Chiến lược kinh doanh công ty cổ phần viettel cơ hội và thách thức

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 FRO

LUẬN VĂN THẠC SĨChiến lược kinh doanh công ty cổ phaafnViettel cơ hội và thách thức

THESIS MBABUSINESS STRATEGY IN THE PERIOD OF 2010 - 2015 OF VIETTEL

JSC - DEMANDS AND CHALLENGES

CONTENTS OPENING 5

CHAPTER I: FUNDAMENTAL BASIS ON STRATEGY AND STRATEGIC MANAGEMENT 9

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 2010-2015 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 1 – LOW COST STRATEGY 54

3.3.2.2.2 STRATEGY 2 – DISTINCTION / DIFFERENTIATION STRATEGY .55

3.3.2.2.3 STRATEGY 3 – HORIZONTAL STRATEGY 55

3.3.2.2.4 STRATEGY 4 – 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 1 (2010-2012) 58

3.3.3.2 PERIOD 2 (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 SOLUTIONS62 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

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 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

ENTERPRISESCHAPTER 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

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

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

MOBILIZATION OF RESOURCES IN THE CHANGING

ENVIRONMENT, TO MEET MARKET NEEDS AND EXPECTATIONS OF

STAKEHOLDERS”3

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

2 Quinn, J., B (1980) Strategy and Change: Logical Inscrementalism Homewood, Illinois, Irwin.

3 Johnson, G., Scholes, K (1999) Exploring Corporate Strategy, 5 th Ed.Prentice Hall Europe.

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

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

WITH THIS CONCEPT, 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 POLICY BUT ALSO FOCUS MORE ON

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 STRATEGIES TO ACHIEVE DESIRED GOALS;

IMPLEMENTING AND MANAGING STRATEGY EFFECTIVELY AND

EFFICIENTLY;

EVALUATE PERFORMANCE AND INITIATE ADJUSTMENTS ON

SCENARIOS, LONG-TERM DIRECTION, GOALS, STRATEGIES OR IMPLEMENTATION BASED ON EXPERIENCE, CONDITIONS FOR

CHANGE, IDEAS AND NEW OPPORTUNITIES

1.1.2.3 BENEFITS OF STRATEGIC MANAGEMENT:

MANY STUDIES SHOWED THAT, IF APPLIED STRATEGIC

MANAGEMENT, BUSINESS WILL ACHIEVE BETTER PERFORMANCE COMPARED TO FIRMS NOT IMPLEMENTING THIS PROCESS5 IF ACHIEVE THE APPROPRIATE ENVIRONMENT FOR BUSINESS

4 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.

5 T.J Andersen (2000), “Strategic Planning, Autonomous Actions an Corporate Performance”, Long Range Planning (4-2000), pp 184 – 200.

STRATEGY, STRUCTURE AND PROCESSES THEN IT WILL CREATE

POSITIVE EFFECTS ON PERFORMANCE OF THE BUSINESS6 PRACTICALLY THE BENEFIT OF STRATEGIC

MANAGEMENT HAS BEEN TESTED EXTENSIVELY AND CAN BE SUMMARIZED INTO THE MOST BASIC POINTS AS FOLLOWING:

- MAKE CLEARER VISION OF BUSINESS STRATEGY;

- FOCUS MORE ON THE SIGNIFICANCE OF THE STRATEGY;

- IMPROVE AWARENESS OF THE RAPID CHANGES OF THE

ENVIRONMENT.7HOWEVER, TO HAVE EFFECTIVE MANAGEMENT STRATEGIES, THERE WILL ALWAYS BE A PROCESS OF ANSWERING THREE QUESTIONS: WHERE ARE THE ENTERPRISE?, WHERE IS IT

HEADING? HOW TO GET THERE?

1.1.3 STRATEGIC MANAGEMENT MODEL

1.1.3.1 STRATEGIC MANAGEMENT PROCESS

UNTIL NOW, SCIENTISTS AND MANAGERS HAVE PROPOSED SEVERAL STRATEGIC PLANNING MODELS HOWEVER, IN GENERAL, STRATEGIC PLANNING PROCESS CAN BE DIVIDED INTO FIVE

WITHIN THE MEDIUM AND LONG TERM

6 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.

7 Wilson, (1994) “Strategic Planning Isn’t Dead – It Changed”, Long Range Planning (8 – 1994), p.20.

STEP 2 EXTERNAL ENVIRONMENT ANALYSIS TO IDENTIFY

OPPORTUNITIES AND CHALLENGES:

EXTERNAL ENVIRONMENT HAS THREE TYPES OF RELATIONSHIPS CLOSELY LINK TOGETHER: THE INDUSTRY, THE COUNTRY

ENVIRONMENT AND MACRO ENVIRONMENT

INDUSTRY ANALYSIS IS EVALUATING THE COMPETITIVE 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, SOCIAL, GOVERNMENTAL, LEGAL, INTERNATIONAL AND TECHNOLOGICAL FACTORS THAT CAN

IMPACT BUSINESS

STEP 3 ENVIRONMENTAL ANALYSIS IS TO IDENTIFY THE

STRENGTHS AND WEAKNESSES OF THE ENTERPRISE:

THE ENVIRONMENTAL ANALYSIS WILL FIND HOW TO ACHIEVE BUSINESS COMPETITIVE ADVANTAGE, AND THE ROLE OF DIFFERENT CAPACITIES, RESOURCES AND ABILITY TO CREATE AND MAINTAIN SUSTAINABLE COMPETITIVE ADVANTAGE FOR

