GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER BUSINESS ADMINITRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY OF PV OIL VUNG ANG PERIOD 2010 - 2020 Group No: 4 - Gemba.v01 Student’s name: Nguyen Tien Dung Tran Tien Dai Bui Quang Hoan Nguyen Van Thanh VINH, 2010 CONTENTS CONTENT Pages CONTENTS SYMBOL LIST OF ABBREVIATIONS LIST OF TABLE Foreword 1 1 Why choose research projects 1 2 Objective study 2 3 Scope of research 2 4 Methodological 2 4.1 Using the theory 2 4.2 Using statistical methods 3 4.3 Using statistical methods 3 Structure of the study 3 Chapter I Establishment theoretical construction business strategy 4 1 The concept of business strategy 4 2 The role of business strategy 5 3 Analyze the business environment 5 3.1 - Macro Environment 5 - Environmental economics 6 - Environmental technologies 6 - Cultural and social environment 6 - Environment demographic 7 - Global Environment - Political and - Law Environment 7 3.2 - Sector Environment 7 - The pressure of competing suppliers 8 - Competitive pressure from customers 8 - Pressure of competition from substitute products 9 - Competitive pressure internal branches 9 3.3 Internal environmental analysis 10 4 SWOT analysis 10 5 Strategic Planning 11 6 Selection strategy 12 Chapter II Analyze the business environment and internal business 13 1 Petroleum market analysis in a North Central Province 13 1.1 Actual situation petroleum market in the region 13 The status of the petroleum storage - providing clues and 1.2 14 distribution system petroleum products in North Central 1.3 Forecasting gasoline demand in the region and vicinity 16 2 Macro environmental analysis 18 2.1 Factors Government and economical solutions 18 2.5 Technology factors 22 3 Analyzing competitive environment 22 3.1 Competitive pressure of suppliers 22 3.2 Competitive pressure from customers 23 3.3 Competitive pressure from potential competitors 24 3.4 Competitive pressure from substitute products 24 3.5 Competitive pressure internal branches 25 4 Environmental analysis of enterprises 25 Profile of the implementation of business plans produced in 4.1 25 2009 by Vietnam Oil Corporation (PV Oil) 4.2 Internal environmental analysis of PV Oil Vung Ang 26 4.4 Services and products business of PV Oil Vung Ang 27 4.9 Investment and development 31 4.2 Capital 31 5 Analysis matrix 31 5.2 Analysis matrix strategic position of the business 35 Chapter III Selection strategy 37 1 Strategic direction 37 1.1 Định hướng chiến lược 37 1.3 Mission of PV Oil Vung Ang 38 1.6 Strategic development of the company from 2010 to 39 2 Solutions strategy 39 2.1 Solutions developed infrastructure 39 2.2 Solutions identified products and services to target market 40 2.3 Financial and human solutions 40 2.4 Solutions to promote business 41 CONCLUSION 43 General conclusions 43 Acknowledgments 44 REFERENCES 45 APPENDIX 46 Overview of socio-economic development of provinces in I 46 the North Central region and vicinity 1 Ha Tinh province 46 1.1 Information 46 List of investment projects in Ha Tinh affect the consumption 1.2 46 of petroleum as fuel, reactors, 2 Nghe An province 48 2.2 Industrial Zones 48 List of projects calling for foreign investment period 2005 2.3 48 -2015 Nghe An affect gasoline consumption 3 Quang Bnh province 50 3.2 The key projects are related to consumption of petroleum 51 4 Democratic Republic of Lao People 52 4.1 Information 52 II Overview of traffic in the area 53 1 Road Network 53 - Highway 1A 53 - Ho Chi Minh Road 53 - Roads connecting the National Road No.1,and Ho Chi Minh 53 road - The ramp of the port with National Highway 1A 54 - Rail Network 55 - Railway North - South 55 - Routes across 56 - Other railway projects 56 2 River network 56 3 Ports in the region 57 4 Airports 58 Abbreviations Abbreviations Contents PtroVietnam Viet Nam Oil and Gas Group PVN PtroVietnam (Việt Nam Oil and Gas Group) PV OiL PetroVietnam Oil corporation PETROLIMEX Viet Nam National Ptroleum Corporation SWOT Strengths (S), Weaknesses (W), Opportunities (O) and Threats (T) PEST Political, Economic, Social, and Technological factors CHDCND LÀO Lao PDR DO Diezel oil KO Kasosen FO Fuel oil PDC PetroVietnam Oil Processing Distribution company WDT Deadweight tonnage ODA Official Development Assistance CPI Comsumer price index ISO International Organization for Standardization EFE External Factor Evaluation WTO World trade Orgnization IFE Internal Factor Evaluation FS Financials Strengths CA Competitive Advantage ES Enviroment Stability IS Internals Strenghts List of Figures and tables Figure drawing - Content Pages tables Figure I.1 Model of five competitive pressure M. SWOT matrix model 11 Table I. Model workflows in the strategic planning stage 12 Table II.1 Model workflows in the strategic planning stage 14 Table II.2 Statistics gasoline consumption in Ha Tinh and vicinity 14 Table II.3 Statistical petroleum storage port in North Central 17 Table II.4 Forecasting gasoline demand in the North Central 17 Figure II.1 organizational structure 30 Table II.5 SWOT matrix 31 Table II.6 SPACE matrix 35 Figure II.2 Graph formed from the matrix space 36 Table PL.1 Projects calling for investment in Nghe An 48 “Building business strategy of PV Oil Vung Ang period 2010 – 2020” FORWORD 1. Why choose research projects Petroleum is found strategies, essential not have any alternative source of energy efficient while gasoline demand increasing along with economic and social development of the country.
