GRIGGS UNIVERSITY
GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM
CAPSTONE PROJECT REPORT
STRATEGIC BUSINESS DEVELOPMENT OF PETROSETCO VUNG TAU GENERAL
SERVICES JOINT STOCK COMPANY (PETROSETCO VUNG TAU)
PERIOD 2010 - 2015
Group Number: 3
Student’s name:
Bui Thi Minh Chien
Truong Minh Chien Vo Thi Thuy Huong Pham Ke Nghtep
Pham Huu Tri
Trang 2Thank you!
First of all Group 3 sincerely to thank the GaMBA 01 C02
program, the teachers, the monitors, the supervisors has been
communicating and teaching all the most valuable knowledge for us duration the course — Global Advanced Master of Business Administration program
Secondly we would like to say that: the research was completed by the Group 3’s working, However, due to time limited
time, the limited knowledge, so the research haven't good as much
as your respect We would like to receive the comments of the
teachers, lecturers and other suggestions to make this completely
Last of all we would like to thanks you very much and give the best wishes for all of you — who have been enthusiastic to asstst us in the process of implementing this course
Trang 3etrosetc nal ia Griccs) Petrosetco Ving Tau APPECNHH ~~eerryrerrmsvrnrtoorsriip9i09/0SI-B0MEESIH14572050%.5GU00013800035 700-815183.3908/00 l OC | ee ĐEDESS49183050055009109000/904088/281207168092000503/406 28038 l Zp IRESCALCH GUT BOSC sana neee ene nvrernnrneneconrs pes mernsncimer rere EnETENP EUS SHEEN RENEE Rian HENNE CEE 2 3 The lomitations of the Assignment e.cceneneerererar EEE 2 Ú ) WGISWWGEIIG (GĨ ØS6IDTIHIEHS oeserrrerrruontiieroniDUEPSHEDIGEDITODSEIIDDTDHISGGIE010G00NEB 2
CHAPTEE I: THEORY OF STRATEGIC MANAGEMENT 4
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IV ANALYSING PROCESS AND STRATEGIC CHOICES 15
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CHAPTER II: REAL SITUATION ANALYSIS OF PETROSETCO VUNG TAU GENERAL SERVICES JOIN STOCK COMPANY 23 I ABOUT PETROSETCO VUNG TAU GENERAL SERVICES JOIN
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Trang 4Petrosetco Vũng Tàu
Il REAL SITUATION ANALYSIS OF BUSINESS ACTIVITIES OF
PETROSETCO VUNGTAU (INTERNAL FACTORS) VÀ
2.1 Current situation Services Operations of Vụung 'Tau Petrosetco Al
eee 27
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2.8 Analyzing business results and financial condition from 2008 to 2010 4]
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CHAPTER III : STRATEGIC PLANNING AND IMPLEMENTATION OF STRATEGIC SOLUTIONS CORPORATION OF GENERAL SERVICES PETROLEUM VUNGTAU PERIOD 2011 -2015 .- 555cc 30 L,SIRATEGH PLANNINEG QDĐQDD.-Đ kkkesrarirrnnnirgrbieHDInnGLtTEGIVG1SE200000EĐ7A 53
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H ANALYSIS AND CHOICE OF STATEGY IN PERIOD 2011 - 2015 56
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II SOLUTIONS BUSINESS IMPLEMENTATION STRATEGY 72
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LIST OF TABLES
CHAPTER I: THEORY OF STRATEGIC MANAGEMENT 4 Table 1.1 Matrix assessment of internal ÍaCfOFFS G5559 56 10 Table 1.2 Matrix assessment of external ÍACfOFS 005G 95056 12 Table 1.3: Matrix 1mage Competitions sceeseeeeeeeennrnndiiniaiiskii008950615406601506160585665 14 Table 1.4 SPACE at ix seeaeeaeeennedaranrarnnninpinitatikgtitoasrxatt09509115800EE665690505915668144 17 Table 1.5 Strategic nia tr tt eeeeserridderdennnnnnnnnniatgsiipbrlgS05000019950665856515598586800565 19 Table 1.6: Strategic planning matrix QSPM co HH H01 996 Z1 CHAPTER II: REAL SITUATION ANALYSIS OF PETROSETCO VUNG TAU GENERAL SERVICES JOIN STOCK COMPANY -<<<<< 23 Table 2.1 Customers of Petrosetco Vung “Tau o5 <5 5555 s93 55225 28 Table 2.2 Labour structtireé (31/12/2010) .sssscecssvesseserseensacenvennenavsscansaccenecees 34 Table 2.3 DEGPGe Gf LAD OF sssinesiecere rr cemeee ee ERORTORERERRCTEED 34 Dable DA Wort 6 vecsesessrn scsi eissteteespooreasnsomnemnnneniinin ners 35 Table 2.5 Market share competition was dominated from 2008-2010 39 THBIE 5:6 SHDDIEESoeearaerensrnrbtirridtittoTttitTtigtxiÏPGRSSSEE4619X36181900000800080161004 489980008 40 Table 2.7 Business results from 2008 — 201Í 0G G9065 956 41 Table 2.8: The ratio of fiscal 2009 and 20 Í() 0o G5 S5 959565589996 42 Table 2.9 Internal factors evaluation mAfFÏX <5 5< se e9 55 44 Table 2.10 External Factor Evaluation Matrix (EFE Matrix) « 46 Table 2.11: Some key indicators of the OSC (2008 — 20110) <- 49 Table 2.12 Some key indicators of Getraco period (2008 — 2010) 50 Table 2.13 Competitive matrix of Petrosetco Vung 'Tau 5- << s« 51 CHAPTER III : STRATEGIC PLANNING AND IMPLEMENTATION OF STRATEGIC SOLUTIONS CORPORATION OF GENERAL SERVICES
PETROLEUM VUNGTAU PERIOD 2011 -2015 - 5-5 5555 s<s s<s5 53
Table 3.1 Five year 2011-2015 business plan of Petrosetco Vung Tau 53 Table 3:2 SWOT Analysis ccccsscssssssvsssscssacsaasescansrssatsadpeapiearnenereusresevenenasonsannocentonnns 56
Table 3.3: The elements of the matrix SPACCE 55 S556 195555, 60
