GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT STRATEGIC BUSINESS PLANNING FOR NINH BINH POWER COMPANY IN PERIOD 2011-2015 Group 7 – GaMBA X0409 Names of Students: 1- Bui Quy Hung 2- Ta Huu Son 3- Vu Tien Duc 4- Hoang Dinh Thuat Ninh Binh, June 2011 Group 7 – GaMBA01.X0409 CERTIFICATION We certify to the best of our knowledge that this assignment is the original work of Group 7 of Intake GaMBA X0409. All the data and results of studies in this assignment are true and have never been used for any other studies of similar content. We also certify that all the support to provide the data for this assignment has been endorsed by Ninh Binh One-member Ltd., and all the quoted information in the report is true and quoted from reliable sources. Assignment Co-writers Group 7 – GaMBA01.X0409 ACKNOWLEDGEMENTS First, we would like to express our gratitude to the Center of Training Technology and Employment System – Ha Noi National University and the US Griggs University have jointly delivered the course for the training of Masters of International Business Administration in Viet Nam.
In this training program, we have the opportunity to access to the advanced knowledge on Business Administration drawn from the studies of the world-renowned economists. With the advanced and efficient learning approaches utilized in the course, we have been provided with a comfortable learning environment that enables us to grasp the best knowledge. Next, we own our embedded thanks to the management of Ninh Binh One-member Ltd. Power Company, who has supported us in our access to the information and data of the Company’s business operations in the past period to finalize this assignment.
Lastly, our assignment would not be possible without the timely and enthusiastic guidance from the lecturers of the course, of the Center of Training Technology and Employment System, as well as the support of the staff at Ninh Binh Power Company. We thank you all for your kind support! Assignment Co-writers Group 7 – GaMBA01.X0409 TABLE OF CONTENTS CERTIFICATION.3 TABLE OF CONTENTS.7 LISLT OF TABLES AND FIGURES. Scope of Study. Structure of the Assignment.
3 CHAPTER I - THEORIES OF BUSINESS STRATEGIC PLANNING. Corporate Business Strategies.Concepts of Corporate Business Strategies.Typical Features of Corporate Business Strategies. Strategy Development Process.Review of Current Mission, Objectives and Strategies.Analysis of Internal Factors. Operational Administration and Organizational Culture.
Developing IFE Matrix.Analysis of External Factors. Developing EFE Matrix.Developing and Crafting Strategies. Developing SWOT Matrix. Crafting Strategies using QSPM Matrix.18 SUMMARY OF CHAPTER 1.
21 CHAPTER II – ANALYSIS OF THE BUSINESS PERFORMANCE NBPC IN PERIOD 2008-2010. Overview of NBPC.Organizational and Management Structure.NBPC Business and Operational Performance. NBPC’s Business Activities. Business Performance of Products and Services.
NBPC’s External Environment Analysis. The Bargaining Power of the Suppliers. The Bargaining Power of the Customers. Barriers to the New Entries.Developing EFE Matrix.
Opportunities and Challenges for NBPC. NBPC’s Internal Environment Analysis.Technological Process of the Production of Pre-stressed Spin-cast Concrete.NBPC’s Financial Capability.NBPC’s Human Resources.Developing IFE Matrix.Developing SWOT Matrix and the QSPM Matrix. The Formation of the QSPM Matrix. The BCG Tool - Growth-Share Matrix.59 CHAPTER III – BUSINESS STRATEGY ORIENTATIONS AND PROPOSALS FOR THE DEVELOPMENT OF NINH BINH POWER COMPANY IN PERIOD 2011-2015.
General Orientation of NBPC. Rationales for the Objectives. NBPC’s Development Objectives to 2015. Strategy Development of NBPC in 2011-2015.1 Strategy Development at the Company Level.2 Strategy Development at Specialized Business Unit Level (SBU).2 Telecommunication and Cable TV Products.3 Spin-cast Concrete Electric Poles.
Measures to Implement the Strategies.Activity Administration and Technology. Strategy Implementation, Monitoring and Assessment.Assessment on Strategy Implementation.Comparison between Implementation Results and Objectives, and Strategy Adjustment.X0409 ABBREVIATIONS EVN Viet Nam Electricity Group NBPC Ninh Binh One-member Ltd. Power Company KWh Kilowatt per hour KV Kilo voltage KVA Kilo voltage ampere Group 7 – GaMBA01.X0409 LISLT OF TABLES AND FIGURES Table 1.1: Internal Factors Evaluation Matrix Table 1.2: External Factors Evaluation Matrix Table 1.3: SWOT Matrix Table 1.4: QSPM Matrix Figure 1.1: BCG Matrix Figure 1.2: Positions of the components in the BCG matrix Figure 2.1: Organizational and Management Structure of NBPC Table 2.1: Business Performance of NBPC’s Products and Services in 2008 – 2010 Figure 2.2: Breakdown of Telecommunications Service Market Shares in Ninh Binh province in 2010 Figure 2.3: Breakdown Market Share of Electricity Pile Supply in Ninh Binh province in 2010 Table 2.2: Sales of Pre-stressed spin-cast concrete electricity poles in Ninh Binh in 2008-2010 Table 2.3: EFE Matrix for NBPC Figure 2.4: The Flowchart of Production Process of Spin-cast concrete Poles Table 2.4: NBPC’s General Business Results in 2008-2010 Table 2.5: Revenues by Business Segments Table 2.6: After-tax Profits by Business Segments Table 2.7: NBPC’s Targets for Liquidity in 2008-2010 Table 2.8: NBPC’s Targets for Assets Management Capacity in 2008-2010 Table 2.9: NBPC’s Targets for Profitability in 2008-2010 Table 2.10: NBPC’s Targets for Loan Management Capacity in 2008-2010 Table 2.11: NBPC’s Personnel Structure by Professional Qualifications Table 2.12: NBPC’s Personnel Structure by Age and Gender Table 2.13: IFE Matrix for NBPC Table 2.14: SWOT Matrix for NBPC Group 7 – GaMBA01.15 – QSPM Matrix for NBPC’s Production of Electricity Poles and Pre- stressed Spin-cast Concrete Figure 2.5: BCG Matrix for NBPC’s Products Table 3.1: Contents of the Monitoring and Assessment of Strategy Implementation Group 7 – GaMBA01. Background Electricity is an essential factor that influences the growth of an economy.
