Improve the competitiveness of Newland invest joint stock company = Nâng cao năng lực cạnh tranh của công ty cổ phần đầu tư Newland

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - GIÁP VĂN TIỆP IMPROVE THE COMPETITIVENESS OF NEWLAND INVEST JOINT STOCK COMPANY NÂNG CAO NĂNG LỰC CẠNH TRANH CỦA CÔNG TY CỔ PHẦN ĐẦU TƯ NEWLAND LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - GIÁP VĂN TIỆP IMPROVE THE COMPETITIVENESS OF NEWLAND INVEST JOINT STOCK COMPANY NÂNG CAO NĂNG LỰC CẠNH TRANH CỦA CÔNG TY CỔ PHẦN ĐẦU TƯ NEWLAND Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƯƠNG Hà Nội - 2018 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it has not yet published in others’ researches and articles The others’ research results and documentations (extractions, tables, figures, formulas, and other documents) used in the thesis were cited properly and the permission (if required) was given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration Date………………………… ACKNOWLEDGMENTS Throughout the process of study, research and thesis conduction, the author have obtained a great amount of valuable and useful knowledge from the training programme, the consideration and support from the teachers, the Board of Leaders of Newland Investment Joint Stock Company and the co-workers in the company With all the heart and the gratitude, the author is sincerely thankful to the teachers of the Vietnam National University, Hanoi, especially PhD Tran Huy Phuong who have spent great time and effort giving whole-hearted guidance and support with valuable comments for the thesis to be completed better The author would like to express the gratitude towards the Board of leaders and the co-workers of New Land Investment Joint Stock Company where the author is working for creating favourable conditions, providing assistance in terms of timing, providing data and information for the author to finalize the thesis The author owes deeply all the friends and family for their support during the period of researching for the thesis Author Giap Van Tiep TABLES OF CONTENTS LIST OF ABBREVIATION i INTRODUCTION .1 CHAPTER 1: BASIC ISSUES ON COMPETITIVENESS AND EXPERIENCE TO ENHANCE COMPETITIVENESS OF THE ENTERPRISE 11 1.1 Competition and roles of competition in a enterprise 11 1.1.1 Concept and classification of competition 11 1.1.2 Roles of competition .14 1.2 Competitiveness and the necessity to promote the competitiveness of the enterprise .16 1.2.1 Concept of competitiveness of the enterprise .16 1.2.2 Characters of enterprise’s competitiveness 18 1.2.3 Criteria to evaluate enterprise’s competitiveness 19 1.2.3 Elements affecting the competitiveness of the enterprise 25 1.2.4 The necessity of the enterprise’s competitiveness 35 1.3 Experience withdrawn in promoting competitiveness of a number of enterprises and the lessons 37 1.3.1 Experience of competitiveness promotion of a number of enterprises 37 1.3.2 Lessons for Newland Investment Joint Stock Company .41 1.4 Thesis research model 42 CHAPTER 2: CURRENT SITUTAION OF THE COMPETITVENESS OF NEW LAND INVESTMENT JOINT STOCK COMPANY .43 2.1 Overview of the business activity operation of the Newland Investment Joint Stock Company 43 2.1.1 History of the establishment, development, organization and business field 43 2.1.2 Business activities of Newland Invest., JSC in the recent time 45 2.2 Newland Current situation of competitiveness of Newland Investment Joint Stock Company 47 2.2.1 Analysis of the competitiveness criteria of Newland Investment Joint Stock Company .47 2.2.2 Elements affecting competitiveness of Newland Invest., JSC 57 2.3 Evaluation of competitiveness of Newland Invest., JSC .70 2.3.1 Evaluation of competitiveness of Newland compared to competitors on the target market 70 2.3.2 Achievements 71 2.3.3 Limitations and reasons .73 CHAPTER 3: MAIN SOLUTIONS TO PROMOTE COMPETITIVENES FOR NEWLAND INVEST., JSC .79 3.1 Business direction and requirements to promote competitiveness of the company .79 3.1.1 Current situation and requirements to promote competitiveness of the company 79 3.1.2 Business operation direction and the guidance to promote competitiveness of the company .82 3.2 Main solutions to promote competitiveness of the Company 84 3.2.1 Build the development strategy for Newland Invest., JSC up to 2025 84 3.2.2 Accelerate the market research activities 85 3.2.3 