Building Business Strategy of Vietnam Superintendence and Inspection Corporate in the period 2011 – 2016

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Building Business Strategy of Vietnam Superintendence and Inspection Corporate in the period 2011 – 2016 Group Number: 06 Student’s name: LE XUAN HOANG NGUYEN MANH HUNG DUONG VIET PHU BUI VAN UOC CLASS: GAMBA 01 X0409 HANOI 2011 Strategic Management Capstone Project Report ACKNOWLEDGEMENTS Thank you very much teachers of Global advanced master of business administration program for teaching valuable knowledge and guide us to complete the graduation assignment Thank you chairman of the board Bui Duy Chinh, deputy personnel manager Tran Van Tuan, head of marketing department Nguyen Huong Giang, chief executives of Vinacontrol Assessment Corporation, SGS Company, BV Company, Quatest Company and colleagues who willingly exchange, and providing feedback information With limited ability and time, the capstone project report would remain some shortcomings, we are eager to receive remarks and contribute from you 1/80 Group 06 – Class Gamba01 X0409 Strategic Management Capstone Project Report TABLE OF CONTENTS Acknowledgements 01 List of tables 05 List of draws 06 PREAMBLE 08 Chapter THEORETICAL BASIS OF BUILDING STRATEGIES 12 1.1 Theory of building business strategies 12 1.1.1 Concept of business strategy 12 1.1.2 Stages of strategic management 13 1.1.3 Role of business strategy for enterprises 13 1.1.4 Classify business strategies 13 1.1.5 Define missions, purposes of business 13 1.1.5.1 Missions 14 1.1.5.2 Purposes 14 1.2 Evaluate the external environment 15 1.2.1 Analyze PEST model 15 1.2.2 Competitive model of Michael Porter 17 1.3 Analyze the internal business 19 1.4 Analyze SWOT, SPACE, BCG matrix models 20 1.4.1 SWOT matrix 20 1.4.2 SPACE matrix 22 1.4.3 BCG matrix 23 1.5 Select strategy 24 Chapter ANALYZE THE REAL SITUATION OF THE VIETNAM SUPERINTENDENCE AND INSPECTION JOINT STOCK COMPANY 25 (VINACONTROL) 2.1 Introduction to Vinacontrol 25 2.1.1 History of establishment and development 2/80 25 Group 06 – Class Gamba01 X0409 Strategic Management Capstone Project Report 2.1.2 Functions, tasks 26 2.1.3 Apparatus organization 29 2.1.4 Mission 30 2.1.5 Vision 30 2.1.6 Situation and business results 30 2.2 Analyze business environment 31 2.2.1 Economic environment 31 2.2.2 Social environment 37 2.2.3 Technological environment 39 2.2.4 Political – legal environment 40 2.2.5 Environment in business sector 41 2.2.5.1 Customers 42 2.2.5.2 Suppliers 42 2.2.6 Analyze competition among businesses which are currently present in the market 42 2.2.6.1 Analyze competition among businesses in the same sector 43 2.2.6.2 Potential rivals 45 2.2.6.3 Substitute products 45 2.2.7 Opportunities and challenges 45 2.2.7.1 Opportunities 45 2.2.7.2 Challenges 46 2.2.8 Analyze resources of the company 46 2.2.8.1 Analyze personnel 46 2.2.8.2 Analysis of the financial situation of the Company 52 2.2.8.3 Technical material facilities 62 2.2.8.4 Analysis of the competitiveness 63 2.2.9 Strengths, weaknesses 65 2.2.9.1 Strengths 65 2.2.9.2 weaknesses 66 3/80 Group 06 – Class Gamba01 X0409 Strategic Management Capstone Project Report 2.2.10 Analyze the matrixes: SWOT, SPACE, BCG, GREAT 67 2.2.10.1 Analysis of SPACE matrix of Vinacontrol 67 2.2.10.2 Analysis of BCG matrix of Vinacontrol 68 2.2.10.3 Select the strategy by GREAT matrix 70 2.2.10.4 Analysis of SWOT matrix of Vinacontrol 71 Chapter SOLUTION, SUGGESTION, CONCLUSION 72 3.1 Strategic selection 72 3.1.1 Strategic 72 3.1.2 Strategic 72 3.1.3 Strategic 72 3.2 Strategic targets 72 3.2.1 Continue to be the leading of the market, attack the competitors 72 3.2.2 Enterprise value has the growth of over 20%/year 72 3.2.3 Become a strong economic group 73 3.3 Functional strategies 73 3.4 Strategy of products 74 3.5 Development