VNU- UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF BUSINESS AND ADMINISTRATION THE SITUATION OF INTERNATIONAL ALLIANCE ACTIVITIES AT FPT GROUP Supervisor’s name: Dr. Do Tien Long Student’s name: Nguyen Thi Man Student ID: 10050070 Intake: QH2010-E Program: International standard Hanoi — May, 2014 ACKNOWLEDGEMENT KRREKKKEKEEKKKERE First of all, 1 would like to thank my Dr. Tien Long, Lecture of University of Business and Economics for his support and very useful advices throughout this research. With his instruction, I have completed my research in short period successfully.
And I am also enormously grateful to the people work in FPT who were willing to give me both primary and secondary data to support my research. There are a lot of words of gratitude to all my good friends who gave me a lot of information concerned about the materials, especially to my family, for their help and encouragement during this period. Finally, I wish the peacefulness happiness and health come to them. And, I also hope them more and more successful in the future.
Yours sincerely, Nguyen Thi Man H TABLE OF CONTENTS IMTEODUCTTƠN.V010116131034810000E830039 9500180017 007058 | CHAPTER I: LITERATURE REVIENW. Background of alliance. Definition Of al ANCCt secre sama omen meneserommemear on smu ggu5905088-1g7Ev. Definition of international aÌÏlariCe.
The features of international alliance. ee cee 2+ S112 tre. The forms of international aÌÏlanC€. The objective of international alÏlanC€.
The implementation of 1nternafIOnnaÌ. The risks and problems facing alllanCe€. 12 CHAPTER 2: RESEARCH CONTEXT AND METHODOLOGY. Introduction of FPT GrOUD.- cv ST nhờn nh nhàng HT Hà, 15 2.
Development process of FPT Group. Organization structure at FPT Group. The field of business at FPT Group. cece cece crecteeeeeessseseseeeeeeeens 18 2.4, The purpose Of PPT 's.
strategy ssccsensmesensessensnnsarsennensenvertynsenen ee veeg coneneneeneens 19 2. The results of business activities between 2009 and 2013. Methodology T€seáaï©ÌH.- --- -- + ng TH ng HH HH HH Hà 22 2. DJ 4IATNđTWS 18 are tang cung rsa ra estar meron aera eR ENE BN eter sasesrceieutS 23 CHAPTER 3: RESEARCH RESULTS AND ANALYSIS.
The factors affect to FPT's international alliance actIVitles. The elements of macro environMent. The elements of micro enVITOTIM€TIĂ.- St tt HH Hee25 3. FPT's international alliance activities COnf€XÍ.
The objective of FPT's international alliance occ cece cere eeeeeeeees2 3. The forms of FPT's international aÌÏlanCe. ce eee cee eee teeseeneeeeeeees 29 3. The stages of FPT's international alllance.
The analysis performance of FPT's international alllance. The strengths and weakness of FPT to international alliance. The results of international alliance during 2009 -2013. The assessment of the situation international alliance at FPT during 2009 — “06m.40 CHAPTER 4: FINDING AND DISCUSIƠN.
International alliance trends in the WOTÌ. SWOT analysis of FPT alliance sIfuat1OT. Development orientation in FPT's international alliance activities during 2012 - “0. Suggestions in promoting in international alliance at FPT.
Short — term orientations (1 — 3 years ). Medium — term orientations (3 — 5 y€ATS). Long — term orientations (5 — 10 years) .--- sec coeS55 5884 0838836E8650085330700 88 10051354088 75552381 1558 62 1V LIST OF FIGURES Figure 1.1 A structured alliance process .1 Executive apparatus at FPT Group .2 Operation structures at FPT GrOup.1 Business performances by segments in 2013 .2 Business performances by segments in 2013 oo. eee eeeeteeeeeee 36 Figure 3.3 Number of employee at FPT Corporation during 2009 - 2013.
37 LIST OF TABLES Table 2.1 Finacial performance during 2009 — 2013 oo. cece eeeeeeeseeeeeeneeeeeeee: 21 Table 3.1 Business performance by telecom S€CfOT.----- 5-5 << sS< << ceree34 Table 3.2 Employees by functionality .3 Assessment of FPT business performance during 2009 — 2013 .1 SWOT analysis of FPT situation «0. cee ceeeeeseeeseececeseseseteeeeeeeeeeetee 46 INTRODUCTION *k*xx+x*x**%** Globalization is the trend toward economic of the world nowadays. It involves much more than the expansion of trade and investment among nations.
So as, socialist —oriented market economy in Vietnam, cooperated - ability development is the necessity matter for enterprises that aims to take competences. Therefore, in most occasions, a firm may seek for partners to share the cost as well as risk. FPT Corporate has steadily adapted to inside and outside environment in development process since it was found. Besides, thanks to endeavor's staffs, leaders, FPT has established partnerships and opened market through international alliances well as remained production activities.
So that, FPT has taken more sales, profit than the previous and completed scheduled plan. Company also ensures budget, increases employee's income. Furthermore, market economy has inevitably been gone up so far. Today, there is a lot of deeper integration in economic areas come up and threat FPT's growth.
By question, How FPT Group can maintain alliance activities and stand constantly in hard competition among firms, eventually both inside and abroad. To exist and grow up in the new environment like this, FPT Group needs to nonstop struggling and enhancing its competences. Hence, this research purposes to understand international alliance situation in addition evaluate strength & weakness about FPT's those activities. Then, that also resolves limitations to encourage aboard cooperation.
