Strategy business of PV OIL Tay Ninh in period 2011 - 2020

CAPSTONE PROJECT REPORT STRATEGY BUSINESS OF PV OIL TAY NINH IN PERIOD 2011 – 2020 Group No.: HOANG THI DUYEN NGO VAN NHIEM TRAN VAN DUONG NONG HUU DUC HOANG SONG TUY DIEM Class: GaMBA01.C0509 Ho Chi Minh City Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 ACKNOWLEDGEMENTS With the accomplishment of this capstone project report, first of all, We would like to say may thanks to all teachers at ETC who had allowed me to attend their classes so that We could get valuable knowledge used as a good background in our capstone project report Moreover, they also gave an enthusiastic performance during our attention, a good symbol for teaching career and source of encouragement for ours to fulfil our report in time Secondly, We would like to send our deep gratitude to Mr Trinh Kim Nhac, Chairman; Mr Nguyen Ngoc Anh, General Director and all of our other superiors and colleagues at PV OIL Tay Ninh have instructed ours everything related to distributing petroleum both in marketplace and in the company and have also shared with ours much of knowledge and experience during our research time, for which We are greatly indebted Finally, We would particularly like to acknowledge with grateful thanks the generous helps from our considerate classmates as well as our other closed friends Ho Chi Minh City, Juny 5th, 2011 Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 TABLE OF CONTENTS INTRODUCTION 06 Problem statement 06 Research objectives 06 Related studies and researches 07 The relevance of research 08 Research methodology 09 Chapter I LITERATURE REVIEW 15 1.1 Understanding „strategy‟ 15 1.1.1 Definition of Strategy and Business strategy 15 1.1.2 Corporate strategy, business strategy and functional strategy 16 1.2 Understanding „competitive advantage‟ 17 1.2.1Definition of Competitive advantage 17 1.2.2 The important of Competitive advantage 17 1.2.3 How companies achieve competitive advantage 18 1.3 Understanding several major business model 19 1.3.1 SWOT analysis 19 1.3.2 Michael Porter‟s five forces 20 1.3.2 Construction tools and option strategy 22 Chapter2 SITUATION ANALYSIS 24 2.1 External analysis 24 2.1.1 Macro external analysis 24 Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 2.1.2 Micro external analysis 30 2.1.3 Michael Porter‟s five forces 43 2.2 Internal analysis 45 2.2.1 Company History 45 2.2.2 Company Mission 45 2.2.3 Business activities 45 2.2.4 Infrastructure 46 2.2.5 Personnel 46 2.2.6 Company structure 47 2.2.7 Business results 47 2.3 Survey results analysis 51 2.3.1 Interview results from the Board of Management 51 2.3.2 Survey results from clients 52 2.3.3 Interview with petroleum experts 56 2.3.4 Summary 56 2.4 Some forecasts 57 2.4.1 Forecast of petroleum demand in Viet Nam and the region to 2020 57 2.4.2 Forecast of petroleum products consumed in Tay Ninh province to 2015 58 2.4.3 Plan 2011-2015 consumption of PV Oil 59 2.4.4 Business result expected in 2011 - 2015 60 Chapter CONSTRUCTION AND SELECTION STRATEGY 62 3.1 Strategy Formulation 62 3.1.1 Vision 62 Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 3.1.2 Objective 62 3.1.3 Core values 62 3.2 General strategy planning 63 3.3 Specific strategy planning 64 3.3.1 SWOT matrix 64 3.3.2 SPACE Matrix 68 3.4 Option strategy 70 RECOMMENDATION AND CONCLUSION 73 Recommendation for marketing activities 73 Recommendation for Claim settlement 74 Recommendation for Human Resource management 74 Other recommendation 75 CONCLUSION 76 BILIOGRAPHY 78 APPENDIX 80 Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 LIST OF TABLE, FIGURES Figure 1-1: Research Framework 13 Figure 1-2: The Strategy Hierarchy 16 Figure 1-3: Porter‟s Five Forces 20 Figure 2-1: GDP Growth of Vietnam 25 Figure 2-2: Petroleum used in Vietnam (thousand CBM) 26 Figure 2-3: Inflation of Vietnam 27 Figure 2-4: Petroleum distribution channe 31 Figure 2-5 - Vietnamese petroleum market share 32 Figure 2-6: Market share of PV OIL Tay Ninh in TayNinh market 42 Figure 2-7: PV OIL Tay Ninh organizational chart 47 Figure 2-8: Sales in volume in 2002-2009 periods 48 Figure 2-9: Sales in value in 2002-2009 periods 48 Figure 2-10: Forecast of petroleum demand in Viet Nam to 2020 58 Figure 2-11: Forecast of petroleum demand of the region