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

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGIES FOR JOINTSTOCK STEEL STRUCTURE PRODUCTION COMPANY - VNECO.SSM DURING THE PERIOD OF 2010-2020 i Table of Contents List of Abbreviation .v List of Tables vi ACKNOWLEDGEMENT ix INTRODUCTION x CHAPTER 1: FUNDAMENTAL THEORETICAL BASE OF THE RESEARCH 1.1 Concept and classification of business strategy .1 1.1.1 Concept of business strategy 1.1.2 Roles of business strategy 1.1.3 Basic features of business strategy .3 1.2 Process for developing a business strategy 1.2.1 Mission or purpose of company 1.2.2 Analysis of internal and external environment 1.2.2.1 1.2.2.2 Analysis of external environment factors Analysis of internal environment 1.2.3 Matrix development for choosing business strategy 12 1.2.3.1 1.2.3.2 1.2.3.3 1.2.3.4 External factor matrix 12 Internal factor matrix 12 Matrix of competition images 13 SWOT matrix .14 1.2.4 Selecting business strategy .17 1.2.5 Organization and Implementation 18 1.2.6 Evaluating the effectiveness of strategy 19 Conclusion of Chapter I .20 CHAPTER II: CURRENT SITUATION OF THE STEEL STRUCTURE MANUFACTURE JOINT STOCK COMPANY (VNECO.SSM) .21 2.1 Overall introduction of VNECO.SSM 21 2.1.1 Establishment and development of VNECO.SSM 21 2.1.2 Organizational structure of the Company 22 ii 2.1.3 Main business areas: 23 2.1.4 Introduction of Company products 23 2.2 Report on business activities in 2006, 2007, 2008 and September 2009 .24 2.3 An analysis of VNECO.SSM business situation 31 2.3.1 External environment analysis 32 2.3.1.1 Macro environment analysis 32 2.3.1.2 Industry analysis 34 2.3.2 Analysis of internal environment .42 2.3.2.1 Resources 42 2.3.2.2 Strengths .46 2.3.2.3 Weaknesses 47 2.3.2.4 Competition in the marketplace 49 2.3.3 Matrix for strategy selection 49 2.3.3.1 Matrix of external-internal factors 49 2.3.3.2 Matrix BCG 53 2.3.3.3 Matrix SWOT .57 Summary of Chapter II 62 CHAPTER III: BUILDING BUSINESS STRATEGY AND IMPLEMENTING SOLUTIONS FOR VNECO.SSM IN THE PERIOD OF 2010-2015 63 3.1 Goals of VNECO.SSM until 2015 63 3.1.1 Bases for setting up and objectives 63 3.1.2 Vision, mission and core value 65 3.1.3 Objectives and Goals: .66 3.2 VNECO.SSM 2010 – 2015 Business Strategies 67 3.2.2 Selected 2010-2015 business strategy for VNECO.SSM 71 3.2.2.1 Company- level Business strategy .72 3.2.2.2 Sub- strategies: .72 3.3 Solutions to implement the company’s business strategies for the period of 2010-2015 72 3.3.1 Solutions related to production management 72 3.3.2 Solutions related to Marketing management 77 iii 3.3.3 Solutions related to human resource management 79 3.3.4 Solutions related to finance management 81 3.4 Recommendations to the higher authorities and the state 82 3.4.1 Recommendations to higher management agency, Vietnam General Joint-Stock Electricity and Construction Company 82 3.4.2 Recommendations to the Government and the State management agencies 83 Conclusion of chapter III 84 CONCLUSION 85 REFERENCES .87 APPENDIX A 88 APPENDIX B 90 iv List of Abbreviation VNECO.SSM Steel Structure Manufacture Joint Stock Company TSD6 National Power Master Plan in 2006-2015 considering to 2025 (Power Master Plan VI) EVN Electricity of Vietnam Huyndai Huyndai-Dong Anh steel tower manufacture company limited PCC1 PCC4 Soc Son JSC Power Construction Joint Stock Company No Power Construction Installation Limited Company No Soc Son Mechanic and Steel Structures Joint Stock Company BTS Telecommunication antenna mast v List of Tables Table 1.1: External factor matrix -12 Table 1.2: Internal factor matrix 13 Table 1.3: Matrix of competition image 14 Table 1.4 SWOT matrix table -15 Table 1.5 Selection of strategy 16 Table 2.1: Results of business activities in 2006, 2007, 2008 and September 2009 - 24 Table 2.2: Targets of business plan performance 27 Table 2.3: Table of proportion of each product/service in VNECO.SSM’s revenue of the years of 2006, 2007, 2008 and first months of 2009 30 Table 2.4: Competitors’ Comparison Table -37 Table 2.5: Forecasting production capacity and steel consumption ability in the phase of 2008 - 2015 - 39 Table 2.6: List of major material suppliers for VNECO.SSM -40 Table 2.7: Targets of account payables in 2006, 2007 and 2008 -43 Table 2.8: Targets of capital structure in 2006, 2007 and 2008 44 Table 2.9: Targets of performance ratios in 2006, 2007 and 2008 -45 Table 2.10: Targets of profitability in 2006, 2007 and 2008 45 Table 2.11: The matrix of external factors for VNECO.SSM (EFE) -49 Table 2.12: Matrix of internal factors of VNECO.SSM (IFE) -51 Table 3.1: Power consumption in the years 2005-2009 63 Table 3.2: Total electricity demand 