2010 l GLOBAL ADVANCED MBA PROGRAM (GAMBA01.01 CAPSTONE PROJECT REPORT Proposed Development Strategies For Gtel mobile Period of 2010 – 2015 Tran Ngoc Duy Nguyen Thi Thu Huyen Nguyen Tuan Dung Nguyen Huu Tinh Phan Thanh Tuan Class: GAMBA01.X02 H A N O I 2 0 1 0 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Proposed Development Strategies For Gtel mobile Period of 2010 – 2015 Group No.X02 Student: Tran Ngoc Duy (C) Nguyen Thi Thu Huyen Nguyen Tuan Dung Nguyen Huu Tinh Phan Thanh Tuan HA NOI, 2010 CAPSTONE PROJECT REPORT Group No.X02 CONFIRMATION Page i CAPSTONE PROJECT REPORT Group No.X02 COMMITMENT To: - MBA program – Griggs University - ETC – Vietnam national university, Hanoi We are member of group 1 – Class X02, Griggs University in MBA program, with 05 people: 1. Tr亥n Ng丑c Duy 2. Nguy宇n Th鵜 Thu Huy隠n 3. Nguy宇n Tu医n D ng 4.
Nguy宇n H英u Tình 5. Phan Thanh Tu医n We are committed to: Content in "Capstone project report" is produced by our team. We do not copy any material from any earlier. These are analyzed separately reflect the views of our team on the issue yet.
All data related to Gtel mobile companies are provided and approved by company management. Article cited some of concepts, theoretical models of some scholars, the cited authors have been allowed in many books, magazines, articles or previous studies. Our team has to comply with this requirement is a product that reflected collective spirit and is a product of the whole group. We are committed to all the above are true and complete responsibility for those problems with the program! Group 1 – GaMBA01.X02 Page ii CAPSTONE PROJECT REPORT Group No.X02 TABLE OF CONTENTS CONFIRMATION.
II TABLE OF CONTENTS. III LIST OF ABBREVIATIONS. V LIST OF TABLES. VI LIST OF FIGURES.
1 CHAPTER 1: THEORETICAL BASIS TO BUILD UP STRATEGIES FOR GTEL MOBILE.1 Concepts and theories .2 Levels and types of strategy .1 Cost leadership strategy .2 Theoretical model proposed to be applied in the research.1 External Environment Analysis .1 Macro environment study .2 Study on micro-environment .2 Internal environment analysis.3 Research tools & methods .1 Matrix of external factor evaluation -EFE.2 Matrix of internal factor evaluation - IFE .3 Internal, external factor evaluation matrix- IE .4 SWOT / TOWS matrix .18 Page iii CAPSTONE PROJECT REPORT Group No.X02 CHAPTER 2: ANALYSIS OF BASIS OF DEVELOPMENT STRATEGY PLANNING FOR GTEL MOBILE .1 Overview of Gtel Mobile .6 Service products and cost packages .2 Results of production and business activities in recent years .3 Analysis of strategic issues and management in Gtel Mobile .1 Macro environment study .2 Micro environment study.3 Internal environment analysis.4 Shortcomings and their reasons .66 CHAPTER 3: PROPOSED DEVELOPMENT STRATEGIES FOR GTEL MOBILE IN THE PERIOD OF 2010-2015 .1 Proposed development strategies .2 Proposed strategies, goals and schedule for Dept.3 Human Resource Strategy .3 Limitations of the reports and subsequent research directions .86 CONCLUSION AND RECOMMENDATION .91 Page iv CAPSTONE PROJECT REPORT Group No.X02 List of Abbreviations 3G Third-generation technology ARPU Average revenue per user BOD Board of directors BTS Base transceiver station CEO Chief Executive Official EDGE Enhanced Data Rates for GSM Evolution EFE External Factor Evaluation FDI Foreign Direct Investment GPRS General Packet Radio Service GSM Global System for Mobile Communications HR Human resources IE Internal – External IFE Internal Factor Evaluation