to 2020 58 Figure 3-1 Đồ thị hình thành từ ma trận SPACE Table 1: External Factor Evaluation Matrix 30 Table – PV OIL storage system 35 Table : PV OIL sharing or renting storage system 37 Table : PV OIL market share 38 Table 5: GDP Growth of Tay Ninh province 40 Table 6: Picture compete matrix of PV Oil Tay Ninh 44 Table 7: Internal Factor Evaluation Matrix of PV Oil Tây Ninh 50 Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 Table 8: Forecast of petroleum products consumed in Tay Ninh province to 2015 59 Table 9: Kế hoa ̣ch sản lươ ̣ng tiêu thu ̣ các năm 60 Table 10: Dự kiế n doanh thu giai đoa ̣n 2011-2015 61 Table 11: Internal – External Matrix (IE) 63 Table 12: SWOT Matrix 64 Table 13: Space Matrix 68 Table 14: QSPM Matrix 70 Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 GLOSSARY CBM The cubic metre (US spelling: cubic meter, symbol: m3) is the international system of units derived unit of volume It is the volume of a cube with edges one metre in length An alternative name, which allowed a different usage with metric prefixes, was the steres Another alternative name, not widely used any more, is the kilolitre PETROLEUM PRODUCTS Petroleum products are useful materials derived from crude oil (petroleum) as it is processed in oil refineries Major products of oil refinery are diesel, fuel oil, gasoline and kerosene DIESEL Diesel fuel in general is any liquid fuel used in diesel engines FUEL OIL Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power GASOLINE Gasoline is a petroleum-derived liquid mixture which is primarily used as a fuel in internal combustion engines It is also used as a solvent, mainly known for its ability to dilute paints OCTANE RATING The octane rating is a measure of the resistance of gasoline and other fuels to autoignition in spark-ignition internal combustion engines Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 The octane number of a fuel is measured in a test engine, and is defined by comparison with the mixture of 2,2,4-trimethylpentane (iso-octane) and heptanes which would have the same anti-knocking capacity as the fuel under test: the percentage, by volume, of 2,2,4-trimethylpentane in that mixture is the octane number of the fuel For example, gasoline with the same knocking characteristics as a mixture of 92% iso-octane and 8% heptanes would have an octane rating of 92 This does not mean that the petrol contains just iso-octane and heptanes in these proportions, but that it has the same detonation resistance properties Because some fuels are more knock-resistant than iso-octane, the definition has been extended to allow for octane numbers higher than 100 Octane rating does not relate to the energy content of the fuel It is only a measure of the fuel's tendency to burn in a controlled manner, rather than exploding in an uncontrolled manner Where octane is raised by blending in ethanol, energy content per volume is reduced RESEARCH OCTANE NUMBER (RON) The most common type of octane rating worldwide is the Research Octane Number (RON) RON is determined by running the fuel in a test engine with a variable compression ratio under controlled conditions, and comparing the results with those for mixtures of iso-octane and n-heptanes KEROSENE Kerosene, sometimes spelled kerosine in scientific and industrial usage Kerosene is widely used to power jet-engine aircraft (jet fuel) and some rockets, but is also commonly used as a heating fuel and for fire toys In parts of Asia, where the price of kerosene is subsidized, it fuels outboard motors rigged on small fishing craft Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 INTRODUCTION Problem statement Gasoline is a strategic commodity, It meets an economy sectors requirements from industry, agriculture, forestry, fishery to transportation Nowadays there is no alternative fuels for this one so that Vietnam State and consumers also have had an hourly watch on this market Vietnam gasoline systems currently has 11 enterprise hubs There are state companies allowed to import and export gasoline Consumers get it over via general agents or distributor system consisting of about 10,000 dealers and retail filling stations Tay Ninh is a Southeast province of Vietnam It has the frontier with Kingdom of Cambodia in the West and the North, Binh