strategy of distribution channel 75 3.6 Management solutions of the Company 75 3.7 Competitive solution in the market 75 3.8 Solution of products and services 76 3.9 Solution of the finance 76 3.10 Solution of the personnel and apparatus organization 77 CONCLUSION 78 REFERENCE 79 4/80 Group 06 – Class Gamba01 X0409 Strategic Management Capstone Project Report LIST OF TABLES Tables:1.1 Great model and select strategy 24 Tables:2.1 Income statement of vinacontrol from 2006 to 2010 (financial statements of Vinacontrol from 2006 to 2010) Tables:2.2 GDP of Vietnam from 2001 to 2010 (report Vietnam’s GDP, General statistics office from 2001 to 2010) Tables:2.3 CPM competitive matrix of Vinacontrol, SGS, BV, Quatest Tables 2.4 Labors, revenue, capacity (Source: The annual labors report of Vinacontrol) Tables:2.5 Training from 2005 to 2010 (annual training report of Vinacontrol from 2005 to 2010) 30 31 44 47 48 Tables:2.6 Accounting Balance sheet of Vinacontrol 2010 53 Tables:2.7 Report of Business results of vinacontrol 2010 55 Tables:2.8 Statement of monetary circulation (source Finance report of vinacontrol 2010) 5/80 60 Group 06 – Class Gamba01 X0409 Strategic Management Capstone Project Report LIST OF FIGURES Figure 1.1 Microenvironment 15 Figure 1.2 Competitive model of Michael Porter (source alan chapman 2005, based on Michael Porter's Five Forces of Competitive Position 17 Model) Figure 1.3 Swot Matrix 21 Figure 1.4 Space Matrix Model (source H.howe, R, mason and K.dickel strategic management and business policy) Figure 1.5 BCG Matrix Model 22 24 Figure 2.1 Organizational Chart of Vinacontrol (Vinacontrol company’s charter was issued in 2008) Figure 2.2 FDI from January to April (IDF report of Vietnam from January to April of General statistics office Figure 2.3 CPI from January 2010 to April 2011 (CPI report of Vietnam from January to April in General) 29 32 32 Figure 2.4 Import and export from September 2010 to April 2011 (importexport report of Vietnam from September 2010 to April 2011 34 General statistics office Figure 2.5 Vietnam’s gold population structure (General office for population family planning) Figure 2.6 GDP Structure in industries (General Office for Population – Family Planning) Figure 2.7 Labor Structure in industries (General Office for Population – Family Planning) Figure 2.8 Labor qualification structure chart of Vinacontrol (Labor report of Vinacontrol in 2010) Figure 2.9 Labor contract qualification structure chart of Vinacontrol (Labor report of Vinacontrol in 2010) Figure 2.10 Training chart of Vinacontrol (Training report of Vinacontrol in 6/80 37 38 39 46 47 49 Group 06 – Class Gamba01 X0409 Strategic Management Capstone Project Report 2010) Figure 2.11 Assessment of the resource of Vinacontrol Company in 2010 Figure 2.12 Structures of assets (source: accounting balance sheet of vinacontrol 2010) Figure 2.13 Capital structure (source: accounting balance sheet of vinacontrol 2010) Figure 2.14 Revenue and post tax profit chart (source report of Business results of vinacontrol 2010) 50 53 53 55 Figure 2.15 PM chart (source report of Business results of vinacontrol 2010) 56 Figure 2.16 BEP chart (source report of Business results of vinacontrol 2010) 57 Figure 2.17 ROA chart (source report of Business results of vinacontrol 2010) 58 Figure 2.18 ROE chart (source report of Business results of vinacontrol 2010) 58 Figure 2.19: SPACE matrix of Vinacontrol Company 67 Figure 2.20: BCG matrix of Vinacontrol 68 Figure 2.21: GREAT matrix of Vinacontrol 70 Figure 2.22: SWOT matrix of Vinacontrol 71 7/80 Group 06 – Class Gamba01 X0409 Strategic Management Capstone Project Report PREAMBLE  Background, the urgency of research topic: The country’s economy has made great achievements for over 20-year renovation The economy has gradually transferred to the market economy; it has ceaselessly