In the context of integration with the anti-competitive monopoly of some particular business and industry, recently the state has the solutions to allow free enterprise to import and export business petroleum market in Vietnam, and have applied the decree 84/Gov instead of Decree 55/Gov of the Government on the conditions stipulated for trading petroleum market so that petrol will do more competitive. North Central is a poor land but in recent years there have been many changes in construction investment and strong development of urban areas, economic zones, industrial and economic restructuring in the direction of industrial progress services that have great influence petrol demand in the economic development of the local society. Petrol market in North Central ever have four main business is providing clues petroleum products on the market, including Nghe Tinh petroleum company (Petrolimex Nghe Tinh), Quang Binh Petroleum Company ( Ptrolimex Quang Binh), Military Petroleum Company (MiPeCo), and PV Oil Vung Ang - a joint stock company with capital contributed by the dominant male PetroVietnam Oil Corporation (PV Oil) in system of Vietnam Oil and Gas Group (PetroVietnam). But among the companies supply petroleum products in the region only Petrolimex full system from Petroleum port and storage, petroleum station, petrol and oil trading agents are arranged around the large engraving area with a market share up to 75% at present.
Therefore for a new business join into the market in the central region is necessary to prepare a competitive and strategic penetration of the market share accounting for the business to do that PV Oil Vung Ang should have a proper look at the characteristics of the market, analysis of external and internal Caspone project report Group 4 - Gemba.v01 1 “Building business strategy of PV Oil Vung Ang period 2010 – 2020” factors to find solutions to business strategy, business plan in the short, medium and long term to achieve development goals best to survive and sustainable development. Manipulate the knowledge learned from MBA programs, especially in subjects with management strategies required to do exercises to make great graduation report, members in Group 4 Gemba. V01 agreed to selected enterprises PV Oil Vung Ang which have a member of the group is working in enterprises to research topics: "Building the business strategy of Vung Ang Petroleum jonit stock Company (PV Oil Vung Ang) period 2010 to 2020. Objective study With the aim of studying characteristics of market reviews petrol in the region, research and analysis of factors inside and outside, SWOT analysis model of the unit and competitors from which to find the solution Legal market penetration and build business strategies of PV Oil Vung Ang period 2010 to 2020 to reach a solution and implementation roadmap for building the business strategy of PV Oil Vung Ang in Ha province Static and vicinity 2020.
Scope of research Subject only to focus on the study guide strategic management business, the relevant information was gathered from resources within the application and publish on the Internet about the economic characteristics of local, state and forecasting the demand for the need to use or consume petroleum in some provinces in the North Central region and surrounding the base from which to build business strategies of PV Oil Vung Ang. Using the theory Theory construction business strategy, SWOT analysis, analysis of competitive pressure, analyze the macro environment, industry environment and Caspone project report Group 4 - Gemba.v01 2 “Building business strategy of PV Oil Vung Ang period 2010 – 2020” internal environment analysis of the business environment, analyzing the factors in external and the related matrix model. Using statistical methods Collect, statistics and data processing by the "Description" 4. Data analysis: Analyze secondary data sources from the state management agencies: development planning system reserves of crude oil and petroleum products of Viet Nam in 2015 with a vision to 2025, the source of information on the reported power death of the People's Committee of Nghe An, Ha Tinh, Quang Binh on development planning system fuel stations and categories calling for investment related to consumption of petroleum, the information strategic research institutes, competitors Company Petrolimex Nghe Tinh and related information has been published.
Structure of the study Besides the introduction, conclusion, references, index. Content of the subjects divided into three chapters: Chapter I: Theoretical basis to build business strategy Chapter II: Analyzing the business strategy of PV Oil Vung Ang Chapter III: Select the business strategy of PV Oil Vung Ang Caspone project report Group 4 - Gemba.v01 3 “Building business strategy of PV Oil Vung Ang period 2010 – 2020” CHAPTER I THEORETICAL BASIS TO BUILD BUSINESS STRATEGY 1. The concept of business strategy According to Johnson vaf Scholes: "Strategy is the direction and scope of an organization to gain long term competitive advantage for organizations through the format of its resources in the changing environment, to meet satisfy market demand and expectations of stakeholders. By Brace Henderson: "search strategy is a prudent action plan to develop and combine competitive advantage of organizations.
What difference between you and the competition is the basis for the advantage of you " Such strategies are: • Objectives that businesses try to reach the long • The products, services? Market any business to compete • Companies will be how to work better than competitors on the market (advantage)? • What resources do (skills, assets, finance, relationships, technical capacity, equipment) need to be able to compete (the resources)? • The factors from the business environment affecting the competitiveness of enterprises (environment)? • The values and expectations that people have the inside and outside the enterprise needs (the capital contribution)? Comment by Dereck point of F. Abell process of decision making, to develop strategies for business units must include three elements, namely: 1. Customer needs are met or what (What) 2. The group of customers who are satisfied or (Who) 3.
The ability to differentiate or other ways in which needs are met (How) Three factors determine the decision this way the company will compete in a business or a industry. Caspone project report Group 4 - Gemba.v01 4 “Building business strategy of PV Oil Vung Ang period 2010 – 2020” 2. Role of business strategy The role of business strategy for enterprises is shown on the following aspects: - Business strategy helps businesses identify the purpose and direction to their future as guiding all activities of the enterprise. - Business strategy helps companies capture and take advantage of business opportunities, and proactively take measures to deal with the risks and threats in the marketplace business.
- Business strategy contribute to improving the efficient use of resources, strengthening the position of the enterprise to ensure continuous business development and sustainability.