Luận văn tiếng Anh: Business strategy formation for Saigon purified water limited company (Sapuwa) for the period 2013 to 2018
Nhà xuất bản: Trung tâm Công nghệ Đào tạo và Hệ thống việc làm
Ngày: 2013
Chủ đề: Chiến lược kinh doanh
Nước tinh khiết
Giai đoạn 2013 – 2018
Miêu tả: Electronic Resources
Luận văn ThS. Quản trị kinh doanh – Trung tâm Công nghệ Đào tạo và Hệ thống việc làm. Đại học Quốc gia Hà Nội, 2013
TABLE OF CONTENT
INTRODUCTION .........................................................................................................................1
1.The purpose of the research......................................................................................................1
2. The targets of the research.......................................................................................................1
3. Research areas .........................................................................................................................2
4. Research methodology and data source.................................................................................2
4.1 Research method ................................................................................................................2
4.2 Data source.........................................................................................................................2
5. The aims of the research ..........................................................................................................3
6. Structure of the research ..........................................................................................................3
CHAPTER 1: THEORIES ON BUSINESS STRATEGIES FORMATION ...........................4
1.1. Definition of a strategy .........................................................................................................4
1.2. Roles of a strategy ................................................................................................................4
1.3. Classification of strategy ......................................................................................................5
1.3.1. Classification by management involvement ....................................................................5
1.3.2. Strategies classification on functions...............................................................................6
1.4. Strategies management process ............................................................................................6
1.5. Business strategy formation methodology............................................................................8
1.5.1 Vision, mission, strategic goals of a company ..................................................................8
1.5.2. External environment analysis ........................................................................................8
1.5.3. Internal environment.....................................................................................................11
1.5.3.1 Human resource.....................................................................................................11
1.5.3.2 Financial ability.....................................................................................................11
1.5.3.3 Marketing and selling operations ..........................................................................12
1.5.3.4. Management activities..........................................................................................12
1.5.3.5. Technology:..........................................................................................................13
1.6. Toolkit for strategy formulation .........................................................................................13
1.6.1. External factor evaluation matrix (EFE Matrix).............................................................13
1.6.2. Internal factor evaluation matrix (IFE Matrix)...............................................................14
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
1.6.3. Competitive picture matrix (CPM)................................................................................14
1.6.4. SWOT matrix ...............................................................................................................15
1.6.5. QSPhần mềm (Quantitative Strategic Planning Matrix)............................................................16
SUMMARY OF CHAPTER 1....................................................................................................18
CHAPTER 2: ANALYSIS AND ASSESSMENT BUSINESS PERFORMANCE AND
ENVIRONMENT OF SAIGON PURIFIED WATER CO., LTD. (SAPUWA) ....................19
2.1 Background Information of SAIGON PURE WATER Ltd. Company (SAPUWA) .....19
2.1.1 History and Development ..............................................................................................19
2.1.2 Business Philosophy of SAPUWA: 4 “Cleans”..............................................................20
2.1.3 Slogan of SAPUWA : “The Endless Purity” ...............................................................20
2.1.4 Organization of SAPUWA ............................................................................................20
2.1.5 Market and Market Share of SAPUWA .........................................................................22
2.1.5.1 Market ...................................................................................................................22
2.1.5.2 Market Share .........................................................................................................22
2.1.6 Business Results of SAPUWA in 3 years (2010-2012)...................................................22
2.2 Environmental Factors Affected SAPUWA’s Business Operation.....................................24
2.2.1 Analysis of External Environment .................................................................................24
2.2.1.1 Macro Environment...............................................................................................24
2.2.1.2 Micro Environment ...............................................................................................26
2.2.1.3 External Factor Evaluation Matrix ........................................................................28
2.2.1.4. Competitive Profile Matrix (CPM) ......................................................................30
2.2.2 Analysis of Internal Environment...................................................................................31
2.2.2.1 Structure, Organization Chart and Management Board of SAPUWA..................31
2.2.2.2 Human Resources..................................................................................................31
2.2.2.3 Financial Capacity.................................................................................................31
2.2.2.4. Workshop, Machinery and Technology ...............................................................38
2.2.2.5. Manufacturing Process of SAPUWA’s Bottled Water (Appendix VI)................39
2.2.2.6. Information System ..............................................................................................39
2.2.2.7. Intellectual Property and Copyright .....................................................................39Business strategy formation for SaiGon purified water limited company for 2013 - 2018
2.2.2.8. Possibility in Research and Product Development...............................................39
2.2.2.9 Marketing ..............................................................................................................39
2.2.2.10. Internal Factor Evaluation Matrix (IFE).............................................................49
2.2.3 SWOT of SAPUWA.....................................................................................................51
SUMMARY OF CHAPTER 2....................................................................................................52
CHAPTER 3: BUSINESS STRATEGIC PLAN FOR SAIGON PURIFED WATER Ltd.