Table 3.4 Main sirafÍEpic THÍ TK eeeepesaaiiiiiii01121610122102561499.x65010160048073041660 m6.ss6 63 Table 3.5: The proposed strafegies in each mAfFÏX 55555 s5 s2 65 Table 3.6 QSPM Matrix —Group of strategies for focused growth 0000 66 Table 3.7 QSPM Matrix — Group of strategies for integrated growth 68
GaMBA01.C02.G.3
Trang 8Griccs) Petrosetco Viing Tau
LIST OF FIGURES, GRAPHS
CHAPTER I: THEORY OF STRATEGIC MANAGEMENT 4
Figure L.1 Strategic planning Giagra mM snccssvcssssessacsssvssssssnssvesnnsnnsesasesevensosssssccossens 4 Figure 1.2 Strategic management MOdel : ccssssscseresesensssssassssesesascesesessanssssoneess 6 Figure 1.3 Diagram describing the enterprise value chaiïn 7 Figure 1.4 The external environment affecting businesses .- 10 Figure 1.5: Competitive environment of Michael Porter . 13
CHAPTER It: REAL SITUATION ANALYSIS OF PETROSETCO VUNG TAU GENERAL SERVICES JOIN STOCK COMPANYY -«- 23
Figure 2.1 Organizational chart of Petrosetco Vung Tau < = << 26 Figure 2.2 Market share of catering companies in Ba Ria Vung Tau 48 CHAPTER III : STRATEGIC PLANNING AND IMPLEMENTATION OF STRATEGIC SOLUTIONS CORPORATION OF GENERAL SERVICES
PETROLEUM VUNGTAU PERIOD 2011 -2(015 - 5< 555 ««ssse+ 33
Trang 9Some pictures of Petrosetco Vung Tau
Trang 11Checking the vegetable and fruit before loading in container send to the rig
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Gricod) Petrosetco VingTau
INTRODUCTION 1 Topic’s reason
Enterprises have to plan the business strategy in order to be successful in business They need a thorough understanding of the market to find out customer’s need Especially when Vietnam is one of the official members of the World Trade Organization, (WTO) Vietnamese companies need obey the market’s mechanisms in organizing the business operation for instance: building their own appropriate strategy for the business and ready to accept competition among rivals to increase the market share In order to win a larger market share and the growth of the
business is continuously improve efficiently, it is imperative to build a business-
Strategies appropriately, so the company can orient the operation according to their
setting-out business objectives
In case of Petrosetco Vung Tau General Services JS company operating in the field of catering service on the sea rigs (Catering Services) - an essential area and relates directly to health of Oil and Gas experts who are working in an especially environment as the sea rigs The exploration and exploitation activities of oil and gas are considered to be to develop continuously not only in the Ba Ria- Vung Tau province, but also in many internal-external areas
For nearly 30 years, despite of many achievements of Petrosetco Vung Tau in providing services that meets customer needs, it also have some shortcomings and inadequacies in operation and business activities due to the inappropriate
strategies, such as: Marketing activities are not strong, staffs are not dynamic and
the low-level competition, so providing Catering services is constantly attacked by competitors to dominate market, that leads to decrease business targets In this case, Catering operations have to confront many difficulties and challenges
All these reason above encourage group 3 to research the project: "Developing Business Strategies of the Petrosetco Vung Tau General Services Joint
GaMBA01.C02.G.3
cS Giobal Advanced Master of Business Administration l
Trang 13Griccs) UNIVERSITY Petrosetco Ving Tau
Stock Company (Petrosetco Vung Tau) in period 2011 - 2015" in order to make MBAO1.C02 course Graduation Project
2 Research purpose
Based on the methods of economic analysis, the actual investigation, synthesis of relevant documents, and manipulating the basic theoretical knowledge - gained from previous courses and especially during time of learning MBA01.C02 about company strategy, business strategy, marketing strategy, branding strategy, human resource management strategy, and assess the actual business of the Company, the assignment include following purposes :
- To clarify the business environment in the life service field of the
Petrosetco Vung Tau General Services Joint Stock Company to find strengths - weakness, build models and choose business strategies for Petrosetco Vung Tau
The essay is also planning objectives and implementation of strategic solutions for next 5 years and proposing recommendations to PetroVietnam, the associated levels
with the best policies for support Catering services of Petrosetco Vung Tau
3 The limitations of the Assignment
This study was completed by the hardworking of Group 3 However, because catering services at sea rigs is a specialized section, this essay can only be applied to
companies operating in this area In addition, due to time as well as the limited
researchers view, the data collection may be diverse and inevitable shortcomings Group 3 would like to receive the comments of the teachers, lecturers and other suggestions to make this completely
4 The Structure of Assignment Introduction
Chapter 1: THEORY OF STRATEGIC MANAGEMENT
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Chapter 3: STRATEGIC PLANNING AND IMPLEMENTATION OF STRATEGIC SOLUTIONS CORPORATION OF GENERAL SERVICES
