phân tích vai trò của value chain (chuỗi giá trị) trong việc đánh giá năng lực tạo lợi thế cạnh tranh competitive advantage

1 Analyze the role of Value Chain in evaluating the qualification for Competitive Advantage of the enterprise Analyze the value and role of Stakeholders in your selected enterprise Answers Sentence 1: Definition value chain: Value chain is the summary of the related operation chain of the enterprise increasing the value for the enterprise The efficient performance of the activities in the value chain will decide the efficiency of the general operation and creates the competitive advantage of the enterprise These operation chains can take place according to the consecutive order or the parallel order The value chain is proposed by Michael Porter The value chain includes 02 components: Primary activities and supporting activitis Page of 15 Figure - Michael Porter Value Chain Main activity: Covering practical activities occurring according to the consecutive order This group of activity is directly related to the creation of the value for the products The activities of this group include: - Inbound Logistics: receiving goods, transportation, and storage of input raw materials The input activities attach the receipt, storage and management of input factors like the management of materials, storage, control of inventories, transport plan, goods returning to the supplier The completions in any activity in these activities result to the reduction of the cost and increase of the capacity Page of 15 In any enterprise, the input activities are abundant and play a very important role For instance, to the university, it is the performance of enrolling work to meet the requirement of the training; as for the factory, it is the receipt, supply of materials, raw materials for the production process - Operation: Including all activities to transfer the input factors into the final products Here, it comprises the activities like the operation of machine, equipment, package, installation, maintenance of equipment and check The improvements of these activities are always having the products of the higher quality, the higher efficiency, and faster reaction with the market conditions - Outbound Logistics: Transporting the products, storing them in the storages These activities are the output ones, including the storage, management of goods, operating of distribution activities and treating the orders (admin) The improvements of these activities are always having the higher efficiency and better service level to the company customer - Marketing and Sale: The activities related to the supply of the means so that the customers purchase the products, or accelerating them to purchase the products like the advertisement, promotion, quotation, sales, selecting of the distribution channel, the relationship among the distribution channel and pricing Page of 15 - Promoting, maintenance service after sale: The activities related to the supply of the service to increase or maintain better the value of the products as an example Depending on each branch of the enterprise, the said activities are of the decisive significance with the competitive advantage As for the company, the activity in the distribution field, the inbound and outbound logistics are the most important phase As for the consuming goods producing company, the operation, marketing and sales are the most important activity in creating the competitive advantage If it is the equipment manufacturer, they need to take care of the operation, promotion, maintenance after sale because this is the most essential activity for the competitive advantage of this enterprise Supporting activity: Including the activities parallel to the main activities for the purpose of the support to create the products This is the indirect activities contributing to creating the value for the products The activities in this group includes: - Procurement: Purchasing input raw materials, machines, accessories If the efficient operation will save the input cost, time, minimizing the storage cost, ensuring the quality of input materials, raw materials to be stable Thus, it will contribute to reducing the production price and increasing the competitive advantage for the enterprise - Technology development: Improving the products, technology procedure, creating the new products meeting the demand of Page of 15 the market etc, developing the technology not only applying for the activities in direct contact with the final products but also appearing in many other forms: from the basic study, product design to the construction study, technology procedure, media technology, supervision management etc The technology development is related to the products and features of the products will support the whole value chain Thus, the technology growth is very important to the competitive advantage in every branch, for instance, in the automobile production telecommunication, branch, petroleum information technology, exploitation, petroleum processing etc - Human resource management: Recruiting, training, developing and treatment The human resource activities as well as the other supports appear in many different aspects of the enterprise and the dispersion of these activities can result to the conflicts in the policy of the enterprise The human resource management affects the competitive advantage in every enterprise; by its role in deciding the skills, working motivation of the labor, keeping and using the talented and training and recruitment costs - Firm infrastructure: Including many activities like management, finance, accounting and law, information technology etc Unlike other supporting activities, the infrastructure supports the whole value chain not for any private activity Page of 15 The infrastructure is sometimes regarded as the investment of many costs but this is the strong source for the competitive advantage for the firm For instance, in the database, the information technology system together with the specialized management software will help the enterprise to get the efficient management, saving the treating time for the jobs and work, regular contact with the partners and concurrently the place for advertisement, enterprise advertisement efficiently by website In short, to create a competitive advantage in the development process, for every enterprice, especially in the current Vietnamese