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CAPSTONE PROJECT REPORT
A Study On Strategic Development of
Hung Vuong University Hochiminh City
For Period 2010 – 2020
Group 01:
Phan Thi Yen Ha
Le Quyet Tam
Nguyen Ngoc Thanh
Tran Van Tuan
Nguyen Thanh Tung
Nguyen Thi Bich Van
Ho Chi Minh City
Dang Thi Dieu Lien
ACKNOWLEDGEMENTS
First of all, we, Group 1, would like to thank Center for Education
Technology and Career System - The National University of Hanoi, has
created conditions for us to join the training program of Griggs University.
The course really helped us a lot to increase knowledge in business
management as well as reality business skills and practical experiences in
the daily works.
In addition, we also sincerely thank all the teachers, professors as
well as responsible members of the program who are very enthusiastic
support for us and the whole class to complete the training.
With this our thesis, we would like to use the knowledge acquired
through the course that have been applied to the actual situation in Hung
Vuong Ho Chi Minh City University to raise the efficiency of strategic
management.
ASSURE
This thesis is the study of our group really, is done on the basis
of theoretical knowledge and research classic survey the real situation.
The data and results of the thesis is true, given the strategy
comes from practice and experience, have never been published in any
form before the presentation and recognition.
Once again, we also committed that this study were writen by
ourself and we have all rights of it.
Finally, I would affirm again the truthfulness of the promise.
TABLE OF CONTENTS
LIST OF ABBREVIATIONS.............................................................................. 5
LIST OF TABLES ............................................................................................... 5
LIST OF FIGURES ............................................................................................. 6
LIST OF APPENDIXES...................................................................................... 6
INTRODUCTION ................................................................................................ 7
1.
Rationale of the study ............................................................................. 7
2.
Objective of the study ............................................................................. 8
3.
Method of the study ................................................................................ 8
4.
Scope of the study ................................................................................... 8
5.
Structure of the study ............................................................................. 9
6.
Scientific and practical significance of the study ................................. 9
CHAPTER 1: LITERATURE REVIEW FOR STRATEGY AND
UNIVERSITY DEVELOPMENT STRATEGY ............................................. 10
1.1. Concept and Role of business strategy ............................................... 10
1.1.1. Concept of Strategy and Business strategy ...................................... 10
1.1.2. Role of Business Strategy ................................................................. 11
1.2. Strategic planning process ................................................................... 11
1.2.1. Determination of vision, mission and goals of the industry,
enterprise ...................................................................................................... 12
1.2.2. Environmental analysis.................................................................... 12
1.2.2.1 The External factors analysis ............................................... 13
1.2.2.2 Value chain analysis ............................................................ 14
1.2.2.3 The Internal factors analysis ................................................ 15
1.2.2.4 Competitive Profile Matrix (CPM) ...................................... 16
1.2.3. Strategic Analysis and Choice ......................................................... 17
1.2.3.1 Locate strategies by Micheal Porter's 5 generic strategy.... 16
1.2.3.2 Strategies in action by SWOT Matrix ................................. 17
1.2.3.3 Determine strategies by SPACE Matrix ............................. 18
1.2.4. Strategy Implementation .................................................................. 19
1.2.5. Solutions to business strategy implementation ................................ 19
1
1.3. Concept and features of private university ........................................ 19
1.4. Legal issues in connection with higher education .............................. 20
1.5. Role of competitive strategy for university ........................................ 20
CONCLUSION OF CHAPTER 1 .................................................................... 21
CHAPTER 2: INTRODUCTION TO OPERATION OF HUNG VUONG
HCMC UNIVERSITY ....................................................................................... 22
2.1. Overview of Hung Vuong HCMC University .................................... 22
2.1.1. History and Development of Hung Vuong HCMC University ........ 22
2.1.2. Product features ............................................................................... 23
2.1.3. Functions and duties ........................................................................ 23
2.1.3.1.
Functions of HVU ..................................................................... 23
2.1.3.2.
Duties ........................................................................................ 24
2.1.4. Organization structure of HVU ....................................................... 25
2.1.5. Salary policy .................................................................................... 26
2.2. Activities of HVU .................................................................................. 27
2.2.1. Training ........................................................................................... 27
2.2.1.1.
Training scale ........................................................................... 27
2.2.1.2.
Training form, profession and result ........................................ 28
2.2.2. Scientific research and international cooperation of the university 30
2.2.3. Material and technical facilities of the university ........................... 31
2.2.4. Finance ............................................................................................ 33
CONCLUSION OF CHAPTER 2 ...................................................................... 33
CHAPTER 3: ANALYSIS OF HUNG VUONG HOCHIMINH CITY
UNIVERSITY’S ACTIVITIES ....................................................................... 35
3.1. Determination of value chain .............................................................. 35
3.2
Analysis of external environment........................................................ 35
3.2.1. Analysis of macro environment ....................................................... 35
3.2.1.1 Political and Legal factors ................................................... 35
3.2.1.2 Economical factors .............................................................. 37
3.2.1.3 Cultural and Social factors................................................... 38
3.2.2. Analysis of micro environment ........................................................ 40
2
3.2.3
The External Factors Evaluation Matrix .......................................... 45
3.3. Analysis of internal environment .........................................................46
3.3.1. Personnel and organization ............................................................. 46
3.3.2. Financial resources ......................................................................... 47
3.3.3. Attractiveness of profession ............................................................. 48
3.3.4. Management capacity ...................................................................... 49
3.3.5. Marketing ......................................................................................... 50
3.3.6. Material facilities ............................................................................. 50
3.3.7
Tuition .............................................................................................. 51
3.3.8
The Internal Factors Evaluation Matrix (IFE) ................................. 53
3.4. Determination of Advantage competition .......................................... 54
3.5. Choice Strategy ......................................................................................60
3.5.1 Determine of generic strategy .............................................................. 60
3.5.2 The SWOT Matrix ............................................................................... 60
3.5.3 The SPACE Matrix .............................................................................. 63
CONCLUSION OF CHAPTER 3 .......................................................................65
CHAPTER 4: ESTABLISHMENT OF DEVELOPMENT STRATEGY OF
HUNG VUONG HOCHIMINH CITY UNIVERSITY FOR THE PERIOD
OF 2010-2020 ...................................................................................................... 66
4.1. Demand forecast ................................................................................... 66
4.1.1. Number of students .......................................................................... 66
4.1.2. Human resources ............................................................................. 66
4.1.3. Material facitlies .............................................................................. 67
4.1.4. Finance ............................................................................................ 67
4.1.5. Marketing ......................................................................................... 67
4.2. Development direction of HVU by 2020 ............................................. 67
4.2.1. Vision Statement for a year 2020 ..................................................... 67
4.2.2. Mission Statement ............................................................................ 68
4.2.3. Directional values and quality policy .............................................. 68
3
4.3. Demand of goals by 2020 ..................................................................... 69
4.3.1. Training ........................................................................................... 69
4.3.2. Research and international cooperation ......................................... 70
4.3.3. Human resources ............................................................................. 71
4.3.4. Material facilities ............................................................................. 71
4.3.5. Finance ............................................................................................ 72
4.3.6. Marketing ......................................................................................... 72
4.4. General development strategy ............................................................. 73
4.5. Solutions to strategic implementation ................................................ 74
4.5.1. Viewpoint of solution development .................................................. 74
4.5.2. Solutions to training......................................................................... 74
4.5.3. Solutions to research and international cooperation ...................... 75
4.5.4. Solutions to human resource development ...................................... 76
4.5.5. Solutions to the implementation of management procedure ........... 77
4.5.6. Solutions to material facilities investment ....................................... 77
4.5.7. Solutions to finance and assets increase ......................................... 79
4.5.8. Solutions to marketing and brand development .............................. 79
CONCLUSION TO CHAPTER 4 ....................................................................... 80
CONCLUSIONS ................................................................................................ 81
SUGGESTIONS ................................................................................................. 83
APPENDIXES
REFERENCES
4
LIST OF ABBREVIATIONS
EFE: External Factor Evaluation
HVU: HungVuong HoChiMinh City University
IFE: Internal Factor Evaluation
CPM: Competitive Profile Matrix
VCA: Value Chain Analysis
SPACE: Strength Position and Action Evaluation
SWOT: Strengths-Weeknesses-Opportunities-Threats
HCMC: HoChiMinh City
VLU: VanLang University
LIST OF TABLES
Table 1.1: The External Factors Evaluation Matrix (EFE) ........................... 14
Table 1.2: The Internal Factors Evaluation Matrix (IFE) .............................. 16
Table 1.3: The Competitive Profile Matrix (CPM) ....................................... 16
Table 1.4: The SWOT Matrix ........................................................................ 17
Table 2.1: Training majors and programs...................................................... 29
Table 2.2: Floor area and number of classrooms ........................................... 32
Table 2.3: Number of equipments and computers ......................................... 32
Table 2.4: HVU‟s Income Statement in 2008, 2009 ..................................... 33
Table 3.1: Analysis of external factors matrix of HVU (EFE) ...................... 45
Table 3.2: Analysis of internal factors matrix of HVU (IFE) ....................... 53
Table 3.3: HVU‟s Competitive Profile Matrix .............................................. 59
Table 3.4: HVU‟s SWOT Matrix .................................................................. 62
Table 4.1: Main strategies .............................................................................. 73
5
LIST OF FIGURES
Figure 1.1: Planning Strategy Process ........................................................... 12
Figure 1.2: Environment analysis model ....................................................... 13
Figure 1.3: Porter‟s 5-forces Model of competition ...................................... 14
Figure 1.4: Value chain .................................................................................. 15
Figure 1.5: Michael Porter‟s 5-generic strategy ............................................ 17
Figure 1.6: SPACE matrix ............................................................................. 18
Figure 2.1: Organization diagram of Hung Vuong HCMC University ......... 25
Figure 2.2: Number and organization structure of HVU .............................. 25
Figure 2.3: Number and qualification of managers of HVU ......................... 26
Figure 2.4: Number and qualification of lecturers of HVU .......................... 26
Figure 2.5: Targets and real number of enrolment over years ....................... 28
Figure 2.6: Compare number of graduates with of enrolment over years ..... 28
Figure 3.1: Value chain of HVU.................................................................... 35
Figure 3.2: GDP growth rate of Vietnam over years ..................................... 37
Figure 3.3: Average income per capital of Vietnam over years .................... 37
Figure 3.4: Targets and number of applications over years .......................... 39
Figure 3.5: The HVU‟s 5-force competition ................................................. 40
Figure 3.6: The level of HVU‟s 5-force competition .................................... 45
Figure 3.7: Ratio of student/lecturer and student/full-time lecturer .............. 47
Figure 3.8: Level of tuition rise ..................................................................... 48
Figure 3.9: Percentage of drop-out students .................................................. 49
Figure 3.10: Target and Number of real enrolment of HVU ......................... 52
Figure 3.11: Target and Number of real enrolment of VLU ......................... 52
Figure 3.12: HVU‟s generic strategy ............................................................. 60
Figure 3.13: HVU‟s SPACE Matrix .............................................................. 65
LIST OF APPENDIXES
Appendix 1: Number and structure of officers, employees and ................... 1a
lecturers of HVU
Appendix 2: Targets, number of application and admission ......................... 2a
Appendix 3: Number of graduates over years ............................................... 3a
Appendix 4: Number of lecturers over years ................................................. 4a
Appendix 5: Number of managers of HVU over years ................................. 5a
Appendix 6: Number of lecturers of VLU over years ................................... 6a
Appendix 7: Targets, number of application and admission of VLU ........... 7a
6
INTRODUCTION
1. Rationale of the study
In 1993, the policy of educational socialization of the Party and
Government was released in order to create favorable conditions for domestic
education and training to develop, promptly provide highly qualified and skilled
human resources for the cause of national industrialization and modernization, by
2010 our country basically becomes an industrial country in the modern
direction, at the same time, in order to meet reasonable demands and desires of
most of the public for studying, improving qualification, upholding the most
valuable tradition of Vietnam – studiousness. Responding to such policy,
together with other private universities, colleges in Ho Chi Minh City and the
whole country, Hung Vuong HCM University was established on the 14th August
of 1995 with the norm of building and developing the “Scientific – Developed –
Ethical” university. It can be said that, for over 15 years of construction and
development, by now, in comparison with other private universities and colleges,
Hung Vuong University has not developed appropriately with its position for
several reasons.
In the context of globalization and WTO integration, in the near future,
many foreign universities will penetrate the education market of Vietnam, in
addition to the competition of many domestic universities and colleges.
Therefore, leaders of Hung Vuong HCMC University is aware that if there are no
changes and development by building a development strategy towards customer
demands and supply of high quality training services, it is sure that the university
will not attract students. So, the university will not be able to self-control its
operating expenditure, which leads to bankruptcy risk. From above real demand,
we chose the topic: “A Study On Strategic Development of Hung Vuong
University Hochiminh City For Period 2011 – 2020”, in order to suggest some
solutions which can be applied by leaders of the university in the reality.
7
2. Objective of the study
In current social context, in comparison with social demand, Hung
Vuong HCMC University has potential and desires to further develop in terms of
scale and quality. Establishment and strategic management require leaders of the
university need to prepare both theoretically and practically in order to promote
the university to higher position. Basis for strategic planning is to re-evaluate
objectively the strengths, weaknesses as well as the capacity to respond to
external factors of the university, then to determine goals as well as to choose
short-term and long-term strategies.
So, objective of the study is to analyze and evaluate comprehensively the
real situation of Hung Vuong HCMC University in order to find strengths as well
as weaknesses, opportunities as well as threats of the university. On that basis,
we will establish Hung Vuong HCMC University development strategy from
2011 to 2020.
3. Method of the study
Descriptive and analytical statistic method: collect and evaluate internal
and external information of the university in connection with operations
of the university.
Forecast method: based on the past data, forecast the future demand.
Specialist method: interview leaders.
4. Scope of the study
Scope of this study is to examine the real situation of operations of Hung
Vuong HCMC University since 1995 and establish theoretical basis for business
strategy of the university, focusing on analyzing basic factors affecting the
establishment of business strategy. From that, we establish development
strategies and solutions to development strategy implementation of Hung
Vuong HCMC from 2011 to 2020.
8
5. Structure of the study
The study consists of 4 chapters, in addition to the introduction,
conclusion and recommendation.