developed, expanded and integrated into the regional and world economy Businesses have operated in the field of business in new environments Apart from new opportunities, they are bigger difficulties, challenges than before, in both domestic and international market The Viet Nam Superintendence and Inspection Joint Stock Company (Vinacontrol) is also an exception Vinacontrol, whose forerunner is the Superintendence and Inspection Company, is the first and largest inspection organization with Vietnam’s top prestige If the Company previously had a large exclusive market and protected by the State, since 1999 up to now there are 125 companies in the field of inspection to establish, so the company must face to bigger competition How the business can grow uninterruptedly, have competitive strengths and win victory in the market economy full of changes and competition is the regular concern of most domestic businesses in economic management, in order to seek and promote comparative advantage to maximum in a very severe environment but including many both opportunities and challenges In such circumstance, knowledge of advanced strategic management, economic theories are the guideline for business operations of all level managers in running and organizing operations of business On that basis, business strategy of the company plays an extremely important role in deciding its existence and development As employees of the company, along with the desire of applying earned knowledge into practice and contributing a partial strength to build the company to become a strong economic group, our group selects the topic: “Build the business strategy of the Vietnam Superintendence and Inspection Joint Stock Company in the period of 2011-2016” for our capstone  Purpose, significance of research topic: The topic aims at building the business strategy of Vinacontrol including Product strategy, price strategy, distribution strategy and promotion strategy Analyze 8/80 Group 06 – Class Gamba01 X0409 Strategic Management Capstone Project Report the reality helps us recognize advantages and disadvantages of the company, then put forth several methods in order to minimize weaknesses, take full advantage of opportunities and promote strengths  Scope of research: Analyze the business environment for the company’s services from 2006 to 2010 to build the business strategy until 2016 for its products in the Vietnamese market  Method of research: Source of data: Primary, Secondary Analysis techniques: PEST, SWOT, Michael Porter’s competitive model, SPACE matrix, BCG matrix, GREAT model, functional analysis  The capstone’s structure: PREAMBLE CHAPTER 1: THEORETICAL BASIS OF BUILDING STRATEGIES 1.1 Theory of building business strategies 1.1.1 Concept of business strategy 1.1.2 Stages of strategic management 1.1.3 Role of business strategy for enterprises 1.1.4 Classify business strategies 1.1.5 Define missions, purposes of business 1.1.5.1 Missions 1.1.5.2 Purposes 1.2 Evaluate the external environment 1.2.1 Analyze PEST model 1.2.2 Competitive model of Michael Porter 1.3 Analyze the internal business 1.4 Analyze SWOT, SPACE, BCG matrix models 1.4.1 SWOT matrix 1.4.2 SPACE matrix 1.4.3 BCG matrix 9/80 Group 06 – Class Gamba01 X0409 ... selects the topic: “Build the business strategy of the Vietnam Superintendence and Inspection Joint Stock Company in the period of 2011- 2016? ?? for our capstone  Purpose, significance of research... CHAPTER 1: THEORETICAL BASIS OF BUILDING STRATEGIES 1.1 Theory of building business strategies 1.1.1 Concept of business strategy 1.1.2 Stages of strategic management 1.1.3 Role of business strategy. .. scope of strategy: A mission statement delivered business theory for businesses and therefore, should define two points: Products and services provided by the business, the business? ??s capacity; then