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CAPSTONE PROJECT REPORT FORMULATING BUSINESS STRATEGY OF THE NATIONAL PHARMACEUTICAL COMPANY No (CODUPHA) IN PERIOD 2012-2016 Group Number: Class: Gamba01.x0310 Group members: Mr TRAN HUY THONG Mrs TRAN THI VIET HONG Mr NGUYEN TIEN TRUNG Mr NGUYEN NGOC TU HANO I 2011 CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration ACKNOWLEDGEMENT We would like to express our thanks to the Center For Educational Technology & Career Development (ETC) – Vietnam National University, the teachers and staffs of Global Advanced Master of Administration Program – Griggs University for dedicated teaching, guidelines and creating the best conditions for us during studying time in class GaMBA01.X0310 as well as for our course completion Studying time in Global Advanced Master of Administration Program – Griggs University for us is not forgettable, from where we have been acquiring newest knowledge and updated courses, exchanging bilateral time between students through extracurricular activities as well as appreciating the group working methods, improving the collectiveness in each individual We would like to thank the enthusiastic help of the board of directors and executive officers of the National Pharmaceutical Company No (CODUPHA) and its Hanoi branch for supplying and explanation of use of the company’s documentations A lot of thanks to collective GaMBA01.X0310 and to our families for encouraging us in completion of this Capstone Project Report We warrant that the materials used in this Capstone Report were getting from clear sources in accordance with regulations Thank you and best regards! The Authors Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration TABLE OF CONTENT LIST OF ABBREVIATIONS LIST OF TABLES LIST OF FIGURES, GRAPHS .6 INTRODUCTION CHAPTER I 11 THEORETICAL BASIS FOR FORMULATING BUSINESS STRATEGIES OF ORGANIZATION 11 1.1 Business strategy of the organization .11 1.1.1.Concepts of Business Strategy 11 1.1.2.Nature of Business Strategy 12 1.1.3.Characteristics of Business Strategy .12 1.1.4.The difference between strategy and tactics, policy, planning and plan .13 1.1.5.10 elements of strategic management 13 1.1.6.Necessary of formulation of business strategy of the organization .15 1.2.The process of formulation of business strategy 15 1.2.1.Assessing the external environment and inside the enterprise 15 1.2.2.Designing options of business strategy 16 1.2.3.Implement, evaluate and improve business strategy .19 1.3.Tools for analyzing and choosing the business strategy of the organization 19 1.3.1.The Input Stage - Collecting data and systematizing information 20 1.3.1.1.EFE matrix (analyzing external factors) and IFE (analyzing internal factors) 20 1.3.2.1.Competitive profile matrix (CPM) 21 1.3.2 The Matching Stage - SWOT matrix 22 1.3.3 The Decision Stage - a Quantitative Strategic Planning Matrix (QSPM) 23 CHAPTER II: 24 ANALYSIS OF THE BASES OF FORMULATION OF BUSINESS STRATEGY FOR CODUPHA 24 2.1.Brief about the National Pharmaceutical Company No (Codupha) 24 2.1.1.The process of establishment and development: 24 2.1.2.Functions and tasks of Codupha: 25 2.1.3.The mission of Codupha: 26 2.1.4.The organizational structure of Codupha 26 2.2.Analyzing the external environment of the organization 31 2.2.1.Analysis of macro environment 31 2.2.1.1.Political and legal environment 31 2.2.1.2.Economic Environment 32 2.2.1.3.Technological Environment 33 2.2.1.4.Socio-cultural environment 34 2.2.2.Analyze micro environment 36 2.2.2.1.Competitors 36 2.2.2.2.Customers .40 2.2.2.3.Supplier 42 2.2.2.4.Potential competitors 43 2.2.2.5.Replaced goods .43 Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration 2.2.3.Matrix evaluates external factors (EFE matrix) 43 2.3.Analysis of internal environment of the enterprise 45 2.3.1.Personnel staff .45 2.3.2.Business Activities 47 2.3.3.Distribution System .50 2.3.3.1.Warehousing system at headquarters and branches 50 2.3.3.2.Coverage 53 2.3.4.Transport Means 53 2.3.5.Products and Partners 54 2.3.5.1.Products: 54 2.3.5.2.Partners: 56 2.3.6.The financial capability 56 2.3.7.Internal Factor Evaluation matrix (IFE matrix) 58 2.3.8.Competitive Profile Matrix (CPM) .60 CHAPTER III 67 CHOICE OF BUSINESS STRATEGY AND IMPLEMENTATION SOLUTIONS67 3.1.The long-term development of Codupha 67 3.1.1.Determining the position and the common goal of Codupha 67 3.1.2.Specific objectives 67 3.2.Choice of business strategy for CODUPHA in period 2012-2016 69 3.2.1.SWOT Matrix 69 3.2.3.Quantitative Strategic Planning Matrix (QSPM) 78 3.2.4.Choice of business strategy 83 3.2.5.Estimated Budget for chosen strategies 83 3.3.Strategy implementation solutions 84 3.3.1.Market Development Strategy .84 Marketing .85 Human resource management 86 3.3.2 Strategic Alliance 89 LIST OF REFERENCES .92 APPENDIX 93 APPENDIX 1: List of distributed by Codupha pharmaceiticals and medicaments .93 APPENDIX 2: Income Statement and Balanced Sheets of CODUPHA in 2010 93 Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration LIST OF ABBREVIATIONS CODUPHA The National Pharmaceutical Company No (La Compagnie Du Pharmaceutique) EFE External Factor Evaluation GSP Good Storage Practice GDP Good Distribution Practice GLP Good Laboratory Practice GMP Good Manufacturing Practice GPP Good Pharmacy Practice IFE Internal Factor Evaluation SWOT Strengths; Weaknesses; Opportunities; Threats WHO World Health Organization BMI Business Monitoring