Promote marketing activities, branding and brand promotion 87 3.2.4 Improve the quality of the human resource 88 3.2.5 Raise the material and technical capability 90 3.2.6 Raise the efficiency of capital raising and use .91 CONCLUSION 94 REFERENCES: .96 APPENDIX 100 LIST OF ABBREVIATION NO ABBREVIATION MEANING BĐS Bất động sản (Real Estate) CPĐT Cổ phần đầu tư (Investment Joint Stock) CBCNV Cán công nhân viên (Staff) NLCT Năng lực cạnh tranh (Competitive capability) KH Khách hang (Customers) TP Thành phố (City) XD Xây dựng (Construction) i INTRODUCTION Urgency of the topic Since the date of national renewal, under the leadership of the communist Party with the strong reformation of economic institution, Vietnam has been integrated with the international economic widely and deeply, raising the position and the role of Vietnam on international arena Such result was achieved by the Party’s policy on the proper concentration on improving business environment and promote the competitiveness This was shown through a series of Government Resolutions issued With the breakthrough and creative thinking, the Government has been giving instruction on the proper implementation of the drastic steps in order to improve the business environment, promote the national competitive capacity etc The real estate market in 2017 was forecasted with more competition compared to 2015 and 2016 The Victory will be on the side of the projects with outstanding differences or high quality or rich and experienced owners In 2017, more projects of various kinds, segments and locations will be offered on the market In 2015 and 2016, in the market, there were many projects developed; therefore, in 2017, the market will face the risks of saturation It is essential for the enterprises to save themselves through the activities of enterprise re-structuring, investment restructuring, stopping, reducing or expanding the project implementation progress, restructuring the products to be more suitable to the market demand and purchasing power; promote cooperation and connection amongst the enterprises; expand trading, merging of the enterprises and project transferring Within the first six months of 2016, the real estate market in Hai Duong witnessed with fierce competition with the aims to control the market shares According to the annual statistics, each year, in Hai Duong market, approximately 800 to 1000 billion dongs are invested in the real estate market From the beginning of 2017, the big or small investors all have their own strategies to control the capital source of the market Complying to the 2016 statistics, the market shares amongst the competitors are as follows: Hanoi Nam Cuong Corporation branch in Hai Duong 39%, Thanh Dong Real Estate Company 13%, Newland Investment Joint Stock Company approximately 18%, Hoang Thanh Real Estate Company about 22%, Quang Giap Limited Company around 3% and other small companies In 2017, it is anticipated with sales launches from the above companies and other new companies which are accelerating the progress to complete the project procedures in order to attract investment capital Newland Investment Joint Stock Company was established in 2010 with 10 members and the initial charter capital of billion dongs The company was officially put into operation in 2011 with the headquarter located in Nguyen Chi Thanh Street – Hanoi After years of operation, the company scale was expanded with 01 branch in Hanoi Duong City, 02 member companies and the human resource of over 450 people, the charter capital of 258 billion dongs which is increasing in the upcoming time The main operation areas are: basic construction, real estate trading and commerce Currently, the company is developing and implementing the construction investment of a series of residential and new urban areas in Hai Duong City and the company is seeking for the investment opportunities in new market In fact, nowadays, the company is encountering a great number of difficulties and facing challenges in competition to control the real estate market in Hai Duong With the policy of the company leaders which is step by step obtaining the substantial development for the company in Hai Duong to be the driving power for the company to promptly implement the investment in Hanoi and other surrounding provinces As the person who is in charge of the real estate