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CHAPTER I: THEORY OF STRATEGIC MANAGEMENT
I Defining STRATEGY:
The term “strategy” is widely used in business and life; so many different concepts are created by experts:
- According to Michael Porter, strategy is defined: * Unique competitive position of the enterprise;
* Compromise and the choice for competition;
* Other business activities;
* Gives customers a unique value mix
- Other scholars: strategy is a plan achieving the organization’s objectives - Although there are many views on the strategy, according to us strategy is a set of long-term basis objectives, which fit in the vision, the mission of the organization to achieve goals in the best way, so that we can increase the strengths and overcome weaknesses of the organization, welcome the opportunities, avoid or
minimize risks from external environment Il STRATEGIC PLANNING:
As defined the strategy, we must consider the internal environment and external environment of enterprises, in order to determine:
- Strengths and weaknesses of the business, including capabilities and its core
values
- Opportunities and challenges in business section for enterprises such as opportunities, risks in technology, economic and law changes
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Griccd Petrosetco Ving Tau
Analysing the internal factors helps us understand the advantages, for example: what we can do better than competitor and what things we can improve, repair , so that we can find out our position in order to plan the strategy
Analysing the external factors affecting the business help us understand the operation of business- sector, such as which factors are affecting the market and the attractiveness Finally, we can learn how the factors affecting and affected by the
business and competition
It STRATEGIC MANAGEMENT PROCESS:
Strategic Management can be defined as an establishment of art and science,
implementation and evaluating decisions related functionally, it allows an
organization to achieve those goals In this definition, strategic management focuses
on integrating all the management, marketing, finance and accounting,
manufacturing, research, development and information systems, business sectors in one place to achieve the success of the organization
According to Fred R David, strategic management process includes three
stages: creation, implementation and evaluation
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Global Advanced Master ot Business Administration 3
Trang 17Petrosetco VingTau Feedback t Ỉ I ! ¡rễ |
Environmental studies Establish | 4] Set annual I to identify long- I goals : a I opportunities and term ' threats goals 1 I | ! Á 4 } i I l | mmm====——1lPFFF T 1 1 ; Measure
Identify tasks, Review of I Distribution | | đ
objectives and business + >! of resources [* al Ị Ị evaluate current strategy tasks I I \ 1 | performanc ! ! 4 l I I I Ỷ ¡_ Ý 1 Internal controls to 1 I Selection | ,| Propose 1 identify the |_J | strategies | 1] policies l strengths and i \ weaknesses ' I I l I ! | | I I l | | I Feedback Creation Implement | Assessme nt 1 F——— ation |
Figure 1.2 Strategic management model - Source: Fred R David
We will focus on analysing the strategic creation’s stage compared with two stages remaining (strategic implementation and evaluation strategies), because the core value of the research is to develop business strategies for companies
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3.1 Identify tasks, objectives and current strategy of the organization
This is a starting point in the strategic management because the current situation of the company can reduce some of the strategies and specific action Each organization has the tasks, goals and strategies, even these factors are not set up or
written out
3.2 Review of business tasks
The mission of business is to establish priorities, strategies, plans and
allocation of work This is the starting point for setting up the schedule and management structure This review allows Enterprises to outline the direction and set goals
3.3 Environmental studies
The environmental research focused on the identification and assessment of trends, events which overcome the control of company Environmental operation of the enterprise is divided into two categories: the macro environment and operational
environment
3.3.1 Environment for micro enterprises
According to Michael E Porter's entire business operations are divided into
two major categories: primary activities and support activities
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a) The basic operation: is physical activities that are related to physical creation, sale and delivery of products (actually added value) to customers as well
as, the after- sale works
Internal logistics: is activities that includes receiving, storing and managing the
inputs of the business such as: (1) To receive inputs (machinery, equipment, materials), (2) Manage materials, (3) management of materials storage, (4)
