Constructing development strategy for Nghe An Newspaper Printing House within the period of 2012-2017

Trang 1

Gace)

CAPSTONE PROJECT REPORT

CONSTRUCTING DEVELOPMENT STRATEGY FOR NGHE AN

NEWSPAPER PRINTING HOUSE WITHIN THE PERIOD OF 2012-2017

Tran Quoc Thanh Phan Duc Dong Vo Minh The Phan Van Binh Huynh Ngoc Can

Class: Gamba V0210

NGHE AN 2012

Trang 2

GRIGG UNIVERSITY

TABLE OF CONTENTS

ACKNOWLEDGEMENT 0 0 c cence ence ene eee e eee ea eee eeeataeeaenaees 6

TESTIMONIAL OF NGHE AN NEWSPAPER PRINTING HOUSE 7 PERISIVAGE, «oes cas vasan s nama reams canis 00c bán 11810 < 11087 1x4 52s š biện mmemoaiia « somamammsens'avewanaeie ses 6 8

1 The reason Of seleCted {OpIC CĐ SH SH SH KH kh nh nh nh cớ §

2, (NHHẨV ODÌGŨỈ::xnirszsarssarkeBd AE tai S ha 6125455500404 5 8364 Y E64 Răng S Biế kản in « Rraomomn ¥ aaeiidlies line 6 te 9

3 The purpose of topic SUỦy SH nh HH KH ni ng nu kh 9

A, SHOGY (CCHS asc sien s snes canons bán ga nik SLA TL OONE LARS AIRE A A FRR MS § x88 š kêu BS ss 9 X /0v48(y)(0()ụadaaaaaaiiiỔẢiỎỐÚẮẢẮẢẢ 10 CHAPTER I: THEORETICAL BASIS FOR CONSTRUCTING BUSINESS STRATECY :‹ :.«c:ccỉŸc: cẽcctườn: tin Ha thon chan BASE A mA KO a BR Ke 11

1.1 Definition, role and strategic business model 11

1.1.1 Definition of strategy and business strategy 11 1.1.2 The role of strategic management acs isis scans sss secs swe s scans sasmnnan khoan 11

1.1.3 Strategic modelÌL -. . c- nh như nhưng 12

1.13.1 Company level state ey sc snc: som sams ssms sams susamnn T AE 6 V4 E 12 1.1.3.3 Business unit level strat€gy cà se se se 12 1,1.3.3 Punetional level SIFAt€EV : cán con thak khnh cuần Láng non an ag4, 12 1.2 Process of defining business s(rategy cành che 13 1.2.1 Define vision, mission and strategic targ€fS .-. 13 1.2.2 Study and predict external environment of the enterprIse 13

L.2.2.1 Macto environment (5 TaACtOrs sis «sacs cs ssc sauna came pean s omaaus aoe 14

1.2.2.2 Micro environment (operational environemnt) 14 1.2.3 Study and predict internal factors oŸ the enferprise 15

2

Trang 3

GRIGG UNIVERSITY

1.2.3.1 Analysis of enterprise's YESOUTO wins sais suas ssa c anes tasmua asset one 15 1.2.3.2 Analysis of enterprise’s organizational capacity 15 1.2.3.3 Analysis of enterprise’s competitIVeness 15 1.2.4 Construct strat€g1IC SỌUtIOIS: ch ees 16 1.2.5 Analysis and selection of strategic solutIions 16 1.2.6 Strategic Inpieinen(AaLIOn con SH nh, 17 1.2.7 Stratepy implementation checking and evaluation 17 1.3 Strategic analysis model ch nh nha 17

Âu nh PSL AU eres ceca 7 ng § 2rgig9 § woes wom s mem x sonemees Lewes © amar eeeen » wep» 17 1.3.2 Five force modelL -. - «se 17 1.4 Analysis technique sss «ics swiss scsi «some sass veawas wane 0 90s 100s «wan 4 GEN BIẾN 1 SE HE 6135 18

1.4.1 External factors evaluation matrix (EFE) .- 18 1.4.2 Internal factors evaluation matrix (IFE) - 19

DA SWOT BAUER, vu -e«cceằ co mnỲŸ 451222 14/68 kángZ š Xã380)5 0/0104 š 155g AOE š 6130090105 5 B 3340 20

1.4.4 QSPM THÍỂÌN ¡acc ni crẻnc pauat phải cnu05 tung LuYA k KP + Stee 8 ore ï VHNGSEDS5 R MRA 22

CHAPTER II: ANALYSIS OF BUSINESS ENVIRONMENT OE NGHE AN NEWSPAPER PRINTING HOUSE .- 24 2.1 Introduction of Nghe An newspaper printing house 24

2.1.1 General information . cà sàn hen 24

„1,2 Main búsiness WES ccass cong Samia + amine 1 thoả im S GẠNU š TU § 91000300108 25 Bd oe WER; TAS TT se nhục ý 1.260 + meena x x poenen + ners tosses ete a ponent a snc š PS 3 eames errs 990% 25 2.1.4 Orpganizational StruetUfe cá cm cán 61 ket 2 4064 04008020648 k3 23 2.2 Analysis of environmental factors of Nghe An newspaper printing house 26 3

Trang 4

CRIGG UNVERSITY

2.2.1 Macro environment 0.0 cece ec ec cece eceeeccucscueccucecucueeneuteeeues 26

2.2.1.1 EconomIC ÍaCtOFS c c2 cà cv 24

2.2.1.2 Socio-cultural faCtOFS ccccccccecec cà 27 2.2.1.3 Political, governmental and legal factors 28 2.2.1.4 Environmental ÍaCtOFS c.ccccc {se 29 2.2.1.5 Technologlcal ÍaCfOFS cv 30

2.2.2 Sector €nVITOnT€NTI c2 2222 cà 30

2.2.2.1 CUSfOim€FS cQQnH HH Hs HH nh nh khen nu ra 31 Desdecdides FT OV HÀ Ì: ccae 1 aie stir 6 Ras 8 121016 10,8% k ki co nan x nhọn 6 ng g3 snnmmxrynoae gà HH 33 2.2.2.3 Current competitive opponents a5

2.2.2.4 Entry BarrIer - HH v 37

2.2.2.5 Replaced products c cv s*2 38

2.2.3 Synthesis of opportunities and threatS 38 2.2.3.1 Opportunities of the printing HOUSE sic «cos «sews» evavnes swna sven sic 38 2.2.3.2 Threats of the printing house -.‹- -‹- 39 2.2.4 Internal environment of Nghe An newspaper printing house 40

