Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (12)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING DEVELOPMENT STRATEGY FOR PETRO VIETNAM EXPLORATION AND PRODUCTION SONG HONG TO 2015 Group Number: No Student’s name: Nguyen Huu Nam (Leader) Thai Ba Duc Nguyen Ngoc Thuy Dang Thi Thuy Binh Nguyen Thi Hanh HANOI: 2011 ACKNOWLEDGEMENT On behalf of the group, we would like to send gratitude to dedicated support of lecturers in Center for Educational Technology and Career Development ETC, Post University Department – Vietnam National University; Griggs University – The US We also expressed our thanks to Board of Management of Petro Vietnam Exploration Production Song Hong, Manager in Planning – Investment department, Financial – Accounting department providing data for completion of this capstone project Although the group tried our best to well this capstone project, due to limited knowledge, this capstone project has limitations Thus, the group wishes to receive significant contribution of lecturers, colleagues and friends for the most effect COMMITMENT Group V Of class commits this is our own research project Data given in this capstone project is honest and has been not published in any scientific projects Hanoi, date 23rd month Dec year 2011 Group leader Capstone Project Report Gamba01.X0610 - Group No5 TABLE OF CONTENT TABLE OF CONTENT LIST OF FIGURE AND TABLES LIST OF ABBREVIATIONS INTRODUCTION CHAPTER 1: OVERVIEW ABOUT STRATEGIC PLANNING AND STRATEGIC MANAGEMENT 11 1.1 Theories about building and managing strategy .11 1.1.1 Concept about strategy and strategic management 11 1.1.2 The role of building strategy for enterprise .11 1.2.1.1 Gains 11 1.2.1.2 Risks 12 1.2 1.2.1 Steps of researching strategy 13 Analyzing external environment .13 1.2.1.1 Macro environment 13 1.2.1.2 Micro environment .14 1.2.2 1.3 Internal environment 16 Tools used to analyze and select strategy .18 1.3.1 Internal Factor Evaluation Matrix (IFE) 18 1.3.2 External Factor Evaluation Matrix (EFE) 19 1.3.3 SWOT matrix 20 1.3.4 QSPM matrix 21 1.4 Strategy building and choosing key strategies 23 CHAPTER 2: ANALYZING BUSINESS ENVIRONMENT OF PETRO VIETNAM EXPLORATION PRODUCTION SONG HONG 24 2.1 Overview of PVEP Song Hong 24 2.1.1 Establishment and development history 24 Capstone Project Report Gamba01.X0610 - Group No5 2.1.2 Products and services 24 2.1.3 Organization chat 25 2.2 Analyzing PVEP Song Hong business environment 25 2.2.1 External factors analysis 25 2.2.1.1 Macro environment analysis (PETS model) .26 2.2.1.2 Micro environment (Michael Porter’s five forces model) 30 2.2.1.3 External Factors Evaluation matrix 35 2.2.2 Internal factors analysis 36 2.2.2.1 PVEP’s valuable chain .36 2.2.2.2 Financial analysis .39 2.2.2.3 Company’s reputation and culture 41 2.2.2.4 Internal factors evaluation matrix .41 2.3 SWOT analysis for PVEP Song Hong 43 2.3.1 Strengths .43 2.3.2 Weaknesses 44 2.3.3 Opportunities 45 2.3.4 Threats 47 2.2.5 SWOT matrix for PVEP Song Hong .48 CHAPTER 3: CHOOSING DEVELOPMENT STRATEGY AND SOLUTIONS TO APPLY STRATEGY TILL 2015 51 3.1 Long term development target of PVEP Song Hong 51 3.1.1 Development orientation .51 3.1.2 Specific targets 51 3.2 Choosing development strategy for PVEP Song Hong till 2015 52 3.2.1 Choosing strategy via SWOT matrix .52 3.2.2 Choosing strategy via QSPM matrix .53 3.3 Solutions to apply development strategies till 2015 54 3.3.1 Invest in innovating technology and efficiency of exploration and exploiting 54 Capstone Project Report Gamba01.X0610 - Group No5 3.3.2 Financial solution 55 3.3.3 Solution for labor improvement 56 3.3.4 Improving efficiency of market forecast and marketing activities 56 3.4 Procedure to apply development strategy 57 CONCLUSION 59 REFERENCE 60 APPENDIXES .62 Capstone Project Report Gamba01.X0610 - Group No5 LIST OF FIGURE AND TABLES List of figure Figure 1.1 PETS model 13 Figure 1.2: Michael Porter’s five force model 14 Figure 2.1: PVEP Song Hong’s organization chart 24 Figure 2.2: Vietnam’s GDP growth rate in recent years 26 Figure 2.3: Economic structure changing in Thai Binh from 2010-2015 .27 Figure 2.4: Number of FDI project and amount into construction in Thai Binh .31 Figure 2.5: Supplier selection procedure of PVEP Song Hong 33 Figure 2.6: PVEP Song Hong’s Gaslift exploitation process 37 Figure 2.7: Financial data: Turnover, cost and profit from 2008-2011 39 Figure 2.8: Average income for PVEP Song Hong’s employees 43 Figure 2.9: Demand and exploration volume for oil and gas in South East Asia in 20012015 44 Figure 2.10: Demand of Gas in the period of 2010-2015 .45 Figure 3.1: Total exploration and distribution of gas in period of 2011-2025 51 List of table Table 1.1: SWOT matrix 19 