GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT BUILDING BUSINESS STRATEGY PERIOD 2010 - 2015 FOR VIETTEL POST JOINT - STOCK COMPANY 1 TABLE OF CONTENT Page TABLE OF CONTENT 2 TABLE OF ABBREVIATIONS 3 INTRODUCTION 4 CHARTER I: THE SCIENTIFIC BASIS OF STRATERGIES 8 AND STRATERGIC MANAGEMENT IN BUSINESS 1. STRATEGY AND STRATEGIC MANAGEMENT 8 1. CONTENT OF BUILIDNG BUSINESS STRATEGY 17 1. BASIC CHARACTERISTICS OF POST SERVICES 26 CHAPRTER II: ANALYZE THE ACTIVITIES OF VIETTEL 29 POST JOINT-STOCK COMPANY (VIETTEL POST JSC) FROM 2006 TO 2008 2.
INTRODUCTION ABOUT THE VIETTEL POST JOINT STOCK 29 COMPANY 2. ANALYZE OF BUSINESS ENVIRONMENT 46 CHARTER III: ILD BUSSINESS STRATEGY FOR 52 VIETTEL POST JOINT STOCK COMPANY IN PERIOD 2010 – 2015 3. PURPOSES OF BUILDING BUSINESS STRATEGY 52 3. BACKGROUNDS FOR BUSINESS STRATEGY BUILDING 54 3.
BUILD BUSINESS STRATEGY 55 3. RECOMMENDATIONS 68 CONCLUSION 70 LIST OF REFERENCE 72 2 TABLE OF ABBREVIATIONS MIC Vietnam Ministry of Information and Communication Viettel Military Telecommunication Corporation – Ministry of Defense Viettel Post Viettel Post Joint Stock Company – Military Telecommunication Corporation VnPost Vietnam Post Company VNPT Vietnam Posts and Telecommunications Group WTO World Trade Organization 3 INTRODUCTION THE NECCESSITY OF THEME The topic “ Building business strategy period 2010 – 2015 for Viettel Post Joint-stock company” of groups of four students at class GAMBA01, N01 - Global Advanced Master of Business Administration collaborated between Griggs University(USA) and Hanoi National University( Vietnam) is performed with the following essential needs. First of all, this topic reflects partly the result of four learners after fulfilling the program of Global Advanced Master of Business Administration( hereby called “program”). How it is successful( basing on criteria of the program) is an important clue to make decision whether the learners( or the authors of this theme) can be certified to graduate or not.
Secondly, Viettel Post JSC was originally a State Limited Company with one member called Viettel Post, belonging to Viettel Corporation, Ministry of Defense of Vietnam. Its equitization has been done since July of 2009 according to Certificate of business registration issued by the Department of Planning and Investment of Hanoi. The construction of business strategy after equitization is an urgent requirement for Viettel Post JSC, which determines the survival of the transferred business operating under the new mechanism as well as meets the demands of the shareholders (the owners of the company). Thirdly, although it became a joint-stock companies but Viettel Post JSC is a subsidiary of Viettel (business accounts for 68% of charter capital of JSC Viettel Post).
Considering the perspective of mission and vision, Viettel Post SJC is an inseparable part of Viettel in the process of "becoming business postal and telecommunications in Vietnam and top-name in the world" 1. While in the field of telecommunications, after more than five years of market participation, Viettel has become the number one mobile business in Vietnam and ranked 36th in the world 1 Viewpoint of development of Viettel Corporation (Viettel) 4 (end of June 2009), Viettel is still a business who accounts for very modest market share in Vietnam and has never been known on the world map postal in telecommunication up to now. The construction business strategy for Viettel Post JSC to realize the vision and mission as well as his own Viettel become urgent than ever. OBJECTIVES OF THE THEME Before the urgent demands mentioned above, the implementation of the theme aims to the following purposes: Firstly, Clarifying the questions with theoretical calculation regarding strategy and strategic management in production and business activities.
In addition to systematizing knowledge of strategic management, research topic is the influence of political cultural factors to the development and implementation of business strategy. Second, on basis of the science of strategic management have been studied, the topic focused analysis of a comprehensive business aspects of the Viettel Post JSC from 2006 to 2008 and six months of 2009 to determine business objectives and development strategies which appropriate for this enterprise after privatization. Thirdly, in addition, the project also focuses on building solutions for the deployment of successful business strategy which has worked out, and states on a number of recommendations for management agencies to state a improve mechanisms and policies related to business postal services in the whole country as well as expanding business abroad. SCOPE OF STUDY (1) Last time: Data is used as the basis of the theme taken from 2006 to 2008 and six months of 2009.
This is the time Viettel Post JSC has operated in the 5 model State Limited Company with one member. It is also the period before privatization of this company. (2) Space: Viettel Post subject does not see the JSC as an independent entity but places it in relationship with other postal enterprises as an integral part of Vietnam postal sector. RESEARCH METHODOLOGY To implement the objectives of the theme set out, in terms of methodology, we who write this thesis mainly based on the theory of strategic management and strategic management experience in Corporation Viettel (Viettel) and Postal Corporation Viettel in last time.