Ded Aal, RESOUICES « « cases nen i owas 4 wanes + sane 3 sea + mas 4» amine § we a seme 5 Bam LH 40

Trang 5

GRIGG UNIVERSITY Soe Stratewy SCLCCHON sox ssa: sane sswnass saws sa sme tama 4 NEE And heeoes ono» hawede s vawermne sane ee 53 EU, 0 1 nH acc -dj31 `, 3.2.2 QSPM matrix c cv 56 3.3 Proposed solutions cQQQQn HH SH TH» nh nh nen yvy 58 3.3.1 Solutions of Marketing .cccccccccŸSss* 58 3.3.1.1 Market and productS . -<c-<2 59 3.3.1.2 000210 200000) 4|4t:aamDaaiiiỪỘ 59 3.3.1.3 ProMoOtion cece cece cence ete eect nee ee eee eeeeneeenenaeneeneeens 59 3.301 A Marketing control micthod seas « vse cxvsces sacen same s ses + wae samme « aptmce 60 3.3.2 Solutions of organizational restructuring and human_ resource GOVE PCI cues ners x sans same sai a emine seam + ea 4 oc 5 SEN Re 4 NR RR RR ba RR BB A 60 3.3.3 Financial and investment solution - -‹- «<<: 62

1.3.4 Techiiologienl SGHTGH sua ssa unas sasmms sar 3 ce + anes waims samme p316/08 8 b3Igl0g5I6 8 63 3.3.5 Innovation of the management task in Nghe An newspaper printing

POWAY, ô cence â cane s eran  betes Đ seems 1 ees ï H05 cman 5 NiSPSE 1909600 9 Siow 2 memes wey een 9 MeN ï tỆNG a eS» es SEO 63 3:4 lmflerieftZtÏưfi fGUÍ6 Lo cuc 224 hia dD a Ba RH cams ARR ai 8 OR 65

3.5 ConcÌuSIOn cọ HH nh nh KH Ki tà hành bit 65

REEERBNGEN siiee ke bneeeeeesbspeses phơng tưng tu 0005 L0) 1 301090 SID10163 10808093 NE eRe END 50 68

LIST OF ABBREVIATIONS Ăn sàn SH se 69

APPENDIXES .- HH HH nh nh như 70

5

Trang 6

GRIGG UNIVERSITY

ACKNOWLEDGEMENT

First of all, group 2 would like to show great gratitude to the program of global idvanced master of business administration organized by Viet Nam National Jniversity associated with Griggs University, especially lecturers who have created zood conditions for our group to join the program, gain knowledge and complete the :apston project report

Our group would like to thank director board and cadres, employees of Nghe An 1ewspaper printing house and related agencies for creating conditions for our group to \ave full information and data for preparing the report

The selected topic is: “Constructing development strategy for Nghe An 1ewspaper printing house within the period of 2012-2017” because 4/5 group nembers are cadres of Nghe An provincial people’s committee which is the agency to nanage and steer the printing house so it is really favorable in grasping and ipproaching data directly In spite of trying our best to complete the report, it cannot void mistakes Then group 2 hopes to receive valuable comments of lecturers and karners on the report to make it really useful for our group and Nghe An newspaper jrinting house

Trang 7

GRIGG UNIVERSITY

TESTIMONIAL OF NGHE AN NEWSPAPER PRINTING HOUSE My name is : Le Van Thong

Position : director of Nghe An newspaper printing house

Address : No 58 , Dao Tan street, Vinh city, Nghe An province

Verify all of the data and research results in the selected topic “Constructing development strategy for Nghe An newspaper printing house within the period of 2012-2017” of group 2 - MBA program organized by Griggs university and Viet Nam national university to be accurate and honest

Trang 8

GRIGG UNIVERSITY

PREFACE

1 The reason of selecting the studied topic

Globalization and global economic integration will bring many opportunities together with the big threats and risks for the enterprises To exist and develop in a strongly competitive environment, enterprises must construct a suitable business strategy When having a good business strategy, enterprise will easily grasp Opportunities and avoid threats from business environment This is a very important task which can decide the success or failure of an enterprise However, in reality not all enterprises care for constructing a good development strategy

Printing sector had appeared for a long time, from simple, handcrafted to semi- mechanism, then mechanism, automatic and digital technology application Breakthroughs of science and techniques including the most modern theories and technologies have been applied into printing Then people say that printing sector is a generally scientific-technical sector Together with the development of global economy, in recent years, Vietnamese economy has got considerable development Reform policies of the Party, the State and especially the development trend of economy, society and culture has created many favorable opportunities for domestic and foreign enterprises to access the printing market with defined development steps

Since being established till now, Nghe An newspaper printing house, which belongs to Nghe An provincial party’s committee office, is the speaker of Nghe An people and Nghe An provincial party’s committee Via many years of development, the printing house has been rewarded with many certificates of merits for the devotion and contribution into provincial development

Group 2 has 4/5 learners who are cadres of the provincial party’s committee, directly monitoring and managing activities of Nghe An newspaper printing house Our group wants to apply the learned knowledge and information from MBA program to contribute to the consolidation and development of the printing house That’s the

9

Trang 9

GRIGG UNIVERSITY

PREFACE

1 The reason of selecting the studied topic

Globalization and global economic integration will bring many opportunities together with the big threats and risks for the enterprises To exist and develop in a strongly competitive environment, enterprises must construct a suitable business straiegy When having a good business strategy, enterprise will easily grasp Opportunities and avoid threats from business environment This is a very important task which can decide the success or failure of an enterprise However, in reality not all enterprises care for constructing a good development strategy

Printing sector had appeared for a long time, from simple, handcrafted to semi- mechanism, then mechanism, automatic and digital technology application Breakthroughs of science and techniques including the most modern theories and technologies have been applied into printing Then people say that printing sector is a generally scientific-technical sector Together with the development of global economy, in recent years, Vietnamese economy has got considerable development Reform policies of the Party, the State and especially the development trend of economy, society and culture has created many favorable opportunities for domestic and foreign enterprises to access the printing market with defined development steps

Since being established till now, Nghe An newspaper printing house, which beloags to Nghe An provincial party’s committee office, is the speaker of Nghe An peorle and Nghe An provincial party’s committee Via many years of development, the printing house has been rewarded with many certificates of merits for the devotion and contibution into provincial development