International CPC The National Pharmaceutical Company No Foripharm The National Pharmaceutical Company No Vinapharm Center of Pharmaceuticals and Cosmetics Sapharco Saigon Pharmaceutical Company Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration LIST OF TABLES No 10 11 12 13 14 15 16 17 18 19 List of tables Page Table 1.1 Matrix SWOT 20 Table 2.1: GDP growths of Vietnam 29 Table 2.2: Comparison of advantages of Codupha with some major 35 competitors Table 2.3: External factor evaluation matrix for pharmaceutical 41 industry Table 2.4: Number of staff and income level in period 2006-2010 43 Table 2.5 Results and effectiveness of business operations at the 44 National Pharmaceutical Company No in period 2006-2010 Table 2.6 Sales revenue of the 100% state-owned companies under 47 Vietnam Pharmaceutical Corporation in period 2009-2010 Table 2.7: Drug warehouses of Codupha 49 Table 2.8: Summary of transportation means 51 and logistics staff of Codupha Table 2.9: Turnover of the Codupha by product groups in period of 52 2006-2010 Table 2.10: Capital structure of Codupha by sources in period 200653 2010 Table 2.11: The ROE indicators of the company from 2006-2010 55 Table 2.12: Internal Factor Evaluation matrix (IFE matrix) 55 Table 2.13: Statistics of the proportion of drug supply into the 57 treatment blocks of some leading drug distributors Table 2.14: The Competitive Profile Matrix 60 Table 3.1 The business goals of Codupha in 2012-2016 63 Table 3.2 Summarized SWOT matrix 67 Table 3.3 The Quantitative Strategic Planning Matrix 75 Table 3.4: Estimated Budget for chosen Strategies 77 LIST OF FIGURES, GRAPHS Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration No List of figures, graphs Page Figure 1.1 Process of formulating and implementing of business 16 strategy Figure 2.1 Organization chart of the CODUPHA Figure 2.2: Annual expenditure for drugs per capita (USD/person/year) Figure 2.3 The coverage of Codupha Figure 2.4 – Capital structure of Codupha in period 2006-2010 Capstone Project Report Page 26 32 50 54 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration INTRODUCTION Reasons of choice of the researched topics: Pharmaceutical industry is an industry with high specific characteristics, which impacts significantly on the social life, directly affects the health and lives of peoples, is a state-controlled sector, tightly regulated to ensure adequate supply of medicament needs to protect the health of society Pharmaceuticals also are goods bringing high revenue and having strong mobility on the domestic and the world markets Together with the development of the pharmaceutical market is fierce competition among domestic pharmaceutical companies, between domestic and foreign pharmaceutical companies, especially after Vietnam joined the World Trade Organization (WTO) To survive and develop, Vietnam pharmaceutical companies are forced to study and apply innovative business strategies in real conditions of each enterprise Health care needs of people are very big, parallel with the economic development of the country and society, the number of incurable diseases is increasing In addition, when the life has improved to higher values, peoples are more conscious in protecting their health According to the statistics of the Ministry of Health, the expense for drugs takes almost 60% of total hospital charges, also according to Ministry of Health, the drugs manufacturing in Vietnam ensure about 36.7% of needs [2], besides, Vietnam currently can not produce a wide variety of brand-name drugs Expenses for drugs are very high but drug prices on the market are being pushed up and make people more difficult in getting required medicines Happened cases that peoples bought counterfeit and very poor quality drugs Supplying right types, adequate and good quality of common drugs to proprietary medicine is main task of pharmaceutical industry in general and the pharmaceutical companies in particular Pharmaceutical industry also is responsible for stable drug prices in the market, contributing to lower inflation for society Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration The National Pharmaceutical Company No is a large state-owned enterprise responsible for: + Direct import of pharmaceutical products, cosmetics, functional foods, raw materials, medical equipment + Direct and nationwide distribution to hospitals, health centers, pharmacies, pharmaceutical companies + National reserves of medicines and national circulation reserves of medicines to ensure supplying a full range of preventive and treatment drugs in all circumstances according to the Ministry of Health’s directions Willing to contribute to the development of the organization, better meet the duties and responsibilities assigned, taking advantage of opportunities, overcoming challenges of the new development process, we have selected the topic for Capstone Project Report of Strategic Management course as Formulating Business Strategies of the National Pharmaceutical Company No (CODUPHA) in period 2012 to 2016 year Study subjects: Study subjects in Capstone Project Report are "Specific strategies" to improve efficiency in production and business activities of the National Pharmaceutical Company No in particular and contribute to development of the pharmaceutical industry of Vietnam in general, better serve the needs of society The purpose of the research: Analyze and clarify the basis for formulating business strategies