Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (34)

TABLE OF CONTENTS ACKNOWLEDGEMENT PREFACE CHAPTER 1: THEORETICAL FOUNDATION ABOUT COMPETITION AND COMPETITIVE STRATEGY 1.1 Concepts about competition and competitive strategy 1.1.1 Concepts about competition 1.1.2 Concepts about competitive strategy 1.2 Process of setting up competitive strategy 9 10 11 1.2.1 Objectives of competitive strategy 12 1.2.2 Analysis of competitive strategy 12 1.2.2.1 External environment factor analysis 12 1.2.2.2 Internal environment factor analysis 13 1.2.3 Selection of competitive strategy 14 1.2.3.1 The foundation of selecting strategy 14 1.2.3.2 Evaluation methods for strategic projects 14 1.3 Approaches and tools of competitive strategy analysis 15 1.3.1 Methods analyzing external environment 15 1.3.2 M.Porter’s five force model 16 1.3.3 Methods analyzing competitive capacity of business 18 1.3.4 SWOT analysis model 20 1.3.4.1 The role of SWOT analysis in setting up strategy 20 1.3.4.2 SWOT analysis 21 1.3.5 Internal – External factor matrix (IE) 1.4 The imperativeness to set up competitive strategy in domestic market of Dap Cau Garment Joint Stock Company 1.4.1 The garment competitiveness in domestic market 1.4.2 The imperativeness to set up competitive strategy in domestic market of Dap Cau Garment Joint Stock Company 22 23 23 24 CHAPTER II: ANALYSIS OF COMPETITIVE CAPACITY OF DAP CAU GARMENT JOINT STOCK COMPANY IN DOMESTIC MARKET 2.1 General overview about Dap Cau Garment Joint Stock Company 26 2.1.1 The foundation and development’s history of the company 26 2.1.2 Business sectors 27 2.1.3 Organization structure 27 2.1.4 Market and products 28 2.1.4.1 Products 28 2.1.4.2 Market 29 1.1.5 The result of production and business operations in period of 20062010 2.2 Analysis of competitiveness in garment industry in Vietnam’s market 2.2.1 Micro-environment 31 32 32 2.2.1.1 Political and law environment 34 2.2.1.2 Economic environment 34 2.2.1.3 Socio-cultural environment 35 2.2.1.4 Technological environment 36 2.2.1.5 Natural environment 37 2.2.2 Analysis of five forces with respect to garment industry 38 2.2.2.1 Buyers 38 2.2.2.2 Suppliers 39 2.2.2.3 Industry competitors 40 2.2.2.4 Potential entrants 43 2.2.2.5 Substitutes 43 2.3 Competitive capacity of Dap Cau Garment Joint Stock Company in domestic market 44 2.3.1 Marketing 44 2.3.2 Production 47 2.3.3 Research and Development 48 2.3.4 Human resources 48 2.3.5 Manager system 52 2.3.6 Financial capacity 53 2.4 SWOT analysis of Dap Cau Garment Joint Stock Company in domestic market 57 2.4.1 Strengths and weaknesses 57 2.4.2 Opportunities and threats 58 2.4.3 SWOT matrix and possible strategies 58 2.5 Internal factor environment (IFE) and External factor environment (EFE) 60 2.5.1 Internal factor environment 60 2.5.2 External factor environment 60 2.5.3 Internal – External environment (IE) 61 2.6 Strategic projects in possibility CHAPTER III: STRATEGIC PROJECTS AND SOLUTIONS IMPLEMENTING THE PROJECTS IN PERIOD OF 2011-2015 3.1 Strategic projects for Dap Cau Garment Joint Stock Company 3.1.1 Analysis of strategic projects 62 FOR 63 63 3.1.1.1 Senior market oriented projects 63 3.1.1.2 Product diversification projects 63 3.1.1.3 Differentiation projects 64 3.2 Selection of strategic projects 64 3.3 Solutions for implementing strategic projects 66 3.3.1 Improving, expanding distribution system 66 3.3.2 Establishing market research staff 66 3.3.3 Establishing customer care service system 67 3.3.4 Promoting marketing activities 67 3.3.5 Promoting activity chain 68 3.3.6 Improving product quality 69 CONCLUSION 70 REFERENCES 71 APPENDIX ACKNOWLEDGEMENT To finish the Global Advanced Master of Business Administration Program and write this essay, we have received the instruction and contribution of many people And we will not gain achievement without them First of all, we thank teachers in Hanoi National University and Griggs University, The United State of America for their enthusiasm and dedication in teaching; as a result, we have achieved useful knowledge for our current work We also express our gratitude to board of directors of departments of Dap Cau Garment Joint Stock Company (Bac Ninh) providing us information and data base to complete this capstone project We are thankful to relatives in our families With their attention and encouragement, we finish the course without any difficulties and barriers We guarantee that this project was programmed by us with gained knowledge, hand on experience and collected information without copying from other projects We complete the essay as good as possible with our knowledge and capacity Nevertheless, we cannot avoid mistakes, conclusion has not been accurate and optimal; we hope to receive contribution of all concerned ones, especially teachers in Global Advanced Master of Business Administration Program and Directorate of Dap Cau Garment Joint Stock Company Thanks and Best regard! Hanoi, 15 February, 2011 Group – Class GaMBA01, M0809 PREFACE Vietnam is well known as a successful story in export growing strategy after the reformation in the last of 80s decade of the last century In which, similar to other nations in export oriented industrialization project, garment