Pregramming for media activities, (5) transportation plan, (6) Return of goods to the supplier made to convert the input into product
Production: are all activities to convert inputs into final products such as: (1) Operating machinery and equipment, (2) Packing and packaging, (3) Assembly, (4) Storm equipment maintenance, (5) Check
External Logistics: are activities of the company to bring the product to customers, such as (1) Management of semi-finished products, (2) Storage of finished products, (3) operating distribution facilities, (4) The process of ordering and processing
orders
Marketing and sales: (1) Advertising, (2) Promotion, (3) Sales, (4) Select the distribution channels, (5) Establish the relationship between the distribution
channels
Services: (1) Installation (2) customer training, (3) Repair, (4) Settlement
requirements, customer complaint
b) Support activities: is the activity that supports the basic operation and supports each other Procurement, technology development and human resource Management can support for the entire chain Infrastructure of the enterprise is not affiliated with a single major operation and only support for the entire value chain Shopping: buying all the inputs used in the value chain such as: (1) purchase of raw materials, (2) purchase of raw materials and energy, (3) purchase of machinery,
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laboratory equipment, office equipment, premises, (4) Procurement management software, (6) supply sources management
Technology development: are the activities that relate to improve our products and
processes of business activities
Human resources administration: including the three main activities:
- Attracting human resources: (1) work Analysis, (2) human_ resource planning, (3) Recruitment
- Training and development - Maintain human resources
Infrastructure of the company: including activities such as general management, planning, finance, accounting, legal support, relationships with government agencies to support the entire value chain
c) Internal factors evaluation matrix (IFE)
This matrix has summary function and evaluates the important strengths and weaknesses of function business parts IFE matrix is developed in five steps:
Step 1: List the critical success factors
- Step 2: Importance assigned by sorting from 0.0 (not important) to 1.0 (very
important) for each element The total number of critical levels of 1.0 to
- Step 3: Classification from | to 4 for each element, lis the biggest weakness, 2
is the smallest weaknesses, 3 is the smallest strengths, 4 is the greatest
strengths
- Step 4: Multiply the important level of each factor with its classification (= step 2 x step 3) to identify critical points for each variable
- Step 5: Plus a total score of the importance of each factor to determine the total number of important points for an organization
GaMBA01.C02.G.3
CG Global Advanced Master of Business Administration 9
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The highest important total score is 4.0; least is 1.0; average is 2.5 Total scores are greater than 2.5 indicate the internal strength of the company, less than 2.5 indicates the weakness internal company
Table 1.1 Matrix assessment of internal factors The Number of The main internal factors Important | Classification | important level points i, Total 1,00 - 3.3.2 Macro environment of business:
Figure 1.4 The external environment affecting businesses - Source: Slide lecture
Strategic Management of Griggs University
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Griccs) Petrosetco Vũng Tàu
a) There is six major external forces affecting businesses:
Politics: is the politics of the country where the enterprise is operating, tendency of changing policies and regulations of the host country, changing the law (tax law, business law, and land law), and policies to encourage investment in the regions, industries and fields The role of state-owned economy, nationalizing
Economics: inflation, unemployment, GDP (adjusted for growth), the exchange rate (export problem), the interest rate (cost of capital), the psychology of
foreign investment and domestic investment, economic downturn cyclical, and the
price of basic raw materials: electricity, water, fuels ., the rate of consumption and Savings
Demographics: population size, age structure, geographic distribution, racial diversity, income distribution
Culture, society: consumer and social trends, family structure, social- consumption habits, level of community awareness
Technology: scientific and technical qualified development in our industry sector, the introduction of new products base on new technology, new production methods base on savings (less labour), new management models
Global influence: important politics, economic world’s events, the changes
of new industrial countries, the difference from cultural characteristics and
institutions
b) External factors evaluation matrix (EFE)