Chapter 1: Literature review of strategy and strategic development
university
Chapter 2: Introduction of HungVuong HCMC University
Chapter 3: Analysis of HungVuong HCMC University‟s activities
Chapter
4:
Establishment
of
HungVuong
HCMC
University
development strategy from 2011 to 2020.
6. Scientific and practical significance of the study
Scientific significance: In the market economy, business strategy is
decisive to the success and failure of an enterprise, business strategy plays an
important role for all enterprises, not only a particular one. Any enterprise
desiring to exist and develop must firstly have a good and effective business
strategy.
There are many approaches to establish a business strategy for an
enterprise. Research topic has a scientific significance of generalizing existing
theories from different sources to establish a business strategy development
procedure for Hung Vuong HCMC University in a basic, easy to understand and
use way.
Practical significance: Real situation of Hung Vuong HCMC University
is also general situation of all private universities in Vietnam at present.
Therefore, this study can also be applied for other private universities having the
same features.
9
CHAPTER 1
LITERATURE REVIEW FOR STRATEGY AND
STRATEGIC DEVELOPMENT UNIVERSITY
1.1. Concept and Role of business strategy
1.1.1.
Concept of Strategy and Business strategy
According to Harvard business handbook, strategy is a military term
originated from Greece and used to refer to the plan of disposing the troops in
battle formation and allocating force in order to achieve goals in the war.
Nowadays, the term strategy is used in many economic fields and understood as
“means to achieve long-term goals”
Business strategy is associated to economic field and interpreted in
various ways. Some popular definitions of business strategy are:
- According to Fred R. David, strategy is means to achieve long-term
goals.
- According to Alfred Chandler, strategy is to determine basic and longterm goals and set up a process of action and distribution of necessary resources
to implement such goals.
- According to Michael E.Porter, strategy is the creation valuable and
unique position, including different activities, the choice, the exchange in
competition, the creation of appropriateness in all activities of the company.
So, business strategy is a combination of goals and policies as well as
major plans to achieve such goals. It clearly shows what business activities the
company has been implementing or what business field the company will be
focus on.
In general, definitions of business strategy, despite of basis differences,
include following contents:
Set up short-term and long-term goals of the organization;
Propose and select solutions to achieve such goals;
Develop and allocate resources to implement the goals.
10
1.1.2. Role of Business Strategy
Nowadays, enterprises in particular and organizations in general pay
special attention to developing strategy. Strategy plays key role in directing and
developing development plan of an organization. Main effects of the strategy in
an organization are recognized as follows:
-
Help enterprises to find clearly their purposes and directions. It forces
managers to review and determine which direction to follow and when to
reach to certain position.
-
Force managers to analyze and anticipate conditions in near future as well
as for future environment.
-
Enterprises shall attach set up decisions to business environment conditions.
-
Help managers to use existing resources of enterprises effectively and
allocate them reasonably.
-
Help managers to combine functions in organizations in the best way on the
basis of achieving general goals of organizations.
“Without a strategy, an organization is like a ship without a rudder, going
around in circles. It’s like a tramp; it has no place to go.” - Joel Ross and
Michael Kami [10, pp 34]
1.2. Strategic planning process
Strategic planning process includes following stages:
-
Strategic model study and choice;
-
Strategic development;
-
Strategic implementation;
-
Strategic evaluation.
In this assignment, we only focus on the stage of studying, choosing and
developing strategy.
11
Figure 1.1: Strategic Formulation Process
Developing a Mission,
a Vision, Goals
Identifying
External Factors
Choosing a
particular strategy
Determining
Internal Factors
Solutions to
Strategic
Implementation
Source: Adapted from Fred R. David, Strategic Management: Concepts and Cases
(Pearson Education International, Twelfth Edition) 37
1.2.1. Determination of vision, mission and goals of the industry, enterprise
“A business is not defined by its name, statutes, or articles of incorporation. It is
defined by the business mission. Only a clear definition of the mission and
purpose of the organization makes possible clear and realistic business
objectives” - Peter Ducker [10, pp 80]
Goal is a concept used to refer to specific business outcome which an
enterprise wishes to achieve.
Short-term goal means specific and detailed outcomes in 1 year. They are
separate outcomes arising in the next decision cycle of an enterprise.
Medium-term goal: means results to be achieved in 3 years.
Long-term goal means goals showing desirable outcomes for a period of
at least 1 year. Long-term goal is normally set up for following issues:
Profitability, productivity, competitive
position,
personnel development,
personnel relation, technical direction, social responsibility.
1.2.2. Environmental analysis
Environment of an organization includes factors, forces, institutions, etc.
inside and outside the organization, affecting operations and operational
outcomes of the organization.
12
Environment of an organization includes internal and external
environment.
Figure 1.2: Environment analysis model
Source: Adapted from Fred R. David, Strategic Management: Concepts and Cases
(Pearson Education International, Twelfth Edition) 104, 106, 136
1.2.2.1 The external environment analysis
External environment of an organization is determined by 5 main factors:
(1) economic factor, (2) cultural – social – natural – environmental factor, (3)
political – legal – policy factor, (4) technical and technological factor and (5)
competitor factor. External factors are divided into two levels:
- Macro environment includes factors from macro management level
affecting all business industries but not necessarily in a certain way. Analysis of
macro environment helps an enterprise realize what it is facing.
- Micro environment (or specific environment) is determined for some
particular industries; all enterprises of the industry are affected by micro
environment of such industry.
Micro environment includes all factors in the industry and external
factors for the enterprises, deciding the quality and level of competition in such
trading and manufacturing industry.
“The opportunities and threats existing in any situation always exceed the
recourses needed to exploit the opportunities or avoid the threats. Thus, strategy
is essentially a problem of allocating recourses. If strategy is to be successful, it
13
must allocate superior resources against a decisive opportunity.” - William
Cohen [10, pp 102]
With the 5-forces model of competition of Michael Porter, external
environment of an enterprise shall be analyzed in terms of such factors as
Customer, Supplier, Current Competitor, Potential Competitor, Substitute
product.
Figure 1.3: Porter’s Five-Forces Model of Competition
Source: Fred R. David, Strategic Management: Concepts and Cases
(Pearson Education International, Twelfth Edition) 118
Based on above analysis, we make the matrix of external factor
evaluation (EFE) in order to determine the capacity to respond to environment of
the enterprise.
Table 1.1: External Factor Evaluation (EFE)
Key factors
Weight
Rating
Weighted
Score
List the
=0 (not important)
=1 (response is poor)
factors for
=1 (all-important)
=2 (response is average)
evaluation
=(Weight)*
(Rating)
=3 (response is above average)
Total Weight = 1
=4 (response is superior)
Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education
International, Twelfth Edition) 126
14
1.2.2.2 Value chain analysis
The value chain is a systematic approach to examining the development
of competitive advantage. It was created by Michael E. Porter in his book,
Competitive Advantage (1985). The chain consists of a series of activities that
create and build value. They culminate in the total value delivered by an
organization. The 'margin' depicted in the diagram is the same as added value.
The organization is split into 'primary activities' and 'support activities.'
Figure 1.4: Value chain
Source: Michael E. Porter, Competitive Advantage, New York, Free Press, 1985
1.2.2.3 The internal environment analysis
Analysis of internal environment is to analyze all factors and internal
system of an enterprise in order to determine strengths and weaknesses of an
organization, on that basis propose measures to limit weaknesses and uphold
strengths to achieve maximum advantage. Main internal factors include such
functional fields as: human resources, research and development, production,
accounting and finance, marketing and general organization order and discipline.
15
Based on above analysis, we make an internal factor evaluation matrix.
Table 1.2: Internal Factor Evaluation (IFE)
Key factors
Weight
Rating
Weighted
Score
List the
=0 (not important)
=1 (major weakness)
=(Weight)*
internal
=1 (all-important)
=2 (minor weakness)
(Rating)
factors for
=3 (minor strength)
evaluation
Total Weight = 1
=4 (major strength)
Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education
International, Twelfth Edition) 168
1.2.2.4 Competitive profile matrix (CPM)
Competitive profile matrix (CPM) identifies a firm‟s major competitors
and its particular strength and weaknesses in relations to a sample firm‟s strategic
position. The weight and total weighted scores in both a CPM and an EFE matrix
have the same meaning. However, critical success factors in the CPM include
both external and internal issues; therefore, the rating refers to the strength and
weaknesses. There are some important differences between EFE and CPM. First
of all, the critical success factors in CPM are broader, they do not include
specific and factual data, and they even may focus internal issues. The critical
success factors in CPM are not grouped into opportunities and threats as they are
in an EFE matrix.
Table 1.3: Competitive profile matrix (CPM)
Critical
Weight
success
Company 1
Rating
Company 2
Score
Rating
Score
Company 3
Rating
Score
factors
List the
The same The same
The same
internal and
EFE
EFE
EFE
external
matrix
matrix
matrix
factors
Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education
International, Twelfth Edition) 127
16
1.2.3.
Strategy Analysis and Choice
Strategy is defined as the match an organization make between its
internal sources and skills and the opportunities and threats created by its external
factors. The matching stage of the strategy-formulation framework consists of 5
techniques that can be used at any sequence: the SWOT matrix, the SPACE
matrix, the BCG matrix, the IE matrix and the Grand Strategy matrix.
1.2.3.1 Locate strategies by Michael Porter’s 5 generic strategies
Michael Porter‟s 5 generic strategies allow organizations to gain
competitive
advantages
based
three
different
bases:
cost
leadership,
differentiation and focus.
Figure 1.5 : Michael Porter’s 5 generic strategies
Source: Adapted from Michael E.Porter, Competitive strategy: Techniques analyzing
Industries and Competitors (New York: Free Press, 1980: 35-40)
Type 1: Cost Leadership – Low Cost
Type 2: Cost Leadership – Best value
Type 3: Differentiation
Type 4: Focus – Low Cost
Type 5: Focus – Best value
1.2.3.2 Strategies in action by SWOT Matrix
Strengths-Weaknesses Opportunities-Threats Matrix is an important
matching tool that helps the managers develop 4 types of strategies: strengthopportunities (SO) strategies, weakness-opportunities (WO) strategies, strengththreats (ST) strategies, weakness-threats (WT) strategies.
17
Table 1.4: SWOT Matrix
Key Internal Factor
OPPORTUNITIES
THREATS
List opportunities
List threats
STRENGTH
S-O Strategies
S-T Strategies
List strengths
Use strengths to take advantage
Use strengths to avoid threats
Key External Factor
of opportunities
WEAKNESS
W-O Strategies
W-T Strategies
List weaknesses
Overcome weaknesses by taking
Minimize weaknesses and
advantage of opportunities
avoid threats
Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education
International, Twelfth Edition) 225
1.2.3.2 Determine strategy by SPACE Matrix
The Strategic Position and Action Evaluation matrix (SPACE matrix)
represents 2 internal dimensions (financial strength and competitive advantages)
and 2 external dimensions (environmental stability and industry strength). These
4 factors are the most important determinants of an organizational overall
strategic position.
Figure 1.6: SPACE Matrix
-4
IS
Defensive
- Retrenchment
- Divestiture
- Liquidation
-3
-2
Aggressive
- Backward, forward, horizontal
integration
- Market penetration
- Market development
- Product development
- Related diversification
-
FS
Conservative
- Market penetration
- Market development
- Product development
- Related diversification
6
5
4
3
2
1
-1
1
2
3
4
CA
-1
-2
-3
-4
-5
-6
ES
Competitive
- Backward, forward, horizontal
integration
- Market penetration
- Market development
- Product development
Source: H. Rowe, R.WMason and K.Dickel, Strategic Management and Business Policy:
A Methodological Approach (Reading, Massachusetts: Addison – Wesley Publishing Co. Inc,
1982) 155
18
FS: Financial Strengths
ES: Enviroment Stability
CA: Competitive Advantage
IS: Industry Strengh
1.2.4. Strategy Implementation
Based on goals of the enterprise, internal and external situation of the
enterprise, develop business strategy. Business strategy includes following basis
contents:
-
Identify and choose opportunity to help the enterprise to achieve its
business goal.
-
Choose target market of the enterprise, which helps the enterprise take
best advantage of opportunity.
-
Choose type of services and products supplied for the target market.
-
Develop marketing strategy for the chosen market and strategy.
1.2.5. Solutions to business strategy implementation
They are solutions in terms of human resources, financial sources,
business management organization, production management, etc. in order to
implement set up business strategies. In other words, it is the arrangement and
allocation of resources of the enterprise to successfully implement chosen
business strategies, for example:
-
Suitable arrangement of enterprise organization structure
-
Allocation of financial sources
-
Establishment of a scientific and effective management model
1.3. Concept and features of private university
According to Regulation on private university issued by Prime Minister under
Decision No. 86/2000/QĐ-TTg dated18/7/2000, private university is defined as
“Higher education agency established by social organizations, social – vocational
organizations, economic organizations (hereafter referred to as organizations)
which mobilize teachers, investors to contribute their effort, money and material
from sources beyond the State budget.” (Article 1)
19
According to this Regulation, private university has following main features:
-
Have the same legal position as public universities in national education
system; (according to Article 2)
-
Subject to public administration in education of Ministry of Education and
Training; subject to administration management in territory of Provincial
People’s Committee, Cities directly under the Central Government (hereafter
referred to as Provincial People’s Committee) where the university is located;
(according to Article 4)
-
Self-control and self-responsible for the master plan, development plan of the
university, organizing training, scientific and technological activities, finance,
international relation, organization and civil (according to Article 7)
-
Charter capital is determined including charter in cash (Vietnam dong or
free convertible foreign currency), gold or assets and no less than 15 billion
VND (according to Article 11)
1.4. Legal issues in connection with higher education
-
Regulation on private university stipulating feature, form, organization
structure, establishment conditions, operation mechanism of the private
university;
-
A set of 10 standards, 53 criteria for quality assessment stipulating
standards for staff, material facilities, learners, from that recognize the
university to meet national standards of not, at what level;
-
Hung Vuong HCMC University regulation stipulating organization
structure, management, operation, individual responsibility of HVU.
1.5. Role of competitive strategy for university
Pursuant Regulation on private universities, private universities can “selfcontrol and take responsibility for the master plan, development plan of the
university, organizing training, scientific and technological activities, finance,
international relation, organization and personnel.”. Therefore, strategic role and
strategic management in general is very importance, since it:
-
Help the university to find its direction in the future to review and decide
which direction and when to achieve a certain goal.