and textile is selected as one of the initial one of the project With the basic comparison advantages, garment businesses of Vietnam have gradually have market share and marked certain position in international garment and textile market Though the main gained advantages come from processing work, the achievements of Vietnam garment and textile industry in international arena and the role of the industry with respect to national economy are significant In 2010, Vietnam is voted as one of the five nations having the biggest garment export turnover in the world at the first time With the export turnover of over 11 billion USD, increasing 23% in comparison with 2009, garment surpasses crude oil to become the field having the biggest export turnover in Vietnam Besides, garment industry also marks the point as creating more than 2,5 million livelihoods for labors which contributed significantly to solving social problems of the nation In spite of becoming one of world-class garment industries in the world, Vietnam’s garment industry has not made advantages in domestic market with more than 86 people against the cheap price products made in China and deluxe products made in Thailand and some foreign fashion firms The mistakes in export concentrated policy while ignoring domestic market have been proved in the past economic crisis and since import countries apply technical barriers with respect to some sensitive products including garment products At that time, Vietnam’s businesses cannot promote the basic competitive advantages as cheap price labor As a result, there are quite many garment businesses having been went out of business or changed the business Acknowledge of it, some companies pay attention to domestic market together with export markets Dap Cau Garment Joint Stock Company as a state – governed Company under Viet Nam Textile – Garment Company capitalized with 40 years of experience is having success in export market and has remarkable contribution to creating livelihood and foreign exchange for Vietnam Furthermore, the company also realizes potential and the importance of domestic market and spends noticeable resources for research and development of domestic market over the past years Nevertheless, the position, trademark and penetration of the company in domestic market have not met the given objectives Boards of directors, directorate of the company realize this problem and they always find out all ways, set up efficient strategy for domestic market development And domestic market development will create the safe development for the company as the balance between export market and domestic market In a further way, domestic market development will make the company have basic foundation for production and business operations With gained knowledge in Global Advanced Master of Business Administration Program of Griggs University, the instruction of lecturers in program and contribution of members in class, our group sees the opportunity to have suitable strategy in developing domestic market of the company Therefore, we select the topic in line with the theme: “Improving competitive capacity of Dap Cau Garment Joint Stock Company in domestic market in period of 2011 – 2015” Board of directors of the company is particularly interested in this topic as it contributes the important role in the development of the company in the future Research objective: to introduce competitive strategy, develop penetration of Dap Cau Garment Joint Stock Company in domestic market, create the balance of turnover and earnings between domestic and export market as well as create the proactiveness in business The introduced strategy is achievable, suitable with the reality and sources of the company while maintaining export market Research scale: The topic focuses on issues relating to competitive strategy of Dap Cau Garment Joint Stock Company in domestic market in period of 2011 - 2015 Research subject: Internal and external factors of the company are important ones needed considering when implementing the project especially factors relate to competitive strategy of the company as competitive capacity of Dap Cau garment and external environment factors affect to competitive strategy of the company Research method: Combine the reality and gained knowledge, we use strategy analysis methods studied in the program including: SWOT analysis, M Porter’s five forces, internal – external environment factor matrix basing on collected data base from primary and secondary information sources This capstone project includes three chapters: Chapter I: Theoretical foundation about competition and competitive strategy Chapter II: Analysis of competitive capacity of Dap Cau Garment Joint Stock Company in domestic market Chapter III: Strategic projects and solutions for implementing, conclusion CHAPTER 1: THEORETICAL FOUNDATION ABOUT COMPETITION AND COMPETITIVE STRATEGY 1.1 Concept about competition and competitive strategy 1.1.1 Concept about competition The term of “competition” is widely used at present in many areas It is concerned by many objects from many different viewpoints and scale Depending on the area, scale and research, the concept of competition is