IMPROVING MANAGEMENT STRATEGIES AND BUILDING BUSINESS STRATEGIES IN THE PHASE OF 2015 TO 2020

THESIS MBA IMPROVING MANAGEMENT STRATEGIES AND BUILDING BUSINESS STRATEGIES IN THE PHASE OF 2015 TO 2020 CONTENTS OPENING CHAPTER I: FUNDAMENTAL BASIS ON STRATEGY AND STRATEGIC MANAGEMENT 1.1 Strategy and strategic management .9 1.1.1 Definition of strategy .9 1.1.2 Strategicmanagement .10 1.1.2.1 Definition 10 1.1.2.2 Tasks of Strategic Management 11 1.1.2.3 Benefits of Strategic Management 11 1.1.3 Strategic management model 12 1.1.3.1 Strategic management process 12 1.1.3.2 Strategic system in company 14 1.1.3.2.1 Mixed strategies 14 1.1.3.2.2 Specially intensive strategies .15 1.1.3.2.3 Business expansion strategies 16 1.1.3.2.4 Other strategies 16 1.2 Contents of building business strategy 17 1.2.1 Defining the business target 17 1.2.2 External environment analysis 17 1.2.2.1 Economic factor .18 1.2.2.2 Cultural and social factor .18 1.2.2.3 Politic and legislation factor 18 1.2.2.4 Technological factor .18 1.2.2.5 Competitive factor 19 1.2.3 Internal environment analysis 19 1.2.3.1 Management 19 1.2.3.2 Marketing .20 1.2.3.3 Finance and accounting 20 1.2.3.4 Information system 20 1.2.3.5 Internal supervision 20 1.2.4 Process on analysis and strategic selection 21 1.2.4.1 Input stage 21 1.2.4.2 Combination stage 23 1.2.4.3 Decision stage 24 1.2.5 Notes to the strategy development process 24 1.2.5.1 Culture side 24 1.2.5.2 Political side 25 CHAPTER 2: OPERATION ANALYSIS OF MILITARY TELECOM CORPORATION (VIETTEL) POST JSC .26 2.1 Introduction to Viettel Post JSC 26 2.1.1 General introduction 26 2.1.2 Features of post service sector 29 2.1.2.1 The popularity 29 2.1.2.2 The assembly 29 2.1.23 The disparity 29 2.1.2.4 The stability of the growth speed 27 2.1.2.5 The market being a hard saturation 30 2.1.3 Some points on activities of Viettel Post from 2006 to 2008 30 2.1.3.1 Business statement 30 2.1.3.2 Service supply network 32 2.1.3.3 Delivery service market share 33 2.1.4 Assessment on present strategy .33 2.1.4.1 Mission and vision 33 2.1.4.2 Analysis on competition pressure 34 2.1.4.2.1 Competition level I its internal sector 34 2.1.4.2.2 Risks of replacement products .35 2.1.4.2.3 Power of customers 36 2.1.4.2.4 Power of suppliers 36 2.1.4.2.5 Entry and exit barriers 37 2.1.4.3 Current strategy of Viettel post .38 2.1.4.3.1 Growth objectives 38 2.1.4.3.2 Strategy focus 39 2.1.4.3.3 Solutions 39 2.1.4.4 Assessment of current Viettel Post’ strategy in use .40 2.1.4.4.1 Strengths 40 2.1.4.4.2 Weaknesses 41 2.2 Business environment analysis .42 2.2.1 External environment 42 2.2.1.1 Economic factor .42 2.2.1.2 Social – cultural factor 42 2.2.1.3 Political – legal factor 43 2.2.1.4 Technological factor .43 2.2.1.5 Competitive factor 44 2.2.2 Internal environment analysis 44 2.2.2.1 Management 44 2.2.2.2 Marketing .45 2.2.2.3 Finance and accounting 46 2.2.2.4 Informatics system 47 2.2.2.5 Internal control .47 CHAPTER 3: VIETTEL POST JSC BUSINESS STRATEGY DEVELOPMENT PERIOD 2015 TO 2020 48 3.1 Purpose of the business strategy development 48 3.1.1 Strategic vision .48 3.1.2 Competitors identification 48 3.1.3 Market trend .49 3.1.4 Orientations for Viettel Post development period 2006-2008 50 3.2 Inputs for development of the business strategy 50 3.3 Business strategy development .51 3.3.1 Business targets identification 51 3.3.1.1 General targets .51 3.3.1.2 Target of the service product 51 3.3.1.3 Targets on distribution channel 51 3.3.1.4 Targets on revenue and market share 51 3.3.1.5 Targets on profit 52 3.3.2 Strategy identification 52 3.3.2.1 SWOT analysis on Viettel Post 52 3.3.2.1.1 The strengths 52 3.3.2.1.2 The weaknesses 52 3.3.2.1.3 The opportunities 53 3.3.2.1.4 The threats 53 3.3.2.2 Strategy analysis 54 3.3.2.2.1 Strategy – Low cost strategy .54 3.3.2.2.2 Strategy – Distinction / Differentiation strategy .55 3.3.2.2.3 Strategy – Horizontal strategy 55 3.3.2.2.4 Strategy – Restructure strategy 55 3.3.2.3 Strategy selection .56 3.3.2.4 Purpose of the strategy .57 3.3.3 Process to implement strategy 58 3.3.3.1 Period (2010-2012) 58 3.3.3.2 Period (2013-2015) 59 3.3.4 Inspect strategy implementation 60 3.3.5 Strategy adjustment .60 3.4 Implementation solutions 60 3.4.1 Marketing policies 60 3.4.1.1 Product policy .60 3.4.1.2 Price policy 60 3.4.1.3 Distribution policy 60 3.4.1.4 Promotion policy 61 3.4.2 Revenue solutions 61 3.4.3 Organization and human resource solutions 62 3.4.4 Information of technology application solutions 62 3.4.5 Group of countermeasure on cooperation 63 3.5 Recommendations 63 3.5.1 Viettel Corporation .63 3.5.2 Ministry of information and communications 63 3.5.3 State 