to improve business efficiency of the National Pharmaceutical Company No in period 20122016 years Thereby, other enterprises working in the pharmaceutical industry can refer and apply to their organizations Research Methodology: To be able to build the business strategy of the organization, we have used the relevant theoretical basis, analyze the internal and external environmental factors of the organization, summarize existing information and input into the Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration SWOT matrix to evaluate, from where select the chosen business strategies and business solutions as well as implementation route Scope of study: Focusing on assessment of the actual situations of production and business activities of the National Pharmaceutical Company No 2, comparing with a comparable units with production and business activities in the pharmaceutical industry, studying impact factors such as economic, cultural, social and technological environments of pharmaceutical industry of Vietnam and the world, studying the competition factors through five competitive forces of Michael Porter, studying human factors, ability, business situation, the distribution system of the organization In this Capstone Project Report we have used a number of documents and statistics of the Ministry of Health, Vietnam Drug Administration, and the National Pharmaceutical Company No 2, a number of magazines, books and information on the internet Contributions of the Research: * Summarizing numbers of theoretical issues related to business strategy * Analyzing and assessing a full range of environmental factors affecting the business strategy of the National Pharmaceutical Company No in particular and pharmaceutical industry of Vietnam in general * Formulating the basis for improving strategies of business activities of the National Pharmaceutical Company No 2, thereby contributing to the development of Vietnam's pharmaceutical industry in general * The Capstone project Report proposes to formulate business strategies for the National Pharmaceutical Company No in period from 2012 to 2016 years to better meet the needs of sustainable development of the organization and better complete assigned responsibility and tasks Capstone Project Report Page 10 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration • Increase market share of the organization in domestic market, step by step towards foreign markets • Retraining and improving efficiency of the staff • Development of human resources to meet growing demand in the period • Development of infrastructure, equipment, transportation • Stepping up marketing to retain and develop the indirect market (supply medicines for the hospital, the medical centers ) • Development of drugs distribution to final consumers, improve the efficiency of the sales of medicines over the phone and internet • Application of information technology on management and product distribution  Strategic alliances • Strengthen alliances and cooperation with domestic and foreign companies to develop drug sources • Act as an distribution agent for multinational companies based on strong advantages of wide coverage and warehouses • Act as distribution agents and forward to be a exclusive supplier of special and rare medications on the market • Expand cooperation with other suppliers to take advantage of using their facilities, improve market share for the company • Sending staff abroad to study, improve, study management and distribution methods of multinational companies • Based on the strength of information technology to find, select and import newest invented drugs • To consider a strategic cooperation with big foreign partners  Product Differentiation Capstone Project Report Page 79 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration • Provides all the drugs according to market demand • Exploiting the potential sources of local pharmaceutical materials to produce common drugs • To invest and develop drug factories • To produce expire-protection drugs for domestic market, to reduce importation costs • Production of drugs under license from foreign companies  Concentrated Growth • To retain the existing scale, invest to repair and upgrade equipments, warehouses, transport means to meet the needs and requirements under the new standards • Retraining and improving abilities of existing management staff and technical staff • Stepping up marketing works in hospitals, health centers to expand market share in the supplying of treatment drugs • Continue to promote strengths of network coverage and warehouses in the implementation of the agency contracts to distribute medicines for foreign companies • Improve abilities and capacities of drug supply of branches, of existing pharmacies, restructure human resources, scheduling to use transport vehicles to fully meet the customer's requirements The aforementioned strategies will be compared in Table 3.3 - a QSPM for CODUPHA below to help us get the best selection of business strategies of the company for the period 2012-2016 Capstone Project Report Page 80 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration Capstone Project Report Page 81 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration Capstone Project Report Page 82 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration 3.2.4 Choice of business strategy From the results of SWOT and QSPM matrices, we find down that there are strategies with