VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS CHU LE TRUNG BUILDING STRATEGY FOR PETROVIETNAM UNIVERSITY IN STAGE 2011-2015 Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr. Do Xuan Truong Hanoi—2011 TABLE OF CONTENT ACKNOWLEDGEMENTS ABSTRAC TÓM TẮT. TABLE OF CONTE. LIST OF ABBREVIATIONS.
LIST OF TABLES: LIST OF FIGURES. Necessity of the the: 2. Objectives of the thesis. Scope of works.
Structure of the thesis. CHAPTER 1: LITERATURE REVIEW 1. Strategy and role of strategy 1.1 Definition of strategy _ 1 12 Roleofstrateay. Strategic management process.
Strategic vision and business mission. External environment analysi 5.2 Industry analysis: Porter’s Five Forces modal.1 Value chain analysis _ 15 6.2 Prowess 1a identiily sustainable compelitive advantages 17 7. T1 What is SWOT?. hờn 18 13 SWOT matrix - 30 8.1 Levels of strategy - The Strategy making pyramid 23 9.2 Speolle stralegy at different levels — 23 10.
CHAPTER 2: ANALYZE THE CASE OF. PETROVIETNAM UNLVERSITY - PYU. PVU Project— The imperative. 11 Overview about PetroVietnam PVN 1.2 Overview about PetroVictnam University — PVU.
External environment analysi 21 Macroanalysis PEST model.2 Industry analysis —Five forces model " 60 3. 87 33 Oppolumitics - - 69 340 Threats - 70 CHAPTER 3: STRATEGY FORMULATION AND IMPLEMETATION.3 Strategy formulation ¬- Hị 14 Strategy slection .1 Action plan of Organisational management & Policy strategy 86 22 Action plan of Marketing strategy " 88 CONCLUSION. viii LIST OF ABBREVIATIONS PYN Vietnam Cul and Gas Group PVU PetroViemam University MOET Ministry of Education and Training, SWOT Strengths, Weaknesses, Opportunities, ‘'hreats GREAT Gain, Risk, Expense, Achievable, Time PEST Politics, Economies, Social, Technology JVC Join Venture Company Information Technology icr Information Communication ‘'echnology JOT On the job training Joc Join Operation Company GDP Gross Domestic Product DPU Danang Polytechnic University Ilo Chi Minh Polytechnic University Hanoi University of Mining and Geology Hanoi University of Technology PetroVisttam Manpower Training College PetroVietnam Finance Company VPI Vietnam Petroleum Institute PR Public Relation ABET Accreditation Board for Engineering and Technology TIEC Texas International Education Consortium LIST OF TABI.1 Industry’s entry and exit barriers ‘Table 1.2 Bargaining powers of suppliers and buyers Table 1.3 Model of SWOT matrix Table 1.4 Appropriate strategies selection (GREAT model} Table 2.1 Estimated number of employees needed m period 2016 — 2025 of PVN Table 2.2 Vietnam GDP Growth rate 2006 - 2010 ‘Table 2.3 Statistics of Vietnam University Liducation Table 2.4 SWOT Analysis Table 3.1 Strengths — Opportunitics Strategies (S — O strategies) Table 3.2 Strengths — Threats Strategies (S —T strategies) ‘Table 3.3 ‘Weaknesses — Opportunities strategies ( W — O strategies) ‘Table 3.4 Weaknesses ‘Ilreats Strategies (W 'T strategies) Table 3.5 PYU’s appropriate strategics sclection (GREAT model) Table 3.6 Action plan of Organizational management & Policy stralegy Table 3.7 Action plan of Marketing strategy LIST OF FIGURES Figure 1.1 Strategic management Model Figure 1.2 External environment Figure 1.3 Five Forces Model igure 1.4 Value chain Figure 1.5 Process to identify sustainable competitive advantages Figure 1.6 The strategic making pyramid model in a diversified company Figure 1.7 Model of business strategies Figure 2.1 Logo Petro Vietnam Figure 2.2 The Number of employees of PVN in 2010 Figure 2.3 The structure and level of labor PVN in 2010 Figure 2.4 The structure of working age PVN in 2010 igure 2.5 Logo PetroVietnam University igure 2.6 3D model views of PVU s Main campus in Vinh Phuc Figure 2.7 Socialize education model Figure 2.8 Vietnam GDP Growth rate 2006 — 2010 Figure 2.9 Vietnam Population Pyramid 2010 INTRODUCTION This part will give an introduction to readers about the thesis. irstly, the necessity of the thesis is mentioned, next are objectives of the thesis, then researches questions are raised up, followed by scope of work, methodology, thesis‘s contributions, expected results, further research directions and limitations of the thesis.
Finally, the thesis structure is presented in order to help readers have an over-all picture of the whole study. Necessity of the thesis - PVU has just been established in the early of 2011, PVU have the business lovel strategy very clear is Dillirentiation stralogy. Bul they didn’t have clear functional strategies and “what are most important fields must be focus” is big, question for them in this stage. - PYN and PVU's managers desire to tntild PVU as a intemational university: become one of the best urriversilies tu Vielnarn and area on 2020s.
- Almost international universities have the clear strategy. This shows the necessity of building the strategy in order to make differences with other universities as well as designing a development pathlength for the university itself. Objectives of the thesis - Review the theory in strategy and strategic management - Analyse the case of PetroVielnam Universily in the Grst slage - Propose some recommendations in order to build the strategy of PVN in stage 2011-2015 3. Research Questions - What is strategy and what is the role of strategy’? - Which factors will affect to build strategy of PVU - Which strategy will be suitabte for PVU in the very first state ˆ Scope of works - Field: Strategy and stralegy management > Space: All activitics of PVU - Time: About 5 years from the establishment 2011 - 2015 5.