63 CONCLUSION 64 BIBLIOGRAPHY .65 OPENING THE URGENCY OF THE PROJECT The project "Business strategy in the period of 2010 - 2015 of Viettel JSC - Demands and Challenges” was inspired due to the following requirements: Firstly: "Every day I can hardly achieve anything However, there is one job that I can never complete, which is to build plans for the future." That saying of an American largest corporation‘s president – Mr General Motors has firstly clarified the reason for our strong passion for this thesis That business strategy construction is ever a constant renewal demand for each enterprise Each enterprise, if ever considered a person hiking in the woods without a clear mandate, would only to find a way to go The more he is going, the more he is getting lost Strategy management helps organizations, enterprises clearly defined goals, directions, map out the way and reasonable allocation of resources optimally to ensure that they would travel to the target in a specified time Viettel Post JSC is not out of those needs Secondly: Viettel Post Joint-Stock Company was actually a Limited Company which is a member of the State Postal Viettel (Viettel Post), belonging to the Corporation Viettel - Department of Defense (Viettel), has been equitized in July 2009 During this transition, building business strategy after equitization is an urgent requirement for Viettel Post JSC, deciding the survival of the transferred business operating under the new mechanism to meet the demands of shareholders Thirdly: The construction and strategic management of Viettel Post JSC were to meet the demands of Viettel development In the course of its development, Viettel Post JSC still was required to follow the strategic development of Viettel "becoming the leading postal and telecommunications enterprise in Vietnam as well as in the worldwide market The construction of business strategy to help Viettel Post JSC realize the vision and mission of itself lying in Viettel development direction became urgent than ever THE OBJECTIVES OF THE PROJECT Facing the urgent demands mentioned above, our implementation of the project aims to the following purposes: Firstly: To clarify the matters relating to strategy and strategic management in production and business activities In addition, together with systematizing knowledge of strategic management, our thesis is also doing research on the influence of political and cultural factors upon the construction and implementation of business strategy Secondly: Basing on the science of strategic management which has been studied, the thesis is focusing on the complete analysis of a comprehensive business aspect of Viettel Post JSC from 2006 to 2008 to determine business objectives and development strategies appropriate for these enterprises after equitization Research Methodology To implement the objectives of the thesis set out: In terms of methodology, we, authors, mainly based on the theory of strategic management and strategic management experience in Viettel Corporation (Viettel) and Viettel Joint Stock Company in timebeing On that basis, combining with specific business environment, the writers have built business strategy in the period of 2010 – 2015 for Viettel Postal Corporation as well as set out a system of solutions to successfully implement the strategy With logical solution as such, authors mainly use statistical and analysis methods, which is to evaluate the operation of Viettel Post JSC in the period of 2006-2008 and to analyze the strengths, the weaknesses, the opportunities and the challenges of this enterprise, from which later on to set out appropriate strategy for the period of 2010-2015 THE STRUCTURE OF THE PROJECT Consistent with the meaning, purpose and research mentioned above, the project is structured into 03 chapters with the main contents as follows: Chapter 1: The scientific basis of strategies and strategic management in business activities of enterprises Chapter 2: Status of the strategic management of Viettel Post JSC in the phase of 2006-2008 The existences and requirements for a renovation Chapter 3: Some solutions improving management strategies and building business strategies in the phase of 2010-2015 of Viettel Post JSC SYMBOLS AND ABBREVIATION LIST EFE : External Factor Evaluation GDP : Gross Domestic Product HACCP : Hazard Analysis and Critical Control Point System IFE : Internal Factor Evaluation R&D : Research and Development SWOT : Strengths, Weaks, Opportunities, Threats VoIP : Voice over Internet Protocol WTO : World Trade Organization Viettel : Viettel Post JSC Post CHAPTER FUNDAMENTAL BASIS ON STRATEGY AND STRATEGIC MANAGEMENT 1.1 STRATEGY