Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (261)

TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration Theme: FORMULA THE DEVELOPMENT STRATEGY FOR VTC MULTI-MEDIA COMMUNICATION CORPORATION TO BECOME THE MULTIMEDIA COMMUNICATIONS GROUP BEYOND 2015 GROUP - GaMBA.X0610 Nguyen Van Trong Bui Viet Anh Vu Ngoc Anh Nguyen Van Bo (Leader) HANOI, 2011 ACKNOWLEDGEMENTS Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration We would like to to sincerely thank the University of Griggs - United States, ETC Center, MBA Program sincerely thank the University of Griggs United States, ETC Center, MBA Program -– Vietnam National University, of Hanoi, the teachers who were dedicated guide us with all their heart so that we are successfully completed this course We also wish to thank VTC Multimedia Communication Corporation Vietnam Multimedia Corporation (VTC) has helped us in the exchange process, working, writting topical reports, and VTC also supporting us with useful information and enabling us to complete this exercise Sincerely yours Hanoi, December 28th 2011 THE AUTHORS Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration Table of Contents CHAPTER 14 SCIENTIFIC THEORY FOR ESTABLISHING FORMULA THE STRATEGIES FOR BUSINESS DEVELOPMENT OF THE ENTERPRISE 14 1.1Primary matters about strategy and business strategy 1.1.1Some concepts about strategy: 1.1.2Business strategy and type of trategiesDevelopment strategy 1.1.3Bussiness strategy - Types of business strategy 14 14 14 14 15 1.2Role of business strategy 15 1.3Process to develop the strategy 15 * To build strategic view and visionMission and strategic view 1.3.1Strategic Goal 1.4Analyse the external environment 16 16 16 1.4.1Analysis of common environment – PEST model 1.4.2Analysis of sector environment 1.4.3External Factor Evaluation Matrix – EFE 1.4.4Competitive Profile Matrix ( matrix CPM ): 1.5Analysis of internal environment 17 17 18 19 20 1.5.1Financial resources 1.5.2Human Sources: 1.5.3Ability to research and development of technology (R&D) 1.5.4Product capacity, infrastructure: 1.5.5Performance capacity in Marketing, Brand of the enterprise: 1.5.6Management capacitySources: 20 20 20 20 21 21 1.6 Matrix of evaluation of internal factors – IFE 21 1.7Selection of appropriate strategy: 22 1.7.1Common competitive strategy 22 1.8Seclection of Matrix 23 1.8.1 General Matrix SWOT Matrix 23 1.8.2 Boston Consulting Group Matrix (BCG matrix ): 24 1.9Decide the QSPM Matrix Strategy Quantitative Strategic Planning Matrix (QSPM matrix) 25 CHAPTER 27 ANALYSIS THE ENVIRONMENT AND OPERATION OF VTC 27 PRACTICAL OPERATION AND DEVELOPMENT STRATEGY OF VTC 27 Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration 2.1 General information about VTC Corporation 2.1.1 Process of establishment and development of VTC 2.1.2 Main business activities of VTCMain characteristics of business of VTC: 2.1.3 Structure, organization and operation of VTC Corporation from 2005 to 2010: 2.1.4 Current Organizational structure of VTC 2.2 Analysis of external environment: 27 27 29 30 33 38 2.2.1 Analysis of the general model - PEST analysis Decision No 79/2002/QD-TTg about management of programs of foreign television 2.2.3.Analysis of the environment of the business: 2.3 External oppotunities and challenges for VTC: 2.3.1 Oppotunities 2.3.2 Challenges 38 39 44 51 51 52 2.4 Formation of external factor evaluation matrix ( EFE matrix ) 53 2.5 Comparison by competitive profile matrix CPM 53 2.6 Analysis of internal environment of the firm: 55 2.6.1 Analysis of financial capability: 2.6.2 Human resources analysis: 2.6.3 Technology development and research ability analysis ( R&D): 2.6.4 Productive capacity and infrastructure: 2.6.5 Marketing operation capacity, trade name of company: 2.6.6 Manageable capacity sSources : 2.7 Strength and weakness points of VTC: 55 57 58 61 65 66 66 2.7.1 Strengths: 2.7.2 Weakness: 67 69 2.8 Internal factor evaluation matrix (IFE matrix) : 69 STRATEGY RESULTS DURING 2005-2010 72 VTC HAS DEVELOPED WITH ITS INTERNAL FORCE AND SUSTAINABLE AND FAST GROWING RATE AND HIGH ECONOMIC EFFICIENCY AND VTC ALWAYS TAKES THE INITIATIVE IN BUSINESS PRODUCTION OPERATIONS OF TRADITIONAL ECONOMIC SECTOR OF THE COUNTRY 72 WITH THE EXPERIENCE OF 22 YEARS OF ESTABLISHMENT AND DEVELOPMENT, THE MOST SALIENT FEATURE OF VTC IS THE GROWTH FROM “ZERO” TO “HAVING” VTC HAS GROWN UP BY SELFRELIANCE