BUSINESS

STEP 4 SELECTION STRATEGIES BASED ON THE SEARCH FOR

RESOURCES, CAPABILITIES AND CORE CAPABILITIES AND

DEVELOP IT TO TAKE ADVANTAGE OF THE OPPORTUNITIES AND STRENGTHS, SOLVING THE CHALLENGES AND WEAKNESSES;

STEP 5 IMPLEMENTATION STRATEGY

WHEN COMPANIES HAVE CHOSEN TO ACHIEVE STRATEGIC OBJECTIVES, THE STRATEGIES THAT NEED TO BE PUT INTO EXECUTION WITHIN THIS TOPIC, THE IMPLEMENTATION OF STRATEGIES IS DIVIDED INTO FOUR PARTS, INCLUDING: (1) BUILDING APPROPRIATE BUSINESS STRUCTURE, (2) BUILDING CONTROL SYSTEM; (3) CREATE A MATCH BETWEEN STRATEGY, BUSINESS STRUCTURE, AND CONTROL SYSTEMS, (4) CONTROL

CONFLICT AND CHANGE

Vision and Mission

Strategies selection and

building

Functional strategyBusiness strategyGlobal strategyCorporate strategy

Internal Analysis External Analysis

Matching strategy, structure and control

Control building Organizational

structure

Strategic adjustment

FIGURE: 1.1 STRATEGIC PLANNING MODEL

1.1.3.2 STRATEGIC SYSTEM IN COMPANY

1.1.3.2.1 MIXED STRATEGIES

MIXED STRATEGY ALLOWS COMPANIES TO INCREASE CONTROL OVER THE DISTRIBUTORS, SUPPLIERS OR COMPETITORS

THE STRATEGIC COMBINATION INCLUDES:

(1) FORWARD MIXED STRATEGY: A STRATEGIC INCREASE

OWNERSHIP OR CONTROL OVER THE DISTRIBUTORS OR

RETAILERS (FRANCHISES TO EXPAND PRODUCT DISTRIBUTION

AND SERVICES)

THIS STRATEGY IS USED WHEN CURRENT DISTRIBUTION SYSTEM HAS LOW CONFIDENCE OR WEAK TO ENJOY THE ADVANTAGES OF ECONOMIC SCALE; HIGH PROFIT RATE FROM THE DISTRIBUTION

OPERATION

(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 RATE FROM THE

INTENSIVE SUPPLY

(3) HORIZONTAL COMBINATION STRATEGY: IS THE

STRATEGY TO SEEK FOR THE POSSESSION OR CONTROLLING OVER COMPETITORS THROUGH A&M, BUY-BACK…IN ORDER TO ACHIEVE PROFIT FROM THE MASSIVE SCALE THIS STRATEGY WORKS WHEN THE ENTERPRISE IS ABLE TO MONOPOLIZE AN INDUSTRY OR A BUSINESS SECTOR; OR IN A HARD COMPETITION AND THE INDUSTRY IS AGGRESSIVELY DEVELOPING; OR WHEN THE COMPETITOR FACES DIFFICULTIES OF WEAK MANAGEMENT,

SHORT OF RESOURCES WHICH THE ENTERPRISE HAS CURRENTLY

BEEN POSSESSING

1.1.3.2.2 SPECIALLY INTENSIVE STRATEGIES

SPECIALLY INTENSIVE STRATEGIES ARE THOSE TO STRENGTHEN THE POSITION OF THE ENTERPRISE WITH THE CURRENT PRODUCTS

SPECIALLY INTENSIVE STRATEGIES INCLUDING:

(1) MARKET PENETRATION STRATEGY: THIS STRATEGY WORKS

THROUGH MEASURES LIKE INCREASING SALES STAFF,

ADVERTISING COST AND PROMOTION… AIMING TO ENHANCE THE MARKET SHARE OF A CURRENT PRODUCT OR SERVICE WITHIN A DEFINED MARKET THIS STRATEGY IS APPLICABLE WHEN THE DEFINED MARKET CAPACITY HAS NOT BEEN REACHED THE SATURATION AND THE ROOM FOR PRODUCT OR SERVICE IS STILL AVAILABLE; MARKET SHARE OF COMPETITORS GO DOWN BUT THE

TOTAL INDUSTRY SALES GOES UP

(2) MARKET DEVELOPMENT STRATEGY: THE STRATEGY

RELATED TO DEPLOYMENT OF A CURRENT PRODUCT OR SERVICE INTO A NEW MARKET OR GEOGRAPHICAL AREA THE STRATEGY APPLICATION IS WHEN THE ENTERPRISE IS ABLE TO RESEARCH AND PENETRATE THE MARKET, ESPECIALLY, OVERSEA ONES; THE PRODUCTION CAPACITY OF ENTERPRISE HAS NOT BEEN FULLY PUT INTO OPERATION AND THE DISTRIBUTION CHANNEL IN THE NEW MARKET IS RELIABLE, GOOD QUALITY, AT A DUE COST

(3) PRODUCT DEVELOPMENT STRATEGY: THROUGH

INVESTMENT FOR RESEARCH AND DEVELOPING ACTIVITIES, THE ENTERPRISE IS CAPABLE TO LAUNCH NEWLY IMPROVED

PRODUCTS FROM CURRENT ONES THIS STRATEGY IS USED WHEN PRODUCT IS ABOUT OR IN THE SATURATION PHASE (THE PRODUCT

IS REACHING TO THE END OF PRODUCT LIFE CYCLE); ENTERPRISE

IS OPERATING IN FAST GROWING INDUSTRY WITH HIGH RATE OF TECHNOLOGICAL APPLICATION AND HARD COMPETITION

1.1.3.2.3 BUSINESS EXPANSION STRATEGIES

BUSINESS EXPANSION STRATEGY IS THE ACTIVITIES OF

ENTERPRISE TO DIVERSIFY ITS BUSINESS INCLUDING THE

FOLLOWING:

(1) DIVERSIFIED UNANIMOUS ACTIVITY STRATEGY: IS THE

STRATEGY TO ADD MORE RELATIVE OR INTERACTIVE PRODUCTS

OR SERVICE TO CURRENT ONES OF THE ENTERPRISE THIS STRATEGY IS APPLIED WHEN PRODUCT REACH THE END OF ITS LIFE CYCLE AND THE INDUSTRY GROWTH RATE IS LOW; THE NEW RELATIVE PRODUCT WHICH IS INCORPORATED WITH OLD ONE IS

SUPPOSED TO IMPROVE THE SALES OF ENTERPRISE

(2) HORIZONTALLY DIVERSIFIED ACTIVITIES STRATEGY: IS

THE STRATEGY TO EXPLORE FROM CURRENT CUSTOMERS THROUGH PROVIDING NEW AND SEPARATED SERVICES OR PRODUCTS THIS STRATEGY IS APPLICABLE WHEN THE TURNOVER FROM CURRENT PRODUCT DRAMATICALLY INCREASES WITH THE PRESENCE OF NEWLY SEPARATED PRODUCT; THE COMPETITION IN INDUSTRY IS HIGH AND ALONG WITH LOW RATE OF GROWTH OR EVEN ZERO; THE CURRENT DISTRIBUTION CHANNEL IS ABLE TO

SERVE CURRENT CUSTOMERS

(3) MIXED DIVERSIFIED ACTIVITIES STRATEGY: IS TO

PROMOTE NEW AND SEPARATED PRODUCTS OR SERVICES THIS IS

USED WHEN THE INDUSTRY GROWTH RATE IS ZERO OR

DOWNWARD; THE MARKET IS SATURATED WITH PRODUCT OR SERVICE PROVIDED BY ENTERPRISE; ENTERPRISE IS AFFORDABLE AND MANPOWER-CAPABLE TO BUY-BACK OR INTRUDE INTO A

NEW INDUSTRY

1.1.3.2.4 OTHER STRATEGIES

IN PRACTICE, THE ENTERPRISES CAN DEFINE SOME SPECIAL

STRATEGIES AS FOLLOWING:

(1) JOINT VENTURE: IS THE STRATEGY TO BUILD UP A NEW

BUSINESS OR AN ASSOCIATION FROM 2 OR MORE ORIGIN

ENTERPRISES TO INCREASE THE CAPITAL, INVESTMENT

OPPORTUNITY, NEW MARKET PENETRATION, RISK

DISSEMINATION… SOME POPULAR JOINT VENTURE TYPES ARE: RESEARCH AND DEVELOPMENT JOINT VENTURE, CROSSED PRODUCT DISTRIBUTION CONTRACT, CROSSED FRANCHISE CONTRACT THIS STRATEGY IS APPLIED IN HIGHLY RETURN PROJECTS REQUIRING HUGE CAPITAL, MANAGEMENT AND OTHER RESOURCES THAT A SINGLE ENTERPRISE CANNOT AFFORD; ENTERPRISES ARE CONFRONTING DIFFICULT COMPETITION OR RISK DISSEMINATION (ESPECIALLY FOR JOINT VENTURE BETWEEN LOCAL AND INTERNATIONAL COMPANY); DEPLOYING OR

INTRODUCING A NEW TECHNOLOGY

(2) OPERATION REDUCTION: IS THE APPLICABLE STRATEGY

IN CASE OF REDUCTION OF PROFIT AND SALES DUE TO THE WEAK OPERATION OF ONE OR MORE AFFILIATES THE ENTERPRISES USUALLY USE SOME OF THE FOLLOWING METHODS:

CONTROLLING AND CUTTING COST, ELIMINATING UNPROFITABLE BUSINESS, AUTOMATING PRODUCTION LINE… THIS STRATEGY IS USED BY THE LEAST COMPETITIVE ENTERPRISE OF AN INDUSTRY; ENTERPRISE THAT USE OVER-SPEED STRATEGY WHICH CANNOT

BE CURBED AND INEFFECTIVE SO THEY NEED TO BE

RESTRUCTURED

(3) OPERATION PARTIAL CUT: IT CAN BE CONSIDERED AS A

PART OF OPERATION REDUCTION THIS STRATEGY’S PURPOSE IS

TO ELIMINATE UNPROFITABLE OR UNSUITABLE BUSINESS FOR ENTERPRISE’S OPERATION THIS STRATEGY IS APPLIED WHEN ENTERPRISE PURSUES OPERATION REDUCTION STRATEGY BUT THE IMPROVEMENT PROCESS FAILS AND NO POSITIVE RESULT;

THE ENTERPRISE HAS SELECTED THE CORE BUSINESS; ENTERPRISE

NEEDS CAPITAL BUT NO OTHER SOURCE IS AVAILABLE

(4) LIQUIDATION: IS THE RECOGNITION OF FAILURE

THROUGH SELLING ALL ENTERPRISE’S PROPERTY AT ITS REAL PRICE AIMING TO STOP THE PERSISTENTLY IRRESISTIBLE LOST THIS STRATEGY IS USED WHEN BOTH OPERATION REDUCTION AND OPERATION PARTIAL CUT DO NOT WORK; ENTERPRISE GOES