Duong and Binh Phuoc provinces in the Est, Ho Chi Minh City and Long An province in the South It has an important and strategic position also with a long border with Cambodia, extensive forests, high mountains, conveniently sea transportation And it is the gateway to Ho Chi Minh city and other provinces Gasoline market in Tay Ninh is growing well Till March 2011, it had 329 gasoline retailers in which PV Oil has stores under, outlets and 71 agents In 2009, sales in volume of PV OIL Tay Ninh were 72,000 CBM that increased 11 percent in comparison with the implementation of 2008 However, deeply analysis that figure, there were 65,000 CBM distributed in Tay Ninh market and 7,000 CBM distributed in Ho Chi Minh City Thus, in Tay Ninh market, PV OIL Tay Ninh ranked the second position with 39 percent of market share after Petrolimex Tay Ninh who sold 69,000 CBM accounting for 42 percent of market share From 2010, PV OIL Tay Ninh have transformed to a join stock company from a dependent accounting branch of PV OIL Corporation Moreover, in 2010, PV OIL Griggs University – Group GaMBA01.C0509 Page Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020  Build good relationship with PV OIL Corporation PV OIL Tay Ninh should build a good relationship with some functional division of PV OIL Corporation to continue getting information of price and other supports CONCLUSION Petroleum industry nowadays has been changing rapidly and developing at a very fast pace following the changing world environment and economic situation Price competition, the volatile imported price, have all tended to increase, posing further economic challenges to petroleum companies and forcing them to change the way they operate Established in 2001, branch of Petrovietnam Oil Processing and Distributing Company in Tay Ninh province are now named Tay Ninh Petrovietnam Oil Company (PV OIL Tay Ninh) have been one of the most successful petroleum distributor in Tay Ninh province that meet the needs of clients The supports from Mother Company coupled with the increasingly improved internal resources have attributed to the achievements PV OIL Tay Ninh has acquired so far Since PV OIL Tay Ninh operates in an environment characterized by rapid change, it must set operation strategies based on their present strengths in consideration of reducing the impact of their weaknesses All in all, a deep situation analysis of external and internal environment and SWOT enables PV OIL Tay Ninh to take further appropriate steps on satisfying the demand of market and providing profit for the company In the present situation PV OIL Tay Ninh have not yet developed to industrial segment in Tay Ninh market and spread to Binh Duong, Binh Phuoc provinces Therefore, with the objective of increasing market share in Tay Ninh market to 45% in 2011 and increasing sales 15% yearly, PV OIL Tay Ninh have to adopt competitive growth strategies in an effort to proactively seek and seize market Griggs University – Group GaMBA01.C0509 Page 76 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 opportunities This research paper, with a profound analysis on all factors that may concern PV OIL Tay Ninh‟s distributing petroleum activities, has proposed lower price strategies as top priority to apply in PV OIL Tay Ninh in the current situation, serving the aim of increasing market share and sales for PV OIL Tay Ninh in this competitive industry Also, some specific recommendations are suggested to materialize these strategies and to perfect PV OIL Tay Ninh‟s business activities Briefly, in consideration to both the external and internal environment in which PV OIL Tay Ninh are operating, it is believable that the application of the proposed strategies will enable PV OIL Tay Ninh to fulfill their growth in distributing petroleum in Tay Ninh market and vicinity in the next ten-year plan commencing in 2011 Griggs University – Group GaMBA01.C0509 Page 77 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 BILIOGRAPHY I Books Alex Miller, Strategic Management, McGraw – Hill 1997 Henry Mintzberg & James Brian Quinn, The Strategy Process, Prentice Hall College Div, 1991 Anthony W Ulwick, Business strategy formulation, Quorum Books 1999 Harrison, E Frank The Managerial Decision-Making Process (5th ed.) Boston: Houghton Mifflin 1999 McCall, Morgan W., Jr., & Kaplan, Robert K Whatever it takes: The realities of managerial decision making (2nd ed.) Englewood Cliffs, NJ: Prentice6 Hall 1990 Porter, Michael E Competitive Strategy: Techniques for analyzing industries and competitors New York: Free Press 1980 Porter, Michael E Competitive advantage: Creating and sustaining superior performance New York: Free Press 1985 Williams, Steve W Making better business decisions: Understanding and improving critical thinking and problem solving skills Thousand Oaks, CA: Sage Publications 2002 10 Eli Noy, General Management Business Strategy, McGraw – Hill 2003 11 Phillip Kotler, Marketing Management, Prentice Hall International, Inc 2003 12 William J.Stanton, Michael J Etzel, Bruce J Walker, Fundamentals of Marketing, McGraw – Hill 1994 II PV OIL documents Petrovietnam Oil Corporation, Brochure, 2009 Petrovietnam Oil Corporation, Business Activity Report from 2008 - 2009 Tay Ninh Petrovietnam Oil Company, Business Result from 2001 – 2009 Griggs University – Group GaMBA01.C0509 Page 78 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 III Legal Document Decree No 84/2009/ND-CP dated Oct 15th, 2009 about managing trading petroleum activities IV Websites http://www.gso.gov.vn (General Statistic Office of Vietnam) http://pvoil.com.vn http://vneconomy.vn http://1000ventures.com http://marketingteacher.com (Petrovietnam Oil Corporation) Griggs University – Group GaMBA01.C0509 Page 79 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 APPENDIX I RESULTS OF INTERVIEWS with Board of Management of PV OIL Tay Ninh The following people were interviewed Mr Chairman Mr General Director Mr Director of Trading Dept Mr Director of Operating Dept Mr Chief Accountant Section 1: External Environment What are the economic, political, social and technological factors that currently affect or will affect both the company and the industry in which you are operating? Economic factors - High growth rate of GDP - Increasing FDI - Inflation Political factors - Monitored and supervised by MOTI - Priority granted for state-owned companies before the effected date of decree 84/2009/ND-CP dated 15/10/2009 about managing petroleum activities Social factors - Price of petroleum influence to price of other commodities Technological - Applied in data management process (monitor stock, accounting, ) - Developing technology of processing petroleum Griggs University – Group GaMBA01.C0509 Page 80 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 What are the external factors that you see as the opportunities for your company? o GDP of Tay ninh province grow lead to growth in petroleum demand o Increasing margin from support of PV OIL Corporation o Increasing market share from the weaknesses of competitors What are the external factors that you see as the major threats to your company? o Small demand of Tay ninh province o Severe competition from other competitor o Unforeseen fluctuation of world oil price affect business result Currently, how many players are there in the industry? o Whole Vietnamese market: players including Petrolimex Corp, PV OIL Corp, Military Petroleum Company, Saigon Petroleum Company, Petec Company, Dong Thap Trading Petroleum Company, Thanh Le Export and Import Company, Petroleum Marine Trading Company o Tay Ninh market: Petrolimex Tay Ninh company (a subsidiary of Petrolimex Corp), PV OIL Tay Ninh, Saigon Petroleum Company, Petec Company, Thanh Le Company, Petrolimex Saigon Company (another subsidiary of Petrolimex Corp) Who are your company‟s main competitors? - Recent market: Petrolimex Tay Ninh Company - New market of bordering area to Binh Duong and Binh Phuoc provinces: Thanh Le Company What is the distribution channel that your company is now using? - 98% through network of retailers and wholesalers - Direct marketing through own petrol stations What is your company‟s position in the market? - Tay Ninh market: second position with 39% of market share Griggs University – Group GaMBA01.C0509 Page 81 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 What are the clients‟ requirements? o Selling price o Payment: this criteria evaluate the payment policy; payable before delivery or after delivery o Product availability: the ability to meet