COMPANY BY 2018...................................................................................................................53
3.1 Mission, Orientation and Development Objectives of SAPUWA by 2018.........................53
3.1.1 Mission..........................................................................................................................53
3.1.2 Orientation.....................................................................................................................53
3.1.3 The developmental goals of Sapuwa by 2018.................................................................54
3.2 Formulating and Selecting Business Strategies For SAPUWA by 2018 ............................55
3.2.1 Formulating Strategies For SWOT Matrix Analysis.......................................................55
3.2.2 Selecting Strategies via QSPhần mềm matrix............................................................................60
3.3 Recommendation of Business Strategy For SAPUWA by 2018.........................................65
3.3.1 Solutions for Finance and Accounting............................................................................65
3.3.2 Solutions for Management.............................................................................................65
3.3.3 Solutions for Human Resource.......................................................................................65
3.3.5 Solutions for Organization .............................................................................................66
3.3.5.1 Mission of Marketing Division .............................................................................66
3.3.5.2 Mission of Marketing Division’s Departments .....................................................67
3.3.6 Solutions for Market and Market Research Organization ...............................................68
3.3.6.1 Solutions for Marketing.........................................................................................68
3.3.6.2 Market Research Organization..............................................................................68
3.3.7. Building, Consolidating and Developing Customers Relationship .................................69
3.3.8. Completing Customers’ Complaint-Taking Service ......................................................70
3.4. Recommendations...............................................................................................................70
3.4.1 Recommendation for Government .................................................................................70
3.4.2 Recommendation for SAPUWA....................................................................................71
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
SUMMARY OF CHAPTER 3....................................................................................................71
CONCLUSION............................................................................................................................72
REFERENCES ............................................................................................................................73
LIST OF APPENDIX.....................................................................................................................iBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
LIST OF TABLE AND FIGURE
Table 1-1 : Model of global strategic management
Table 1-2 : 5 Forces of M.Porter
Table 1-3 : External Environment Matrix – EFE
Table 1-4 : Infernal Environment Matrix – IFE
Table 1-5 : CPhần mềm matrix
Table 1-6 : SWOT matrix
Table 1-7 : QSPhần mềm matrix
Table 2.1 : Financial annual report of SAPUWA from 2010 to 2012
Table 2.2 : Customers Development through the years (2008 – 2012)
Table 2.3 : External Factors Evaluation Matrix
Table 2.4 : Competitive Profile Matrix
Table 2.5 : Basic Financial Targets in the last 3 years (2010-2012)
Table 2.6 : Financial targets
Table 2.7 : Product Parttern of Consumption in 2010 - 2012
Table 2.8 : SAPUWA’s Price List
Table 2.9 : Price List of Accompanying Products
Table 2.10 : EX Works (EXW) of same products of competitors
Table 2.11 : Distributing Channels of SAPUWA
Table 2.12 : Internal Factor Evaluation Matrix.
Table 2.13 : SWOT Analysis of SAPUWA
Table 3.1 : The SWOT Matrix of SAPUWA
Table 3.2 : QSPhần mềm Matrix for the group S-O
Table 3.3 : The QSPhần mềm Matrix for the group S-T
Table 3.4 : The Marketing Division
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
ABBREVIATION LIST
Ltd. : Limited
EPI : Earth Policy Institute
GDP : Gross Domestic Product
Sol : Solution
Gal. : Gallon
PQC : Product Quality Control
L. : Litter
MW : Mineral Water
BW : Bottled Water
M-BW : Mineral and Bottled Water
CMW : Carbonated Mineral Water
NCMW : Non-Carbonated Mineral Water
PC : Polycarbonate
PET : Polyethylene Terephthalate
WBS : Wine, Beer and Soft Drink
HCMC : Ho Chi Minh City
VS : Vietnamese Standards
USD : United State Dollar
VND : Vietnam Dong
FHS : Food Hygiene and Safety
WTO : World Trade OrganizationBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 1 of 73
INTRODUCTION
1.The purpose of the research
Vietnam market of bottled mineral and drinking water has enjoyed exciting
growth, with average annual growth of 26%, and stood at 22% of the total beverage
market. The attractiveness of the market has drawn interest and participation of various
economic forces, both domestic and international, which drove the market to a fiercer
competition. (Source: AC Nielsen)
Being one of the leaders in Vietnam bottled drinking water industry, Saigon Purified
Water Company Limited (SAPUWA) has been a major player in the Vietnam market for
bottled mineral and drinking water since 1992, and has gained various significant
encouraging achievements. However, as the market has turned to be very fierce competitive
environment, and as a response to the strong move of global integration, SAPUWA is forced
to face the business environment with continuous changing, more sophisticated with more
unforeseen risk factors. In response to the escalating competitive pressure, in order to sustain
and grow, Vietnam businesses in general and Saigon Purified Water Company Limited
(SAPUWA) in particular are required to form their own suitable, appropriate and efficient
business strategies.
