Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (287)

CHAPTER - SUMMARY In this chapter, we introducce the mission, orgnisation structure, functionallity of NTC Using the theory in the 1st chapter to analise the current situation of the company and to evaluate of the current business strategy The result of this research will be used to develop the future strategic business in chapter III Capstone project – Group – GEMBAE01 35 CHAPTER II CURRENT STATUS OPERATION AND EXISTING BUSINESS STRATEGY OF NTC 2.1 Company Profile 2.1.1 Introduction 1.1.1 Genneral Infomation Transaction Name Niem Tin Co., Ltd (NTC) Head office 8th Fl., 142 Doi Can St., Hanoi Tel +84(4) 3722 2939 Fax +84(4) 3722 2940 Email info@ntc.com.vn Website http://www.ntc-vn.com Date of establishment 18/04/1997 General Director Mr Nguyen Viet Son No of employee 120 Registration paid-up capital VND10,000,000,000 (ten billion dongs) Ho Chi Minh City Branch Office Address Floor FC1, 268 To Hien Thanh, District 10 - HCMC Tel +84(8) 3868 1818 Fax +84(8) 3868 1520 Hai Phong City Branch Office Address Room 501, 275 Lạch Tray, Hai Phong City Tel +84(31) 3733978 Fax +84(31) 3733979 Capstone project – Group – GEMBAE01 36 2.1.1.2 Mision “Trust in tomorrow” NTC are a Vietnamese company involved in information-communication area with a simple name of Niem Tin Niem Tin in Vietnamese means trust It is our trust in our own capabilities and the ambition to contribute to the development and the bright future of our country That is why there is the V sign in our corporate identity to always remind we are Vietnamese and we have to strive for Victory By maintaining a professional and inspiring working environment while promoting the employee’s creativity, NTC always our best effort to provide our enterprise customers with efficient information - communication tools to help them set up seamless communication channels down to the smallest units in their organisation, whereby they can make decision in the shortest time and the most cost-effective way We therefore always start from understanding the business model and the present as well as future requirements of the customers With the motto “the customer’s success is ours”, we have won the trust of our customers Capstone project – Group – GEMBAE01 37 2.1.1.3 Organization structure Building Building Solution Solution Center Center (BSC) (BSC) Communication Communication Solution Solution Center Center (CSC) (CSC) Board Board of of Founders Founders Professional Professional Service Service Center Center (PSC) (PSC) General General Director Director Software Software Solution Solution Center Center (SSC) (SSC) Industrial IndustrialAutomation Automation Center Center (IAC) (IAC) NTC NTC Haiphong Haiphong Center Center (NHC) (NHC) Finance Finance & &Account Account Division Division (AFD) (AFD) Corporate Corporate Division Division (CoD) (CoD) Branch Branch Office Office Capstone project – Group – GEMBAE01 38 2.1.2 Products and service 2.1.2.1 Building Solutions As a result of the development of the economy, high-rise buildings, hotels, hospitals, factories…are being constructed in greater number with more advanced technologies Investors are now interested in advanced use of the building to enhance the users’ satisfaction as well as facilitate the most effective building management and operation This is the good opportunity for NTC to provide the full range of building automation management, including: 2.1.2.1.1 Energy management - Heating-Ventilating-Air-conditioning (HVAC) management - Power and water distribution monitoring & management - Lighting management (Litrol) 2.1.2.1.2 Integrated Security System - Access Control - CCTV - Fire and intrusion alarm system 2.1.2.1.3 Building Management Solutions - Siemens Apogee - Intelligent Building Management (IBMS) 2.1.2.2Communication solutions NTC supply a range of solutions to address all voice, image and data integrated communication requirements of enterprise customers Capstone project – Group – GEMBAE01 39 In every project, we start from understanding the customer’s business model to propose the solution optimal for the service of such model at present and in the future Our solution then is not only most suitable for their nature of business but also help them protect their investment today and tomorrow A number of typical communication solutions provided by NTC include: - Call Centre - VoIP solution - Hotel solution - Banking solution - Video Conferencing solution 2.1.2.3 Professional Service With professionally trained technical engineers and close cooperation with manufacturers NTC is capable of provision and installation of a wide range of technical products and services in the information-communication area, including: - On call service for communication systems - Maintenance of communication systems - Leasing of communication systems - Lighting protection systems - Structured cable network - Supply spare-parts Customer