highest Total Attractiveness Score, which are the Market Development Strategy and the Strategic Alliance These will be the chosen business strategies of CODUPHA in period 2012-2016 The advantage of those strategies is that they promote the fullest use of facilities and coverage, the qualified management staff, meeting the highest requirements on revenue, increase market share, increase profits and improve living standards for staffs  3.2.5 Estimated Budget for chosen strategies Table 3.4 shows a provisional calculation of costs for the implementation of chosen business strategies in the period 2012-2016 Capstone Project Report Page 83 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration 3.3 Strategy implementation solutions 3.3.1 Market Development Strategy As analyzed in Chapter 2, Vietnam pharmaceutical market has many advantages for development, but the biggest challenge for CODUPHA is the fierce competition from domestic and foreign companies With reputation and financial capabilities of the company, pressure from domestic competitors is not a big problem for Codupha The company is worry about the market penetration of large international companies with huge financial resources and experience in distributing pharmaceutical products to many countries around the world So the most important solutions for market development strategy of CODUPHA are as follows:  To use existing product distribution network, available warehouses for market development The foreign competitors with strong financial potentials, but facing the major barrier not allowing to direct distribution to pharmacies and their unsynchronized distribution networks are not covering provinces, the distribution channels are still considered as a strong point of CODUPHA  Parallel with above mentioned actions, CODUPHA needs to further improve its branch network, drug warehouses, professional national-wide distribution network To open branches and drug warehouses in other key locations, especially areas in Northwest, Northeast and the Middle of Central Vietnam  Develop online sales system via Internet and telephone networks With the dizzying pace of development of information technology today, the trend of online shopping is increasingly popular, only by a click or a phone call with a bank account, the customers can meet all the needs The company has to plan to quickly build and buy software online ordering for customers, at the same time, all tasks related to treasury and sales must be conducted online Thus, we can save transaction time, make more convenient for shoppers, both direct and indirect In addition, sales and product Capstone Project Report Page 84 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration management online can strengthen management capacity, helps dealers and warehouses close located can support each other when needed, saving unnecessary costs for the the craft Sales system over the phone should be further developed, not only advice about products over the phone, but also to receive orders from customers The internet and telephone has become increasingly close and closer to everyone, so this kind of the sales system promises to bring big market for CODUPHA, especially common drugs not requiring doctor's prescription Marketing From its practice, CODUPHA needs to handle well the relationship with customers That means to develop a customer strategy to meet the urgent needs and long-term strategy This strategy includes the following main contents: • To Classify target customers and establish a good and long time relationship with them As above mentioned, the target customers of the company include two groups: indirect and direct customers In which, CODUPHA mainly directs to the direct customers Group includes distributors, companies, agents, pharmacies After identifying the target customer groups, the establishment of good and long time relationships with them will help the company:  Getting all information relevant to the customer, rightly assessing customer quality, save the cost of evaluation and monitoring  Setting out strategies, policies, operational plans for each period and the development trend of the business activities in the future  The benefits from establishing long-term relationships with customer will make a close cooperation and bring benefits to both enterprise and consumers Since then, the company should have mechanisms and policies suitable to each customer • Implementing policies to attract customers by encouraging by material benefits Capstone Project Report Page 85 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration  To boost sales in the residential area through incentives and reasonable discount for pharmacies / hospitals  Research on competitors based on regular product comparison, advertisement, sales networks Based on research results, develop and implement business strategy parallel with competitors and not touch the behind competitors The company needs to grab the market to develop respectively • Increase advertising propaganda through the mass media  Strengthening convey information to the public by leaflets, short description of product use, easy to understand to help customers update on the products that the company is offering From there, customers can learn to use, the benefits of these products  Through the company staff to attract customers to use products provided by the company  Periodically organize customer conference, through this direct way, CODUPHA