20
-
Help the university to see opportunity and threat in its operation at present
and in the future, to analyze, evaluate and anticipate environmental
conditions in the future, to take advantage of opportunities, to reduce
threats and to overcome the competition to achieve success.
-
Strategic management process helps the university make suitable decision
to cope with each environment, to improve operational efficiency and to
develop the university.
CONCLUSION OF CHAPTER 1
Strategic role and strategic management in general are very important,
developing strategy also takes time and effort; however, the university shall be
compensated with more interests. It is also mistaken to develop strategy hastenly,
rigidly with turnover targets to be achieved.
For education sector, strategy and strategic management help schools,
especially universities and colleges to optimally meet demands of human
resources for the society, to improve level, training capacity in the most difficult
conditions as well as to guarantee the living standard of officers, lecturers and
employees.
In short-term, a good strategy shall help university and college do well
in training human resources for the society in order to best implement the goals
in education and training sector in the most difficult conditions in terms of funds
as well as help university to feel secure in self-controlling, making decision and
taking responsibility in this transitional period.
21
CHAPTER 2
INTRODUCTION TO OPERATION OF HUNG VUONG
HOCHIMINH CITY UNIVERSITY
2.1.
Overview of Hung Vuong HCMC University
University name: HUNG VUONG HO CHI MINH CITY
UNIVERSITY
Date of establishment: 14th August 1995
Traditional date:
9th March (Lunar)
Sector:
Education and Training
Training levels:
University – College – Professional School
Personnel:
150 officers - employees (excluding part-time lecturers)
Number of students: 10,081
Head office:
342bis Nguyen Trong Tuyen, Ward 2, Tan Binh District,
HoChiMinh City
Website:
www.hungvuong.edu.vn
2.1.1. History and Development of Hung Vuong HCMC University
Implementing the policy of education socialization, diversification of
training forms of the Party and Government under the Resolution of the 7th Party
Central Committee on 14/01/1993, some intellectuals led by the late Profession,
Medical master Ngo Gia Hy established a private university in Ho Chi Minh
City. On the 24th of May 1993, Prime Minister Vo Van Kiet signed the Decision
No. 240/TTg promulgating regulations on private university. However, through
review, survey, social opinion investigation, it is found that opening “private”
universities in our country is still new, so on 02/01/1994 Ministry of Education
and Training promulgated the temporary Regulation No. 196/TCCB on private
university signed by Minister of Education and Training Professor Tran Hong
Quan. Due to such adjustment, some intellectuals proposed to establish Hung
Vuong private university and Ministry of Education and Training made decision
on approval No. 2395/QD-TCCB dated 03/11/1993.
22
In the early days since its establishment, the university was named Hung
Vuong private university. Under the Decision No. 122/2006/QD – TTg of Prime
Minister permitting some universities to convert to private universities, including
Hung Vuong private university. Since 12/6/2008 the university was renamed
Hung Vuong University (abbreviated as HVU).
2.1.2. Product features
Products of HVU are determined to provide training services, including:
-
Training bachelors, engineers at university level with the training period of 4
years, regular training, vocational training, connection training programs;
-
Training bachelors, engineers at university level of the second major with the
training period of 2.5 years for the second training program;
-
Training college bachelors with the training period of 3 years for regular
training, connection training programs;
-
Vocational training for pupils finishing high schools with the training period
of 2.5 years for regular training program;
-
Providing short-term vocational training courses supplementing for those of
at least professional level;
-
Providing skill training services such as English, Computing.
2.1.3. Functions and duties
2.1.3.1. Functions of HVU
-
Training personnel to have good political quality, ethics, knowledge and
professional practice skills corresponding to training level, to have health
and capacity suitable for working in the society, creating employment for
themselves and others, to have capacity of equal cooperation in international
relation, to meet demand for national construction and protection.
-
Carrying out scientific research and technological development, combining
training and scientific research and production, scientific services and
technology as stipulated by Laws on Science and Technology, Education
Law and other regulations of laws.
23
2.1.3.2. Duties
To students:
-
Teaching basic knowledge and professional knowledge selected by students
based on their capacity and expectation;
-
Creating environment for student to develop comprehensively in terms of
ethics, intelligence, ability and arts;
-
Creating conditions for developing knowledge and training students to be
able to analyze problems to find solutions;
-
Helping students uphold community spirit; dynamics and creativeness,
combining study and professional practice, school and society, world.
To officers – lecturers – employees:
-
Training experts of high scientific level to meet social demand, at the same
time, maintain the humanity of the profession and uphold the quintessence
of Vietnam‟s culture.
-
Encouraging and creating conditions for members to carry out scientific
research and to apply scientific achievements in teaching, studying contents
and social reality. On this basis, extending domestic as well as international
cooperation;
-
Implementing policies, regulations for members uncontradict with
regulations of the Government; Paying attention to improving professional
level as well as material and spiritual life of members.
24
2.1.4. Organization structure of HVU
Figure 2.1 Organization diagram of HVU
PARTY
COMMITTEE
BOARD OF
MANAGEMENT
Party cells
Trade union
Ho Chi Minh Youth Union
Student association
RECTOR
Vice Rectors
MANAGEMENT
DIVISION
(Offices, Divisions)
- Administrative
- Equipment Management
- Training Bureau
- Student Affairs
- Finance
- Organization, Personnel
and Legal
- TCCN & DN Board
- Science and Training Council
- Other member councils
- Assessment – Inspection – Conclusion
council
TRAINING DIVISIONS
(Faculties, Departments)
- Information Technology
- Business Administration
- Tourism
- Foreign Language
- Hospital Management
- Post-harvest Technology
- Accounting – Auditing
- Finance – Banking
- Construction Engineering
Technology
- Politics
- Foreign Language Center
- Resource Training Center
SERVICE DIVISION
(Services, student support…)
- Library
- Traditional medical
association
- Sai Gon telecommunication
technology institute
- Management quality
institute
- Student support center
- ISO management board
- Information network
management team
Note:
Leadership function line
Coordination function line
Figure 2.2: Number and organization structure of HVU
1. Managers
25
Figure 2.3:
Number and qualification of Figure 2.4:
Managers and Lecturers of HVU
Number and qualification of
Lecturers of HVU
(See Appendix 1, 2)
2.1.5. Salary policy
For officers, managers
Income = Basic salary + Allowance – Teaching pay (if any)
-
Basic salary: is paid according to qualification, senior
-
Allowance: includes responsibility coefficient, teaching salary
According to data of Accounting Division in September 2010, average
income of Manager is 10 million VND, of Vice Dean is 7.5 million VND, and of
senior specialist of at least 5 years is 5.5 million dong.
For lecturers
Teaching salary = Teaching pay + Marking pay
Teaching pay = number of periods * pay rate * crowded class rate
Marking pay = number of exams * norm
According to data of Accounting Division in September 2010, average
income of Dean is 11.5 million VND, of Vice Dean is 9 million VND, and of
lecturer is 6 million VND.
In addition, the University also has other expenses:
-
Expenses for holidays.
-
Expenses for founders, officers, lecturers, employees of the university
-
Expenses for collaborators.
-
Expenses for political, union activities.
26
In general, salary as well as income of officers, lecturers, employees of
HVU is still low in comparison with average income of the society and not as
high as that of other universities, so it is not attractive enough to attract and keep
talented people. Therefore, officers, lecturers and employees of HVU are lack in
comparison with demand.
2.2. Activities of HVU
2.2.1. Training
2.2.1.1.
Training scale
Enrolment target is assigned by Ministry of Education & Training every
year to the university, depending on the operational capacity, material facilities
of full-time lecturers of the university. For the first 10 years, since its
establishment, from 1995 to 2006, due to unreasonable investment in material
facilities, limited number of lecturers, annual enrolment target ranges between
1,000 and 1,500 students. Since 2007, the university has invested remarkably,
since the academic year 2007-2008, especially 2008-2009, 2009-2010,
university, college target of the university has increased to 2,500, of professional
school has increased to 2,500, number of applicants has increased significantly.
Student scale of the university ranges between 3,000 and 4,000 students in
one year. College level is also extended from the academic year 1997-1998. For
3 years, 140 college bachelors major in Information Technology and Tourism
have been trained. At present, college level is being extended and connection to
university level will be implemented. Second certificate training is also
implemented at some Faculties excluded from the assigned enrolment target.
In general, enrolment target of the university has gradually increased over
14 years of operation. Real enrolment decreased in 1998-1999 and 2004-2005
(see Appendix 3)
27
Figure 2.5: Target and real number of enrolment over years
TARGET
REAL ENROLMENT
In addition, the university should face and find measures to repair some
weaknesses including the rate of drop, absence from school of about 40% which
affects greatly to the funds of the university. Causes of this problem include:
- Students subject to drop out of university as stipulated by Ministry due to
poor study results;
- Students dropping out of university halfway;
- Students re-applying into other universities, changing their majors.
Figure 2.6: Compare number of graduates with number of enrolment over years
ENROLMENT
GRADUTES
2.2.1.2.
Training form, profession and result
Training forms of the university are mainly regular programs. At present,
Ministry of Education and Training has assigned in-service training target for the
university. Some majors have short-term training courses upon the social request.
28
Training majors: in the early days since its establishment, there were 04
majors:
Business
Administration,
Applied
Mathematics,
Information
Technology, English; in 1996 more majors were added: Hospital Administration,
Tourism, Japanese; in 2003 Post-harvest Technology major was opened. At
present, the university has 10 faculties namely Politics Department; Information
Technology Department; Business Administration with such sub-majors as:
foreign
trade,
marketing,
production
operation
management;
Hospital
Management; Tourism; Post-harvest Technology; Foreign Language with such
sub-majors as: English, French, Chinese, Japanese; in 2007 Finance and Banking
Department was established; in 2008 Construction Engineering Technology
Department was established; in 2009 Accounting – Auditing Department was
established.
However, number of training majors is low, training contents and methods
are limited, material facilities and equipment for teaching are still poor, there are
no laboratory for students, no sites for practicum, sightseeing meeting training
requirements.
Table 2.1: Majors and Training levels of HVU
MAJOR
Business
Regular
Regular Vocational
university
college
x
x
x
Second
Connec
Professio-
certificate
-tion
nal school
x
x
Administration
Hospital
x
x
Management
Information
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Technology
Post-harvest
Technology
Finance and
Banking
Accounting Auditing
29
x
Tourism
x
Construction
x
x
x
x
x
x
Engineering
Technology
English
x
x
x
Japanese
x
x
x
Chinese
x
x
x
French
x
x
x
x
Web design
X
and
management
Travel
x
practice
Banking
x
practice
Source: Statistics of Training Bureau in September 2009
In general, training affairs of the university has good achievements. Rate
of students finding jobs after graduation has gradually increased and highly
appreciated by users. Survey results of employment of graduated students from
2001 to 2004 are as follows:
54% of students find jobs right after graduation.
96.2% of students find jobs 1 year after graduation.
96.8% of students find jobs by the time of the survey
2.2.2. Scientific research and international cooperation of the university
2.2.2.1 Scientific research
For the past 14 years, scientific research has significantly contributed to
the improvement of training quality and the creation of external connection. In
1997, there were 14 researches have been published, in 1998 there were 07
researches, in 1999 - 11, in 2001 - 13 and in 2008 - 26 at university. Scientific
education internal journal of the university has been published for 11 years.
However, this activity is still small, tattered, there are no works at ministry,
30
national level. Number of officers, students carrying out scientific researches is
limited, quality is not high. This operation needs to be promoted in the future.
2.2.2.2 International cooperation
HVU is studying to establish cooperative relations with many Canadian
universities such as Moncton University, Quebec Montreal University, Sorbonne
University, Belgian universities such as Louvain University, Belgium Freedom
University, Public Health School of Louvain Medical University. By now, the
university has signed memorandum only, no specific agreements due to various
reasons.
International cooperation has a very important meaning in the current
trend of globalization, so in the next strategy, the university is required to
promote this activity more strongly.
2.2.3.
Material and technical facilities of the university
By now, operating agencies of the university are all rented, including:
-
Agency at 736 Nguyen Trai, district 5;
-
Agency at 239 Nguyen Trong Tuyen, Phu Nhuan district;
-
Agency at 146 Vo Thi Sau, district 3;
-
342Bis Nguyen Trong Tuyen, Tan Binh district;
-
59 Che Lan Vien, Tan Phu district.
Since HVU has not had its own agency so it has not equipped modern
technical equipment to serve teaching and studying, scientific research, except
computer rooms for Information Technology Department.
Ho Chi Minh City People‟s Committee has decided to permit the
university to use an area of 25.5 ha in Tan Kien commune, Binh Chanh district to
build a new agency. This is an important premise for HVU to basically settle its
material facilities for HVU development strategy in the future.
31
Table 2.2: Floor area and number of classrooms
No.
MATERIAL FACILITIES
TOTAL AREA (ha)
1
Land area
28.194 ha
2
Construction area (24,305m2)
Remarks
Total land area of
28,194ha, of which
Number of
Number
classroom
of m2
26, 205 ha is
a
Classroom, lecture hall
76
9,685
planned by Ho Chi
b
Laboratory
4
320
Minh City People‟s
c
Classroom for foreign language,
10
840
Committee for
building a university
music, arts, sports
d
Computer room
9
740
in Tan Kien
e
Library
3
460
commune, Binh
f
Public
41
2,568
work
medical
area
center,
(canteen,
Chinh district; the
rest is rented land
offices,
with the period of
departments)
use of 6 to 20 years.
g
Dormitory
16
400
Rented in Go Vap
district for 100 Laos
students
Total
159
15,013
Source: Statistics of Equipment Management Bureau in November 2009
Table 2.3: Number of equipments and computers
No.
COMPUTING CAPACITY
Quantity
Remarks
1
Total number of computers
581
Of 450 computers used for
a
For training
450
training, 62 computers are
b
For management
131
installed in lecture halls,
2
Number of computers connected to
519
classrooms
Internet
connection); 388 computers
Internet
3
(no
Number of computers having email
131
are installed in 9 computer
portal according to email address of
rooms and 131 computers
the university
used for management are
connected to Internet.