Table 1.2: Quantitative Strategic Planning Matrix 20 Table 2.1: Company profile matrix for PEVVEP Song Hong 30 Table 2.2: Main equipment suppliers for PVEP .33 Table 2.4: PVEP Song Hong’s labor structure in period of 2008-2011 36 Table 2.4: Basic financial data of PVEP Song Hong from 2008-2011 38 Table 2.5: Internal factors evaluation matrix 41 Table 2.6: SWOT matrix for PVEP Song Hong .48 Table 3.1: Quantitative Strategic Plan Matrix of PVEP Song Hong .52 Capstone Project Report Gamba01.X0610 - Group No5 Table 3.2: Summary of procedure to apply development strategy 57 LIST OF ABBREVIATIONS ADB Asia Development Bank AFTA ASEAN Free Trade Area AIFTA ASEAN-China Free Trade Area ASEAN Association of Southeast Asian Nations BMI Business Monitor International EFE External factors evaluation FTA Free Trade Agreement IFE Internal factors evaluation ISO International Standard Organization MOIT Ministry of Industrial and Trade PV Petro Vietnam PVEP Petro Vietnam Exploration Production SBU Strategic business unit UNIDO United Nation Industrial Development Organization WTO World Trade Organization Capstone Project Report Gamba01.X0610 - Group No5 INTRODUCTION Necessity of project In the period of integration, enterprises are facing to not only many big opportunities to growth and expand their own business but also great deal of challenges To exist and develop enterprise has to build clear orientation and business strategy on the basic of analyzing external environment and internal factors Business strategy will help the company to exploit market’s opportunities as well as minimize challenges from external environment and limit company’s weaknesses Deriving from below situation, building business strategy becomes of the most important activity to a company Business strategy creates a clear business orientation and guides all departments, employees to company’s general goal then avoids localization and decentralization Business environment change quickly, international competition require company always be active and creative to adapt to these changes In the process of industrialization and modernization, heavy industry in general and Petro industry in particular plays an important role in deciding the success of this process PVEP group is the biggest group in petro industry and the company has created huge contribution to this process One of major contribution to success of Group is the role of its business unit, in which PVEP Song Hong is an example As all other companies, PVEP Song Hong is also facing many opportunities and challenges in this period So building business strategy for a particular period becomes the determining factor to company’s expansion and country industrialization Realizing the importance of building business strategy for petro companies in particular and the whole industry in general, there are many significant projects and studies of domestic and international researchers on this topic Some significant projects are: Capstone Project Report Gamba01.X0610 - Group No5 Topic: “Vietnamese petro industry in 2010”, Phung Dinh Thuc, President of Vietnamese Petro Association The topic shown out observation identifications about recent activities of Vietnamese petro industry in 2010: achievements and limitations From these identifications, Vietnamese petro industry can limit its weaknesses and promote strengths in production and business Topic: “Vietnamese petro industry - A period of develop and converse new policy”, Nozomu Kawabata, Tohoku University, Japan The topic raised out general conclusion about business situation of Vietnamese petro industry in the context of industrialization, modernization and integration Both of below topics have significant practical meaning to development of petro exploration and production, but they are macro research, it needs a more specific and profound project to apply these conclusion to activity of a particular company From below reasons, researchers choose the topic: “Building development strategy for Petro Vietnam Exploration and Production Song Hong to 2015” with the objective of giving out a more specific and profound for building business strategy for the key industry for industrialization progress in Vietnam Purposes of project Base on practical understanding about steel industry in general and production and business of PVEP Song Hong in particular and knowledge of strategic management subject, the project shown out a comprehensive and clear picture about strategic building and business of PVEP Song Hong in Vietnam market Throughout practical analysis of production and business of PVEP Song Hong in integration, the project affirmed explicitly the role of building business strategy for Vietnamese