Electricity shortage or high power supply prices will cause big problems to the economy. The operations of the electricity industry are composed of three inter- related segments: - Electricity sources – power generation plants; - Power transimission – institutions in charge of managing the transmitting systems; - Power supply – electricity suppliers to customers; Rapid economic growth and increased living quality requires corresponding growth of the country’s electricity industry to ensure sufficient power supply to meet the increasing socio-economic and domestic uses. Over the past years, the imbalance between power supply and demands is a real problem. The current electricity prices do not reflect the real costs, and the technology and technical infrastructure of the industry remains a constraint.
To solve these problems and create foundation for sustainable growth of the electricity industry of Viet Nam, the Government has taken various measures, one of which is to restructure the industry. With the foreseen continuous national economic growth, it is required that the local electricity industry respond by continuing its rapid growth. The State has started to transform the local electricity industry by diversifying the power companies (Electricity and Petroleum Corporation, Electricity Corporation of the Coal Business Group, and a series of power generation plants beyond the EVN’s ownership,) with the ultimate goal towards a more competitive local electricity market. Ninh Binh Power Company is one of the provincial power companies in Viet Nam with medium size and efficient business operations.
Rationale To ensure sustainable business development of the Compnay and meet the demands of the business owners, employees and the local economic growth, building effective business strategies is critical to Ninh Binh Power Company. Objectives To set out business strategies of Ninh Binh Power Company with suitable products for iproved efficiency over those power supply companies that have not undergone restructure. Such improvement will help the company better meet the demands of its customers, employers, shareholders and local economic growth. More importantly, it will contribute to increased share prices of the firm.
The business strategies to be built for Ninh Binh Power Company can be used for other provincial power supply companies of similar conditions to improve the business efficiency of these firms. Scope of Study 4. Location The study is conducted in Ninh Binh province and other related markets where Ninh Binh Power Company supplies it power products. Its key products and services are electricity, electrical engineering, spin-cast concrete poles, telecommunications services and trading.
Timing The assignment will look into the business performance of Ninh Binh Power in period 2008-2010 to provide comments on their achievements and constraints. Based on their success and constraints, and the identified opportunities, threats, strengths and weaknesses, the study group will provide some forecast of the Company’s future business situation to propose business strategies for the Company in period 2011-2015 to enhance its efficiency and effectiveness beyond the industry’s average level. Methodology The group uses mixed methodology for this assignment that includes descriptive analysis, data collection, synthesis and forecast to analyze the business performance of Ninh Binh Power Company. Structure of the Assignment Apart from the annexes, tables and figures, and attached images, the assignment is composed of the following components: - Executive Summary - Chapter 1: Theories of business strategic planning - Chapter 2: Analysis of the business performance of Ninh Binh Power Company in period 2008-2010 - Chapter 3: Business strategy orientations and proposals for the development of Ninh Binh Power Company in period 2011-2015 - Conclusions - Bibliography 3 Group 7 – GaMBA01.X0409 CHAPTER I - THEORIES OF BUSINESS STRATEGIC PLANNING 1.
Corporate Business Strategies 1. Concepts of Corporate Business Strategies A common question raised in business world is why some firms are successful in their businesses, why others fail? In deed, each firm has its own means to exist and grow. It is unnecessary that all the firms compete with the others in serving a group of customers in the same way to respond to the changes that influence their business operations. Therefore, it is essential that each firm develop its own business strategies for its business operations.
The term ‘strategy’ is originated from the ancient Greek time in the military area that depicts the role of a colonel in the army. Later, it was developed to “the tactics of military leaders” when indicating the skills and sentiment of these leaders. Over the many historical upheavals of the mankind, the term ‘strategy’ is gradually used in other fields or areas, and brings much success to those leaders who can flexibly use it, especially in the area of business production and operations. Strategies have been gradually recognized as an orientation and a management approach, which is decisive to the production and business efficiency of a firm.
There are different viewpoints and concepts of strategy. Each of these viewpoints and concepts is appropriate and correct during the studied period of the assignment. Each strategy consists of five factors: 1) Objectives; 2) Implementation schedule; 3) Strategic decision making process; 4) Environment; 5) Weaknesses, strenghts, opportunities and risks. Based on the foregoing analysis, a condensed concept of business strategies can be drawn as follows: Corporate business strategies are a unified combination of 4 Group 7 – GaMBA01.X0409 objectives, policies and coordination of the operations of the different business units based on the enterprise’s resources to bring out the highest business efficiency for the firm.
Typical Features of Corporate Business Strategies The typical features of business strategies of each business sectors and areas vary. To develop effective corporate business strategies, it is essential that business leaders or strategists have thorough understanding of the typical features of their firms, and the key lines of business and services they are dealing in. They are also required to distinguish between the typical features of the strategies and other related concepts and definitions.