Interactive Centre (Contact Centre): NTC provide the Customer care service for our partners in the fields of Telecom, Financial Bank, Securities, Capstone project – Group – GEMBAE01 40 Insurance and Consumer goods distribution scope … Customer interaction in many ways such as Telephone, Email, Fax, Web, Chat, and SMS Contact Centre Service including: - Providing system device and model solution with package establishment for partner requirement of customer service - Supplying manpower for advisory and customer care - Leasing of terminal equipment (IP technology foundation), is installed for partner to serve for customer service requirement - Exploitation and supplying information of advisory, entertainment… - Lending system for SMS service 2.1.2.4 Software Solution As the professional system integrator and solution provider in the area of information-communication, our strength is special-purpose telecommunication software On the other hand we develop enterprise management products and implement outsourcing Our products for local market comprises of: - Customers Relation Management - Call Accounting System - Enterprise solutions - Hotel solutions - Web application - Trading online Solution - Short Message System (SMS) Capstone project – Group – GEMBAE01 41 2.1.2.5 Industrial Automation Industrial automation is one of the potential markets in Vietnam In this area, NTC concentrate providing professional services in the fields of: - Factory automation - Process Automation - Motion control - Low Voltage control and Installation Technology Our business cover: - Automation Level - Manufacturing Execution System (MES) - Enterprise Resource Planning (ERP) Our products for local market comprises of: - PLC, Controllers, Inverters, Converters, Process Instrumentation products, Sensors, Transducers and relating products - SCADA, DCS, Motion Control Systems - Automation solutions & technical service for industrial plants and original equipment manufacturers (OEM) Bellowing are some typical control applications and solutions: - Motion/speed control systems (for AC, DC, servo motors) - Elevator and escalator control - Generator automatic transfer switch and generators’ control - Weighing system for mixing and dosing purpose Capstone project – Group – GEMBAE01 42 - Belt scale control - Water pressure stabilization using pump control - Petroleum tank gauging and automatic load/unload control - Tele-measuring, tele-monitoring and tele-control - Process parameters (temperature, pressure, flow, level) control - Control system for coal-handling and ash-handling systems of coal-fired thermal power plants - Automation solution for ship power system, cement plant and grinding station, beer brewery and clean water and waste water - Automation system for glass manufacturing plant - Petroleum tank farm management system 2.1.3 Partnership NTC has been appointed the Official Partner to internationally leading manufacturers in information-communication areas such as:  SIEMENS AG (Germany)  ASC (Germany)  TOTAL RECALL (Australia)  MOTOROLA (USA)  PLANTRONICS (USA)  TANDBERG (Norway)  KEYMILE (Switzerland)  SONY (Japan)  SENAO (Taiwan) Capstone project – Group – GEMBAE01 43 Particularly, NTC has become the Solution Partner of Siemens AG Group (Germany) in both Communications and Building Management On this highest level of partnership of Siemens, we are certified by the manufacturer to have the capabilities of consulting, designing, supplying total solution in highly – complex projects 2.1.4 Customers With quality product and service, NTC has won the trust of enterprise customers of all economic sectors over the country The following chart presents our customer groups and their percentage in our customer database Our typical customers: Capstone project – Group – GEMBAE01 44 push the technology more and more innovative Vietnam’s culture is especially flexible to the new trends that requires new technologies applied 2.3.5.4 Racial environment The segmentation of racial in the macro environment relates to population, the age structure, the distribution of geography… This segmentation affects to enterprises The distribution of georgaphic population creates opportunity for communication area due to the high demand of communication with the community Age structure has also the affect on micor enviroment of IT development For example: the old has limitation on updating new technologies meanwhile Vietnam is the young population country thus the adaptation to new technologies is opportunity and threat to the enteprises 2.3.5.5 Political and legal environment Has been joining WTO for years, the opportunities has been openned for enterprises The decrease of import tax when Vietnam joinning AFTA helps enterprises to access to foreign solutions and products Technologies has been applied to daily business processes also makes more chances to enterprises 2.3.5.6 Global environment The trend of more investment on