AND STRATEGIC MANAGEMENT 1.1.1 Definition on strategy The most common thing for any business to when starting up their business is setting goals to achieve in the long term However, in order to achieve that goal, managers need to set up variety of measures and actions, in other word, managers must build a specific business strategy Currently, there are many definitions on strategy, and based on different person’s point of view, there are somewhat different in definitions According to Chandler, one of those who initiated the first strategic management theory, strategy is "to identify goals, long-term basic purpose of the business and applying a sequence of actions as well as the distribution of resources necessary to implement this goal”1 In 1980, Quinn Glass has introduced a more general concept: "strategy is a pattern or plan integrates major goals, policies, and action sequences into a cohesive structure” Then, in 1999, Johnson and Scholes redefined strategy in an dynamic environment "strategy is the orientation and scope of an organization to gain long-term competitive advantage for organizations through mobilization of resources in the changing environment, to meet market needs and expectations of stakeholders”3 Chandler, A (1962) Strategy and Structure Cambrige, Massacchusettes MIT Press Quinn, J., B (1980) Strategy and Change: Logical Inscrementalism Homewood, Illinois, Irwin Johnson, G., Scholes, K (1999) Exploring Corporate Strategy, 5th Ed.Prentice Hall Europe To have a multi-facet definition on strategy, Mintzberg had generalized aspects of strategic management into five Ps, including: - Plan: the action sequences have a consistent plan; - Partern: being consistent behavior over time, may be intended or not intended; - Position: match between the organization and its environment; - Perspective: ways to view the world; - Ploy: specific way to deceive opponents In addition, the strategy is defined by nature, of three level strategies: corporate level, business level and functional level Currently, with the trend of globalization, companies are fast diversifying their activities beyond national borders, thus global strategy always be the first economic choice upon internationalize However, in our opinion, strategies should be defined as means or as an explanation about the direction for business to meet its objectives in the long term 1.1.2 Strategic management 1.1.2.1 Definition Strategic management is the process of identifying the strategic objectives of the organization, building policies and plans to achieve its goals, and allocating resources for the organization to carry out those policies and plans Strategic management is not only a science but also an art, through which managers plan, organize the implementation, control and evaluate business decisions in order to achieve long-term business goals 10 -Building upon the Viettel’s existed strengths as trademark, distribution channel, abroad investment experience, business mandate, military discipline etc… -Strong vision, ambition to become a leading post services provider both at home and abroad; -Young labor force (average of 29 years old) with full of dynamic, patient and creative features; -Being a newly established entrepreneur, Viettel can learn success and failure lessons from the pioneering entrepreneurs; 3.3.2.1.2 The weaknesses -Young labor force with limited experience, majority of unskilled employees, lack of skilled personnel, inappropriate mechanism on drawing talents, limited job training; -Instable infrastructure, majority of rental places i.e business shops, stores, offices ; -As analysis and forecast capability being not good enough, thus, the strategy is not well implemented later and the plan is adjusted periodically; -Trademark shared with the parent company, it is difficult for customers to identify different services between Viettel and Viettel Post; -Delivery services are much depended on different carriers i.e airlines, public transportation, international express delivery services providers etc 3.3.2.1.3 The opportunities -The post service market will be fully opened by 2013, the scale of typical services in favored of Vn Post is no longer; -As ranked 2nd, there is a big chance for Viettel Post to catch up with Vn Post when the Government’s preferential policies favored of Vn Post will not be created anymore; 55 -The parent company is boosting its abroad investment Viettel Post can take advantage of the parent company’s relations for its trade and investment promotion; -Logistic and e-commerce market is just at initial phase There is a promising potential for Viettel Post to tap into the market with the