2011 │ADVANCED MBA PROGRAM – GAMBA.09 CAPSTONE PROJECT REPORT DEVELOPING THE BUSINESS STRATEGY FOR VIETTEL MOBILE IN VIETNAM FOR THE YEARS 2011-2015 Do Anh Minh Nguyen Vinh Thu Pham Thanh Cong Truong Trung Nghia Class: GaMBA.X0510 HA NOI - 2011 1 GRIGGS UNIVERSITY GOLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Group Number: 09 HA NOI - 2011 2 TABLE OF CONTENTS LIST OF FIGURES.6 LIST OF TABLES. Subject and scope of the study. THEORETICAL FOUNDATION OF STRAGIC MANAGEMENT. Concept and role of strategic management.
The role of strategic management. Types of strategy. Stages of strategic management. Identify tasks and objectives.
Analysis of external environment. Analysis of internal environment. Choosing the optimal strategy. Models and matrixes.
BUSINESS SITUATION ANALYSIS OF VIETTEL GROUP. Introduction of Viettel Group. Business situation of Viettel from 2005 to 2010. Business environment analysis.
External environment evaluation. Analysis of resources. Evaluation of internal environment. STRATEGY SELECTION & IMPLEMENTATION SOLUTIONS 44 3.
Vision - Mission of Viettel. Viettel’s brand vision. Mission of Viettel. Strategic identification and selection.
Strategy of market development. Strategy of product development. Strategy of business diversification. Strategy selection for Viettel in the period of 2011-2015.
Target market and basic policies for the market. Continuing maintenance of expansion investment and improvement of coverage quality, customer service capabilities. Continuing development of price policies for product package, competition and flexibility for each customer segment. Management of human resources for changing the structure and improving the quality of service from the human factor.
Financial management solutions. Construction of annual goals. Construction of policy system and support plan. Development of action plans, budgets and implementation processes.
Allocation of human resources, finance, facilities. Selection of organization structure consistent with the strategy. Strategic commitment and implementation. Strategic inspection control, evaluation and adjustment in the implementation process.70 5 LIST OF FIGURES Figure 1.1 Levels of strategic management.2 The process of strategic management.3 The PEST and Five Forces models.4 The matrixes used in analyzing.1 Revenue and profit of Viettel from 2005 to 2010 .2 Revenue of Viettel Mobile from 2005 to 2010.3 Manpower of Viettel Group from 2005 to 2010.4 Market-share of mobile phone subscribers in Vietnam (12/2010).1 Hierarchy of competition in Vietnam mobile market.2 Levels of competition in Vietnam mobile market.64 LIST OF TABLES Table 2.1 Some data on Vietnam's economy in the recent 05 years (GSO).2 Viettel’s external factor evaluation matrix (EFE).3 CPM matrix compares the competition with a number of companies.4 Some financial data of Viettel from 2005 to 2010.5 Number of mobile phone subscribers in Vietnam (12/2010).6 Internal factor evaluation matrix of Viettel (IFE).1 Table of SWOT Matrix for Viettel Group.2 QSPM Matrix for Viettel.
Necessity In Vietnam, after the conversion from the command economy to market economy, the local enterprises faced many difficulties in strategic management. Businesses need to research, develop a strategic tool to have enough flexibility to respond to market changes. A business strategy must be formulated on the basis of analysis and forecast opportunities, threats, strengths and weaknesses of the enterprise, helping businesses obtain general information about the external and internal business environment. Viettel Group is one successful model of change to the market economy.
From a small company, facing many difficulties, unknown brand in the market, now Viettel is one of the leading service providers in the Vietnamese telecommunication market and expanding to neighboring countries. The brand positioning parts the crucial part in this achievement of Viettel. The planning and implementation of business strategy is very important to decide the existence and development of a company. Within the limits of the subject, our group offers the research and analysis to introduce “Developing the business strategy for Viettel Mobile in Vietnam for the years 2011-2015”.
The research and analysis apply the theories from the Master of Business Administration program (MBA) offered by the Hanoi National University of Vietnam and Griggs University - Andrews University, the United States. Objective The objective of this study is to conduct the complete top-down and competitive analyses, develop alternative strategies and select a prioritized set of strategies that will ensure a competitive advantage for Viettel and above normal returns (strategy to 7 expand the market of Viettel Group in Vietnam during 2011 to 2015). This study based on the analysis and application of the theories of strategic management. Subject and scope of the study Subject of this topic is in-depth analysis, evaluation and provides the direction to formulate a business strategy based on the theory of business strategic management.
The scope of this study based on specific statistics on the macro environment, industry and organizational environment of the Viettel Group from 2005 to 2010 and orientation until 2015. Approaches Topics of study based on the methodology of dialectical materialism combined with the knowledge of strategic management subject and other subjects in the MBA program to assess overall the business operations of telecommunications services Viettel Group. In addition, the research also uses methods such as statistical analysis, analytical modeling to evaluate and develop business strategy for Viettel Telecom Group in the field of mobile telecommunications. Outline The main contents of the analysis and strategic planning for Viettel Telecom Group in the period of 2011 to 2015 are presented in three chapters as the following: - Chapter I.
The theoretical foundation of strategic management - Chapter II. Analysis of business activities of Viettel Group. Strategy selection and implementation solutions. THEORETICAL FOUNDATION OF STRAGIC MANAGEMENT 1.
