NÂNG CAO NĂNG lực CẠNH TRANH của CÔNG TY cổ PHẦN SHAHARAe

NÂNG CAO NĂNG LỰC CẠNH TRANH CỦA CÔNG TY CỔ PHẦN SHAHARA LỜI CAM ĐOAN IMPROVING THE COMPETITIVENESS OF THE SAHABAK JOINT STOCK COMPANY i TABLE OF CONTENTS DECLARATION ii ACKNOWLEDGEMENT iii TABLE OF CONTENTS iv ABBREVIATIONS vii LIST OF TABLE viii LIST OF FIGURES , CHARTS viii INTRODUCTION 1 Chapter I: THEORETICAL FRAMEWORK OF COMPETITIVENESS 1.1 CONCEPTS COMPETITIONS, COMPETITIVE ADVANTAGES, AND COMPETITIVENESS .4 1.2 SOME CRITERIA FOR EVALUATING COMPETITIVENESS OF BUSINESSES 14 1.3 THE FACTORS IMPACTS TO THE COMPETITIVENESS OF THE BUSINESS 17 1.4 TOOLS FOR SELECTING AND BUILDING THE SOLUTIONS FOR IMPROVING COMPETITIVENESS 29 Chapter II : CURRENT SITUATION OF COMPETITIVENESS OF CORPORATION SAHABAK 36 2.1 GENERAL WOODWORKING INDUSTRY STATUS OF VIETNAM .36 2.2 INTRODUCTION SAHABAK JSC 37 2.3 THE FACTORS IMPACTS TO THE COMPETITIVENESS OF THE SAHABAK 42 CHAPTER III: SOME SOLUTIONS TO IMPROVE COMPETITIVENESS OF SAHABAK 78 3.1 GOAL ORIENTATION AND DEVELOPMENT 78 3.2 SOME SOLUTIONS TO IMPROVING THE COMPETITIVENESS OF SAHABAK 79 CONCLUSIONS 86 REFERENCES 87 ii APPENDIX 89 APPENDIX 96 APPENDIX 96 APPENDIX 98 iii ABBREVIATIONS 10 11 12 13 14 CoC CPM CSF EFE EGP FSC GDP IFE JSC MDF PB SWOT TPP WTO Chain of custody Competitive profile matrix Critical Success factors Internal Factors Evaluation matrix Edge glued panel Forest Stewardship Council Gross domestic product Internal Factors Evaluation matrix Joint Stock Company Medium-density fibreboard Particle board Strengths, Weaknesses, Opportunities, and Threats matrix Trans-Pacific Strategic Economic Partnership Agreement World Trade Organization matrix iv LIST OF TABLE Table 1-1 External factors evaluation matrix .31 Table 1-2 Competitiveness profile matrix .32 Table 1-3 Internal factors evaluation matrix 33 Table 1-4 SWOT matrix 34 Table 2-5 Export turnover of wood products in recent years is .36 Table 2-6 Woodworking businesses by size of capital .36 Table 2-7 Business activities results of Sahabak 41 Table 2-8 GDP in last five year 44 Table 2-9 List of 20 exporter wood based panel led market share in 2013 .49 Table 2-10 List of 20 importer wood based panel led market share in 2013 50 Table 2-11 Competitive profile matrix CPM 53 Table 2-12 Volume production of the first months of 2014 55 Table 2-13 External factors evaluation matrix .58 Table 2-14 Volume of log material procurement 60 Table 2-15 Human resources of Sahabak 71 Table 2-16 The Internal Factors Evaluation (IFE) matrix 77 Table 3-17 SWOT Matrix (Source: Survey of Authors: 7/2014) 80 LIST OF FIGURES , CHARTS Figure 1-1 Model blocks basic competitive advantages .9 Figure 1-2 Porter’s five force model 20 Figure 1-3 Michael E.Porter ‘s Value chain model .22 Figure 2-4 Organization chart SAHABAK .39 v Figure 2-5Chart revenue growth and profitability in the 2010-2013 period 42 vi Nguyen Dinh Hiep – IeMBA - B04 INTRODUCTION Rational: In the context of international economic integration and globalization trends today, many opportunities are open for business, but also difficulties, posing big challenges before companies To improve competitiveness, companies need a clear awareness on competition, competitive advantage and competitiveness in the new context Competitiveness is the aggregate result of many factors and is influenced by many factors inside and outside the enterprise This is a long process, complicated problem and is vital for businesses in terms of international economic integration Vietnam businesses need to know developing internal resources to seize the opportunity to build and maintain their competitive advantages and continuously improving their competitiveness SAHABAK the woodworking business was established in late 2009 and put wood processing plant to begin operating in late 2010 with the mission to form and develop motivation for planting movement and economic development vungtren international sustainable forest range in Bac Kan province, SAHABAK has been an important contribution to the cause of economic development - social, Bac Kan province SAHABAK are bringing jobs and generate additional income for many households planting, for investors, while contributing to bring common prosperity to the community As new businesses are