Data source - Strategy in ew stage of PVN - Consulting project. of PVN with TIEC - Intemet, books and ebooks - Experts (Manager of PVU, Educational expert. Expected Results - Giving out a general picture of the educational field - Giving out a deep analysis about the case of PVU - Propose some recommendations for functional level strategy for PVU in the slage 2011 - 2015 7. Structure of the thesis INTRODUCTION CHAPTER 1: LITERATURE REVIEW CHAPTER II: ANALYSE THE CASE OF PETROVIETNAM UNIVERSITY CHAPTER LIL: STRATEGY FORMULATION AND RECOMEN DATION CONCLUSION: REFERENCE APPENDIX CHAPTER 1: LITERATURE REVIEW Literature review is an important chapter of any thesis; it helps readers to remind about strategic theories relating to the thesis’s topic.
In this chapter, the theory in strategy and shategic management will be reviewed as a basic for analyses in next chapters. 1, Strategy and role of strategy 1.1 Definition of strategy Strategy is a broad term which covers alll of the activities of an organization. In the theoretical base, there are various definitions about strategy. Professor Arthur Thompson and Strickland, in their book Strategic Management? defined “strategy” as a “game plan” management has for positioning the company in its chosen markel arena, compeling sucvess[ully, salislying customers, and achieving good business performance.
1n this definition, the term of “positioning” is emphasized, as Thompson saw the importance of identifying clearly the positioning of the company in the market Dr. Erica Olsen, in her book “Strategic Planning for Dummies”, has given another definition: “Strategy means consciously choosing to be clear about your company’s direction in relation to what’s happening in the dynamic environment, With this knowledge, you're in a much better position to respand proactively to the changing environment”.Porter of Ilarvard University, USA, has stated his own Viewpoints in the article “What is strategy?” in Harvard Business Review. In his opinion, strategy is performing different activities from rivals’ or performing similar activities in different ways. It is the creation of a unique and valuable Adthur Thompson and Stickdands, Strategic Management: Concepts and Cases,10th edition, McGraw Hill position, involving a different set of activities.
Strategy, therefore, is quite different from “Operational Liffectiveness (OL!) which is only “Performing similar activities better than rivals perform them”. Although both operational effectiveness and strategy are necessary for the superior performance of an organization, they operate in different ways. From the viewpoint, il cant he seen thal a company can overcome rivals only if il can establish a difference it can preserve and maintain this. Ile also points out some certain core points when inenliomng strategy: Strategy depends on unique activities.
Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value, Strategy creates the fit driving Both Competitive Advantage and Sustainability. It is considered as a system. Therefore, if a company has a sound and clear strategy, i can create a difference system which is very difficult to imitate, and they can brings both competitive advantage and sustainability From these definitions, it can be seen that although the description of strategy are different, all authors agreed at a common viewpoint that strategy is a clear and best way (or road map) thal a company has to “choose” to go lo reach success.
As there might be different ways, a company can only choose the best way and ignore others. T£ not, if will go around and never reach the final destination. 1⁄2 Role of strategy Strategy plays an important role in the overall business activity of the company. Firstly, it helps the company go ahead in a clear direction, avoid being mislead in the way ahwad or go around ina eirele.
Secondly, a clear and sound strategy helps to clarify and communicate within the organization and to its customers/partners, so that all knows where the company goes and all implement this strategy in a consistent and coordinated way. Thirdly, strategy helps companics to create the competitive advantage and stimulate the sustainable development of the company in the long-term by focus all of its resources to implement which is considered as critical activities and to design an effective business system in order to maintain its chosen positions in the market. By doing this way, strategy helps companies to refuse implementing unimportant activities, therefore, save time, efforts and resources and reinforce the strong position. lt can be said that, without a sound strategy, company hardly can maintain and develop its position in the market in the long-term.
Strategic management process The Strategic management. process is a problem which is interested by many strategists as well as economists. Simply understanding, strategic management is a process of implementing “stralegic decisions” to answer 3 main questions: 1- Where is the company now? 2- Where will the company g0? 3- How can the company reach there’? As there are many different viewpoints in strategic management process, within the limitation of this thesis, a model of Strategic management is rebuilt up based on 2 models of Thompson and Strickland (which are Five Tasks of Strategic maragement model and The Stralegy making pyranid model), to present. the relations among major steps in the process Figure 1.1: Strategic Management Model SEARS External analysis swor Internal analysis ‘Opportunities & Analysis Strengths & “Two-Way Influence ‘Two-Way tnfluence ‘Two-Way Influence organization Source: Based on Arthur Thompson and Strickland, Strategic Management: Concepts and Cases, 10th edition, McGraw Hill Companies, the Five Tasks of Strategic management Model and the Strategy Making Pyramid model.
It can be scen that there are several steps in that model: - Firstly, the strategic management process begins with the identification of vision and mission of the company, which is to answer the questions “Where will the company go?” - Secondly, the strategist should analyze the environment, including, external and internal one, this is to answer the question “Where is the company now?” and “What does the company have om - Thirdly, the strategists have to set its own objectives, these objectives is in shorter time Uhau the vision and mission, they mmght. be armual or in several ‘years and are very specific. ‘They can be illustrated as the milestones in the way that the company would like to go. - Fourthly, sller kuowing the poit of departure and of destination, the strategist has to draw out how the company can reach there, by what means, and what resources it has to prepare for, that is called a strategy Then, the manager will organize to implement the strategy During the process of strategy umplementation, it needs the evaluation and monitoring, to revise if the way it goes is right and the best way and if there is another better way Lo go, as ihe envirorament chauges very quickly.