demand in quantity and time o Time serving: the time that supplier ready serve in day, in week o Location of storage: This criterion evaluates the important of distance between location of storage and consuming areas If the distance is small, the client could save time and cost of transportation o Diversified products: evaluating the ability of supply many type of products o Quantiy and quality of products deliver: evaluating the accuracy of quantity and quality delivered o Serving quality: evaluating the attitude and the behaviour of saleman and staff working in storage Please identify your company‟s five forces basing on Porter‟s model? Rivalry among existing firms: PV OIL Tay Ninh has some big competitors, such as Petrolimex Tay Ninh in Tay Ninh market and Petrolimex Song be and Thanh le Company in Binh Duong market Very high Potential entrants: Doing business in trading petroleum is controlled by Ministry of Industry and Trade obeying the Decree number 84/CP-NĐ of Prime Minister about managing trading petroleum activity The company want to import and distribute petroleum products has to tightly meet some conditions about infrastructure and market share Thus, it is not easy for new entrants to petroleum market Low Suppliers: All of petroleum products that PV OIL Tay Ninh distributing are supplied by PV OIL Corporation Meanwhile, PV OIL Corporation is granted to distribute all petroleum products of Dung Quat refinery with capacity of 6.5 Griggs University – Group GaMBA01.C0509 Page 82 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 million metric ton per year PV OIL Tay Ninh has to buy only from PV Oil Corporation High Buyers: There are some big petroleum traders competing with PV OIL Tay Ninh The customers can leave PV OIL Tay Ninh to go with other competitors if PV OIL Tay Ninh could not give them more value than other competitors The buyers or customers have strong power bargaining Substitutes: The petroleum products are still the main material for any developing economy, for many industries and human live all over the world Thus, in petroleum products of oil industry, it is visible that there is no substitute Section 2: Internal Environment 10 What are the mission, objectives, and strategic business activities, core competences of your company? Mission: - Distributing petroleum of PV OIL Corp in Tay Ninh province and vicinity Increasing market share and return on equities - Efficiently exploiting and safety operating PV OIL petroleum storage in Tay Ninh province Objectives - PV OIL Tay Ninh should strive “to increase the market share to 45 percent in Tay Ninh market in 2011 and be market leader” - PV OIL Tay Ninh should also endeavor “to increase the sales in volume at least 15 percent per year” Business activities: - Exporting, importing, distributing and trading petroleum product, biological fuels, materials, equipments, chemicals, merchandises for the petrochemical filtering industry and processing the petroleum products in domestic and oversea; - Trading in the petrochemical products, nitrogenous fertilizers, chemicals for agriculture; Griggs University – Group GaMBA01.C0509 Page 83 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 - Trading in tanker hiring service; transportation service of petroleum products, biological fuels; transportation service of commodities, materials, equipments, machineries; - Trading in service hiring shore tank, storehouse and ground, putting in, stock and out petroleum products, biological fuels Strategic business activities: „Distributing petroleum‟ is fundamental and will continue to be on focus in long-term strategies In this connection, „hiring shore tank service’ will thus be developed simultaneously Growth criteria: „Market share‟, „profit‟ and „revenue‟ are respectively and unanimously chosen with regard to the level of importance Core competences - The ideal location of petroleum storage creates lower cost and quick time delivery - The support from PV OIL Corporation in price, source of product create lower cost and differentiation - The technology of petroleum processing creates lower cost and differentiation 11 What are the sales of your company recent year? No Category Unit 2002 2003 2004 2005 2006 2007 2008 Volume cbm 10,207 12,105 62,155 64,127 68,044 78,852 64,813 71,989 Value mill vnd 39,714 41,678 313,253 361,462 464,870 658,285 739,959 713,509 12 What is the organizational structure of your company? 