technology world wide that opens more opportunity to enterprises to apply new technology, however it is also a big challenge for those companies who want to develop their own technology 2.3.6 5-force model for industrial analysis of Micheal Porter Capstone project – Group – GEMBAE01 51 ICT and Automation is a very potential in Vietnam, in order to valuate competence of NTC we are using 5-force model for industrial analysis of Micheal Porter: 2.3.6.1 Entry Barrier Entry barrier for technology business in Vietnam is rather low due to the followings: - The cost of investment to enter that business sector is low: the company can use the existing products and solutions which can skip the investment on production line, the company only invests on transfering know how - The demand of living standard is increase gradually meanwhile infrastructure still need to delvelop consists of modern urban, hospitally, office building that a big chance for enterprises - ICT companies are booming over the last years including FPT, CMC and they become a very potential competitors when tied up with big manufacturers 2.3.6.2Competition among established firms NTC is operating in areas, there are numbers of competitors in each area but not many of them operating same areas as NTC Howerver, NTC is operating areas rather indepently thus we compare NTC to other competitors on each area 2.3.6.2.1 Building Management solutions Table 2.5 : Competition BMS’s supplier in Viet Nam Category Quality (reliabe, accuracy ) The diverify of solution Technological solution Manufacturer Price level IBS Fair Good Good Honeywell Low ITD Good Fair Fair TAC High NTC Good Good Fair Siemens Relatively high Capstone project – Group – GEMBAE01 52 Customer awareness Well known Low Well known 2.3.6.2.2 Information and Communication solution Table 2.6 : Competition In formation and Communication solution’s supplier in Viet Nam Category Quality (reliabe, accuracy ) The diverify of solution Technological solution Manufacturer Price level Customer awareness ONE Ericsson Việt NTC Good Fair Good Alcatel High Nam Fair Fair Fair Ericsson Fair Good Low Fair Siemens Relatively Well known high Well known Well known 2.3.6.2.3 Industrial Automation Solutions Table 2.7 : Competition Industrial Automation solution’s supplier in Viet Nam Category Quality (reliabe, accuracy ) The diverify of solution Technological solution Manufacturer Price level Customer awareness ITD Good Fair Fair Siemensl High Well known AFI Fair Fair Low ABB Low Well known NTC Good Fair Good Siemens High Well known 2.3.6.2.4 Software Solution Table 2.8 : Competition Software solution’s supplier in Viet Nam Category Quality (reliabe, accuracy ) The diverify of solution Technological solution Capbility Capstone project – Group – GEMBAE01 FPT Good Good Good Professional ITD Fair Fair Low Very low NTC Good Fair Good Low 53 Price level Customer awareness High Well known Low Low Very low Very low 2.3.6.2.5 Professional services Table 2.9 : Competition Professional services’s supplier in Viet Nam Category Quality (reliabe, accuracy ) The diverify of solution Technological solution Capbility Price level Customer awareness FPT Good Good Good Very low High Low ITD Fair Fair Low Fair High Fair NTC Good Good Good Low Low Fair Compared to other competitors, NTC has the competence consisting of innovation capability to create their own value through out products and services, based on application of advanced technologies and the understanding of their customer’s business processes NTC’s solutions can help customers to make their decision process precisely, fast and also optimize their operation cost For example: NTC’s Building automation solution can be applied to the construction business in which the building owner not only build flats and offices with basic features but also provide end-user with the space of comfort The building automation solution is based on the integration and centralised control of all mechnical and electrical systems in the building which is: Heating ventilation and aircon system, electrical distribution system, lighting control system, lift, Fire alarm and fighting system, communication systems, security system… will be optimized in energy comsumption and well adapted in different scenario (includes emergency case) Capstone project – Group – GEMBAE01 54 Providing Building automation solution, NTC can help enterprises to economize the energy consumption cost and operation cost which also can eliminate the concerns on security and managing the building Beside building automation solution, NTC also provide full range of communication solution that helps enterprise to maximize communication process internally as well as with the customers All solutions created by NTC emphasizes on the understanding of customer’s operation and specific requirements in order to provide them satisfaction Until now, NTC has various customer base including SMEs, financial