Group 2 has 4/5 learners who are cadres of the provincial party’s committee, directly monitoring and managing activities of Nghe An newspaper printing house Our grou) wants to apply the learned knowledge and information from MBA program to contibute to the consolidation and development of the printing house That’s the

9

Trang 10

GRIGG UNIVERSITY

reason why our group chooses the following topic: “ Constructing development strategy for Nghe An newspaper printing house within the period of 2012 - 2017”

2 Study object

The study object in this capstons project report will be the strategic solution to construct and develop Nghe An newspaper printing house, raise operational effect, increase income for cadres, empioyees and contribute to the development of the printing house

3 The purpose of topic study

Based on theory of strategic management, our group has studied the development reality of Nghe An newspaper printing house, analyzed internal and external environment of the printing house to define the strengths, weaknesses, opportunities and threats for the development of the printing house then select business strategy and define some basic solutions to implement development strategy of the printing house from current time to the year 2017

4 Study method

In the implementation process, our group has used generally qualitative research methods such as observation, interview, group discussion then synthesize, analyze and compare primary and secondary data in term of business environment and operational situation of Nghe An newspaper printing house

Secondary data is collected from many resources such as: Nghe An newspaper printing house, Nghe An printing joint stock company, Nghe An form publication and printing joint stock company, and private enterprises within the area, Nghe An provincial party’s committee office, department of information and communication, Nghe An VNPT, Publishing houses, papers and internet

Primary data is collected via the exchanges, meetings, direct interviews with leaders of printing house so as to understand clearly the contents that are not shown in annual reports At the same time, leaders of printing house have clarified the

10

Trang 11

Gricc UNIVERSITY

difficulties, barriers in short and long term that must be removed under the integration trend of printing sector to find out some strategic orientations of Nghe An newspaper printing house in the coming years

Structure of the report:

Capstons project report includes 3 chapters:

- Chapter I: Argumental basis for constructing business strategy

- Chapter II: Analysis of business environment of Nghe An newspaper printing house

- Chapter III: Selection of strategy and basic solutions to implement business strategy of Nghe An newspaper printing house within the period of 2012- 2017

11

Trang 12

GricG UNIVERSITY

CHAPTER I: THEORETICAL BASIS FOR CONSTRUCTING BUSINESS STRATEGY

1.1 Definition, role and business strategy model 1.1.1 Definition of strategy and business strategy

Strategy is a terminology to appear for a long time which is usually attached

with military term to be understood as follows: strategy is the media to reach long term targets

Business strategy is connected with economic term and understood according to many different ways as follows:

- According to Fred David, strategy is the media to reach long term targets - According to Alfred Chadler, strategy is to define basic and long term targets of an enterprise and create an action plan and allocate necessary resources to implement such targets

Then business strategy is a collection of targets and policies as well as the main

plans to reach such targets which can clearly show the business sectors that the

company will implement

Generally, definitions of business strategy have some differences but basically it includes the following contents:

* Define short and long term targets of the organization * Propose and select solutions to reach targets

* Implement and allocate resources to implement the given targets 1.1.2 The role of strategic management

- Firstly: business strategy will help enterprises to clearly realize their own purposes and orientations It forces managers to consider and define the organizational orientation and the time to reach a defined position

- Secondly: business strategy will force manager to analyze and predict

conditions in the future environment

12

Trang 13

GRIGG UNIVERSITY

- Thirdly: thanks to business strategy, enterprise will combine the decision - making with business environmental conditions

- Fourthly: business strategy will help managers to use effectively existing resources of the enterprises and allocate them in suitable way

- Fifthly: business strategy will help manager to coordinate functions in an organization in the best way based on reaching the general organizational targets

1.1.3 Strategic model

With respect to each term of product, market, customer, there will be a relative independence Each enterprise will have different strategies for different operational levels As usual there are 3 strategic levels

1.1.3.1 Company-level strategy

It is a type of decisions in a company which defines the purposes, targets of the

company, define the business activities that the company follow, create basic policies

and plans to reach targets of the company

Company-level strategy is aimed to define the business activities in which the company will compete and allocate resources among such business activities

1.1.3.2 Business — unit - level strategy

It is defined to select product or market for private business activities within the company; it will define how the company will compete within a business activity with its defined position among its own competitive opponents

1.1.3.4 Functional level strategy

Functional level strategy is defined to support the arrangement of strategy for the company and focus on the operational sector and business sectors

Each enterprise should have 3 distinguished strategic levels However the fulfillment of strategy must be comprehensive in 3 levels At the same time, due to the strategic orientation, then strategy in higher level will play the more important role

In any level, strategies must follow a basic process :

13

Trang 14

GRIGG 11ÀLI)U/E@6I1TY Companies - Environmental analysis - Define the duty and targef 9Ì Information information — - Analysis of strategic selection - Implementation - Control L Business levels

- Environmental analysis Information - Define duty and targets - Analysis of strategic selection Functional level - Implement - Environmental analysis - Control - Define duty and targets - Analysis of strategic selection - Implement - Control

Figurel.1; strategic levels

1.2 Process of defining business strategy

1.2.1 Define vision, mission and strategic targets

Leader of the enterprise must define the vision, mission and find out strategic targets in long term then analyze business environment, find out strategic options and select strategies to reach long term targets

1.2.2 Study and predict external environment of the enterprise

External environmental analysis is aimed to clearly realize the opportunities and threats in the business activities of the enterprises

14

CG Global Advanced Master of Business Administration

Trang 15

GRIGG UNIVERSITY

1.2.2.1 Macro environment (5 factors)

- Economic factors:

Economic growth rate will arise the new demand for economic sector development; inflate rate will impact on interest rate, investment profitability ratio; unemployment rate, recruitment and dismissal; exchange rate will impact on banking interest, financial policies, salary payment control, payment scale

- Political factor (this factor has become more important ):

Stability of authority; regulations of tax, cost, fees; regulations of recruitment and dismissal; regulations of environmental safety and protection - Social factors Living quality; customs and traditions; regional culture; increase rate of population - Natural factors: Factors including natural resources, environmental pollution, lack of energy - Technological factors:

The fast development of technology has created opportunities as well as threats on the existence and development of the enterprise Enterprise must have plan to apply science and technology in a flexible way to avoid being passive and outdated