understood according to different ways In general, competition is the vying between two or among many individuals in the same environment to catch the advantages Under the economic view, competition exists in the process of formation and development of production and goods exchanging And competition is presented in all economic institutions Nevertheless, competition exists in the process of foundation and development of production and goods exchanging Competition exists in all economic institutions but it has the most present in market economy since competition is connected closely to market rules as: value rule, supplying and demand Competition is in all relationship among objects in the market economy: business with business, seller and buyer In which, the competition between business and business is particularly violent and interested There are some concepts about competition between business and business as following: i) Competition is the attempt about service product quality of business in order to make it better than other’s; ii) Competition is to mark position in market, create two-way relationship between business and customer; as a result, customers will believe in and use products of business; iii) Competition is the mutual acquisition among competitors to hold the market, customers From above viewpoints, competition of business can be understood in the most general way as: competition is the use of sources to be able to hold favorable conditions to gain objectives Competition has extremely important role and is one of the strong motivation promoting the production development It forces the manufacturers be active, horsetrading to improve skillfulness, improve technique, apply scientific technology, and complete the organization to increase labor productivity and economic efficiency If business lacks of competition or has aspect of monopoly, they are underdeveloped Apart from the positive aspect, competition also has negative aspects in unfair competition with actions violating ethical or law (smuggling, dodging the tax) or discrimination actions, damaging ecosystem In current violent competition environment, if business is satisfied with current position in market, they will be quickly pushed into out of date 1.1.2 Concept about competitive strategy According to BCG – Boston Consulting Group, strategies determine the allocation of available sources with the aims of changing competitive balance and moving advantages toward the business According to Michael Porter, the author of “Competitive strategy” said that: “The strategy to face up with competition is the combination of expected targets and the means which business needs to fund out to reach targets” (Competitive strategy, 1998) Therefore, the basic role of strategy is to define a direction, a way to reach predetermined objectives A competitive strategy plays particularly important role in long term development of business In fact, there are many businesses, especially the small and medium ones paying less attention to strategy, even they not find out a strategy by their own The most basic reason is that they have not awarded of the role of strategy The problem here is that, enterprise scales need to have strategy despite big, medium or small And we need to be sure that any organization and business having strategy since strategy helps to: 1) establish the long term orientation for business; 2) focus efforts of business in implementing missions to gain expected results; 3) determine the organization and actions orienting given objectives; and 4) set up the solid and harmony of organization The present of major strategy in organization is not the desire of having or not having a strategy; it mostly depends on the awareness of the role of strategy as well as knowledge about strategy science of managers There is a speech relating to the importance of strategy: “do the right things” has more important meaning than “do things right” But businesses can face up with failure even though they have obvious strategy The reason of it is the carelessness in operating or too complicated strategy cause difficulty in implementing and reduces the efficiency Therefore, strategy and operation efficiency are the two basic factors ensuring the success of a business 1.2 Process of setting up competitive strategy Basically, the process of setting up competitive strategy includes following steps: Mission and visions Targets Internal and external environment analysis Setting up strategies and selecting suitable one Chart 1: Process of setting up competitive strategy 1.2.1 Objectives of competitive strategy The term of strategy objective is used to refer criteria or specific result which business needs to have when implementing competitive strategies We can generally understand the term of strategy objective as the expectation of business in the future And indicators are usually in strategy as: earnings, sale turnover, penetration, the risks and renovation Normally, businesses divide objective into two types of long term and short term one Long term objective is the expectation for a quite long time The amount of year 10 With current potential, the company is easy to diversify products As the customers