As required by the need found from the current market situation, and with the
desire to contribute to the development of a business in the bottled mineral and drinking
water industry, the Group One selected to conduct a research on the theme: “Business
Strategy Formation for Saigon Purified Water Company Limited (Sapuwa) for the
period 2013 to 2018”.
2. The targets of the research
The primary targets of this research include to figure out the market position of
SAPUWA products, with special attention driven on analyzing and assessing the impacts
to the company’s business performance of different business factors of both internal and
external environments, from which, to define the company’s strengths weaknesses,
opportunities and threats. Further, basing on findings, the Group One will form a set of
business strategies for SAPUWA for the period of 2013 – 2018 with solutions proposed
to efficiently implement those business strategies discussed to assure the highest
business performance of the company.
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 2 of 73
3. Research areas
Geographical areas of the research: the research is focused to the market of
bottled mineral and drinking water in Ho Chi Minh City areas, and is within the
boundary of studying the operation of SAPUWA in Ho Chi Minh City.
Time span of the research: historical and projection data employed in this research
is for the period of 2010 – 2018.
4. Research methodology and data source
4.1 Research method
There are some research methods such as synthesis, analysis methods the amounts
of Sapuwa in the past and present as well as comparison targets, business performance
metrics of Sapuwa with other competitors in bottled mineral and drinking water industry.
In addition, research also consults of experts Sapuwa on the assessment and
classification scores of attractions in the process of analyzing matrix QSPM.
4.2 Data source
Information collected is of primary and secondary sources.
Primary information: collected from site surveys on pricings, brandings,
packaging designs, presentations, qualities of products on circulation at supermarkets,
retailer shops, distribution agencies and so forth in Ho Chi Minh City and Ha Noi. Our
survey team also conducted direct interviews with 400 consumers in HCMC and Ha Noi
( HCMC: 250 people, Ha noi: 150 people) with a set of designed questionnaire to
evaluate consumers’ perception, preferences, tastes, consuming and buying habits in
conditions of today’s life and in the future. Data collected are screened, adjusted, filtered
and treated on SPSS to support our analysis.
Secondary information: in our research, we also employed data of various official
secondary sources from Statistic Bureau, Tourist Board, Ministry of Planning and
Investment, Vietnam Alcohol and Beverage Corporation, survey data and reports of
market research agencies and consultants, reports, presentations and data of site surveys
by other companies in the industry, and other sources in the internet.Business strategy formation for SaiGon purified water limited company for 2013 - 2018
page 3 of 73
5. The aims of the research
The aims of the research are essentially practical in assisting SAPUWA an
overview for its growth path in the future (period of 2013 – 2018), an understanding on
market information precisely, which allow the company to take and maximize
opportunities when they come, while minimize the risks exposed, to gain the best
performance. On another hand, the research results are also helpful reference resources
for other businesses operating in the industry of bottled mineral and drinking water
having their products sold in the areas of Ho Chi Minh City in defining their business
strategies.
6. Structure of the research
Other than the Forewords, Reference, Appendixes, the research is composed into
three chapters as detailed below:
CHAPTER 1: THEORIES ON BUSINESS STRATEGIES FORMATION.
CHAPTER 2: ANALYSIS AND ASSESSMENT BUSINESS PERFORMANCE AND
ENVIRONMENT OF SAIGON PURIFIED WATER CO., LTD.
(SAPUWA)
CHAPTER 3: BUSINESS STRATEGIES FORMATION FOR SAIGON PURIFIED
WATER CO., LTD. TILL 2018
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 4 of 73
CHAPTER 1
THEORIES ON BUSINESS STRATEGIES FORMATION
1.1. Definition of a strategy
A strategy is a general action plan to reach a particular goal. When addressing a
strategy of an organization, we think about how the organization defines goals, how to
reach the goals, and how to assure resources to reach these goals.
Alfred Chandler's definition: "determination of the basic long-term goals and
objectives of an enterprise, and the adoption of courses of action and the allocation of
resources necessary for carrying out these goals."
Ferd R, David stated in “Strategy management concept”: a strategy is a set of
means to reach long-term goals. Business strategies may include geographical expansion,
diversification of operation, ownership, product development, market penetration, cost
cutting, liquidation and joint venture.
A strategy may be seen as a set of goals, plans and policies in order to achieve the
goals, and explaining a business is conducting what business activities, and a business is
or will be in operation in what industry of sector.
1.2. Roles of a strategy
Roles in planning: a business strategy helps a business to define goals and
courses of actions to reach the goals. It shows to a business management to consider and
define a path on which the business will follow and when the goals are reached with
expected results.