1.2.2.2 Micro environment (operational environment)

Operational environment will include factors in the sector and external factors which will decide the competition level and quality of such sector There are five basic factors (5 market forces): customers; providers; replaced products; existing competitive

opponents; and hidden competitive opponents Enterprise must analyze such factors to

realize opportunities and threats that enterprise must cope with

15

Trang 16

GRIGG UNIVERSITY

1.2.3 Study and predict internal factors of the enterprise

This is to analyze the reality of resources in the enterprise to clarify the strengths and weaknesses then find out the methods to promote strengths and limit weaknesses This analysis focuses on the following problems:

1.2.3.1 Analysis of resources in the enterprise

- Human resource: leading machine; professional qualification; moral standards

of employees; adapting capacity to the changes ;

- Financial resource: focus on the problems such as the reality of capital allocation; capital using effect; financial criteria ;

- Technological resource: factory; store system; road; transportation media; machines, equipments ;

- Marketing analysis: this is an important content in internal analysis which allows evaluating capacity to meet market demand of enterprise, focusing on the following problems: product type; product quality, market share, price, trust of customers

1.2.3.2 Analysis of organizational capacity of the enterprise

Evaluating organizational task of the enterprise is to answer two questions: is the organization of enterprise suitable to requirements of business strategy? can it ensure the implementation of given strategy? the contents of this analysis are as follows:

- Reality of organizational structure of enterprise in term of organizational system and operational regulation;

- Adapting capacity of organization to the changes of environment and business conditions

1.2.3.3 Analysis of competitiveness of the enterprise

Competitiveness of the enterprise is the capacity for the enterprise to maintain and improve its own position within the market in a sustainable way

16

Trang 17

GRIGG UNIVERSITY

Factors impact on competitiveness of the enterprise: - Profitability ratio of invested capital;

- Productivity

- Product price and capacity to lower product price; - Trading experiences;

- Flexibility, sensitivity of leading cadres in the enterprise; - Quality of product and service;

- Working environment in the enterprise 1.2.4 Constructing strategic options

Enterprise can have many ways to analyze and find out strategic methods based on its own trading reality However, the using of scientific methods such as model, matrix to analyze will create a more logical, clearer and closer strategic methods

1.2.5 Analysis and selection of strategic methods

Based on analyzing internal and external environment, strengths, weaknesses and threats of the enterprise, SWOT matrix is used to propose differently strategic methods combined with the analysis of IE matrix to study and select strategic methods; select one or a group of methods that are considered to be the most suitable and effective

After analyzing and selecting strategy, leading board will evaluate strategy for owner to make strategic decision to institutionalize selected strategy as the basis for the next steps of strategic process

Trang 18

GRIGG UNIVERSITY - Decision must be based on available resources of the system or must ensure to be mobilized; - Decision must be timely 1.2.6 Strategy implementation:

This is the important period to turn the defined strategies into concrete actions Strategy implementation has deep infiuence on the whole enterprise which impacts on offices and functional divisions With regard to the strategy implementation, individual skills are very necessary Strategy implementation includes strategy development such as supporting budget, cultural program of the company, connected with the system of encouragement and complimenting

Strategy implementation will not only depend on strategy quality but also depend on capacity of manager to promote employees

1.2.7 Check and evaluate strategy implementation

During the process of strategy implementation, enterprise must organize to check and consider whether such strategies can be implemented as expected? There are many reasons to make a certain strategy not to reach given targets Such reasons are due to the changes of environmental background or not attraction of human resource Then it must be via the system of feedbacks and methods of checking and evaluating the implementation

1.3 Strategic analysis models

Trang 19

GRIGG UNIVERSITY

- Entry Barrier (threats from the new competitive opponents); - Competition in the sector;

- Providers; - Customers;

- Replaced products 1.4 Analysis techniques

1.4.1 External factors evaluation (EFE)

EFE matrix will allow strategists to summarize and evaluate information of economy, society, culture, population, geography, politics, government, law, technology and competition

There are 05 steps in developing a matrix to evaluate external factors as follows: - Step 1: make the list of external factors with decisive role on the success of the company including opportunities and threats on the company as well as trading sectors of the company

- Step 2: classify the importance from 0.0 (unimportant) to 1.0 (very important) for each factor This classification can show the importance of such factors on the success of the company

Opportunities will have higher classification level than threats, however, threats

can have high classification in case of seriousness

Total classification level defined for such factors must be equal to 1.0

- Step 3: classify from | to 4 for each factors deciding the success to show the way that current strategy can react to this factor, out of which: 4 is the best reaction, 3 is the above average reaction, 2 is the average reaction and | is the little reaction Such levels will base on the effect of strategy Then the classification will base on the company

- Step 4: the importance of each variable is multiplied by its type to define the point of the importance

19

Trang 20

GRIGG UNIVERSITY

- Step 5: totalize the point of the importance for each variable to define total importance point for the organization

Regardless of the main opportunities and threats included in EFE matrix, the highest total importance point that an organization can have is 4.0 and the lowest total importance point is 1.0 ; total average importance point is 2.5

Totai imporiance point is 4 which can show that the organization has reacted well to the current opportunities and threats in its own environment Total point is 1 which can show that the unit has weak reaction to the external impacts so it cannot make use of opportunities or avoid external threats

Table 1.2: Example of EFE matrix Main external factors | Importance Classification Importance point | - Interest increase 0.20 2 0,40 - Tax reform 0,10 2 0,20 - Technological | 0,30 3 0,90 changes - Population increase | 0,10 3 0,30 - Inflate rate 0,20 3 0,60 - Unemployment rate | 0,10 3 0,30 Total 1,0 257

1.4.2 Internal factors evaluation (IFE)

Like EFE matrix, IFE matrix can be developed according to 5 steps as raised in 1.3.1

CZ Global Advanced Master of Business Administration

Trang 21

GricG UNIVERSITY Table 1.3 : Example of IFE matrix Main internal | Importance Classification Importance point factors -Low — spirit of | 0,22 20 0,44 employees -Product quality is | 0,18 4 1072 °° «| perfect -Marginal profit is | 0,10 3 0,30 higher than sector’s mean - Capital circulation | 0,15 3 0,45 is so high -No_ organizational | 0,30 1 0,30 structure -No force of | 0,05 2 0,10 research and development Total 1,00 2,31 1.4.3 SWOT matrix

Based on analyzing external business environment (opportunities and threats) and internal business environment (strengths and weaknesses) of the company we can construct SWOT matrix

SWOT matrix is the important tool to help managers to develop 4 groups of strategies: strengths - opportunities (SO), strengths- weaknesses (SW), strengths -

threats (ST), and weaknesses - threats (WT) The combination of the important internal

