Strategies to improve bussiness performance of the highlands

Lunghwa University of Science and Technology Department of Business Administration Thesis for a Master’s Degree STRATEGIES TO IMPROVE BUSSINESS PERFORMANCE OF THE HIGHLANDS Researcher: Pham Khac Hieu Supervisor: Associate Professor Ya- Chi Huang July 2018 i Lunghwa University of Science and Technology Approval Certificate of Master's Degree Examination Board This is to certify that the Master’s Degree Examinations Board has approved the thesis STRATEGIES TO IMPROVE BUSSINESS PERFORMANCE OF THE HIGHLANDS published by Mr Pham Khac Hieu in the Master Program of Graduate School of Department of Business Administration Master’s Degree Examination Board Board Members： Advisors： Chair： Associate Professor Ya- Chi Huang Date： 2018 ／ 07 ／ ii ABSTRACT Thesis Title：STRATEGIES TO IMPROVE BUSSINESS PERFORMANCE OF THE HIGHLANDS Pages：77 University：Lunghwa University of Science and Technology Graduate School：Department of Business Administration Date：July, 2018 Degree：Master Researcher：Pham Khac Hieu Advisor：Associate Professor Ya- Chi Huang Keywords：Sales performance, Strategy, This thesis is dedicated to investigate the factors affecting the business performance of Highlands and provide relevant potential solutions to improve the business performance of Highlands iii ACKNOWLEDGEMENT It is a great pleasure for me to work with this dissertation I would especially like to thank all teachers, professors for all knowledge, skills and information I received It is very wonderful chance to work with so excellent and enthusiastic professors I am also very grateful to my tutor, Associate Professor Ya- Chi Huang, for his support I appreciate all his time and efforts to encourage and guide me during my dissertation writing I would like to thank my colleagues, my customers for helping me to support me information to complete this dissertation and answer the questionnaire for my research This thesis cannot be done without their help Finally, I would like to thank and dedicate this dissertation to my family for the unconditional support, who consistency motivated me to complete the thesis Best regards, Thank you! Pham Khac Hieu iv TABLES OF CONTENTS ABSTRACT iii ACKNOWLEDGEMENT iiv TABLES OF CONTENTS v LIST OF TABLES vii LIST OF FIGURES vii INTRODUCTION 1.1 Rationale of the study topic of thesis .1 1.2 Objectives of thesis 1.3 Study questions 1.4 Research Methodologies and Data 1.4.1 Research process 1.4.2 Data 1.4.3 Handling collected data 1.5 Plan of thesis BACKGROUND OF THE HIGHLANDS AND ITS CONTEXTS 2.1 Introduction 2.2 Overview of Highlands Company 2.2.1 Historical development 2.2.2 Vision and mission 2.2.3 Products and Customer segmentation 2.2.4 Business performance 2.3 Business environment 10 2.3.1 Internal analysis 10 2.3.2 External analysis 13 2.4 Chapter conclusion 16 LITERATURE REVIEWS 18 3.1 Strategy concept and definition 18 3.2 Strategy formulation 18 3.3 Strategy process 19 2.3.1 Strategy process and stages 19 2.3.2 Hierarchy of strategy 21 2.3.3 How to make business strategy to perform 21 3.4 Factors affecting the Strategy making 23 3.4.1 Keys to successful global strategy 23 v 3.5.2 3.5 Developing the core strategy 26 Conclusion 26 DATA ANALYSIS RESULTS AND DISCUSSIONS 27 4.1 Introduction 27 4.2 Survey Results 28 4.2.1 Profile of responders 28 4.2.2 Customer satisfaction assessment 28 4.2.3 Staff satisfaction/assessment 33 4.2.4 Manager satisfaction 35 4.3 Finding of survey 42 4.3.1 Findings from the overviews with staffs 42 4.3.2 Findings from the Survey with managers 43 4.3.3 Findings from the overview of customers 43 4.3.4 SWOT analysis 45 4.4 Conclusion 52 RECOMMENDATIONS TO HIGHLANDS TO IMPROVE ITS BUSINESS PERFORMANCE 54 5.1 Summary of challenges facing Highlands 54 5.2 Strategy to enhance business performance 54 5.2.1 Conducting staff retention programs to keep highly qualified staffs and stabilize human resources 54 5.2.2 Signing option contracts with suppliers to keep input costs under control 55 5.2.3 Renting additional parking spaces to increase the number of customers can be served at a time 56 5.2.4 Creating additional marks in decorating style to renew image 56 5.2.5 Conducting regular working climate surveys to understand potential issues, recognize quickly problems to be addressed 57 5.2.6 Marketing development for lauching a new product line 57 5.3 Limits of thesis 58 5.4 Conclusion 59 LIST OF REFERENCES 60 vi LIST OF TABLES Table 3-1: SWOT matrix (Winer, 2006) .23 Table 4-1: Profile of responders 28 Table 4-2: Customer satisfaction 28 Table 4-3: Frequent attendance of customers 32 Table 4-4: The number of years staffs work at Highlands 35 LIST OF FIGURES