Business strategy formation for Saigon purified water limited company (Sapuwa) for the period 2013 to 2018

Business strategy formation for SaiGon purified water limited company for 2013 - 2018 CAPSTONE PROJECT REPORT BUSINESS STRATEGY FORMATION FOR SAIGON PURIFIED WATER LIMITED COMPANY (SAPUWA) FOR THE PERIOD 2013 TO 2018 Group No.01  LUONG THI MINH THUY(Leader)  PHAN THI KIEU GIANG  TRAN VAN BINH  DO VAN NGHIA Class: GaMBA01.C0311 Ho Chi Minh City, 2013 Business strategy formation for SaiGon purified water limited company for 2013 - 2018 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY FORMATION FOR SAIGON PURIFIED WATER LIMITED COMPANY (SAPUWA) FOR THE PERIOD 2013 TO 2018 Group No.01 LUONG THI MINH THUY(Leader) PHAN THI KIEU GIANG TRAN VAN BINH DO VAN NGHIA Class: GaMBA01.C0311 Ho Chi Minh City, 2013 Business strategy formation for SaiGon purified water limited company for 2013 - 2018 THANKS Firstly, we’d like to thanks The Board of Directors of Center for Educational Technology and Career Development – Vietnam National University, Hanoiand Griggs University,USA, has provided education in Vietnam with conditions for us to to study and complete Global Advanced Master Of Business Administration Program We’d like to thank sincerely and profoundly to the lecturers who teach enthusiastically, wholeheartedly to impart knowledge and enthusiastically guide our group to complete this capstone project report, enabling us to complete this course as well Our group would like to give the deep thank our colleagues, the Director Board of SAPUWA company, class management board and GaMBA01.C0311 class’s members have helped, encouraged and supported for our group to complete well the study program and this capstone project report Ho Chi Minh City, April 2013 Group – C0311 Business strategy formation for SaiGon purified water limited company for 2013 - 2018 TABLE OF CONTENT INTRODUCTION 1.The purpose of the research The targets of the research Research areas Research methodology and data source 4.1 Research method 4.2 Data source The aims of the research Structure of the research CHAPTER 1: THEORIES ON BUSINESS STRATEGIES FORMATION 1.1 Definition of a strategy 1.2 Roles of a strategy 1.3 Classification of strategy 1.3.1 Classification by management involvement 1.3.2 Strategies classification on functions 1.4 Strategies management process 1.5 Business strategy formation methodology 1.5.1 Vision, mission, strategic goals of a company 1.5.2 External environment analysis 1.5.3 Internal environment 11 1.5.3.1 Human resource 11 1.5.3.2 Financial ability 11 1.5.3.3 Marketing and selling operations 12 1.5.3.4 Management activities 12 1.5.3.5 Technology: 13 1.6 Toolkit for strategy formulation 13 1.6.1 External factor evaluation matrix (EFE Matrix) 13 1.6.2 Internal factor evaluation matrix (IFE Matrix) 14 Business strategy formation for SaiGon purified water limited company for 2013 - 2018 1.6.3 Competitive picture matrix (CPM) 14 1.6.4 SWOT matrix 15 1.6.5 QSPM (Quantitative Strategic Planning Matrix) 16 SUMMARY OF CHAPTER 18 CHAPTER 2: ANALYSIS AND ASSESSMENT BUSINESS PERFORMANCE AND ENVIRONMENT OF SAIGON PURIFIED WATER CO., LTD (SAPUWA) 19 2.1 Background Information of SAIGON PURE WATER Ltd Company (SAPUWA) 19 2.1.1 History and Development 19 2.1.2 Business Philosophy of SAPUWA: “Cleans” 20 2.1.3 Slogan of SAPUWA : “The Endless Purity” 20 2.1.4 Organization of SAPUWA 20 2.1.5 Market and Market Share of SAPUWA 22 2.1.5.1 Market 22 2.1.5.2 Market Share 22 2.1.6 Business Results of SAPUWA in years (2010-2012) 22 2.2 Environmental Factors Affected SAPUWA’s Business Operation 24 2.2.1 Analysis of External Environment 24 2.2.1.1 Macro Environment 24 2.2.1.2 Micro Environment 26 2.2.1.3 External Factor Evaluation Matrix 28 2.2.1.4 Competitive Profile Matrix (CPM) 30 2.2.2 Analysis of Internal Environment 31 2.2.2.1 Structure, Organization Chart and Management Board of SAPUWA 31 2.2.2.2 Human Resources 31 2.2.2.3 Financial Capacity 31 2.2.2.4 Workshop, Machinery and Technology 38 2.2.2.5 Manufacturing Process of SAPUWA’s Bottled Water (Appendix VI) 39 2.2.2.6 Information System 39 2.2.2.7 Intellectual Property and Copyright 39 Business strategy formation for SaiGon purified water limited company for 2013 - 2018 2.2.2.8 Possibility in Research and Product Development 39 2.2.2.9 Marketing 39 2.2.2.10 Internal Factor Evaluation Matrix (IFE) 49 2.2.3 SWOT of SAPUWA 51 SUMMARY OF CHAPTER 52 CHAPTER 3: BUSINESS STRATEGIC PLAN FOR SAIGON PURIFED WATER Ltd COMPANY BY 2018 53 3.1 Mission, Orientation and Development Objectives of SAPUWA by 2018 53 3.1.1 Mission 53 3.1.2 Orientation 53 3.1.3 The developmental goals of Sapuwa by 2018 54 3.2 Formulating and Selecting Business Strategies For SAPUWA by 2018 55 3.2.1 Formulating Strategies For SWOT Matrix Analysis 55 3.2.2 Selecting Strategies via QSPM matrix 60 3.3 Recommendation of Business Strategy For SAPUWA by 2018 65 3.3.1 Solutions for Finance and Accounting 65 3.3.2 Solutions for Management 65 3.3.3 Solutions for Human Resource 65 3.3.5 Solutions for Organization 66 3.3.5.1 Mission of Marketing Division 66 3.3.5.2 Mission of Marketing Division’s Departments 67 3.3.6 Solutions