AND INTERNAL ACCUMULATION FROM ITS PROFIT FOR CONSTRUCTING ITS TECHNICAL INFRASTRUCTURE VTC IS THE LEADING AND SUCCESSFUL COMPANY IN OPENING UP A NEW BUSINESS PROFESSION IN THE COMMUNICATIONS SECTOR BASED ON THE DIGITAL TECHNOLOGY CONVERGENCE OF THE TELEVISION, Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration INFORMATION TECHNOLOGY AND GREAT PROMISE OF OUR COUNTRY TELECOMMUNICATIONS OF 72 - UP TO NOW, VTC’S FIXED ASSETS VALUE THOUSANDS OF BILLION DONG INCLUDING NEARLY 20,000M2 LAND AREA USED FOR ITS HEADOFFICE, TELEVISION STATION, WORKSHOP IN HCMC, HANOI AND VINH CITY; VTC OWNS ONE TRANSMISSION SYSTEM OF RADIO – TELEVISION BROADCASTING WITH THE STATE-OF-THE-ART EQUIPMENT; SETS UP A TECHNICAL INFRASTRUCTURE OF HIGHLY INTEGRATED TELECOMMUNICATIONS NETWORK, MULTI-UTILITY INFORMATION TECHNOLOGY NETWORK; SUPPLY NETWORK OF TECHNICAL SERVICES, VALUE-ADDED SERVICES AND PRODUCTS WHOSE COMMUNICATION CONTENTS ARE STANDARD AND PLENTIFUL, TO THE SATISFACTION OF SPIRITAL LIFE OF THE SOCIETY 73 TOTAL CAPITAL RESOURCES FOR THE FORMATION OF THE PARENT COMPANY’S CHARTER CAPITAL TO THE YEAR 2010 OBTAINED 1,500 BILLION DONG IN SIX CONSECUTIVE YEARS FROM 2005 TO 2010, VTC’S BUSINESS WAS LUCRATIVE INDICATORS ON TURNOVER, PROFIT AND BUDGET PAYMENT OF THE FOLLOWING YEAR ARE HIGHER THAN THOSE OF THE PREVIOUS YEAR, WITH AN INCREASE OF 200% IN CONSECUTIVE YEARS; PROFIT TO STATE CAPITAL RATIO FROM 2007 TO 2010 MET 15 - 20%, SO INCOMES AND LIFE OF EMPLOYEES ARE IMPROVED AND STABLE AND PER CAPITA INCOME IS 10 MILLION DONG PER MONTH 73 FIGURE 2.2: DIAGRAM OF VTC’S BUSINESS PRODUCTION GROWTH 73 FOR A PERIOD OF 2005 – 2010 73 74 CHAPTER III: 75 STRATEGY OF VTC DURING 2012 – 2015 DEVELOPMENT STRATEGY OF VTC TOWARDS 2015 FORMULA THE 75 TO DEVELOP AS A MULTIMEDIA GROUP 75 Vision, and strategic targets for development of VTC 75 3.1.1Vision by 2020 3.1.2 Main targets for development of VTC by 2015 3.2 Development and selection of strategy of VTC Group by 2015 75 75 77 1.9.1Strategy 1: Development of IPTV IPTV market for overseas Vietnamese people in Europe; 85 1.9.2Strategy to develop new product – 3D TV in the country 97 Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration 1.9.3Strategy to build VTC into a Multi-media Communications Group to 2015 105 Table of Contents CHAPTER 14 SCIENTIFIC THEORY FOR ESTABLISHING FORMULA THE STRATEGIES FOR BUSINESS DEVELOPMENT OF THE ENTERPRISE 14 1.1Primary matters about strategy and business strategy 1.1.1Some concepts about strategy: 1.1.2Business strategy and type of trategiesDevelopment strategy 1.1.3Bussiness strategy - Types of business strategy 14 14 14 14 15 1.2Role of business strategy 15 1.3Process to develop the strategy 15 * To build strategic view and visionMission and strategic view 1.3.1Strategic Goal 1.4Analyse the external environment 16 16 16 1.4.1Analysis of common environment – PEST model 1.4.2Analysis of sector environment 1.4.3External Factor Evaluation Matrix – EFE 1.4.4Competitive Profile Matrix ( matrix CPM ): 1.5Analysis of internal environment 17 17 18 19 20 1.5.1Financial resources 1.5.2Human Sources: 1.5.3Ability to research and development of technology (R&D) 1.5.4Product capacity, infrastructure: 1.5.5Performance capacity in Marketing, Brand of the enterprise: 1.5.6Management capacitySources: 20 20 20 20 21 21 1.6 Matrix of evaluation of internal factors – IFE 21 1.7Selection of appropriate strategy: 22 1.7.1Common competitive strategy 22 1.8Seclection of Matrix 23 1.8.1 General Matrix SWOT Matrix 23 1.8.2 Boston Consulting Group Matrix (BCG matrix ): 24 1.9Decide the QSPM Matrix Strategy Quantitative Strategic Planning Matrix (QSPM matrix) 25 CHAPTER 27 ANALYSIS THE ENVIRONMENT AND OPERATION OF VTC 27 Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration PRACTICAL OPERATION AND DEVELOPMENT STRATEGY OF VTC 27 2.1 General information about VTC Corporation 27 2.1.1 Process of establishment and development of VTC 2.1.2 Main business activities of VTCMain characteristics of business of VTC: 2.1.3 Structure, organization and operation of VTC Corporation from 2005 to 2010: 2.1.4 Current Organizational structure of VTC 2.2 Analysis of external environment: 27 29 30 33 38 2.2.1 Analysis of the general model - PEST analysis Decision No 79/2002/QD-TTg about management of programs of foreign television 2.2.3.Analysis of the environment of the business: 2.3 External oppotunities and