FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL EDUCATION MANAGEMENT CONSULTANCY REPORT for VIETTEL Student Diêm Thị Hải Vân Student ID 2105002296 Cohort F – UON – M – 3C Semester I Academic year 20[.]
FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL EDUCATION MANAGEMENT CONSULTANCY REPORT for VIETTEL Student: Diêm Thị Hải Vân Student ID: 2105002296 Cohort: F – UON – M – 3C Semester: I Academic year: 2022-2023 Instructor: Nguyễn Phương Chi Headteacher: Bùi Mai Anh Submission date: 16 - - 2023 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 Part 1: Analysis Of Viettel's Management And Operation Introduction to company 1.1 Company history 1.2 Company's Vision 1.3 Company's Core Value Environmental Analysis 2.1.1.Politics 2.1.2 Economics 2.1.3 Social - Culture 2.1.4 Technology 1.5 Environment 1.6 Legal 2.2 Internal environment 2.2.1 Strengths 2.2.2 Weakness 2.2.3 Opportunities 2.2.4 Threats Company Strategy 3.1 Competitiveness Strategy a Price leadership strategy b Product differentiation strategy 3.2 Operations Strategy Productivity Improvement Forecasting services demand Resource Utilization a Take advantage of financial resources b Utilize human resources Service Design 7.1 Design Theory 7.2 Changes in service design through many years Quality Management Customers service management 9.1 Customer classification 9.2 Interacting with customers a Taking care of customers before selling b Taking care of customers while selling c After-sales customer care 9.3 Applying technology in customer management 10 Project Management 3 4 4 7 7 10 11 11 11 11 13 13 14 15 16 16 17 17 17 19 19 20 20 20 20 20 21 21 22 Part 2: Comment On The Management Of Viettel And Offer Solutions Comments on management and operation of Viettel 23 23 Solutions to improve the management status of Viettel Reference List 23 25 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 Part 1: Analysis Of Viettel's Management And Operation Introduction to company Viettel is a military telecommunications corporation with 100% charter capital of the state This is a business enterprise in the field of post and telecommunications with the main product being mobile network services The company introduction is the summary of the most general information about Viettel military telecommunications group 1.1 Company history Viettel military telecommunications company was formerly known as Electronic Information Equipment Company, established in 1989 In 1995, the company officially became the second service provider in Vietnam and changed its name from an electronics and equipment company to a military electronics and telecommunications company with the transaction name Viettel By 2000, Viettel had tested and successfully provided a long distance telephone service using VoIP technology on the Hanoi - Ho Chi Minh route.In 2003, Viettel began to popularize and expand its fixed-line telephone service business across all regions of Vietnam and began to invest in basic telecommunications services Beginning in the third quarter of 2004, a turning point of Viettel's development was marked when the 098 mobile network officially came into operation By 2005 From a military electronics and telecommunications company, Viettel officially became a military telecommunications corporation under the directives of the central government and the state On April 5, 2007, Viettel Telecommunications Company (Viettel Telecom) under Viettel Military Telecommunications Corporation was established, on the basis of merging Viettel Internet Companies, Viettel Fixed Phones and Mobile Phones After more than 30 years of operation, today Viettel has affirmed its position as one of the number one telecommunications groups in Vietnam with leading quality post and telecommunications services 1.2 Company's Vision Since its establishment and operation, Viettel has always tried its best to fulfill the goal of "universal telecommunications services" By 2018, Viettel has officially completed this long-term goal and repositioned the brand for a new Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 development step, a new phase that is "The mainstay, pioneer in creating digital society in Vietnam" Vietnam" Also in 2018, the military telecommunications corporation Viettel released a statement about a new vision that is: "to become a leading technology business group, continue to maintain the leading position in Vietnam in the field of technology telecommunications and high-tech industry, participating in the top 150 largest enterprises in the world by 2030 and at the same time being a pioneer in creating a digital technology society 1.3 Company's Core Value As one of the No telecommunications groups in Vietnam, participating in the top 15 of global telecommunications companies in terms of number of subscribers, during more than 30 years of development, Viettel has always been loyal to eight core values : Practice – Challenge – Adaptation – Creativity – System – East and West – Soldier – Viettel Common House These are the core values and corporate culture that have helped Viettel always be in the top five enterprises with the best working environment in Vietnam and promote the creativity and spirit of giving of the team staff to bring the company remarkable achievements in the post and telecommunications industry in Vietnam Thanks to persistently pursuing these core values, Viettel has always kept its own unique identity, created many values for society and won the trust of customers Environmental Analysis 