enterprises need to know to build your own value chain in their business, which can identify important activities creating competitive advantage to focus resources and avoid spreading all resources to all their activities Sentence 2: Definition of stakeholder In the business management, Stakeholder is the term with regards to the factors, individuals with the close relationship with the enterprise They take care, share the workforce, bearing the impact or directly impacts on the enterprise in the strategies, plans, business activities and can decide the existence and development of the enterprise Page of 15 The closely related parties in the enterprise can be divided into the following groups:  In the internal enterprise: Laborer, executive board, management council, management unit etc  The direct related parties (partners): Shareholders, customers, suppliers, sponsors, debt owner etc  External organizations, Government, individuals associations, outside communities, the enterprise: important social organizations etc Figure - The internal and external relevant parties of an organization/ enterprise Nowadays, on the summary basis, evaluation and inspection to the activities and sustainable growth of the enterprise, stakeholder plays a very important role because this is the objective with the highest Page of 15 power That is the right of the evaluation, remarks and decision of the attitude to the enterprise Then, it affects the decision to the operation as well as the growth of the enterprise The value and role of the Stakeholders in the Vietnam Petroleum Corporation– PV Gas 2.1 Overview of PV Gas PetroVietnam Gas Corporation– PV Gas is a state-owned company and also the member of Vietnam Petroleum Group, established in 1990 Conformance with the nature, development scale of the Gas business production activity, the organization structure of PV Gas is equivalently changed From a Gas company with about first 100 staffs, PV Gas has ever grown and become Gas processing, Gas product trading company in 1995, converted into limited company with one owner on November 2006, grew into PetroVietnam Gas Corporation since July 2007, and become PetroVietnam Gas Corporation – joint stock company in May 2011 with over 2,000 employees and the charter capital of 18,950 billion Vietnam Dong – The current biggest charter capital among the joint stock companies sealed at Vietnam stock security market After 23 years of developing and growth, PV Gas has currently become a strong corporation and plays a very important role and decision in the Vietnam petroleum industry with the business production capacity as follows: - Supplying billion m3 of gas/ year as materials raw materials for the power plants, fertilizer plants to produce 40% national gross Page of 15 electricity, 30% fertilizer gross product (fertilizer) of the whole country; - Producing 01 million tons of LPG/year for the Vietnamese market meeting 70% demand of the whole LPG; - Producing 70,000 tons of Condensate/year for petroleum production The following is the business production results of PV Gas in 03 recent years: Description Unit Total turnover In Pre-tax profit 2010 2011 2012 48,076 65,036 66,250 billion 6,068 7,685 11,068 VND 5,368 6,420 9,075 Post- tax profit Table – PV Gas Performance in 2010-20121 With the reached results, PV Gas deserves to become the only crude oil supplier in Vietnam, the LPG business and manufacturer No in Vietnam; completing excellently the duty assigned by State: Contributing to the ensuring the national energy security, security of the national food; ensuring the stable supply source for LPG market and contributing to the price stabilization of domestic LPG; and taking Sources: PV Gas annual report 2010 – 2012 Page of 15 honor to be granted with many medals, competitive flags, merits etc of State, branch, local Government and of Vietnam Petroleum Group In order to accelerate the value of gas use, using efficiently the natural source of the country and ensure the sustainable growth of PV Gas, PV Gas has been developing the production system, distribution of the gas products in the whole country by the investment pattern of the mother company or investment by the subsidiaries as indicated below: Low pressure Gas distribution system for the industrial parks under Ba Ria-Vung Tau province, Đồng Nai, HCM city managed by PV Gas D with the capacity of nearly million m3 gas/ year In addition, PV Gas D is continuing to make investment to develop and expand the low pressure gas distribution system to the Western provinces and Northern provinces CNG distribution system for the urban areas, industrial customers and transport means at Eastern areas managed by the subsidiaries with the capacity of nearly 130 million m3/year CNG is distributed to the industrial customers with the gas use demand as a fuel for the production process but located far from the low pressure distribution system In addition, CNG of PV Gas is used for the bus, taxi, automobiles of Ho Chi Minh city, ,Đồng Nai, Bà Rịa- Vũng Tàu to contributing to minimizing the environmental pollution In 2012, 2013, Saigon South will be the first urban area in the whole country with the urban gas system constructed, installed by Gas City and supplying CNG LPG distribution system for the LPG trading customers, the industrial customers, trade, family household, urban area and transport means Page 10 of 15 PV Gas and the subsidiaries manage and operate with the capacity of million of tons/ year from domestic LPG and imported from Middle East In order to meet this LPG business, the subsidiaries of PV Gas has invested LPG storage system on the whole country as Maple connection store-1 45.000 tons, Thị Vải store of 6,600 tons, Go Dau storages of 8,200 tons, Dong Nai store of 1,000 tons, Can Tho store of 1.200 tons, warehouse Dung Quất of 3.500 tons, Ha Tinh store of 1,800 tons, 03 Hai Phong stores of 5,600 tons, Danang store of 1,500 tons ( expected to complete in 2013) and especially the frozen store in Thi Vai (expected to complete in 2012) with the biggest and most modern storage of 60,000 tons in Vietnam meeting allowable conditions for PV Gas with the solutions to store LPG with the big, long term quantities Pipe encasing and steel pipe production system: This is the products and new services manufactured by 02 joint stock companiesVietnam Petroleum manufacturing joint stock company and Gas Construction and