On that basis, combined with specific business environment, the writers build business strategy period 2010 - 2015 for the Postal Corporation Viettel and also set out a system of solutions to successfully implement that strategy. With such logic problem sollution, the research methods used in the process of implementation topics include: The method of statistical , analysis: in this theme, this method is mainly used to evaluate the operation of Viettel Post JSC 2006-2008 period and 6 months of 2009 and analyze the strengths, weaknesses, opportunities and challenges of the business, from which to set out appropriate strategy in the period 2010-2015. EXPECTED RESULT The writers of this topic expect that this subject will answer thoroughly three main questions: First, what is the position of Viettel Post? Second, How will Viettel Post JSC be like in 2015? Third, what should Viettel Post JSC do from 2010 to 2015 to become the company such in above answer in 2015? 6 TOPIC’S NEW Strategy and strategic management in business are not entirely new problems; however, coming from the point of "not thinking about old problems are not new", people who write theses hope to inquire, detect and resolve a number of theoretical questions that contributed to the complete theoretical system of strategies and strategic management of business and strategic planning and implementing strategic solutions period 2010-2015 for the Postal Corporation Viettel. Indeed,with the same theoretical foundation of strategic management, but in each circumstance, each specific business environment, the administrators certainly have different view, vision and direction .Theory on strategic management hence is manipulated in reality by each different method.
Therefore, although the issue is no longer new research, we still bravely choose to make thesis. STRUCTURE OF THE THEME Being consistent with the meaning, purpose and methods of research have above, the project is structured into 03 chapters with the following content: Chapter 1: The scientific basis of strategies and strategic management in business. Chapter 2: Analysis of operation of the Postal Corporation Viettel period 2006-2008 and 6 first months of 2009 Chapter 3: Building business strategy for Viettel Post Corporation in the period 2010-2015 7 CHARTER I THE SCIENTIFIC BASIS OF STRATERGIES AND STRATERGIC MANAGEMENT IN BUSINESS 1. STRATEGY AND STRATEGIC MANAGEMENT 1.
Definition of strategy Any business begins the process of their business by setting goals to achieve in the long term. However, in order to achieve that goal, administrators need to set up business different means and ways, actions or otherwise, the administrator must build a specific strategy. Strategy concepts dated from ancient Greece, starting from "strategos" that means the role of generals in the army. In human history, but each stage, concepts are developed into different levels.
Many rationalist military strategy mentioned on many aspects, but the basic point of discussion is a strategy in which the enemy can crush opponents - including stronger opponents - if they lead the opponents into posture convenience for the implementation of its capacity. In the context of competition, local competition can link with existing success of each opponent in the market, and customers are people who acknowledged that success. Opponent wins in the competition is one who has been the highlight of the customer's mind with the important features meet their needs. Until now, there are many definitions of strategy, according to imagine that the author of each definition it has much difference.
According to Chandler, one of those who initiated the first strategic management theory, strategy is "to identify goals, long-term basic purpose of the business and applying a sequence of actions as well as the distribution of resources necessary to implement this goal”2 Chandler, A. Strategy and Structure. Strategy and Structure. 8 In 1980, Quinn Glass has introduced more general concept "strategy is a pattern or plan which integrates major goals, policies, and action sequences into a cohesive overall closely”3 Then, in 1999, Johnson and Scholes redefine strategy in many changing environmental conditions "strategy is the orientation and scope of an organization is to win long-term competitive advantage for organizations through the formatting of no resources in the environment changes, to meet market needs and meet expectations of stakeholders”4 For multi-view definitions on strategy, Mintzberg excavated aspects of strategic management with five letters P, including: Plan: series of actions intended consistently Pattern : being consistent about behavior over time, may be intended or not intended Position: matching between the organization and its environment; Perspective: how to deep awareness about the world; Ploy: specific method to deceptive opponent In addition, the strategy is defined by the level of the nature, at least three level strategy: strategy company level; strategy business unit level and strategic functions.
Currently, with the trend of globalization, companies are fast diversifying their activities beyond national borders, freedom, global strategy as the first choice with economic issues cosmopolitan Business. However, in our opinion, those who made this topic, strategies are defined as means or as an explanation about the direction for business operations to meet business objectives in the long term which were coined. Strategy and Change: Logical Inscrementalism. Homewood, Illinois, Irwin.
Exploring Corporate Strategy, 5th Ed.Prentice Hall Europe. 9 Strategic management is understood as a science as well as an art, through which administrators plan, organize the implementation, control and evaluate business decisions in order to achieve business goals long term defined. With this concept, strategic management including continuous action: environmental assessment (internal and external) to build strategic execution strategy; and inspection, strategy assessment. Strategic management is originated from business policy, strategic management associated topics of long-term planning strategy.
However, contrary to the strategic management, policy-oriented business administration generally, mainly directs at the inside, interested in the integration work among the functions of the organization. Meanwhile, strategic management is not only interested in the integrated functions within the same policy's business but also points in the environment and strategy. "Therefore, they use the term strategic results rather than business policy. Task of strategic management There are five intercommunicated tasks in strategic management including: Creating a prospect strategy which describes the image of the future business, stating where businesses want to address and what kind of business want to become? Setting goals – derogating prospect strategies into concrete results the business must achieve; Building strategies to achieve desired goals; Execution and operating selected strategies effectively and efficiently; Evaluating performance and initiating adjustments prospect, long-term orientation, goals, strategies or self-made based on experience, changing conditions, ideas and new opportunities .Yiu, (1982), “Theory an Research in Strategic Management: Swing of the Pendulum”, Journal of Business.
Benefits of strategic management The study showed that, if applying strategic management, business will achieve better performance compared to firms who are not implementing this process 6. If there is achievement of the appropriation between environment and business strategy, its structure and processes will create positive effects on the performance of the business 7.