CAPSTONE PROJECT REPORT BUILDING AND SELECTING STRATEGY TO DEVELOP HANOI WESTERN MARKET OF PETROVIETNAM FINANCE CORPORATION – THANG LONG BRANCH (PVFC THANG LONG) IN 2011 – 2015 PERIOD AND VISION TO 2020 Nguyen Tu Anh Luong Minh Tuan Tran Luu Kien Bui Huy Quang GaMBA01.X03 Hanoi, 2010 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING AND SELECTING STRATEGY TO DEVELOP HANOI WESTERN MARKET OF PETROVIETNAM FINANCE CORPORATION – THANG LONG BRANCH (PVFC THANG LONG) IN 2011 – 2015 PERIOD AND VISION TO 2020 Group No: 06 Members: 1. Nguyen Tu Anh 2. Luong Minh Tuan 3. Tran Luu Kien 4.
Bui Huy Quang Hanoi, 2010 COMMITMENT We commit that the content of this capstone project report has not been submitted to any master program of any other training programs. We also commit that this capstone project report is the effort of our group’s members. All the results, analysis and conclusion in this capstone project report (apart from those are cited) are the result of the group’s working. SIGNATURE OF TUTORS ACKNOWLEDGEMENT We would like to thank the Center for Educational Technology and Career Development (ETC) – Hanoi National University, the lectures and cadres in the Department for having conscientiously teaching, guiding and creating condition for us during the learning period in class GaMBA01.X03 and completing this course.
We would like to thank the teachers for having enthusiastically teaching, guiding and being responsible to help us during learning, studying process and finishing this capstone project report. We are grateful to Vietnam National Oil and Gas Group - PetroVietnam Finance Joint Stock Corporation – Thang Long Branch for facilitating and helping us to conduct this capstone project report. We are indebted to our colleagues, friends and families for encouraging and helping us. Thank you so much! TABLE OF CONTENT PREFACE.
Reasons for selecting the topic. Objectives of the study. Scope of the study. Methods of the study.
Questions of the study. Limitations of the project. Structure of the project.4 CHAPTER 1 – THEORETICAL BASE. STRATEGY AND MAREKTING STRATEGY.
Implications and roles of marketing strategy. PROCESS OF BUILDING STRATEGY. Mission and vision. Objective of marketing strategy.
External environment analysis.1 Macro environment analysis – PEST model (Political – Economic – Social – Technology).2 Micro environment (sectorial environment) analysis. Internal environment analysis.1 Analyzing according to fields of operation – Value chain.2 Process of recognizing sustainable competitive edge.1 General arguments on SWOT analysis.1 Cost-leadership strategy.2 Product differentiation strategy.4 Combining common strategies.34 Summary of Chapter 1.34 CHAPTER 2- ANALYSE MARKET SITUATION OF PVFC THANG LONG. GENERAL VIEW ON PVFC. Establishment and growth.
The business operation criteria. Development orientation until 2015 and a vision to 2020-2025. THE PROCESS OF FORMATION AND DEVELOPMENT OF PVFC THANG LONG. Formation and development.
The organizational structure of PVFC Thang Long. Main products and services of PVFC – PVFC Thang Long. MARKET AND MARKET SHARE DEVELOPMENT SITUATION. Market development situation.
The strategy on customers of PVFC Thang Long. ASSESSMENT ON MARKET DEVELOPMENT OF PVFC THANG LONG AT PERIOD OF 2007 - 2010. Limitations and reasons. BUILDING AND SELECTING STRATEGY TO DEVELOP HANOI WESTERN MARKET OF PETROVIETNAM FINANCE CORPORATION – THANG LONG BRANCH IN 2011 – 2015 PERIOD.