2010-2015 -64 vi Table 3.3: Total power capacity during 2010-2015 -64 Table 3.4: Expanding the transmission and distribution system during 2006-200865 Table 3.5: Grid transmission and distribution development plan during 2010-2015 - 65 Table 3.6: SWOT matrix of VNECO.SSM 67 Table 3.7: Comparison of feasible strategies 69 Table 3.8: GREAT model for selecting strategy 70 Table 3.9: Galvanized steel pole production costs 73 Table 3.10 Costs of producing steel poles after reducing costs 76 vii List of Figures List of Figures viii Figuer 1.1: A business strategyFigre 1.1 Business strategy Figure 1.2 Business strategy planning process .4 Figure 1.3 Macro environment .6 Figure 1.4 Model of five forces Figures 2.1 Management structure of VNECO.SSM 22 Figures 2.2: VNECO.SSM Revenue Structure 2008 24 Figure 2.3: Key VNECO.SSM financial indicators 2006, 2007, 2008 and quarters of 2009 25 Figure 2.4: Expense structure per revenue 2008 26 Figure 2.5: Revenue performance in 2006, 2007, 2008 and months of 2009 28 Figure 2.6: Chart of product/service in accordance with revenue of the years 2006, 2007, 2008 and first months of 2009 30 Figure 2.7: Matrix EFE - IFE 52 Figure 3.1 Diagram of making zinc-coated steel poles 75 Figure 3.2 Process of steel poles manufacturing 75 Figure 3.3 Process of coating steel tower 75 viii ACKNOWLEDGEMENT To complete the MBA program and this assignment, we have received valuable support and guidance from many people who without them, we cannot achieve the result as today Firstly, we would like to express our sincere thanks to our lecturers of Ha Noi National University and University of Griggs, the United States Thanks to their enthusiasm and dedication in teaching, we have gained useful knowledge for the current work We also would like to send our deep thanks to all members of the Global Advanced program, including the program directors, academic department, the program management etc With the assistance of the program, we have chance to study in the most favorable learning environment The program has enabled us to complete our jobs at and at the same time, ensure the learning quality Last but not least, let our thanks go to our families whose encouragement has helped us complete the course without having any difficulties We have tried to complete the assignment in the best way using our best knowledge and ability However, the shortcomings are inevitable We wish to receive valuable comments from teachers and colleagues Group members ix INTRODUCTION General context, significance and necessity of the research project The Socio-economic Development Strategy 2001-2010 of Vietnam has identified the overall goals of bringing the country out of the underdeveloped status, improve the material and spiritual life of the people, creating the foundation for Vietnam to basically become an industrialized country towards modernization by 2020 And, at the 10th Conference of the Party Central Committee that summarized the implementation of the socio-economic development strategy in 10 years (20012010) and developed the socio-economic development strategy for the next 10 years (2011-2020), the Party General Secretary Nong Duc Manh affirmed the direction, overall objectives of the socio-economic development strategy during 2011-2020 which is to continue to promote industrialization and modernization and sustainable development The country will have a political, social stability, democracy and consensus The people’s material and spiritual lives will continuously be improved Its independent sovereignty, unity and territorial integrity is maintained etc In this context, the mechanical sector has confirmed itself as one of the key industries which plays an important role in economic development and strengthens security and defense of the country The Decision of the Prime Minister on the approval of the mechanical development strategy Vietnam in 2010 and vision to 2020 (Decision No 186/2002/QD-TTg on December 26, 2002) stated: "Focusing on developing key mechanical products to exploit and promote the best potential (natural and human resources) to meet the basic requirements of the country's development Mechanical construction and electrical equipment are two out of key mechanical products that are prioritized for developing in the strategy Thereby, products meet the basic needs of the national economy are those mainly provided for the power sector-a key industry of Vietnam Therefore, our group decided to study and research mechanical construction and electrical equipment We chose the topic "Developing the Business Strategy by VNECO.SSM from 2010 to 2015” VNECO.SSM has provided construction and x  Diversification: VNECO.SSM currently is operating on three main business areas: steel structure design and production, zinc galvanization and construction and installation activities To promote its image and trademark, for each business area, VNECO.SSM will diversify its types of products and services according to the needs of customers It is hoped that the VNECO.SSM diversification plus manufacturing quality enhancement will help the company to further promote its prestigious trademark in the Central region market in all of its fields of operation Marketing Policies  Customer Care Since its establishment, designing, manufacturing and processing products to serve the transmission line, transformer stations of 500KV, 220KV, 120KV are VNECO.SSM traditional business areas As a main contractor together with its traditional clients (such as the Electricity of Vietnam Corporation, the Project Management Boards of Electrical Grid of the North, Central, South and some other related agencies etc.), VNECO.SSM has always used all resources optimally to serve clients’ needs, to ensure the supply progress, product quality and high economic efficiency In addition, VNECO.SSM always tries to strengthen its relationships with companies operating in the industrial construction, infrastructure construction, transportation, irrigation, medium and large hydroelectric plant, and infrastructure projects investors These actors are the ones with direct demands for the mechanical steel-structured products and zinc galvanization services of VNECO.SSM  Product development With its traditional strength in the field of designing and manufacturing steel structures and galvanizing products, VNECO.SSM will continuously develop and expand its market share in these areas Besides focusing on perfecting the quality of existing products and creating its prestige on the market, VNECO.SSM has invested a lot in research to apply new techniques to produce new products with more optimized quality for each type of products and services 79 VNECO.SSM focuses on diversification of products and marketing programs to make its products become typical for its business This is a strategy that VNECO.SSM has applied in recent years and in the future With long-term business strategy, VNECO.SSM does not only want to dominate the domestic market but also expands to the regional markets  Flexible pricing mechanism VNECO.SSM applies flexible price policies which change from time to time to minimize business risk and also to meet the needs of customers In addition, with reasonable payment methods, VNECO.SSM has built long-term relationships with and attracted a large number of customers to VNECO.SSM 3.3.3 Solutions related to human resource management In the present market economy and the strong fluctuation of business environment, all enterprises have to face with a lot of problems and pressure, in which human resource management is the vital factor to the existence and development of enterprises Recruitment and training To ensure a stable source of manpower for its development, VNECO.SSM has always put a lot of efforts into its recruitment to be able to select candidates with appropriate professional skills and qualifications to meet the current demand of the company as well as to prepare for the future Also VNECO.SSM needs to reserve manpower to compensate for the fluctuation of human resources and meet the needs of production and business expansion, particularly to improve the quality of human resources through training and retraining Human resource retention policies If recruitment means selecting candidates with relevant professional qualifications, and training and development is aimed to equip them with the skills needed to serve the company’s current and future needs, human resource retention policies will help stabilize the human resources to meet production and business demands This can be done via both financial and non-financial methods, such as 80 income distribution, reward and discipline policies and satisfaction with the work environment As mentioned above, per capita income in VNECO.SSM for the year 2008 was 2.5 million VND, which was lower than that in its competitors in the same scale and industry This has led to brain drain due to the competitors’ human resource attraction strategies On the other hand, income distribution has not been really fair, reward and discipline regime has not been adequate or not to the right audience, which has not been able to motivate and encourage employees to maximize their full capacity Therefore, VNECO.SSM needs to improve the compensation for its workers in the following direction: Improving income for labourers: As the most