2.1 External environment 2.1.1.Politics Vietnam is one of the countries that is highly appreciated for the stability of the political situation Vietnam has a single, systematic political apparatus to ensure that all the country's problems are resolved in a consistent manner Regarding foreign affairs, Vietnam always maintains a neutral status on disputed issues in the world and does not participate in any conflicts In addition, Vietnam has always maintained and developed friendly and bilateral relations with other countries to maintain the national security situation The stable political situation has helped the company to develop sustainably and feel safe when investing in expanding the market Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 Besides the domestic situation, the fact that Vietnam is a member of prestigious world organizations such as the World Economic Organization (WTO), the United Nations, also creates a premise and opens the door for Viettel to access to foreign markets 2.1.2 Economics Vietnam's constantly opening and integrating market economy has created many opportunities for Viettel to expand its scale and rapidly develop Graph of GDP growth rate of Vietnam in the period 2011-2021 (Source: Viet Times News & Analysis) Based on the two graphs above, we can see that over the past decade, despite many fluctuations, in general, Vietnam's economic situation still has stable growth, except for a decline in economic growth serious in 2020 due to the impact of the Covid-19 epidemic A stable economy is an opportunity as well as a solid foundation for Viettel to constantly develop and expand its market share Not only the economy in general, but the telecommunications industry particular, has also experienced outstanding growth, which is reflected impressive numbers According to the economic report of the first months 2022 of the Ministry of Planning and Investment, the revenue telecommunications activities in our country is 168.4 trillion VND, up 6.6% in in of of Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 over the same period last year Mobile subscribers and internet access subscribers also grew strongly The positive signs of the Vietnamese economy in general and the telecommunications industry in particular have opened up the potential and promoted the development of Viettel However, the year 2022 is turbulent with the volatility of gasoline and oil prices due to the impact of the conflict between Russia and Ukraine and the serious instability of the stock and financial markets There are many pressures and challenges for companies in Vietnam in general and Viettel in particular 2.1.3 Social - Culture The business activities of an enterprise are not only affected and affected by the target market but can be influenced by all factors related to society and the general culture of the host country With a culture that has both unique national imprints and a spirit of international integration like Vietnam, it is a fertile land for Viettel to exploit customers Currently, translating, exchanging and updating information through telecommunications networks is gradually becoming one of the essential needs of the people People of all ages, genders and occupations need a mobile network, especially in the current era of information explosion and social networking This contributes significantly to stimulating demand for Viettel and helping the company's services reach many new customers Besides, the Vietnamese people have an advantage that they grasp new trends very quickly and are very sensitive to new things This is also a factor that helps the company to breathe energy to develop new services without having to worry about the ability to access the market Besides, the intellectual level in our country is increasingly improving, there are many excellent and outstanding individuals that will help businesses save a large amount of money when they not need to hire many foreign experts In particular, compared with some countries in the region and the world, the Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 standard of living and average income in Vietnam is not too high, which is also an opportunity for Viettel to get a source of labor at a low cost 2.1.4 Technology Technological factors for the telecommunications industry can be considered as a key factor leading to the success of an enterprise In this industry, a company with technological acumen will gain a competitive advantage because technology will directly affect two factors in the business that are the quality and the individual cost of products and services service The era of technology boom with the strong development of wireless networks such as 4G, 5G, has created not many opportunities for Viettel to constantly improve, upgrade or create services new service However, the explosion and diffusion of technology also brings many challenges as more and more companies enter the industry and old competitors are constantly changing 1.5 Environment Natural and environmental factors including climate, weather, geographical location, natural conditions also cause Viettel some obstacles in market expansion because today there are still areas in Vietnam Areas with undeveloped infrastructure are difficult to access and build stores 1.6 Legal In terms of law, Vietnam's Economic Code also has many beneficial provisions, to encourage businesses to develop, especially the telecommunications service industry, an industry that helps the country integrate with the