Analyze external environment.1 Analyze macro environment - PEST model.2 Analyzing industry environment – the 5-force model of M. Synthesize analysis of external environment.2 Environmental inside analysis – the value chain.90 CHAPTER 3: DEVELOPMENT STRATEGY TOWARD HA NOI WESTERN MARKET AND SOLUTIONS FOR PVFC THANG LONG.1 DEVELOPMENT TARGET OF PETROVIENAM FINANCE CORPORATION BY 2015 AND ORIENTATION TO 2025. DEVELOPMENT ORIENTATION FOR PVFC THANG LONG BY 2015 94 3. The concrete development orientation for PVFC TL by 2015:.
The development routine by 2015 including 3 periods:. OPTIONS IN MARKET DEVELOPMENT STRATEGY OF PVFC THANG LONG. Select the market in Ha Noi West area basing on SWOT model. Marketing development strategy based on economic environment.
Brand development strategy. The solutions for the strategy 1 – The strategy of the focus. The solutions for strategy 2 – The strategy of distinction. SUGGEST SOME SUPPORTING SOLUTIONS.
LIMITATIONS OF REPORT AND THE NEXT RESEARCHING ORIENTATION.105 CONCLUSION OF THE THESIS. 107 LIST OF ABBREVIATIONS Abbreviation Content GDP Gross domestic products PEST Political – Economic – Social – Technology Model PV National Oil and Gas Group (PetroVietnam Group) PVFC PetroVietnam Finance Joint Stock Corporation PVFC Thang PetroVietnam Finance Joint Stock Corporation – Thang Long Long Branch SO Competitive strategy combining Strengths-Opportunities of the company ST Competitive strategy combining Strengths-Threats of the company SWOT Strengths - Weaknesses - Opportunities – Threats Matrix of the company CI Credit Institution Ltd. Limited CC Chartered capital WO Competitive strategy combining Weaknesses-Opportunities of the company WT Competitive strategy combining Weaknesses- Threats of the company LIST OF TABLES – GRAPHS – CHARTS (TABLES) Table 1.1: Process of building strategy.2: Analysis model of three-level internal and external environment.3: Five forces model of Michael E.4: Value chain diagram.5: Diagram of cross-functional goals and value chain.6: Process of recognizing sustainable competitive edge.8: Table summarizing suitable options for each strategy.1: Several criteria on business outcome in PVFC at the period of 2004 - 2009.2: Diagram of Revenue, Profit and the ratio of Profit/Revenue of PVFC Thang Long in the period of 2004 - 2009.3: The organizational structure of PVFC Thang Long.4: GDP growth rate of Vietnam from 1999 – 2009 (%).5: The matrix of impacting factor classification.6: Matrix of external factors.7: Matrix of competitive imagine.8: The scale of charter capital of credit organizations owning head offices and branches in Hanoi Western area in 2009.9: The scale of charter capital of some credit joint stock organizations locating head offices and branches in Hanoi Western area in 3/2010.10: The capital scale of several foreign banks 2009.11: CAR of some credit organizations locating head offices and branches in Hanoi Western area in period of 2007- 2010 (estimation).12: The growth rate of credit and financial products and GDP from 2004 to 2009.13: Assign weight in priority order.14: Evaluate threats against PVFC Thang Long.15: The density of service products and revenue of PVFC Thang Long from 2007 – 10/2010.16: The diagram of business and production values of PVFC Thang Long from 2007 – 10/2010.17: Compare features of services and products of PVFC – PVFC TL and Vinashin Finance Company.18: Diagram of revenue of main products and services of PVFC Thang Long 2010 (estimation).19: Diagram of comparing revenue of products and services in Oil and Gas industry (2009) in PVFC Thang Long and the outside of the industry.20: Diagram of financial product market share of PVFC Thang Long in the Plan 2009 of PVFC.21: Diagram of value chain of products and services of PVFC Thang Long .22: Diagram of value chain agents of service products of PVFC TL.1: SWOT model of product value chain in the general context of current business and production situation of Vietnam financial organizations. Topic Building and selecting strategy to develop Hanoi Western market of PetroVietnam Finance Corporation – Thang Long Branch (PVFC Thang Long) in 2011 – 2015 period and vision to 2020 2.