This matrix helps us to summarize and quantify the influence of environmental factors to the business The development an EFE matrix consists of five steps:
- Step 1: Make a list of factors that play a decisive role to the success and identified in the macro-environment of the assessment process
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Global Advanced Master of Business Administration 11
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- Step 2: Sort importance from 0.0 (not important) to 1.0 (very important) for each element The classification shows the importance of factors to succeed in the business of the company General classification levels must be equal to 1.0 - Step 3: Classification from 1 to 4 for each determinant of success 4th is a
good reaction, 3 is above average, average is 2 and | is weak
- Step 4: Human importance of each variable with its classification (= step 2 x step 3) to determine the important score
- Step 5: Plus a total score of the importance of each variable to determine the total number of point, which is important to an organization
Regardless of the number of opportunities and threats in the matrix is the total number of the highest importance that a company can have is 4.0, the lowest average of 1.0 and 2.5 Table 1.2 Matrix assessment of external factors The Number of The main external factors relative | Classification | important importance points Total 1,00 -
c) Operational environment of enterprises
In order to analyze the operational environment (or micro-environment and
environmental sectors) of the business, we apply the model in the power of Michael E Porter (1980) expressed by the following diagram:
CG Global Advanced Master ot Business Administration
Progra
Trang 24G Grid) Petrosetco VingTau UNIVERSITY Rivalry among competing firms Bargaining power of suppliers Threat of Bargaining substitute power of products buyers
Figure 1.5: Competitive environment of Michael Porter - Source Michael E Porter The threat of new firms: is the barrier for entering
Advantages of scale; The difference in the product; capital requirements; transfer fee; The access to distribution channels; real cost advantages without regard
to size, government policy, possible action can be applied
Power of suppliers: will increase if:
Small number of large-scaled suppliers and vendors Few appropriated substitutes, small number of clients , products of suppliers is extremely important in the winning of customers-heart in the market; Changing other products may be expensive, the supply is able to penetrate deeply into the branches of the seller
Negotiating power of customers Buyer power will increase if:
Large and quantity buyers are few; buyers consume most of the product; Buyers have a large proportion of the annual revenue for sale; switching costs is low; the purchaser is able to penetrate to the sellers, buyers have full information
The threat of substitute products
The threat of substitute products increases as:
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Buyers do not pay high costs when switching products, prices of substitutes is lower, quality and effectiveness of the product are better than alternative products are currently being used; this threat will exclude the product which is highly appreciated by customers
Intensity of competition in the industry
Competition in the sector will increase if:
There are competitors which is as strong as the company; this business
section grows siowly or declines, high fixed costs or high costs of storage; hard to create opportunities for differentiation or switching costs is low, when a company wants to branch out
Identifying opportunities and threats: after evaluating the factors and forces from outside the company will identify: the opportunities have to catch, the threat
have to avoid
Matrix image competition identifies the main competitors, along with their advantages and disadvantages; the way to build matrix image competition is an
extension of the evaluation’s matrix of external factors Competitors:
Table 1.3: Matrix image competition
L Competing firm | Competing firm Company moel 1 3 The ‘ Numbe Numbe Numbe Success relative r of r of r of
factors importa | Classif Classif Classif
import import import
nt ication ication ication
ant ant ant
points points points
(C2 Global Advanced Master ot Business Administration 14
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IV ANALYSING PROCESS AND STRATEGIC CHOICES
4.1 Establish long-term goals
- The long-term objective shows the expected results why we pursuit that
strategy The strategy indicates the measures to achieve long-term goals Timeframe
for the objectives and strategies must be get along each other, usually from 2-5 years
Each target is often accompanied by a period and associated with some indicators such as growth of capital, revenue’s growth, the level of profitability, market share, level and basis of the combination longitudinal
4.2 The process of formation and strategic choices: Include 3 stages 4.2.1 Stage 1: Input
