GLOBAL ADVANCED MASTER OF INTERNATIONAL BUSINESS ADMINISTRATION CAPSTONE PROJECT REPORT BUILDING DEVELOPMENT STRATEGY FOR TIEN HAI MINERAL WATER PRODUCT OF THAI BINH PETROLEUM SERVICE COMPANY Ltd IN THE PERIOD 2020 - 2025 TABLE CONTENT GLOBAL ADVANCED. The purpose of research. Objective, scale and methodology. Structure of the report.
3 CHAPTER I: LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT. Overview of strategy and strategic management. Fundamental definitions Definition of strategy. Role and significance of strategy and strategic management:.
Levels of strategic management. Conten of strategic management. The company’s vision and mission determination:. External environment analysis:.
Internal environment analysis:. Strategy evaluation and control. 3 CHAPTER II: THE REAL SITUATION OF PRODUCTION-BUSINESS ACTIVITIES FOR TIEN HAI MINERAL WATER PRODUCT OF THAI BINH PETROLEUM SERVICE COMPANY Ltd. Overview of Thai Binh Petroleum Services Company Ltd.
The company’s formation and development history. The company’s human resource structure. Situation of production and business of Tien Hai mineral water product of the Thai Binh Petroleum Service Co in the period of 2005 – 2009. Business performance and market share of Tien Hai.
Analysis of factors affecting on operations of Tien Hai mineral water. Analysis on the status of creating and performing strategy for Tien Hai mineral water product of Thai Binh Petroleum Service Company Ltd. Market expanding strategy. Product development strategy.
Strategy of developing human resources. General review on practical results of performing strategy.3 CHAPTER III: SOME SOLUTIONS TO BUILD DEVELOPMENT STRATEGY FOR TIEN HAI MINERAL WATER OF THAI BINH PETROLEUM COMPANY Ltd. Developing objectives of Thai Binh Petroleum Company Ltd by the year of 2015. Vision, mission and core value of the company.
Using SWOT Matrix to making strategy for Tien Hai brand of Thai Binh Petroleum Company Ltd Strengths:. Choosing developing strategy. Solutions to build development strategy for Thai Binh Petroleum Company Ltd from 2010 to 2015. Market expansion solution.
Product distributing solusions. Research & Development solutions.3 LIST OF REFERENCES. 3 3 ACKNOWLEDGEMENT First of all, the group of authors would like to express our deep gratitude to: The lecturers of the MBA training program of United State Griggs University - who provide knowledge; Managers and staff of the Centre for Educational Technology and Career Development - Hanoi National University(ETC)-who are enthusiastic and indispensable helpers in the process of learning; We would like to thank the Managers and staffs of Thai Binh Petroleum Services Company Ltd also, who are enthusiasmsupporters in the process of studying about the situation of the company. Finally, we would like to send the most sincere thanks to families, colleagues and classmates -who are the solid basis of spirit for members of the group during the participation of Griggs University MBA program and the process of completing major assignment Capstone Project "Building business development strategy of Tien Hai mineral water for Thai Binh Petroleum Services Company Ltd in the period 2010-2015" We also wish to thank all the Lecturers of Globall Advanced Master of Business Administration Program and the staffs of ETC for assistance and kindness throughout the process of MBA program.
4 TABLE OF CONTENTS INTRODUCTION I. Purposes of the research III. Objective, scale and methodology IV. Structure of the report CHAPTER I: LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT 1.
Overview of strategy and strategic management 1. Roles and significance of strategic management 1. Levels of strategic management 1. Content of strategic management 1.
The company’s vision and mission determination 1. External environment analysis Macro-environment Micro- environment 1. Internal environment analysis Resource evaluation 1. Strategy construction, selection and implementation 1.
