ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN THÀNH PHƢƠNG BUSINESS STRATEGY OF CLEAN RICE FOR THE 2016-2020 PERIOD: THE CASE OF VIETNAMESE RICE RESEARCH CENTER- VINAFOOD1 CHIẾN LƢỢC KINH DOANH GẠO SẠCH GIAI ĐOẠN 2016-2020: TRƯỜNG HỢP TRUNG TÂM NGHIÊN CỨU GẠO VIỆT – VINAFOOD1 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Hà Nội – 2017 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 2 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN THÀNH PHƢƠNG BUSINESS STRATEGY OF CLEAN RICE FOR THE 2016-2020 PERIOD: THE CASE OF VIETNAMESE RICE RESEARCH CENTER- VINAFOOD1 CHIẾN LƢỢC KINH DOANH GẠO SẠCH GIAI ĐOẠN 2016-2020: TRƯỜNG HỢP TRUNG TÂM NGHIÊN CỨU GẠO VIỆT – VINAFOOD1 Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƢỜI HƢỚNG DẪN KHOA HỌC: TS. NGÔ VI DŨNG LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 3 Hà Nội – 2017 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 4 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula,and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration.
Hanoi, October 29th, 2017 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT I have gained huge knowledge, skill and insights from my MBA course. The course raises my capacity of administration and management up to the next level. I am now very confident in my position of management. I would like to extend my sincerest thanks and appreciation to all those who have made this Thesis to be possible.
I woud like to express my great gratitude to my supervisor,Assist. Ngô Vi Dũng, for him useful comments, remarks and engagement during my process of doing this master thesis. I would also like to thank the leaders and staff of Vietnam Rice Research and Development Center – Vinafood 1 who enthusiastically participated in the survey and provided me with valuable advice and comments during my thesis completion. Sincere thanks are extended to the Faculty of International Training - Vietnam National University, Hanoi for equipping me with huge knowledge and skills through various interesting and practical subjects.
I also would like to thanks my classmates for their friendship and reciprocal encouragement to make our class time to be unforgettable time. Lastly, I would like to give my great thanks to my wife, my kids, and my family who always standby me during the past two years and encourages me to keep moving from the beginning of my study. Hanoi, October 29th, 2017 Student Nguyễn Thành Phƣơng LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 6 Business Strategy for Clean Rice in the stage of 2016-2020: The Case of Vietnam Rice Research and Development Center – Vinafood 1 1. Summary of the results The thesis has systematized theories and studies on business strategy for rice products from related studies and proposed the process of developing strategies for developing clean rice products at Vietnam Rice Research and Development Center - Vinafood 1 including identifying objectives, analyzing internal, external and sectorial environment, setting up Internal Factor Evaluation and External Factor Evaluation.
That way, the author built the business strategy for clean rice products of the center using SWOT matrix, QSPM and found out the opportunities and challenges such as the strong development of technology of clean rice production in the world, strong current competitors with advantages in capital, technology, human resources and experience in the market which created many challenges and threats for the business activities of the center; or the strengths and weaknesses such as the ensurance of quality management standards, failure to meet customer needs of retail stores. This helped select the optimal strategy for clean rice trading of the center, helping Vietnam Rice Research and Development Center - Vinafood 1 improve its business efficiency and maximize its the profits. Applicability in practice The strategies proposed in the study will have a high applicability in practice since they were drawn from specific strengths and weaknesses of the enterprise and results of the survey with experts and managers. Moreover, the opportunities and challenges were also analyzed in line with the market situation and technology development of the economy in the country and in the world.
In addition, the basis for proposing strategies was stable with a full process of building contents. Further research orientations In order to complete this study, it is possible to add important elements in the process of building the internal and external matrix of the enterprise in order to increase the possibility of developing and proposing strategies. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com 7 TABLE OF CONTENTS TABLE OF CONTENTS. i LIST OF TABLES.
iv LIST OF FIGURES AND CHARTS. Rationale of the study. 5 CHAPTER 1: THEORETICAL FRAMEWORK .1 Concept of clean rice .2 Concept of business strategy for clean rice .3 Possible business strategies for clean rice .2 Process of building business strategy for clean rice .1Selecting and building strategic targets .3 Building strategic options .5 Organizing conditions for strategy execution .3 Experience in implementing business strategies of some rice trading enterprises .1 Experience of Vinh Long Cereal and Food Import Export Corporation (Vinh Long Food)20 1.2 Experience of An Giang Import-Export Company (Angimex) .3 Experience lesson for Vinafood 1. 21 CHAPTER 2: RESEARCH METHODS .2 Data collection methods .3 Data analysis methods.