well know the brand name of the company, it is an advantage when they develop different products Project 3: Product differentiation by high quality product and good service With prestige in market about high quality product and investment to customer care service, the prestige and brand name of the company will be more and more remained 59 CHAPTER III: STRATEGIC PROJECTS AND SOLUTIONS FOR IMPLEMENTING THE PROJECTS IN PERIOD OF 2011-2015 3.1 Strategic projects for Dap Cau Garment Joint Stock Company Strategic target: It is neccessary to define that in period 2011 – 2015, export is still main market of the company However, to minimize risk due to much depence on export market, the company shoulld create innitation in operation And this should be started from demestic market building Based on reality and strategic analysis, set target for domestic market is as follow: Content Total revenue (billion VND) Demestic revenue (billion Year 2011 500 15 Year 2012 550 25 Year 2013 605 35 Year 2014 665 50 Year 2015 732 70 VND) Rate of domestic revenue / 3.0 4.55 5.79 7.52 9.56 total revenue (%) From the table, we can see set target for domestic market growth is minimum 40% per year This is a relative difficult target, and only can be achieved with suitable trategy and strategy implemeting solutions 3.1.1 Analysis of strategic projects 3.1.1.1 Senior market oriented projects Meaning: This strategy has important meaning in the context of ineffective information collection and popularization The consumers know about products of Dap Cau Garment in senior Jacket and pollluver for men and women And the major objects for deluxe products are from children to adults who have high income Therefore, making use of this, the company manufactured deluxe Jacket and pullover to penetrate market, reduce marketing cost with efficiency Weakness: Market of the company is being narrowed Revenue reduction is possible Since there are too many companies manufacturing deluxe products, not inclusing foreign deluxe products Furthermore, the investment cost for research and development is high Therefore, the risks of project is high 60 Strength: Making use of the available brand name in market with traditional products as Jacket, and senior polluver This project is considered as feasible since the market demand increases while customers are favored in deluxe products of the company 3.1.1.2 Product diversification projects Meaning: With current conditions, business will not face up with much difficulty in diversifying products Professional designer staff is foundation to believe that the introduced products can meet the requirements of customers On the other hands, the company is diversifying products, so it is not difficult to continue operations in human resources as well as finance Weakness: The capacity to collect information of business is not efficient while the feature of garment products as fashion style of customers change according to season, year or any trend If the information collection work does not take effect, the company faces up with difficulties in understanding psychology of customers to attract them Especially, if the company diversifies products, they have to invest in research and development And the cost for products introduction is quite high Strength: Meeting many requirements at the same time; the market space is wider and company will have more customers This project is feasible but not sustainable as in garment industry, product diversification is difficult to become good will 3.1.1.3 Differentiation projects Meaning: This project makes business have good will basing on brand name and product quality Weakness: Requirement of market research is high And the researcher staff is professional meanwhile this work of business has not been professional Furthermore, business has to always introduce fashionable products, models matching to personality and favor of customers Strength: Strategy will create competitive advantages for business in comparison with other competitors The trade mark value is the useful tool in reducing competitive pressure of other competitors 61 As a result, this project is highly appreciated as business has had advantages about product quality as well as professional human resources 3.2 Selection of strategic projects With three above strategic projects, we evaluated, compared to select the most suitable one The evaluation method: marking for criteria and criteria are divided into two groups: - Group1: Including the most important criteria with coefficient of 1,5 - Group 2: Including less important criteria with coefficient of Criteria are marked from 1-10, 10 as the most suitable, as the least suitable The selected project has the highest total score: STRATEGIC PROJECTS’ COMPARISON Evaluation criteria Coefficient PA Score PA PA 1.5 10 10 10 company Matching to core capacity of the 1.5 8 company Profitability 1.5 Controlling risks 1.5 Making use of strengths 1.5 7 Not disordering production line 1.5 8 The second criterion group Making the company not depend on 8 foreign order Being difficult to copying Matching to development trend of The first criterion group Matching to mission, vision, and development objective of the sector 62 