BANKRUPT

(5) GENERAL STRATEGY: IS THE METHOD TO COMBINE 2 OR

MORE ABOVE MENTIONED STRATEGIES WITH THE LIMITED RESOURCES, PURSUING MANY STRATEGIES AT THE SAME TIME MAY BRING 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

ALL ENTERPRISES HAS TO DEFINE THEIR OWN BUSINESS TARGET, IN OTHER WORD, THEY HAVE TO FIND OUT THEIR OWN TARGET FOR EXISTENCE A GOOD BUSINESS MUST BE BUILT ON THE BASIS OF RESEARCH, FACTOR ANALSYS (INTERNAL AND EXTERNAL FACTORS), AND EFFECTS (DIRECT AND INDIRECT) TO BUSINESS OPERATION A BUSINESS TARGET MUST COVER FOLLOWING CONTENTS: DEVELOPMENT STRATEGY, BUSINESS PHILOSOPHY, TARGET CUSTOMERS AND MARKET, CORE

PRODUCTS AND SERVICE, APPLICABLE TECHNOLOGY,

PROFITABILITY, COMPETITIVENESS, SOCIAL RESPONSIBILITY,

NECESSARY RESOURCES TO ACHIVE TARGET

1.2.2 EXTERNAL ENVIRONMENT 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

RESULTS

1.2.2.2 CULTURAL AND SOCIAL FACTOR

CULTURAL AND SOCIAL ENVIRONMENT INCLUDES THE STANDARDS AND VALUES ACCEPTABLE TO A SPECIFIC

GEOGRAPHY, COUNTRY OR CIVILIZATION IN GENERAL, THE SOCIAL AND CULTURAL TRANSFORMATION IS LATER THAN OTHER FACTOR GROUPS AND INFLUENCED BY OTHER FACTORS

FROM THE EXTERNAL ENVIRONMENT

1.2.2.3 POLITIC AND LEGISLATION FACTOR

THIS GROUP INCLUDES POLITIC INSTITUTION, VIEWPOINT, POLICY DOMINATED BY THE CURRENT ADMINISTRATION MACHINERY, LEGAL SYSTEM, POLITIC AND EXTERNAL RELATIONS TREND ETC…A SWITCH BY THIS GROUP IS FULLY CAPABLE TO BRING ABOUT POTENTIAL OPPORTUNITIES TO ENTREPRENEUR, ALSO IMPOSED CHALLENGES TO THE IMPLEMENTATION OF THE

SET FORTH BUSINESS TARGETS

1.2.2.4 TECHNOLOGICAL FACTOR

AMIDST THE RAPID EVOLUTION OF SCIENCE AND TECHNOLOGY, THE TECHNOLOGICAL FACTOR IS CONSIDERED AS THE MOST DYNAMIC AS WELL AS THE MOST UNSTABLE AMONG THE AFFECTED FACTORS FROM THE EXTERNAL ENVIRONMENT THE PROGRESS OF SCIENCE AND TECHNOLOGY WILL DECIDE SERVICES, PRODUCTS’ RECYCLE, BUSINESS STRATEGY AND THE IMPLEMENTATION OF LONG TERM TARGETS SET FORTH BY

ENTREPRENEUR

1.2.2.5 COMPETITIVE FACTOR

BASE ON THE PUBLIC BENEFIT ASSESSMENT, THE COMPETITION IS A DRIVING FORCE TOWARD THE DEVELOPMENT HOWEVER, THIS FACTOR IS ALSO A BIGGEST CHALLENGE FOR ANY

ENTREPRENEUR TO OVERCOME EVERYDAY TO SUSTAIN

COMPETITIVE ADVANTAGE, NECESSARY CLASSIFICATIONS OF COMPETITORS ARE TO BE CONDUCTED BY MANAGER FOLLOWING DIFFERENT DISPLAYS AS INFLUENCE AND COMPETITIVE LEVEL ETC…BY THE WAY, AN APPROPRIATE COMPETITIVE STRATEGY IS DRAW UP THOUGH OF CONDUCTING DIFFERENT CLASSIFICATION,

MANAGERS HAVE TO IDENTIFY AND UNDERSTAND THEIR COMPETITORS BEFORE THE COMPETITIVE STRATEGY TO BE MADE

1.2.3 INTERNAL ENVIRONMENT ANALYSIS

EACH ENTREPRENEUR HAS ITS OWN STRENGTHS AND WEAKNESSES DUE TO ITS ESSENTIAL FEATURES THE ANALYSIS PROCESS OF THE STRENGTHS AND WEAKNESSES WILL HELP MANAGERS EVALUATE PRECISELY ENTREPRENEUR IN TERM OF QUANTITIVE AND QUALITATIVE RESOURCES SO, THEY CAN WORK OUT PLAN TO MOBILIZE, DISTRIBUTE AND UTILIZE EFFICIENTLY THESE RESOURCES IN IMPLEMENTING THE SET FORTH BUSINESS

TARGETS

1.2.3.1 MANAGEMENT

PLANNING WORK IS ASSOCIATED WITH ESTIMATION WORK, TARGET DESIGN, STRATEGY DEVELOPMENT AND APPROPRIATE STRATEGY SELECTION IT IS A FUNDAMENTAL TO DEVELOP A STRATEGY, ALSO A DIRECTION FOR THE IMPLEMENTATION AND

EVALUATION OF THE STRATEGY

ORGANIZING IS UNDERSTOOD OF A PROCESS TO DISTRIBUTE WORK IN APPROPRIATE PARTS, SECTIONS AND ARRANGE PERSONNEL TO POSITIONS THROUGH THE IDENTIFICATION OF THE LINK BETWEEN RESPONSIBILITIES AND OBLIGATIONS TOWARD

