NĂNG lực CẠNH TRANH – NGHIÊN cứu TÌNH HUỐNG CÔNG TY cổ PHẦN đầu tư và xây DỰNG số 18 (LICOGI 18) e

NĂNG LỰC CẠNH TRANH – NGHIÊN CỨU TÌNH HUỐNG CƠNG TY CỔ PHẦN ĐẦU TƯ VÀ XÂY DỰNG SỐ 18 (LICOGI 18) THESIS COMPETITIVE CAPPABILITIES - CASE STUDY OF CONSTRUTION AND INVESTMENT JOINT STOCK COMPANY NO.18 (LICOGI 18) ( Au g u s t ) ACKNOWLEDGEMENT The thesis “Competitive Capabilities - Case Study of Constructon and Investment Joint Stock Company No.18 (LICOGI 18) ” is my own research The data and the thesis result is of my own work with collecting, using learned knowledge and exchanging ideas with my instructor to finish ii TABLE OF CONTENTS ACKNOWEDGEMENT………………………………………………………….ii LIST OF FIGURES …………………………………………………… … ……iii LIST OF TABLES ……………………………………………………………….iv LIST OF CHARTS ………………………………………………………………v INTRODUCTION ……………………………………………………………… CHAPTER 1: THEORICAL BASIC OF FIRM COMPETITIVE CAPABILITIES …………………………………………………………… 1.1 The concepts of competition, competitive capabilities and advantages 1.1.1 Competition .7 1.1.2 Competitiveness 1.1.3 Competitive Advantage .8 1.2 The importance of quanlity in creating competitive capabilities and advantage 1.3 How to identify the components of sustainable competitive advantage 1.3.1 Resources 11 1.3.2 Capabilities 13 1.3.3 Core competencies 14 1.3.4 Superior competencies .14 1.3.5 Sustainable Competitive Advantage 15 1.4 Functional domains - the keys to sustainable competitive advantages 19 1.4.1 Operation production .19 1.4.2 Marketing 20 1.4.3 Materials management .23 1.4.4 Research and Development (R&D) 23 1.4.5 Finance 24 1.4.6 Human resources .25 iii 1.4.7 Customer relations, customer services .26 1.4.8 Branding and corporate culture 28 1.4.8.1 Branding 28 1.4.8.2 Corporate cultural development .28 1.5 International experiences in enhancing competitive capabilities and advantages 29 Summary of chapter 34 CHAPTER 2: THE CURRENT SITUATION OF COMPETITIVE CAPABILITIES AT CONSTRUCTION AND INVESTMENT JOINT STOCK COMPANY NO.18 (LICOGI 18)… 35 2.1 About Construction and Investment Joint Stock Company No.18 35 2.1.1 History and Development 35 2.1.2 Organizational structure and Business activities 36 2.1.2.1 Organizational structure 36 2.1.2.2 Business activities 38 2.1.3 Business results in the period of 2011-2013 38 2.2 The current situation of competitive capabilities at Construction and Investment Joint Stock Company No.18 41 2.2.1 The awareness of the Company’s leaders about competitive capacity and the importance of competitive capacity 41 2.2.2 Competitive situation of LICOGI 18 .44 2.2.2.1 Impact of external factors on competitive capacity: 44 2.2.2.2 Functional areas - Bases for competitive capacity creation of LICOGI 18 JSC CO., 47 2.3 Identification of the competitive advantages of LICOGI 18 through comparisons with competitors in the same industry 75 2.3.1 Market share 75 2.3.2 Synthesis of competitiveness assessment 77 2.4 Some drawbacks and causes 78 Summary of chapter 80 iv CHAPTER 3: THE SOLUTIONS TO ENHANCE COMPETITIVE EFFICIENCIES OF CONSTRUCTION AND INVESTMENT JOINT STOCK COMPANY NO.18 (LICOGI 18) 81 3.1 Development orientation of LICOGI 18 Joint Stock Company to 2015, vision to 2020 81 3.1.1 Gerneral orientations .81 3.1.2 Specific objectives 82 3.2 Some solutions to enhance competitive capabilities of the company .83 3.2.1 Increase charter capital, balance capital structure and optimally use capital efficiency 83 3.2.2 Continue investment activities, equip the most advanced equipment 85 3.2.3 Apply advanced management methods in construction to reduce product price 87 3.2.4 Improve administrative capacity 91 3.2.5 Provide trainings, foster and develop human resources 93 3.2.6 Complete and develop LICOGI 18’s brand and culture 94 Summary of Chapter ………………………………………………… 95 CONCLUSIONS…………………………………………………………… 96 REFERENCES APPENDICES v LIST OF ACRONYMS LICOGI 18 VINACONEX PHUC HUNG : Construction and Investment Joint Stock Company No.18 : Construction Joint-Stock Company No.1 : PhucHung Holdings Construction joint stock company /CONSTREXIM PHUC HUNG SONG DA 12 : Song Da No.12 joint stock company vi LIST OF FIGURES Figure 1.1 How to identify sustainable competitive advantage 10 Figure 1.2 Origin of sustainable competitive advantage .11 Figure 1.3 The curve of long-term unit cost .19 Figure 1.4 Experience curve .20 Figure 1.5 The relationship between the average cost per unit of product and the percent of customers leave 22 Figure 1.6 Human resources management content .25 Figure 2.1 Chart of organizational managemeny of LICOGI 18 37 Figure 2.2 The Process of economic and technical management of LICOGI 18 .48 Figure 2.3 Summary and comparison of assets and capital structure, 2012 - 2013 65 vii LIST OF TABLE Table 1.1 Tangible resources .12 Table 1.2 