can learn more about the needs of customers as well as getting the assessment of the manner of service, quality of products that the company provides From there prepare solutions to overcome in order to better serve customers and improve the company’s reputation  Organize short and effective distribution channels These distribution channels settle actual needs locally  Continue to invest to develop the Drug and Cosmetic Center in Ho Chi Minh City to a wholesale center and retail directly to consumers Organize conferences, big exhibitions in the Center to introduce domestic medicine to customers Human resource management • Improving the quality of staff Capstone Project Report Page 86 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration Continuously select, supplement and strengthen the business workforce, including executives and production direct workers Training should be researched and applied in accordance with actual conditions and ensure efficiency Reasonably nominate and organize staff, ensure right people right positions, efficient use of human resources, while enhancing process management, supervision and monitoring, promoting self-awareness, flexibility performance of individuals In addition to reasonable material awards, should be strict regime of reward and punishment; improve facilities, working conditions, direct and strong support throughout the production and business processes • Develop plans for human resources training Focus on training in place, plans to circulate personnel to ensure that employees are not only good professionals but also improve the general understanding in the field of pharmacy There are tow forms of training: internal training and external training (hire outside experts for training at the company office) Since then, retraining some available staffs, focus on training and retraining issues related to new technologies (ISO, GDP, GSP, GPP, GLP ), new knowledge and the implementation issues are drawn from actual training of human resources in order to have sufficient quantity and quality of staffs for business requirements Classification and younger officers through the assessment process so in a short time to have a sufficient number of managers, technical staff, team members and the pharmaceutical skilled workers to meet the immediate requirements and long term From there, can save a considerable expense for training Send staff to national training facilities and to study in the advanced countries Combining the training and retraining in schools and in practice Provide the updated knowledge for staff to become compulsory, to encourage staff to improve by learning, enhance postgraduate training to raise the level of technical staff and experts to conform to international integration In certain periods, the company should exam; test the levels of existing staff to review the qualifications of its current workforce Then send them the assessment results with Capstone Project Report Page 87 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration strengths and weaknesses of each person so they can improve themselves Also, to discover good people for planning managers, avoid being passive in its activities Based on the description of work and work standard at each work position, to survey and classify the current work force by two groups: qualify qualified group and not qualified group From where prepare the training plan for group 2, and state the time for self-improvement skills • Reasonable encouragement The promotion and assignment of HR will help promote the full potential of each employee and provide high performance business for the company Leaderships need to understand the qualifications and capability of staff to have a reasonable division of labor between the departments Regularly check and evaluate the operation of each department Since then can rearrange or transfer personnel to the appropriate positions, enable staff to promote the creative spirit and take responsibility for their decisions, through what can be evaluated the capacity of staff and arrange works accordingly Implement effective planning, open and democratic development of HR to reserve good management in the future Mobilize and encourage staff to participate and propose innovative ideas to improve labor productivity, thrift practice and improve business productivity performance, timely rewards to excellent individuals and labor collectives • Improve the quality of work CODUPHA is long time established state-owned enterprise with rich traditions, but because of culture of a state-owned enterprise, labor productivity and the quality of the work of staff in the company is not high Thus, one important innovation measure in human resource management is the company's Scoring system through the internal time checking system online This system helps to manage the working hours of staff and evaluate the effectiveness and quality of labor time scientifically and accurately Scoring the job will directly affect the Capstone Project Report Page 88 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration wages, bonuses and other benefits of employees, not only to encourage the hard work and creativity of staff, but also reduce costs by wasting time with the less efficiently working staff 3.3.2 Strategic Alliance • Strengthen alliances and cooperation with domestic and foreign companies to develop drug sources Strengthening cooperation with foreign pharmaceutical companies