THE EFFECTIVE COOPERATION

SUPERVISION IS A FINAL FUNCTION OF THE MANAGEMENT WORK THE SUPERVISION IS MAINLY INVOLVED IN THE PHASE OF STRATEGY EVALUATION WITHIN THE OVERALL PROCESS OF THE

STRATEGY MANAGEMENT

CUSTOMER, COMPETITOR AND INTERNAL EVALUATION ARE CLOSELY LINKED WITH MARKETING IN OTHER WORDS, GOOD MARKETING ALSO MEANS THERE ARE POTENTIAL OPPORTUNITIES FOR ENTREPRENEUR TO IMPLEMENT AND DEVELOP WELL THE SET

FORTH BUSINESS STRATEGY

1.2.3.3 FINANCE AND ACCOUNTING

FINANCIAL FACTOR IS PRESENTED ON FINANCIAL INDICATORS THAT ARE CONSIDERED AS A BEST SOLUTION ON COMPETITIVE ASSESSMENT, ALSO A FUNDAMENTAL TO WORK OUT INVESTMENT DECISION BY INVESTOR AND ENTREPRENEUR

AS WELL FINANCIAL INDICATORS PRESENT ENTREPRENEUR’S READINESS LEVEL AND FINANCIAL CAPACITY TO PROJECTS TO BE 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 AS A FUNDAMENTAL TOWARD MANAGEMENT DECISIONS INFORMATION RESEARCH IS NOT ONLY NECESSARY FOR DIFFERENT LEVELS OF STRATEGIC MANAGEMENT, BUT ALSO

A COMPULSORY WORK FOR THE ENTIRE STAFF IN AN

ENTREPRENEUR THIS WORK IMPOSES A CRITICAL DEMAND IN CONDUCTING THE PROCESS OF INFORMATION COLLECTION, ANALYSIS AND EXCHANGE IN A LOGIC MANNER WITHIN THE

INTERNAL ENTREPRENEUR

1.2.3.5 INTERNAL SUPERVISION

INTERNAL SUPERVISION WHICH IS OFTEN ASSOCIATED WITH OTHER FACTORS WITHIN THE INTERNAL ENTREPRENEUR, ALSO SEEN AS A FUNDAMENTAL TO IDENTIFY THE STRENGTH AND THE WEAKNESS IN ORDER TO CONDUCT INTERNAL SUPERVISION, A SERIES OF INDICATORS RAISED BY MANAGERS THOSE ARE LINKED

WITH MANAGEMENT, MARKETING, FINANCE, CAPACITY,

WORKFORCE, PRODUCTS QUALITY, SERVICES…IN ADDITION, SOME ENTREPRENEURS ESTABLISH A FULL-TIME UNIT OF INTERNAL SUPERVISION WITH STAFFS BEING WELL TRAINED ON

MANAGEMENT

1.2.4 PROCESS ON ANALYSIS AND STRATEGIC SELECTION

1.2.4.1 INPUT STAGE -EXTERNAL FACTORS EVALUATION MATRIX (EFA) IS DESIGNED TO

EVALUATE EXTERNAL FACTORS HOW TO AFFECT ENTREPRENEUR THE EFA MATRIX DEVELOPMENT IS BASED ON THE FOLLOWING

STEPS:

(1)LISTING OUT EXTERNAL FACTORS THAT PLAY A KEY ROLE

TOWARD THE SUCCESS OF AN ENTREPRENEUR

(2)IDENTIFYING THE IMPORTANCE OF THE FACTORS THROUGH

CLASSIFICATION LEVEL FROM 0 TO 1 (IN WHICH 0 - UNIMPORTANCE AND 1 – MOST IMPORTANCE)(3)EVALUATING ENTREPRENEUR’S RESPONSE TO LISTED-OUT FACTORS IS FOLLOWED MARKING POINT FROM 1 TO 4 (IN WHICH 4 – STRONG RESPONSE AND 1 – WEAK RESPONSE)(4)MULTIPLYING THE IMPORTANCE OF EACH FACTOR TO

IDENTIFY MARKING POINT FOR ENTREPRENEUR(5)ADDING ALL FACTORS’ MARKING POINT TO IDENTIFY 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

FIGURE 1.2 PROCESS ON STRATEGIC SELECTION

(SOURCE: FRED R DAVID –DEFINITION OF STRATEGIC

MANAGEMENT)

-INTERNAL FACTORS EVALUATION MATRIX (IFE) IS DESIGNED

TO IDENTIFY THE STRENGTH AND THE WEAKNESS OF

ENTREPRENEUR THE IFE MATRIX DEVELOPMENT IS NEARLY AS SAME AS THE EFE MATRIX DEVELOPMENT HOWEVER, THERE IS

A LITTLE DIFFERENT THROUGH REPLACING FACTORS

EVALUATION BY THE STRENGTH AND THE WEAKNESS

EVALUATION

-COMPETITIVE IMAGE MATRIX IS SEEN AS THE MOST

IMPORTANCE AMONG BUSINESS EVENTS AND ENVIRONMENT TREND THAT PROBABLY HAVE IMPACT ON THE DEVELOPMENT

OF ENTREPRENEUR’S STRATEGY THE COMPETITIVE IMAGE MATRIX IS USED TO IDENTIFY MAIN COMPETITORS WITH THEIR

STRENGTH AND WEAKNESS

1.2.4.2 COMBINATION STAGE

THERE ARE DIFFERENT TOOLS TO BE USED AT THE COMBINATION STAGE EACH TOOL HAS BOTH ADVANTAGES AND LIMITS HOWEVER, THE POPULAR TOOL USED BY