challenges for VTC: 2.3.1 Oppotunities 2.3.2 Challenges 38 39 44 51 51 52 2.4 Formation of external factor evaluation matrix ( EFE matrix ) 53 2.5 Comparison by competitive profile matrix CPM 53 2.6 Analysis of internal environment of the firm: 55 2.6.1 Analysis of financial capability: 2.6.2 Human resources analysis: 2.6.3 Technology development and research ability analysis ( R&D): 2.6.4 Productive capacity and infrastructure: 2.6.5 Marketing operation capacity, trade name of company: 2.6.6 Manageable capacity sSources : 2.7 Strength and weakness points of VTC: 55 57 58 61 65 66 66 2.7.1 Strengths: 2.7.2 Weakness: 67 69 2.8 Internal factor evaluation matrix (IFE matrix) : 69 STRATEGY RESULTS DURING 2005-2010 72 VTC HAS DEVELOPED WITH ITS INTERNAL FORCE AND SUSTAINABLE AND FAST GROWING RATE AND HIGH ECONOMIC EFFICIENCY AND VTC ALWAYS TAKES THE INITIATIVE IN BUSINESS PRODUCTION OPERATIONS OF TRADITIONAL ECONOMIC SECTOR OF THE COUNTRY 72 WITH THE EXPERIENCE OF 22 YEARS OF ESTABLISHMENT AND DEVELOPMENT, THE MOST SALIENT FEATURE OF VTC IS THE GROWTH FROM “ZERO” TO “HAVING” VTC HAS GROWN UP BY SELFRELIANCE AND INTERNAL ACCUMULATION FROM ITS PROFIT FOR CONSTRUCTING ITS TECHNICAL INFRASTRUCTURE VTC IS THE LEADING AND SUCCESSFUL COMPANY IN OPENING UP A NEW BUSINESS PROFESSION IN THE COMMUNICATIONS SECTOR BASED ON THE DIGITAL TECHNOLOGY CONVERGENCE OF THE TELEVISION, Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration INFORMATION TECHNOLOGY AND GREAT PROMISE OF OUR COUNTRY TELECOMMUNICATIONS OF 72 - UP TO NOW, VTC’S FIXED ASSETS VALUE THOUSANDS OF BILLION DONG INCLUDING NEARLY 20,000M2 LAND AREA USED FOR ITS HEADOFFICE, TELEVISION STATION, WORKSHOP IN HCMC, HANOI AND VINH CITY; VTC OWNS ONE TRANSMISSION SYSTEM OF RADIO – TELEVISION BROADCASTING WITH THE STATE-OF-THE-ART EQUIPMENT; SETS UP A TECHNICAL INFRASTRUCTURE OF HIGHLY INTEGRATED TELECOMMUNICATIONS NETWORK, MULTI-UTILITY INFORMATION TECHNOLOGY NETWORK; SUPPLY NETWORK OF TECHNICAL SERVICES, VALUE-ADDED SERVICES AND PRODUCTS WHOSE COMMUNICATION CONTENTS ARE STANDARD AND PLENTIFUL, TO THE SATISFACTION OF SPIRITAL LIFE OF THE SOCIETY 73 TOTAL CAPITAL RESOURCES FOR THE FORMATION OF THE PARENT COMPANY’S CHARTER CAPITAL TO THE YEAR 2010 OBTAINED 1,500 BILLION DONG IN SIX CONSECUTIVE YEARS FROM 2005 TO 2010, VTC’S BUSINESS WAS LUCRATIVE INDICATORS ON TURNOVER, PROFIT AND BUDGET PAYMENT OF THE FOLLOWING YEAR ARE HIGHER THAN THOSE OF THE PREVIOUS YEAR, WITH AN INCREASE OF 200% IN CONSECUTIVE YEARS; PROFIT TO STATE CAPITAL RATIO FROM 2007 TO 2010 MET 15 - 20%, SO INCOMES AND LIFE OF EMPLOYEES ARE IMPROVED AND STABLE AND PER CAPITA INCOME IS 10 MILLION DONG PER MONTH 73 FIGURE 2.2: DIAGRAM OF VTC’S BUSINESS PRODUCTION GROWTH 73 FOR A PERIOD OF 2005 – 2010 73 74 CHAPTER III: 75 STRATEGY OF VTC DURING 2012 – 2015 DEVELOPMENT STRATEGY OF VTC TOWARDS 2015 FORMULA THE 75 TO DEVELOP AS A MULTIMEDIA GROUP 75 Vision, and strategic targets for development of VTC 75 3.1.1Vision by 2020 3.1.2 Main targets for development of VTC by 2015 3.2 Development and selection of strategy of VTC Group by 2015 75 75 77 1.9.1Strategy 1: Development of IPTV IPTV market for overseas Vietnamese people in Europe; 85 1.9.2Strategy to develop new product – 3D TV in the country 97 Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration 1.9.3Strategy to build VTC into a Multi-media Communications Group to 2015 105 ABBREVIATIONS No Abbreviations VTC DN Table 1.1 Table 1.2 Table 1.3 Table 1.4 Table 1.5 Table 1.6 Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Table 2.6 Table 2.7 Table 2.8 Table 3.1 Table 3.2 Table 3.3 Table 3.43 Table 3.54 Table 3.6 Table 3.7 Explanation Multi-media Telecommunication Corporation The enterprise LIST OF TABLES SWOT EFE Matrix 13 CPMQSPM Matrix 14 IFE Matrix 16 SWOT Matrix 18 BCG Matrix 19 QSPM Matrix 20 Business plan and result from 2005-2010 27 Formation of external factor evaluation matrix ( EFE matrix ) 38 Comparison by competitive profile matrix CPM 39 Analysis of financial capability 40 Human resources development situation and qualification standard of VTC’s employees for a period 2005-2010 42 Technical and material facilities of VTC up to 31/12/2010 46 Number, standards of the broadcast TV channels of VTC digital TV station up to 12/2010 48 Internal factor evaluation matrix (IFE matrix) 54 Economic development indices of VTC Group for 2011-2015TOWS Matrix 58 Establish the