population of more than 85 people 3.3.2.1.4 The Threats: - High competition pressure from oversea competitors when the post & telecommunication is completely opened in 2013 - Revenue from some traditional telecommunication services (delivery service, newspaper publishing) to be reduced due to the trend of replacement service - Trend of direct distribution continues to grow - Although it is the second biggest corporation after VnPost but the gap between this corporation and Vietel post is large while the gap between this corporation with others (Hop Nhat, SaiGon Post…) is very small STRENGTHS SWOT WEAKNESSES - Brand - disqualified labor force; - Ambitious; - - Experience; analysis abilities - Network; - Unstable facilities Poor forecast and - Organizational culture; OPPORTUNITIES - Young laborforce; S+O - A complete open of the Strategy Post Telecommunication 1: Low W+O cost Strategy 3: Horizontal and Strategy: open and take Strategy: over the market; 56 acquisition Merging and Market; Strategy 2: Product - Potential of the new differentiation: extending market: logistics, e- international investment commerce - Oversea Investment THREATS S+T - 3: Competitive from new especially pressure Strategy W+T Horizontal Strategy 4: downsizing, corporations Strategy : merging and Restructuring; from foreign acquisition; corporations; - The trend of using replacement services for traditional post and telecommunication -The trend of direct distribution; Table 3.1 SWOT analysis for Viettel Post 3.3.2.2 Strategy Analysis 3.3.2.2.1 Strategy – Low Cost Strategy This strategy permits to remain the lowest cost in the market and Viettel Post has sufficient conditions to achieve it The biggest risk when applying this strategy is that not only Viettel Post can approach low cost power resources but other opponents can entirely copy this strategy However, the most important thing is that with the potentials, capability as well as the support of its upper company - Viettel and especially with “the tradition of military way” 23 that the possibility in remaining lower costs than its competitors, Viettel Post has more chance for success in its racing 3.3.2.2.2 Strategy – Distinction/ Differentiation Strategy 23 Culture Viettel 57 It is possible that at present, only Viettel Post in all Vietnam Postal businesses have more favorable conditions in applying this strategy because its upper company (Viettel) is leading a priority position in investment to abroad in the field of telecoms, the trademark of Viettel has been known by foreign markets In order to apply this strategy, Viettel Post needs to: - Set up research and development procedure (R&D), renew good products; - Possibility in supplying high quality products/service; - Effective promotion and selling activities; Otherwise, this strategy demands the regimes of Viettel Post to be active and dynamic in developing new products, rapid application in the existing markets of Viettel 3.3.2.2.3 Strategy – Horizontal Strategy This is the strategy to make most use of the opportunities to solve the weaknesses of Viettel Post especially at the time of severe competitive market and happening economical crisis However, the strategy requires that the business must take the chances of buying/selling, amalgamation and management plans, to achieve the success, otherwise, it will be faced bankruptcy from the debts of purchasing and amalgamation Generally, in the period 2010 to 2015, Viettel Post is impossible to be dealed or amalgamated 3.3.2.2.4 Strategy – Restructure strategy This strategy is a connection between weak points and challenges in economical crisis period; it is often applied at the time of weak management and low capable human power However, with the reality of Viettel Post, it is better not to apply this strategyCosts until the last chanceSpecialties and it seems not to be happened at least in the period 2010 to 2015 Leading on costs Wide-scale objective market Competitive scale Integration of costs/distinctions 58 Narrow objectiveLeading on costs in a market Distinctions specific market Create a distinction in a specific market Figure 3.11 Analysis model on the competitive advantage 3.3.2.3 Strategy selection The integration between low cost and product differentiation is as follows: - Price: Always lower than direct competitor to be VN Post from 3-5% by applying widely the informatics technology management & operation, minimize costs for the organization machinery as well as link to the passenger transportation & express courier combined models to reduce management & operation costs and product price; - Quality: Building a management system by post, expand & enhance the