13 Could you introduce the company‟s history? - 2001 – 2008: Branch of PDC Company in Tay Ninh province - 2008 – 2009: Branch of PV OIL Corp in Tay Ninh province - 2010: Company model, subsidiary of PV OIL Corp in Tay Ninh province Griggs University – Group GaMBA01.C0509 Page 84 2009 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 14 Please identify your company‟s strengths and weaknesses? Strengths:  Support from PV OIL  Ample financial source to grow business  Business results  Abundant commodities  Expertise in petroleum industry  Management experience  Complete infrastructure in ideal locations  Store: unique in Tay Ninh province and close to Binh Phuoc, Binh duong Province and Ho Chi Minh City  Station: locate in crowded citizen and industrial area  Processing technology  A source of competent staff Weaknesses:  Limited capacity of storage and hard to store all type of petroleum products  Lack of own petrol station to ensure stable distribution  Provide weak financial support to client  Not strong enough marketing activities to reach new market Griggs University – Group GaMBA01.C0509 Page 85 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 APPENDIX II RESULTS OF INTERVIEWS with Petroleum Experts The following people were interviewed Petroleum Director of PV OIL Corp Former Deputy Director, Trading Dept, Petrolimex Sai gon Company Director of Trading Dept, Saigon Petro Company Deputy Director, Trading Dept, Petec Company Director, Trading Dept, Petrolimex Tay Ninh Company What are the economic, political, social and technological factors that currently affect or will affect both the company and the industry in which you are operating? Economic factors - High growth rate of GDP - Increasing FDI - Inflation Political factors - Monitored and supervised by MOTI - Priority granted for state-owned companies before the effected date of decree 84/2009/ND-CP dated 15/10/2009 about managing petroleum activities Social factors: Price of petroleum influence to price of other commodities Technological - Applied in data management process (monitor stock, accounting, ) - Developing technology of processing petroleum What are the external factors that you see as the opportunities for PV OIL Tay Ninh? Griggs University – Group GaMBA01.C0509 Page 86 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 - GDP of Tay ninh province grow lead to growth in petroleum demand - Increasing margin from support of PV OIL Corporation What are the external factors that you see as the major threats to PV OIL Tay Ninh? - Small demand of Tay ninh province - Severe competition from other competitor - Unforeseen fluctuation of world oil price affect business result What are the Key success factors of trading petroleum in Tay Ninh and vicinities market? - Reasonable price: price is the most interesting of petroleum clients The suppliers have to have reasonable price to compete in this market - Product available: beside the competitive price, customers also require availability of product which can fulfill their order at any time - Type of product: Tay Ninh province and vicinity are developing area The average income of citizen in this area is lower than those of other City People usually use low cost petroleum like Gasoline 83 which has price lower 500 vnd per litter than price of popular Gasoline 92 Thus, the distributors have to supply right type of petroleum product to meet demand of this area - Abundant financial capacity: to successful compete in this market; distributors also have a strong financial capacity to give their clients appropriate financial support Especial with industrial clients, who always require payment long time after delivery - Complete infrastructure: distributors require having complete petroleum infrastructure including petroleum storage The location of storage closing to the market is a competitive advantage - Good knowledge and experience in trading petroleum: to get success in this market, distributors also have good understanding about the market and long time experience trading petroleum Griggs University – Group GaMBA01.C0509 Page 87 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 