Matching to development trend of market Total score Conclusion: 99.5 90 105.5 The selected project is project 3: Product differentiation by high quality and good services 3.3 Solutions for implementing strategic projects Basically, selected strategy matches to the production capacity of the company As a result, the company can make use of strengths, mitigate threats and create foundation to gradually avoid the dependence on order as well as create the balance between national market and export market Apart from maintaining and promoting strengths, the company should focus on researching market, establishing and expanding distribution network, product popularization 3.3.1 Improving, expanding distribution system This is the motivation making agencies effort more in attracting customers, increasing consumed products The expansion of agencies in some provinces in the North at first to big and potential market together with investigation of agencies in implement regulations prevents from applying prestige of the company to sell products of other firms With respect to market having few agencies or not having agency, the business needs to open more It not only creates favorable conditions for advertising, introducing products but also promotes the consuming capacity, expanding market To go up the agencies, the company applies many encouragement methods regarding as: higher interest level than other, increasing the monthly debt surplus, transporting goods to agencies Nevertheless, business should consider carefully the open of agencies as selecting prestigious, experienced and reliable one with awareness of existence and sustainable development of the company 3.3.2 Establishing market research staff Market expansion and development is the target set out for Dap Cau Garment Joint Stock Company to promote business activities At present, the company only penetrates and occupies foreign markets without occupying all national markets 63 Foreign experts have the same opinion when having comment about Vietnam market as Vietnam has large consuming rate Nevertheless, to occupy consuming markets nationwide, the company has to invest to equipments for a series of new products though they have not known the acceptance of customers Therefore, they need quite much capital with slow capital recovery The company can selects the methods of developing available products in current markets and new markets by means of improving model matching to favor and living standard of new customer class The company implements the market research comprehensively At present, market research does not take effect and some management departments design new model basing on capacity of the most consuming When designing, they also depend on their subjective opinions so the manufacturing products may not meet the requirements and demands of markets and customers Furthermore, the company also should establish official staff specializing on market research with professional and flexible to market With respect to each product type: setting up obvious production plan and consuming plan, finding out the demand and taste as well as trend of market to have right orientation 3.3.3 Establishing customer care service system Coordinating and fostering the close relationship between the company and agency system Furthermore, the company also collects and processes the two way information between agency and company to understand market situation, feedback of customers and manufacture suitable and in time products to customers with the best quality Besides, to push up the sale turnover, the company is interested in retail sellers as they directly communicate with customers and consumers It has important meaning to attract the interest and encourage this staff They will introduce, advertise and mobilize consumers buying products of the company Furthermore, they also provide information for the company, products of competitors From that, the company has more accurate evaluation about market with suitable adjustment 3.3.4 Promoting marketing activities 64 If the company pays more attention to advertising, sale promotion activities, they will the useful tool in market Annually, the money spent for advertising or participating in national as well as international fair is limited In order to make marketing activity bring better result, Dap Cau Garment Joint Stock Company should research to determine a suitable budget for this And budget will be used for following activities: Promoting advertisements in public means of communication as newspapers, magazine, Voice of Vietnam, Central and local television; furthermore, the company must have research about advertising time, content and means (the company can advertise continuously in central newspaper with large amount of readers or periodical advertising in magazine, television) The company can promote advertising activities in crowded areas as Hai Phong, Quang Ninh where having few competitors For example, in Hai Phong the amount of high income ones make up high proportion Additionally, they increase the sold amount by promotion, sale off with respect to regular customers; regularly organize fairs, exhibition to popularize products; research and set up the list