company in modern time The project not only stopped at practical analysis but also gave out specific solution for each section in each period for PVEP Song Hong In chapter the project will show out forecast of steel market till 2015 These solutions and forecast will also be guide line for other companies in petro industry Scope and objective of project Capstone Project Report Gamba01.X0610 - Group No5 The project analyzes production and business of PVEP Song Hong in Vietnam market From this analysis the project concludes suitable strategies to expand business scale as well as company profit in both short term and long term Data and information in this capstone project were collected from actual production and business of PVEP SONG HONG in these years The project also gave out some forecasts about steel market to 2016 and business orientation for PVEP SONG HONG in the period of 2012 to 2015 Methodologies The project is the combination of a great theory “strategic management” on practical business strategy building of a big corporation To be successful in applying this theory on production and business of PVEP SONG HONG, researchers used both qualitative and quantitative method in studying These methods are: - Collecting and analyzing method - Comparative analysis method - Specialist analysis method - Economic statistic method The project also use kinds of models for analyze such as: SWOT matrix, QSPM and CPM matrix, etc A wide variety of academic researches, market report, journals are utilized to bring out the best understanding of the subject The sources of data are listed clearly in the reference Project’s structure Besides forewords, conclusion and list of table and abbreviation the capstone project includes three chapters as following: Chapter 1: Overview of strategic planning and strategic management Chapter 2: Analyzing business environment for PVEP SONG HONG Chapter 3: Choosing strategy for PVEP SONG HONG to 2015 Capstone Project Report Gamba01.X0610 - Group No5 10 Table 2.6: SWOT matrix for PVEP Song Hong Strengths Weaknesses Historical development and SWOT Unstable of financial indexes the support from PVEP Group Low quality of market forecast Not good in changing and Modern and closed production process integration knowledge Experienced labor with long Policies of marketing and term attachment to development product diversification have not of company developed Revenue growth along with strong capital sources Opportunities SO WO Increasing in demand of SO1: Products and services WO1: Invested in new mines energy diversification WO2: Cooperate with companies Integration SO2: Expand the activities to all in the same area Development of over the South technology Threats Decrease of reserved ST WT ST1: Study about the law and WT1: volume market organization chart Fluctuation of price ST2: Looking for new mines WT2: Looking for new business Environment issue Restructure sector Strategies from SWOT matrix was established base on the characteristic of internal and external factors To deploy company’s strengths and catching market opportunities PVEP Song Hong can apply SO strategy And the company can use its Capstone Project Report Gamba01.X0610 - Group No5 57 the strengths to limit the affection of threats by diversifying company’s products On the contrary, company can reorganize its structure in the period of difficulty in both internal and external factors To chose the best strategy for the period of 2012 to 2016 PVEP Song Hong needs to have more detail and specific analysis These methods will be mentioned in chapter of the project Capstone Project Report Gamba01.X0610 - Group No5 58 CHAPTER 3: CHOOSING DEVELOPMENT STRATEGY AND SOLUTIONS TO APPLY STRATEGY TILL 2015 3.1 Long term development target of PVEP Song Hong 3.1.1 Development orientation Doing business in petro exploiting and service providing, the company realized its important role in ensuring security of energy for development of country and to GDP of Thai Binh province and creating stable jobs for labors With below responsibilities the company states its orientation with below characters: - Building the company to become top company of PVEP group with all ability to manage independently its petro projects - Developing technical service for oil and gas sector - Exploring efficiently natural resource coupled with protecting environment and national security - Improving labor skill and ensure stable life for employees 3.1.2 Specific targets In exploration of oils and gas: In the period of 2012-2015 the company continues to complete its strategic tasks of 2010-2015 period and they are: Completing exploration projects which approved by PV to improve explored volume Joining in Mien Vong Ha