set up and participate in the supply chain of wood products market, SAHABAK are faced with many challenges in brand positioning, market development as well as improving production efficiency business Becoming Deputy General Director of SAHABAK, since May 2014, I have decided to choose the subject: " Improving the competitiveness of the SAHABAK Joint Stock Company " for my thesis with the desire contributing to the development and practical application these solutions to improve competitiveness to boost the development of the company Overview of research topics: There have been many studies master's thesis addressed the issue of the Nguyen Dinh Hiep – IeMBA - B04 competitiveness of enterprises: - Improving the competitiveness of small and medium enterprises in Bac Giang province in 2006 - 2010 (Masters thesis author Bui Quang Trung) - A number of measures to improve the competitiveness of the company Vietnam 2015 Map Pacific (Masters thesis author Le Luong Hue) - Improving the competitiveness of veterinary pharmaceuticals and supplies in the conditions of international economic integration (Master thesis of the author Mai Thi Thanh Hoa) - Upgrading Some of the competitiveness of agricultural products mainly export of Vietnam in terms of international economic integration (doctoral thesis Ngo Thi Tuyet Mai 2007) - Competitive Strategy for Small and Medium Enterprises in Vietnam's current Pham Thuy Hong, The National Political Publishing 2007 - Competitiveness of Vietnam businesses in the trend of international economic integration today of Nguyen Huu Thang - The National Political Publishing 2009 So far there have been numerous studies and assessments to improve competitiveness of enterprises and the timber industry in general, however, there is not any research work on Improving the competitiveness of the SAHABAK Joint Stock Company Therefore, the subject selected studies Objectives of research: - General theory of competitiveness - The purpose of the thesis research was to understand and analyze the competitiveness of SAHABAK and the factors affecting the competitive advantages to find solutions to enhance business competitiveness career - The question was posed to the subject: - The competitiveness of enterprises is influenced by factors outside environment and the inside look like? - The core competencies and long-term competitive advantages of SAHABAK JSC Nguyen Dinh Hiep – IeMBA - B04 is determined how? Scope of reseach Research subject - SAHABAK Joint Stock Company, The theoretical basis for competitiveness - Current status of the competitiveness of SAHABAK - Proposed solutions order to improve the competitiveness of SAHABAK Scope of the research - Spatial scope: Research within SAHABAK JSC - Time range: This study uses data collected about activities from 2009 to the end of the first quarter of 2014 and proposed solutions in 2020 - Research Content: Due to the time survey and research is limited, this topic will focus on assessing, analyzing some main contents Method and approaches - Research Approach • Quantitative Approach • Qualitative Approach - The specific method • Methods of collecting secondary data • Direct interview method and Interview method: by phone, email, fax • Methods of observation - Methods of data processing: due to our data at the statistical methods used, handled by using excel Thesis structure Thesis beyond the Introduction, Conclusion, Appendixs and the main content is divided into three chapters as follows: - Chapter 1: Theoretical basis of the competitiveness - Chapter 2: Current situation of competitiveness of SAHABAK - Chapter 3: The solutions to improve the competitiveness of SAHABAK Nguyen Dinh Hiep – IeMBA - B04 Chapter I: THEORETICAL FRAMEWORK OF COMPETITIVENESS 1.1 CONCEPTS COMPETITIONS, COMPETITIVE ADVANTAGES, AND COMPETITIVENESS 1.1.1 The concepts of competitions Competition is a term that has been discussed for a long time In economies tend to trade liberalization is increasingly common today, the competition is a means to survival and development of enterprises There are multiple ways to understand the concept of competition under different perspectives with the various scope and objectives According to K Marx, competition is a rivalry, bitter struggle