TOWS BCG Matrix 59 Turnover of year 2010 for 04 typical services of VTC Using QSPM matrix to select the best strategy 60 Proposed business criteria of VTC from 2012 – 2015 62Summary list of equipments under estimated investment Summarize comparison between USA Market and European Market Expected expense for service investment LIST OF FIGURES Figure 1.1 Figure 1.2 Process to develop the business strategy Five forces Model of Michel E.Porter Team exersice 4.Gamba01.X0610 Subject: Strategica Management 10 12 TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT Global Advanced Master of Business Administration Appendix Figure 2.1 Organizational structure of VTC Corporation Revenue and Cost in International market is proposed in the first Appendix year as follows: 67 1Figure 2.2 Diagram of VTC’s Business Production growth for a period of 2005 – 2010 : Proposed initial investment costs on International market 67 Appendix 2Figure 3.1 BCG Matrix (Relative market in the industry) Proposed initial investment on Local Market for implementing Appendix strategy to 2015 68 Figure 3.2 General chart Detailed description about new organization of VTC for implementing Appendix strategy to 2015 ( Model at the end of Appendix) 68 Appendix Turnover of year 2010 for 04 typical services of VTC Appendix Density structure of lines of business of VTC Figure 3.3 Development Chart Figure 3.4 Management system Figure 3.5 Density Structure of Lines of Business of VTC Figure 3.6 Organization Structure of Vietnam Multimedia Group 75 76 PREAMBLE Necessity of the Study The Global economic integration is an inevitable trend and an objective requirement for any country in the development process This trend is more and more clearly established, particularly in the market economy which is becoming a common playing field for all countries; it both facilitates the cooperation condition but also makes the competition process becoming severe For VTC Media Communication Corporation, after 20 years of renovation it has achieved a certain results which contributed to the economic growth such as provision of television services, increasingly expanding and development of digital content and telecommunications therefore attracted customers and partly contributed to the widening social-economic information network and contributed to the country’s growth Team exersice 4.Gamba01.X0610 Subject: Strategica Management Page - Main function, duties: + Establishment, building up telecomunication transmission network and management, operation of exploiration of telecommunication network of VTC Group + providing renting services, hiring telecomunication, Information technology + Management of telecomunication, Internet prices + Management for ensuring security system, safety for telecomunication VTC +providing services of telecomunication, added value services on telecomunication, radio, digital television network VTC + Investment, construction, supply telecomunication equipment for VTC Group and outside units In 03 Corporations doing their business according to model of Mother company – subsidiary company, in which including tens of subsidiary, associated companies with different duties and functions, they links together by group of profession, market, technical technology to create a general strength for competitive with local and oversea competitors Page 121 Appendix Turnover of year 2010 for 04 typical services of VTC Unit Turnover (billion dongs) % Turnover Profit (billion dongs) % Profit % growth Telecommunication service 951,5 150 8.045,8 77 80 73 250 938,5 764,2 10.700 100 20 3,4 110,4 18 100 150 130 IT - digital Service Television service Other services Total Page 122 Appendix DENSITY STRUCTURE OF LINES OF BUSINESS OF VTC (Unit: VND million) Television Service 2008 Telecommunication Service 306.850 Television Service Informatics – technology & digital content Service 1,087.800 Other Services 2009 Informatics – technology & digital content Service Telecommunication Service Other Services Television Service 2010 Telecommunication Service Other Services Informatics – technology & digital content Service 8.045,72 VTC has met all the Government’s requirements provided in the Decree No 101/NĐ-CP dated 05/11/2009 for the establishment of a State’s Economic Group, Page 123 particularly: Line of business The main line of business of VTC is in the Government’s orientation for formation