Noi gas project and The Southern Bay oil project And the targets are: - Exploration and evaluation: wells - Gas exploration: 21 wells - Oil exploration: wells To gas and oil selling: Complete the pipeline to the land (25 km in ocean and km in land) and building distribution gas center in 2012 Capstone Project Report Gamba01.X0610 - Group No5 59 Receive and sell gas from gas wells in the Southern Bay (103&107; 102&106) With the distribution gas center for Southern Bay the company will increase its gas volume to more than 200 million m3 in 2016 250 200 M illio n m3 150 100 50 0 20 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 20 25 20 Source: Business planning section, PVEP Song Hong Figure 3.1: Total exploration and distribution of gas in period of 2011-2025 Petro service: Increase the market share quality of petro service with growth rate 20% per year and the turnover will be billion VND/year from 2015 3.2 Choosing development strategy for PVEP Song Hong till 2015 3.2.1 Choosing strategy via SWOT matrix From analysis in SWOT matrix in chapter 2, we form strategy group to exploit strengths to make use of S-O opportunity, recover weaknesses to make use of W-O, opportunity, promote strengths to limit S-T threat, recover difficulties to overcome W-T challenges With respect to PVEP Song Hong, we have strategic situations as following: SO strategy: Make use of opportunities by means of using strengths - Investment for exploration of new wells and diversification petro service - Cooperate, research, receive, transfer modern technology to increase quality of services Capstone Project Report Gamba01.X0610 - Group No5 60 - Increase operation scale in national market Determine strategy 1: Diversification petro service, apply new exploration method and invest in innovation exploiting progress ST strategy: Use strengths to overcome threats - Maintain and expand market - Develop market forecast activities - Promote advantages to increase competitive capacity Determine strategy 2: Set up market, expand effective trading system, promote competitive advantages WO strategy: Make use of opportunities to recover weaknesses - Invest to the technology renovation and modern technique - Set up market and Marketing work Determine strategy 3: Invest to the technology renovation WT strategy: Mitigate weaknesses to avoid threats - Pay attention to research and develop advanced as well as modern products - Increase the quality of officer training to meet the development, technology and integration requirements - Expand the effective trading system and promote competitive advantages Determine strategy 4: Increase the quality of officer training to meet the development, technology and integration requirements 3.2.2 Choosing strategy via QSPM matrix From the result of SWOT matrix, the strategies for PVEP Song Hong in the period of 2012 to 2015 are: leading cost by providing cheaper products and services, specifying products for each type of customers To maintain and prove for the accuracy of chosen strategies the project used QSPM method to find out the most suitable strategy for PVEP Song Hong Table 3.1: Quantitative Strategic Plan Matrix of PVEP Song Hong Strategies Amon Capstone Project Report SO ST WO WT Gamba01.X0610 - Group No5 61 g AS TAS AS TAS AS TAS AS TAS Qualifications and experiences of staffs and managers 0.1 0.3 0.3 0.2 0.2 Reserves of oil and gas 0.11 0.33 0.33 0.11 0.22 Exploitation process 0.1 0.4 0.3 0.2 0.1 Technology 0.15 0.45 0.3 0.3 0.3 Active ability to exploit raw materials 0.1 0.3 0.2 0.1 0.1 Capital sources 0.12 0.36 0.36 0.36 0.36 Marketing 0.08 0.08 0.16 0.16 0.16 Cost management 0.11 0.22 0.11 0.22 0.11 Prediction on market 0.05 0.1 0.1 0.05 0.1 Branding 0.08 0.16 0.16 0.16 0.08 Strengths Weaknesses Opportunities Stable domestic politics environment 0.05 0.15 0.1 0.15 0.05 GDP growth along with demand growth 0.15 0.45 0.45 0.6 0.3 Social environment: labour and intellectual 0.1 0.3 0.2 0.2 0.1 Potentials of exploited wells 0.15 0.3 0.3 0.45 0.3 Development of manufacturing and mining 0.1 0.2 0.3 0.4 0.1 0.15 0.45 0.3 0.15 0.3 Challenges International economic integration and challenges Capstone Project Report Gamba01.X0610 - Group No5 62 Complicated territorial disputes of Eastern Sea 0.1 0.1 0.1 0.2 0.1 Uncertainties of domestic economy 0.1 0.2 0.2 0.2 0.1 Competitiveness of potential rivals 0.1 0.2 0.2 0.1 0.2 TOTAL 5.05 4.47 4.31 3.28 Table 3.1: Quantitative Strategic Plan Matrix of PVEP Song Hong SO Strategy Strength - Stable and loyalty human resource - Suitable working environment - Active and stable material source - Reasonable capacity - Low production cost - Active in product development Weakness - Product’s quality need to be improved - Quality of marketing activity - Lack of experience for integration - Financial management Opportunities - Demand of construction for industrialization - Development of technology - Development of transportation - Development of bank’s service - Ability of cooperation and technology transfer Threat - Pollution threat - Financial crisis and fiscal tightening policy - Increase in interest rate - Fluctuation of material price Weigh ST A S AS TAS 0.15 0.10 0.15 0.12 0.08 0.05 0.05 0.10 0.05 0.10 0.05 1.00 3 0.45 0.30 0.30 0.36 0.32 0.15 0.00 0.20 0.15 0.30 0.15 3 2 0.05 0.15 0.10 0.15 0.10 3 2 2 0.15 0.10 0.10 0.10 1.00 2 0.20 0.45 0.30 0.30 0.20 0.00 0.45 0.10 0.20 0.20 TOTAL 3 5.08 2 2 2 WO WT TAS AS TAS AS TAS 0.45 0.30 0.45 0.24 0.16 0.15 0.00 0.20 0.05 0.20 0.10 2 2 0.30 0.10 0.30 0.24 0.08 0.10 0.00 0.20 0.10 0.10 0.10 0 0.30 0.00 0.15 0.00 0.00 0.05 0.00 0.20 0.05 0.20 0.05 0.10 0.45 0.20 0.30 0.30 0.00 0.30 0.10 0.20 0.20 4 0.15 0.60 0.20 0.45 0.40 0.00 0.15 0.20 0.20 0.10 1 4.45 2 2 4.07 2 0.20 0.00 0.30 0.00 0.20 0.00 0.90 0.10 0.20 0.40 1 3.30 With highest score from QSPM matrix, SO and WO strategy are the most suitable strategy for PVEP Song Hong in the period of 2012 to 2015 With current strengths of human resource, production cost PVEP Song Hong has big opportunities in expanding Capstone Project Report Gamba01.X0610 - Group No5 63 market share by development of transportation and irrigation construction By using SO and ST strategies PVEP Song Hong can attract more and more customers to expand its profit and scale in the specific period 2012 to 2015 3.3 Solutions to apply development strategies till 2015 3.3.1 Invest in innovating technology and efficiency of exploration and exploiting 1st solution: Invest to buy new foreign technology Price of a medium capacity of Gaslift is USD 12 million With PEVPPVEP’s current situation, it is possible to borrow capital from State government and mother company However, USD 12 million is a so big investment while its market is rather small, PVE P Song Hong may get risk in taking back investment and developing 2nd solution: Co-operate with others Co-operate with some of big cement companies as PV Southern or PV Hai Phong to hand over technology will more economical and suitable to PVEP Song Hong Profit ratio from this business was calculated by Engineering Department If we compare between investing new equipments and handing over technology from Vietnam’s factories, we can see that handing over technology will bring more benefits because of lower cost and higher capacity Handing over technology from domestic companies will cost USD million Therefore, PVEP Song Hong should choose handing over technology solution and the best partner for PVEP Song Hong should be PV Southern due to this company had the similar organization framework, bigger capital source, and experience then PEVPPVEP Song Hong can take advantages of these factors from PV Southern 3.3.2 Financial solution + Save cost and reduce product’s price to raise the competition + Actively find partners, investors and borrowed capital sources to enlarge and improve the business + Effectively use the depreciated capital source and annual retain profit Capstone Project Report Gamba01.X0610 - Group No5 64 Financial activities have a deep and wide influence on enterprises’ activities Financial situation of enterprise is shown by some main norms: credit solvency index, debit indicator, operating index, profit index Studying enterprise financial is to consider, assess strong and weak points of the enterprise in order to find the best solution to improve business and reduce the risk PVEP Song Hong should well these main financial solutions: - Maximizing profits by comparing businesses, competitors such as: analyzing the indexes of flexible ability, capital using effect, profitable ability - Intensifying and diversifying capital mobilization activities to ensure financial resource for the company’s business To recover capital invested and attract investment, the company could below methods: + Managing the source of revenue, ensuring to collect all debts, avoiding outstanding debt + Maintaining friendly relations with Banks by ensuring prestige to have the support always from them + Maximizing cost saving 3.3.3 Solution for labor improvement Labor capacity is one of the factors determining the effect and structure of enterprise’s cost, the higher capacity, the lower cost per an unit product Therefore, setting up the appropriate labor solution for business will help to bring a high effective strategy in the business PVEP Song Hong improvement plan is constantly raising managing capacity, specialist knowledge for managers and workers, renewing the