CF Global Advanced Master of Business Administration Program

Trang 22

GRIGG UNIVERSITY

and external factors is the most difficult duty in developing SWOT matrix that requires a good prediction then there will be no best combination

SO strategy will use internal strengths of the company to make use of external opportunities All managers expect their organization to be in the position in which internal strengths can be used to make use of the trend and events of external

environment

WO strategies are aimed to improve internal weaknesses by making use of external opportunities Sometimes the external opportunities exist but the company has internal weaknesses to prevent it from exploiting such opportunities

ST strategies will use strengths of a company to avoid or reduce the influence of external threats This does not mean that a strong organization always meet the threats from external environment

WT strategies are to prevent to reduce internal weaknesses and avoid threats from external environment

To construct SWOT matrix, 8 steps must be done: 1- List the main internal strengths of the company 2- List the main internal weaknesses of the company 3- List the big external opportunities of the company 4- List the important external threats of the company

5- Combine internal strengths with external opportunities and note down the results of SO strategy into suitable box

6- Combine the internal weaknesses with external opportunities and note down the results of WO strategy

Trang 23

GRIGG UNIVERSITY Table 1.4 SWOT matrix O : Opportunities T : Threats 1 Ls Ze 2 3.List opportunities 3.List threats 4 4 S: Strengths SO strategies ST strategies | 1 1 1 Zs 2 2 3 List strengths 3.Use strengths to make 3.Overcome the threats by 4 use of opportunities making use of strengths 4 4 W: Weaknesses WO strategies WT strategies 1 1 1 2 z 2 3 List weaknesses 3 Limit weaknesses to | 3 Minimize weaknesses to 4 make use of opportunities | avoid threats 4 4 1.4.4 QSPM matrix Tools for selecting strategy: QSPM (Quantitative Strategic Planning matrix)

QSPM (Quantitative Strategic Planning matrix) is aimed to evaluate and rank strategic solutions based on which it can select the best strategies This matrix uses input informationfrom all above introduced matrix (EFE, IFE, competitive images, SWOT, IE) To develop QSPM, we must be via 6 steps:

CG Global Advanced Master ot Business Administration

Trang 24

GRIGG UNIVERSITY

Step 1: list the external opportunities/threats and internal strengths/weaknesses o- the company The matrix should include 10 external sucecssful factors and 10 irternal successful factors

Step 2: classify for each external and internal sucecssful factor

Step 3: list strategic solutions that enterprise should consider to implement; gather strategies into private groups if possible

Step 4: Define AS: Attractive Score) of each strategy We just compare stategies in the same group with each other AS is classified as follows: 1 = ccmpletely unattractive, 2 = less attractive, 3 = rather attractive, 4 = very attractive If sicecssful factor does not impact on strategy selection then it will not be scored (it can be removed out of the matrix)

Step 5: estimate total attractive score; it is the results by multiplying classified score (step2) with attractive score (step 4) in each row

Step 6: estimate total attractive score for each strategy The score is high then stiategy will be more attractive

CONCLUSION OF CHAPTER I

Strategic defining is the starting step of a strategic management process However good implementation of this task is an important step leading to orzanizational decision making It can show a logical, systematic and objective method indefining future orientation of an enterprise leading the enterprise to success

Therefore it is a very important task of all organizations

24

Trang 25

GRIGG UNIVERSITY

CHAPTER II: ANALYSIS OF BUSINESS ENVIRONMENT OF NGHE AN NEWSPAPER PRINTING HOUSE

2.1 Introduction of Nghe An newspaper printing house 2.1.1 General information

Nghe An newspaper printing house is located in No 58 — Dao Tan street — Quang Trung ward, Vinh city, Nghe An province Its forerunner is the printing factory belonging to Nghe An paper (since 1983), Nghe An newspaper printing house has become state-owned enterprise pursuant to decision No 821/QD-UB dated 24/04/1993 of Nghe An provincial People’s committee operating within the certificate no 114/GP -IN dated 10/02/1996 issued by ministry of culture and information When being newly established, with total fixed capital of 9.283 million dong, out of which, fixed capital is 7.983 million dong and mobile capital is 1.306 million dong Until now, Nghe An newspaper printing house has constantly developed with stable business activities In current market mechanism, the printing house has developed with independent accounting and profitable trading The change and using printing technology of 2-4 color offset, new generations of paper cutter, glue binding machine, and especially Web-fed Offset Printing Presses/Systems has increased quality, quantity of printed pages to meet demand of customers, well fulfill given political duty Revenue has increased, price is lowered, quantity of customers increase, then living standards of cadres has been improved, and income per capital has increased

After having decision No 24-QD/TU dated 20/02/2001 of Nghe An provincial party’s committee merging financial management board of the provincial party’s committee into provincial party’s committee office, then provincial party’s committee office will monitor and steer the printing house; apart from the function of an enterprise like other enterprises, the printing house must consider the duty of printing Nghe An paper and People’s daily for the whole North Central area as the leading duty Theretore, besides political duty assigned by Nghe An Province to print People’s Daily

25

Trang 26

Gricc UNIVERSITY

Newspaper as the priorty mission under subsidized mechanism, Nghe An Newspaper Printing House operate as a full function printing company with free market mechanism

2.1.2 The main business lines:

The main business iines of the printing house include: printing People’s daily to serve 4 North Central provinces trom Thanh Hoa province to Quang Binh province, printing Nghe An paper and some other specialized papers Besides it also prints some other cultural publication under the form of service

Customers of the printing house are agencies, boards, political organizations in and out of the province Besides printing house is also supported by Thanh Hoa province, Ha Tinh province in printing materials, books, magazines, internal printings, labels; besides the printing house has expanded the market of printing to Laos

2.1.3 Vision, mission

Promote the tradition, potential of technology and equipment to well fulfill political duty assigned by Nghe An provincial party’s committee in printing papers, magazines and printings to serve Party’s organizations, units in the province and neighboring provinces; raise competitiveness, expand production and market then by 2020 it will become the leading printing house in the North Central area After fulfill political duties assigned by the Nghe An province, Nghe An Newspaper Printing House can carry out business contracts with other partners

2.1.4 Organizational structure

The printing house consists of 64 members including 8 engineers, 18 cadres graduating from college; 31 cadres graduating from intermediate school and 7 technical workers

26

Trang 27

GricG UNIVERSITY Figure 2.1: Management model of Nghe An newspaper printing house DIRECTOR Deputy director I l l