Source: Statistics of Equipment Management Bureau in November 2009
32
At present, the university has a basic advantage that it has invited Saigon
Invest Group to be the main investor holding more than half of shares to invest in
the university with the policy of no self-interest as proposed by founders of the
university and it has coordinated with the university to established University
Development Investment Joint Stock Company. City Committee of the Party
Office is doing the procedure of leasing the land at 736 Nguyen Trai for 20 years
to build the head office of the university.
2.2.4.
Finance
Table 2.4: Income Statement of HVU in 2008, 2009
Ratio
2008
2009
Amount
Net revenue
30,998,183,300
42,480,743,031
11,482,559,731
Gross revenue
12,200,000,840
12,740,502,965
540,502,125
EBIT
3,190,773,135
-629,296,171
-3,820,069,306
Net earnings
2,871,695,821
-629,296,171
-3,500,991,992
Margin profit
10,29%
-1.48%
-11.77%
ROA
12,1%
-1.78%
-13.88%
ROE
13.54%
-2.41%
-15.55%
Total Assets
23,730,726,144
35,322,590,120
11,591,863,976
Total Debt
166,093,212
9,292,301,525
9,126,208,313
Source: Accounting Bureau on 31 December 2009
According to above turnover table, it can be seen that turnover in 2009
increased by 37% in comparison with in 2008, equivalent to the target which
HVU is permitted to increase in 2009. However, in 2009 profit of HVU
decreased to negative figure. Reason for this loss is that HVU invested in
equipment, purchased management procedure, increased salary in order to
improve operational capacity, to prepare for the following years.
CONCLUSION OF CHAPTER 2
HVU is a university with its main product is to provide training service.
At present, this is a suitable product of high demand. In order to improve
33
competitive capacity, HVU is necessary to establish a development strategy,
including short-term and long-term goals.
In recent years, demand for higher education of the citizens has
increased remarkably, including for localities paid little attention to study before
such as Southwestern provinces. This is the most advantageous factor for
Vietnamese universities in general and HVU in particular.
Regarding operation capacity, including staff, program, management
mechanism, income policy, etc., HVU is potential and has achieved remarkable
success. In order to improve competitive capacity, HVU needs to have suitable
strategy to improve its operational capacity in order to increase income, to
create its position in the society.
34
CHAPTER 3
ANALYSIS OF HUNG VUONG HOCHIMINH CITY
UNIVERSITY’S ACTIVITIES
3.1. Determination of value chain
SUPPORT ACTIVITIES
Figure 3.1: Value Chain of HVU
Focus on enhancing facilities, building new locations and purchasing
educational equipments.
Manage recruitment and selection a good staff
Training and development the staff
Policies to allure talent people, encourage study and research,
improve income.
Information system is relatively completed with internet connection 100%
Apply ISO in management, constantly improve procedures
Gain right of use system ISO 9000 and EFQM of European universities.
Training program is regularly updated to meet demand of society
Inbound
Logistics
Attract
students with
high-mark in
university
examination
Operations
- Education
program is
updated
- Excellent
lecturers
Outbound
Logistics
Marketing
Services
- introduction to
freshgraduates
- Support to
seek jobs for
student
- Video clip,
exhibition
- Hold event.
- Hold contest
for students
- Take care of
students
- Help students in
study and life
- Scholarship
- Recommend
part-time work
PRIMARY ACTIVITIES
Source: Michael E. Porter, Competitive Advantage, New York, Free Press, 1985
3.2 Analysis of external environment
3.2.1 Analysis of macro environment
3.2.1.1 Political and Legal factors
Constitution of the Government states: “Education is national policy”. It
confirms the role of education in general development of the country. Clearly
aware of the significance of education, the Government continues to implement
the policy of educational socialization. State budget invested in education and
training has increased from 15% in 2000 to 18% in 2005 with the mechanism of
35
increasing expenditure for key tasks of the sector such as renovation of program,
training of teachers, and improvement of mountainous education. ODA projects
in education and training mainly for basic education, education and training
sector reached and exceeded basis targets which Education development strategy
set up for 2005. Schools in Vietnam have been making effort to meet national
standards in terms of infrastructure to guarantee high quality teaching and
studying equivalent to other countries in the region. However, these preferential
policies only focus on public universities, but private universities. Besides,
approval and issue of targets for each university like present of Ministry of
Education and Training causes many obstacles for operation and self-control of
universities, hinders universities from improving operational quality. It is due to
restricted enrolment target which limits income of the university, and affects
investment plans of the university.
According to General treaty of service trade under WTO, education and
training is seen as a form of general service trade. Education must operate in 4
forms as stipulated in the General treaty of service trade: inter-border provision,
services are provided from this member country to another member country;
consumption outside territory; trade presentation, service suppliers of a member
country establish forms of presentation like 100% foreign owned company, joint
venture company, etc. Severe competition between domestic universities and
foreign education organizations operating in Vietnam is indispensable. This will
create conditions for learners to have lots of choices at the same time put
universities and education organizations in the position of self-renovation to
compete and develop.
Along with urgent demands for human resources to serve the
development, higher education has never been paid attention like at present.
According to the master plan of universities of Ministry of Education and
Training, each local area will have a university. When local universities are
established, universities in the city will have difficulty since such universities
attract a greater number of students in localities.
36
3.2.1.2 Economical factors
GDP and average income per capital
GDP of our country has steadily and relatively high growth rate. Part of
GDP is invested in education. Average income per capital has increased over
years. Increase in average income per capital means capacity of expenditure on
education of the citizens is also increased.
Figure 3.2: GDP growth rate of Vietnam over years
(Source: World Bank in October, 2009)
Inflation
Since 2007, inflation has great impact on socio-economic life in our
country. Inflation cause price of goods serving training such as books, studying
tools, tuitions to increase high, which causes difficulty for large number of
citizens.
Figure 3.3: Average income per capita of Vietnam over years
(Source: World Bank in October, 2009)
Economic development is partly resulted from investment in education.
Vice versa, education should also be mobilized and renovated to meet the
demands for human resources of the economy. In the context where intellectual
economy plays important role in the development of production forces, education
37
and training plays increasingly important role. In addition, resources for
production in the world have become increasingly exhausted. It is time for
Vietnam to have direction for economic development based on quality of human
resources but not on existing resources.
Requirement for economic development in deep direction has created
difficulty for education sector in general and higher education in particular.
Training is not practical, after graduation students have no jobs, enterprises lack
of highly qualified laborers, training costs are too high in comparison with
obtained interests, etc. are great challenges at present.
In addition, economic development also creates demands for
continuation education and profession conversion training. This is an opportunity
for universities to extend training forms to meet social demands.
3.2.1.3 Cultural and Social factors
Increased intellectual standards of the people
According to report in Education development strategy 2001-2010, the
whole country has completed the task of illiteracy elimination and primary
education universities and is implementing junior high school universities.
Average schooling years of the whole country is 7.3, Human Development Index
(HDI) of the whole country in the ranking table of United National Development
Program (UNDP) has increased from 0.456 (rank 121st) to 0.682 (rank 101/174 –
UNDP data in 2006). This causes awareness of the society to change, demand for
studying to increase. Education and training service market is a potential
environment.
Increased demand for studying
Quick change in technology and science, knowledge should always be
updated, so learners are required to study whole life. At present, universities are
diverse in terms of majors and training levels. Learners can easily convert from
professional school level to college and university level. Universities also open
new majors such as PR, Hospital Management, Post-harvest Technology, Nano
Technology, etc. to meet new trends in the society.
38
Whole life study is both a demand and a condition for existence in
constantly changing economic and technical scientific environment. In addition
to formal study, trends of organization short-term training courses for working
skills are also developed. In general, this is the time when learners have lots of
opportunities to choose and access knowledge (see Appendix 3)
Figure 3.4: Target, Number of applications over years
TARGET
APPLICATION
Changing trend towards choosing university and major of candidates
Trend of students towards private universities and universities having not
high base point is changing. In the enrolment season 2008, number of
applications for universities having not high base point in 2007, local universities
and colleges increased. This indicates that students have more definite choice to
avoid the situation of choosing universities for their reputations.
Over the past 6 years, technical and economic majors are chosen most by
students. According to statistics of Ministry of Education and Training, more
than 30% of total students at present are studying technical and technology
majors. Percentage of students entering this group of majors has increased by
more or less ten thousand students. Along with the emergence of Vietnam‟s
financial market in 2006, economic major is also seen to be „hot‟ at present.
Changing requirements for human resources
In a dynamic economy with lots of professions as at present,
requirements for human resources have become strictly and constantly. Before,
39
the society focuses on qualification of laborers; now it is different. Qualification
is only a necessary condition but not sufficient to exist and develop in the job. At
present, enterprises require laborers to have soft skills to easily adapt to working
environment. Such skills include group work skill, presentation skill,
management and planning skill, etc. It is also a trend which universities aim at to
train students comprehensively.
3.2.2 Analysis of micro environment
Figure 3.5: HVU’s 5-force competition
Source: Fred R. David, Strategic Management: Concepts and Cases
(Pearson Education International, Twelfth Edition) 118
According to 5-forces model of Michael Porter, we analyze industry
environment to examine the trend and pressure in the industry as well as compare
with competitors to investigate competitive advantage of HVU. Regarding
geographical features, development process, management mechanism features of
the organization, we decide to select a typical competitor, a private university in
the South, which was established in the same period, have better achievements
and operation results than HVU: that is Van Lang University.
40
Bargain power of Buyers
Current Buyers: are students studying at the university, including
students at university, college of regular programs and second certificate,
connection, vocational training programs.
Potential Buyers:
-
High school pupils who will take entrance examination in the following year;
-
Pupil parents play very important role in the psychology of choosing
university of candidates. This should be noted when organizing advertising
programs, events, etc.
-
Enterprises: At present, demand for human resources, especially high quality
human resources in Vietnam is great. Training of a university after all is to
focus on training qualified and competent human resources for the utilization
purpose of enterprises. Therefore, in the future, customers of universities
may be enterprises. However, this group of customers creates added value for
universities, not the group of target customers, so it does not create pressure
for the university.
In the context that Vietnam‟s higher education is strictly controlled by
the Government, assignment of annual enrolment target for each university is
very difficult, whereas demand for studying is increasing. Every year, only about
20% of high school pupils continue to attend university, college and professional
school, so learners have few choices of university, major for themselves. This is
shown in the fact that the number of applications to HVU over years is always
higher than the target assigned for HVU. Therefore, we are aware that
competitive pressure from customers is low.
Bargain power of Suppliers
Lecturers
The most important supplier for the university is full-time and part-time
lecturers. At present, structure of lecturers of HVU is as follows: 212 full-time
lecturers and long-term contractual lecturers; 450 part-time and short-term
contractual lecturers.
41
Like most of other private universities, lecturers of the university are
mainly part-time lecturers. Advantage of this is that it is flexible to choose and
change lecturers to suit teaching program and direction of the university.
However, it is also a difficulty when lecturers are not stable. In the context that,
many more universities are established, source of lecturers is not sufficient to
meet teaching demand of universities. Therefore, all universities have policy to
attract lecturers, especially high quality lecturers. So, competitive pressure from
this factor is high. Comparing the number of lecturers of HVU and those of
VLU (appendix 5, 6), it can be seen that the number of lecturers of HVU is still
small. According to current regulations of Ministry of Education and Training,
average ratio between student and lecturer for majors is 20 students/lecturer.
Therefore, in order to improve the quality as well as to meet the set up standard,
HVU must recruit more lecturers.
According to the payroll in October 2010 of VLU, average income of a
manager is 13 million VND, of a vice manager is 9.5 million VND, and of a 5
year experience expert is 6 million VND. For faculties, average salary of a Dean
is 12 million VND, of a vice dean is 8 million VND, and of a lecturer teaching
adequate standard number of periods is 6 million VND. Besides this salary,
managers, vice managers have other income based on the number of teaching
periods and full-time lecturers have more income from excessive number of
teaching periods.
So, in comparison the salary and income policy of officers, lecturers,
employees of HVU and VLU, it can be seen that in order to recruit the number of
lecturers as required as well as to keep existing lecturers, HVU firstly should
review its salary and income policy.
Rivalry among competing firms
At present the whole country has 146 universities and academies, 223
colleges. In Ho Chi Minh City only, there are 37 universities and 30 colleges
(according to statistics of Ministry of Education and Training). The competitors
with Hung Vuong HCMC University in Ho Chi Minh city are:
- Hoa Sen University
42
- Saigon Technology University
- Hong Bang International University
- Van Lang University
- Van Hien University
- Engineering – Technology University
- Foreign Language – Information Technology University
- Gia Dinh Information Technology University
- Ton Duc Thang University
Regarding the areas from Lam Dong to CaMau, Hung Vuong HCMC
University has to suffer from competitive pressure as follows:
- Business Administration major: 15 universities are training
- Hospital Management major: 2 universities are training
- Tourism major: 7 universities are training.
- Information Technology major: 7 universities are training.
- English major: 12 universities are training.
- Finance – Banking major: 6 universities are training.
- Post-harvest Technology major: 5 universities are training.
Above competitors are public and private universities having operating for
at least 10 years. Each university has its own regulations on operation and
different customers, in which the most direct competitor of HVU is Van Lang
private university (VLU). However, in the future, HVU should overcome these
competitors to further development in order to rank in top universities in
Vietnam.
Potential entry of new competitors
Local universities and colleges are established in order to meet the
demand for human resources on the spot. However, due to the feature that
education and training in Vietnam is still subject to strict control of the
Government, establishment of new university is very difficult. On the other hand,
since financial conditions of new universities are not strong, investment,
development level is still limited. In addition, studying demand is increasing;
supply does not meet demand, so competition from competitor is relatively low.
43
Besides, after joining WTO, Vietnam must enter General Agreement on
Trade Service GATS with 12 service sectors including education, so since
01/01/2009, foreign education organizations will officially invest in Vietnam.
According to evaluation, education service market in Vietnam is seen to be
greatly potential. With their advantages of prestige, experience and especially
financial potential, etc. foreign education organizations will be competitors who
should not be disregarded for domestic universities. However, this group of
competitors does not create high competitive pressure since they aim at
customers who have good financial potential, and are willing to invest in more
advanced training programs, not at poor population of Vietnam.
So, in general, potential entry of new competitors force is not high for
universities, that having operated for over 10 years like HVU.