concerning issue of labourers problem is income, VNECO.SSM needs to have reasonable income distribution regime including two aspects below: - The income of workers have to be increased gradually every year and make sure to compensate the level of slippages in prices and the rate of inflation On the other hand, the income offerred/paid by VNECO.SSM to its labourers has to be greater than or equal to the average income offered/paid to labourers by its competitors in the same scale and industry to avoid brain drain and attract talents from the rivals - Income distribution regulations have to be developed based on performance of labourers, job titles, job responsibility etc to ensure fairness Developing reasonable commendations, reward and discipline policies: These policies include rewards for individuals and collectives that have reached high achievement and contributed initiatives to benefit VNECO.SSM At the same time, there need to have disciplines to prevent harmful activities to VNECO.SSM Building good working environment: Work environment becomes more and more important and relates directly to the workers’ productivity, quality and performance Following measures are recommended for a working environment to be developed: 81 Building friendly working atmosphere between leaders and staff, between departments and between employees to create good conditions in which people feel happy to work Provide working facilities and infrastructure such as office buildings, machinery, equipment, furniture, laborer protection etc to create favorable conditions for the working efficiency Create clean, safe and reasonable workspace to help workers to improve their work efficiency 3.3.4 Solutions related to finance management Financial resource analysis has shown that despite limited financial resources, VNECO.SSM has built a secure financial efficient structure of low financial risks This is a core element to help VNECO.SSM overcome the most difficult period of financial crisis and economic downturn, maintain growth through the years However, the company needs to apply a number of measures to improve its financial capability as follows: - Reducing the value of stored materials: The company needs to forecast the production needs and the fluctuation of raw materials price on the market, especially the those of imported raw materials to ensure reasonable storage plan This is good for both sale and avoidance of too much dead capital For products which cannot be sold anymore, the comparny needs to renovate them for sale or liquidation to reduce inventory cost - Improving the process of sale, delivery and recovery of debts: To faster the cash flow cycles, the company needs to be more efficient in stages of quality verification, delivery, preparing payment documents and recovery of debts -Capital Restructuring: The Company’s loans making up too large (on average more than 70%) of the total capital of VNECO.SSM, in which short-term capital accounts for a large proportion will decrease business efficiency due to interest costs VNECO.SSM needs to determine a reasonable working capital loan In fact, the issue here is not to borrow more or less but whether it is reasonable or 82 not If we use the loans effectively, capital recovery time is quick and we can visualize a plan for paying the loan then the loan borrowing is the financial leverage to increase revenue and profits for VNECO.SSM Conversely, if the loan is not used effectively, the capital recovery time is long then this will be a interest rate burden for VNECO.SSM accompanied with the extra pressure of due-date loans - Increasing charter capital: It is necessary to increase the charter capital or issue additional shares to better the financial structure, decrease loans, reduce banking interest rates, increase profits and lessen risks in business Increasing charter capital will help the company to have additional capital to expand factories, improve technological lines to make it suitable to its long-term development strategy 3.4 Recommendations to the higher authorities and the state Steel structure production and galvanized processing is an important field contributing to the development of the grid system, as well as the mechanical industry in Vietnam Thus it is deserved great attention for development To promote the development of this field, it is very necessary to have support from the higher authorities and state through the basic policies as follows: 3.4.1 Recommendations to higher management agency, Vietnam General Joint-Stock Electricity and Construction Company Provide additional registered capital for VNECO.SSM to strengthen its financial capability and expand production