Intangible resources 13 Table 1.3 Standards to define sustainable competitive advantages 16 Table 1.4 The outcome of integration of sustainable standards 18 Table 1.5 Corporate cultural structure .29 Table 2.1 Consolidated Business Results 2011-2013 38 Table 2.2 Business results of the parent company 2011-2013 39 Table 2.3 The detailed cost analysis of products sold in 2012, 2013 56 Table 2.4 Summary of competing tool comparison among companies .61 Table 2.5 Indicators of assets – capital sources of the Parent company in 2011-2013 65 Table 2.6 Revenue, Price, Net profit in 2012, 2013 67 Table 2.7 Summary table of labor structure 70 Table 2.8 Financial indicators against competitors 75 Table 2.9 Value of business operation and market share of construction field in 2011, 2012, and 2013 76 Table 2.10 Evaluation of competitive capacity among companies 77 Table 3.1 Of plan of investment and purchasing facilities for civil works 86 viii LIST OF CHART Chart 2.1 Total assets of the parent Company 2011-2013 40 Chart 2.2 Consolidated revenue and revenue of the parent Company 2011-2013 40 Chart 2.3 Consolidated profit and profit of the parent Company 2011-2013 41 ix INTRODUCTION Rationale Although the world economy has fallen into crisis in the past few years and Vietnam is no exception, Vietnam is still a country with impressive economic growth, accompanied with increasingly rapid urbanization speed As forecasted by Vietnam’s Ministry of Construction, the housing market demand in the period of 2015-2020 is newly construction of 425 million square meters of floor area, with about million newly built apartments/ houses; and investment in construction of 12.5 million square meters of social housing in urban areas The annual growth of the construction industry is 8%-9%, illustrating that the demand of the construction market in Vietnam is still very huge The construction industry is indispensable to the socio-economic development of every country In Vietnam, it is significantly important because of the country’s ongoing industrialization and modernization Therefore, the development of construction enterprises in order to meet the industrialization and modernization is an urgent task LICOGI 18 Joint Stock Company (JSC.) is a privatized state enterprise By promoting its advantages and achievements gained during 50 years of growth and development, and quickly adapting to the mechanisms, the Company has gradually established and improved its competitiveness in the marketplace As the competition in the construction industry these days is increasingly fiercer, LICOGI 18 JSC is likely to encounter a large number of strong competitors, and what it has achieved is always threatened in the future, hence enhancing the Company’s competitiveness is a must For the ability to preserve and promote the achieved successes, it is essential for LICOGI 18 JSC to take measures to retain and increase its market shares and dominate the market Proceeded from the reality and the competition status of LICOGI 18 JSC., the thesis named “Competitive Capabilities - Case Study of Constructon and Investment Joint Stock Company No.18 (LICOGI 18)" is selected by the author as one of measures for the goals above 13- Chinhphu.vn (2014), Social economic report 2013, http://chinhphu.vn/portal/page/portal/chinhphu/noidungtinhhinhthuchien? categoryId=100002927&articleId=10053063, accessed on 23/07/2014 14- Prime Minister (09/6/2014), Decision 880/QD-TTg, General planning on developing Vietnamese industry to 2020, with vision to 2030 15- Ministry of Construction (2014), Report on mission in 2013 and Work plan in 2014, Hanoi 16- Annual Report in 2011, 2012, 2013 of LICOGI 18 Joinstock Company 17- Annual Report in 2011, 2012, 2013 of Construction Joinstock Company No VINACONEX 18- Annual Report in 2011, 2012, 2013 of Phuc Hung Constrexim Joinstock Company 19- Annual Report in 2011, 2012, 2013 of Song Da 12 Joinstock Company 20- Website of Ministry of Construction (2014), http://www.xaydung.gov.vn 21- http://www.licogi.com.vn 22- http://www.licogi18.com.vn 23- http://www.vinaconex.com.vn 24- http://www.vinaconex1.com.vn 25- http://www.phuchung.com.vn 26- http://www.sd12.vn 99 APPENDIX QUESTIONNAIRE SURVEY ON THE AWARRENESS OF LICOGI 18 MANAGERS ABOUT COMPETITIVENESS Dear Sir/Madam, This questionaire is part of the research conducted by the researcher in order to learn about the awareness of the company managers about competitiveness and its importance The researcher hopes that you could spend a little time participating in this research and answer the anomymous questionaire below Your assistance in responding to the following questions is highly appreciated For futher information please contact: Đặng Văn Long Email: danglong185@gmail.com ĐT: 0913 209 285 General