Information collection and systematization phase 1. Co-ordination phase 1. Decision phase CHAPTER II: THE REAL SITUATION OF PRODUCTION-BUSINESS ACTIVITIES FOR TIEN HAI MINERAL WATER PRODUCT OF THAI BINH PETROLEUM SERVICE COMPANY Ltd 1. Overview of Thai Binh Petroleum Services Company Ltd 5 1.
The company’s formation and development history 1. The company’s human resource structure 1. Situation of production and business for Tien Hai mineral water product of Thai Binh Petroleum Services Company Ltd in the period from 2005 to 2009 1. Business performance and market share of Tien Hai mineral water 1.
Analysis of factors affecting on operations of Thai Binh Petroleum Services Company Ltd 1. External environment SWOT analysis of competitors 1. Internal environment Human resource Marketing activity Research & Development Finance and investment 1. Analysis on the status of creating and performing strategy for Tien Hai mineral water product of Thai Binh Petroleum Services Company Ltd 1.
Market expanding strategy 1. The strategy of investing in infrastructure development 1. Product development strategy 1. Strategy of developing human resources 1.
General review on practical results of performing strategy CHAPTER III: SOME SOLUTIONS TO BUILD DEVELOPMENT STRATEGY FOR TIEN HAI MINERAL WATER PRODUCT OF THAI BINH PETROLEUM SERVICE COMPANY Ltd 6 1. Developing objectives for Tien Hai mineral water product of Thai Binh Petroleum Services Company Ltd by the year of 2015 1. Vision, mission and core value of the company 1. Using SWOT Matrix to making strategy for Tien Hai mineral water product of Thai Binh Petroleum Services Company Ltd 1.
SWOT analysis of Tien Hai mineral water 1. Choosing developing strategy Differentiating strategy Low cost strategy 1. Solutions to build development strategy for Tien Hai mineral water product of Thai Binh Petroleum Services Company Ltd from 2010 to 2015 1. Market expansion solution 1.
Research & Development solutions 1. Financial solutions to invest in new technology and equipments 7 LIST OF FIGURE Figure 1.1: The strategic management process Figure 1.2: Model of five competitive forces created by M.3: Diagram of main and support activities Figure 2.1: Structure of Tien Hai mineral water product Figure 2.2: Turnover growth of Tien Hai mineral water in 2009 Figure 2.3: Turnover of Tien Hai mineral water in term of regions (2009) Figure 2.4: Market shares of various brands in Vietnam market (2009) Figure 2.5: GDP growth of Vietnam over years Figure 2.6: Changes in consumption belief of Vietnamese Figure 2.7 : Percentage of indirect sales channel (in percentage) Figure 2.8: Volume of direct sales channel Figure 2.9: Rate of sales for PVN’s companies LIST OF TABLES Table 1.1: SWOT matrix Table1.2: Human resource situation in the company by December 31st, 2009 Table 2.1: Tien Hai mineral water output over the years tank Table 2.2: Consumption of natural Tien Hai mineral water Table 2.3: Mineral water turnover in term of brands Table 2.4: SWOT analysis of competitors Table 2.5: Five-force analysis model for Tien Hai mineral water Table 2.6: External Factor Evaluation matrix Table 2.7: Internal factor evaluation matrix Table 2.8: Turnover of direct sales for PVN’s companies Table 2.9: Bonus from sales 8 ABBREVIATIONS PVN: PetroVietnam GDP: gross domestic product R&D: reseach & development SWOT: Strengths, Weaknesses, Opportunities, and Threats QSPM: quantitative strategy planning matrix EFE: External Factor Evaluation IFE: Internal Factor Evaluation FS: Finance Strength CA : Competitive Advantages ES : Environmental Stability IT: Information technology P.T: Policy, Economics, Social/demographic, Technological 9 INTRODUCTION I. Background In the context of globalization, competitive pressure among companies is increasing. Especially, the fluctuations of the economy in recent times are forcing businesses to have appropriate measures to respond quickly to changes in the environment.