APPENDIX III QUESTIONAIRE We are one group MBA of Griggs University in Ho Chi Minh This questionnaire has been prepared with the objective of studying client‟s satisfaction toward service of PV OIL Tay Ninh The information collected through this questionnaire is used for only my research purpose in an effort to fulfilling my group Capstone Project Report Your anonymity and confidentiality in response to this questionnaire shall be strictly kept Please be frank in choosing your right answers by clicking in the appropriate box Which criterion is the most important with you? Could you rank these criteria base on the level of importance? (1 is most important and is least important)  Selling price  Payment: this criteria evaluate the payment policy; payable before 61-8/3-1/1-3 delivery or after delivery  Product availability: the ability to meet demand in quantity and time 53-3/7-2/2-7/2-8/1-1  Time serving: the time that supplier ready serve in day, in week  Location of storage: This criterion evaluates the important of 64-4/1-6 distance between location of storage and consuming areas If the distance is small, the client could save time and cost of transportation  Diversified products: evaluating the ability of supply many type of products  Quantiy and quality of products deliver: evaluating the accuracy of 53-2/10-3/1-1/1-5 quantity and quality delivered  Serving quality: evaluating the attitude and the behaviour of 63-7/2-8 60-1/5-2 62-5/1-4/1-6/1-3 63-6/2-5 saleman and staff working in storage How you feel about PV OIL Tay Ninh according to these criteria? Criteria Satisfied Normal  Selling price 54 11  Payment: this criteria evaluate the payment policy; 38 24 Dissatisfied Griggs University – Group GaMBA01.C0509 Page 88 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020 payable before delivery or after delivery  Product availability: the ability to meet demand in 59 quantity and time  Time serving: the time that supplier ready serve in 59 day, in week  Location of storage: This criterion evaluates the 65 important of distance between location of storage and consuming areas If the distance is small, the client could save time and cost of transportation  Diversified products: evaluating the ability of 51 supply many type of products 14  Quantiy and quality of products deliver: 64 evaluating the accuracy of quantity and quality delivered  Serving quality: evaluating the attitude and the 64 behaviour of saleman and staff working in storage How you feel the implementation of PV OIL Tay Ninh in comparison with other competitors? Criteria Better Equal  Selling price  Payment: this criteria evaluate the payment policy; payable before delivery or after delivery 59  Product availability: the ability to meet demand in quantity and time 65  Time serving: the time that supplier ready serve in day, in week 65  Worse Location of storage: This criterion evaluates the 65 65 important of distance between location of storage and consuming areas If the distance is small, the client could save time and cost of transportation  Diversified products: evaluating the ability of supply 53 10 many type of products Griggs University – Group GaMBA01.C0509 Page 89 Capstone Project Report – Business Strategy for PV Oil Tay Ninh in period 2011-2020  Quantiy and quality of products deliver: evaluating 65 the accuracy of quantity and quality delivered  Serving quality: evaluating the attitude and the 65 behaviour of saleman and staff working in storage Will you still continue buy or introduce other companies or individuals to buy petroleum of PV OIL Tay Ninh in the coming time? - Yes - 65 No Griggs University – Group GaMBA01.C0509 Page 90 ... 15% 4% 39% PV OIL Tay ninh Petrolimex Tay ninh Petrolimex Saigon Other 42% Figure 2-6 : Market share of PV OIL Tay Ninh in TayNinh market (Source: PV OIL Tay Ninh) In Binh Duong, Binh Phuoc market,... biggest competitor of PV OIL Tay Ninh is Petrolimex Tay Ninh who take 42% of market share in Tay Ninh Differences with PV OIL Tay Ninh, Petrolimex Tay Ninh not have storage in Tay Ninh but they have... head office and all business infrastructure addressed in TayNinh Province, PV OIL Tay Ninh has main duty of distributing PV OIL? ?? petroleum products in Tay Ninh province and contiguous area PV OIL