Accountin Administr Material Technical

g and ative plan office office budget office office | | Factory Print-out Factory Factory Factory Factory of Factory of of of paper of arrangin printing printing cutting processi z leaflets papers ng >ompute products - word, 2.2 Analysis of environmental factors of Nghe An newspaper printing house 2.2.1 Macro environment

Nghe An is the province located in North Central area, 300 km away from Ha Noi in the South with the biggest natural area in the nation and population of more than 3,1 million people Nghe An province is located on North-South natural way with

Seaport, airport and 3 border gates with Laos, sea, delta and forest Therefore, although

Nghe An province is not located in the economic growth poles of the whole nation, with its own plentiful economic development potentials and important position, Nghe 27

Trang 28

GricG UNIVERSITY

An province and especially Vinh city has been oriented to become the center of

economy, culture, society of the North Central area

2.2.1.1 Economic factors

Together with national development, in recent years (2005- 2010), economic

growth rate of Nghe An province has reached 9,75% annually (the whole nation reaches 7- 8%) In two recent years, in spite of difficulties due to inflate rate, global as well as national financial crisis impacting on economic development, economic growth rate of the province has reached approximately 10% Especially, the Government has approved to master plan and support investment in Nghe An South East economic

zone, Nam Cam industrial zone, Hoang Mai economic zone, Dong Hoi economic zone,

Phu Quy economic zone and many small industrial parks in districts which has created good conditions for the province to attract investment from domestic and foreign enterprises In recent years, Nghe An provincial enterprises have strong development in term of quantity and scale; average growth rate within the period of 2006-2010 reached 30,59 % In 2011 quantity of newly established enterprise was 1.303 enterprises, within 6 beginning months of 2012 quantity of newly established enterprise was 513 enterprises to reduce 22,34 % compared to the same term of the year 2011 Until now, the whole province has 9.894 enterprises and 592 co-operatives to be established; annually the province granted investment license to above 20 projects with total invested capital from 12.000 billion dong to 15.000 billion dong

However, due to global economic and financial crisis impacting on Vietnamese economy, within 2 recent years national economy has been reduced with slow growth

rate, macro economy has been mixed —up Solutions of stabilizing macro economy,

fastening public investment and credit have impacted on the activities of the enterprise 2.2.1.2 Socio-cultural factors

28

Trang 29

GRIGG UNIVERSITY

Nghe An province is a large province with large area (the farthest district is 230km away from the center of the province ), dense population (above 3,1 million p:ople), with many ethnic groups (Kinh, Thai, The, Mong, Kho mu, ỞƠdu ); it has 10 rountainous districts including 3 poor mountainous districts

In spite of having economic difficulties, Nghe An province has traditional fendness for learning which ranks in top 3 cities with the highest quantity of excellent pupils and pupils to pass the entrance exam of the nation Therefore, Nghe An province is one of the provinces to maintain the culture of reading book and paper with rather hgh quantity of publication, system of library and cultural post has been expanded to communes, wards and villages

2.2.1.3 Political, governmental and legal factors

Printing sector has not been ranked into special trading sector but ranked into th: system of cultural and information institutions and many products of the sector

heve served directly the dissemination of the Party’s policies, State’s law, raised social

avareness pursuant to the regulations at Decree No 17/CP dated 23/12/1992 of the Government

Viet Nam in general, Nghe An province in particular have a stable politics Being a big province, Nghe An province has 20 districts and cities and 478 communes, wirds, towns with a network of political system (the party’s organization, authority, frcnts and organizations)

In recent years, Viet Nam is in the period of completing legal system to be sutable to market mechanism In the legal system, publication law had been published in 2004, until 2008 it was adjusted, supplemented with some articles and it has been in the period of submitting to National Assembly for adjustment in 2012 Although the law has created legal corridor in publication, printings, it still has many limitations wlich are not suitable to the new situation Therefore, the problems of pirated books, 29

Trang 30

GRIGG UNIVERSITY

copyright theft, have happened but the punishment regulations are not really strict Nghe An province is also impacted by such problems but in lower level

In term of policy, apart from the governmental policies to support enterprise, on 27/7/2012 financial ministry has promulgated circular no /2012/TT-BTC instructing to implement decree No 122/2011/ND-CP dated 27/12/2011 of the Government defining the details to implement some articles of Corporate income tax, out of which with respect to printing sector, Corporate income tax is 10% instead of 25% since 01/01/2012 for publication and printing in which small and medium sized enterprises will be exempted with 30% corporate income tax in 2012 Besides, enterprise investing in difficult area will be exempted with corporate income tax or enterprise of printing will be exempted with value added tax for paper products, elastic VAT payment for enterprise to import printing machines and equipments

In recent years, Nghe An provincial authority has promulgated many policies to support, attract investment of enterprise such as the polices of land, supporting training workers, encouraging technological innovation With many strong solutions, then in recent years Provincial Competitive Index (PCI) of Nghe An province has been improved, from average level to good level in 2011

However, administrative reforms in procedures, public services, land approach,

infrastructure have limited the development of enterprise within Nghe An province

2.2.1.4 Environmental factors

With regard to printing sector in general and Nghe An province in particular, environmental factor has rather high influence

Printing enterprises in the world and in Viet Nam have cared for the movement of environmental protection Besides, paper products must investigate the origin of materials to avoid deforestation The consumption trend in the world has reduced the plastic labels, packing because they will be difficult to be decayed Nghe An 30

Trang 31

GRIGG UNIVERSITY

newspaper printing house must pay attention to orient the product of printing labels and

packing in the coming years

Moreover, enterprise must care for regulations of environmental law in 2008 in term of discarding waste, waste water after printing to avoid environmental pollution

2.2.1.5 Technological factors

Technology plays an important role in all trading sectors The advances of printing technology will be related to the development of many other industries such as: computer, electronic, optics, informatics technology The typical example is the development of electronic and computer (PC) which impact on production process of printing sector

In recent years, the world and Viet Nam have development fast; equipments, machines and technology of printing sector have quickly developed together with the development of automatic and digital technique This has helped printing sector of Viet Nam and Nghe An province to quickly approach the most modern technology and equipments Besides, internet technology and technique, 3G, 4G, telecommunication have created conditions for fast development of paper, internet This is also the important replaced product to compete with printed books and papers However, a rather important sector that this technology cannot approach is label and packing This sector is considered as development trend by printing enterprises