for Market and Market Research Organization 68 3.3.6.1 Solutions for Marketing 68 3.3.6.2 Market Research Organization 68 3.3.7 Building, Consolidating and Developing Customers Relationship 69 3.3.8 Completing Customers’ Complaint-Taking Service 70 3.4 Recommendations 70 3.4.1 Recommendation for Government 70 3.4.2 Recommendation for SAPUWA 71 Business strategy formation for SaiGon purified water limited company for 2013 - 2018 SUMMARY OF CHAPTER 71 CONCLUSION 72 REFERENCES 73 LIST OF APPENDIX i Business strategy formation for SaiGon purified water limited company for 2013 - 2018 LIST OF TABLE AND FIGURE Table 1-1 : Model of global strategic management Table 1-2 : Forces of M.Porter Table 1-3 : External Environment Matrix – EFE Table 1-4 : Infernal Environment Matrix – IFE Table 1-5 : CPM matrix Table 1-6 : SWOT matrix Table 1-7 : QSPM matrix Table 2.1 : Financial annual report of SAPUWA from 2010 to 2012 Table 2.2 : Customers Development through the years (2008 – 2012) Table 2.3 : External Factors Evaluation Matrix Table 2.4 : Competitive Profile Matrix Table 2.5 : Basic Financial Targets in the last years (2010-2012) Table 2.6 : Financial targets Table 2.7 : Product Parttern of Consumption in 2010 - 2012 Table 2.8 : SAPUWA’s Price List Table 2.9 : Price List of Accompanying Products Table 2.10 : EX Works (EXW) of same products of competitors Table 2.11 : Distributing Channels of SAPUWA Table 2.12 : Internal Factor Evaluation Matrix Table 2.13 : SWOT Analysis of SAPUWA Table 3.1 : The SWOT Matrix of SAPUWA Table 3.2 : QSPM Matrix for the group S-O Table 3.3 : The QSPM Matrix for the group S-T Table 3.4 : The Marketing Division Business strategy formation for SaiGon purified water limited company for 2013 - 2018 ABBREVIATION LIST Ltd : Limited EPI : Earth Policy Institute GDP : Gross Domestic Product Sol : Solution Gal : Gallon PQC : Product Quality Control L : Litter MW : Mineral Water BW : Bottled Water M-BW : Mineral and Bottled Water CMW : Carbonated Mineral Water NCMW : Non-Carbonated Mineral Water PC : Polycarbonate PET : Polyethylene Terephthalate WBS : Wine, Beer and Soft Drink HCMC : Ho Chi Minh City VS : Vietnamese Standards USD : United State Dollar VND : Vietnam Dong FHS : Food Hygiene and Safety WTO : World Trade Organization Business strategy formation for SaiGon purified water limited company for 2013 - 2018 INTRODUCTION 1.The purpose of the research Vietnam market of bottled mineral and drinking water has enjoyed exciting growth, with average annual growth of 26%, and stood at 22% of the total beverage market The attractiveness of the market has drawn interest and participation of various economic forces, both domestic and international, which drove the market to a fiercer competition (Source: AC Nielsen) Being one of the leaders in Vietnam bottled drinking water industry, Saigon Purified Water Company Limited (SAPUWA) has been a major player in the Vietnam market for bottled mineral and drinking water since 1992, and has gained various significant encouraging achievements However, as the market has turned to be very fierce competitive environment, and as a response to the strong move of global integration, SAPUWA is forced to face the business environment with continuous changing, more sophisticated with more unforeseen risk factors In response to the escalating competitive pressure, in order to sustain and grow, Vietnam businesses in general and Saigon Purified Water Company Limited (SAPUWA) in particular are required to form their own suitable, appropriate and efficient business strategies As required by the need found from the current market situation, and with the desire to contribute to the development of a business in the bottled mineral and drinking water industry, the Group One selected to conduct a research on the theme: “Business Strategy Formation for Saigon Purified Water Company Limited (Sapuwa) for the period 2013 to 2018” The targets of the research The primary targets of this research include to figure out the market position of SAPUWA products, with special attention driven on analyzing and assessing the impacts to the company’s business performance of different business factors of both internal and external environments, from which, to define the company’s strengths weaknesses, opportunities and threats Further, basing on findings, the Group One will form a set of business strategies for SAPUWA for the period of 2013 – 2018 with solutions proposed to efficiently implement those business strategies discussed to assure the highest business performance of the company page of 73 ... other companies in the industry, and other sources in the internet page of 73 Business strategy formation for SaiGon purified water limited company for 2013 - 2018 The aims of the research The. .. strategies discussed to assure the highest business performance of the company page of 73 Business strategy formation for SaiGon purified water limited company for 2013 - 2018 Research areas ... Matrix for the group S-O Table 3.3 : The QSPM Matrix for the group S-T Table 3.4 : The Marketing Division Business strategy formation for SaiGon purified water limited company for 2013 - 2018 ABBREVIATION