Concept and role of strategic management. In the early stages of the development of strategic management theory, people have seen the strategic long term plan, are an integral part of the planning system of the organization and thus just press strong strategic planning function. Although there are many authors and researchers presented different ways of strategic management, strategic management but is now both a scientific definition, and is an art and science of planning, organization implementation and evaluation strategies. Therefore, during the development, the concept of strategic management has been expanded greatly.
At the first phase, strategic decisions are made once for a long period of time and it is the job of senior executives. However, the process of strategic management is made regularly and continuously and requires the participation of all members of the organization. The role of strategic management In the current business environment, there are opportunities and threats. Strategic management helps us to identify opportunities and threats.
The perception of desired results and goals in the future can help managers and employees to understand what needs to be done to achieve success. This will encourage both the above groups to achieve short-term achievements, in order to better improve the long term welfare of the business. Strategic management process enables enterprises to match the proposed plan with the external environment. The greater the volatility is, the more effort the business has to take the initiative.
To be able to survive and grow, businesses must develop their 9 own strategic management systems that can adapt with the market fluctuations. Therefore, strategic management is in the direction of future action. It does not follow the market but change the business environment instead. In short, strategic management is a product of modern management science- based practices, accumulating experiences from many companies.
However, the success of every business depends on the capacity of implementation and control of the internal system and is seen as the state of art in business administration. Types of strategy Corporate Strategy Functional Strategy Operational Strategy Figure 1.1 Levels of strategic management According to Red R.David the strategy includes only corporate and business strategy. However, the strategy can be divided into three main categories: (i) corporate strategy is the strategy of the corporation or company; (ii) functional strategy is to implement a strategic business areas, business specifically; (iii) operational strategy is the implementation strategy of the operational functions of the company's HR strategy, marketing strategy. Stages of strategic management In the process of strategic management business, the administrator must perform a series of sequential activities from strategic planning, strategy implementation and evaluation strategy (Figure 1.
Input Internal External Environment Environment Strategic Intent Strategic Mission Strategy Formulation Strategy Implementation Business Corporate Level Strategy Competitive Level Strategy Corporate Structure & Dynamics Governance Control Acquisition & Restructure Internation. Corporative Strategic Entrepre. & Strategy Strategies Leadership Innovation Strategic Competitiveness Above Average Returns Feedback Figure 1.2 The process of strategic management 1. Strategy Planning Strategic Planning is the process of identifying tasks and business objectives in order to discover the internal strengths - weakness, external opportunities - threats to choose an optimal strategy instead.
Developing strategies includes the design and selection of appropriate strategy for the organization. In order to do this, it should be 11 considered from many different organizations and levels out the types of strategies. Thus, strategy planning includes some processes as the following: 1. Vision, Mission, Objectives 2.
Top-down analysis: PEST (Macro) 3. Stage 1: Industry (Micro, 5 forces), Business CPM/IFE/EFE 4. Stage 2: SWOT matrix 5. Stage 3: Strategy selection to reach objectives (QSPM) 1.
Identify tasks and objectives The first stage of strategic management is identifying tasks and objectives of the organization. Tasks and objectives are the foundation to build up strategies. The main objectives determine what the organization expects to meet in the medium and long term. Most organizations pursues profit, achieve goals of excellence leading position.
The second target is the targets that the company deems necessary if they want to achieve superior capabilities. Goals should be challenging, measurable, consistent, logical and clear. Analysis of external environment The second part of the strategy is to analyze the operating environment outside the organization. The goal of the analysis is the awareness of opportunities from which the business environment should capture, at the same time as the threats from the environment also provides, that can cause challenges for the company that it needs to avoid.
Analysis of internal environment This analysis is to find the internal strengths and weaknesses of the organization. The organization attempts to pursue strategies to take advantage of the strengths and improve weaknesses. Choosing the optimal strategy This was the stage to select strategies which associate with the strengths, weaknesses, opportunities and threats identified by the company. A comparison of the four factors is commonly known as SWOT analysis.
The purpose of SWOT analysis is to identify strategies that direction, creating a fit or mismatch between the resources and capabilities of the company with the needs of the environment in which companies operate. Planning stage is an important stage that is meant to decide the entire strategic management process. It requires the strategy to combine intuitive judgments with systematic analysis of data in making plans and choose the alternative strategy. Strategy Implementation This was the action phase of strategic management.
To implement the selected strategy, the business should have specific plan for the organization, staffing and appropriate funding for the mobilization and maximum use of all resources inside and outside the organization, creating synergy and synchronization towards agreed goals. Strategy Assessment This is the final stage of strategic management. The results of implemented strategies depend on the fluctuation of the environmental factors. Assessment focuses on strategic issues such as review of the factors is the basis for the current strategy; performance measurement and results achieved.
Models and matrixes 1. Models PEST model: Analysis helps to identify the external factors that are capable of being an opportunity or challenge for companies such as political, economic, social and technological factors… Five-Forces model: Analyze, forecast the competitive forces to identify opportunities and threats. According to Michael Porter, the five forces are existing competitors, new entrants, suppliers, buyers and substitutes.3 The PEST model (left) and Five Forces model (right) 1. Matrixes EFE (External Factor Evaluation): Allow the company to summary and evaluate economic, social, culture, political and other information and compete through the grading external factors.
14 IFE (Internal Factor Evaluation): Summary and evaluate strengths and weaknesses of the company.