Reasons for selecting the topic We have a comparison like this: an enterprise without strategies is like a person who is walking on the road and does not know his/her destination and let the crown (the market and its rivals) drive it. A determined leader will not let the future of the enterprise go in that direction. Thus, the leader needs to be proactive in mapping out a direction for the enterprise and even tries to lead the market in its direction. In any conflict, which competitor can apply its playing style on the opposite, it will have more opportunities to win.
So, strategy is clearly an obligatory requirement for enterprises which have the ambition to lead the market. And do those who have no ambition to occupy the leading position need strategy? The answer is yes. You still need strategy if you do not want be hampered by other competitor in same sector and finally removed from the game. In fact, some enterprises which do not have strategy can be still developed.
Maybe it's because these enterprises have been lucky to have the market that does not have many competitors, or may develop thanks to a particular market condition, or have one or more advantages that other enterprises do not have (State-owned enterprises). However, how the fate of the business would be if at some point competition suddenly appears in the market, or those enterprises lose specific business advantages? 1 Moreover, whether the factors that have helped enterprises do business successfully in the past remain suitable to help enterprises continue to develop successfully in the new market conditions, a fiercely competitive market, a playing field that rivals are foreign companies, multinational corporations that have decades of experience with abundant capital and well-trained personnel a lot of experience from other markets? Obviously, to play in the new market environment effectively, enterprises need to be equipped with suitable knowledge to understand the new rules, have new skills and knowledge in line with the requirements of new market, and marketing skill is one of the most important skills for anyone wanting to play a role in any market today. Globalization has changed the nature of business operation. All enterprises want customers believe and buy their products rather than your competitors’.
To do that, companies need to better understand customers’ demands, they need better promote their products, and they need to build a long-term relationship between the brand and groups of targeted customers. For these reasons, marketing has become an important function in enterprises. However, marketing is not just a function of business operations; it is a philosophy that leads the entire operations of enterprises in finding, meeting and satisfying customer needs. Enterprises need to know how to identify and divide market in a way that they can have opportunities, know how to establish attractive solutions for offering customers, and build strong brand positioning.
They must know how to set prices for their solutions to maximize profit while maintaining competitive position, and how to select and manage distribution channels to bring their products to consumers in an effective way. Darwin's theory evolution can be also applied in business. To survive and grow, companies need to know to adapt to their own changes and those of business environment. From that reality, we have selected the topic: “Building and selecting strategy to develop Hanoi Western market of PetroVietnam Finance Corporation 2 – Thang Long Branch (PVFC Thang Long) in 2011 – 2015 period and vision to 2020”.
Objectives of the study • Synthesizing a systematic theoretical base on strategy and marketing strategy to serve the research to build marketing strategy for the enterprise; • Analyzing the impact of business environment on finance trading activities; • Recognizing the opportunities and threats, strengths and weaknesses of the enterprise. From that, setting out necessary measures on marketing strategies to enhance the effectiveness of specific business for PVFC Thang Long. Scope of the study In the scope of this project, we only concentrate on studying, building and selecting Western Hanoi market in 2011-2015 period. Methods of the study The project uses following methods: - The method of comparing, analyzing, generalizing to give comment - SWOT analysis: is the tactic to analyze and process the research result on the environment, helping enterprise work out scientific strategies, etc.
- Statistical method: collecting from graphs and then drawing out conclusion on the trends to assess the operation of the sector and the enterprise. Questions of the study - Why does the company need to have strategy and marketing strategy? - (If any), which marketing strategy is suitable with the company? - How to make the selected marketing strategy take effect? 7. Implications of the project 3 The project has systemized the theoretical base on building overall strategy and marketing strategy and applied specific strategy to develop Western Hanoi market for PVFC Thang Long. The project has analyzed the real operation of PVFC and PVFC Thang Long and selected suitable marketing strategy for the unit in the coming time.