VIETNAM NATIONAL UNIVERSITY, HANOI HANOI SCHOOL OF BUSINESS Doan Duc Toan BUSINESS STRATEGY FOR TRUNG NGUYEN’S TEA PRODUCT Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISORS: 1.NGUYEN NGOC ANH 2. HA NGUYEN, MBA Hanoi – 2007 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 1 Table of contents Abstract……………………………………………………………………….ii List of figure………………………………….……………………… ………iii List of table……………………………………. Necessity of the thesis. Key research area.
Constructions of the thesis. 5 Chapter 1: Literature review 1. Matching strategy to a company’s situatition. Industry Development Stages 10 1.
39 Chapter 2: Case study of Trung Nguyen corporation on tea industry 2.1 Case study method.1 Overall Market Growth 44 2. Product and Production Technology 52 2.6 Entry and Exits 63 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.7 Capital Investment Requirements 63 3. Trung Nguyen Company's Competitive Position 64 2.1 Industry Life Cycle 67 2.4 Findings 76 Chapter 3: Recommendation and conclusion 3. Successions and the action plan.
Strategies in Marketing 79 3. Strategies in Production/Operations 83 3. Strategies in Finance 86 3. Strategies in Human Rource 86 3.
88 REFERENCES APPENDIX LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 7 LIST OF FIGURES Figure 2.1 Tea Area Figure 2.2 Area Under Cultivation Figure 2.3 Province Growing Tea Figure 2.4 Tea Out Put Figure 2.5 Tea Export LIST OF TABLES Table 2.1 Growth Of Tea Area Table 2.2 Growth Of Tea Area In Province Table 2.3 Growth Of Tea Output Table 2.4 Growth Of Tea Export Table 2.6 Comparing Price Of End Product Table 2.7 Comparing Price Of Meterial Table 2.8 Comparing Price Of Meterial Table 2.9 Comparing Price Of Meterial LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 5 INTRODUCTION The first chapter will provide readers with an insight to the research area. It will begin by briefly necessity of the thesis that will be followed by the purpose of the study and research questions, key research area, methodology using for research and outline for overall thesis. NECESSITY OF THE THESIS In recently years, The Vietnam’s economy has been changed comprehensively. For few years ago, state owned company is considered as backbone of national economy, but now, we need to make an examination of it.
Appearing in strongly way private enterprise, specially, enterprises are descended from empty hands. By miraculous steps, those enterprises have stepped up onto glorious dais, up to now, when search total process of development of it, people only feel extremely miraculous and admire that can not talk by word. Trung Nguyen is one of those enterprises making miraculousness. To start by empty hand, up to now, Trung Nguyen has become a very famous company.
When looking back in the history of Trung Nguyen, one can see that Trung Nguyen had difficult initial steps, without property, traditional knowledge of business. With this difficult start, many other companies would fell they began their businesses under a much better condition. The history shows that successes only come with people who try one’s best by heart and brain. By this element but is not other things, Trung Nguyen has made a success for itself.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 8 I have been lucky having internship in Trung Nguyen for few months, both acquiring sprit and learning experience. With assignment that complete graduated thesis, I have chosen field tea, area that Trung Nguyen is newcomer. Business strategy is compared as a map that looking it, people can know which path is both reliable and shortest to succeed. Base on that, I have chosen subject: Built business strategy for tea of Trung Nguyen.
With general approach, do not go deep into the details of each aspect of business action of Trung Nguyen, expected outcome will supply more information for Trung Nguyen about tea industry in what stage of development process with characteristics and strategies to succeed in that environment. PURPOSE The purpose of this thesis is to study external and internal environment of Trung Nguyen Company to define the optimal strategy for its tea products. Research Question: How to match strategy to a company's situation? 3. KEY RESEARCH AREA The scope of this thesis is limited to: - The tea industry in Vietnam and Trung Nguyen Corporation together with its business strategies.
- Strategic choice that such a firm could apply in its own environment 4. METHODOLOGY LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 9 Methodology usually refers to the general approaches to research while method refers to techniques for gathering evidence. Therefore, methodology is a theory and analysis of how a research does or should proceed. Specific method for the case study will be described and elaborated upon later in the chapter three of the thesis.
Research Purpose A research can classify into three basic purposes exploratory, descriptive and explanatory. This study comes with descriptive and explanatory purpose more than exploratory purposes only. Research Approach The research approach of this study is qualitative. Qualitative research approaches have traditional been favored when the main research objective is to improve the understanding of a phenomenon is, especially when this phenomenon is complex and deeply embedded in its context.
Its many methodologies and techniques have helped researcher get a better grasp of a variety of management situations.3 Research Method Research method were used in this thesis is case study. According to theory, a case study approach should be used when how or why questions are being posed about a contemporary set of events over which the researcher has little of any control. This study is based on research question of how character and focuses on contemporary sets of events.4 Data Collection Method There are documentary sources, archival records, participant observation, and direct observation. Each of these data sources has their strengths and weaknesses.