business in Hai Duong market, the author always gives the best effort to find the resolution to promote the competitiveness of the company in the upcoming time To resolve this issue, it is necessary to have a special research subject which evaluates in a detailed and scientific manners from theory to practice so that the best solutions can be achieved for the enterprise As a result I would like to propose the name of the thesis as” Promoting competitiveness of Newland Investment Joint Stock Company” to be the Master of Business Administration thesis paper 2 Literature review 2.1 International research works International research works on Competitiveness of a enterprise which the author have studies are presented in a number of materials as follows: Michael E Porter is the author of the work “Competitive advantage which was translated into Vietnamese and published by the Youth Publisher In this book, Porter listed out the value chains, competitive strategies of the firms including low costs, differentiation, horizontal strategy, diversification and defence strategy Particularly Porter provided deep analysis on the industry structure consisting of definition of an industry, industry structure and buyers’ demand; industry structure and demand supply balance, industry segmentation matrix, relationships between technology and competitive advantage This is the literature foundation to be applied to the thesis in analysis of the segmentation analysis, telecommunication analysis and telecommunication competitiveness Michael E Porter stated in the work named “Competitive Strategy” which was translated and published by Youth Publisher (2009) In this book, Porter provided the techniques to analyze the industry and competitors, especially in which Porter clarify the structural analysis of industries, the elements determining the competition intension in the industry (customers, substitute products, potential competitors, supplier and competitors in the industrial), living cycle of a product, framework for the industry operation forecast These are the important theories which will be applied to the thesis to clarify the competitive capacity John H Dunning (1993) in the work “Internationalizing Porter’s diamond” published in Management International review, special issue, volume 33(2), paper 8-18, expanded Porter’s diamond model in the situation of globalization and integration of the world economy Dunning assumed that the old diamond model is no longer correct in the assessment of competitiveness for a nation/ industry in the context of international commercial exchange, investment and cooperation Hence, Dunning added the element of international investment into the model to evaluate the elements affecting competitiveness of the nation/ industry 50.00% 43.80% 40.00% 30.00% 20.00% 25% 14.60% 10.00% 6.70% 0.00% Too high High Normal Cheap, acceptable Source: the survey result of the author, 2017 Chart 2.5: Customers’ evaluation on the housing price of the Company compared to the average level in the area of Hai Duong 10.40% Satisfied 25.00% Normal 64.60% Not satisfied Source: the survey result of the author, 2017 Chart 2.6: Customers’ satisfaction to the product distribution policy 117 24.24% 25.00% 21.21% 18.18% 20.00% 14.39% 12.12% 15.00% 9.85% 10.00% 5.00% 0.00% Nam Cuong Thanh Dong Newland Quang Giap Nam Quang Hai Duong House Source: the survey result of the author, 2017 Chart 2.7: Customers’ evaluation of the reputation of Newland Company 50 45 42 43 41 40 30 29 28 25 20 10 Source: the survey result of the author, 2017 Chart 2.8: elements that the customers give priority when selecting a real estate product 118 Le Thanh Nghi Binh Han 9% 8% Ngoc Chau 10% Cam Thuong 7% Hai Tan 7% Nhi Chau 6% Quang Trung 7% Thanh Binh 15% Nguyen Trai 6% Pham Ngu Lao 8% Tan Binh 17% Source: Result from Business Division, 2016 Chart 2.9: Areas that the customers favoured when choosing a real estate product Chart 2.10: Chart of the fluctuation of the growth of construction and GDP Source: Report of construction industry FPTS, May 2015 119 100.68% 101% 101% 100% 99.96% 99.92% 100% 99.72% 99.45% 100% 99% CPI 98.37% 99% 98% 98% 97% Dec-16 Jan Feb Mar April May June Chart 2.11 CPI index of the early months of 2017 to December 2016 Source: Department of Statistics of Hai Duong Chart 2.12 Vietnam and construction productivity Source: Construction