information Current workplace: ………………………………………………………………… Department: ………………………………………………………………………… Year(s) of experience in current department:…………………………………year(s) Year(s) of experience in construction industry:……………………………… year(s) Current working major:………………………………………… …………… Position (if any): Company manager □ Department manager □ Gender: Male □ Female □ Age: 20-30 □ 30-40 □ 40-50 □ > 50 □ For each question, please choose one option complying with your assessment Question 100 Have you heard about competitiveness, core competence, distinctive competence, competitive advantage, sustainable competitive advantage, the importance of competitiveness and sustainable competitive advantage? Yes No Competitiveness Core competence Distinctive competence Competitive advantage Sustainable competitive advantage The importance of competitiveness, sustainable competitive advantage Interview Question 1: What you know about competitiveness? ……………………………………………………………………………………… ……………………………………………………………………………………… Question 2: What you know about core competence? ……………………………………………………………………………………… ……………………………………………………………………………………… Question 3: What you know about distinctive competence? ……………………………………………………………………………………… ……………………………………………………………………………………… Question 4: What you know about competitive advantage? ……………………………………………………………………………………… ……………………………………………………………………………………… Question 5: What you know about sustainable competitive advantage? ……………………………………………………………………………………… ……………………………………………………………………………………… Question 6: What is your view towards competitiveness and sustainable competitive competence? 101 ……………………………………………………………………………………… ……………………………………………………………………………………… Question 7: How have you applied your knowledge about competitiveness in your work? ……………………………………………………………………………………… ……………………………………………………………………………………… Thanks for your contribution! 102 APPENDIX QUESTIONNAIRE COMPANY INFORMATION Part I General information Company name:…………… …………………………………………………… Address: (commune, district, province (city))…………………………………… Phone number…………… Fax……………5 Email address ……… … Company establishment date (DD/MM/YYYY):………………… (or date of converting into joint stock company)………………………………………………… Number of shareholders…………… Number of shares……………………… Share price at time of survey……………………………………………………… Part II Survey content 10 Production outcome TT Nội dung Production value Total property value Unpaid debt Owner capital Turnover Profit before tax Average income 10 Dividend Capital gain per share (dong) Profit/Turnover rate 11 Profit/Capital rate 2011 2012 11 Number of company current labours ……………… Among them: 103 2013 Average 12 Men …… 13 Women…………… 14 Direct labours……… 15 Indirect labours……… 16 Qualification: - University (or higher)………… - High school (college)………… - Workers of 3/7 grade and below …………… - Workers of 4/7 and higher … ………………… - Unskilled workers …………………… 17 Number of workers having insurance …………… 18 Number of workers without insurance.………… 19 List of machines, equipments and transport vehicles No Name Technical feature Quantity Original price (billion dong) Current price (billion dong) Total 20 Materials: - Material sources:…………………………………………………… …………………… ……………………………………………………………………………………… ………………………………………………………………… - The stableness of material sources ………………………………… …………………… ……………………………………………………………………………………… ………………………………………………………………… - The impact of material price on turnover and profit …………… 104 …………………… ……………………………………………………………………………………… ………………………………………………………………… 21 Trademark:………………………………………………………………… 22 Current quality inspection system:………………………………………… 23 List of subsidiary companies……………………………………………… 24 Factors that impact production in 2013 (please specify major factors impacting company’s production in the year In case of declining production, please specify the causes) …………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… Thanks for your contribution! 105 QUESTIONNAIRE ON COMPETITIVENESS OF LICOGI 18 VERSUS COMPETITORS Dear Sir/Madam, This questionnaire is part of the research on competitive competence of LICOGI 18 Joinstock Company versus some current direct competitors Please answer the questions in the anonymous questionnaire below The researcher highly appreciates your time and cooperation for the research For further information, contact: Dang Van Long Email: danglong185@gmail.com Tel: 0913 209 285 General information Current workplace: Department: Year(s) of experience in current department: .year(s) Year(s) of experience working in construction industry: .year(s) Current working major: Position (if any): Company manager □ Department manager □ Gender: Male □ Female □ Age: 20-30 □ 30-40 □ 40-50 □ > 50 □ For each question, please choose one option complying with your assessment Content: Survey on competitive competence