Figure 2-1: Organizational structure Figure 2-2: Production lines .8 Figure 2-3: Porter’s value chain .10 Figure 2-4 Porter’s five forces 13 Figure 3-1: The New Business HR Agenda 22 Figure 4-1: Customers’ assessment on Product diversification 29 Figure 4-2: Customers’ assessment on theme 30 Figure 4-3: Customers’ assessment on product quality 30 Figure 4-4: Customers’ assessment on rush-hour service quality 31 Figure 4-5: Customers’ assessment on promotional activities 31 Figure 4-6: Customers’ assessment on comparative advantage 32 Figure 4-7: The compensation policy valuation 33 Figure 4-8: The working environment 34 Figure 4-9: Assessment on Training 34 Figure 4-10: Evaluation of the training program for the management .39 Figure 4-11: Evaluation of remunerations 40 Figure 4-12: Assessment of the factors affecting the operation of the Highlands 41 vii Figure 4-13: Evaluate the level of adaptation to highlands programs 41 Figure 4-14: SWOT analysis .45 Figure 4-15 SO, WO, ST, WT strategies 52 viii 1.INTRODUCTION 1.1 Rationale of the study topic of thesis Highlands is a business operating in the cafeteria industry Highlands has a number of strengths First, Highlands stores is mostly located at center of city or famous shopping malls, crowded areas Second, Highlands also has a flexible shipping service combinated with Delivery now app Third, coffee bean materials are purchased from the original and qualified coffee farms Finally, the strength of Highlands comes from its bargaining power; the ability of Highlands to exert influence over suppliers in a negotiation in order to achieve a deal which is favorable to themselves as every year Highlands collects and purchase a lot of input stuffs (Dũng, 2015; Tran, 2016) However, recent development of the market shows a number of threats to the company including growing competitors, growing entrants, brand loyalty, competitive price, increasing cost of rent, high rate of staff turnover, etc That makes changes in strategy to keep up with business environment Business strategy plays an important part in the survival and development of each business In competitive market, good strategies can help businesses more successful than many competitors and create its place in the marketplace The purpose of this study is to learn about the business strategies of specific businesses based on the study of Highlands To evaluate strategies, finding strengths and weaknesses, and ultimately developing strategies to improve the company's strategy play important role A good business strategy will help the company capture the opportunities as well as combat threat in order to develop business Besides, Highlands should learn the lessons of business strategies from domestic and foreign enterprises to improve and develop business strategies of enterprises This is the reason that I choose the topic of “Strategies to improve business performance of the Highlands” for my thesis 1.2 Objectives of thesis The primary objective of this thesis is to investigate the current performance of Highlands company and recommend relevant solutions to improve the performance 1.3 Study questions This thesis will discuss the questions below:  What are strengths and weakness of Highlands?  What are opportunities and threats of Highlands?  How to improve the performance of Highlands? 1.4 Research Methodologies and Data 1.4.1 Research process The thesis is going to use Data Collection, Comparison, Qualitative, and Quantitative Analysis  Information are collected to get background; literature review to support analysis  Comparison experiences of e-commerce from some countries, combine with the facts in Vietnam to provide optimal solutions  Qualitative analysis: Indicating to the written data is known as qualitative approach which collects, describes, and analyses the characteristic of the subject matter This form of method specializes to empirical reasoning and theoretical creation which used interpretation outlook and does not prove anything but explaining through the tectonic theory in the research Although the qualitative method can be carried out via the survey, the inquiry must be in open question  Quantitative analysis: refers to the process of gathering, analyzing and presenting the information from raw data in any phenomenal issues of the research that mainly related to numbers The quantitative inquiry is based mainly on the theories which can be demonstrated in practice and by subjective aspect because of the principle in numbers In this case, the quantitative research amplified mostly to the closed questionnaire in the survey The statistical result is used to test the truly hypothesizes through table, chart, and graph