This phase summary the basic information being entered into the form that needed for the strategy During this period, we will create the matrix: the matrix
elements evaluated the internal factors, the matrix evaluated of external factors and
matrix image competition
4.2.2 Stage 2: Combine
Focusing on making realistic strategy can be selected by arranging, combining elements inside and outside the key The techniques used in this phase
include: matrix threats - Opportunities - strengths - weaknesses (SWOT) matrix
strategic position and action analysis (SPACE), the matrix factors inside and outside (IE) and grand strategy matrix
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a) SWOT matrix
Identify the strengths and competitiveness: is a strong point as a company operating and doing well or a characteristic increase competitiveness of the company for examples: Capacity, human resources or know-how valuable property
is worth, assets held, Intangible assets; the basic competitiveness; alliance and
association
Identify weaknesses and competitiveness inefficient: a weakness is an activity and the company made a loss or reduction properties of the company's competitiveness such as: Inefficient in terms of know-how or experience or capacity, lack of tangible or intangible asset, don’t’ have core competence in basic areas
Identify the challenges from outside:
The introduction of these technologies is better / cheaper, competitors have better products, complex regulations, interest rates rise; capability will be acquired; The migration of the population exchange rates; The politics is instable
The role of SWOT analysis in building a better strategy
Building a clear understanding of the company: strengths and weaknesses, the best opportunities and challenges, all of these will lead top conclude how to mobilize resources inside and outside the company, thinking strategically to
strengthen the company's resources for future
There are 8 steps to build a SWOT matrix:
¢ List the major opportunities in the external world
* List the main threat
¢ List the major inner strength
¢ List the major weaknesses in intern
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¢ Combining inner strength with the external world the opportunity to create
SO -strategy
¢ Match internal weaknesses with external opportunities to form strategic gender WO
* Combine with inner strength with threats to form ST -strategy ¢ Match internal weaknesses with threats to form WT- strategy
SWOT tool to help managers make four types of strategies:
°Ồ SO Strategy (Strengths - Opportunities): use of inner strength of the company to catch the opportunities in the external world
* WO Strategy (Compliance - Opportunities): reduce internal weaknesses by taking advantage of the opportunities from the external world
¢ ST Strategy (Strengths - threats) using the inner strength of the company to
avoid or reduce the threat of external world
b) WT Strategy (Compliance - threats) is defensive strategies aimed at
reducing internal weaknesses and avoids threats from external world c) SPACE matrix
This matrix is used to evaluate the operation of the business, and determine the situation of the business The axis of the matrix represents the two aspects in the
organization: financial strength (FS) and competitive advantage (CA) and two outside business aspects: environmental stability (ES) and strength of the sector (IS)
Table 1.4 SPACE matrix
Features Strategy should use
Aggressive The company is in the best Penetration, market
Trang 29Griccs) Petrosetco VingTau backward, forward, horizontally, links diversification, diversification focus Combining multiple strategies
Conservative Companies should work Penetration, market with the basic capability development, product
development and
diversification of focus
Defensive Companies should focus on Strategic spending limit,
improving internal eliminate, liquidate and
weaknesses and avoid diversify focus
external threats
Competitive Strategy combining back, forward, horizontally, entry strategies, market
development, product development venture
d) Internal — external factors matrix (IE):
IE matrix put the different parts of the organization to include a 9 cell IE matrix based on two main aspects, the total number of critical points on the axis of the IFE matrix X (denoted point: from 1.0 to 1.99 is weak inside, from 2.0 to 2.99 average, from 3.0 to 4.0 is strong) and total points on the Y axis is important (denoted point: from 1.0 to 1.99 is low, from 2.0 to 2.99 is average, from 3.0 to 4.0
is high)
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IE matrix can be divided into three major sections; each section includes the various Strategies
- The parts are in boxes I, II, IV can be called "development and construction." Appropriate strategies, such as a focus strategy (market penetration, market development, product development) or combined (combining backward,
forward and horizontal)
- The parts are in boxes III, V, VII can be called "Hold and maintain."