scale, improve production lines, product quality, increase sales, profitability, capital restructuring in order to participate in large bids Support on procedures for contract implementation guarantee, deposit guarantee and warranty when VNECO.SSM signs contracts with Electricity of Vietnam’s subsidiaries and other units Provide consistent product quality standards for steel structure and galvanized products because the current regulations are very asynchronous and causing difficult for the design and production 83 3.4.2 Recommendations to the Government and the State management agencies Propose the Government through consulates and embassy to support commercial promotion in electric system development field and telecommunication environment as well as to be bridge between foreign enterprises and local enterprises so that they can export products abroad because the Government has not yet been commercial promotion bridge in steel manufacturing field and telecommunication system like textile and aquiculture field Promote the developing of the supplementary industries for the production of structural steel products, steel poles and galvanize processing Currently the material must still be mainly imported Form solutions to support the market via preferential policies on capital and tax, protection of domestic producers; loans at preferential interest rates; low export taxes for imported raw materials and prolong the current free income tax for enterprises 84 Conclusion of chapter III Derived from the VNECO.SSM’s visions and market situation, the actual situation of VNECO.SSM and matrix selection strategy, our group compared possible strategies that can be used by using the Great model to choose the optimal strategy for VNECO.SSM during 2010-2015 The selected strategy is the cost leadership At the same time, the group also offered solutions for production management, marketing management, human resources management and financial management to overcome the shortcomings and promote the advantages in order to implement the strategy successfully The key point in building an effective VNECO.SSM is only to realize that success can be achieved not only by changing solutions in manufacturing, marketing management, human resources management, financial management etc but also how to combine those strategies to achieve the common goals of VNECO.SSM In the context of the global economic environment with many changes, building a long-term strategy is vital to the existence and development of VNECO.SSM However, we believe that any strategy should be flexible enough to react to the external changes Depending on the fluctuation of the external environment and internal potential of the company, Board of Directors of VNECO.SSM in each period should make flexibility adjustment to be in line with the trend of social development while completing the set goals and visions All changes are difficult However, we believe VNECO.SSM management and employees will overcome all difficulties and implement the business strategy successfully and to make VNECO.SSM the leader in the field of manufacturing steel and galvanized steel structures in Vietnam 85 CONCLUSION Contribution of the research The research not only points out appropriate scientific arguments but also has made practical contribution to the company in building its business strategy Scientific meaning: In the market economy, business strategy is decisive to the success or failure of a company, business strategy is very important for all kinds of companies Companies must have a good and effective business strategy in order to exist and develop There are many approaches to build a business strategy for a company The scientific meaning of the research lies in its synthesis of theories from various sources to develop the most basic, straightforward and easy to use process for building a business plan Practical Implications: Starting from the importance of building a business strategy that means "existence" for companies, state-owned enterprises (joint-stock companies where state owns over 51% of share) not pay enough attention to business strategy development Therefore, the research contributes to affirm the importance of building business strategy, providing companies with an approach to a method of developing business strategies for companies, other mechanical companies can apply or learn to build business strategies for their business In the current severe market economy, building a successful business strategy is a difficult and complex There are many approaches to build business strategies, but to build an appropriate and effective business strategy is not easy The research has