Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (280)

AUTHENTICATION OF NIEM TIN CO.LTD On behalf of Niem Tin Co.Ltd, I authenticate that all members of group – C0910 Class includes: Mr Huy, Mr Trường, Mr Đạt, Ms Trang have consulted us in accomplishing this Graduation Project about Niem Tin Company Approved by the Board of Director, they have done realistic survey at the Company With the kindly support, Niem Tin Company has provided some necessary documents as contribution to their Graduation Project We verified that the Graduation Project of Group - X8010 reflects the realistic and objective situation of Niem Tin Company and that it has indicated the business plan which is suitable for the Company in the near future We really appreciate and promise to consider applying this business strategy On behalf of Niem Tin Co.Ltd Job titleGenaral Director NameNguyen Viet Son ` i ACKNOWLEDGEMENT I hereby undertake that the Captone Project Report with the subject: “Formulation of Business strategy for Niem Tin Co.,LTD 2011- 2016” represents an independent research project of Group - Class X0810 with the help of the instruction teacher and the hardworking of the whole group All data given in this Captone Project Report are realistic and from clear sources This report has not declared in any scientific research project On behalf of Group Group Leader Do Quang Huy ` ii TABLE OF CONTENTS 1.1 Definition of business strategy: 1.2 Allocating the business strategies: 1.3 Managerial strategy: 1.4 Process of managerial strategy 1.4.1 Process of managerial of Fred R David Graph 1.1: Managerial strategy model of Fred R David .5 Graph 1.2 Five competitive forces model - Michael Porter Graph 1.3: Organization value chain model - Michael Porter 1.4.2 Tools to construct and choose strategy: Graph 2.2: Solutions providing by NTC 15 Table 2.1: NTC business situational report 16 2.2 NTC internal environment analysis 17 2.2.1 The core activities of NTC 17 2.2.1.1 Inputs supplies activities 17 2.2.1.2 Services Supplies: 17 The building solution's products supply procedures are implemented in logic and simultaneously step by step (appendix 5) The company focuses on the creativities and the significant value in each product and service based on dominating advanced technologies and profound understanding about customers' business activities, followup the target of protecting customer profit, forming a close service system from consulting, investigating, designing to training and transferring management techniques to ensure the most conformity and satisfies to customers 17 2.2.1.3 Outputs activities: 18 2.2.1.4 Marketing activities: 19 Graph 2.3: Distribution channel of NTC 20 2.2.2 Customer service .21 Customer’s response is good about the after-sale service activities of the company 21 2.2.3 Supporting activities: 21 2.2.3.1 Human resources management: .21 2.2.3.2 Technology development: .22 2.2.3.3 Purchasing activities: .22 2.2.3.4 Infrastructure: 22 Table 2.3: The judgment criterion on legality and reputation of NTC .26 Table 2.7: Suppliers in equipment and solutions CHAPTER CONCUSION: Table 3.34: Financial estimated (expanding showroom) 27 Table 3.45 Financial estimated (Opening branch in Da Nang city ) 28 Table 3.56 Revenue and – estimated cost (estimated) from 2011to 2016 29 REFERENCE 53REFERENCE 62 ` iii LIST OF ABBREVIATIONS BMS CP CTTNHH DN DNNN DNTN EFE GDP HĐQT IFE IT MIS NTC QĐ QSPM SBU SWOT USD WTO IMF WB ` Building Management System Government Limited Company The Company/Enterprise State Enterprise Private Enterprise External Factor Evaluation Gross Domestic Product Board of Directors Internal Factor Evaluation Information Technology Management Information System Niem Tin Co.,LTD Decision Quantitative Strategic Planning Matrix Strategic Business Unit Strengths, Weaknesses, Opportunities, Threats US Dollar World Trade Organization International Monetary Fund World Bank iv LIST OF TABLES 1.1 Definition of business strategy: 1.2 Allocating the business strategies: 1.3 Managerial strategy: 1.4 Process of managerial strategy 1.4.1 Process of managerial of Fred R David Graph 1.1: Managerial strategy model of Fred R David .5 Graph 1.2 Five competitive forces model - Michael Porter Graph 1.3: Organization value chain model - Michael Porter 1.4.2 Tools to construct and choose strategy: Graph 2.2: Solutions providing by NTC 15 Table 2.1: NTC business situational report 16 2.2 NTC internal environment analysis 17 2.2.1 The core activities of NTC 17 2.2.1.1 Inputs supplies activities 17 2.2.1.2 Services Supplies: 17 The building solution's products supply procedures are implemented in logic and simultaneously step by step (appendix 5) The company focuses on the creativities and the significant value in each product and service based on dominating advanced technologies and profound understanding about customers' business activities, followup the target of protecting customer profit, forming a close service system from consulting, investigating, designing to training and transferring management techniques to ensure the most conformity and satisfies to customers 17 2.2.1.3 Outputs activities: 18 2.2.1.4 Marketing activities: 19 Graph 2.3: Distribution channel of NTC 20 2.2.2 Customer service .21 Customer’s response is good about the after-sale service activities of the company 21 2.2.3 Supporting activities: 21 2.2.3.1 Human resources management: .21 2.2.3.2 Technology development: .22 2.2.3.3 Purchasing activities: .22 2.2.3.4 Infrastructure: 22 Table 2.3: The judgment criterion on legality and reputation of NTC .26 Table 2.7: Suppliers in equipment and solutions CHAPTER CONCUSION: Table 3.34: Financial estimated (expanding showroom) 27 Table 3.45 Financial estimated (Opening branch in Da Nang city ) 28 Table 3.56 Revenue and – estimated cost (estimated) from 2011to 2016 29 LIST OF GRAPHS 1.1 Definition of business strategy: 1.2 Allocating the business strategies: ` v 1.3 Managerial strategy: 1.4 Process of managerial strategy 1.4.1 Process of managerial of Fred R David Graph 1.1: Managerial strategy model of Fred R David .5 Graph 1.2 Five competitive forces model - Michael Porter Graph 1.3: Organization value chain model - Michael Porter 1.4.2 Tools to construct and choose strategy: Graph 2.2: Solutions providing by NTC 15 Table 2.1: NTC business situational report 16 2.2 NTC internal environment analysis 17 2.2.1 The core activities of NTC 17 2.2.1.1 Inputs supplies activities 17 2.2.1.2 Services Supplies: 17 The building solution's products supply procedures are implemented in logic and simultaneously step by step (appendix 5) The company focuses on the creativities and the significant value in each product and service based on dominating advanced technologies and profound understanding about customers' business activities, followup the target of protecting customer profit, forming a close service system from consulting, investigating, designing to training and transferring management techniques to ensure the most conformity and satisfies to customers 17 2.2.1.3 Outputs activities: 18 2.2.1.4 Marketing activities: 19 Graph 2.3: Distribution channel of NTC 20 2.2.2 Customer service .21 Customer’s response is good about the after-sale service activities of the company 21 2.2.3 Supporting activities: 21 2.2.3.1 Human resources management: .21 2.2.3.2 Technology development: .22 2.2.3.3 Purchasing activities: .22 2.2.3.4 Infrastructure: 22 Table 2.3: The judgment criterion on legality and reputation of NTC .26 Table 2.7: Suppliers in equipment and solutions CHAPTER CONCUSION: Table 3.34: Financial estimated (expanding showroom) 27 Table 3.45 Financial estimated (Opening branch in Da Nang city ) 28 Table 3.56 Revenue and – estimated cost (estimated) from 2011to 2016 29 ` vi PREFACE Introduction Having participated in providing technological solutions for 15 years, Niem Tin Co.Ltd (NTC) has developed majorly and strengthened its reputation However, when facing with the reality of opportunities and challenges in this fluctuant business environment, the Company needs to evaluate accurately its capacity and flexibly construct the necessary business strategy Based on the realistic research about NTC, we realized that the BOD has not sketch the long-term development for the company On the basis of knowledge along with the realistic experience, we have introduced “Construction of business strategies for Niem Tin Co.Ltd from 2011 to 2016” as suggestion of choices for the directors in directing the development of business in the near future Research aim Based on analyzing some theoretical issues and approaches in constructing business strategies, we can estimate the business situation as well as working environment of NTC in order to construct the business strategy