world quick way 2.2 Internal environment 2.2.1 Strengths ● Stable financial resources Viettel is an economic - defense company owned by the state, so 100% of the capital belongs to the state Viettel's charter capital is up to VND 50,000 billion, of which Viettel's total debt so far is only about VND 6,000 billion due to delayed payment of equipment purchases As the leading large telecommunications group in Vietnam, Viettel's financial resources have been accumulated over decades, plus the mechanism to support businesses in using the science and technology development fund, so Viettel is completely proactive in the field of communication investment and development of telecommunications and information technology networks Almost all Viettel's business or investment activities not have to borrow money from banks but come from self-financed capital Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 ● Positive corporate culture Corporate culture or the environment inside the company is one of the important factors affecting the psychology and working attitude of employees Viettel from the early days of its establishment has determined the importance of this factor and constantly innovates to adapt to the times, to the era of technology and to create a younger, dynamic environment for employees positive as the general trend That change is most clearly shown through the development and change of the core values that the company has established Previously, Viettel's core values were only encapsulated in three words: caring, innovation, passionate, but up to now, these values have been developed and expressed through words which are practice – Challenge – Adaptation - Creation - System - East - West Soldier - Viettel common house Thus, the old values have not been lost but have been improved, resonating with the elements of the times to form a more dynamic, "trendy" Viettel It is the timeliness and efforts to change that culture that by 2021, Viettel has been honored by Anphabe for the 5th time in a row as a company with the best working environment is the best in the information technology telecommunications industry in Vietnam and is ranked 3rd in the list of enterprises with the best working environment in Vietnam Not only is it recognized by domestic survey sites, but Viettel's healthy, progressive and civilized business environment is also recognized by famous human resources magazines in the continent 2022 is the second year in a row that Viettel has been awarded the HR Asia magazine - HR Asia ● Product quality, leading service Viettel's service quality is always proportional to the brand's reputation It is not natural that Viettel has a leading position in the Information Technology Telecommunications industry in Vietnam and is constantly expanding the market to other countries outside Since 2003, Viettel has repositioned its brand twice with different missions However, there is one thing that has always been maintained by the company from the early days until now, which is the business philosophy Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 Viettel's business philosophy is "Put customers first - Put yourself later" The company always listens, learns the needs and desires of customers to constantly improve and upgrade its products The company has had many pioneering products in the industry, which have been positively received by consumers and become a formidable competitor to other companies Viettel is the first company to provide 4G network services in Vietnam and the first operator in the world to have 4G coverage nationwide right after opening the service And it is also Viettel that provides 5G network services - the strongest type of network today for subscribers in Vietnam and when roaming internationally To evaluate the quality of a company's products, the most objective tool is the customer On September 6, 2021, a global media and market research company conducted a survey with 1000 people (of which 510 are using Viettel's telecommunications services and 490 are using Viettel's telecommunications services) services of other carriers) on service quality of carriers Network operators are evaluated based on criteria: wave quality, connection speed at peak times, service quality and rates, and data upload speed The result after the survey is that 85% of customers participating in the survey are willing to recommend Viettel's services to their relatives This result has confirmed Viettel's leading position in terms of quality 2.2.2 Weakness Besides the outstanding strengths, Viettel also has some limitations that may affect the development of the company ● Lack of in-depth management experience at senior level Viettel is a company under the Ministry of National Defense, most of the key players in the group started as soldiers and then turned to run businesses Because they are soldiers, they not have in-depth training in business and business operations, so they lack experience in management In many stages, the management of senior leaders is still quite rigid, not suitable for the current market ● Limited business capital Since most of the company's capital is self-financed, there are no loans or investments from abroad, so the company cannot rotate capital quickly and continuously Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 Vinaphone.In addition, young startups with a lot of creativity can also be potential threats to watch out for Currently, Viettel has joined other countries in the world As a "rookie", Viettel