Investment joint stock company supplied with the supply of the first capacity of 100,000 tons of pipes/ year to produce and supply specialized pipes for the projects in the gas industry 2.2 The value and role of Stakeholders to PV Gas 2.2.1 Stakeholder insider the enterprise: a Management board: In the employment community in PV Gas, one department includes the managers, executive of the enterprise These persons play a very Page 11 of 15 important role because this is the representative for the company owner (here Vietnam Petroleum Group) to manage; execute every operation of the enterprise This is the persons to make guideline of the lower level to carry out the developing strategies in the future of PV Gas b Employees: In the relations of PV Gas, the employments are to carry out, comply with the regulations, policies of the management board The employment works for the company and receives the wage They take care of only the income, the policies of bonus, penalty, working environment, and training The employment in the enterprise still has a protective organization as the trade Union This organization has the special ties to the employment on behalf of the employment for the employment’s speech, right c Owner PV Gas is the joint stock company in which State occupies 96,72% stocks Thus, it is possible to say that State is the owner to PV Gas By Vietnam Petroleum Group, State has the impact on the distribution and development of PV Gas 2.2.2 Stakeholder outside the enterprise: a Customers: The business feature is the gas and products from the gas Thus, the big customers of PV Gas are mainly the power companies of Bà Rịa, Page 12 of 15 Phú Mỹ 1, Phú Mỹ 2.1, Phú Mỹ 2.2, Phú Mỹ 3, Phú Mỹ 4, Nhơn Trạch 1, Nhơn Trạch 2, Hiệp Phước, Cà Mau 1, Cà Mau 2, Gas and Oil Chemicals and Fertilizer Corporation and low pressure gas consuming households like the steel manufacturer, ceramics etc In addition, as for the LPG business, the customers of PV Gas are mainly the big distribution agents at the regions in the whole country It is possible to say that the customers plays a very important role to PV Gas This is the turnover of the high stability helping PV Gas to get the condition to set up the strategy, investment development for the next stages b Supplier : For the consecutive gas operation system, PV Gas has various suppliers from the input raw material source for the gas products, the products from the gas to the goods, services for the daily business production PV Gas, comprising: - Oilfield owners of lot 06.1, Bock 11.2 under Nam Con Sơn Basin, Block PM3 Ca Mau, Vietsopetro petroleum joint venture at Cửu Long Basin, - Manufacturers of plants, machines, equipment, spare parts, petroleum, oil fuel - Suppliers of construction, registration, calibration Due to the production, supply of gas products under continuous, stable status, the affection of the suppliers to PV Gas are very important, especially the gas oilfield owners Any change or incident related to the gas supply for PV Gas impacts on the operation of the gas system Page 13 of 15 As the partner of PV Gas, the suppliers have to ensure the following requirements: On time, stability, ensuring the product quality, complying with the standards of PV Gas, committing to comply with the legal regulations c Government (State run management body): Government, especially the representative of the state management body has the important affection to PV Gas by the policies of tax, policies of gas price, development planning of gas branch etc In addition, the management bodies of the security, safety to the gas petroleum, the management bodies of the labor, construction, and investment have the affection to the business production activities of PV Gas d Related social organizations: So far we are often interested in government policies, the impact of those policies on a passive business without the pressure against the government without back - reversing pressure to the government The organizations like the associations, quality organizations, consumer’s protection, trade mark etc are the ones to protect every objective in society impacted by the right PV Gas always has the adjustment in every relationship combined with the associations, the organizations to recommend with the government in the policies of the tax, gas price etc, especially the branch association as the protecting body for the enterprise in the domestic and international market, enterprises upon joining the organizations will get the condition for the promotions, support from the government, other enterprises in the production and business process Page 14 of 15 e Bank, credit organizations: Any enterprise working in the market needs to have the relationship with the credit organizations These organizations can be the sponsors, the investors or the enterprise owners The credit organizations always exist parallel to the enterprise as like the funds, banks, the credit organizations, other credit organizations In this relationship, the debt owners take care to the interest rate of the loan (the interest rate of the investment), payment ability of the enterprise, the ability of payback, accuracy in the finance etc The more the firm develops, the bigger the capital demands is In addition to the share issuance, government bond, the loaning or the direct investment mobilization is the suitable selection f Shareholders: In the firm, the shareholders are the owners of the firm shares In the other words, they are the enterprise owners The shareholders take care of the business production efficiency of the enterprise, the policies of the profit division, the strategies, long term and short term system The shareholders take care of the images and trade mark of the enterprise and other relationships of the enterprises, especially./ Page 15 of 15 ... the whole value chain not for any private activity Page of 15 The infrastructure is sometimes regarded as the investment of many costs but this is the strong source for the competitive advantage. .. products and features of the products will support the whole value chain Thus, the technology growth is very important to the competitive advantage in every branch, for instance, in the automobile... short, to create a competitive advantage in the development process, for every enterprice, especially in the current Vietnamese enterprises need to know to build your own value chain in their business,