28 i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 3: STRATEGIC ANALYSES OF CLEAN RICE TRADING OF VIETNAM RICE RESEARCH AND DEVELOPMENT CENTER – VINAFOOD 1.1 Introduction of Vietnam Rice Research and Development Center – Vinafood 1 .1 History of foundation and development of Vietnam Rice Research and Development Center – Vinafood 1 .2 Organizational structure of the center .4 Annual rice sales of the center .2 Analysis of clean rice business environment of Vietnam Rice Research and Development Center – Vinafood 1 .1 Analysis of macro environment .2 Analysis of micro environment .3 Analysis of internal environment of the enterprise. 46 CHAPTER 4: BUILDING BUSINESS STRATEGY FOR CLEAN RICE FOR THE VIETNAM RICE RESEARCH AND DEVELOPMENT CENTER - VNF1 TO 2020. Vision, mission, duties and strategic objectives of Vietnam Rice Research and Development Center – Vinafood 1 .2 Formation and selection of business strategy for clean rice at Vietnam Rice Research and Development Center – Vinafood 1 .1 Formation of strategy through the analysis of SWOT Matrix .2 Selection of clean rice trading strategies for Vietnam Rice Research and Development Center – Vinafood 1 by QSPM .3 Solutions to implement selected strategies .1 Solutions to implement the forward integration strategy .2 Solution to implement product differentiation strategy.3 Solutions to implement the market development strategy.4 Solutions to implement the backward integration strategy .1 To the State. To the Ministry of Agriculture and Rural Development.
83 Appendix 1: List of survey experts. 83 ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Appendix 2: Outline of group discussion. 87 Phụ lục 02: Dàn bài thảo luận nhóm. 89 Phụ lục 03: Phiếu khảo sát.
92 iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 1.1: Summary of EFE Matrix .2: Summary of IFE Matrix .4: Summary of QSPM Matrix .1 Group discussion results .1: Current technology of rice processing .2: Some policies to support rice trading in Vietnam .3: Quantity of rice sales of competitors in Hanoi .4: Some alternative products .5: Survey results on customers’ habits of buying rice .6 External Factor Evaluation Matrix (EFE) .7: Human reources at Vietnam Rice Research and Development Center – Vinafood 1 46 Table 3.8: Structure of human resources in terms of level of education .9: Average salary of the employees at the center .10 Internal Factor Evaluation Matrix (IFE).1: Synthesis of SWOT matrix .2 QSPM of S-O strategy group .3 QSPM of S-T strategy group .4 QSPM of W-O strategy group .5 QSPM of W-T strategy group. 67 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES AND CHARTS Figure 2.1: Organizational structure of Vietnam Rice Research and Development Center – Vinafood 1 .1: Annual rice sales of the center .2: GDP and per capita income in the stage of 2012 -2016.3: Area in contract and area of rice fields in the raw material regions of the factories .2: Process of production and operation of clean rice at Vietnam Rice Research and Development Center – Vinafood 1 .4: System of facilities and business locations .5: System of retailers of the center .1: Distribution channel of Vietnam Rice Research and Development Center – Vinafood 1. 71 v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABBREVIATION NO ABBREVIATION ORIGINAL 1 VNF1 Vinafood1 – Vietnam Northern Food Corporation 2 VRRDC Vietnam Rice Research and Development Center 3 EFE External Factor Evaluation Matrix 4 GDP Gross Domestic Product 5 QSPM Quantitative Strategic Planning Matrix 6 IFE Internal Factor Evaluation Matrix 7 SWOT Strengths, weaknesses, opportunities and threats 8 USD United States dollar 9 HACCP Hazard Analysis and Critical Control Point System vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Rationale of the study Nowadays, the strong growth of the economy has contributed to the improvementpeople’s lives.
When the lives are improved, the demand for using high quality products is also raised (Ngoc Anh, 2015). In addition, food safety is one of the topical issues in the Vietnamese market due to the lack of strict standard control from the authorities as well as the problem of ethics in production and trading activities of part of enterprises. This makes consumers anxious and worried when they usedaily products such as food and drinks. As a result, the consumers’ demand for using high quality and safe products is urgently necessary (Nguyen Trong Khanh and Nguyen Van Hoan, 2015).
Like other food items, the rice in our country is facing "barriers" in quality. This significantly influences the sales of rice ofenterprises in the domestic as well as export market. According to the Vietnam Food Association (2016), our country currently ranked third in the world in rice export turnover with annual export target of 6. However, the export market of our country mainly includes countries such as Indonesia, the Philippines, and African countries, so our rice does not have a good price.
Therefore, the issue of improving the quality of rice and developing clean rice is a basic requirement to increase export turnover as well as serve the domestic market. Moreover, it is also necessary to create a premise for our rice to be present in the fastidious markets such as Japan and European countries. In addition, according to the survey results of Nguyen Trong Khanh and Nguyen Van Hoan (2015), the current demand and market potential of clean and high quality rice products was increasing. This was evidenced by the fact that all supermarkets in Hanoi, Hai Phong, Nam Dinh, Hai Duong, Thai Binh, Bac Ninh, etc.
were mainly selling clean and high quality rice such asTam Thơm Hai Hau, Nang Xuan and BT7. At the same time, when surveying customers using rice in Hanoi, the authors found out that more than 90% of consumers did not care about the size of the rice grain or white or silverbelly.What they prioritized when choosing rice was that the rice must be clean, flexible and fragrant. This indicated that the demand for clean and high quality rice was increasing and consumers increasingly tended to buy rice from reputable brands to ensure quality standards of the rice.