from 2011 – 2016 The objects and researching scale Objects: Reality about the strategy, figures, and financial statement from 2011 2016 Research scale: NTC’ product are technological solutions, which includes these main area: building solution, software solution, applicable industry solution Among these, the building solution is provided by NTC (the headquarter) The subsidiary company of software provides software solution Plus, applicable industry solution is provided by the subsidiary company of industry solution These two subsidiaries run the business as the Joint Stock Company with separated account, which undertake two different business area and have its own development strategy Thus, we suppose to mention the NTC’s business strategy about intelligent housing solution which is the sole product of the company now and then NTC’ product are technological solutions, bao gồm mảng chính: giải pháp tòa nhà, giải pháp phần mềm, giải pháp ứng dụng cơng nghiệp Trong đó, giải pháp tịa nhà NTC (tạm gọi Cơng ty mẹ) thực Giải pháp phần mềm Công ty CP NTC – Giải pháp phần mềm Công ty NTC đảm nhiệm Giải pháp ứng dụng công nghiệp Công ty CP NTC – Giải pháp Công nghiệp đảm nhiệm Hai công ty NTC hoạt động độc lập hình thức Cơng ty CP, hạch toán độc lập, đảm nhiệm hai mảng kinh doanh tách biệt với Cơng ty mẹ có chiến lược phát triển riêng cho mảng Do vậy, nghiên cứu đề cập tới chiến lược kinh doanh NTC hướng đến mảng giải pháp nhà thông minh, sản phẩm cốt lõi công ty mẹ NTC thời gian tới Research approaches Applying theories: the theory of constructing business strategies, analyzing business environtment, analyzing the internal and external factors as well as some related matrix models; Using statistical approach: collecting, reckoning and working based on description Structure of the Project: The project has chapters: Chapter 1: Background of general theory about business strategy Chapter 2: Analysis of business environment of NTC Chapter 3: Construction of business strategy for NTC in 2011-1016 CHAPTER I BACKGROUND OF GENERAL THEORY ABOUT STATERGIES OF THE ENTERPRISE 1.1 Definition of business strategy: There are many different viewpoints about business strategies • According to Alfred Chandler in “Strategy and Structure” , published in 1962 by Harvard University: “Sstrategy is the process of exterminating organization’s long term goals, choosing the approaches and allocating all necessary resources to accomplish that goal” • According to Michael Porter in “Competitive advantage”, published in 1985 by Free Press, New York: “Strategy is the research of finding a competitive position that is suitable for an industry or a business in which the competitive activities occur Strategy, from his point of view, focuses on the competitive aspect • The definition provided by William F.Gluek in Strategic Management and Business Policy, published in 1988 by McGraw-Hill states that: “Strategy is a united and comprehensive plan which designed to ensure that the basis goal of the whole organization is to be successful • In our opinion, strategy is the trend and size of an organization in long term The effective and efficient allocation and usage can lead to success in accomplishing organization’s targets 1.2 Allocating the business strategies: Based on the business scale and manufacturing functions of the company, there are basic strategies as followings: • The first strategy for organization is the strategy built for the whole entity in every business field in which it participates The aim of this strategy is to define the overall desired goal in all activities as well as the approach to achieve them • The second strategy is SBU (Strategy Business Unit) which built for a particular business field In case that the organization only participates in a business field, the business strategy is SBU • The third strategy is functional strategy: this is the strategy for individual function in company such as finance, marketing, human resource, etc We can consider the functional strategy as supports so as to successfully construct business strategy and SBU 1.3 Managerial strategy: According toTheo Fred R.David cuốnin managementKhái luận quản trị chiến lược”, “Concepts of strategic NXB Thống kêStatistical Publishing House, 2006: Managerial strategy may be defined as a science that establishes practices and evaluates decisions related to many functions