indications Modorintelligence (2018, 03) Vietnam Coffee Market - Growth, Trends and Forecasts (2018 - 2023) Retrieved from www.mordorintelligence.com: https://www.mordorintelligence.com/industry-reports/vietnam-coffee-market Nam, S (2013, 07 15) The real owner of Highlands Coffee Retrieved from english.vietnamnet.vn: http://english.vietnamnet.vn/fms/business/78697/the- real-owner-of-highlands-coffee.html Ngoc, L L (2013, 12 13) Tieu luan Quan tri dich vu Cafe Highlands Retrieved from LuanVan: http://luanvan.co/luan-van/tieu-luan-quan-tri-dich-vu-cafe-highlandscoffee-47802/# Porter, M (2012) Porter's value chain Retrieved from kfknowledgebank.kaplan.co.uk: http://kfknowledgebank.kaplan.co.uk/KFKB/Wiki%20Pages/Porter's%20value% 20chain%20model.aspx Porter, M E (1990) The Competitive Advantage of Nations New York: Free Press New York Report, G C (2013) Vietnam, Buon Ma Thuot - a coffee success story Retrieved from Global coffee report: http://gcrmag.com/market-reports/view/vietnam-buon-mathuot-a-coffee-success-story Robert E Morgan, E R (2011) The contribution of marketing to business strategy formation: a perspective on business performance gains, Journal of Strategy Marketing Saee, J (2005) Managing Organizations in a Global Economy Ohio, USA: South Western-Thomson Learning Sài Gòn Tiếp thị (2018) Kinh doanh nhà hàng toán mặt Retrieved from http://www.rkeeper.vn: http://www.rkeeper.vn/tin-tuc/tin-tuc-chung/kinh-doanhnha-hang-va-bai-toan-mat-bang-c66a147.html Sang, N M (2016, 11 21) Logo có vai trị chiến lược thương hiệu doanh nghiệp bạn? Retrieved from 63 http://www.brandsvietnam.com: http://www.brandsvietnam.com/congdong/topic/4111-Logo-co-vai-tro-gi-trongchien-luoc-thuong-hieu-cua-doanh-nghiep-ban Strickland, T a (1996) Strategic Management 9th edn Irwin, Sydney: Times Mirror Higher Education Group Sydney Thắng, Q (2011, 05 21) Tập đồn Philippine đầu tư 25 triệu USD vào cơng ty sở hữu Highland Coffee Retrieved from cafef.vn: http://cafef.vn/doanh-nghiep/tapdoan-philippine-dau-tu-25-trieu-usd-vao-cong-ty-so-huu-highland-coffee20110521024525903.chn Thọ, Đ (2017, 05 15) 15 năm tăng từ lên 180 cửa hàng: Khơng phải chiến lược “bình dân hóa”, điều làm nên thành công cho Highlands Coffee Retrieved from http://cafebiz.vn: http://cafebiz.vn/15-nam-tang-tu-2-len-180cua-hang-khong-phai-chien-luoc-binh-dan-hoa-day-moi-la-dieu-lam-nen-thanhcong-cho-highlands-coffee-2017051311370726.chn Toni-Matti Karjalainen, M K (2011) IDBM Papers Vol.1 Helsinki: IDBM Program, Aalto University Tran, P (2016, 09 06) Phân tích chiến lược kinh doanh Highland coffee Retrieved from www.slideshare.net: https://www.slideshare.net/PenguinTran/highland- coffee Trang, Trang, Anh, K., & Oanh (2018) IMPROVING RISK MANAGEMENT AT HIGHLANDS tư, N c (2010, 05 31) Thị trường cà phê hòa tan: Nóng cen-ti-met Retrieved from nhipcaudautu.vn: http://nhipcaudautu.vn/nhan-vat/thi-truong-ca-phe-hoatan-nong-tung-cen-ti-met-3261091/ Tư, N C (2011, 09 05) Vinacafe mảnh ghép cà phê rang xay Retrieved from nhipcaudautu.vn: http://nhipcaudautu.vn/nhan-vat/vinacafe-va-manh-ghep-ca- phe-rang-xay-3255961/ Tuckman, B W (1965) Developmental sequence in small groups Waters, M (1995) Globalisation London: Routledge London 64 Website, Highlands (2014) Highlands coffee main page Retrieved from About Highlands coffee: http://www.highlandscoffee.com.vn/vi/v-chung-toi website, s (2016) starbucks coffee main page Retrieved from starbucks.vn: http://www.starbucks.vn/ website, T c (n.d.) The coffee bean & tea leaf main page Retrieved from coffeebean.com.vn: https://coffeebean.com.vn/vi/ve-coffee-bean/di-san-cua- chung-toi wikipedia (2017, 09 3) Highlands Coffee Retrieved from wikipedia.org: https://en.wikipedia.org/wiki/Highlands_Coffee Wikipedia (2017, 09 3) Highlands Coffee Retrieved from wikipedia.org: https://en.wikipedia.org/wiki/Highlands_Coffee Winer, L (2006, 23) Retrieved from www.flickr.com: http://www.flickr.com/photos/51072101@N00 /91829174/ Yip, G S (1995) Total Global Strategy: Managing for Worldwide Competitive Advantage New Jersey: Prentice Hall 65 APPENDIX 66 67 68 69 70 71 72 73 74 75 76 77 ... the topic of ? ?Strategies to improve business performance of the Highlands? ?? for my thesis 1.2 Objectives of thesis The primary objective of this thesis is to investigate the current performance of. .. of the reason why Highlands sold a half of stock to Jollibee to develop the brand to the world and Philippine is the first country Jollibee said that they would add products of Highlands in the. .. integral part of the community Therefore, in their déign, Coffee House always tries to bring the localism to each of its stores and make customers to feel that they belong to this place from the first