introduced an approach for setting up the procedure for building an appropriate business strategy in line with the current situation in Vietnam It is not only applied in the steel structure joint stock manufacturing company but also applicable for many companies The fundamentals of building a business strategy include: Identification of goals of the enterprise; Assessment of environmental factors that can affect the company, finding opportunities and threats to the company 86 business activities associated with evaluating the strengths and weaknesses of the company, thereby setting the matrix for selecting the strategy and forming a complete business strategy For VNECO.SSM, this research is valuable to help the company Board of Directors in planning the business strategy for VNECO.SSM, especially in the strengthening and improving its image through improving products quality and sale and after sales service to bring effectiveness for VNECO.SSM Limitations of research and orientations for follow up research - The research conclusions are drawn on the basis of the actual situation in VNECO.SSM, therefore, it requires other research to apply these solutions and conclusions in other companies - Despite great efforts in researching materials, the theory learned, there is still limitation in understanding in depth the operation of VNECO.SSM by the group due to the condition of working and studying at the same time Thanks to the committed instructions of dedicated teachers, as well as the enthusiastic assistance of the peer students in MBA program, we have managed to complete the assignment We look forward and will try to continue research and develop the research deeper both in terms of theory and understanding the actual operation of VNECO.SSM with a modest wish of contributing our small effort to the success and sustainability of VNECO.SSM in a competitive integration environment in the coming time 87 REFERENCES  Prof., Ma Le The Gioi, Ma Nguyen Thanh Liem, Ma Tran Huu Hai – Strategic Management- Statistics Publisher 2007  Michael E Porter (1980) Competitive Strategy, Free Press, New York, 1980  “Effective Business Strategy”; Author: Harvard University, Ho Chi Minh General Publishing House;  Competitive Advantage: Creating and Sustainabling Superior Perfomance, New York: Freepress  Marketing Management book, Strategy Management book, Accounting Management book, Financial accounting book, Human resource management book, Activity management book – University of Griggs (U.S)  Strategy and business strategy, MS Nguyen Thi Lien Diep (2008), Statistic publisher  “What is Marketing” - Kolter, Philip (1998), Management article  “Basic marketing” - Kolter, Philip (1995), Statistic publisher  “Marketing management” - Porter, Michael (1997) Statistic publisher  “Marketing management” - Kolter, Philip (2005) Statistic publisher  “ Management” MS Nguyen Thanh Hoi (2001) Statistic publisher  Harvard business handbook (2005), Effective business strategy, Ho Chi Minh General Publisher  National Power Master Plan in 2006-2015 considering to 2025 (Power Master Plan VI)  EVN Business report 2005, 2006, 2007, 2008, 2009  Financial statements audited 2006, 2007, 2008 and Internal report Sep.2009 of Vneco.SSM  www.vietnamnetjobs.com.vn  http://www.gso.gov.vn 88 89 APPENDIX A Interviewing the VNECO.SSMs’ managers Method: Review the business trategy from the company Identify good points and bad points of the company, evaluate production process Time: November – December 2009 Place: by telephone Interviewee: Mr Manager Mr Foreman of zinc-plated shop Questionnaire: Mr Ho Thai Hoa – Chairman and Director Question 1: What is the company’s business strategy in the coming time? Answer: Comparing with other competitors, VNECO.SSM participate in the market lately with small production scale, limited financial capacity Thus, our company’s strategy in the coming time is to strengthen the internal capacity, change organization, manage production toward the goal “Market leader in cost” Question 2: Do the company develop new product in the future? Answer: The main product of the company is steel tower, BTS tower for communication which occupy 98% of total turnover However both products are simple technical characteristic, simple production and easy imitate so that more and more companies participate in this market Therefore we plan to develop products which are complex technical characteristic, hard imitate such as hydro mechanical equipment for hydroelectric projects and spare parts for auto industry Question 3: What is the company’s competitive advantage? Answer: We don’t choose direct completive method but concentrate on strengthen strong points