institutes, energy firms, telco, sucurity company, transportation and state-own corporations 2.3.6.3 Substitute products Most of business model has substitute products, the substitute products can be either similar or not similar to the main product, they are as: - Building management system based on simple products and labour process: This solution is simple with less investement but not low effeciency and high risk, high energy comsumption and unreliable - Human operator to be used instead of telephone system that make a low investment cost but high cost of operation, time consumming This substitute products always show low efficiency thus strategy to convince customer to accept invest on technology will be the competition edge of NTC 2.3.6.4 Power of the buyer Capstone project – Group – GEMBAE01 55 The contract value of technology solution is rather high and typical, the solutions is customized for different customer Meanwhile the solution providers in Vietnam are still in small size and using pull strategy, in this case the buyer has more power 2.3.6.5 Supplier capability For the company, the products from partners will not be changed much The product of partner has very important role to company business The company is only one of global customers thus the pricing policy applied will not be so flexible In case the company wants to change partner (supplier), it is very costly In this respect, the power of supplier is very strong The supplier can also be entering the market and become competitor 2.3.7 The company inernal analysis - Value chain Figure 2.1 Value Chain Suppoting activities Infrastructure Communication system human resource research and development tageted strategy material management Main activities project study, Production, Programming, Warranty, solution imprtation commissioning, maintenance and training, and installation technology upgrading transfer service development, design development Capstone project – Group – GEMBAE01 56 2.3.7.1 Supporting activies 2.3.7.1.1 Company’s infrastructure The company is run by Board of Management consiting of members, which are: 01 president, member as Managing Director, member as Head of Supervisory The company orgnisation chart has functions of: management board; general director, Business units; back office and daughter companies 2.3.7.1.2 Information acquisition and process system As an IT company, NTC has been developing information infrastrure with advanced technologies Setting up the system of internal communication based on telephone network, intranet, email and file server which allows all staffs can exchange information in daily works The leased line is also established to network offices and subsidiaries thus the distance between offices is eliminated; most of urgent decision cases can be solved thanks to videoconferencing system installed in different locations Development of Orgnisation Information to introduce company to external elements through out company web site and PR activities on media The company and its customers can have better requirement and feed back continously A service hot line and company information email address to receive and response to all customer comments that help company to focus on customer satisfaction Capstone project – Group – GEMBAE01 57 2.3.7.1.3 Human resource Among current 140 staffs, the holding of bachelor and upper degree is 90%, followed by college graduation Most of input staffs are certified as talent student in the area of IT and Automation universities Moreover, NTC is also a potential enviroment for self-motivation and promotion of its staffs They are trained to work independently, team-work building as well as other skill trainings inland and oversea The young and dynamic human resource contribute ability of new technology approaching as well as innovation that build up company core value Table 2.10: Skill structure of NTC human resource by Aug 2009 Field of No education Education lever Master Bachelor College Age 30-40 < 30 > 40 graduation Information 33 18 16 Technology Automation Communicati 26 34 15 20 12 16 1 15 11 121 13 73 63 on and electrical Finance Foreign Languages Others Total Source: NTC human resource report in Aug 2009 2.3.7.1.4 Financial management Capstone project – Group – GEMBAE01 58 Based on annual budget plan in which the target and business direction are defined, the company develops plans on capital attraction and usage effectively, the size and growth rate of the company is also considered carefully NTC has been developing good relation with banking network such as: Bank of Investment and Development, Military Bank, An Binh Bank Beside that, much efforts on debt management has been carried out, changing the payment term from credit into accumulate payment upon work completion The priority of payment management is higher than the fast growth but unbalance cash flow 2.3.7.1.5 Customer relation Always carrying the message of bring customer the