Potential development of substitute products
When penetrating into Vietnam‟s market, in addition to the pressure as
potential competitors, international education organizations also create another
pressure for domestic universities: it is pressure from substitute products. Diverse
products from these organizations, such as on spot studying abroad, self studying
abroad, training association, etc. with advanced training programs, dynamic
teaching and studying methods which motivate research of learners, at the same
time, increase remarkably foreign language level of learners, is creating a new
trend for Vietnamese citizens. However, limitation of this product is high tuition,
which is only suitable for a small party of Vietnamese citizens who have good
financial condition. So, competitive level of these products is low.
In addition to this substitute product, at present some people have
changed their trends from university training to vocational training. Therefore,
short-term vocational training courses such as computer technician, accountant,
nurse, etc. are also substitute products. So, HVU constantly extends other
training forms, not only university level but also college and professional training
level. However, competitive level of this group of products is still low, since
Vietnamese people still highly appreciate qualification and salary, income is still
44
determined based on qualification. Therefore, attending university is still top
choice of most of Vietnamese people from urban to rural areas.
Figure 3.6: The level of HVU’s five-force competition
3.2.3 External Factors Evaluations Matrix (EFE)
Based on above analysis, using EFE matrix, we determine the capacity of
HVU to respond to factors from external environment. Thence, we determine the
strengths and weaknesses of HVU to apply in the strategic model.
Table 3.1: External Factor Evaluation (EFE)
Key External factors
Weight
Rating
Weighted Score
0.130
4
0.520
Educational socialization policy
0.120
4
0.480
Preferential policy of the Government for education
0.100
3
0.300
0.050
3
0.150
0.075
2
0.150
0.070
1
0.070
Opportunities
Vietnam‟s socio-economic development increase
demand for intellectual training (especially in
economics, finance)
development
Development of substitute services, quick change in
technology
Customers and the public support private
universities
Demand for intellectual laborers in the world
increases.
45
Threats
Customers complain about training quality
0.130
2
0.260
There are more and more domestic and foreign
0.100
2
0.200
0.075
2
0.150
0.150
2
0.300
competitors, potential of competitors is greater and
greater
Threat of backwardness in comparison with world
education
Change in the number of part-time lecturers
TOTAL
1
2.580
Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson
Education International, Twelfth Edition) 126
With total importance point of 2.58 (in comparison with the average of
2.50), it indicates that the responsive capacity of HVU is only above average for
opportunities and threat from external environment.
3.3 Analysis internal factors
3.3.1.
Personnel and organization
The university has 212 full-time lecturers, including 79 full-time
lecturers and long-term contractual lecturers. This staff includes many qualified
and experienced lecturers teaching at university level, however, most of them are
old. Newly recruited young lecturers are very dynamic, enthusiastic, some of
them have fluent foreign language and computer skills; however, their
professional skills are limited.
The university has 151 managers, officers, including some lecturers
currently holding manager positions, who are qualified and experienced at
teaching university level, but most of them are old. Most of professional
employees are enthusiastic but have limited professional capacity and managerial
skills, who should be improved and arranged.
46
Figure 3.7: Ratio of student/lecturer and student/full-time lecturer
Percent of student/ fulltime lecturer
Percent of student/
lecturer
So, in comparisons with quality assessment standards, quality of
personnel of the university at present is too low. However, in comparison with
other universities, this ratio is acceptable. Therefore, the university should have
training policy for young lecturers to quickly build the next generation of
lecturers for the university, at the same time quickly recruit new lecturers in order
to increase the number of lecturers.
3.3.2. Financial resources
Main source of income of HVU is tuitions from university, college and
professional school levels. In addition, HVU has another source, that is, tuitions
from short-term training courses, continuation education courses. However, at
present, HVU has not concentrated in other sources of income since it has to
focus all capacity in major training levels, in order to improve training quality
and to build its position in the society.
By now, HVU locates its position in the direction of low expenditure, so
in comparison with other private universities, tuition rate of the university at
present is its competitive advantage. Over the past years, tuitions at HVU has
been very stable, and increased unremarkably. However, this is also a difficulty
of the university, it has no plentiful funds for re-investing, improving its
competitiveness in attracting high quality lecturers (see Appendix 5).
47
Figure 3.8: Tuition
3.3.3. Attractiveness of profession
-
At present, general regulation on training program of all majors must be
suitable for social demand and conform to framework program of Ministry of
Education and Training, including two parts of knowledge: basic education
and professional education. In the last semesters of the course, faculties will
divide into majors for training. Training program of the university at present
is assessed to be able to meet real demand. This is shown in the percentage of
students finding jobs after graduation. The university pays attention to
practice so in addition to lessons in the classroom students practice at
laboratory, joint extra-curricular activities to supplement their knowledge
during the course.
-
Majors which are the strengths of the university at present are economic
majors, which can partly meet the demands of students and the demands of
the society. Especially, Hospital management major can be seen as strength
of the university since it is the only university training this major.
-
Since 2010, the university opens new majors including construction
engineering technology; at present students of this major are assessed to have
high possibility of finding jobs. These are advantages which the university
48
should be marketing more so that students are aware of the significance of
training according to present social demands.
-
The university is providing some short-term training courses for enterprises
in such fields as: management, computing, medicine… However, these
activities are sparse and have not created income for the university.
-
Technical majors are limited in terms of number, at present the university
only has some majors such as: Information Technology, Post-harvest
Technology, Construction Technology, etc. The university should research
more about the trends of suitable technical majors at present such as: graphic,
movie making which will attract lots of students.
-
Implementation of connection policies with universities has created new
opportunities for students at college, high school level, who want to further
study. In addition, it also creates conditions to extend the university with new
training majors.
3.3.4. Management capacity
Like some other universities, this field has not done well at HVU, due to
the effects of the management of previous leaders. Poor management, lack of
internal union are also main cause of poor training quality, brand of HVU is also
affected, all Board of Management members of previous term did not contribute
capital, the university was under common ownership of all officers, lecturers,
students, so it was difficult to make a decision on management. Therefore, HVU
was not able to maintain the number of enrolled students, which led to decrease
in the number of customers, and serious impact on income.
Figure 3.9: Percentage of drop-out students
Percent of
dropped-out
students
49
3.3.5. Marketing
At present the university is having programs to attract students such as
Giving strength to talent (give scholarship to students admitted to the university
with high grade); First study, later tuition (lend operational capital which is
repaid after graduation; for good students and students from poor families);
Break-through (students can be granted 2 certificates of bachelors in 5 – 6
years); Fellowship (support traveling costs for students from distant provinces,
for students permanently living from Da Nang inwards) when entering the
university; Good family – stable career (support students to find safe and suitable
boarding house during the period of study and after graduation students are
offered jobs, etc.)
For marketing activities alone for potential customers who are pupil, HVU
has following main activities:
-
Advertising in newspapers about university enrolment, second certificate.
-
Giving advice during exam season at high schools in province in the North –
Central region – South.
-
Deliver brochures for high schools in the city.
-
Publish articles in newspapers about the university.
For private universities, marketing is a very important issue. Over the past
year, with its marketing activities, HVU has drawn out following comments:
-
Exchange with high schools and give scholarships for 12-grade students who
have good achievements in study.
-
Improve website of the university in terms of both content and appearance,
with lots of information to attract students to explore the university and the
majors. Online consultancy should be added for students who want to apply
for the university.
-
Enrolment consultancy content is not good, information introducing the
university mainly focuses on the university features, not focuses on interests
and rights of students when attending the university, language used in such
documents is dry, mainly descriptive; So equipment, design of consultancy
pavilion at attract student and assign personnel to other key positions in
50
compliance with general regulations to guarantee maximum opportunities to
contract pupils.
3.3.6. Material facilities
In order to develop sustainably it is required to have good material
facilities. Good material facilities will contribute to good quality teaching and
studying, help to attract attention and trust of learners. In addition, based on
material facilities determined specifically by Ministry of Education and Training
which assigns enrolment target for each university. However, current material
facilities are a common difficulty for universities, especially private universities.
Therefore, competitive pressure from supplying material facilities to
guarantee operation is relatively high. At present, despite of relatively good
floor area for one student of HVU in comparison with VLU (according to report of
Ministry of Education, on 31/1/2010, floor area of HVU is 1.7m2/student – of VLU is
1.9m2/student), regarding the quality, agencies of VLU are all under the ownership
of VLU, whereas material facilities of HVU are all rented, so agencies of HVU
are not stable. If HVU wants to develop sustainably, it should invest in
constructing its own agencies.
3.3.7. Tuition
Normally, price is one of important competitive tools of enterprises.
However, for higher education service product in Vietnam in general and private
universities in particular, price has little impact. Normally, there is not much
difference in tuitions of private university, at the same time, students at all
private universities still enjoy tuition exemption and reduction, capital loan
support policies as stipulated by Ministry of Education and Training. Main
attention of most students and their families is whether they are admitted or not
but whether tuition is high or low. Therefore, relatively high competitive pressure
among universities is that enrolment target is high or low, and whether enrolment
target is met or not. Enrolment target and number of enrolment decide the income
of the school, which then affects the investment plan and has great impact on
operation results of the university.
51
In addition, universities compete with each other in terms of quantity and
quality of enrolment examination or pass judgment. This factor will help
universities have higher quality input, which is a premise for improving training
quality and long-term development of private universities.
So, there is high competition among private universities in Ho Chi Minh
City in particular and in the whole country in general, not in terms of price but of
service quality for two main purposes: Increase enrolment target assigned by
Ministry and Increase the quantity and the quality of enrolment candidates.
Figure 3.10: Number of target and real enrolment of HVU
Target
Enrolment
Figure 3.11: Number of target and real enrolment of VLU
Target
Enrolment
52
3.3.8. The Internal Factors Evaluation Matrix (IFE)
Based on above analysis, using IFE matrix we determine the strengths
and weaknesses of HVU as follows:
Table 3.2: Internal factor evaluation (IFE)
Key Internal Factors
Weight
Rating
Weighted
Score
Strength
Low tuition
0.075
4
0.30
Relatively good marketing activities
0.075
3
0.23
Gradually completed organization - management
0.075
3
0.23
Enroll students in the whole country, mainly
0.050
3
0.15
Good utilization of land
0.070
3
0.21
Improved teaching quality
0.120
3
0.36
Reasonable income of officers and employees
0.075
2
0.15
Agencies are located in the city center
0.075
2
0.15
Stable and high quality lecturers
0.150
2
0.30
Poor financial, economic information system
0.050
2
0.10
Incomplete material facilities
0.110
2
0.22
Weak research and development activities
0.075
2
0.15
from the Central region inwards
Weakness
TOTAL
1
2.550
Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education
International, Twelfth Edition) 168
Rate of importance is 2.55, which shows that the university is at medium
level (2.5) in terms of internal position. Therefore, it can be seen that HVU is
potential but in order to implement higher goals, HVU should change some of its
weaknesses and promote some of its strengths to create new and stronger
capacity.
53
3.4 Determination of advantage competition
Competitive profile matrix (CPM) identifies a firm‟s major competitors
and its particular strength and weaknesses in relations to a sample firm‟s strategic
position.
Before selecting general strategy, HVU should determine its position in
the system of universities, colleges in Ho Chi Minh City in particular and the
whole country in general. However, in order to select proper strategy and achieve
set up goals, it is important to determine HVU‟s position among its main
competitors, specifically, in comparison with Van Lang University (VLU), as
well as non-public universities which have also been operating for 15 years.
3.4.1 Favorite product
It is most important that training services and products be diverse in
terms of training specialties, training programs and favored by the society. At
present, HVU‟s specialties are not favored much, except such specialties as
Finance and Banking, Accounting, Business Administration and Hospital
Administration. Whereas, VLU has many specialties meeting social demands
such
as
Finance
and
Banking,
Accounting,
Business
Administration,
International Trade, Architecture, Construction, Commercial Arts, Environment
Technology, etc. HBU, in addition to a few specialties easy to find jobs such as
Business Administration, General Treatment and Convalesce, many specialties
are not corresponding to tertiary education, do not show scientific research and
are not suitable to general demand of the society such as Sports and Physical
Training, Martial Arts, Spa Technology. However, training programs of VLU are
more limited than those of HVU and HBU. VLU focuses on product
differentiation strategy and concentrates on product quality rather than scale
expansion, and regular tertiary education. HVU and HBU, in addition to regular
tertiary education, have other programs such as college, connection, continuation,
second degree, master, etc. Annual enrolment of VLU is better than HVU and
HBU, responsiveness to changing demands of the society is also better.
54
3.4.2 Training programs
Diversity of favorite products is the first factor that makes customers
come to a university. However, in order to develop and affirm its position, the
university must focus on product quality, that is, training quality. The higher the
training quality is, the easier for graduates to find jobs; the better the students are,
the more opportunities they have to work for big companies, etc. All of these
improve the prestige and the trademark of the university. It shall have more
opportunities to attract good students, which in turn helps to improve training
quality. Training program is the main factor creating training quality.
Every year, HVU always attaches special importance to updating and
improving training programs. However, due to limitation in lecturers and
managerial staff, HVU has not developed high quality programs. Training
programs of HBU are even weaker than those of HVU. For VLU, every, faculties
check, update and revise training programs, gradually apply foreign training
programs such as association training program in information technology with
Carnegie Melon (CMU – the US), association training program in tourism
administration with France, diploma training program in Accounting, Marketing
with London Chamber of Commerce and Industry (LCCI – Britain), etc.
Therefore, training quality of VLU is more and more improved.
3.4.3 Facilities
For a university, facilities have great impact on training quality. In
accordance with regulations of Ministry of Education and Training of Vietnam,
floor area for each student must be 2m2; there are no regulations on other
equipment. However, in the context of Vietnamese society at present, most of
public and private universities in Hanoi and Ho Chi Minh City, from longstanding to newly-established ones, floor area norm is not guaranteed. According
to the report of Ministry of Education and Training, floor area of HVU is
1,9m2/student, and of VLU is 1,7m2/student. However, VLU‟s establishments are
under the ownership of VLU, and invested, purchased by VLU, while HVU‟s
establishments are all rented. Therefore, even though VLU‟s floor area has not
met the norm, VLU invests in the construction of establishments seriously and
55
spaciously, with sufficient equipment to ensure demand for use, relatively
deserving to be a university. While, for HVU and HBU, even though floor area
meets the requirement, due to rented establishments, HVU and HBU are not
spacious with insufficient equipment, which affects students‟ psychology and
lecturers‟ enthusiasm, leading to training quality not as good as expected. At the
same time, facilities have great impact on enrolment target of each university
every year.