of customers buying with the large amount to propose directorate applying preferential policies When implementing the advertisement, the company has to show the politeness and luxury of products to consumers And the customers will be easy to recognize products of the company if the company extends the image in market, creates products with unique brand name The rewarding and penalty mechanism for sale and marketing officers will stimulate the working efficiency This is one of the ways promoting business result 3.3.5 Promoting activity chain Parallel with a variety of long term solutions mentioned above, the company also should make use of strengths of each core product type regarding as using the distribution system of Vinatexmax in group, outlets, agencies to hand over products to consumers The company can connect the consuming system as above resulting from: Dap Cau has strengths in deluxe Jacket, pullover; Garment 10 has deluxe shirt for men and women; Viet Tien and Nha Be have deluxe shirt and veston This chain connection 65 will help business introduce products to consumers the most quickly, mitigate the sale cost and increase efficiency 3.3.6 Improving product quality Improving product quality to meet demand of customers the best: With respect to organization structure, the company locates according to function: finance accounting department, labor organization department, market department, material and planning department, technique department and factories From this location, information from senior to subordinators, from low to high level will be hidden, incorrect which benefit for information providers As a result, decisions of managers not take effect as expected Especially, when providing information for partners as customers, it causes many troubles as the communication skill, behavior of each individual are different Furthermore, if general director of the company wants to have information from production, functional departments, he/she has to summon each manager in phases to have information Therefore, the company should recruit the official staff having foreign language standard called as Merchandiser group to the task of getting in touch, connecting, catching information from the moment of material storage – production – package and exporting products as well as completing payment vouchers with customers Together with product capacity and quality improvement, this group makes foreign customers feel secure about the production sources in Dap Cau: customers are safe about product quality, goods delivery time, information during the production process as whether the company meet the deadline or not Especially, the behavior to customers will be improved, the satisfaction of customers is advanced and customers will connect the company more closely in long time CONCLUSION: Dap Cau Garment Joint Stock Company is a prestigious unit in Vinatex The products of company always have high quality; meet requirements of famous fashion firms as GAP, LEVI’S, and AMARNI Annually, the company has noticeable contribution to total garment export turnover of Vietnam 66 In the strategy for period 2011-2015, in parallel with the maintenance and development of the foreign market, the company has decided to develop the domestic market This is the right decision, expressed through domestic sales of over VND billion in the first months in 2011, reached over 40% in 2011 plan Developing domestic market will create the safe development advantages for the company from the balance between export market and domestic market In a wider meaning, developing domestic market will help the company create solid foundation for being active in production – business activities Strategy will make business define orientation; allocate limited sources to reach the predetermined objectives Furthermore, strategy is always close to long term development target It does not mean that strategy is immutable and fix The enforcement has to be flexible even when important factors change, some strategic objectives and solutions have to be corrected In market, businesses also have to follow the market fluctuation, actions of competitors to have suitable reaction Nevertheless, the strategy adjustment is only done in emergency case A feasible strategy is important advantage but it does not ensure the success of a business If businesses satisfy the current position, not pay attention to strategy or implement strategy carelessly, they will be out of date and eliminated out of market REFERENCES: Curriculum of Strategy Management, Global Advanced Master of Business Administration Program, Griggs University, 2010 Strategy Management, Associate Professor Doctor Le The Gioi, Doctor Nguyen Thanh Liem, Master Tran Huu Hai, Statistics Publisher 2009 Competitive strategy, M Porter, 1998 The trading and production result in five years from 2006-2010, Dap Cau Garment Joint Stock Company, 2010 Website Vietnam Garment Group: http://vinatex.com 67 Appendix 1: Company’s turnover of direct export to some main markets Unit: 1,000 USD Base: FOB price No Criteria 2006 2007 2008 2009 2010 Total export 37.472.00 37.522.00 42.755.00 47.504.00 turnover 0 0 41.502.000 28.844.45 27.751.67 38.675.82 Jacket 