2.2.2 Sector environment

Vietnamese printing sector is the sector with the fastest development since having the development of automatic technology and informatics technology, from simple printing technology, semi-mechanism, mechanism, and currently semi- automatic, automatic and digital technique with increased speed and quality Being a nation in the beginning period of global economic integration, especially since 31

Trang 32

GRIGG UNIVERSITY

integration into WTO (2007), Viet Nam has quickly approached the newest

technology

In recent time, Vietnamese economy has developed in rather high level which created good conditions for printing sector to develop especially after the appearance

of corporate law (2005), publication law (2004) Within 2006- 2007 when GDP Viet

Nam increased above 8%, then printing sector’s growth rate was above 15% and in those years, there were hundreds of printing enterprise to be established annually Until now, the whole nation has nearly 1500 printing enterprises, out of which there are 717 big printing enterprises (occupying 80- 85% quantity) According to statistical data, then quantity of printed page in 2008 had increased about 9,7%, reaching more than 640 billion printed pages of 13 x 19 cm with 4.154 billion dong revenue, in 2009 it increased about 15,9% reaching more than 742 billion printed pages; in 2010 it increased about 15% reaching more than 838 billion printed pages

However, in recent years, due to economic difficulties, it has impacted on

printing sector; printing demand has reduced (industry has reduced; quantity of printed papers and books also reduces ), while price of input materials and fuels has increase then growth rate of the whole sector is just 5%/year, production effect also reduces (profit on revenue has reduced a half compared to previously and remained 3%) Many small enterprises that are newly established must be closed or temporarily stopped operating Quantity of enterprise with really effective operation has the growth rate of about 20 — 30%, the remaining has been confused in stabilizing production and development

According to the incomprehensive statistical data of department of information and communication, annual printing quantity of organizations and individuals of Nghe An province reaches above 7,3 billion pages (13x19) and there are currently 8 ‘enterprises to be issued with certificates and some private printing enterprises with the capacity of above 10 billion standard pages Due to small scale with the main 32

Trang 33

GRIGG UNIVERSITY

market in the North Central area then the impact of above situation is not as strong as the main areas of Ha Noi city and Ho Chi Minh city

2.2.2.1 Customers:

Customers of printing sector within Nghe An province include many objects

from individuals to economic organizations, political, educational, social organizations

in and out of the province According to the data of department of information and

communication, current demand of printing within the area is about 6,5- 7 billion

standard pages When the economy develops, social income increases then demand of printing will also increase

We can generalize printing market segmentation as follows:

- Paper, magazine: this is the main object of Nghe an newspaper printing house Currently, according to the data of Nghe An VNPT, there are nearly 600 kinds of papers, magazines to be published within Nghe An province including 36 big papers an magazines (there are 6 sheets of Nghe An newspaper and magazine) There are 17 newspaper to publish above 100.000 sheet/year and People’s daily has the highest quantity of sheet (above 2,7 million sheets) and Nghe An newspaper (above 3 million sheets) Moreover, many big newspapers tend to increase publication density to become daily newspaper, increase quantity of page then printing demand will be increased

- Books and other products: according to the data of Nghe An publishing house, annually there are about 150 books to be published with above 30 million pages (in 2011) Besides, printing houses within the area also print products of other publishing house (educational publishing house with 800 million printed page/year), and there are also many customers such as agencies, branches, sectors in provincial level, district level and enterprise within Nghe An province that have printing demands Those are traditional customers

33

Trang 34

GRIGG UNIVERSITY

It is the center of North Central area then customers will be from provinces in the area including Laos (Bolikhamxay, Xiengkhoang, Huaphanh) which are also potential customers

- Labels and packing

This is the fast development trend of global and national printing sector Structure of printing, label in Viet Nam has occupied more than 60% total printed page (the world occupies 70%) Moreover, enterprises of this group have just been established for about 10 years but it has fast growth rate and high stability (out of 30 printing enterprises with revenue of above 100 billion dong/in 2011 then this group has occupied 2/3)

Provincial economy is developing; industrial zones and many factories have been established because of Nghe An provincial preferential treatment In the coming years, demand of printing labels and packing to serve the factories in central area will be very high, which is also the development trend of printing houses

Therefore, apart from specialized printing house then the making use of redundant capacity of equipment and machine to expand product structure will be the trend of Nghe An newspaper printing house

2.2.2.2 Provider

The main material used in the printing house includes: all kinds of paper for printing newspaper, paper for printing other products, printing ink and other kinds of materials

- Paper: Being a nation with large forest area, however, in many recent years Viet Nam must also import paper, paper powder and ancillary materials to produce paper In recent years together with the investment of domestic and foreign enterprises then in 2011 Viet Nam has fully met the demand and started to export paper powder Many factories have invested in modern technology and provided many high quality paper products to compete with imported products

34

Trang 35

GRIGG UNIVERSITY

Domestic paper: is used to print papers, books and some documents of administrative management with low quality, higher sale price than imported paper When joining in AFTA, tariff on imported writing paper into Viet Nam is about 20 % which is a big threat for Vietnamese paper sector However, with stable price and timely supply as well as being a long term partner then the printing house still chooses domestic paper Some big paper factories in Viet Nam such as Bai Bang paper factory, Dong Nai paper factory, Tan Mai paper, Binh An paper are the currently main units to provide paper to the printing house

Imported paper: paper price of Asian nations such as Indonesia, Malaysia is rather cheap compared to some other nations and sometimes it is cheaper than domestic paper However, due to the influence of USD exchange rate on the import quota and global economy, price of imported paper is not stable The paper importer into Viet Nam has controlled the market price then the printing house has limited imported paper but imported the specialized paper to meet high quality demand

- Printing ink: in many recent years, factories of printing ink in Viet Nam have many efforts to meet the demand of low and medium level printing ink for printing houses Low and medium level inked papers have competed with Chinese and Thailand ink But it still cannot meet the demand of high quality printing ink; currently the printing house must import high quality printing ink; price of imported ink is stable with good quality

- Power and water supplies are stable; moreover due to the quality of printing paper in the night then the printing house has saved the expenditure thanks to lower price due to current estimation of power and water sector

- In term of labor force, currently the whole nation has 7 training centers for printing from technical workers to university graduation (including MBA) and annually it trains about 600 newly workers to meet about 25% supplemented demand of the sector The reason leading to this situation is that in recent years printing sector 35

Trang 36

GRIGG UNIVERSITY

has reached low level, average salary of the whole sector has reached 2,5- 3 million dong/person/month then few people pursue this career and even many workers of the printing sector in big cities have transferred to other sectors with higher income