and allows an organization to reach its target 1.4 Process of managerial strategy 1.4.1 Process of managerial of Fred R David Nowadays, there are many managerial strategy models but Fred E.David’s model is said to be the most widely applied This model represents a clear, realistic approach in establishing Practicing and testing the strategy, this has shown by the following graph: Showroom cost 1,000,000 400,000 400,000 400,000 400,000 Wage cost 240,000 240,000 240,000 264,000 264,000 Other costs 60,000 60,000 60,000 100,000 100,000 Total 2,620,000 1,620,000 1,620,000 1,764,000 1,764,000  Capital drawn up from the remaining profit of NTC 3.5.2 Opening branch in Ad Nang City Table 3.45 Financial estimated (Opening branch in Da Nang city ) Unit: Million VND No Detail Year 2013 Year 2014 Year 2015 Year 2016 Premise cost 600,000 600,000 600,000 600,000 Equipment cost 200,000 50,000 50,000 50,000 Fixing cost 100,000 20,000 20,000 20,000 Marketing cost 200,000 50,000 50,000 50,000 Wages cost Management cost Other costs 1,530,000 2,550,000 4,080,000 5,100,000 200,000 250,000 350,000 350,000 50,000 100,000 200,000 200,000 Total: 2,880,000 3,620,000 5,350,000 6,370,000 3.5.2 Buget to perform strategy Due to the above expectation, it is necessary to require a strong financial position for the company to expand and stabilize in Da Nang up to 2016 This capital can be obtained from these resources: Theo ước tính trên, việc mở chi nhánh Đà Nẵng ổn định hoạt động chi nhánh tới năm 2016 cần lượng vốn lớn Nguồn vốn công ty lấy từ nguồn: - Using retain earning of the company Lợi nhuận giữ lại công ty - Issuing stock to in security marketHuy động vốn từ thị trường chứng khốn thơng qua phát hành cổ phiếu 28 By our estimation, in case of gaining profit, the retain earning after paying dividend can obviously settle down the business costing Nevertheless, the company can mobilize capital by issuing stocks This is an effective way to follow because the security market is still very potential In fact, the company should consider carefully the way of obtaining capital Capital drawn up from the remaining profit of NTC 3.5 Revenue and – estimated cost (estimated) from 2011 to 2016 Table 3.56 Revenue and – estimated cost (estimated) from 2011to 2016 Unit: Million VND No Accounts 2011 2012 Revenues from 165,000 198,000 sales and services Cost of goods sold 123,750 148,500 Accumulated benefit on sale and 41,250 49,500 services Total cost 32,312 38,163 Total benefits 7,873 10,770 before tax Benefit after Business income 5,905 8,077 tax Trên The above is the cost expectation in Year 2013 2014 2015 2016 277,200 374,220 505,197 682,016 207,900 280,665 378,898 511,512 69,300 93,555 126,299 170,504 52,204 70,495 95,233 127,175 16,241 21,907 29,513 41,163 12,181 16,430 22,135 30,872 each year that we have calculatedmà chúng tơi tính tốn According to it, the sale and profit will be increasing along with expanding the business scale 3.6 Petiton with NTC − The strategy shoul be crried flexibly and comprehensively The goal should be flexible in oder to be suitable for every particular situatuon at the same time − When reaching the goals, it should be actively moved to another period on the basis testing and evaluating honestly the previous stuation 29 CHAPTER 3: CONCLUSION: From our point of view, among many approaches that are appropriate with NTC, the market penetration strategy which based on the strong points of company as well as the surmounted weak points is considered to be the most accurate decision of NTC at this period of time Approaches that are mentioned in this part are aimed to support the performance of the chosen strategy 30 CONCLUSION Through a period of research and analysis from many document sources, this project has summarized all of the basically necessary information in a process of planning a strategy Niem Tin Co.Ltd has many strengths but also some weakness that need adjusting to develop in this potential market in providing technological solution This project applies knowledge of management to analysis the internal environment, demonstration, macro economy Especially, the author used the value chain in analysis of internal environment to clarify strengths and weaknesses of NTC, which contribute to add customers’ value Simultaneously, through analysis of macro market, the company can figure out its opportunities and threats The summary