will certainly be under a lot of pressure from big companies in the host country ● Researching customers' desires and preferences In Vietnam, Viettel is meeting the needs of customers very well, constantly providing new services to keep up with the trend However, in each country, the demographic and cultural characteristics, the preferences of the people are different This also partly creates certain barriers for Viettel in the international market Company Strategy 3.1 Competitiveness Strategy To maintain its position as well as prevail over competitors Viettel has come up with smart competitive strategies to "retain" its customers a Price leadership strategy Since its establishment, Viettel has chosen to business in the cheap direction so that all objects can access and use it Because the target customer group is students, workers and middle-income people, all the company's products have attractive prices with a lot of promotions consumer psychology and conditions 2007 marked the milestone when Viettel officially entered the telecommunications service industry when announcing the Tomato package The purpose of Viettel at that time was to democratize mobile communication services With the price to maintain the service of VND, Viettel Mobile has successfully brought its name and service to cover up to 80% of domestic areas In 2008, Viettel launched an unprecedented promotion program that is a promotion for listeners Listeners for every minute of calling will be added 100 VND to the promotional account Thanks to this promotion, the number of subscribers and users of Viettel's listening and calling services increased dramatically, helping Viettel to stay ahead of two rivals, Vinaphone and Viettel Up to now, Viettel has remained loyal to its low-cost service orientation and has constantly upgraded promotions Still the same discounting and discounting policies, but they are modified in many different forms such as discount 10 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 programs, discounts and accumulating bonus points when paying through affiliated banks or via e-wallets from Viettel Money The price leadership policy has brought Viettel huge profits and outperformed its competitors Chart of business results in the first half of 2022 of operators Viettel, Mobifone and VNPT (the parent company of Vinaphone) (Source: Vietnambiz) b Product differentiation strategy Right from the moment it entered the market, Viettel has shown itself to be a completely "different" guy In the period of mobile communication services, with the presence in Vietnam, most companies are blind to profit by offering expensive packages Going against the majority, Viettel offers the yard a series of cheap packages and programs Unprecedented promotions And because of that, even though it has just entered the market, Viettel's name has quickly left an impression on consumers and gradually dominated the industry market share More and more, Viettel shows more and more timeliness and superiority compared to its competitors While Mobifone and VNPT still only focus on telecommunications network services, Viettel has continuously expanded its business segments, encroaching on both IT solutions and digital services, 11 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 e-commerce and Logistics The special thing is that all these businesses are linked together and customers can easily use all the company's services 3.2 Operations Strategy In order to make the company become a leading corporation in the industry, Viettel has implemented many strategies as well as restructured internal management activities ● Viettel's business philosophy Viettel has declared its business philosophy as "Each customer is a person - a separate individual who needs to be respected, cared for and listened to, understood and served separately Constantly changing new, together with customers to create more and more perfect products and services" With this philosophy, Viettel always strives to be a breakthrough pioneer in the field of applying modern and innovative technology, thereby offering solutions to create new high-quality products and services along with reasonable price to meet the needs and choice of customers The company always shows listening and caring to customers' wishes to create quality products together with customers ● Research and development activities Since entering the telecommunications service provider market in 2000, Viettel has realized the importance of the research and development process as well as determined that this is the key stage to help the company innovate continuously and "changing flesh" day by day In order to achieve the goal of mastering technology, research and production activities, Viettel has chosen to carry out most of the research stages by itself instead of hiring foreign experts to produce the most suitable products for customers Vietnamese consumers ● Technology Technical and technological perspectives in Viettel's operation strategy are always associated with the "latest" requirements This is both an operating motto and a priority requirement in Viettel's operation strategy Although joining the telecommunications field quite late compared to other large telecommunications companies, Viettel always knows how to catch up with technology trends and always focuses on applying advanced information technology in production and product development Products 12 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 Human resources management For