is a right direction to find new drugs for market • Act as a distribution agent for multinational companies based on strong advantages of wide coverage and warehouses With the advantage of wide coverage and network of branches and warehouses in the major locations national-wide, the company to thrive signing the distribution contracts with multi-national companies, to take advantages from state macro-policy in pharmaceutical industry • Act as distribution agents and forward to be a exclusive supplier of special and rare medications on the market Being the distribution agent for foreign pharmaceutical companies, the company has to take the opportunities for cooperation to become the exclusive supplier of all kinds of special and rare drugs to the market • Expand cooperation with other suppliers to take advantage of using their facilities, improve market share for the company • Sending staff abroad to study, improve, study management and distribution methods of multinational companies The multinational companies have great advantages in management experiences, dominating the market as well as financial abundance Improve management and technical capacity of the company’s staff by sending them abroad for training to improve their working skills and foreign languages skills to better serve the company Capstone Project Report Page 89 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration • Based on the strength of information technology to find, select and import newest invented drugs The development of information technology in the world helps people easier to find information on the latest invented drugs The new and incurable diseases today have more opportunities in access to new and best medicines • To consider a strategic cooperation with big foreign partners With joining WTO and the commitment of the Government of Vietnam to open the pharmaceutical market, foreign companies will be allowed to join the retail market and supply to final consumers, so the company has to seek strategic partners for further development of its strengths Capstone Project Report Page 90 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration CONCLUSION Pharmaceutical industry is a specific economic sector; its tasks are to provide adequate and appropriate drugs for treatment needs, for health-care of the community The same as other economic sectors, the pharmaceutical industry is an economic sector with high competitiveness, particularly since Vietnam became a member of the World Trade Organization (WTO) and the market mechanism is operating in Vietnam In the overall development and integration of Vietnam's economy in the region and the world, the pharmaceutical industry in general and CODUPHA in particular have many opportunities to rapidly develop Potential development of the pharmaceutical market in Vietnam is increasingly diverse, diversity, pharmaceutical manufacturing and distribution is very dynamic but also contains many uncertainties and changes Seizing the opportunities and challenges for developing is the urgent needs of the enterprise, through studies, statistics and general data, analyze the factors influencing the situation and activities in the National pharmaceutical company No 2, as well as use the scientific basis, specialized knowledge to make the overall look of the distribution of drugs for pharmaceutical companies, the authors have formulated a business strategy for CODUPHA in period 2012-2016 as well as measures to implement that strategy Based on formulating the business strategy of the authors for the National Pharmaceutical Company No in period 2012-2016, other pharmaceutical companies may also use it as a basis for analysis and formulation of their own right business strategy, consistent with the advantages of the enterprises Again, thanks Center for Educational Technology & Career Development (ETC) – Vietnam National University, the teachers and officials of the Program as well as class GaMBA01.X0310 and our families to helpful, enabling us in the process of completing research and preparation of this Capstone Project Report Capstone Project Report Page 91 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration LIST OF REFERENCES Viện Nghiên cứu Đào tạo Quản lý (2006), Xây dựng triển khai Chiến lược Kinh doanh đường đến thành công, Nhà xuất Lao động xã hội, Hà Nội http://laodong.com.vn/Tin-Tuc/Tien-thuoc-dat-do-thuoc-kem-chat-luongnhieu/33455 Slides of subject “Strategic Management” – Global advanced Master of Business Administration - Griggs University – Hanoi - 2011 Fred R DAVID 2011 STRATEGIC MANAGEMENT Concepts and Cases, Thirteenth Edition Pearson Education Limited Prentice Hall Data of the Vietnam Pharmaceutical Corporation Data of the National Pharmaceutical Company No (CODUPHA) Capstone Project Report Page 92 GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced Master Master of of Business Business Administration Administration APPENDIX APPENDIX 1: List of distributed by Codupha pharmaceiticals and medicaments APPENDIX 2: Income Statement and Balanced Sheets of CODUPHA in 2010 Capstone Project Report Page 93 GaMBA01.X0310 - Group ... Authors Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced... .43 Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced... 93 Capstone Project Report Page GaMBA01.X0310 - Group CHƯƠNG ĐÀO TẠO CHƯƠNGTRÌNH TRÌNH ĐÀO TẠO THẠC SĨ TRỊ KINH DOANH QUỐC TẾ TẾ THẠC SĨQUẢN QUẢN TRỊ KINH DOANH QUỐC Global Global Advanced Advanced