of our company such as: good location, skillful and 90 experience human resource, active management board, modern equipment to minimize cost of product and create competitive advantage by low cost Question 4: What is company’s plan for input materials to minimize the affect of price fluctuation and exchange rate? Answer: Companies which have to import input materials shall certainly suffer the fluctuation of price and exchange rate Accordingly, VNECO.SSM solution is to establish trusted traditional suppliers, create financial plan close to real production, choose time of buying input materials, quantity, price, suitable materials and predict the change of material price through economic and political situation, exchange rate etc., Mr Phan Anh Phi - Zinc galvanize factory manager Question 1: Which galvanizing technology is used in your factory? Answer: At present, we use German galvanizing chain with capacity of 20.000 ton/year Question 2: How is BTS tower’s technical characteristics different from steel tower? Answer: Basically, these two products’ characteristics are almost the same Hence, we can use same production chain, workers to diversify products, extend market, increase competitive ability and turnover Question3: Which production phase does your company use to save production cost? Answer: I’m sorry that it is strategic secret of the company so that I’m not allow to disclose 91 APPENDIX B Interview customers utilise products and services from Company Method:: To evaluate product quality and services during sale and after sale period Time: November – December 2009 Place: By telephone Interviewee: Mr Chu Van Tien, Head of quality management department, National Power Transmission Cooparation Mr Hoang Anh Dung, Vice manager of energy consultant center, Institute of Energy Questionnaire: Which supplier is chosen to supply steel tower for high voltage transmission line (i.e.: 110kV, 220kV, 500kV) ? Mr Chu Van Tien: There are many suppliers supplying steel tower for transmission line project employed by National Power Project Corporation and other subsidiaries Among them, VNECO.SSM is a unit which is used to be chosen in direct purchasing or bidding procedure to supply steel tower for high voltage transmission line (110KV and 220KV) thank to its advantage in competitive price comparing with other units How does that supplier’s steel tower meet requirement of product quality, service quality and after service? Mr Chu Van Tien: Its specific characteristic is to construct outdoor power transmission line so that the most important criteria is to guarantee the product quality VNECO.SSM’s products always satisfy quality of good and after service What are strong points and weak points of this company? Mr Chu Van Tien: The strong point of VNECO.SSM is good location, skillful and flexible management board, skilled workers, good production management etc., The 92 strong point of VNECO.SSM is small production scale, limited financial capacity etc., What is VNECO.SSM’s position comparing with other competitors (Hyundai, PCC1, Soc Son, PCC4)? Mr Hoang Anh Dung: Hyundai Đong Anh has advantage of big and modern production chain (40.000 ton/year), good production organization, skillful human resource and good trade mark However, since the company organization was changed from Korean partner to PCC1, the management board and organization are changed accordingly - PCC1 has good management board, skillful technicians and workers but not really good after service PCC1 is main share holder of Hyundai Dong Anh so that both companies can not participate in tenders together - Soc Son has good financial capacity, high turnover, good and strong relationship with customer However, the company needs to improve the management skill to participate in international projects - PCC4 has skillful workers, good financial capacity and good relationship with customer However, the company needs to improve the management skill and its production chain In general, VNECO.SSM together with Soc Son and PCC4 stay in third place following Hyundai Dong Anh and PCC1 93 ... hội đồngDepartment quản trị Giám đốc Ban kiểm sốt Department of Phó giám đốc-KD Administration and Phó giám đốc-KT Organization Tổ Cơof điện Department Finance Phịng Kinh doanh and Accounting... khí in toỏn Phũng T TàiCơ chính-Kế Phịng Kinh doanh Phân xưởng Đóng Mechanical-electricity giám đốc-KT kiện Phòng Kỹ thuật group hội đồng quản Tổ Cơ điện trị PhịngPhân TC - LĐ -Hành xưởng Mạchính... TC - LĐ -Hành xưởng Mạchính kẽm Figures 2.1 Management structure of VNECO.SSM Giám đốc Phòng Kinh doanh Đội xây lắp đường dây & Phòng Tài trạm chính-Kế tốn Phịng Kỹ thuật Ban kiểm sốt Phân xưởng