trust, NTC maintains good relation, firmed co-operation with customer by providing them quality products and services Customer’s comments on NTC service “… we are very please to annouce that our LAN and telephone network has been operating properly and effectively This is the result the continous support and providing service from NTC Since the system has been in maintenance service of NTC, we have not any problem to the system We feel very confident to NTC’s service.” (Quoted from Mr Yagi – Vice Marketing Manager, Toyota Vietnam) “Europe Delegation in Vietnam is pleased to work with NTC as a service provider since 2000 Under our IT Manager supervisory, NTC shows their responsibility to maintain the stabilisation of Telephone and LAN We highly recommend enterprises to use NTC service which you can find most satisfactory ” Capstone project – Group – GEMBAE01 59 (Quoted Mr Nicolas Provencal, Director of Europe Delegation in Vietnam) “Piacom and NTC has been in good co-operation relation over the years, especially during the implementation of Videoconferencing system brand Tandberg for Petrolimex Corporation, the good results has been proved from the very first step of developing solution to the last step of commissioning and handover We wish for the good success of the companies in the future! ” (Quoted Mr Tran Dang Dzung, Deputy Director of ICT Branch, Piacom) 2.3.7.1.6 Research and Development activites R&D is one of the most imprtant activity in NTC operation, with the slogan of “Your Solution Provider”, the company very much focuses on R&D team with the target of a new technology applied to the customer quarterly The investment on R&D is also increased along with the annual growth of company turnover Along with the investment on R&D team, the company has many programs to encourage the inspiration of staffs which their ideas can be applied into company daily business in order to increase the productivity, service quality, cost saving thus to reduce the selling price In the mean time, all project implementation teams have a good planning on site survey, shop-drawings and optimum works method to minimize the project schedule 2.3.7.1.7 Management on input elements It is named as input material, procurement, delivery and sotck managements during the project implementation processes NTC has built up and good partner ship network to reputation venders that creates optimization on oder processing which is also an advatage to the company Internally, NTC set up an order processing department (under Accounting and Finance Division) to manage frequent venders Capstone project – Group – GEMBAE01 60 list as well as to control the whole process of an order which covers following steps: order inquiry, shipment control, custom clearance, stock control and payment to suppliers 2.3.7.2Main activities 2.3.7.2.1 Project designing, solution development Initially the company approaches customers in order to clarify customer needs then proposes the suitable solution The bidding process will be followed by, to compete to other competitors Since the company is selected, it has to propose the most advanced solution with reasonable cost also to meet all customer requirements therefore can help customer on their daily operation 2.3.7.2.2 Importation, packaging and installation Contract signed based on approved solution to the customer, the company will work with foreign partner on impoted goods and local partner on local product The company will then carry out installation to turn parts into a solid system at customer site such as: building, hospitality, factory 2.3.7.2.3 Programming, commissionning, training and technology transfering After finishing installation, the company to add programing to the system and conduct user training This is very important step which contribute success to the project The optimum solution is to be user-friendly but also strong enough to comform to all customer requirement in the beginning The system in operation will help customer on their way to success, it is also the target of the company “your success, my success” NTC put much efforts and investment on this step for customer to be confident with the solution then project will have a best rusult 2.3.7.2.4 Warranty, maintenance and upgrading Capstone project – Group – GEMBAE01 61 After project handover and technology transfer to customer, the provided products in under warranty and maintenance service As the hi-tech products, the warranty service requires professional skills A service team with well trained engineers will conduct all after-sales service to the customer The measurement on customer satisfaction is very much concentrated 2.4 Current business strategy of NTC NTC has been applying the following strategies to get market share and brand name awareness 2.4.1 Cost leading strategy In this current economic situation, in order to win tenders, NTC has to manage cost to get the best bidding price However, the