of State’s economic groups for key aspects, branches of the national economy like communications, informatics and technology and other lines of business that has been determined by the Party and Government “To transfer Vietnam soon become a country strong in technology, informatics and communications” VTC Group will be a strong economic communications to be the key agency for successful implementation of development objectives Structure of lines of business For the last time and the planned objective for strategic development for the stage from 2011 to 2020, VTC determined to invest to effective operation of the following main line of business: concentration to building of digital content industry is a focus in the groups’ economic communication operation, including supply of television – informatics and technology – telecommunication products, services, investment for set-up of digital television network in the whole country, expansion and development of auxiliary trades, establishment of telecommunication network infrastructure to serve the main line of business, simultaneously to ensure other tasks when assigned by the owner, to implement its obligation and to be under the State’s management for investment, investment effect and effect of the lines of business out of the main line of business Page 124 Figure 3.5: DENSITY STRUCTURE OF LINES OF BUSINESS OF VTC (Unit: VND million) Television Service 2008 Informatics – technology & digital content Service Telecommunication Service Other Services Television Service 2009 Informatics – technology & digital content Service Telecommunication Service Other Services Television Service 2010 Telecommunication Service Other Services Informatics – technology & digital content Service Capital source – Man force Page 125 State’s capital: + 100% chartered capital of VTC is owned by the State + Chartered capital: VND 3,000 billion + VTC Group affirms that after years of establishment, it has enough the registered chartered capital as regulated by the State’s Finance Management Regime + Sources constituting Chartered Capital are added from the owner’s equity supplied by the State, form the projects invested or to be invested by VTC that will be assessed as its assets, VTC’s annual accumulated profits, capita; form other mobilized sources, assets and lands, and business advantage of VTC’s trademark For management level and human force + Management level: At present, VTC implements the organization, management and operation of business and production from the corporation to over 40 subsidiaries The whole management process has been applied with modern informatics and technology, that is capable to operate machine of a bid enterprise + Human force: The man force is young, of high quality with over 3,000 employees Over 75% of official employees are masters, 5% are doctors, 15% are skilled technicians and middle-ranked ones, 5% are common laborers Have capability to receive and apply modern technology, bring into play trademark and expand market - Being a specialized enterprise operating on the aspect of advanced technical convergence, high-tech of the branch of radio – television – informatics and technology – telecommunication, VTC always determines its development strategy as study, application of new techniques, technologies, coming first to create prerequisite conditions for development of business content and service The achievements during recent years are evidences of VTC’s dominant success, creating a new breakthrough, new appearance for radio – television branch and the country’s communication industry, particularly: Transmission Network Digitalization Technology for television broadcasting by ground digital television Page 126 broadcasting DVB-T, compressed standard Mpeg2; high-density television production technology of HDTV, 3DTV, transmission with standard DVB-T2, compressed standard Mpeg4; television broadcasting to satellite Vinasat-1, Asia sat5; broadband compressed digital technology for directly radio – television broadcasting through Internet; interactive television; production, supply and improvement of generations of receivers Settop-box for receiving television; construction of telecommunication network of 3G, 4G with integrated communication services; quick and effective development of digital content industry - VTC’s strength is having a team of high qualified and