human resource management activities, the company always has policies to promote as well as promote the full capacity of the leadership team and employees in the enterprise At Viettel, qualifications are not everything, but skills are the top priority Management believes that without skills, it will be difficult to adapt to changes and advancements and to be highly effective at work Therefore, at Viettel, qualifications are only used to arrange positions when that employee has no skills At Viettel, employee screening takes place very often with the aim of both eliminating those who not fit the company's culture and letting employees see their weaknesses in order to progress and be more creative Besides screening low-level employees, staff rotation is also common here This is how Viettel seeks and trains the company's key staff as well as finds suitable personnel for important positions in the management and above all helps them to develop their full potential Productivity Improvement Looking at Viettel's development and growth, it can be seen that labor efficiency has been improved over time by correctly identifying the direction for the company and effectively applying it modern technologies In order to save costs, Viettel has chosen not to outsource but master the core technology itself Viettel always actively approaches high technology, new technology and has built close relationships with many foreign partners, so it is always ready to carry out technology transfer to serve the research and development of products Products With the proper and appropriate application of advanced technologies, the company's work performance is always improved day by day, helping Viettel to grow steadily even during the two years of complicated epidemic developments At Viettel Post, Viettel has deployed an automatic robot that saves 91% of labor, reducing the whole process of connecting parcels up to hours In addition, in the telecommunications segment, Viettel also promotes the application of the automation process, applying automatic control technology, 13 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 self-optimizing the quality of each call, analyzing the cause of errors, and providing solutions for 70% of bad calls/sessions with 85-90% accuracy to increase the quality of calls and reduce the number of dropped calls and bad calls by 10 times Technology applications also help 95% of customers to take care and manage their calls without the need for staff support or going directly to transaction points Forecasting services demand To forecast customers' demand for services, Viettel has used both quantitative forecasting methods based on data obtained through market research activities and qualitative methods based on predictions about trends the general development of the domestic and international technology industry Viettel has seen the reality that the means of communication such as SMS and voice are gradually declining and being replaced by OTT communication applications released by digital technology companies such as Zalo, Facebook, Twitter, Since then, the company's management has made predictions about the trend of using new services of customers, which is the need to use highspeed data on smartphones From this prediction, Viettel has quickly entered the rebirth, repositioning the brand to match the 4.0 era, and at the same time offering appropriate services to satisfy customers such as the ST package (abbreviated of the word "sieu toc" means very fast in Vietnamese) with data capacity 30 times higher than previous packages Not only changes in internet services, other transaction activities were also quickly put into digital transformation when Viettel realized that customer behavior was aimed at speed, convenience and time saving My Viettel and Viettel Money applications allow users to make most of the necessary transactions in life, from paying phone bills to shopping, eating, Resource Utilization Knowing how to utilize resources and optimize resources is one of the important keys to success Viettel has made smart investments as well as put its resources in the right places to bring breakthrough developments to businesses Below is an analysis of how Viettel has utilized its financial resources, infrastructure and human resources in its business 14 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 a Take advantage of financial resources Viettel is one of the groups with strong financial potential when the company's charter capital by 2021 is VND 160,000 billion and is applying for funding to complete the target of VND 300,000 billion Besides, Viettel's growth rate is also admirable According to Viettel's financial report for the first months of 2022, Viettel's consolidated revenue reached 79.9 trillion, up 6.6% over the same period in 2021; the company's pre-tax profit reached 26.6 trillion, up 21.7% over the same period in 2021 With the advantage of capital, Viettel has constantly invested in technology and modern machinery to research and develop products, upgrade infrastructure and invest in expanding its network in foreign markets Every year, Viettel spends about 4,500 billion VND on research and development of products and services Thanks to this "strong" investment, only in the first half of 2022, Viettel has launched 36 new technology products for the digital transformation of businesses In addition, in 2022, Viettel also surpassed many initial targets such as: building more than 7000 new broadcasting towers (1000 more