Strategic management has been considered one of the important business philosophy to help businesses achieve success in the long term. However, the application of this theory still needs to consider with most enterprises in Vietnam. Established in 1994 by decision of the General Director of Vietnam Petroleum, Thai Binh Petroleum Service Co., Ltd is a member company of Vietnam Petroleum (PetroVietnam) The head office located at Tran Lam ward, Thai Binh City. Apart from the advantages of the investment from Vietnam Petroleum, Thai Binh Petroleum service Co., Ltd has continuously investing in modern equipment and technology, improved designs as well as complete Tien Hai mineral water products with own efforts, and the company has been owned and Technology Department of Vietnam shall protect proprietary trademarks.
The management of quality products comply with ISO: 9000-2001 with the modern technology chain, closed control by Italy and the United States from the production technology, water treatment, using ultra-pasteurized purple and the fully automatic bottling. However, there are more and more bottled water products and the market is becoming so competitive, the name of Tien Hai mineral water still a unobstrusive level. In order to develop stronger in the coming years, it is necessary for company to adjust of present strategies, especially marketing strategy or financial strategy to stay stable in the bottled water which is on its way to be saturated. We decided to choose the topic "Building business development strategy of Tien Hai mineral water for Thai Binh Petroleum Services Company Ltd in the period 2010-2015".
This topic is not the application of knowledge management strategies 10 for businesses, but also highly practical, contributed to the current activities of the Company II. The purpose of research The research focused on issues following: - Mentioning the fundamental theories of strategy and strategic management. - Mentioning the useful models to analyze the process of establishing and choosing strategy. - Analyzing the real situation in which company has been implementing its strategy.
- Analyzing the factors of the external and internal environment which affect on company’s strategy - Proposing the appropriate solutions to build the development strategy for Tien Hai mineral water product of Thai Binh Petroleum Services Company Ltd from 2010 to 2015 III. Objective, scale and methodology - Objective and scale: The research focuses on current strategic management activities of Thai Binh Petroleum service Co., Ltd and provides some solutions for the period of 2010-2015 - Methodology: The research used two sources of information: Primary and secondary information. The secondary information came from various sources. However, a major percentage of them were from reports about current business situations of Tien Hai mineral water brand which were provided by Thai Binh Petroleum Services Company Ltd.
Besides, they were also gathered from many opened sources such as internet and books. In addition, the research took uses of information from reports of company. Structure of the report 11 The report includes the preamble and 03 chapters. The major contents of each chapter is presented as follows: CHAPTER I: LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT CHAPTER II: THE REAL SITUATION OF PRODUCTION-BUSINESS ACTIVITIES FOR TIEN HAI MINERAL WATER PRODUCT OF THAI BINH PETROLEUM SERVICE COMPANY Ltd CHAPTER III: SOME SOLUTIONS TO BUILD DEVELOPMENT STRATEGY FOR TIEN HAI MINERAL WATER PRODUCT OF THAI BINH PETROLEUM SERVICE COMPANY Ltd 12 CHAPTER I: LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT 1.
Overview of strategy and strategic management 1. Fundamental definitions Definition of strategy 1. Strategy is a process of determining long-term basic targets of a business, selecting method or guidelines for action and distributing essential resources to achieve such targets. Strategy is a format or a plan of coordinating main targets, policies and action order into united whole.
Strategy is a unified, comprehensive and coordinative plan made to ensure that the company’s major targets will be reached (William J. Porter, the Father of competitive theory thought that: Firstly, strategy is to create valuable and original position consisting of different operation. Secondly, strategy is selection and swap in competition. Thirdly, strategy is to create coherence among all activities of a company.
In conclusion, strategy firstly involves in a business’s targets. Secondly, it is a method to perform actions and decisions which are closely involved in each other Internal The Strategic and select method of coordinating such environment actions and decisionsManagement Strategic Intent (Strategy of a Strategic Input Process company must make full use of major advantages Strategic and capacity as well as foresee External Mission external environment’s opportunities and challenges).