enthusiastic scientific – technical cadres With the planned development strategy for stage 20112015, VTC Group has to set up an institute for research, application, development of informatics – technology and communication; form a training school specialized in communication - VTC Multimedia Communications University which is equipped fully with testing equipment, for trial fabrication; with qualified staffs for study and development of new high-tech products VTC Group has been taken a short-cut to wait for the world’s advanced technical achievements in the aspects of electronics, telecommunication, informatics – technology to apply to the aspect of multimedia convergence with several scientific topics of branch level, ministerial level and State level which have been granted with awards The development objective to the year 2015 is VTC Group will be a leading unit in technological technique of the digital content industry of the country and have equivalent level of international communication groups - With products, equipment manufactured by VTC, content and quality of television, informatics – technology, telecommunication supplied to the society, meeting demand on listening, speaking, watching radio and television, VTC trademark has become a famous trademark in our country that is believed and loved by millions people VTC’s products of digital content industry were exported to overseas, put into international markets in Asia, Europe, American VTC’s Page 127 television trademark, for first step, has been affirmed and available on the international communication market Formation of association inside and outside the branch - Taking part in business operation, VTC ensures its integrity in direction and has closed association with internal enterprises and external enterprises specialized in television, telecommunication, informatics – technology; develops transmission infrastructure; synchronously broadcast in a modern and effective way; agrees on VTC standard and technology; ensures transmission of the corporation’s general services on radio, television, telecommunication, informatics – technology on the same technical infrastructure to meet the requirements on multimedia convergence, multi-benefit - Step by step associate, expand market and establish transmission and broadcasting network; associate to develop television services with other groups like EVN, VNPT, Viettel, State’s agencies, joint stock companies, liability limited companies with State’s governing capital to develop technical infrastructure for radio, television; ensure integrated, effective management in accordance with the State’s regulations Readiness of subsidiaries in establishment of Vietnam Multimedia Group (VTC) VTC has completed its management machine under the model of Mother Company – Subsidiary Company in a stable and firm way which operates with integrated mode in accordance with the Law on Enterprises According to the Prime Minister’s approval and the Decision No 929/QĐ-BTTTT dated 28/6/2010 of on changing enterprises of the Minister of Informatics and Communications The management machine of VTC includes Mother Company - VTC with functional departments and divisions, dependently accounting units, VTC Digital Television and press units; block of one member companies with 100% State’s capital, joint stock companies with governing share of Mother Company; joint stock companies, associated companies with shared not governed by Mother Company Companies Page 128 Grade III formed due to investment of subsidiary companies to overseas (Cambodia, Korea, Laos, China, Indonesia, Russia, Japan, U.S., Thailand, and Malaysia) 40 subsidiaries in total of VTC are ready, have enough conditions for the establishment of Vietnam Multimedia Group (VTC) In summary, VTC basically have enough elements and financial conditions, technical and material facilities, organization structure, man force, management level, technique and technology, market and trademark The birth and development of Vietnam Multimedia Group is necessary because of internal requirement of indispensable development of VTC and of urgent demand of Vietnamese communication branch and economy on the development way with tendency of industrialization, modernization and international integration 1.9.3.3 Organization Structure of Vietnam Multimedia Group (VTC) Model of VTC Group - Vietnam Multimedia Group (short