between capitalists to spend shock the favorable conditions of production and consumer goods to obtain excess profits Research on commodity production and capitalist capitalist competition Marx discovered the fundamental laws of capitalist competition rules are adjusted average rate of return, and thus form should the market price system This rule is based on the price difference between production costs and the ability to sell goods below the value out of it but still profitable According to the the High Level Forum on Industrial Competitiveness Organization for Economic Co-operation and Development (OECD), competitiveness is the ability of business, industry, national and regional job creation and higher incomes in competitive conditions internationally The above definition has tried a combination of the competitive activities of business, industry and the country's territory Thus, considering the macro perspective of the concept of competition showed general objective of competitive activity is maximum satisfaction of the needs of the domestic market and internationally, create more jobs and income and higher than for the economy While economists of the classical school for that competition is a process involving the reaction behavior This process created for each market participants Nguyen Dinh Hiep – IeMBA - B04 furniture components and EGP Particle board output for only 160 m3 per month while the design capacity of 500m3 per month SAHABAK need to take advantage of expanding the domestic market as well as export markets, accelerate the rate of capacity designed to exploit the infrastructure of workshop machinery Management costs and other general expenses are allocated according to production Workshops, offices, and auxiliary machinery such as electric vacuum systems, compressed air systems, boiler systems, lighting systems are designed for maximum capacity, power consumption is quite large on the general electricity costs almost unchanged when increasing or decreasing the volume To increase its capacity to coordinate the solution of material, financial and human as the next solution 3.2.2.4 Strengthening the market knowledge assets Developing export markets, develop new products of higher added value Export markets often requires high product quality and stability, large volume orders However, the ability to pay by letter of credit to guarantee payment higher Direct exports, cut intermediaries, improve product quality as soon deploy solution need to increase sales, increase production efficiency, financial capital accumulation and production experience export SAHABAK also need to strengthen the development of new products in favor enhance the added value of existing products, such as further processing, increase surface quality The product range have higher added value without requiring little investment or investment to increase capacity, increase sales, increase production efficiency Improving the quality of human resources, training, screening, attracting, 84 Nguyen Dinh Hiep – IeMBA - B04 recruiting, fair use People are all important factors in production and business processes Expenses using the right people to be effective SAHABAK also need to regularly review and evaluation, the screening of employers, both directly and indirectly The training of human resources both internal training, external training posts to improve their management skills, labor skills SUMMARY CHAPTER III In Chapter III, the author came up with the specific goal of SAHABAK and SWOT matrix built from the results of chapter II SWOT matrix helps build sustainable solutions to enhance the competitiveness of SAHABAK Some solutions for develop SAHABAK’s strength and competitiveness: - Strengthening inbound assets - Strengthening process assets - Strengthening customer and distribute assets - Strengthening the market knowledge assets The author has come up with solutions based on his research This is the realistic solution A solution has to be applied in SAHABAK in recent times 85 Nguyen Dinh Hiep – IeMBA - B04 CONCLUSIONS Today, competition is becoming increasingly intense in all sectors Identifying the core competencies of the business, find a competitive advantage and turn this advantage into value and bring