cut cost strategy is not the optimum and long term, it is affected by others: - Material cost is not reduced by suppliers - The overhead cost is tended to increase - The living standard is increased that lead to the increase of salary - The cost is cut down to a limit not unlimit The cost leading strategy has been applied since the company begin, recently this strategy has disadvantage The sales increases 300% yearly meanwhile profit increase only 18%, if this strategy is still used that make company decrease in profit ratio The investment on R&D, marketing will affect much on company longterm development Capstone project – Group – GEMBAE01 62 In the other hand, the information on other competitors is always available, this strategy will be copied and applied by new competiors that is the threat for NTC position in the market Since providing low cost solution that makes the sence of low end (it is naturally thought by customer) then the strategy will have a counter effect to company brand name 2.4.2 Diverify strategy Over the decade, NTC has various areas However, dueto the demand of technology of the market, the company dynamically adjusted to the suitable areas as it is now The following is NTC’s businesses: - Desk phones, mobile phone, facsimile - Photocopier, paper schreder, PC - Walkie talkie, portable music player The change of business areas and diversifying of NTC can provide customers with various products and gain the market share Since the market is mature the company will then to discontinue and change to new products Again, the R&D will be more focused and invested effectively 2.4.3 Marketing strategy Diversifying in business areas, NTC has applied the below for the marketing strategy: - Customer seminar on selected solution and approach the customer in the very beginning of project Capstone project – Group – GEMBAE01 63 - Trade show and supplier product launching - Banner on public 2.4.4 The applied strategies – advantage and disadvantage 2.4.4.1 Advantage: - Cost leading that can expand the coverage to the market, gaining market share - Competitor has find other strategy to compete to NTC - Awarding performance result by suppliers thanks to frequently and big order, the supplier will then apply a good condition (pricing, payment term) to the company - The cost leading strategy is also a barrier for new comers to the market that can indirectly eliminate competition - The cost leading strategy show the ability of company on financial management and overhead cost - Diversifying helps the company to provide total solution to customers and value is added to company competence - Helps the company on experience during enter precess to new industries is also a competition aspect - A good training enviroment for staffs to try with different business oppotunities that leads to innovations 2.4.4.2Disadvantage - The cost leading strategy is not for long term operation, cutting down the cost means losing company images, losing quality and not to attract to labor force Capstone project – Group – GEMBAE01 64 - Competitor may go for price racing tactic that makes difficulty to the company - The competitor with substitution coming up with new technology and low price will be the threat to the company For example: Apple invented PC and was market leader but since IBM and other competitors enterd the market, Apple was effected significantly - Applying cost leading strategy, most of customer base is in low segment thus company is not focusing on high customer segment - There is not dedicated department on professional designing, the Business Units of the company has to by themselves that cost lots of resources Moreover, the market for industrial designing is very potential meanwhile the company still can not ultilize - Management is facing difficulty in accounting effectiency of Business units - Human resource management has difficulty in recruiment and motivation - When the market becomes mature, the cost for changing product line will affect to company profit - Marketing activities applied in streamline area that does not effect the whole market - Big market share but low price will limit the company profit which reflects different scale of company size - Low profit means low invesment on R&D then affects on company brand awareness Capstone project – Group – GEMBAE01 65 ... Lạch Tray, Hai Phong City Tel +84(31) 3733978 Fax +84(31) 3733979 Capstone project – Group – GEMBAE01 36 2.1.1.2 Mision “Trust in tomorrow” NTC are a Vietnamese company involved in information-communication... customer’s success is ours”, we have won the trust of our customers Capstone project – Group – GEMBAE01 37 2.1.1.3 Organization structure Building Building Solution Solution Center Center (BSC)... Corporate Division Division (CoD) (CoD) Branch Branch Office Office Capstone project – Group – GEMBAE01 38 2.1.2 Products and service 2.1.2.1 Building Solutions As a result of the development of