name: VTC group) is a complex of enterprises operating under the model of mother company – subsidiary companies, including: Mother Company Vietnam Multimedia Group (Enterprise Grade I); subsidiary companies governed by the Mother Company (Enterprise Grade II); subsidiary companies governed by Enterprises Grade II and lower ones, associated companies, voluntarily associated companies (Enterprise Grade III) - Mother Company - Vietnam Multimedia Group (short name: VTC group) is one member company limited with 100% chartered that has its legal status and the State makes decision of establishment - Group VTC uses legal status of the Mother Company in its transactions The Mother Company takes the functions of an investing company and function of a unit that produces and supplies services of informatics and technology, consultancy, training subsidiaries and units from other economies - Mother Company is the nuclear of VTC Group, a junction between subsidiary enterprises, controls and governs decisions, development strategies and staffing, governs operation of subsidiary companies by investment, capital Page 129 contribution, technology know-how, VTC trademark and market - In VTC Group, except for capital association, there is trademark association, VTC’s prestige and binding by economic contracts on the basis of compliance to the Charter of Organization and Operation of Mother Company Vietnam Multimedia Group (VTC) Organization structure of VTC Group includes the Mother Company, subsidiary companies, associated companies, joint venture companies as follows: Figure 3.6: Organization Structure of Vietnam Multimedia Group Page 130 VIETNAM MULTIMEDIA GROUP (VTC) MOTHER COMPANY: ONE MEMBER COMPANY LIMITED - VIETNAM MUTIMEDIA GROUP (VTC) ADVISING BOARDS DEPENDENTLY ACCOUNTING MEMEBER Center for paid television services Center for television copyright services Center for transmission, broadcasting VTC’s Southern Branch BOARD OF MEMBERS CONTROLLING BOARD GENERAL DIRECTOR CHIEF ACCOUNTANT BLOCK OF TELEVISION - PRESS VTC Digital Television 24h Sports Newspapers VTC News Electronic Journal Digital television magazine Center for internet radio – television BLOCK OF STUDY – TRAINING VTC Institute of technology research and development VTC University of Multimedia Communications - Vinh Branch, Nghe An Province - Hanoi Branch Page 131 TECHNOLOGY & DIGITAL CONTENT CORPORATION (Mother Company – Subsidiary Comapany) HCM City Multimedia Communications One Member Co Ltd VTC Mobile Service Joint Stock Co (VTC Mobile) Electronic Trading Service Joint Stock Co (VTC eTrade) VTC Online Communications Trading Service Joint Stock Co (VTC Online) 5-15: VTC Online Communications Trading Service Joint Stock Co in Korea, Cambodia, Laos, Japan, Russia, U.S, Indonesia, China, Thailand, Malaysia 16 VTC Central-Part Communications Joint Stock Co DIGITAL TELEVISION SERVICE CORPORATION (Mother Company – Subsidiaries) VTC Equipment & Digital Television One Member Co Ltd (CDT) VTC Electronic Equipment & Communications Services One Member Co Ltd (EMC) Communications Technology Solution One Member Co Ltd (Comtech) VTCI Communications Joint Stock Co Electronics and Cable Television Joint Stock Co (CEC) Television Communications Development Joint Stock Co (CTC) VTC Hoi An Communications Joint Stock Co (CTC) VTC Bà Rịa - Vũng Tàu Communications & Cable Television Joint Stock Co VTC Lâm Đồng Cable Television Joint Stock Co 10 VTC International Cooperation Services Joint Stock Co (CICS) Page 132 DIGITAL TELECOMMUNICATION CORPORATION (Mother Company – Subsidiaries) VTC Electronics and Communications One Member Co Ltd VTC Central-Part Multimedia Communications One Member Co Ltd Mobile Television Services One Member Co Ltd VTC Digital Television Joint Stock Co VINA Telecommunication Production & Services Joint Stock Co Cát Việt Technology Development Joint Stock Co Based on re-structuring and re-organizing machine of VTC to operate with mother company – subsidiary company model, Vietnam Multimedia Communication Group is established, including mother company, subsidiary companies and associated companies as follows: (7) MOTHER COMPANY: ONE MEMBER COMPANY LIMITED VIETNAM MULRIMEDIA COMMUNICATIONS GROUP (VTC) (8) BLOCK OF TELEVISION – PRESS BELONGING TO MOTHER COMAPNY (9) BLOCK OF STUDY – TRAINING BELONGING TO MOTHER COMAPNY (10) TECHNOLOGY & DIGITAL CONTENT CORPORATION (Mother Company – Subsidiary Company) (11) DIGITAL TELEVISION SERVICE CORPORATION (Mother CORPORATION (Mother Company – Subsidiary Company) (12) DIGITAL TELECOMMUNICATION Company – Subsidiary Company) 03 business corporations under the model of Mother Company – Subsidiary Company include tens of subsidiary companies, associated companies with various functions and tasks which are associated subject to group pf branches, markets, technology and technique, creating a summarized strength to compete with domestic and international partners No Building Project Description of Establishment of Vietnam Time Quarter, 2013 th Multimedia Communications Group VTC to be submitted to the Ministry of Informatics and Communications Concern ministries and branches verify the Project and 1st Quarter, 2014 Charter of VTC Group To submit the Prime 2nd Quarter, 2014 Minster the Project of Establishment of Vietnam Multimedia Communications Page 133 Group VTC and establish Mother Company – VTC Group To implement the Prime Minister’s Decision: 1st Quarter, 2015 establishment of group and subsidiaries CONCLUSION Building and selecting a right business strategy has very important meaning, it is an essential factor to ensure existence and success of each enterprise Correct determination of a business strategy that is suitable to enterprise, taking full advantages of strengths in correlation with rivals helps enterprise sustainably exist and develop in the business environment full of changes, attractions and serious competition nowadays At present and in the following time, the number of VTC’s rivals increases day by day along with its growth To firmly keep its position and more develop in the future, VTC needs to concentrate to study, analysis and evaluation to build and complete its business strategy on the basis of dominant capacities, then to give optimal solutions for strengthening and improving competition capacity, take full advantages of its available strengths before existing and potential rivals From study and application of theoretical data, theories on competition and models of building, to choose business strategy, external and internal models of environement analysis and model of optimal business strategy selection (GREAT), this thesis has built and selected business strategies for VTC for stage 20122015, helping VTC to grasp and take full advantages of chances, exploit its dominant capacities and overcome limitations to control risks, realize its vision and mission This thesis stops at study, evaluation of situations, building of and selection of an optimal business strategy, recommend several solutions to implement selected business strategies The evaluation of implementation result of selected business strategies depends on the actual implementation process Due to limitations of time and resources, study result of the thesis is still Page 134 limited and need be added for more completion Therefore, we hope to receive consideration and contribution from the Committee, teachers and learners from X0610 Class so that the thesis is more complete, has higher application in business activities of VTC We would like to highly appreciate the consideration and assistance from the leadership, teachers from Vietnam National University, Hanoi who have created the best conditions for us to complete the Griggs International Business Administration Master Training Program./ Group 4, GAMBA01.X0610 REFERENCES Fred R David (2006), Concept on Strayegica Management, Statistic Pubilsher, Vietnam Philip Kotler (2011), Marketing 3.0, General Publisher HCMC, Vietnam Michael E Porter ( 2010), Competive strategy, Young Publisher, Vietnam Leture Siled of Strategic Management Subject MBA Griggs in 2011 Reports of VTC Corporations in 2005;,2006;2007;2008; 2009; 2010 Internet Materials Website: http://www.vtc.com.vn Website: http://mic.gov.vn …… Page 135 ... thank the University of Griggs - United States, ETC Center, MBA Program sincerely thank the University of Griggs United States, ETC Center, MBA Program -– Vietnam National University, of Hanoi, the... complete this exercise Sincerely yours Hanoi, December 28th 2011 THE AUTHORS Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT... AND OPERATION OF VTC 27 PRACTICAL OPERATION AND DEVELOPMENT STRATEGY OF VTC 27 Team exersice 4.Gamba01.X0610 Subject: Strategica Management TRAINING COURSE MASTER OF INTERNATIONAL BUSINESS MANAGEMENT