of LOCOGI 18 versus direct competitors (VINACONEX 1, CONSTREXIM Phuc Hung, Song Da 12) by functional indexes Leadership capability Question 1: Your assessment on LICOGI 18’s competence of analysing competitiveness and proposing competitive plan versus competitors: Very High Medium 106 Low Very No idea high low LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 2: Your assessment on LICOGI 18’s competence of analysing and projecting competitive environment versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 3: Your assessment on LICOGI 18’s competence of administration, strategy planning and performation versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Production Question 4: Your assessment on LICOGI 18’s competence of preparing bidding documents versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 5: Your assessment on LICOGI 18’s competence of organising construction space versus competitors: Very high High Medium LICOGI 18 VINACONEX 107 Low Very low No idea Phuc Hung Song Da 12 Question 6: Your assessment on LICOGI 18’s competence of organising construction versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 7: Your assessment on LICOGI 18’s competence of applying advanced construction solutions versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 8: Your assessment on LICOGI 18’s competence of managing materials in the course of construction versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 9: Your assessment on LICOGI 18’s competence of satisfying investor’s requirement for changes in the course of constr uction versus competitors: Very high High Medium LICOGI 18 VINACONEX Phuc Hung Song Da 12 Human resources 108 Low Very low No idea Question 10: Your assessment on LICOGI 18’s human resources in terms o f quality and working skills versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 11: Your assessment on LOCOGI 18’s human resources in term s of quantity versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 12: Your assessment on LICOGI 18’s working motivation elements versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 13: Your assessment on LICOGI 18’s human resources in terms of workmanship versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 14: Your assessment on LICOGI 18’s policy on human resources development versus competitors: Very High Medium 109 Low Very No idea high low LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 15: Your assessment on workers’ compensation policy of LICOGI 18 versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Machinery competence and technology update Question 16: Your assessment on LICOGI 18’s quantity and variety of construction machinery versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 17: Your assessment on LICOGI 18’s quality of construction machinery versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 18: Your assessment on LICOGI 18’s efficiency of machinery usage versus competitors: Very high High Medium LICOGI 18 VINACONEX 110 Low Very low No idea Phuc Hung Song Da 12 Question 19: Your assessment on LICOGI 18’s machinery update and transference of advanced construction technology versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Marketing competence Question 20: Your assessment on LICOGI 18’s bid price versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 21: Your assessment on LICOGI 18’s quality of construction works versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 22: Your assessment on LICOGI 18’s trademark ranking versus competitors: Very high High Medium LICOGI 18 VINACONEX Phuc Hung Song Da 12 111 Low Very low No idea Question 23: Your assessment on LICOGI 18’s competence of marketing and investors relation versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 24: Your assessment on LICOGI 18’s policy of construction maintainance versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Corporate culture Question 25: Your assessment on LICOGI 18’s working environment versus competitors: Very high High Medium Low Very low No idea LICOGI 18 VINACONEX Phuc Hung Song Da 12 Question 26: Your assessment on LOGICO 18’s awareness of corporate cultural versus competitors: Very high High Medium Low LICOGI 18 VINACONEX Phuc Hung Song Da 12 Thanks for your cooperation! 112 Very low No idea 113 ... findings; therefore, all replies from respondents were retained, respected and analyzed objectively In short, the results of this research are of objectivity and high reliability The research results... to preserve and promote the achieved successes, it is essential for LICOGI 18 JSC to take measures to retain and increase its market shares and dominate the market Proceeded from the reality and... 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