3.4.4 Managerial staff
Managerial staff has great impact on the efficiency of a university
operation management. For a university, in order to achieve high operation
management efficiency, in addition to policies, operation procedures, the most
important factor is managerial staff. Good managerial staff leads to better order
and discipline, thanks to that, students achieve better results, and lecturers give
better lectures. At HVU, the number of managerial staff is relatively small and
managerial capacity is not high. This is presented in the fact that number of
annual enrolment and graduates, etc. of VLU is higher than HVU. For HBU,
managerial staff has changed a lot, managerial capacity is weak, power is held by
Rector, and so managerial staff is not active in their work, leading to poor
management effectiveness.
3.4.5 Lecturers
This is the factor having great impact on the efficiency of a university‟s
operation. The better the lecturers are, the higher the training quality is.
HVU has relatively good and stable number of lecturers. Lecturers of
VLU in comparison with those of HVU are plentiful in terms of quantity, equal
in terms of quality and have worked for VLU for a long time. HBU has unstable
and unequal quality lecturers due to unstable income policy and operation
process.
3.4.6 Financial management capacity
This is also a factor affecting the operation efficiency and the
development of a university. Regardless of good financial resources, if a
university has poor management capacity and financial use policy, in other
56
words, has poor orientation, investment policy and financial use, its operation
efficiency as well as development process shall be greatly affected.
Even though HVU and HBU have many training programs which help to
increase their income, due to wrong orientation and financial investment policy
and lack of investment in facilities, after 15 years of operation, both of them have
not had their own establishments with poor equipment, which has great impact
on their operation efficiency. In addition, HVU and HBU have not had good
financial policy to attract talented personnel, so they have not developed high
quality human resources. For VLU, thanks to good financial use and
management policy, investment in facilities and equipment are attached
importance to, so its annual enrolment target is relatively high. However, VLU
also has not good financial policy to attract and keep talented personnel so there
is a lack of human resources, and long-term human resources development
orientation.
3.4.9 Student assistance policy
Due to self income and self expenditure feature of a private university in
terms of finance, three universities HVU, HBU and VLU are not supported,
given preference and invested by the State. However, they have always attached
importance to student assistance policy.
HVU has student assistance programs such as Talent Strength Giving
(offering scholarship for students accepted to the universities with high marks);
First Study, Last Tuition (supporting operation loan which is repaid after
graduation for good students of poor families); Breakthrough (it is possible to
receive two bachelor degrees in 5-6 years); Fellowship (supporting traveling cost
for students from far provinces from Da Nang towards); Good Accommodation –
Peaceful Life (assisting students to find safe and suitable accommodation during
study and offering jobs for students after graduation, etc.).
Every year, VLU maintains and well perform such programs as
Reducing tuition for students of policy families, poor households; Offer
scholarship for good students; Offer part-time jobs at university such as lift
guard, cook helper, news collaborator, etc.; Raise Van Lang Family Fund to help
57
students suffering from illness, accident, sudden difficulty, etc.; Provide
accommodation in the dormitory for free; Support expense for students to attend
academic contests outside the university, etc.
Student assistance policy of HBU is not stable, only students having
sudden difficult, good and excellent students are considered to be assisted.
3.4.10 Offer jobs for graduates
Offering jobs for graduates is an activity to which importance is always
attached. Percentage of students finding jobs, succeeding in careers and job
quality, etc of students is increasingly high, which indicates high quality and
prestige of the university in the society.
According to annual survey, the number of HVU‟s students finding jobs
is not big, only 60% in the first 5 years and 80% in 10 recent years. HBU‟s
students have difficulty in finding jobs, due to unpopular specialties, poor
training quality. For VLU, about 60% of graduates find jobs right after
graduation and 99% of students find jobs suitable to their specialties after 12
months since graduation, many students succeed after 4 years of working, and
work for big enterprises such as PWC, E&Y, A&C, DTL Sheraton Hotel, Saigon
tourist, Ben Thanh Tourism Corporation and Unilever, etc.
From the analysis of above factors, we can evaluate competitive capacity
of each university, at the same time, applying competitive image matrix, we can
determine factors of success, position as well as determine main competitors of
each university.
Based on experience, observation and level of impact on the society of
HVU, VLU we determine the competitive advantage of these 3 universities as
follows:
58
Table 3.3: HVU’s Competitive Profile Matrix
CRITICAL SUCCESS
WEIGHT
FACTORS
HVU
VLU
HBU
RATING
SCORE
RATING
SCORE
RATING
SCORE
Favorite products
8%
2
0.16
3
0.24
1
0.08
Training programs
22%
2
0.44
3
0.66
2
0.44
Facilities
15%
2
0.30
3
0.45
2
0.30
Lecturers
20%
3
0.60
3
0.60
2
0.40
Managers
5%
2
0.10
3
0.15
2
0.10
Financial capability
10%
3
0.30
3
0.30
2
0.20
Tuition fee
5%
4
0.20
3
0.15
3
0.15
Marketing
5%
3
0.15
2
0.10
4
0.20
Student supporting policy
5%
3
0.15
4
0.20
2
0.10
Job offer for students
5%
2
0.10
3
0.15
2
0.10
TOTAL
100%
2.50
3.00
2.07
Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education
International, Twelfth Edition) 127
So, in comparison with 2 above competitors, HVU has higher position
than HBU but lower position then VLU. Therefore, HVU‟s main competitor is
VLU.
So, by now the highest competitive advantage of HVU is tuition, the
biggest weakness is material facilities. This is completely suitable for HVU‟s
direction towards low expenditure. However, according to above analysis,
tuition is not a good factor to create competitive advantage. Therefore, HVU
should develop another competitive advantage strategy.
59
3.5 Choice strategies
3.5.1 Determine of generic strategy
Michael Porter‟s 5 generic strategies allow organizations to gain
competitive
advantages
based
three
different
bases:
cost
leadership,
differentiation and focus.
Figure 3.12: HVU’s Generic Strategy
Source: Adapted from Michael E.Porter, Competitive strategy: Techniques analyzing
Industries and Competitors (New York: Free Press, 1980: 35-40)
HVU‟s differentiation strategy can be effective under following conditions:
-
There are many ways to differentiate the activities and many students and
pupils perceive these differences as having value
-
The students‟ needs are diverse
-
Few competitors are following a similar differentiation approach
3.5.2 The SWOT Matrix
Strengths
-
Training programs meet social demand;
-
Training organization procedure bring effectiveness for students;
-
Lecturers are qualified and experienced in teaching;
60
-
Despite of rented places, places for studying are spacious, near the city
center, convenient for traveling, equipment, means of teaching are
improve.
Weaknesses
-
Even though the training majors at the university at present can meet social
demands, they are “temporary” majors which can only meet demands at the
time;
-
Marketing activities are not methodological and incoherent;
-
Human resource: the university has many part-time lecturers which cause
difficulty for improving teaching methods;
-
Studying programs are limited, passive due to rented plan;
-
Material, technical facilities of the university are still low, unable to meet
student demands.
Opportunities
-
Have opportunity to extend training majors through association with foreign
education organizations;
-
Demand for further study is increasing;
-
Vietnamese people want to have high qualification according to their culture.
-
Government policies support educational socialization;
-
Economy develops expenditure on study increases.
Threats
-
Compete with domestic universities.
-
In 2009 foreign education organizations officially invested in Vietnam, this is
the biggest difficulty in the trend of competition in the sector.
-
Policies of connection, association with foreign education organizations are
difficult for domestic organizations to implement.
61
Table 3.4: SWOT Matrix
OPPRTUNITIES
THREATS
O1. Have opportunity to T1.
External Factors extend
training
Compete
with
majors domestic universities.
through association with T2. In 2009 foreign
foreign
education education
organizations.
organizations officially
O2. Demand for further invested in Vietnam,
study is increasing.
O3.
this
Vietnamese
want
to
is
the
biggest
people difficulty in the trend
have
high of competition in the
qualification according to sector.
their culture.
T3.
Policies
of
O4. Government policies connection, association
Internal Factors
support
educational with foreign education
socialization.
O5.
organizations
Economy
expenditure
develops difficult for domestic
on
study organizations
increases.
STRENGTHS
are
implement.
S-O Strategies
S-T Strategies
S2. Good marketing
activities
S3. Acceptable quality.
S4. High quality
Improve training quality,
Invest in material
lecturers.
differentiation activities
facilities
S1. Low tuition fees.
S5. Rented agencies are
located in the city centre,
distance between
agencies is short.
S6. Good property
management
62
to
WEAKNESSES
W-O Strategies
W-T Strategies
Marketing and branding
Re- structure
development
organization
W1. Training programs
are “temporary”.
W2. Human resources:
invite
many
part-time
lecturers, which cause
difficulty for renovating
teaching methods.
W3. Studying programs
are limited, passive when
using rented premises.
W5. Material facilities of
the university are still
poor, unable to meet
demands of students.
Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education
International, Twelfth Edition) 225
3.5.3 The SPACE Matrix
No.
ASSESSMENT CRITERIA
FINANCIAL STRENGTH (FS)
RATING
4,2
1
High capability to attract financial investors
5
2
Easy to withdraw from the sector
5
3
Low risk in business
5
4
Relatively high return on equity
3
5
Low tuition fee resulting in low revenue
3
ENVIRONMENTAL STABILITY (ES)
-1,8
1
Advocated by the state policy
-1
2
High customer demand
-1
63
3
Little change in demand
-2
4
High hindrance caused by new competitors
-2
5
Little impact of price on demand
-2
COMPETITIVE ADVANTAGES (CA)
4
1
Recognized training quality
3
2
Annual enrollment meets target
5
3
Stable number of lecturers with high level
4
and rich experience
4
Guaranteed technical facilities
3
5
Low tuition fee
5
INDUSTRY STRENGTHS (IS)
1
-2
High potential of tertiary industry
-1
development
2
Low competition pressure from new and
-2
potential competitors
3
Relatively good potential growth rate
-2
4
Low technological requirements
-3
64
Figure 3.13: HVU’s SPACE Matrix
Source: H. Rowe, R.WMason and K.Dickel, Strategic Management and Business Policy: A
Methodological Approach (Reading, Massachusetts: Addison – Wesley Publishing Co. Inc,
1982) 155
According to above matrix, it can be seen that, HVU has relatively
financial capacity and many competitive advantages in a sector that is highly
potential to develop in a sustainable way. Therefore, HVU should uphold all of
its capacities, use aggressive strategy to further develop quickly.
CONCLUSION OF CHAPTER 3
So, we are aware that HVU needs to change its viewpoint about development
strategy in the next 10 years; it is not advisable to continue applying the strategy
of low tuition, but to focus on improving training quality, make a differentiation
in activities.
65
CHAPTER 4
ESTABLISHMENT OF DEVELOPMENT STRATEGY OF
HUNG VUONG HOCHIMINH CITY UNIVERSITY FOR
THE PERIOD OF 2011-2020
1.1. Demand forecast
4.1.1. Number of students
Years
Target of university
Number of students
and college
2010
2,000
10,081
2011
2,300
11,500
2012
2,300
12,000
2013
2,300
13,000
2014
2,500
14,000
2015
2,550
15,000
2016
2,560
16,000
2017
2,600
17,000
2018
2,650
18,000
2019
2,700
19,000
2020
2,800
20,000
4.1.2. Human resources
In order to guarantee training quality as well as be active in its operations,
HVU should have its own lecturers. According to university assessment
standards, demand for human resources in the next 10 years of HVU is:
-
In 2003, 300 lecturers are needed, number of managers must increase by
20%;
-
In 2010, 400 lecturers are needed, number of managers must increase by
50%.
66
4.1.3. Material faculties
In order to meet demand for number of students in the next 10 years, HVU
needs to have material facilities as follows:
Material facilities
2015
2020
30,000m2
40,000m2
Computers
700 pcs
1,000 pcs
Projector
700 pcs
1,000 pcs
Construction floor area
4.1.4. Finance
-
Stable income and sufficient to guarantee operation, especially to change
salary and income policy, salary fund is estimated to increase by 20%;
-
Construct the agency at 736 Nguyen Trai, District 5, the cost is estimated
to be 50 billion dong;
-
Construct Hung Vuong University village in Binh Chanh, the cost is
estimated to be 300 billion dong.
4.1.5. Marketing
-
Marketing strategy should be developed for potential customers who are
high school pupils;
-
PR strategy should be built to promote and develop the prestige of HVU,
to create good relations with parents and enterprises.
1.2. Development direction of HVU by 2020
4.2.1. Vision Statement for a year 2020
According to Associate Professor Luong Ngoc Toan – Chief Executive
Officer: “Values and goals which HVU is pursuing are:
-
By 2020, HVU will become of top private universities in Vietnam and rank
in top 100 universities and colleges in ASEAN region;
-
Training philosophy is to combine training and utilization, training
according to social demand, after graduation students can find jobs and
do not need re-training;
-
Scientific research and technology competition is important factor in the
strategy;
67
-
No self-interest is a connotation in the development philosophy of the
university: investment in education is not for profit, arising profit is reinvested in the university;
-
Open university: association, joint venture, cooperation, competition
along with development are reason for living and long-term, sustainable
development;
-
International cooperation is the strategic direction in the vision of the
development philosophy.”
4.2.2. Mission Statement
-
Hung Vuong HCMC University commits to multi disciplinary, multi
major, multi level training to provide high quality technical human
resources for the industrialization and modernization cause of the country
especially for Southern areas and contribute to the export of skilled
laborers.
-
Hung Vuong HCMC University commits to implement the task of
popularizing knowledge and professional skill for practical interest of
students and the community so that after graduation student can find jobs
and create jobs to contribute to the construction of our country with the
goal of prosperous population, strong country, fair, civilized and
democratic society.
-
Own high quality human resources.