capacity of the Post Offices, and closely combine with the Viettel commercial collaborators to expand the network & service capacity - GREAT model- based analysis shows that: Criteria Rate Proposal Mark Benefit Risk Cost Feasibility Time Total Proposal Product Mark Product Proposal Mark 0,25 2,25 1,75 0,20 1,20 1,40 0,20 1,20 1,40 0,20 1,80 1,20 0,15 1,20 0,90 1,00 7,65 6,65 Table 3.2 Strategic Analysis based on GREAT model Product 5 1,50 1,60 1,40 1,00 0,75 6,25 The GREAT model based analysis shows that the main strategy of Viettel Post is still “low cost” (market expansion & domination) in the coming time, and the product distinguishing strategies includes the international expansion, the combination & supplementation (consolidation) for the existing strategies However, if the opportunity comes, especially the period of post 2012, the harsh 59 market competition, the Aquizitation & Merging or Joint-venture is completely avoidable (possible) The Viettel Post strategy has the following features/characteristics: - Create a market without competition; - Don’t defeat the competitors, but make competition become invalid & unnecessary; - Don’t pay attention to exploit the present demands, but create & gain the new demands; - Don’t put all the business activities in searching of product distinguishing, or low cost, but apply both strategies together Therefore, Pr Kim & Mauborgne 24 said that this strategy is called as “the Blue Ocean” – a market development & expansion without competition or unnecessary competition 3.3.2.4 Purpose of the Strategy: The selected strategy has met two fundamental matters, take advantage of strong points and opportunities to develop and overcome the shortcomings to implement the defined objectives In order to make this strategy feasible, Viettel Post need to pay its attention to the matters as follows: - Expand & dominate the market to increase the revenue, market share expansion can be implemented by taking advantage of the collaborators at the commercial level, informatics technology system, strength of Viettel brand name to enhance/improve its competitiveness; - Labors must be well trained to improve specialist skill and professional competence to meet the company’s requirements in the new stage; - Further investment in developing new services such as logistic, ecommerce; - Attract the labors from other enterprisers in the redundant labor force crisis situation; - Expand oversea investment; 24 Research and Development Final Report of Dr Kim and Mauborgne at INSEAD Institute (France); 60 - Continue applying innovations & improvements on service supply to minimize costs and enhance the business effectiveness; - Admit the competitors as the partners to collaborate for mutual development; 3.3.3 Process to Implement Strategy: 3.3.3.1 Period (2010 – 2012) This is the preparation period for Vietnam Post & Telecom enterprises before the market is completely opened in 2013 In this stage, Viettel should put its focus on the following contents; - Expanding the local services providing network, reach widely 100% to all the districts all over the country; Time District Quarter II/2010 Quarter IV/2010 QuarterI, Commune Hamlet level 100% II/ 2011 Quarter 50% 80% 50% 70% 100% 80% 100% II,IV/2011 Table 3.3 Plan to expand the local network of Viettel to the year 2012 - Strengthen the propaganda of Viettel brandname – the leading Post Service Provider in Vietnam with a message “Viettel Post – go further far & widely to connect people” - Complete investment in Combodia to make profit from 2011, start investment in Laos, study to expand market to Myanmar, Cuba….; Time Cambodia Quarter II/2010 50% district Lao Other countries Conduct the Study the market survey to Myanmar, Cuba… make investment Quarter 100% district plan Establish 61 a Make investment project in IV/2010 representative branch Quarter I, II/ 30%commune provinces Apply 2011 Quarter permit Open a representative office III, 50%commune 80% district the investment IV/2011 Table 3.4.Viettel Post Plan for expanding the international network to 2012 - Consolidate the organization and personnel in the model of joint-venture companies with professional working environment & financial transparency to improve the brandname as well as liquidity to attract investments from local shareholders and cooperation opportunities with foreign enterprises in the next stage; - Development of traditional postal products and research project planning and implementing new services such as e-commerce, logistic, transport & public passenger transport in order to optimize costs and reduce product price; - Marketshare of the express courier service shall