customers, bringing revenues, profits and long-term value for shareholders and communities Only the differences in activity will bring competitive position for now It is the process of creating and maintaining outstanding achievements in business, is the process of developing the competitiveness of each business, the process arduous and challenging Recognizing this issue, entitled "Improving the competitiveness of SAHABAK Joint Stock Company" is an attempt to seek solutions to help businesses quickly improve their position in the market To carry out this research, the author has come to understand the status of the business, combined with the external factors of the business environment so that proposes a number of recommendations to improve SAHABAK competitive in the future We also believe that the proposals presented in the topic could contribute somewhat to the improvement of competitiveness of SAHABAK during the integration period Consequently, we hope that the subject will be studied and applied in practice Despite many attempts, but with certain limitations of time and knowledge, the subject of this study inevitable shortcomings On spirituality, the authors hope to receive an objective assessment of teachers and colleagues for subject to be more complete 86 Nguyen Dinh Hiep – IeMBA - B04 REFERENCES Vietnamese [1] Nguyen, Thi Lien Diep ; Pham,Van Nam (2008), Strategy and Business Policy, Publisher Labor - Social, Ho Chi Minh City [2] Duong, Ngoc Dung (2009), Competitive Strategy by Michael E Porter's theory, Ho Chi Minh city General publishing house, Ho Chi Minh City [3] Fred R.David (2006), Outline of strategic management, translator Truong, Cong Minh; Tran, Tuan Thac and Tran, Thi Tuong Nhu, Statistics publisher, Hanoi [4] Le, The Gioi; Nguyen, Thanh Liem, and Tran, Huu Hai (2009), Strategic management Textbooks, Statistics publisher, Ho Chi Minh City [5] Dang, Duc Thanh (2010), Improving the competitiveness of businesses in integration era, Youth Publisher, Ho Chi Minh City [6] Ton, That Nguyen Thiem (2004), Market, Strategy, Structure, Ho Chi Minh city General publishing house, Ho Chi Minh City [7] Michael E.Porter (1998), Competitive Strategy, translator Nguyen, Ngoc Toan, Youth Publisher, Ho Chi Minh City [8] Michael E.Porter (1998), Competitive Advantage, translator Nguyen, Phuc Hoang, Youth Publisher, Ho Chi Minh City [9] Michael E.Porter (1998), The Competitive Advantage of Nations, translator Nguyen, Ngoc Toan and colleagues, Youth Publisher, Ho Chi Minh City English [10] David Campbell, George Stonehouse and Bill Houston (2002), Business Strategy, Butterworth-Heinemann [11] Michael E Porter (1998), Competitive Strategy, The Free Press [12] Michael E.Porter (1985), Competitive advantage, Free press, New York 87 Nguyen Dinh Hiep – IeMBA - B04 From website: [13] www.agro.gov.vn [14] www.agroviet.gov.vn [15] http://www.businessdictionary.com/definition/competitiveness.html [16] http://www.chebien.gov.vn/ [17] www.fao.org [18] www.gso.gov.vn [19] http://info.fsc.org/ [20] Socio – Economic Information, Access date 20/8/2014, from website : http://chinhphu.vn/portal/page/portal/English/Socio-economicInfor [21] Socio-Economic and Natural of Bac Kan, Access date 20/8/2014, website http://backan.gov.vn/Pages/tim-hieu-bac-kan-129/dieu-kien-tu-nhien139/C490iE1BB81u20kiE1-1206ca3a0ad684b.aspx [22] http://sahabak.com SAHABAK home page [23] http://cns.com.vn CNS homepage [24] http://www.hancorp.com.vn/ HACC homepage [25] MDF VRG Quang tri, Annual report 2013, Access date 20/8/2014 from website : http://www.mdfquangtri.vn/Article.aspx?TabID=112 [26] http://www.vrgdongwha.com/ VRG Dongwha homepage 88 Nguyen Dinh Hiep – IeMBA - B04 APPENDIX LIST REFERENCE QUESTION OF EXPERT OPINION Dear Valued Mr / Ms We are participants of the training program MBA in international business links between the University of Paris Administration (France) and the University of Thai Nguyen (Vietnam) We are to gather information to understand the importance of these factors to the competitiveness of the wood processing enterprises, furnitre component, edge-glued panel and particle board material for industry furniture Your comments are a valuable help to help us fulfill my thesis, as well as research facilities for businesses in