4.2.3. Directional values and quality policy
According to Associate Professor, Mr. Le Van Ly, Rector of HVU:
“HVU commits to keep its quality values, including: service, time, brand,
sponsor, price and space”
-
Service: Build a prestigious academic environment, a staff of officers –
lecturers adequate in quantity, strong in professional skill and accepted
by the society. Build and develop the tradition of the university, uphold the
internal forces, take advantage of cooperation and healthy competition to
develop the university sustainably;
68
-
Time: Guarantee the promptness and appropriateness of training majors
during the training period;
-
Brand: HVU brand will attach to the quality of graduates;
-
Sponsor: Guarantee more than 90% of students after graduation find
jobs; provide good quality lecturers; provide material facilities meeting
requirements and sufficient quantity; Students are always center of
services.
-
Price: Maintain at the lowest price so that students feel secure during the
process of study.
-
Space: Conform to regulations on floor area for each student.”
4.3 Demand of goals by 2020
4.3.1. Training
From 2011 to 2013:
-
Focus on improving training quality at regular university level, for example,
un 2011 establish sub-departments in all faculties to better manage the
improvement of training quality and scientific research, to check and update
training programs to guarantee amount of knowledge and basic skills, update
advanced programs of foreign countries at the same time renovate in
accordance with real situation of Vietnam in order to further guarantee the
quantity and quality of annual enrolment, which is the basis for increasing
tuition;
-
Implement connection programs at high school – college – university
training levels and connection programs with domestic and international
universities;
From 2013 to 2016
-
Improve training quality for 2 important skills, foreign language and
computing and other soft skills, practice skills for students to easily find jobs.
-
Close 2 majors Japanese and Post-harvest Technology due to inability to
attract students.
-
Open more majors such as Technology, Construction, investigate other new
majors.
69
From 2016 to 2020
-
Establish Medical institute, Human resources training center and other
centers for high class human resources training to meet social demand;
-
Combine training and human resource utilization of domestic and
international market (priority is given to industrial zones).
4.3.2. Research and international cooperation
-
Develop the university to become an agency both carrying scientific research
and technology transfer, applying achievements of scientific research into life
and business production.
-
Scientific research should firstly serve the training and improvement of
teaching methods, improving the management efficiency of the University,
guaranteeing that by 2015 30% of full-time lecturers carry out annual
scientific research, by 2020 50% of full-time lecturers carry out annual
scientific research, including topics at Ministry level and National level.
-
Develop research programs to serve industrial zones, enterprises and
provinces in the South;
-
Combine scientific research and training lecturers and train students to do
scientific research through graduation thesis topics.
-
Promote international cooperation firstly by establishing training cooperation
with other universities in the region and in the world, focusing on European
and American universities.
-
Extend cooperation and exchange of lecturers, scientists, managers;
especially create conditions for young officers to improve their professional
skill by abroad study at the spot or overseas.
-
Exchange information, organize conference, international workshop,
especially organize cultural exchange with countries, the languages of which
are being taught at the university in order to practice foreign language and
extend international cooperation.
70
4.3.3. Human resources
From 2011 to 2013
-
Gradually increase
the
ratio
of
student/lecturer
by 2013
to
25
students/lecturer; Gradually increase the percentage of lecturers at master
level to 40%;
-
Increase 20% of managers not currently holding another position;
-
Develop a staff having qualification, skill, saving at most the staff of service
employees by signing contracts with hygiene service companies;
-
Renovate salary policy, increase income for officers, lecturers and employees
in order to keep talented people and attract new forces.
From 2013 to 2016
-
Recruit new lecturers, guarantee the ratio of student/lecturer of 23
students/lecturer by 2016; Gradually increase the percentage of lecturers at
master level to 40% by 2015;
-
Improve the quality of officers and managers, in order to reduce strongly the
percentage of drop out, drop out halfway, from that guarantee financial
sources, at the same time pay attention to the next lecturers to replace senior
managers at present;
From 2016 to 2020
-
Gradually increase the ratio of student/lecturer to 50% by 2020;
-
Increase the number of lecturers who are doctors to 30%;
4.3.4. Material facilities
From 2010 to 2011:
-
Continue to maintain existing material facilities, stabilize existing floor area
and number of classrooms;
-
Complete the construction of the agency at 736 Nguyen Trai, District 5;
-
Equip modern equipment for training and scientific research, especially give
priority to audiovisual equipment for improving teaching methods, and equip
computers connected to internal transmission line and internet.
From 2011 to 2015:
-
Start the construction of the university zone in Binh Chanh;
71
-
Extend the scale, open new agencies in some localities having sufficient
conditions, pay attention to building dormitory for students and sports
agencies for entertainment and recreation;
From 2016 to 2020:
-
Study to build some modern laboratories and some practicum agencies for
students to practice.
-
Build research and application center in order to improve research capacity
for full-time lecturers.
4.3.5. Finance
From 2011 to 2015:
-
Increase income from tuition, fee be increasing training size, diversifying
forms for training, open short-term and long-term training courses, especially
actively exploit resources from training IT workforce exported to Japanese.
From 2016 to 2020:
-
Uphold internal forces, take best advantage of external forces from major
investor of the university, Saigon Invest Group (SGI) to build and develop
the university, at the same time invite other investors to jointly contribute
shares to invest in constructing the university be various forms, which is
beneficial for both parties;
-
Take best advantage of sources of preferential credit loans of the
Government and external aids;
-
Extend sources of income from scientific research, technology transfer and
other services, etc. to increase income for the university.
4.3.6. Marketing
From 2011to 2015:
-
Build the image and position of a university meeting Vietnam‟s quality
standards;
From 2016 to 2020:
-
Build the image of HVU in the mind and heart of Vietnamese people.
72
4.4 General development strategy
Based on factors of external environment, internal environment, situation
of operation of the university over the past time and above mentioned goals, we
can make general development strategy as follows:
Table 4.1: Main strategies
Strategies
Main contents
Diversify training
Open new majors suitable with the trend such as economic
majors
majors, biological technology, environmental technology,
etc.
Diversify training
Extend and consolidate training forms.
forms
Develop training
Focus on improving training quality for regular programs
majors and quality and gradually standardize training quality for irregular
programs.
Build
methodological
Focus on investing in research and applying marketing
strategies.
marketing
activities
Invest in material
facilities
according to
- Invest in building the university, increasing floor area
and number of classrooms.
- Invest in equipment, computers, management procedure.
national standards
Reduce the majors Reduce the size and dissolve majors unable to recruit
unable to attract
target enrolment for 5 years.
students
Structure re-
- Rearrange structure, organization system, transfer and
organization
allocate employees according to commend and reward
strategy
policy.
- Extend forms of mobilization, deep training, focus on
management, training especially managers, establish
73
quality assessment division.
- Build operation mechanism towards decentralization
direction.
-
Improve
financial
management
quality,
reduce
expenditure, and increase competitiveness.
4.5 Solutions to strategic implementation
From the social situation, trend of profession, goal and capacity of HVU,
we propose some main solutions to implement the strategies set up above.
4.5.1. Viewpoint of solution development
-
Solutions must be conformable with guideline, policy and socio-economic
development program, education and training development strategy of the
government;
-
Solutions must originate from real situation of the university, that means,
uphold the strengths, repair the weaknesses, take advantage of opportunities,
limit risks from external environment;
-
Solutions must be feasible.
4.5.2. Solutions to training
-
Build policy to attract good lecturers, scientists of Research Institutes, who
have lots of experience in teaching at university, college, professional school
in order to build a group of quality lecturers (full-time lecturers, long-term
contractual lecturers, part-time lecturers);
-
Invest in building lecturers of post-graduation level to improve professional
qualification and scientific research ability to prepare for opening post
graduate training since 2015.
-
Give priority to use advanced education technology to support the renovation
of teaching and studying methods; Convert from academic training form to
credit training form;
-
Develop and adjust training programs in compliance with advanced programs
in the world; guarantee the balance between theory and practice, curricular
74
time and extra-curricular time, in class and self-study, gradually implement
modules of contents and increase selective parts for students;
-
Exploit and use advanced university training programs of foreign universities
to apply in HVU in order to create international connection; Test training
programs in foreign languages, maybe haft training at home and half training
overseas.
-
Survey and use opinions of labor users for students after graduation to
improve programs and the appropriateness of training programs.
4.5.3. Solutions to research and international cooperation
-
Establish the link between scientific research, technology transfer between
training units of the university and the institutes, research centers of the
university and outside, and enterprises and localities.
-
Assign scientific research topics to units towards serving the development
of textbooks, programs, and the improvement of training methods of the
university.
-
Construct and equip some laboratories for experiment, practice and
scientific research, technology transfer.
-
Actively take part in scientific research programs at ministry and city
level.
-
Enact regulations, policies to mobilize lecturers and students to take part
in scientific research, combine 3 training areas – scientific research –
business production.
-
Spend suitable expenses for scientific research topics of Faculties.
Scientific Research Department and International Cooperation Department
is responsible to give advice and assist Managing Board to actively
develop this strategy.
-
Promote international cooperation with foreign universities such as
Quebec Montreal, Sorbonne, Colorado, Philadelphia…in form of training
association 2-2 to grant double degree, transfer technology of training
program, etc.
75
4.5.4. Solutions to human resource development
-
A quick way to increase the number of lecturers is to depend on long-term
contractual lecturers, with 133 lecturers, including 16 Bachelors, 54 Masters,
49 Doctors, 11 Associate Professors, and 03 Professors. The university
should soon develop the policy of transferring some part-time lecturers who
have worked for the university for long to long-term contractual lecturers to
increase the number of full-time lecturers, at the same time, have the master
plan for developing lecturers to prepare for opening new faculties, majors as
well as new agencies.
-
Give priority to attract highly qualified lecturers, good managers, those
having good foreign language and fluent computer skills; Have policy to
improve professional qualification for officers and lecturers and policy to
create conditions for them to attach to the university in the long-term;
-
Actively attract collaborators from research institutes to work at the
university, at the same time have policy to use scientists, overseas
Vietnamese university lecturers collaborating with the university;
-
Give priority to select excellent students to train to future officers of the
university;
-
Attract good professional employees to work at the university;
-
Be fair and open in recruitment; recruitment must be implemented through
Recruitment board of the university;
-
Develop preferential policies suitable for officers, employees and full-time
lecturers;
-
Focus on training and improving the quality of managers, lecturers,
professional employees to meet the demand and to serve the management,
teaching and scientific research of the university;
-
Have policies to improve professional skill for officers and lecturers and
policies to create conditions for them to attach to the university in the longterm.
76
4.5.5. Solutions to the implementation of management procedure
-
Apply international quality control system in the management of the
university such as quality control system according to ISO 9000 standard,
EFQM management system of European universities;
-
All managers are required to be able to use computers, to know skills to
exploit data on internet;
-
Implement to decentralize management for Faculty, Department, Division,
institute and center, at the same time, build Regulation on responsibility,
right division, reward, penalty to encourage competition for better
performance;
-
Establish management system operation center according to e-government
modern from storing data about personnel, finance, material, technical
equipment to operation of professional activities such as making timetable,
using classrooms, laboratories, conference rooms, practicum, etc.
-
Establish management operation center of the university, connect with units
in the university for management;
-
Equipment necessary facilities for management in e-government model;
-
Assign specialists to study university management technology at advanced
domestic and international universities;
-
Develop suitable training procedure, help students to study effectively,
publicize output standards for each major; Regular survey evaluation of
students about training programs, teaching methods to have suitable
adjustment.
-
Associate, establish relationship with enterprises to offer jobs for students
after graduation in order to create trust of students. At the same time, HVU
re-evaluates its training quality to make plan for adjusting curriculum
suitable with real requirements of the society.
4.5.6. Solutions to material facilities investment
-
Continue to hold on to operating agencies, at the same time find direction for
association, cooperation in training to be able to use agencies operating in
places having association, cooperation contracts in the city;
77
-
Guarantee to build its own agency at 736 Nguyen Trai and actively clear
ground in Binh Chanh area to build the university at this location; Actively
apply for more land assignment in district 9 with an area of 15ha as agreed
by the city for the university; Receive 2 floors on the high rise building in
Quang Trung software park;
-
Establish Hung Vuong HCMC University development and construction
investment Joint Stock Company to implement material facilities
construction;
-
Call for investors to contribute capital for material facilities construction or
borrow capital from the banks to implement the construction project of 8floor building at 736 Nguyen Trai – District 5, ground clearance,
compensation and ground backfilling, development of master plan map to
implement the construction in Binh Chanh district;
-
Invest in and modernize teaching and studying equipment, upgrade
classrooms for majors having special features, for example: laboratory for
Post-harvest Technology Faculty, laboratories for some faculties, computer
room, network technology department for Information Technology Faculty;
-
Invest in building the library, strive to become e-library by 2015; use
internet, intranet, specialized software, guarantee that officers and lecturers
as well as students can exploit data on internet to serve teaching, studying,
scientific research, gradually connect with e-libraries of domestic and
international universities;
-
Urgently complete material facilities, equipment upgrading and construction
plan in order to serve management, training and scientific research activities
of the university.
-
Associate with high quality Foreign Language – Computing Centers so that
students can study in an environment with better material facilities but the
university does not invest in teaching and studying equipment for such
subject.
78
4.5.7. Solutions to finance and assets increase
-
Change tuition policy to be suitable with training quality;
-
Manage and use effectively income, guarantee payment – expenditure as
stipulated;
-
Have policy to attract investors, so that to find financial sources to develop
the university;
-
Have reasonable associate policy to call for support cooperation from
specialists;
-
Diversify training forms to increase sources of income for the university;
-
Calculate and save expenses so that expenditure is less but efficiency is still
high;
-
Have policy to encourage units to create high income for the university and
assign units which have not balanced payment and expenditure to have
measures to popularize to increase income for the university;
-
Apply software for financial, assets management, payment, tuition collection
via network, banks, encourage payment, salary payment via ATM credit
card.
4.5.8. Solutions to marketing and brand development
-
Build consistent, simple logo, image creating impression for customers to
distinguish from other universities;
-
Designing student uniforms, wearing cards at the university also contribute to
create beautiful image;
-
Exchange students of high schools;
-
Coordinate with enterprises to organize Job festivals;
-
Sponsor common activities of students in the area such as annual crosscountry run, Football, Student performance festival, etc.