Appropriate strategies, such as market access, product development
- The parts are in boxes IV, VIII, [X is the section "harvested and remove”
e) Strategic matrix:
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‘Corner IH Corner IV
|
.1 Reduce spending 1 Diversifying concentrated la, Diversifying concentrated |2 Horizontal diversification
3 Horizontal diversification |3 Diversifying link 4 Diversifying connection |4 Venture 5 Remove 6 Liquidation SLOW MARKET GROWTH 4.2.3 Stage 3: Decision
This phase covers only a technical - strategy matrix can be quantified (QSPM matrix) QSPM matrix using inputs through the analysis of stage 1, and the combined results of the analysis in Phase 2, to determine the objective of these strategies can replace
Strategy matrix can be quantified (QSPM): six steps to develop a matrix QSPM:
- Step 1: List the opportunities / threats and other important external strengths / weaknesses inside the company
- Step 2: Classification for each critical success factors inside and outside This
classification is just like the IFE and EFE matrix
- Step 3: use Matrix in the phase 2 (combined) and identify possible alternative Strategies that organizations should consider for implementation, write them on first line, put strategies into separate groups if possible
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- Step 4: Determining the gravitational point of each strategy (AS) Point of attractions is distributed as follows: | is not attractive, somewhat attractive is 2, 3 and 4 is quite fascinating and very attractive If successful factors do not affect the choice strategy, we don’t have to mark it
- Step 5: Calculate the total number of attractions (TAS), is the result of multiplying the number of classification (step 2) with some interesting points (step 4) in each row
- Step 6: In total attraction for each strategy That is the sum of total attractive strategy in the column The higher score indicates more attractive strategy
Table 1.6: Strategic planning matrix QSPM The strategy can be selected Main factors Class | Strategy 1 | Strategy 2 | Strategy 3 | Strategy 4 ificat T AS | TAS | AS| TAS | AS| TAS | AS| TAS Incernal factors Ex:ernal factors Tocal attraction point - - “ ws Summary of Chapter 1
In this context, there are major changes in business environment, increasing narket competition is shown clearly, businesses want stability and sustainable
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development, have appropriated business strategies To create the business strategy, we must analyze the external environmental factors as well as local business to identify the factors affecting business activities
In Chapter 1, this assignment shows some basic theoretical- knowledge about strategies such as the concept planning strategies, management processes and matrix business strategy
The basic knowledge about theory and strategic management and business strategies mentioned in Chapter | is the basic foundation for creating the business
strategy of the Petrosetco VungTau General Services Joint Stock Company
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CHAPTER II
REAL SITUATION ANALYSIS OF PETROSETCO VUNGTAU GENERAL SERVICE JOIN STOCK COMPANY
I ABOUT PETROSETCO VUNGTAU GENERAL SERVICES JOINT STOCK COMPANY
1.1 General information about Petrosetco Vung Tau General Services Joint Stock Company
- Name of company: PETROSETCO VUNGTAU GENERAL SERVICES JOINT STOCK COMPANY
- English trading name: PETROSETCO VUNGTAU GENERAL SERVICES JOIN STOCK COMPANY
- Abbreviation: PETROSETCO VUNG TAU - Head office address: No 63, 30/4 Street, Ward 9, Vung Tau City - Tel: 84 — 64 - 3832170 - Fax: 84 — 64 - 3832234 - Email: setcocatering@vnn.vn - Website: www.petrosetco.com.vn Ba - Logo of company: “HH - Registered Capital: VND 32.400.000.000 (VND thirty-two billion four hundred million)
- Business registration certificate: No 3500835690 by Department of Planning
and Investment of Ba Ria Vung Tau province, dated 03 January in 2008,
which changed the 3rd time in June 6, 2010
1.2 About the main business activities of the Company - Provide catering services for offshore petroleum projects
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- Provide both international and domestic rigs and platforms in petroleum industry with food drinks, fuel, gasoline as well as equipment for daily life - Doing other businesses based on the oriented strategies of the Petrrosetco
and Petrovietnam
The company is currently providing catering service for 30 drilling platform and providing foodstuff for 48 oil-rigs In addition, the company also provides other
onshore gas processing factories with catering services as well as other kinds of
services
1.3 About the catering services
Catering sservices is directly done on the drilling platform that consists of two main parts:
- Meal supply;
- Cleaning services for bedrooms and offices on drilling platform;
Oil and gas drilling, exploration and exploitation normally have people with
many nationalities working together on the oil-rigs and platforms All duties on
drilling rigs and platform are hard and long-time jobs Therefore, customers can easily upset if service caterers are not dedicated and careful
Catering services style need to suit different culture and nationalities The menu
must be diverse and must not overlap in the same month Catering staff must be
carefully recruited, have good health, good foreign language, well trained in