Thesis theme: “The situation of international alliance activities at FPT Group” is written to contribute the purpose above. Here is the structure of content: Chapter 1: Literature review about alliance and international alliance Chapter 2: Introduction of FPT Group and Methodology Chapter 3: The situation of international alliance activities at FPT Group from 2009 to 2013 Chapter 4: Suggestions to improve international alliance at FPT Group CHAPTER 1 LITERATURE REVIEW 1. Background of alliance 1. Definition of alliance Alliance is a union or association formed for mutual benefit, especially between countries or organizations Strategic alliances are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources — financial, managerial, and technological — as well as their existing distinctive competitive advantages.
Alliances often called cooperative strategies are transaction mechanisms that propel the partners' strategies forward in a turbulent environment faster than would be possible for each company. According to Hill (2005) strategic alliance is referred as the cooperative agreements between or actual competitors, it is a relationship between firms to create more value than they can on their own. But, his definition narrowed the partner selection to competitors. In addition, Stafford define alliance as long term co-operative partnerships involving vender, competitor, or industry - related firms and was used to achieve some competitive advantage.
There are many different version have put forward by many economists and strategists. To combine the element of different perspectives, in general, the strategic alliance can be defined as a cooperative agreement between two or more companies for the aim of accessing complementary resources and skills that the company lacks under globalization process, and is used as a flexible way to achieve sustainable competitive edge. Economic alliance is cooperative and coordinative form regular activities while the economic units conduct voluntary set of guidelines and implementation measures related to manufacturing operation, business of the parties to promote production and business stakeholders to promote production and business development in ways that are most beneficial. Economic alliances (often called economic linkages or economic cooperation) are made on the basis of the principles of voluntary, equality , mutual benefit through economic contracts signed between the parties and within the framework of state law.
The goal of creating economic relationship stability through economic contracts or regulations to conduct operations and specialization of cooperation, in order to exploit the potential of each participating unit is affiliated, or together to create a common market. Economic linkages take many forms and different organizational scales, corresponding to production needs, associated participants. The common form is an association of production and consumption by sector or region, import and export federation. Definition of international alliance International alliance (international cooperation) is an International agreement on alliance between two or more organizations, businesses, independent companies to exploit the value of tangible and intangible.
“It is no longer an era in which a single company can dominate any technology or business by its self. The technology has become so advanced, and the markets so complex, that you simply can't expect to be the best at the whole process any longer ” Fumio Sato, CEO, Toshiba Electronics In the global economy, whether firm can master all the technologies, dominate the market and neither have the resources necessary to pursue all these goals. Eventually, a business owns all resources, still deals with huge challenging risks. However, the scope is no longer in a nation or an area it has reached abroad when firm joins international cooperation.
Therefore, it has been influenced by differences in geography, culture, environment, politics, society and economy in each country as the role of participants. These differences will incur a lot of difficulties on the nature and traits of the linkages, the application of legal procedures in management organization and controlling compared to inbound links. International cooperation, the enterprise must share in the distribution, value chain, market share, even duties and decision-making right, hence it sometimes still creates competition, making the less flexible in decisions. That continuously makes the partnership meet difficulties in system well as organization management.
So that, it costs and take time in order to adapt national culture, enterprises culture. It forces to reduce monopoly right. Although, there are many overtakes but international alliance is the top choices of leaders and decision makers of the business strategy to achieve goals as changing market and to implement ambitious global enterprises. Furthermore, it will create cooperation and international coalition which is typical interaction at the highest level in the shared commitment and administrative complexity between the association agreements.
Examples were General Motors and Citigroup having to spin off partners as well as retrench operation in order to main sufficient cash flow or Siemens (Germany) and Hewlett — Pack (United States) to create and market devices used to control technology. Another, in the case of Toshiba, firmly believes that a single company cannot dominate any technology or business by its self. Toshiba's approach is to develop synergistic relationships with different partners. Toshiba formed an alliance with Apple Computer to develop multimedia computer products.
Apple's strength lay in software technology, while Toshiba contributed its manufacturing expertise. Toshiba created a similar tie up Microsoft for hand computer systems. In semiconductors, Toshiba, IBM, Siemens came together to pool different types of skills. Toshiba was strong in etching, IBM in lithography and Siemens in engineering.
The understanding among the partners was limited to research. For commercial production and marketing the partners decided to be on their own. The features of international alliance Nowadays, international alliance takes place over all areas of economic, political, social, cultural and educational. It influences almost aspects of life.
In particular, the field of economics is might the most powerful, which attracted a variety of interested countries and become the inevitable trend of national economies in the process of global economic integration. In general, international economics alliance is essentially the integration process of each entity in a business environment of the world. International links can occur between two business entities, two national organizations or among multiples. When international links include many entities lead to a common objective, these ones often form a coalition of economic , forum , association or simply sign document, agreements reflected their purpose.
By this, each member takes responsibility for his rights and obligations, prescribed by the agreements & principles. In agreement, the rules will be the foundation of tight international cooperation order to activities take place in an efficient manner, consistent with the overall mission. International alliance has been formed and developed since integration process period that aims to survive and thrive in the current economic, without a nation can stand outside the global. Normally, a country actively engaged in associated activities, the one will become more proactive, more powerful, and well -known in region even in the world.
Likewise, enterprises need to achieve reputation on international market; they must also participate in the integration process, strengthening international cooperation.