GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING DEVELOPMENT STRATEGY OF THE PETROLEUM TECHNICAL SERVICE CORPORATION (PTSC) IN THE PERIOD OF 2011 – 2015 WITH ITS ORIENTATION UNTIL 2020 Class: GaMBA01.X0110 Group Number: 08 Student's name: Dinh Trung Kien Dao Van Thang Nguyen Anh Tuan (Leader) Dinh Thi Hong Vy HANOI 2011 1 LIST OF ABBREVIATIONS PTSC: Petroleum Technical Service Corporation PVN: Vietnam Oil and Gas Group LILAMA: LILAMA 18 Joint Stock Company PVCMS: Petroleum Equipment Assembly & Metal Structure Joint Stock Company. PV Shipyard: Petroleum Marine Shipyard Joint Stock Company. WTO: World Trade Organization LIST OF TABLES AND FIGURES Figure 1. Model of five force competition by Michael E.
Organizational diagram of PTSC Figure 2. Synthesis of SWOT matrix Figure 3. The petroleum exploitation productivity in the period of 2011- 2015/2016-2025 Figure 3. FSO/FPSO worldwide distribution diagram Table 1.
Ssummary of appropriate options for each strategic Table 1. External factor evaluation matrix – EFE Table 1.3 Internal factor evaluation matrix – IFE Table 1. The SWOT Matrix Table 2. Statistics of ships by type (unit) Table 2.
List of ports owned and operated by PTSC Table 2. Turnover from port trading activities (billion dong) Table 2. The current projects implemented to build and fabricate by PTSC Table 2. Financial indicators of PTSC Table 2.
External factor evaluation –EFE Matrix Table 2. Internal factor evaluation matrix –IFE Matrix Table 2. IE Matrix 2 Table 3. Future specialized fleet of PTSC Table 3.
Matrix of strategy selection (GREAT) Table 3. Number of employees necessary to satisfy Table 3. The number of people and expected cost of training TABLE OF CONTENTS The Opening: General introduction 6 1. General context, the necessity and significance of research topic 6 2.
Purpose of research 7 3. The method of implementation 7 4. Structure of an assignment 8 Chapter I: Theoretical basis 9 1. Overview of strategy and strategic management 9 1.
The concept of strategy and strategic management 9 1. The role and importance of strategy and strategic management 10 2. Content of strategic management 11 2. The process of building strategy 11 2.
Tools to evaluate and propose strategies 20 Chapter II: Situation analysis of PTSC 25 1. Overview of enterprise 25 1. History of formation and development 25 1. Business activities of PTSC 27 1.
The organizational structure of PTSC 28 2. Situation and results of operations of PTSC 28 2. Provision activities of specialized ship service 29 2. Port business activities, petroleum logistics service 30 2.
Mechanical engineering activities 32 2. Business Activities of operation and maintenance (O & M). 32 3 transportation, installation, connection and petroleum project dismantling services 2. Other business activities 33 2.
Synthesis of turnover, profit of PTSC 33 3. Service Analysis and selection for strategy development 35 4. Analysis of business environment of PTSC 35 4. Internal environment of PTSC 43 5.
General evaluation of environmental factors, SWOT analysis and 45 feasible strategy of PTSC 5. IE- Internal – External Matrix of PTSC 47 5. Feasible strategies of PTSC 47 6. The existence of PTSC 48 Chapter III: Solutions, Recommendation and Conclusion 49 1.
Objective, orientation, mission, vision of PTSC 49 2. Specialized petroleum services 50 2. Services of structural metal fabrication, petroleum works and 50 specialized shipbuilding 3. Services of structural metal fabrication, petroleum works and 51 specialized shipbuilding 3.
Services of petroleum work installation, dismantling, operation 53 and maintenance 3. Develop services abroad 53 4. Build the development strategy of PTSC 54 4. The general strategies 54 4.
Selection of strategy 55 4 5. Several solutions to implement strategy of PTSC 55 5. Solutions to human resource development 56 5. Solutions to investment 58 5.
Solution to cooperation, association and joint venture 60 5. The solution to quality and safety 61 Conclusion 63 5 The Opening: General introduction 1. General context, the necessity and significance of research topic Stable and sustainable development is desire of the whole society, each country as well as the socio-economic organizations worldwide. Today the world economy is in the trend of globalization, many countries, economic organizations achieve much brilliant success in their own countries and over the world, creating stable and solid foundation for their sustainable development.
However, some organizations did not take advantage of opportunities, strengths and had no solutions to overcome these difficulties, challenges leading to its decline, even bankruptcy. The main reason is due to the planning and organization of business strategy that is inconsistent with existing potential capability, there is no thorough research on the impact of internal, external environment, opportunities, strengths, difficulties and challenges to build short term, medium term and long term development strategies of adequate theoretical basis and practical market research. The economy of Vietnam has been integrating with the economies of the region and the world, the business environment of the enterprises is being expanded with more opportunities, but facing many difficulties and challenges, its competition is becoming fiercer. In current market condition, the decisive issue to the success of the business that is choosing the right direction, planning and building a business strategy rationally, timely and appropriately for the subjective and objective conditions of each period, stage.