management, reducing production and business cost If these plan is not well done, the company’s business will lag behind economically and loses its competitiveness due to the high cost price for completed works impacts on the practicability of chosen strategic plans It’s also need to reinforce and supply labor source for company’s units, specially project managers, facilities setup and operations managers The company has to make Capstone Project Report Gamba01.X0610 - Group No5 65 labor framework plan according to requirement of each work; has training and re-training plans, gives continuation education to both direct and indirect labor, particularly technical workers and specialist engineers Furthermore, PVEP Song Hong should have cultivated plan for each of leadership position from company level to department level to meet the faster and more multiform business improvement 3.3.4 Improving efficiency of market forecast and marketing activities At present economy, the enterprises have to find their customers themselves Meanwhile, each enterprise have to try its best to struggle for a high position in the market Therefore, enterprises ‘market research is the most important foundation to setup production plan and design product models to get the trust from customers and attract customers so that they could control the market Doing well the market research will help to specify the right standard and design of products which have demand and meet the consumer preference, then define policies for products The company has to orient the activities according to market demand However, firstly the company must know the way to maintain the existing market, then go towards extending more To these measures, steering committee has to direct these works: + The market researcher team has to collect information about quality, types of product, market demand, then improve and design types better by far than competitors’’ After that, new products will released onto the market to explore consumer response Base on the market demand and customer preference, the company will assess the situation by comparing and synthesizing methods, analysis and plan to make good shortcomings and promote strengths, such as appreciating product quality level in comparing with the market demand and competitors’ products The company will get many experiences from these points and also need to continue researching technical proposals to heighten product quality by doing these: + The director board should highly appreciate the important role of both researching market in the enterprises’ existence and development and raising competitive Capstone Project Report Gamba01.X0610 - Group No5 66 ability as well as business result in present market mechanism Then the directors will request Planning department to above tasks and ask Sales department to survey the market to provide information for research + The compulsory requirements for researchers are marketing and cement manufacturing knowledge, information collection and processing skills, creative and active at work The researchers also have to cooperate with engineering department to design original product types which suit with the market trends + Office must be fitted with all needed equipments for researching, so that the researchers will complete their job with the best result 3.4 Procedure to apply development strategy To apply diversification of petro services and investment in equipments and technology for exploration of big oil wells, PVEP Song Hong need to have clear procedure to apply its solutions The procedure shows out responsibility for each section in the company To be successful in this development strategy PVEP Song Hong will have comprehensive solutions in finance, production, human resource, and marketing Procedure to apply these strategies is summarized in below table: Table 3.2: Summary of procedure to apply development strategy Solution Cooperate in technology transfer Financial solution Action Time - Building cooperation relationship - Cooperate with PV Southern - Innovating efficiency of current production process 2012 2012 - Checking all expense system 2012-2013 - Attract more investment 2012-2014 - Checking debt controlling section - Shorten financial procedure 2012-2013 2012-2014 Capstone Project Report 2012-2014 Cost (bill Maker VND) 1.22 Engineering 21.5 section, Marketing 34.54 section Accounting 1.52 section Marketing 2.2 section Accounting 1.36 section 1.45 Accounting Gamba01.X0610 - Group No5 67 Human resource training Marketing improvement - Checking efficiency of capital using of all section - Building human training program - Building creation fund - Additional new staffs for new development strategy - Training