account for 25-30% to the end of 2011 3.3.3.2 Period (2013 – 2015) At this stage, the 100% foreign enterprises are allowed to operate in the postal sector The market is likely to compete fiercely Viettel Post shall deploy a number of activities as follows: - Make the utmost use of effective strength of the network, improve & supplement guidelines of informatics technology exploitation & application to management & operation in addition to self-service network and available to receive cooperation opportunities from foreign enterprises due to difficulties in the network development; - Improve network development in Laos and Combodia and Myanmar to make Viettel Post become the largest postal networks in the region And continue to study the market that Viettel Post has provided telecom services such as Cuba, Bangladesh and African countries 62 - Create & improve the image of Viettel Post – the leading postal brandname in Vietnam and in the region - Developing the value-added services and new service, strive to become a leading enterprise in e-commerce and logistics in Vietnam - Gain 30-40 % of marketshare in Vietnam; 30% of marketshare in Combodia and 20% in Laos 3.3.4 Inspect strategy implementation - Establish a Management Board to implement the strategy under the direction of Directors Board - Search, hire partners that are independent organizations to regularly review the service quality - Regularly construct, develop and access the core values of Viettel culture to run the company 3.3.5 Strategy adjustment Regularly search & apply innovation, creativity is the vitality of the business Therefore, Viettel Post regularly reviews the status of the business environment to adjust strategies accordingly In necessary case, Viettel Post shall carry out to making other strategic in accordance with reality Its motto is “the only thing unchanged is the change” 3.4 IMPLEMENTATION SOLUTIONS 3.4.1 Marketing policies 3.4.1.1 Product policy - Increase the utility services to clients through the modern technology application to provide available services; - Position the most modern products & services in the international & domestic delivery services; - Launch new products & services to exploit such as zone, box… - Provide the delivery on cash service, and electronic payment; - Provide other products such as online sale, logistics 3.4.1.2 Price policy - Keep lower price from 3-5%; 63 - Implement a flexible freight policy, including different freight packages such as door delivery, warehouse to warehouse, time-based freight, volumebased freight package, voyage-based freight package… on the basis of competitive freight 3.4.1.3 Distribution policy - Building direct distribution channel ensuring to meet about 80% of demand - Diversify the distribution channels through agents, sale points, direct collaborators; - Provide services through website; - Making an appreciate market segmentation to build a flexible business plan for each market segment; 3.4.1.4 Promotion policy - Building Viettel Post becomes the first leading postal brandname in Viet Nam; - Using traditional advertisements such as: T.V, Radio, newspaper; - Directing communication through trade shows, attending its’ associations (Poster, brochures etc ); 3.4.2 Revenue Solutions - Using probability statistic data in order to predict development strength of each service’s turnover (refer to table 3.5); - Base on target turnover, we need to aware that in order to reach the target mentioned 100 million USD into the year 2015, the company must concentrate to develop news services such as: logistics E-commerce and especially in international transportation; - On the other hand, aiming to increase the revenue from network expansion - Apply the sale-based policy; develop revenue from new clients; - Develop the value-added services on the postal network such as stationery, publication, telecommunication service; 64 No Year Revenue Estimated Revenue I Current revenue 2005 92,548,868,8 37 2006 100,673,898,084 2007 189,884,173,105 2008 247,217,010,664 2009 377,000,000,000 II Period 2010 - 2012 2010 579,363,050,263 2011 823,730,587,691 2012 1,039,667,127,909 III Period 2012 - 2015 2013 1,345,538,699,126 2014 1,586,642,532,372 2015 1,829,637,159,150 Table 3.5 Estimate Revenue of Viettel in the period of 2015 TO 2020 3.4.3 Organization & Human resource solutions: - Give standards to the labors with the motto “For the Post Enterpriser, manpower (labors) are the most important assets” - Complete the procedure on recruitment, training and selecting with the motto “Fresh water must flow” - Build, consolidate and improve polices to attract the highly-qualified labors in the