For our own country's economy, petroleum is an economic sector of great importance, contributing huge revenue for the state budget. Over the years, it has contributed 20-25% of the total State budget revenue, while crude oil has been the export of the largest turnover for many years. Our Party and State always respect the role and position of the petroleum sector in the development of national economy. Strategy of Vietnamese Sea up to 2020 has been also determined, from 6 now to 2020; petroleum will still remain the leading maritime economy sector of our country.
Development strategy of petroleum industry of Vietnam until 2015 and orientation to 2025 have identified targets of attracting maximum economic sectors participating in the development of service to rapidly increasing proportion of the service revenue in total revenue of the whole industry, and have kept striving until 2015, the revenue of petroleum technical service will reach 25-30% of the total sector turnover and will be stable up to 2020. This is such a heavy task which requires the service providers of the Vietnam National Petroleum Corporation, in which PTSC should strive to achieve the planned goals. Based on those facts, group 08 has selected the topic: "Building development strategy of the Petroleum Technical Service Corporation (PTSC) in the period of 2011-2015 with its orientation until 2020" 2. Purpose of research On the basis of theoretical research on strategy and business strategy, apply it to the analysis of environmental factors affecting the PTSC in order to identify opportunities, challenges, combined with situation analysis of the internal elements of PTSC to find out the strengths and weaknesses in order to determine the vision, objectives then propose strategies of business activity development for PTSC in the coming period.
Based on that, establish the solutions and plans in order to implement the strategy of PTSC in the period of 2011 - 2015, and to make effective orientation to 2020. The method of implementation The following methods are used: - Method of comparison, analysis and synthesis: Analyze and synthesize data to give comments. 7 - Method of matrix analysis: A technique for analyzing and processing the results of environment research that helps enterprises make strategy scientifically, etc. - Statistical method: Make statistics of forms, from which draw conclusions and trends to evaluate the operation of its sector and enterprise.
Structure of an assignment The opening: General introduction Chapter I: Theoretical basis Chapter II: Situation analysis of PTSC Chapter III: Solutions, recommendations and conclusions Conclusion 8 Chapter I: Theoretical basis 1. Overview of strategy and strategic management 1. The concept of strategy and strategic management 1. Strategy Term “strategy” is derived from the military sector with the meaning "Science of planning and control of military operations", is "the art of commanding the means to win the enemy".
From the military field, the term strategy is used more in the economy at both macro and micro scale: socioeconomic development strategy, strategy of sector development such as engineering and chemical; strategy of company or corporation development, etc. with the content of determining the basic long-term objectives, action plans and allocating resources to implement the objectives of economy, industry or enterprises in the distant future. Introduced in about the 60s of the twentieth century, strategy and business strategy have gradually commonly used in enterprises with different concepts. - James B Quinn said that "strategy is a form or a plan combination key objectives, policies and action sequences into a whole together.
Glueck had a concept "strategy is a plan of consistency, inclusiveness and cooperation, designed to ensure that the basic goals of enterprises will be done". - Alfred Chandler of Harvard University defined "strategy involves fixing of the basic long term objectives of enterprises, choosing way or process of action and allocating necessary resources to implement those objectives. In brief, there are three common characteristics in the strategy of an enterprise: - Establish an overall action plan towards the future of basic long-term business objectives of enterprise; - The importance policies and measures of enterprise are decided to change by its owners; 9 - Establish action sequence, way of implementation and resource allocation to implement objectives of enterprise. Strategic management Strategic management is to manage strategies and make the right decisions to help enterprises fulfill their strategies for those works.
Generally, strategic management is defined as a set of decisions and actions shown through the results of the planning, implementation and evaluation of strategies, designed in order to achieve long-term goals of an organization. The role and importance of strategy and strategic management Characteristics of the business environment have a large impact on the survival and development of enterprises. It creates not only opportunities but also new challenges for enterprises. It forces them to find a new management approach if they want to survive that is the strategic management.
In which, strategy is the basis of this management approach. In the modern business environment, strategy has played increasingly important role for the survival and development of enterprises. The role and importance of strategies - Strategy is the tool to synthesize long-term goals of institutions and enterprises. Concretize and document goals of enterprises through strategies that will help the members of those enterprises, organization realize where they want to go, so they know what to do.
Those things help enterprises and organizations achieve their goals more easily. - Strategy links short term development objectives to long term context. The strategy with the strategic goals that will bring managers a long-term orientation. - Strategy contributes to ensure the consistency and orientation of the enterprises’ activities.
Strategy contributes to provide a comprehensive and systematic perspective in handling problems arisen in business practice in order to 10 create a powerful resonance of the entire departments, individuals of those enterprises towards a single objective which is the common objective of enterprise. - Strategy helps enterprises; organizations capture the market opportunities and create competitiveness in the market, unify operational process to achieve their strategic objectives and tasks, and so will promote enterprises to use limited resources in the most effective way. Therefore enterprises need to quickly capture opportunities on the market, make maximum use of available resources to create new competitive advantages. The role and importance of strategic management Establish more effective strategy through the use of an approach which is more systematic, more logic to the strategy selection.
Obtain the objectives of organization by and through human. Pay attention to the subjects related to enterprise in a broad way. Attach short-term growth in the long term one. Concerned with both the effectiveness and efficiency.
Content of strategic management 2. The process of building strategy 2. identify strategic objectives The strategic objectives are the milestones, state which enterprises want to achieve in the strategic stage.