34.103.782 33.660.682 Taiwan Japan 3.840.595 2.732.913 U.S 9.636.090 13.386.842 22.653.135 27.264.257 23.890.410 England Spain 2.227.470 8.301.659 Greek 2.045.360 670.065 3.093.468 5.041.997 France Italy Canada Mexico 2.710.906 5.169.303 63.672 Korea Germany 1.003.873 9.366 764.470 558.704 669.914 6.747.353 295.338 215.013 470.421 42.485 1.488.775 1.068.118 279.131 158.380 1.255.898 555.575 187.200 824.232 319.050 15.120 747.861 1.449.661 275.050 1.667.761 296.436 491.153 221.908 Panama 53.220 Holand 60.537 Malaysia 19.200 8.424 Philippines 460.551 4.674.415 22.428 China 847.236 1.378.096 3.294 Singapore 45.600 61.846 Hongkong Jile German 18.132 87.040 87.040 55.265 521.749 4.424.472 3.742.841 512.168 3.577.143 4.424.472 2.952.260 2.952.260 3.230.673 5.085.523 4.754.199 3.577.143 Long trousers Spain Germany England U.S Pullover U.S Taiwan 91.450 91.450 1.922.874 420.640 42.839 128.104 1.331.291 5.157.043 3.513.435 1.186.793 2.635.607 2.635.607 7.048.490 5.891.790 1.156.700 3.908.443 Japan Canada Swimming clothes U.S Underwear U.S 356.115 100.700 331.324 1.206.059 1.206.059 250.200 250.200 Shorts 1.275.000 1.275.000 Short shirt sleeved 355.764 U.S 355.764 (Source: Annual direct export and import report of Dap Cau Garment Joint Stock Company) Appendix 2: Domestic revenue according to area and distribution system of Dap Cau Garment Joint Stock Company in period of 2006 - 2010 Unit: 1.000 VND No List Shops 2006 4.582.90 2007 2008 4.608.00 4.872.000 Ha Noi 300.000 350.000 4.082.900 200.000 Bac Ninh Hai phong 2009 2010 6.004.311 9.045.000 400.000 500.000 565.000 4.028.000 4.172.000 5.102.311 8.030.000 230.000 300.000 402.000 450.000 Outlet 1.600.000 1.600.000 Ho Chi Minh City External products Total domestic revenue 21.100 38.000 55.000 4.604.000 4.646.000 4.927.000 47.689 24.000 6.052.000 10.669.000 Source: Domestic revenue statistics of Dap Cau Garment JSC, 2010 Appendix 3: The implementation of the main criteria from 2006-2010 N o Criteria Unit A B C I Industrial production value (94) II Total revenue (not including VAT) In which: - Industrial production revenue - Export and import revenue including: + Processing revenue + Export revenue FOB - Revenue from domestic sale III Manufactured product Jacket Jile Long pants Swimming clothe Pullover (knitted) IV Export turnover - Export turnover ( according to price in contract) - Export turnover V Import turnover 2006 Implementation 2007 2008 2009 144.10 165.917 167.679 Estimation Rate 2011 % 7=5/1 " 193.225 234.081 329.567 404.405 2010 180.94 457.89 " 193.225 234.081 329.567 404.405 188.621 229.435 324.640 398.353 42.650 60.281 61.401 62.464 145.971 169.154 263.239 335.889 4.604 4.646 4.927 6.052 457.890 447.221 112.948 334.273 10.669 520.000 237,1 509.000 120.000 264,82 389.000 228,99 11.000 231,73 6.650 122,59 4.774 142,51 62 615 235,6 Million.VND 132.203 " " " 1000 products " " " " " Million USD " " " 200.000 Note 136,87 520.000 236,97 5.191 3.206 47 250 552 1.136 6.429 3.208 17 1.549 5.811 4.210 85 436 6.443 4.101 545 6.364 4.569 59 589 1.665 1.080 1.797 1.147 1.199 100,97 12.133 37.472 13.638 37.522 18.467 42.755 30.087 47.504 27.801 41.502 28.500 42.500 229,13 110,75 - According to import price of CIF - The value according to contract In which: - Material - Machine * Total products ( shirt in standard) " " " 28.365 31.502 35.742 34.553 37.062 37.500 130,66 28.365 31.052 35.742 34.553 37.062 37.500 130,66 12.362 12.962 14.971 15.064 16.796 17.000 135,86 " Appendix 4: The implementation of five year project in 2006 – 2010 No Criteria Unit 2006 2007 2008 2009 2010 Compari Average son 10/ growth 06 (%) rate/year Industrial production value Million VND 132.203 144.106 165.917 167.550 180.92 136,8 7,36 Total revenue Million VND 193.225 234.081 329.567 495.841 457.89 239,97 27,99 Domestic revenue Million VND Export turnover 5.004 5065 7.444 5.526 10.669 213,2 22,64 1000 USD 37.472 37.522 42.755 47.504 41.502 110,75 2,15 Labor’s income/ month 1000 VND 1.157 1528 1.866 2.178 2.850 246,32 29,26 Gained earnings Million VND 006 553 069 500 528 425,12 65,02 (Source: 2006 – 2010 Business report, Dap Cau Garment Joint Stock Company) Appendix 5: Competitive Profile Matrix of Dap Cau JSC in domestic market in 2011-2015 Factors Importa nce level Dap Cau JSC Viet Tien JSC Score 0.48 Evaluation Score 0.48 Garment No 10 JSC Evaluation Score 0.36 Ha Bac Garment JSC Dynamics of executing managers Financial resource Human resource 0.12 Evaluation Evaluation Score 0.36 0.08 0.10 0.32 0.3 3 0.24 0.3 3 0.24 0.3 0.24 0.2 Production cost Product’s quality Design Distribution, marketing 0.08 0.10 0.12 0.12 0.16 0.4 0.36 0.24 4 0.16 0.4 0.48 0.48 3 0.32 0.3 0.36 0.36 0.32 0.2 0.36 0.24 Brand name Technology, production scale, equipment R&D Total 0.10 0.08 0.2 0.32 0.3 0.16 3 0.3 0.24 0.1 0.24 0.10 0.3 3.08 0.2 3.2 0.3 3.08 0.2 2.46 ... Cau Garment Joint Stock Company Thanks and Best regard! Hanoi, 15 February, 2011 Group – Class GaMBA01, M0809 PREFACE Vietnam is well known as a successful story in export growing strategy after... Organization structure of Dap Cau JSC since June 2010 SHAREHOLDERS GENERAL ASSEMBLY MANAGEMENT BOARD Kinh Bac Garment Factory - Group KB01 - Group KB02 - Group KB13 Mechanical section Electric power