ENTREPRENEUR IS SWOT MATRIX

THE SWOT MATRIX HELPS ENTREPRENEUR TO LIST OUT

STRATEGIES IN LINE WITH ITS STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS HOWEVER, IT DOES NOT MEAN

ALL STRATEGIES BASED ON SWOT MATRIX, ARE BEING

IMPLEMENTED BY ENTREPRENEUR LATER

THE SWOT MATRIX ANALYSIS PROCESS IS DEVELOPED ON THE

FOLLOWING STEPS:

(1) LISTING OUT HUGE OPPORTUNITIES AND THREATS

AFFECTED BY EXTERNAL ENVIRONMENT AS WELL AS IDENTIFYING THE STRENGTHS AND THE WEAKNESSES OF

ENTREPRENEUR

(2) COMBINING THE INTERNAL STRENGTHS WITH THE

EXTERNAL OPPORTUNITIES TO DEVELOP THE SO STRATEGY.(3) COMBINING THE INTERNAL WEAKNESSES WITH THE EXTERNAL OPPORTUNITIES TO DEVELOP THE WO STRATEGY.(4) COMBINING THE INTERNAL STRENGTHS WITH THE

EXTERNAL THREATS TO DEVELOP THE ST STRATEGY

WO STRATEGY:

OVERCOMING THE ENTREPRENEUR’S WEAKNESSES BY MAKING USE OF CONVENIENT OPPORTUNITIES

THREATS

ST STRATEGY:

TAKING ADVANTAGE OF THE

INTERNAL STRENGTHS TO OVERCOME THREATS AFFECTED

BY EXTERNAL BUSINESS ENVIRONMENT

WT STRATEGY:

MINIMIZING THE THREATS AFFECTED

BY EXTERNAL ENVIRONMENT AND OVERCOMING THE WEAKNESSES

TABLE 1.1 SWOT MATRIX MODEL 1.2.4.3 DECISION STAGE

1.2.4.3.1 THE QSPM MATRIX UTILIZES THE COLLECTED

INFORMATION BY THE INPUT STAGE TO EVALUATE THE STRATEGIES’ FEASIBILITY BY THE COMBINATION STAGE IN OTHER WORD, THE QSPM MATRIX PROVIDES SCIENTIFIC ESSENTIALS IN MAKING QUANTITIVE ANALYSIS OF DIFFERENT STRATEGIES BY THE WAYS, MANAGER’S VISION BECOMES MORE OBJECTIVE, MORE ACCURACY BEFORE MAKING OUT STRATEGIC

DECISIONS

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 MARK OF STRATEGY EVALUATION.1.2.4.3.2 THE GREAT MATRIX IS RATHER POPULAR TO BE USED IN MAKING ANALYSIS OF STRATEGIC MANAGEMENT, COMPETITIVE STRATEGY GREAT ALLOWS THE STRATEGY TO BE SELECTED ON

THE BASIS OF FACTORS’INFLUENCE RATE. 8

G: GAINR: RISKE: EXPENSEA: ACHIEVABILITY

8 McGraw, (2007) Strategy Sydney, Hill Company.

STABILITY AND HUMAN BEING IMPLICATION THEREFORE, CONFRONTING WITH TREMENDOUS TRANSFORMATIONS THAT PROBABLY CHANGE STANDARD BELIEF AND VALUE, MEMBERS WILL HAVE DIFFERENT REACTION IN SOMEHOW WITH A VIEW TO MAINTAIN OR RE-STABILIZE OLD CULTURAL ARRANGEMENT SINCE THE CULTURAL SIDE, ENTREPRENEUR’S CULTURE

PRESENTS POSITIVELY AS IT IS REFLECTED THE GREAT UNITY

AND THE STRENGTHS OF ENTREPRENEUR

A STRATEGY CHANGE OR NEW APPLICATION IS AN ENORMOUS ISSUE IN MANY CASES, THE BUSINESS STRATEGY BECOMES FEASIBLE WHEN IT IS DEVELOPED ON THE BASIS OF ANALYSIS AND EVALUATION IN LINE WITH THE EXISTING ENTREPRENEUR’S CULTURE SINCE THE CULTURAL SIDE, ENTREPRENEUR’S CULTURE DOES NOT PRESENT POSITIVELY AND BECOMES A HINDRANCE TO THE DEVELOPMENT THEREFORE, MEANWHILE PLANNING AND CONDUCTING THE STRATEGY, MANAGER SHOULD NOT DEPENDS ABSOLUTELY ON THE EXISTING CULTURAL VALUES, IT WOULD BE FOR MANAGER TO CHANGE AND SHAPE UP THE EXISTING CULTURAL VALUES IN SUPPORT FOR

THE BUSINESS STRATEGIES TO BE EXERCISED SOON

1.2.5.2 POLITICAL SIDE

WITHIN THIS RESEARCH, THE POLITICAL FACTOR IS MENTIONED AS AN INDIVIDUAL ALLIANCE FOR THE NEGATIVE PURPOSES FOR THIS MEANING, POLITICAL FACTOR IS ALWAYS CONSIDERED AS BARRIERS AGAINST TO WORKING OUT

STRATEGY-RELATED DECISIONS

POLITICAL FACTORS ALWAYS EXIST OBJECTIVELY IN ENTREPRENEUR THEREFORE, HANDLING POLITICAL FACTORS IS ALWAYS APART IN THE STRATEGY MANAGEMENT THERE ARE VARIOUS SOLUTIONS TO MINIMIZE NEGATIVE IMPACT FROM