industry report, FPTS, May 2015 Chart 2.13: Labour cost of Vietnam Source: Construction industry report, FPTS, May 2015 120 Threats of suppliers: - Clearness and efficiency of investment management Industry competitors - Fierce competitions of price, project scale, location; - Enterprise financial capability - Differentiation of services and utilities - Reputation, market strategy Threats from customers - Sensitivity to product price, service and utilities - Difference of products (design, quality, after sales) Threats of subsititute products - Investment channels: stock, gold, foreign currency, deposits to banks Figure 2.1: Model of competition forces of Newland Invest., JSC 121 APPENDIX 03 CUSTOMER QUESTIONNAIRE Newland Invest., JSC would like to sincerely express the gratitude to your esteemed customers for using your products in the recent time In order to raise the quality of the products and to serve your esteemed customers thoroughly We would kindly like you to evaluate the following activities of the Company Your cooperation would assist the Company to have the solutions to raise the product quality and sales service to be better and better Thank you very much! I Customer information: - Full name: ………………………………………………… - Address: ……………………………………………… ………………… - Number of family members: - Average income of the family: - Survey date: date ………… month………… 2017 If you are agree with such option, please put an “X” into the box II Survey content What type of houses are you staying? Private house Apartment No private property Do you have need for property? Yes No If yes, which type of property would you wish to own? Land Adjacent house Apartment Villa 122 Phone: Others What is your purpose of owning a property? For long term residence For leasing (asset) Service business Investment Others What are the elements that you give priority when purchasing real estate product? Price Location, position Traffic Environment Infrastructure People’ s cultural standard Investor Have you searched for the products of Newland Invest., JSC.? Yes Not yet What is the information access to Newland? Website Press Leaflet Company’s headquarter Recommendation Television/ radio What requirements you have for the products supplied by Newland? More plants More area for community activities Change of lot area 123 More area for traffic road More area for pavement Others (construction support, sample house, etc.) What is your satisfaction level on the company product? Satisfied Normal Unsatisfied 10 What is your judgment on the reputation of Newland Invest., JSC? High Normal No 11 Other comments for the company 124 APPENDIX 04 QUESTIONNAIRE FOR OPINIONS OF NEWLAND COMPANY LEADER BOARD AND EXPERTS In order to evaluate the competitiveness of Newland Invest., JSC in comparison with other competitors on the market, I would like to kindly request the leader board of the Company and the experts to participate in the survey by answering the questions as follows Your cooperation will assist the Company to assess properly its competitiveness on the market and propose the suitable solutions to help the Company to promote the competitiveness in the upcoming time I would like to respectfully express my sincere gratitude to you! I Respondent’s information: - Full name:………………………………………………… - Position: - Qualification Level: - Address: ……………………………………………… Tel: ………………… II Survey content Question 1: In your opinion, which of the following elements affecting the competitiveness of the real estate enterprises currently? (Put an “X” in the box next the the opinion you agree with Besides, you can supplement other elements in your opinion) Effects No Real enterprise Enterprise market shares Financial position Product and service quality Product and service prices Distribution network the competitiveness Criteria on 125 of estate Brand and reputation Communication and Promotion Labour level 10 Question 2: Please evaluate the competitiveness of the following enterprises through the element below according to the instruction: (Ki: You evaluate the importance of the elements affecting the competitiveness by scoring from 0-1, the total of the elements must be equal to 1.) (Pi: You give score to the effect level of the elements leading to the competitiveness of the enterprise on the band score from 1-4 from less effect to most effect) 126 NEWLAND NAM CUONG THANH