express courier - Build & develop the business culture 3.4.4 Information of technology application Solutions: Objective: Viettel will become an enterpriser with the most modern express service management technology in Vietnam - Build the softwares for product-positioning, transceiving, means of transport through connected handsets GPRS; 65 - Provide products and services through handsets such as money transfer, issue scratching cards… - Building a conveyor system, packing, automatic selection to increase the labor productivity - Monitor operating schedule, service quality management 3.4.5 Group of countermeasure on cooperation - Seek for good international postal companies to be collection agencies or to sell products directly in Vietnam’s markets; - Cooperate in providing oversea delivery service from Vietnam to foreign countries (build up new trademark or cooperate trademark); - Seek for foreigner partners to cooperate in connection of delivery services ongoing in incoming to Vietnam (cooperate in collection through HUB); - Seek for partners to provide delivery service, mailings, distribution of commodities from overseas to Vietnam; 3.5 RECOMMENDATIONS: 3.5.1 Viettel Corporation (Viettel) - Take interest in, provide guidance and support to Viettel Post in the development of postal services, helping Viettel to accomplish its mission; - Instruct its overseas subsidiaries to cooperate and support Viettel Post in its provision of services overseas 3.5.2 Ministry of Information and Communications - Conduct regular inspection of service provisions of postal enterprise across the country to improve their service quality and publicize service quality of every enterprise annually; - Implement sanction policies for enterprise that violate postal laws CONCLUSION 66 On the basis of application of strategic theory and administration to Viettel Post, the appreciation of the business activities from 2006 to 2008 as well as the analysis of the business environment for the period from 2010 to 2012, the group of authors has defined the strategy “The Blue Ocean” as the strategy of development for the period from 2010 to 2015 In addition, the group of authors also has brought out solutions so as to execute the strategy effectively as well as always perfect and readjust the strategy appropriately for each period The chosen strategy will contribute and help Viettel and Viettel Post fulfill the mission and vision during the process of building and development Truly, the strategy has made the most of and brought to full play of the strong points and grasped at the exciting opportunity, and at the same time pointed out Threats and Challenges to Viettel Post in its production and business activities as well as solution so as to turn threats into favorable, aimed at over coming the obvious challenges The strategy also has determined the periods of executing the strategy and appropriate execution of each and every period, and goals brought out have closely connected to the specific time of execution To successfully carry it out, the strategy has brought out a no-small-issue, that is, proposals not only to the Macro policy but also to the businesses themselves so as to turn that strategy into practice An important case in point, in which as the framework of the project as well as research time did not permit the group of authors to touch upon in time, that is, how to successfully carry out the strategy, the business has got to focus its efforts to construct projects: as overseas investments projects of developing new services (electronic commerce, logistic and so on) aiming to concretize the picked strategy 67 BIBLIOGRAPHY ENGLISH - Chandler, A (1962) Strategy and Structure Cambrige, Massacchusettes MIT Press - E.J Zajac, M.S Kraatz, R.F Bresser “Modeling of Dynamics of Strategic Fit: A Normative Approach to Strategic Change, “Strategic Management Journal (4-2000), pp 429 – 453 - Johnson, G., Scholes, K (1999) Exploring Corporate Strategy, th Ed.Prentice Hall Europe - McGraw, (2007) Strategy Sydney, Hill Company - Quinn, J., B (1980) Strategy and Change: Logical Inscrementalism Homewood, Illinois, Irwin - R.E Hoskisson, M.A Hill, W.P.Wan, and D.Yiu, (1982), “Theory an Research in Strategic Management: Swing of the Pendulum”, Journal of Business Vol25, No.3, pp 417 – 456 - T.J Andersen (2000), “Strategic Planning, Autonomous Actions an Corporate Performance”, Long Range Planning (4-2000), pp 184 – 200 - Wilson, (1994) “Strategic Planning Isn’t Dead – It Changed”, Long Range Planning (8 – 1994), p.20.b VIETNAMESE - Report of VnPost first months of 2009; - Final Report of Viettel Post 2006; - Final Report of Viettel Post 2007; - Final Report of Viettel Post 2008; - Final Report of VnPost 2008; - Final Report of MIC 2006; - Final Report of MIC 2007; - Final Report of MIC 2008; - Culture of Viettel 68 - Minute of meeting “public service future and the postal infrastructure” by Vietnam Union post office on 12/062007 in Hanoi - Article12 Decree 128/2007/NĐ-CP dated 02/08/2007 of government on delivery service - Development viewpoint of the Military Communication Corporation (Viettel) - Studies on Strategy of Dr Kim and Dr.Mauborgne at INSEAD Institute –France (Vietnamese version); 69 [...]