POLITICAL FACTORS HOWEVER, THE MOST ESSENTIAL THAT MANAGER KNOWS HOW TO GATHER AND BRING INTO FULL PLAY THE STRENGTHS OF ALL INTERNAL RESOURCE, ESPECIALLY THE

HUMAN RESOURCE

CHAPTER 2

OPERATION ANALYSIS OF MILITARY TELECOM CORPORATION

(VIETTEL) POST JSC PERIOD 2006-2008

2.1 INTRODUCTION TO VIETTEL POST JSC

2.1.1 GENERAL INTRODUCTION

PREVIOUSLY, IT WAS AN ENTREPRENEUR BELONGS TO THE MILITARY TELECOMMUNICATION GROUP CURRENTLY, IT HAS BEEN TRANSFERRED INTO A JOINT STOCK COMPANY SINCE JULY

2009, KNOWN AS VIETTEL POST JSC WITH THE DEVELOPMENT

RECORDS AS FOLLOW:

-1 JULY 1997, ESTABLISHING THE NEWSPAPER DELIVERY AGENCY BELONGS TO THE MILITARY ELECTRONIC-TELECOM COMPANY THAT WAS FUNCTIONED ON PROVIDING NEWSPAPER DELIVERY SERVICES FOR ORGANS BELONGS TO THE MINISTRY OF

DEFENSE AND HANOI’S MILITARY BASES;

-PERIOD 1998-2000, VIETTEL WAS CONCENTRATED ON EXTENDING THE POST SERVICES SUPPLY TO THE NATIONWIDE, CONCURRENTLY STARTED EXPRESS DELIVERY SERVICE BOTH AT

HOME AND ABROAD;

-2000, VIETTEL POST CENTRE WAS ESTABLISHED ON THE BASIS OF THE NEWSPAPER DELIVERY AGENCY;

-12 JANUARY 2006, MINISTER OF DEFENCE ISSUED THE DECISION NO.10/2006/QD-BQP ON THE ESTABLISHMENT OF THE

VIETTEL POST CO., BELONGS TO THE MILITARY TELECOMMUNICATION GROUP BY RESTRUCTURING THE VIETTEL POST CENTRE THE VIETTEL POST CO’S CHAPTER CAPITAL WAS REGISTERED AT VND 40 BILLION, WITH ITS MAIN OPERATION IN EXPRESS, NEWSPAPERS DELIVERY AND TELECOMMUNICATION

SERVICES

VIETTEL POST ORGANIZATIONAL STRUCTURE:

MANAGEMENT BOARD

FIGURE 2.1 ORGANIZATIONAL STRUCTURE OF VIETTEL POST JSC.

THE VIETTEL POST JSC ORGANIZING CHART HAS BEEN

RESTRUCTURED IN LINE WITH THE EQUALIZATION PROCESS

DISTRICT LEVEL

VIETTEL POST JOINT STOCK COMPANY

INTERPROVINCAL

CITY COMPANY

COMPANY MEMBERS

ABROARD COMPANY

BRANCH AT 63 CITY/PROVINCE

POST OFFICE AT DISTRICT LEVEL

FIGURE 2.2 STRUCTURE OF VIETTEL POST JSC

CURRENTLY, VIETTEL POST JSC HAS BEEN PROVIDING THE FOLLOWING SERVICES IN THE NATIONWIDE AND CAMBODIA

MARKET:

-EXPRESS DELIVERY BOTH AT HOME AND ABROAD;

-NEWSPAPER DELIVERY;

-STATIONARY SUPPLY;

-TELECOMMUNICATION AUTHORIZED DEALER;

-INSURANCE AUTHORIZED DEALER;

-PUBLIC TRANSPORTATION IN CAMBODIA (SINCE AUGUST 2009);TOWARD A CONVENIENCE ON ANALYZING THIS RESEARCH, VIETTEL POST JSC’S SERVICES IS CATEGORIZED INTO 4 GROUPS AS EXPRESS SERVICE, NEWSPAPER DELIVERY SERVICE, FOREIGN-BASED SERVICE AND OTHERS (STATIONARY SUPPLY,

TELECOMMUNICATION DEALER….)THE VIETTEL POST JSC’S STAKEHOLDERS CONGRESS IS

DETERMINED VIETTEL POST JSC’S TARGET AFTER 3 YEARS OF

BEING EQUITISED (PERIOD 2010-2012) THAT VIETTEL POST JSC WILL BECOME A LEADING PROVIDER IN DELIVERY SERVICE, OBTAIN REVENUE OF VND 1 TRILLION AND EXTEND ITS SERVICE NETWORK TO 100% ADMINISTRATIVE ORGANS AT DISTRICT

LEVEL BY 2012.

2.1.2 FEATURES OF POST SERVICE SECTOR

POST SECTOR-RELATED PRODUCTS ARE OFTEN TRADITIONAL ONES, SEEN AS THE MOST DYNAMIC ITEM AMONG BUSINESS SERVICES THEY ARE BOTH OF CONSUMPTION AND PRODUCTION

SERVICES

POST-RELATED PRODUCTS ARE CONSUMPTION SERVICES WHEN THEY MEET THE DAILY LIFE COMMUNICATION AND INFORMATION

DEMAND POST-RELATED PRODUCTS ARE PRODUCTION SERVICES WHEN THEY INVOLVE IN THE PRODUCTION, CIRCULATION AND TRANSMISSION OF INFORMATION, SERVICE IN SUPPORT TO THE