DONG HA HAI Coefficient No Target of importance (Ki) Points of impact (Pi) Enterprise market shares Financial position Product and service quality Product and service prices Distribution network Brand and reputation Communication and Promotion Labour level Points of coefficient of importance (Ki*Pi) Sum 127 Points of impact (Pi) Points of coefficient of importance (Ki*Pi) Points of impact (Pi) Points of coefficient of importance (Ki*Pi) Points of impact (Pi) Points of coefficient of importance (Ki*Pi) Question 3: Direct interview with leader board of Newland Invest., JSC.? 3.1.Please evaluate the strengths of the Company currently compared to its competitors? 3.2 Please evaluate the limitations of the Company currently compared to its competitors? 3.3 What is the development direction of the Company up to 2025? 3.4 In your opinion, which groups of solutions are suitable to the Company at the moment to promote the competitiveness? Thank you for participating in the survey! 128 APPENDIX 05 RESULTS OF THE OPINIONS OF NEWLAND COMPANY LEADER BOARD Question 1: In your opinion, which of the following elements affecting the competitiveness of the real estate enterprises currently? (Put an “X” in the box next the the opinion you agree with Besides, you can supplement other elements in your opinion) Number No Criteria of Rate answer % sheets Enterprise market shares 16 100.0 Financial position 14 87.5 Product and service quality 14 87.5 Product and service prices 16 100.0 Distribution network 12 75.0 Brand and reputation 13 81.3 Communication and Promotion 11 68.8 Labour level 15 93.8 Question 2: Please evaluate the competitiveness of the following enterprises through the element below according to the instruction: (Ki: You evaluate the importance of the elements affecting the competitiveness by scoring from 0-1, the total of the elements must be equal to 1.) (Pi: You give score to the effect level of the elements leading to the competitiveness of the enterprise on the band score from 1-4 from less effect to most effect) 129 Coeffi NEWLAND cient No Target of Number Rate import of votes % ance Enterprise market shares Financial position Product and service quality Product and service prices Distribution network Brand and reputation Communication and Promotion Labour level of impact (Pi) (Ki) Points Numb er of votes NAMCUONG Points Rate of % impact (Pi) Numb er of votes THANH DONG Points Rate of % impact (Pi) Num ber of votes HA HAI Points Rate of % impact (Pi) Num ber of votes Rate % 0.1 16 100.0 16 100.0 14 87.5 12 7.,0 16 100.0 0.2 14 87.5 16 100.0 12 75.0 14 87.5 12 75.0 0.15 12 75.0 15 93.8 15 93.8 16 100.0 15 93.8 0.15 15 93.8 13 81.3 13 81.3 15 93.8 14 87.5 0.1 11 68.8 16 100.0 16 100.0 13 81.3 14 87.5 0.1 13 81.3 12 75.0 10 62.5 11 68.8 13 81.3 0.1 16 100.0 15 93.8 13 81.3 10 62.5 16 100.0 0.1 16 100.0 14 87.5 15 93.8 13 81.3 13 81.3 130 Question 3: Direct interview with leader board of Newland Invest., JSC.? 3.1.Please evaluate the strengths of the Company currently compared to its competitors? - The Company possesses relatively large market shares on Hai Duong real estate market - Real estate products of the Company is suitable with the demand and incomes of the consumers so the liquidity is rather high - The Company has performed relatively good the process of distribution, sales promotion to the customers - The Company always cares about the development of human resource quantity and quality 3.2 Please evaluate the limitations of the Company currently compared to its competitors? - There are several products with higher prices than competitor’s - The capital of the company is limited - There are not many human resources with specialization - The brand of the company is quite new to the potential customers 3.3 What is the development direction of the Company up to 2025? - Develop qualified human resources with long term commitment with the company - Enhance the branding of Newland - Expand the development into construction, education, mining etc 3.4 In your opinion, which groups of solutions are suitable to the Company at the moment to promote the competitiveness? - Formulate clear strategy - Enhance market research - Enhance marketing activities to promote the brand - Solutions to recruitment, training of human resources - Focus the capital efficiency - Develop material, scientific and technical basis 131