Therefore this is the problem that printing enterprises must care for in the process of personnel management

2.2.2.3 Current competitive opponents

According to the data of Department of information and communication, currently Nghe An province has 8 printing enterprises to be granted certificate including: Nghe An printing joint stock company; Nghe An newspaper printing house; Nghe An printing and form publication joint stock company; Viet Thang printing Co., ltd; FAHASA printing factory; Hoa Nhon private printing enterprise; Au Viet printing joint stock company and exported and consumed product join stock company

Two internal printing centers are printing factory of Vinh university and printing factory of military zone no IV Besides there are also some small printing centers such as printing center of provincial party’s committee office, printing center of Viet Nam — Poland hospital and 2 enterprises of producing and printing packing: Nghe An general trading and packing joint stock company and Military zone no.4 economic cooperation company The center of screen printing has about above 200 units which develop rather quickly after the state has the policy of removing establishment certificate

Total capacity: above 10.000 million standard pages Quantity of the whole sector has increased annually from 8-10%/year (in 2011 it reduced compared to 2010) and reached above 50% total capacity, occupying 0.56% total printing quantity of the whole nation

In term of technology and equipments, apart from Nghe An newspaper printing house equipped with Web-fed Offset Printing Presses/Systems with 4 colors and 2 36

Trang 37

GRIGG UNIVERSITY

towers, other centers are using offset printing technology with the old machine in which the technology before and after printing is incomprehensive with small scale Meanwhile, two newly established units have used the equipments of Germany, Austria, Japan with products to reach international standards This is the advantage of the printing house to compete, however as current situation then this problem is the difficuity of the unit because the capacity is still low (25- 30%), while the printing joint stock company has reached 50% capacity, printing and form publication company has reached above 80% capacity

Products of the printing house are all kinds of papers; products of printing joint stock company are rather plentiful including calendar, manual book ; printing and form publication joint stock company focuses on products which are vouchers, invoice, statistical form Two packing printing enterprises focus on printing packing; printing center of military zone no.4 prints for internal purposes and prints paper for military zone no.4

Most of infrastructure and factories are constructed for a long time which are near the center of the city, with narrow land, difficult to be developed and expanded

In term of capital, excluding the printing house with the highest capital (above 40 billion dong, invested capital of the state), the remaining enterprises have low capital and the resource from owner capital and loans (nearly 10 billion dong)

In term of market share, currently quantity of printing and market share of the printing house and printing joint stock company are similar occupying about 20% total quantity (from 1 billion printed pages to 1,1 printed pages/year) The main advantage of the printing house is to print all kinds of papers which occupies the main market share of such products within Nghe An province; and other products have low market share (about 400 million printed pages/year equal to 40% printing joint stock company and equivalent to printing and form publication joint stock company)

37

Trang 38

GRIGG UNIVERSITY

In term of business effect, although the profit ratio on revenue of the printing house is not different from other units in the sector (the printing house: 3,5%, printing joint stock company: 3,8%, printing and form publication joint stock company: 4%), but in term of the profit ratio on owner capital, the printing house is much lower (such rate of the printing house is 2 %, of printing joint stock company is 3%) Moreover, in

recent years average quantity of the whole sector in the province has increased 6- 7%

but the printing house has increased about 4 % The profitability of printing business is quite low because the production has reached only about 30% of designed capacity of expensive equipment and the printing price for government’s publication is fixed at lower rate than that of market price The company’s revenue from private sector is smller than the revenue from public sector

This has shown that the competition is rather strong within the printed product market However, with its own advantage, in case of suitable strategy then the printing house will have higher competition compared to current opponents

Table 2.2: Multi-dimensional comparison table of some main enterprises Printing General Nghe An|Nghe An

and form | trading and

Comparison newspaper | printing

No publication | packing

criteria printing joint stock

Trang 39

GRIGG UNIVERSITY r 5 | Brand name 3 4 2 ] 6 | Technology 4 2 1 3 7 Equipments and 4 2 ; ; _ machine 8 Financial sthength 4 2 1 3 9 | Personnel 3 COSY 4 | Lo [200 ‘Totalpoints | 20 J8 A 18 2.2.2.4 Entry Barrier

Most of printing enterprises are big with basic investment and high financial capacity and technology focusing in Ha Noi city and Ho Chi Minh city With current economic crisis, the new accession of enterprises into printing sector in Nghe An will be hard In the coming years, when the global and national economy has recovered especially when economic zones, industrial zones in the province are fully covered then it will be sure to have big corporations to invest with small scale and high technology (such as SABECO invest in packing factories after investing in beer factory in Nghe An in recent time) However, printing market in Nghe An has not strongly developed like the markets in big cities where there are big industrial zones and factories Moreover the investment in modern equipments is very costly then big investors that want to invest in printing sector will get barriers They will consider whether to invest or cooperate with an existing printing house in the province And they just invest in printing packing, labels or a new trend

2.2.2.5 Replaced products

Printed paper and reading culture have defined advantages that other products canno: have such as official, archive, popularized, But with the burning of global information as a real demand, electronic books and papers have appeared to bring more conveiience and benefit for readers and society The lower cost of information

39

Trang 40

GRIGG UNIVERSITY

ownership, faster publication, more beautiful and lively presentation, and direct

interface have attracted readers Especially the trend of using printed dictionaries to look the words up has been reduced and transferred to the using of electronic dictionaries Electronic books is also preferable but managing copy right is still a big problem for publishing houses and authors

The trend of using advertised leaflets has been transferred to online advertisement with full information which can make people to search faster

However, labels and packing are the products that internet cannot replace then this is the trend that printing enterprises in the world and the nation have oriented to (in the world the rate of printed packing compared to normal printings is 70/30)

Printed newspaper is also competing fiercely with online news However, the internet access rate in Nghe An and Center Region is not as high as that in big cities such as Ha Noi and Ho Chi Minh cities so the impact of electronic publication is not much Major state newspapers are distributed in form of printed paper

2.2.3 Synthesis of opportunities and threats 2.2.3.1 Opportunities of the printing house:

- The publication law has been submitted to the National Assembly for adjustment and governmental, local policies have been promulgated to remove difficulties for enterprise especially tax policies

- Domestic economy has got the recovery signal; provincial economy has maintained the rather high growth rate especially industrial sectors then the demand of printings, labels, packing will increase in the coming time

- Increased demand of quality of customers is the common trend

- Many papers have demand to increase page, increase number and printing demand in Nghe An province

40