... back difficulty for business since resources are shared for many goals On the other hand, the moment enterprise starts to share its resources to many goal is the best time for the attack of other competitors 1.2 CONTENTS OF BUILDING BUSINESS STRATEGY 1.2.1 Defining the business target 17 All enterprises has to define their own business target, in other word, they have to find out their own target for... important marking point among the total The important marking point among the total is maximum at 4 and minimum at 1 The total medium marking point is 2.5 The total important marking point under 2.5 presents the entrepreneur’s weak response against external factors’ changes The total important marking point above 2.5 presents the entrepreneur’s fairly-well response against the business environment 22 INPUT... the environment and strategy.” Therefore, the term strategic is used rather than business policy."4 1.1.2.2 Tasks of Strategic Management: Strategic management has 5 closely inter-related with each other, including: Building scenarios of the future business, stating where a business is heading and where it wants to be? Set goals – turn scenarios into concrete results that businesses must achieve; Building. .. effect from business to business, industry to industry; - Any change among these factors may affect business s internal environment factor - These factors can provide direct or indirect effect to business s operation through relationship with other outside factors 1.2.2.1 Economic Factor The macro economic factors in which business operates, even in other nation global wide such as growth rate, inflation,... structure of industries, including the competitive position of the business focus, the main competitor as well as the development stage of the industry Country analysis to examine the national context of the country in which enterprises are operating, and its favorable conditions as well as difficulties affecting the operation of enterprises Macro-environment analysis includes examining the macroeconomic,... Identifying the importance of each factor following the level of marking point from 1 to 4 (2) Selecting the strategies underlined by the combination stage Evaluating each strategy based on opportunities, threats, strengths, weakness factors following the level of marking point from 1 to 4 (3) A total mark of each strategy is accumulated between the mark of importance evaluation on each factor and the. .. entrepreneur’s readiness level and financial capacity to projects to be 20 invested following the business strategy On the other hand, these factors also reflect entrepreneur’s power to other entrepreneur and competitor 1.2.3.4 Information system Information system plays a key role in the whole strategic management process At different stages of the strategic management, information sources are often seen... strategic management including continuous actions: environmental analysis (internal and external); strategic building; strategy implementation; and strategy testing and evaluation Strategic management is the origin of business policy, strategic management and must integrated with long-term planning strategy However strategic management is not only interested in the integrated functions within the same... analysis In order to keep the business strategy highly feasible, after evaluating the business target, the enterprise must analyze, evaluate the effects from outside to defined target The following features of the outside factors should be considered: - These factors have a strong and long-term effect on business operation while the enterprise cannot manage them; - These factors give different direction and. .. weak to enjoy the advantages of economic scale; high profit rate from the distribution operation 14 (2) Backward combination strategy: is the strategy to increase the possession or controlling over suppliers aiming to sourcing stable, competitive price input… This strategy is applied when current suppliers are too weak, unreliable, inability to meet the production demand of the business and the profit