79
CONCLUSION TO CHAPTER 4
For the period of 2011-2020, HVU should determine to develop and
implement the strategy of training quality improvement, especially create a
distinctive product such as association with foreign universities to train double
degrees or associate with enterprises which commit to use students of HVU. In
addition to the main strategy of training quality improvement, HVU should also
focus on the strategy of investment in material facilities. This is the main strategy
to increase the number of students, hence to increase income, at the same time,
create beautiful image of HVU in the society.
80
CONCLUSIONS
Operation environment of higher education always changes and become
more competitive. In order to be stable, each university should build its own
sustainable competitive advantage. A way leading to success of universities is to
have direction and goal of operation, and in order to implement such goal, each
university must build its own suitable way. It is the strategy suitable for each
stage and phase.
Based on analysis of the real situation of operations of HVU and factors
affecting operations of HVU, we are aware of the significance of building a
strategy and strategic direction for HVU. By establishing development strategy
for the university, we wish to have a practical view of the real situation and set
up strategies will help HVU to stabilize and further develop, so as to gradually
confirm its position in the society. For the first 3 years of the development
strategy, it strives to reach 50% of level 1 and 50% of level 2 of 10 standards and
53 criteria for university quality assessment issued by the Government. By 2020,
the university strives to reach 100% of level 2 for the whole standards and
criteria as stipulated. We hope this study will become a basis for real
development strategies of the university. In this study, set up goals are basis
goals, key tasks, and main solutions. After 3 years of implementation, the
strategy will be checked and adjusted suitably. Every year, the university will
specify this strategy according to academic year plan and will be specific in
monthly schedule of the university.
Based on analysis of the real situation of operation of HVU along with
factors affecting operation of HVU, we are aware of the significance of building
a strategy and strategic direction for HVU.
Construction and development strategy of Hung Vuong HCMC
University by 2020 is drafted based on existing data and capacities of the
university. This strategy shall be adjusted, supplemented after a period of
implementation (about 5 years). Based on this strategic plan, units will develop
their strategic plans to implement the strategy of the university. Whether the
strategic plan is implemented or not, it depends on the management capacity of
81
leaders of the university and all units and members of the university. Therefore
strategic goals must be specified in annual plan for implementation.
With current conditions of the university, our recommendations and
solutions given in this study are feasible. However, the implementation requires
comprehensive coordination among units. The development of brand image of a
university is long-term task and will surely not avoid difficulties. For mission 1:
“Meet the demand for high quality personnel who are energetic, ambitious,
cooperative and creative in the context of global competition in labor intellectual
in the 21st century”, we are confident that HVU will develop more sustainably in
the new era – the era of knowledge and technology.
82
SUGGESTIONS
From the implementation and result obtained from the study, we propose
some recommendations as follows:
For the Government
-
Private universities still have lots of difficulties in terms of material
facilities, officers and lecturers still have lots of shortcomings, which
affect the training quality, so they have not created great repercussion. In
addition, some universities have not developed reasonable direction in the
education cause, which affects image of private universities in the society.
Besides, in the society, there are still wrong public opinions about these
universities such as “Super profit business, commercialization, etc.
students are those who are excluded from public universities, etc”. This is
a big obstacle for the development of the university. Therefore, the
government should have a policy to assist and support private universities
to develop such as support in terms of land, agency, preferential capital
loan, etc. to guarantee that the educational socialization policy of the Party
and the Government is implemented widely and effectively.
-
According to experience of some countries in the world, Vietnamese
government should accept the viewpoint that 02 types of private
universities may be co-exists, that is, universities not aiming at profit, and
universities aiming at profit and maybe another type, that is, semi-public
university, in which the government and individual jointly invest and
manage. From that point, the society will have vision of different
management styles with these 02 forms of universities.
For Ministry of Education and Training
-
As a state administration unit, Ministry of Education and Training should
balance between private university and public university in some fields
such as: permitting regular training programs like vocational training,
second certificate training, distant training, enrolment, consideration of
83
academic title, recognition of outstanding teacher, etc. for lecturers so as
to create conditions for universities to strive in the long term and for
lecturers feel secure in developing their professions.
-
Ministry of Education and Training should eliminate current management
mechanism; bravely apply university management mechanism of foreign
universities in order to improve self-control of universities so that they can
develop their own strengths. Ministry should enhance the inspection,
supervision of operation and intervene promptly regarding violations of
regulations in order to guarantee training quality of universities.
-
With limited conditions in various aspects, based on this study, Ministry
of Education and Training evaluates private universities, then compare
and find the strengths, weaknesses, advantages, difficulties as per region,
capacity, finance, mission, goal, etc. to provide prompt support and
direction for universities to develop.
For localities
Localities where private universities are located, specifically in Ho Chi
Minh City should create conditions and have specific support policies to help
universities guarantee training quality and develop such as land grant, financial
support, capital contribution and call for capital contribution, preferential capital
loan, etc.
For private universities
Private universities in Ho Chi Minh city in particular and private
universities in Vietnam in general should clearly determine their mission and
goal, profession structure development guideline with their own distinctive
features, invest in and improve material facilities conditions, teaching and
studying equipment in order to guarantee quality to prepare for official
assessment of Ministry of Education and Training and international integration of
Vietnam‟s education sector.
84
For HVU
Strategic model has various levels: general strategy, department level
strategy, individual strategy. In this study, we only develop general strategy for
HVU. In order to implement this strategy, leaders of HVU should specify the
strategy for each department and individual strategy, generally called business
unit strategy. The more specific and reasonable business unit strategy is, and the
85
APPENDIXES
Appendix 1: Number and structure of officers and employees of HVU
Total
Professional qualification
Doctor
A
Master
University College
Others
1
2
3
5
6
7
151
14
26
89
3
19
3
2
1
0
0
0
1.2 Officers
35
10
15
9
1
0
1.3 Employees
113
2
11
79
2
19
2.Lecturers
212
61
77
57
0
0
2.1 Full-time
79
14
26
39
0
0
2.2 Long-term
133
57
58
18
0
0
1. Managers
1.1 School
managing board
contractual
(Source: Personnel Department in October, 2009)
1a
Appendix 2: Target, Number of application and admission
YEAR
TARGET
NUMBER OF
NUMBER OF
REAL
APPLICATIONS
ADMISSION
ENROLMENT
RATIO OF REAL
ENROLMENT/
TARGET
1995
1,200
2,801
652
622
51.83%
1996
1,200
6,593
2,584
1,240
103.33%
1997
1,500
6,508
2,720
1,562
104.13%
1998
1,200
3,410
954
572
47.67%
1999
1,000
2,200
773
553
55.30%
2000
1,000
3,253
1,300
975
97.50%
2001
1,000
9,340
1,683
1,251
125.10%
2002
1,000
5,363
2,891
1,234
123.40%
2003
1,000
7,633
3,519
1,493
149.30%
2004
1,000
875
589
274
27.40%
2005
550
2,269
951
473
86.00%
2006
500
1,365
1,365
891
178.20%
2007
880
3,348
2,152
1,314
149.32%
2008
1,700
5,981
3,064
2,058
121.06%
2009
1,500
9,226
2,048
1,445
96.33%
Total
16,230
7,0165
27,245
15,957
98.32%
(Source: Training Department in October, 2009)
2a
Appendix 3: Number of graduates in comparison with number of enrolment over
years
Course
University
Input
College
Second certificate
Graduates Input Graduates Input Graduates
Total
Input
Graduates
1995
622
339
622
339
1996
1,240
849
1,240
849
1997
1,562
985
100
42
1,662
1,027
1998
572
384
104
47
676
431
1999
553
340
128
51
681
391
2000
975
615
975
615
2001
1,251
818
1,251
818
2002
1,243
822
1,243
822
2003
1,500
748
1,500
748
2004
274
194
309
28
2005
473
330
930
620
2006
891
Total
11,129
6,424
35
28
457
290
914
349
34
15
1,839
364
1,703
779
69
43
12,928
6,068
(Source: Training Department in October, 2009)
3a
Appendix 4: Data of HVU
Years Number
Number
Number of
Ratio of
Ratio of
of
of full-
part-time
student/lecturer
student/full-
students
time
lecturers
time lecturer
lecturers
1995
1,215
35
10
120
35
1996
2,135
53
21
104
40
1997
2,860
68
34
85
42
1998
3,630
68
52
70
53
1999
3,609
88
60
60
41
2000
3,374
90
62
54
37
2001
3,303
101
66
50
33
2002
3,567
142
89
40
25
2003
4,667
42
126
37
111
2004
3,727
44
106
35
85
2005
2,648
44
88
30
60
2006
4,173
53
167
25
79
2007
4,784
62
208
23
77
2008
7,601
152
400
19
50
2009
9,096
214
535
17
43
(Source: Administration Organization Department, October 2009)
4a
Appendix 5: Number of students and managers of HVU over years
Number of students and managers of HVU over years
Years
Number of
Number of
Number of drop-out
students
managers
students
1995
1,215
38
105
1996
2,135
42
165
1997
2,860
45
189
1998
3,630
42
87
1999
3,609
51
132
2000
3,374
46
147
2001
3,303
49
129
2002
3,567
49
89
2003
4,667
65
160
2004
3,727
53
38
2005
2,648
61
115
2006
4,173
60
313
2007
4,784
87
243
2008
7,601
107
196
2009
9,096
151
236
(Source: Administration Organization Department, October 2009)
5a
Appendix 6: Number of lecturers of VLU over years
Years
Number of
Number of
Number
Number of
Ratio of
students
managers
of full-
part-time
student/lecturer
time
lecturers
(unconverted)
lecturers
1999
12.406
56
80
468
22,6
2000
11.056
93
101
419
21.2
2001
8.611
111
102
380
17,9
2002
6.866
119
104
370
14,5
2003
6.500
103
119
364
13,51
2004
6.332
138
123
379
12,6
2005
6.468
117
129
412
12,0
2006
7.072
122
142
416
12,7
2007
7.922
134
169
474
12,3
2008
9.313
103
207
547
12,4
2009
10.209
119
227
668
11,4
192
277
653
2010
6a
Appendix 7: Target, Number of application and admission of VLU over years
Years
Target
Number of
Real
Number of students
applications
enrolment
every year
1995
4,700
16,500
4,560
4,560
1996
2,000
14,600
2,500
7,070
1997
2,500
19,600
3,300
10,400
1998
2,500
20,900
2,370
12,400
1999
1,500
7,140
1,660
11,050
2000
1,250
26,700
1,500
8,600
2001
1,500
22,050
1,580
6,800
2002
1,500
35,100
1,600
6,500
2003
1,650
18,900
1,720
6,330
2004
1,750
3,500
1,810
6,468
2005
2,000
5,050
2,040
7,070
2006
2,000
4,870
2,470
7,900
2007
2,200
7,500
2,910
9,310
2008
2,400
8,700
2,700
10,200
2009
2,600
7,800
2,950
11,390
2010
2,450
7,200
2,750
11,500
7a
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6. Vietnam Ministry of Education and Training (29/10/2009), “Development of
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8a
[...]... affecting operations and operational outcomes of the organization 12 Environment of an organization includes internal and external environment Figure 1.2: Environment analysis model Source: Adapted from Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 104, 106, 136 1.2.2.1 The external environment analysis External environment of an organization is determined... strengths and weaknesses of an organization, on that basis propose measures to limit weaknesses and uphold strengths to achieve maximum advantage Main internal factors include such functional fields as: human resources, research and development, production, accounting and finance, marketing and general organization order and discipline 15 Based on above analysis, we make an internal factor evaluation matrix... Structure of the study The study consists of 4 chapters, in addition to the introduction, conclusion and recommendation Chapter 1: Literature review of strategy and strategic development university Chapter 2: Introduction of HungVuong HCMC University Chapter 3: Analysis of HungVuong HCMC University s activities Chapter 4: Establishment of HungVuong HCMC University development strategy from 2011 to 2020. .. Allowance – Teaching pay (if any) - Basic salary: is paid according to qualification, senior - Allowance: includes responsibility coefficient, teaching salary According to data of Accounting Division in September 2010, average income of Manager is 10 million VND, of Vice Dean is 7.5 million VND, and of senior specialist of at least 5 years is 5.5 million dong For lecturers Teaching salary = Teaching pay... the university to meet national standards of not, at what level; - Hung Vuong HCMC University regulation stipulating organization structure, management, operation, individual responsibility of HVU 1.5 Role of competitive strategy for university Pursuant Regulation on private universities, private universities can “selfcontrol and take responsibility for the master plan, development plan of the university, ... management board - Information network management team Note: Leadership function line Coordination function line Figure 2.2: Number and organization structure of HVU 1 Managers 25 Figure 2.3: Number and qualification of Figure 2.4: Managers and Lecturers of HVU Number and qualification of Lecturers of HVU (See Appendix 1, 2) 2.1.5 Salary policy For officers, managers Income = Basic salary + Allowance... Concepts and Cases (Pearson Education International, Twelfth Edition) 126 14 1.2.2.2 Value chain analysis The value chain is a systematic approach to examining the development of competitive advantage It was created by Michael E Porter in his book, Competitive Advantage (1985) The chain consists of a series of activities that create and build value They culminate in the total value delivered by an organization... less than 15 billion VND (according to Article 11) 1.4 Legal issues in connection with higher education - Regulation on private university stipulating feature, form, organization structure, establishment conditions, operation mechanism of the private university; - A set of 10 standards, 53 criteria for quality assessment stipulating standards for staff, material facilities, learners, from that recognize... Implementation Source: Adapted from Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 37 1.2.1 Determination of vision, mission and goals of the industry, enterprise A business is not defined by its name, statutes, or articles of incorporation It is defined by the business mission Only a clear definition of the mission and purpose of the organization... difficult conditions in terms of funds as well as help university to feel secure in self-controlling, making decision and taking responsibility in this transitional period 21 CHAPTER 2 INTRODUCTION TO OPERATION OF HUNG VUONG HOCHIMINH CITY UNIVERSITY 2.1 Overview of Hung Vuong HCMC University University name: HUNG VUONG HO CHI MINH CITY UNIVERSITY Date of establishment: 14th August 1995 Traditional date: ... procedure for Hung Vuong HCMC University in a basic, easy to understand and use way Practical significance: Real situation of Hung Vuong HCMC University is also general situation of all private universities... of Competition Source: Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 118 Based on above analysis, we make the matrix of external factor... million VND, and of a year experience expert is million VND For faculties, average salary of a Dean is 12 million VND, of a vice dean is million VND, and of a lecturer teaching adequate standard