reference to finishing production business Would you spend some of your valuable time to answer the questions below Here are three questions to the list of information that we are looking forward to receiving your reply Each list include 10 questions, each question asks you to choose one potentially implies significant level of is least important and is most important level We are committed to the information you provide is only used for research purposes, to ensure not used for any other purpose Would you please indicate the level of importance of external factors to 89 Nguyen Dinh Hiep – IeMBA - B04 the competitiveness of the Woodworking businesses No 10 External factors Economic growth in the country Political stability The influence of woodworking industry growth The integration of the economy Exchange rate USD / VNĐ Credit policy and interest rates Influence of weather The influence of geographic location The competitiveness of companies in the same industry Requirements of buyers Rating ( ->5 ) ( least -> most important level ) 5 1 1 2 2 3 3 4 4 5 5 5 Would you please indicate the level of importance of internal factors to the competitiveness of the Woodworking businesses No 10 Rating ( ->5 ) External factors Product quality The size and production capacity Equipment and technology Organizational Structure Labor productivity and motivation Qualifications and skills of workers The stability of materials Reputation and brand reputation Marketing Activities competitiveness The ability to develop products ( least -> most important level ) 5 5 5 5 5 Would you please indicate the Critical Success Factors affecting the success of woodworking businesses No Rating ( ->5 ) Critical success factors ( least -> most important level ) Price competitiveness 90 Nguyen Dinh Hiep – IeMBA - B04 10 Product quality Low cost structure Lean production system Production capacity Customer loyalty Financial position 1 1 1 1 Management qualification and experience Efficient supply chain Location of facilities 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 Other comments: Sincerely thank you Mr / Ms Respectfully Wish you health and success in their work Best regards! 91 Nguyen Dinh Hiep – IeMBA - B04 RESULTS OF COLLECT AND DATA PROCESSING - Time from June to August 2014 - Respondents: the management of the company SAHABAK, a number of specialist companies providing materials and some experts are SAHABAK customers - Interview method: by phone, email, fax - The number of votes coming for professionals 50 votes - The total number of valid responses was 44 votes - We picked up 40 votes to conduct analysis - Methods of data processing: due to our data at the statistical methods used, handled by using excel - Scale is applied grade Likert scale (from level is less influential, the most influential level 5) - For a selected number of points = number of important (eg points corresponding to the selected 5) - Point of elements = sum of each score level multiplied by the number of people that choose the - The weight of each factor by dividing the sum of the elements divided by the total score of the elements 92 Nguyen Dinh Hiep – IeMBA - B04 REFERENCES RESULTS OF EXPERT OPINION Table 4.1 The external factors affecting the competitiveness of woodworking businesses No External facotrs Economic growth in the country Political stability The influence of woodworking industry growth The integration of the economy Exchange rate USD / VNĐ Credit policy and interest rates Influence of weather The influence of geographic location The competitiveness of companies in the same industry 10 Requirements of buyers Number people rating ( ->5 ) 14 15 10 14 12 Score Weight 161 153 0.112 0.106 11 15 11 153 0.106 0 2 9 17 13 12 22 19 14 11 12 5 157 132 147 133 125 0.109 0.092 0.102 0.092 0.087 1 18 19 138 0.096 12 13 140 1439 0.097 1.000 Total 93 Nguyen Dinh Hiep – IeMBA - B04 Table 4.2 The internal factors affecting the competitiveness of woodworking businesses No Internal factors 10 Product Quality The size and production capacity Equipment and technology Organizational Structure Labor productivity and motivation Qualifications and skills of workers The stability of materials Reputation and brand reputation Marketing Activities competitiveness