MBA Master of Business Administration MMS Multimedia Messaging System PEST Political, Economic, Social, and Technological R&D Research & Development SMART Specific, Measurable, Assignable, Realistic, Timely SMS Short Message Service SWOT Strengths , Weaknesses, Opportunities, Threats TOWS Threats, Opportunities, Weaknesses, Strengths VoIP Voice over Internet Protocol WAP Wireless Application Protocol Wimax Worldwide Interoperability for Microwave Access WTO World Trade Organization Page v CAPSTONE PROJECT REPORT Group No.X02 List of Tables TABLE COMPETITIVE MATRIX TABLE TABLE OF IMPORTANT FACTORS IN EFE MATRIX TABLE TABLE OF IMPORTANT FACTORS IN IFE MATRIX TABLE SWOT MATRIX Page vi CAPSTONE PROJECT REPORT Group No.X02 List of Figures FIGURE 1.1: STRATEGIC MANAGEMENT MODEL .3: FIVE-FORCE MODEL.4: VALUE CHAIN OF MICHAEL PORTER .1: ORGANIZATIONAL CHART OF GTEL MOBILE .2: THE COVERAGE MAP OF GTEL MOBILE UP TO 3 / 2010.3: GROWTH CHART OF SUBSCRIBERS OF GTEL MOBILE.4: THE GROWTH CHART OF MOBILE SUBSCRIBERS .5: VIETNAM MOBILE MARKET SHARES .1: ESTIMATED DEVELOPMENT OF BTSS IN YEARS .2: ESTIMATED DEVELOPMENT OF NETWORK CAPACITY.3: MARKET SHARE EXPECTED THROUGH THE YEAR .4: SUBSCRIBERS PROPOSED TO DEVELOP. 79 Page vii CAPSTONE PROJECT REPORT Group No.X02 INTRODUCTION For each organization/ enterprise, strategies play an absolutely important part, as it can be compared to be the wheel to steer the entire boat to move forward, in which the steering people are the management of such enterprise/ organization. Thanks to the strategies, it is possible to determine the destination along with the system of objectives and solutions of implementation, and then the enterprise can defeat its competitors or at least survive in the market. The strategic research, planning is the work needs to be made by each organization/ enterprise or even each individual.
Although mobile communication is only a new industry in Vietnam with nearly 20 years of existence, it has made great contribution to the national development in both the regional economic crisis (1997- 1998) and the global economic crisis (2008-2009). The success achieved by the industry in the past years has been shown through the increasing telephone density that reached 168. This is the rate that no country with the same GDP like Vietnam can be achieve. Now, the use of mobile communication services has become too easy, like buying a simple item of goods in the market or in the street.
The successes of the telecommunication industry in general and of the mobile communication industry in particular also shows that the market competition is very big, the speed of development is very hot and therefore; the strategic planning is even more important for the enterprise to identify opportunities, to anticipate difficulties, to prepare resources, overcome weaknesses to successfully make full use of opportunities of the market. For Gtel mobile- an enterprise that has just joined the market since 2008, this work needs to be done right from the start. However, many conditions and policies have changed since the enterprise joined the market, which requires the enterprise to re-build its strategies in the new situations. Page 1 CAPSTONE PROJECT REPORT Group No.X02 As an employee in the company with the hope of applying knowledge learnt, the student Tran Ngoc Duy has suggested that we chose Gtel mobile to apply our knowledge in practice through the article "Proposed strategies for Gtel Mobile in the period 2010-2015.
