure of Viettel New Services Development Company, and area of Viettel printing factory. - Object of study: the study period, objectives and conditions of study data only focus on some basic issues such as macro-environment analysis, industry environment analysis and Company's internal environment analysis, from which the business strategies of the Company’s printing products are established. Study methods: Data collection: - The primary data is collected by observing practical situation at the Viettel Printing Factory, talk and discuss with leaderships of Company…. … - The secondary data is synthesized through the Company's reports, reference to relevant materials on books, newspapers, magazines, by Department of Statistics.
Method of data processing 8 - Methods of comparison, analysis and aggregation: data from the comparative reports over years, analyzing why and aggregating to give comments. - Statistical method: making statistics for tables, charts and data from which conclusions and trends to assess the operating situation of the Company are drawn - Expert method: consulting the experts’ opinion in the printing field. - Method of SWOT matrix analysis: technique to analyze and process study results of operating environment by combining strengths, weaknesses, opportunities and risks, from which a strategy is formulated in a scientific manner. Theme’s structure: Apart from the preamble and conclusion, the theme consists of 3 chapters: Chapter 1: The theoretical basis for developing business strategy Chapter 2: Anaylysis of business enviroment in printing filed of Viettel New Service Development Company Chapter 2: Developing business strategy for printing product of Viettel New Service Development Company by 2015.
9 CHAPTER I THEORETICAL BASIS OF DEVELOPING BUSINESS STRATEGY 1.Overview of the corporate business strategy 1.Conception The term "business strategy" is commonly used in recent times and the concept of business strategy has been made with different approaches by some scholars such as Alfred Chandler, Fred R. However, in short, the essence of business strategy is: “a set of goals and policies, and plans which are primarily to achieve the main goals, indicate clearly what business activities a company is and will do, and to what area of business”. Strategy levels: In any organization, the strategies exist in several different levels - spreading from the entire enterprise (or group of firms) to each individual in which he/she work. The corporate strategy: As a strategic level refers to the whole company.
The strategy mainly refers to the list of products and diversifying directions in order to use the best of strengths of the company. In other words the main question of the strategy is: “In what area should organization compete?” Business strategy: also called the product strategy or competitive strategy, because business competition in the market is actually in each product. Business strategy for each product must answer questions such as: which objectives to achieve? Which competitive advantages required achieving the target? And who are the main competitors? The key point of business strategy is to identify and develop competitive advantage of enterprises in the market. Functional strategy: Such functional strategies as marketing, finance, human resources management etc., need to be combined to create competitive position for business strategies.