The ability to develop products Total Number poelple rating 1 1 0 1 94 2 7 11 15 12 12 14 11 12 16 16 14 12 17 14 11 13 22 13 13 13 11 11 9 16 12 Score Weight 160 151 151 143 147 143 161 135 147 134 1472 0.109 0.103 0.103 0.097 0.100 0.097 0.109 0.092 0.100 0.091 1.000 Nguyen Dinh Hiep – IeMBA - B04 Table 4.3 Critical Success Factors affecting the success of woodworking businesses No Number poelple rating Critical Success Factors Price competitiveness Product quality Low cost structure Lean production system Production capacity Customer loyalty Financial position Management qualification and experience Efficient supply chain 10 Location of facilities Score Weight 157 152 147 145 146 135 151 0.111 0.108 0.104 0.103 0.103 0.096 0.107 143 0.101 1 137 100 1413 0.097 0.071 1.000 1 1 1 2 10 14 14 13 17 14 14 19 12 13 12 12 10 12 15 14 1 11 18 17 19 11 Total 95 Nguyen Dinh Hiep – IeMBA - B04 APPENDIX Table -4 : Financial Statements (brief) (Millions of VND) 32/12/2010 32/12/2011 ASSETS Assets Cash and marketable securities Acounts Recievable Inventories Other assets Fix Assets and long term bond Fix assets Uncompleted capital expenditures Other fix assets Total assets LIABLITIES AND EQUITY Total Liabilities Current liabilities Long-term debt Other debt Equity Equity other funds Total Liablities and equity 32/12/2012 32/12/2013 17,310 1,991 10,302 2,709 2,309 25,125 908 21,467 2,749 42,435 29,640 2,304 8,170 16,672 2,495 43,042 29,206 10,524 3,313 72,682 41,071 162 3,390 35,483 2,036 57,998 34,180 20,780 3,038 99,068 90,675 579 4,274 83,789 2,034 69,572 60,084 6,160 3,328 160,247 9,704 1,124 8,580 32,730 32,785 (55) 42,435 19,480 7,520 11,960 53,202 53,202 72,682 31,525 21,085 10,440 67,543 67,543 99,068 49,219 39,006 10,213 111,028 111,028 160,247 (Source : Edited from Audited Financial Statement of Finance Dept Sahabak) APPENDIX Table 4-5 : Income Statement (Millions of VND) No Items Sales Sales Deductions Net sales Cost of goods sold 32/12/2010 32/12/2011 6,804 6,804 6,887 96 32/12/2012 32/12/2013 27,797 46,469 150 27,797 46,219 20,277 36,250 Nguyen Dinh Hiep – IeMBA - B04 10 11 12 13 14 15 16 17 Gross profit Earrning from financing Interest expences Selling expenses Overheads Net profits Other income Other costs Other profits earning before tax Corpotate income tax Net income Earnings per share (VND) 190 302 (111) (3) (3) (114) (114) - (83) 137 698 335 4,173 (5,173) 219 38 181 (4,992) 7,519 15 1,947 809 4,256 520 189 388 (199) 321 9,969 24 3,224 1,426 3,648 1,693 218 692 (473) 1,220 (4,992) 321 50 1,220 131 (Source : Edited from Audited Financial Statement of Finance Dept Sahabak) 97 Nguyen Dinh Hiep – IeMBA - B04 APPENDIX Table 4-6 : Ratio Analysis (Millions of VND) Ratio Liquidity The current ratio Assets management Inventory turnover Days sales of outstanding DSO Fixed assets turnover Total assets turnover Debt Management Total debt to total assets Times-interest earned (TIE) Profitability Profit margin on sales Basic earning power (BEP) Return on total assets (ROA) Return on total equity (ROE) 2010 (Current assets/ Current liabilities) 2011 2012 2013 13.35 3.61 1.85 2.27 - 0.41 0.78 0.55 438 45 34 - 0.2 0.09 0.8 0.28 0.8 0.29 0.229 0.268 (7.152 ) 0.318 0.307 0.165 0.378 Sales/Inventory Receivables/ (Annual sales / 365) Sales/Net fixed assets Sales/Totals Total debt/total assets EBIT /Interest charge Net income/sale EBIT/Total asset Net Income /Total assets Net income/Common Equity - - (0.760 ) 0.019 0.037 0.27% -6.87% 0.32% 0.76% 0.27% -6.87% 0.32% 0.76% 0.35% -9.38% 0.48% 1.10% Market value Price per share Price/Earning 200 76 /EPS (Source : Edited from Audited Financial Statement of Finance Dept Sahabak) 98 ... Four factors create competitive advantages is: quality, cost, speed, flexibility Quality is demonstrated through the specification, reliability, form, reputation, brand Cost is the final price... competitive products in design, style, quality, price, sales methods, approaches, product best suited to the customer's requirements, the product will ensuring salability, extending the life cycle... welded proposed to the customer being served Flexibility is the ability to meet the different needs of customers both on the level of volume, types, changes These are the core competencies to create