management with strategic vision 2012-2016 2012-2013 2012 2012 section Accounting 1.38 section 1.4 HR section 1.2 HR section 1.8 HR section 2012-2015 2.2 BOM Marketing - Marketing training 2012-2014 1.3 section Marketing - Improving market forecast activities 2012-2015 2.6 section Marketing - Introduce company image to public 2012-2013 3.2 section Source: Planning section, PVEP Song Hong With specific action program , cost and deadline for each section in the company, it can be believed that PVEP Song Hong will have positive result in the context of become leading company in PVEP in 2015 and contribute to the development of the country and industrialization, modernization process of Thai Binh province Capstone Project Report Gamba01.X0610 - Group No5 68 CONCLUSION In order to ensure the security of country energy and exploit potential oil and gas of Vietnam, companies in PVN need to have a suitable development strategy which follows the orientation of the mother company and the country also In the changeable business environment the independence of unit companies is a very important factor which decides the efficiency in operation of this unit and the success of the mother company Applying strategic management theories in building development strategy for state company can bring efficiency no less than private company Strategic management models help to find out changing of business environment and position of the company in this environment From applying these theories in situation of PVEP Song Hong helps the company to find out suitable development strategy till 2015 The project has shown out strategies and action plan for all functional sections in the company To ensure the maximize efficiency of these sections, the company need to have specific action plans for each section This is also the study trend that the project wants to open for PVEP’s members With the guidance from the project, further study will improve its activities in the next years Capstone Project Report Gamba01.X0610 - Group No5 69 REFERENCE English documents: {1} ADB, Effective trading strategy, 2008 pp 12-18 {2} ADB Commercialization and Poverty Reduction, 2008 pp – {3} Jay Barney; William Hesterly (2008), Strategic Management and Competitive Advantage: Concepts Prentice HallJay Barney (2007), Gaining and Sustaining Competitive Advantage Prentice Hall {4} Herrington Bryce ( 2007), Financial and Strategic Management for Nonprofit Organizations: A Comprehensive Reference to Legal, Financial, Management, and Operations Rules and Gu Jossey-Bass Nonprofit & Public Management Series {5} Robert E Ankli, Michael Porter’s competitive advantage and business history, University of Guelph.1992 trang 288 – 300 {6} Porter M The competitive advantage of Nations, Harvard business times, Mar 1990, pp 73 – 93 {7} Fred R.David (2008), Strategic Management: Concepts and Cases (12th Edition) Vietnamese documents: {8} Michael E Porter (2009), Competitive strategy, Youth Publisher {9} PVEP Song Hong Company Limited, annual report over years {10} Vietnam joint stock commercial bank for foreign trade of Vietnam, annual report over years {11} Statistic year book, annual report over years {12} Ministry of Agriculture and Rural Development, annual report over years {13} Vietnam State Bank, annual report over years {14} Ministry of Construction (2005), Construction development strategy to 2010 and vision to 2020, Eastern Publisher, Hanoi Capstone Project Report Gamba01.X0610 - Group No5 70 {15} Meritorious teacher -Doctor Nguyen Thi Minh Hien (2003), Small and Medium enterprise strategic development, Statistics Publisher, Hanoi {16} Associate Professor.Doctor Le The Gioi – Doctor Nguyen Thanh Liem – Master Tran Huu Hai (2009), Strategy Management, Statistics Publisher, Hanoi {17} Associate Professor.Doctor Ngo Kim Thanh, Business Strategy {18} Associate Professor.Doctor Nguyen Ngoc Son, Strategy Management Curriculum, Vietnam Education Publisher Website: {19} www.saga.vn {20} www.congthongtindientuthaibinh.gov.vn {21} www.thaibinh.gov.vn {22} www.vcb.com.vn {23} www.sbv.gov.vn {24} www.vneconomy.com.vn {25} http://my.vnexpress.net Capstone Project Report Gamba01.X0610 - Group No5 71 ... scientific projects Hanoi, date 23rd month Dec year 2011 Group leader Capstone Project Report Gamba01.X0610 - Group No5 TABLE OF CONTENT TABLE OF CONTENT LIST OF FIGURE AND TABLES... Hong 24 2.1.1 Establishment and development history 24 Capstone Project Report Gamba01.X0610 - Group No5 2.1.2 Products and services 24 2.1.3 Organization chat ... innovating technology and efficiency of exploration and exploiting 54 Capstone Project Report Gamba01.X0610 - Group No5 3.3.2 Financial solution 55 3.3.3 Solution for labor improvement