cooking with careful and dedicated serving styles
Cleaning duties in oil rigs and platforms such as bedroom, table cleaning and
laundries are highly industrialised jobs Hence, cleaning staff should know how to
use detergent in order to clean up things with gentle and dedicated attitude
Equipment that needs to be invested is the large food storage systems including cold storage, vegetable storage, materials storage and container system
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like frozen containers, dry containers, vegetables container First stage food processing system also needs to be built together with micro-sterilization system
Build and apply quality control measures according to international standards
such as ISO 9001-2000 and HACCP system
The process of service implementation from making plan to purchase food from vendors, move into storage, safety check and transfer into dedicated containers After that, catering companies contact and coordinate with sea-port
Operators to transfer foodstuff into service rigs which will carrier the food to oil rigs
and platforms All stages of procurement, first-stage processing, storage and transportation must be implemented according to made-schedule, technical
procedures, followed by with dishes processing procedures based on the requested and approved menus of the customers menu on oil rigs and platforms
Requirements for service quality: Catering Company has to know its customers in terms of psychology, economics, culture and_ religion characteristics For example; European customers like eating more meat than Japanese customers who love to eat more seafood Meanwhile, Islam guests do not
eat food which is made from pork and Hindu do not eat beef All of these are to
ensure customers accept the company’s services
1.4 Vision - Mission - Core Values - Business Philosophy
Vision: "To become a leading company in Vietnam in catering services" Mission: "Create the highest value for customers and shareholders; provide all company’s staff lives with full of material and plenty of spirit; share the results
with the community and contribute to the development of oil and gas industry of
Vietnam"
Core values: "Create real value through hard work, effort and creativity"
Business philosophy: "Safety - Efficiency - Development" 1.5 Organizational structure and apparatus:
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- Company leaders include:
* Board of Management: 5 members (01 President work full time, 04 members — work occasionally according to agreed schedule):
* Board of Directors: 04 members (01 Directors, 03 Deputy Directors)
# Supervisory Board: 03 members (01 supervisor work full time, 02 members work occasionally according to agreed schedule):
- Management Departments: includes 6 function Departments (Finance and Accounting, Human and Organization, Commerce, Planning and Materials, Safety
and Quality, and Marine Services Departments)
- Service and Production Departments: include Onshore service Management Department which manage 05 service teams In turn, these service teams will support the operation of catering service in 22 Vietsovpetro’s oil rigs, 22 foreign oil rigs, some of onshore customers as well as food supply operation for 48 oil ships
II REAL SITUATION ANALYSIS OF BUSINESS ACTIVITIES OF PETROSETCO VUNGTAU (INTERNAL FACTORS)
2.1 Current situation services operations of Vung Tau Petrosetco 2.1.1 Offshore Catering services:
Onshore catering services have been operating from 1980 and incessantly grow and develop with Vietnam oil and gas industry However, from 2000 to now,
there were more and more oil contractors who joined and started doing exploration
and exploitation in Vietnam As a result, some new catering service competitors entered this market and directly compete with the company that lead to a decrease in market share of the company The catering service activities are currently divided
into two main services:
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a Full package catering service:
The company is providing catering services for 30 drilling rigs, oil storage vessels, and service vessels for the Vietsovpetro Joint Venture Enterprise, Foreign
oil and gas contractors, the Joint Operation Companies in Vietnam such as JVPC,
PVGas, BP Pipelines, Technip, Ballasharm, etc
Most of the market share that the company dominates is market of catering services for Vietsovpetro (VSP) However, Vietsovpetro’s operation mechanism is much bureaucratic and this takes more times and effort of Petrosetco Vung Tau to satisfy Vietsovpetro’s demand In addition, the company’s competitiveness is still weak and less flexible, marketing team is lack of good leader and not working effectively, as well as not active to gain more market share
As a specific characteristic, 90% catering service activities is depending on
the oil and gas exploration and exploitation strategies As a result, it is hard to have a quick development when services are consumed in a very special environment —
offshore oil rigs and platforms, not a normal market On the other hand, the
company have not built a long-term strategy and clear direction for the near future
when more oil fields’ storage is depleting, the exploration and exploitation activities
Trang 40Griccd) Petrosetco VingTau [| - : From 1995 4, VSP (Song Dinh and Ky Van) Catering to day "PETROSETCO - UNIVERSAL SODEXHO Food, From 2008 5 (Smith Borneo work for Su Tu Vang project- container HR to day Cuu Long JOC)