than compared to the previous year) target), completed more than 12 thousand km of fiber optic cable (nearly 1000 km more than the target), b Utilize human resources Viettel is one of the companies that knows how to promote and fully exploit its human strengths Thanks to a progressive and civilized corporate culture and a young and dynamic working environment, Viettel attracts a lot of young talents According to reports and statistics, currently 40% of employees, leaders and managers at Viettel are under the age of 35 This is one of the strengths and resources to help Viettel continuously develop and keep up with the trend of the times 15 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 In order to promote the full potential of employees, Viettel has boldly delegated authority and appointed young people to senior management positions to seek new directions in management, change the management environment, and change the management environment promote innovation and creativity within the company In particular, according to Mr Le Dang Dung (Acting Chairman and General Director of Viettel Military Industry-Telecommunications Group), assigning difficult jobs is the method that the board of directors implements to maximize their ability employee's ability and creativity Service Design 7.1 Design Theory Product design or product redesign is the process by which a company comes up with an idea for a new product or upgrades existing products into improved versions to keep up with market trends and respond to increasing demand of customers The process of designing or redesigning a service is a lengthy research process and many factors must be considered in order to come up with a viable design To form design ideas, designers together with researchers need to carry out the steps of surveying and evaluating the market Designers need to understand the demand for the service, determine the capabilities of the business, estimate the quality of the product, and evaluate the economic impact of changing product design There are many factors that can affect service design such as: human factor, legal and ethical consideration, cultural factor, environmental factor, etc One of the most important factors when designing a product is the life cycle of the product 16 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 The chart of the product life cycle (Source: Tomorrow Marketers) The lifecycle of a service is closely tied to the lifecycle of related products and human needs For telecommunications or technology services, it will depend on technology products such as smartphones, tablets, computers, etc As technological devices are increasingly improved, Software and technology must also be redesigned to meet its performance Normally, the life cycle of a product or a service will include stages: introduction, development, peak and decline Designers will rely on these stages to make decisions about how to design the product, whether to continue to change the product design, or to abandon the market 7.2 Changes in service design through many years At Viettel, the service change is always associated with the needs of the market and the company's business strategy 20 years ago, when the demand for communication by phone became rampant, Viettel designed a lot of telecommunications services to hit the communications segment when it launched a series of packages and communication services cheap internet like "178- your savings code", 2G network internet connection service 17 Management Consultancy Report For Viettel Diêm Thị Hải Vân ID: 2105002296 In the period 2000 - 2009, Viettel continuously redesigned its communication services by phone by launching attractive packages such as Tomato, Happy Zone, and upgrading network transmission lines, putting it into operation 3G network to capture market trends However, from 2010 to 2018, Viettel changed its product design strategy to match the company's new business orientation and integrate into the information technology era On September 8, 2011, Viettel opened the Natcom network to provide telecommunications services in Haiti After that, Viettel has provided a series of high-tech services such as express delivery service, money transfer service at home, One of the biggest changes in Viettel's service design is customer service From focusing on direct communication under the slogan "Speak your way", Viettel has changed to remote customer care activities through digital platforms and changed the slogan to "Your way " Quality Management According to ISO 9001, quality management is defined as the activities of the management function that define the quality policy and objectives and implement them by means such as planning, quality control, quality control and quality improvement in the quality management system For a service company like Viettel, the assessment of service quality will largely depend on the customer Therefore, the company's service quality management process is closely linked with the task of improving products to meet the needs as well as satisfy customers When launching any service, Viettel will also have test programs to probe customer reactions During the testing program, the company will monitor the behavior of service users, record comments, evaluate through the use process to fix and improve the service immediately However, before putting the services to the test, Viettel services have also been tested internally to check whether the service has met the initially set quality criteria 18