BUSINESS

POST-RELATED PRODUCTS ARE CONTAINED FULL GENERAL FEATURES OF SERVICE PRODUCTS I.E IMMATERIAL, INSEPARABLE FEATURE, PRODUCTION PROCESS PARALLELS CONSUMPTION

PROCESS…

BESIDE THESE FEATURES, POST-RELATED PRODUCTS ALSO HAVE

TYPICAL FEATURES AS FOLLOW:

2.1.2.1 THE POPULARITY

POST-RELATED SERVICES ARE INFLUENCED WITH HIGH POPULARITY TOGETHER WITH THE RAPID EVOLUTION OF TECHNOLOGY, EVERYBODY CAN ACCESS AND MAKE USE OF POST-RELATED SERVICES LETTER DELIVERY SERVICE IS A SIMPLE AND ESSENTIAL EXAMPLE, ALSO THE MOST POPULAR MANNER AMONG

THE POST-RELATED SERVICES

2.1.2.2 THE ASSEMBLY

OCCUPATIONAL LINKAGE TOWARD A COMPLETED WORK NEED TO BE PASSED THROUGH SERIES OF STAGES, CROSS-CUTTING PHASES THE INVOLVEMENT OF DIFFERENT UNITS IN PROVIDING SERVICE IS REQUIRED, IN SOME CASES NEED THE

INVOLVEMENT AT THE SAME TIME

2.1.2.3 THE DISPARITY

DIVERSIFIED DEMANDS FORCE THE POST SERVICE NETWORK

TO ENSURE THE ACCURACY AND SAFE OPERATION IN ANY CIRCUMSTANCE AND SITUATION THEREFORE, THERE SHOULD BE

A BIG ENOUGH AND MODERN OPERATION NETWORK TO ENSURE

A SMOOTH CIRCULATION IN BIG AND HARD LOAD SITUATIONS

2.1.2.4 THE STABILITY OF THE GROWTH SPEED:

DIFFERENCE FROM TELECOMMUNICATION SERVICES, POST SERVICES HAVE NO BREAKTHROUGH POST SERVICES ARE BOOSTED IN TANDEM WITH SOCIO-ECONOMIC DEVELOPMENT THE PROGRESS OF POST SECTOR IS OFTEN PARALLEL WITH THE

COUNTRY GDP GROWTH

2.1.2.5 THE MARKET BEING A HARD SATURATION:

THIS IS THE SECOND VARIANCE OF THE POSTAL SERVICE IN COMPARISON TO THE TELECOMMUNICATIONS SERVICE, WHILE AS THE LATTER HAS SATURATION POINT CALCULATED BY THE RATIO

OF SUBSCRIPTION NUMBER OVER 100 INHABITANTS, THE POSTAL SERVICE ALWAYS KEEPS ON GROWING RATE ALONG WITH GDP GROWTH BUT SCARCELY REACH THE SATURATION POINT

2.1.3 SOME POINTS ON ACTIVITIES OF VIETTEL POST FROM 2006

- TOTAL REVENUE OF VIETTEL POST FROM 2006 – 2008 KEEPS

ON INCREASING YEAR AFTER YEAR, HOWEVER GROWTH RATE

WAS UNSTABLE. 9TOTAL REVENUE OF 2007 INCREASED BY 92% COMPARED TO

2006 IN WHICH REVENUE FROM DELIVERY SERVICE INCREASED BY 63%, REVENUE FROM TELECOMMUNICATIONS SERVICE AGENCIES INCREASED BY 26 TIMES THE CAUSE OF THIS SUDDEN GROWTH IS THAT YEAR 2007 WITNESSED A BOOM IN TELECOMMUNICATIONS SERVICE MARKET, REVENUES OF TELECOMMUNICATIONS SERVICE AGENCIES TOOK A PART FROM 1.39% OF TOTAL REVENUE

OF VIETTEL POST IN 2006 CHANGED TO A RISEN NUMBER OF 19.67%

IN 2007 BESIDES, THE EXPANSION OF DELIVERY SERVICE SUPPLY FROM 23/64 PROVINCES/CITIES, 132/659 DISTRICTS/TOWNS IN 2006 INCREASED TO 63/63 PROVINCES/CITIES, 265/659 DISTRICTS/TOWNS

IN 2007, WHICH LEAD TO INCREASED IN REVENUE OF DELIVERY

SERVICE

9 Refers to Table 2.1 Business Statement of Viettel Post from 2006 to 2008

othersrs

NPS DS NPS

FIGURE 2.3 CHARTS OF SERVICE REVENUES OF VIETTEL POST

FROM 2006 - 2008

(RESOURCE: BUSINESS PLAN IN 2009 OF VIETTEL POST)

IN 2008, THE ECONOMY CAME TO A RECESSION STAGE, THE DELIVERY SERVICE (DS) STILL COULD REMAIN HIGH GROWTH COMPARED TO 2007 BUT SHOWED DECLINING SIGNALS (FROM 63%

TO 50%), THE TELECOMMUNICATIONS SERVICE STARTED ITS SATURATION SIGNS, INCOME FROM TELECOMMUNICATIONS SERVICE OF VIETTEL POST DECREASED 0.26% OVER 2007, INCOME FROM NEWSPAPERS PUBLISHING SERVICE (NPS) ONLY RISED 5% (COMPARED TO OVER 13% OF 2007) THOSE FACTORS CAUSED THE TOTAL REVENUE OF VIETTEL POST A RISE AT 37% ONLY

COMPARED TO 2007

- REVENUE STRUCTURE: DELIVERY SERVICE STILL REMAINS HIGH RATIO IN TOTAL REVENUE OF VIETTEL POST (85% IN 2006,

73% IN 2007, 80% IN 2008);