Our purpose of this capstone is applying all knowledge from course to analyzing real situation of company in market. Other way we hope our analysis and recommendations may become useful reference for the management of Gtel mobile when building the development strategies for the company! In this article, our group has used part of the strategic management model by Fred R. David to strategic planning proposals. In particular analysis, we also used many analysis methods such as PEST, five-forces model, value chain model.
the results of the analysis were consolidated in matrixes: EFE, IFE, IE, SWOT. that helped identify strategies that could be used. Our group will select a strategy that is considered most suitable among such strategies to propose and build up solutions for the enterprise. The article is divided into three main chapters: Chapter 1: refers to a basic of theories and theoretical models used for analysis in the report.
Chapter 2: Applies theoretical basis in analysis of the actual situations in Gtel mobile enterprise. Chapter 3: Through the analysis in chapter 2, chooses proposed development strategies for the enterprise. During the implementation, our group has received much help from the enterprise as well as teachers from the program. Our group would like to extend our thanks to Gtel Mobile Company, teachers and the management of MBA program - Griggs University for helping us completes this article.
Since this article was the application of new knowledge learnt to practice. We look forward to receiving more opinions in order to better finalize the content of the report! Group 1 – GAMBA01. Page 2 CAPSTONE PROJECT REPORT Group No.X02 CHAPTER 1: Theoretical basis to build up strategies for Gtel mobile 1.1 Concepts and theories 1.1 Strategies Nowadays, the term strategy has been widely used in business and life. The strategy is sometimes expressed in the form of development strategy or competitive strategy.
It is a combination of orientations and actions for each organization, enterprise, personal to exist and develop in the volatile environment. In the more and more fierce integration, competition conditions, it is usually brief in explanation: "Strategy is a combination of competitive moves and business methods that leaders use to operate organizations". Due to the special importance of strategy and strategic management, a number of scientists have concentrated to do research on this issue and introduced various concepts. The concept of strategy is usually mentioned along with such concepts as: vision, mission, objectives and policies.
Vision Strategic vision (perspective) shows the highest, the most generalized desires, aspirations that an organization wants to achieve. Vision can be considered as a road map of the organization/ enterprise in which the specific destination in the future and the way that the organization will go to reach the intended destination are shown. Mission Mission or duty is a statement with long-term value in terms of purposes; it helps differentiate this company with that one. Such statements are sometimes called business philosophy, business principles, and the company's confidence.
The mission statement proclaims "reasons of existence" of the company, and according to Mr.Drucker, it is the answer for the question "what is our business work?”. In Page 3 CAPSTONE PROJECT REPORT Group No.X02 fact, the terms mission and vision sometimes make confused in use, some companies have just announced their vision without announcing their mission and vice versa while some companies have just announced their purposes. Goal/ objective Objective is defined as designated results that an organization tries to achieve when pursuing its primary duties. The identification of objectives is very important to the success of an organization since objectives help point out development orientations, evaluate results achieved, provide the basis to make plans effectively, serve as the basis for effective organization, evaluation.
In fact, the goal can be divided into short- and long term one. The goal must reflect the characteristics generalized through the word S M A R T: S: Specific: exact and clear, M: Measurable): can be measured, A: Assignable: shows central issues, indicates the priority and the basis for the selection, R: Realistic should be challenging but can be done, T: Timely corresponds to a specific time. Policy Policy is a tool to implement the strategy, a means to achieve goals. Policies include instructions, rules and procedures established to support efforts to achieve the targets set forth.2 Levels and types of strategy Previously, the strategy system in the enterprise was divided in 3 levels: - Corporate Strategy - SBU (Strategic Business Unit) - Functional strategy However, in the globalization, integration trend, a number of transnational companies have named the forth-strategic level as: - Global Strategy Page 4 CAPSTONE PROJECT REPORT Group No.X02 Corporate Strategy: Among above- mentioned strategic levels, corporate strategy has always been paid attention to and played the most important part in orienting strategies of the next levels.
The corporate strategy can be classified into three types: Growth strategy, Hold & Maintain strategy, Harvest or Divest strategy Growth strategy Among previously mentioned strategies, growth strategy is the most widely used since all enterprises desire to develop more except special circumstances.