Since no LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 10 single source of data have a complete advantage over all the others and given that the data sources are highly complementary, and the recommendation by the researchers that a good case study may want to use as many sources as possible. In this study data will be collected from source: document, archival records, and direct observation. Data Analysis There are two forms of analysis for the data collected in a case study: within case analysis and cross case analysis. In my study, the within case analysis will be selected.
From examines raw data using many interpretations in order to find linkages between the research object and the outcomes with reference to the original research questions. Data reduction: The process of collecting, focusing, simplifying, abstracting, and transforming the data. The purpose is to organize the data so that final conclusions can be drawn and verified. Data display: Taking the resumed data and displaying it in an organized, as table, diagram, to conclusion can be more easily drawn.
CONTRIBUTIONS OF THE THESIS Provision of an approach in building business strategy, which helps Trung Nguyen Corporation in guiding its business activities. Findings of the characteristics of environment of the tea industry in Vietnam, and the position of Trung Nguyen in this industry. Strategic analyses and recommendations in marketing, product operation, human resource and finance to improve business activities. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.
OUTLINE The thesis is divided into four chapters: The chapter one will provide readers with an insight to the research area. It will begin by briefly necessity of the thesis that will be followed by the purpose of the study and research questions, key research area, methodology using for research and outline for overall thesis. The chapter two is a summary of relevant theories connected to the research questions. Chapter three contains a case analysis to Trung Nguyen, including case study method, analysis and findings of matching strategy to the firm’s company's situation.
Chapter four recommendations and conclusions will be presented. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 12 CHAPTER 1: LITTERATURE REVIEW The chapter summaries theories connected to research questions. The literature has been collected to address the research questions. STRATEGIES A strategy is a long term plan of action designed to achieve a particular goal.
Strategy applies to many disparate fields, such as: Military strategy, Marketing strategies, Strategic management, Football strategy, Game theoretical strategy, economic strategy, Neuro-linguistic programming strategy.1 A strategy in game theory is a sequence of activities and reactions, that fully determine an agent’s behavior in a game or a business situation. The mathematically precise description of behavior is connected to computer programming and algorithms.2 In general, the plan or policy for arbitrating between multiple, concurrent requests for the use of a device. Specifically in disk device drivers, the policy for scheduling multiple, concurrent disk block-read and block-write requests.3 A strategy is a long term plan for success, to achieve an advantage. In force terms .this is the key milestones and targets for the coming year.
These are based upon the Governments PPAF requirement.4 Describes the differentiating activities an organization pursues to gain competitive advantage. Situated at the center of the Balanced Scorecard system, all performance measures should align with the organization's strategy. Strategy 1 Taken from website: en.org/wiki/Strategy 2 Taken from website: en.org/wiki/Strategy_(game theory) 3 Taken from website: biology.edu/library/SGI_bookshelves/SGI_Developer/books.html 4 Taken from website: www.uk/v3/help/glossary.htm LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 13 Remains one of the most widely discussed and debated topics in the world of modern organizations.5 While matching in a dictionary several methods for comparing words can be used. These methods are named strategies and include exact match, regular expression match, and sounder match.
The available strategies depends on the server, but a special name can be used to denote a server-default strategy.6 A plan for the conduct of a major phase, or campaign, within a grand strategy for the overall conflict. A strategy is the basic idea of how the struggle of a specific campaign shall develop, and how its separate components shall be fitted together to contribute most advantageously to achieve its objectives. Strategy operates within the scope of the grand strategy. Tactics and specific methods of action are used in smaller scale operations to implement the strategy for a specific campaign.2 MATCHING STRATEGY TO A COMPANY’S SITUATION According to Thompson & Strickland III (1997), the task of matching strategy to a company's situation is complicated because of the large external and internal factors managers have to weigh.
However, while the number and variety of considerations is necessarily lengthy, the most important drivers shaping a company's strategic options fall into two broad categories: The nature of industry and competitive conditions. The firm's own competitive capabilities, market position, and best opportunities. 5 Taken from website: www.html 6 Taken from website: www.de/dictionary/using.html 7 Taken from website: www.org/content/canvasopedia/dictionary.htm LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 14 The dominant strategy-shaping industry and competitive conditions revolve around: 1) What stage in his life-cycle the industry is in (emerging, rapid growth, mature, declining). 2) The industry's structure (fragmented versus concentrated).
3) The nature and relative strength of the five competitive forces. 4) The scope of competitive rivalry (particularly whether the company's market is globally competitive). The pivotal company-specific considerations hinge on: 1) Whether the company is an industry leader, an up-and-coming challenger, a content runner-up, or an also-ran struggling to survive. 2) The company's particular set of strengths, weaknesses, opportunities, and threats.
But even these few categories occur in too many combinations to cover here. However, we can demonstrate what the task of matching strategy to the situation involves by considering five classic types of industry environments: 1) Competing in emerging and rapidly growing industries. 2) Competing in maturing industries. 3) Competing in stagnant or declining industries.
4) Competing in fragmented industries. And three classic types of company situations: 1) Firms in industry leadership positions. 2) Firms in runner-up positions. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 15 3) Firms that is competitively weak or crisis-ridden.