of all these elements is the foundation of building a business strategy for NTC from 2011 to 2016 The strategy that recommended from us is to develop its market by opening more showroom, branches and its business scale The weak point of project is that it still does not provide a deep analysis about other competitors because of the lack of their accurate information We just stop at make a general determination of strengths and weaknesses of other competitors Besides, the evaluation of factors in some matrices is still subjective as it is collected from tackling information Thus, it is quite hard to prevent from being subjective evaluations However, we have generally indicated many appropriate strategies with goals and mission of corporation and it is also the mutual trend in business performance of others On the basis of analysis and opinions, our group has petitioned with the company for actively expanding in order to take market share based on its strengths and improving weaknesses We are strongly believed in the success capacity of the enterprise 31 APPENDIX APPENDIX SUMMARY OF NTC’S FINANCIAL STATEMENT FOR 2011-2016 Unit: Million VND Number 10 Details Short-term assets Long-term assets Inventory Short-term Debt Payables Owner equity Total asset Revenues from sales and services Cost of goods sold Benefit after Business income tax 32 2008 97,226 8,370 41,530 95,902 95,865 9,731 105,597 93,139 69,944 2,937 Year 2009 101,357 8,907 30,290 98,200 97,571 12,693 110,264 87,499 54,534 3,709 2010 95,018 5.623 43,896 78,885 88,682 11,959 100,641 161,824 124,370 5,367 APPENDIX 2: THE BUSINESS AREA OF NTC Business area Đơn vị thực hiệnCompanyPe rform by Goods and services Energy management solutions Niem Tin Ltd Integrated security Building Co (pParent solutions Management company) Công Integrated management System (BMS) ty TNHH Niềm solutions tin (Công ty mẹ) Environment management solutions Niem Tin – Process automation Industry Solution solutions Joint Stock Factories automation Company – solutions Automation Industry Solution Movement control Technology Công ty CP NTC solutions – Giải pháp công Energy management nghiệp solutions Unified telecommunication solutions Communication Telecommunication Niem Tin Ltd, solutions (Integrated in Co (Pparent Television meeting BMS)Tích hợp company) Cơng solutions giải pháp tòa ty TNHH Niềm Customers interaction nhà) tin (Công ty mẹ) solutions Hotel and hospital solutions Financial bank solutions Niem Tin – Financial system and Software customer services Solution Joint Corporate management Stock Company solutions Software solutions – Software Integrated information Solution Công ty entrance solutions CP NTC – Giải Online transaction pháp phần mềm solutions 33 Customers Buildings, hotels, hospitals, plazas, etc Food and drink factory, water and sewage treatment factory, electric factory, cement factory … Enterprises, corporations, hotels, hospitals, financial organization, banks… Firms, corporations, security companies… APPENDIX 3: TYPICAL CUSTOMERS OF NTC APPENDIX 4: PARTNERS OF NTC 34 35 APPENDIX 5: PROCESS OF PERFORMING PROJECT THỰC HIỆN CƠNG TRÌNH/DỰ ÁN (SPD) Design solutions (SPD) Design (PID) Design the intelligent controlled solution of technology Detail technical drawings in every function and item Detail executive drawings detail technology Father documentary Give operation instruction and operate (PID) (SPD) Research and survey the reality and usage needs Construct the intelligent solution compatible with every object Choose the equipment Install Program and integrate system (PID) Test (COD)After and trial Integrate all tools of the intelligent controlled system Construct controlled applications and functions Program and install for every particular tools Test and make trial before delivery Adjust all intelligent function as requirement sale services (PID): Perform by: Solution & Products Development Division (SPD): Perform by: Project Implement Division (COD): Perform by: Corporate Division 36 APENDIX 6: POTENTIALITY OF BMS IN VIETNAM In the world: In the world, most of the buildings in some modern centers such as: office complex, banks, government, airport buildings, or some flats are equipped by BMS system It is a vital factor in effectively and efficiently exploiting buildings Besides, it also helps satisfying the needs of safety In Vietnam: - About 90% of the number of buildings in Vietnam is equipped with the infrastructure system, the providing and discarding water system, the electricity system, the air-condition system and fire-alert system, which is the normal type of building - About 50% of the number of buildings with the air-condition system, the fired alert and protection system, the penetrated system and the camera supervision system has not equipped with BMS system yet All the equipment is controlled individually These controls are not connected each other and there is no general monitor with the low electric management This is the buildings with controlled systems and general controls but not the BMS system - About 30% of the buildings is equipped with the air-condition system, the fired alert and protection system, the penetrated system, the camera supervision system, the BMS system, as well All of these systems are controlled in a separated and integrated way The BMS allows to reciprocate information and management among systems and to make a general management The BMS also allows building to be controlled with high electricity This is the kind of large buildings with the automate BMS - About only 10% building of Vietnamese buildings is equipped with intelligent managed building system This system allows BMS to make a general control of air-conditioner system, fire-alert system, etc These systems are integrated with many information systems, telecommunications and automate office systems This is the intelligent large building which is also called the highly efficient building, green building, high-tech building or the especially functional building such as hospitals, central agency, parliament buildings, etc - Through these above figures, we can realize a reality that most of the high buildings in Vietnam have not been equipped with BMS yet In the respect of quality and efficiency, the requirement is not matched According to the inevitable 37 trend in assimilation with global economy, BMS will become an inevitable factor while constructing many buildings 38 APENDIX 7: TYPICAL PROJECTS OF NTC Petrolium Business Center (BMS system: BCMS, CCTV & Access Control) Software production & Training Human Resources FPT (BMS system: CCTV, Access Control, MATV, PA & Intercom) Ho Chi Minh Television (BMS system: PABX, BMS, Access Control, CCTV & PA) Office Building & Business Center Sacombank (BMS system: BMS, Lighting Control & Access Control) Ho Chi Minh Museum (BMS system) Bao Viet Head Quarter Building (BMS system) 39 REFERENCE  Alfred Chandler, “Strategy and Structure” , published in 1962 by Harvard University Michael Porter, “Competitive advantage”, published in 1985 by Free Press, New York William F.Gluek, “Strategic Management and Business Policy”, published in 1988 by McGraw-Hill Fred R.David, “Concepts of strategic management”, Statistical Publishing House, 2006 On competition (updated and expanded editor), Michael E Porter, Harvard Business Review Book, 2008 Competitive Strategy: Techniques for Analyzing Industries and Competitors, Michael E Porter, Free Press, 1998 Concept of Strategic Management – Fredr David – Statistic Publishing House 2006 Philip Kotler, 1999 Principles of Marketing – Statistic Publishing House Michael E Porter Competitive advantage New York: Free Press 1985 10 NTC Audited Financial Report 20098,-2010 11 Michael E Porter, National Competitive Advantage, Youth Publishing House, 2009 12 Michael E Porter, Competitive Strategy, Youth Publishing House, 2009 13 Michael E Porter, Competitive Advantage, Youth Publishing House, 2008 14 Information provided by NTC 15 Resources on the following webs: - Thanh Nien News: www.thanhnien.com.vn - Business forum: www.dddn.com.vn - Vietnam Economic Times: www vneconomy.vn - Youth News: www.tuoitre.com.vn And other references 40 ... trường kinh doanh Việt Nam tồn thực tế doanh nghiệp có mối quan hệ tốt với Cơ quan chủ quản nhà nước, chủ đầu tư thường ưu đối tượng khác có quan hệ NTC có lợi có mối quan hệ tốt với quan chủ quản, ... hạch toán độc lập, đảm nhiệm hai mảng kinh doanh tách biệt với Cơng ty mẹ có chiến lược phát triển riêng cho mảng Do vậy, nghiên cứu đề cập tới chiến lược kinh doanh NTC hướng đến mảng giải pháp... xác theo lãnh đạo NTC, 60% doanh thu Cơng ty từ cơng trình, dự án ký kết có từ mối quan hệ làm ăn 40% doanh thu từ tham gia đấu thầu dự án Trong cấu Công ty, khối kinh doanh thị trường chịu trách