Roles in forecasting: in a continuous changing environment, there come always
opportunities and threats. Strategy planning helps management in analyzing the business
environment and forecasting and setting appropriate actions. Therefore, management can
better seize opportunities and minimize risks exposed in a particular environment.
Roles in controlling: a business strategy helps management utilize and allocate
resources available in the best match, as well as synchronize efficiently functional areas
within the organization with the aim to reach the set goals.Business strategy formation for SaiGon purified water limited company for 2013 - 2018
page 5 of 73
1.3. Classification of strategy
1.3.1. Classification by management involvement
By the management involvement, strategies are classified into three groups as follow:
Corporate strategies: are strategies clearly define goals and targets of a company,
business activities for which a company strive, make policies and basic plans to reach the
goals, allocate resources among different business functional areas. Corporate strategies
are applied for the entire business.
Business strategies: are strategies that are formed to define what products or what
market segments for a business operation within a company. In business strategies,
specific plans are defined for each business unit upon completion of which, the unit
contributes to completion of company overall goals.
Functional area strategies: competitive advantages come from capability in
reaching an outstanding efficiency, quality, innovation, and responsibility to customers.
Functional area strategies have focus on roles and ways to improve efficiency of each
operational unit within a company, such as marketing, raw material management,
product development, production management, customer service.
On the strong move of globalization, competition has become fiercer. On another
hand, to cope with two sources of pressure on competition and cost reduction while
maintain market expansion, more and more companies want to enter into international
market competition, which bring the level 4th strategies: global strategies.
To enter and compete in a global environment, companies can employ four basic
strategies as following:
- Multidomestic strategies,
- International strategies,
- Global strategies,
- Transnational strategies.
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 6 of 73
1.3.2. Strategies classification on functions
Integration strategies group:
- Forward integration,
- Backward integration,
- Horizontal integration.
Depth penetration strategies group:
- Market Penetration,
- Market Development,
- Product Development.
Operational diversification strategies group:
- Concentric diversification,
- Horizontal diversification,
- Conglomerate diversification.
Other strategies group:
- Joint Venture,
- Retrenchment,
- Divestiture,
- Liquidation,
- Mixed strategies.
1.4. Strategies management process
Strategies management process includes three main closely related and
complementing stages:
Strategy planning stage: is the first stage forming the foundation and playing an
important role in overall strategy management process. It is necessary to define vision,
mission statement and strategic goals of the organization in this stage. At this stage, business
strategies, industries in which a company does business and so forth are clearly defined. At
this stage, company focuses on analyzing factors of internal and external environments,
precisely defines opportunities, threats, strengths, and weaknesses, which all Giúp to form
appropriate strategies. Strategy formation stage is composed of three basic activities:
conducting studies, combining observation and analysis, and decision making.Business strategy formation for SaiGon purified water limited company for 2013 - 2018
page 7 of 73
Strategy implementing stage: is the stage in which strategy is transformed into actions
to achieve defined goals. This stage is important in overall strategy management process,
because if a strategy is finely and scientifically defined in the first stage will become
nonsense if it is not appropriately implemented. This stage requires mobilizing all the
company resources to implement the defined strategies. Strategy implementing stage is
composed of three basic activities: annual target setting; policy making; and resources
allocating.
Strategy assessing stage: is the final stage of the strategy management process. The
stage include activities such as results evaluation, results monitoring, solutions sought to
adjust defined strategy to changing environment. Monitoring strategy implementation in
every stage, timely reviewing of appropriateness of the strategy to adjust to condition faced,
or predicting events that may arise having influence on the implementation of the strategy,
which Giúp a company to adjust its planning in the future to seize opportunities, cope with
challenges, or event turn challenges into opportunities. Monitoring works are carried
regularly, continuously, which include activities as follow: monitoring factors which cores
for the current strategy; measuring achievements; conducting adjustments.
Allocation of
resources
Redetermining the
business target
Analysis of internal
factor. Identifying
strengths,
weaknesses
Selection of
strategies to
be performed Bringing
forward the
policies
Table 1-1: Model of global strategic management
From: Fred F.David, Concepts of Strategy, p.27
Strategy planning Strategy performance evaluation
Determi-ning
the vision,
the mission,
the strategic
target
Analysis of external
factors,
determination of
opportunities & risks
Measurement and
evaluation of
the strategic
performance
Long term
target setting
up
Annual target
setting up
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 8 of 73
1.5. Business strategy formation methodology
1.5.1 Vision, mission, strategic goals of a company
The first step of a strategy management process is to define mission and strategic
goals of an organization. Mission and strategic goals of an organization form the
circumstance in which strategies are formulated.
A mission states “the reasons for being” of an organization, and tells what the
organization is doing. For instance, mission statement of national airlines is “able to meet
high-speed transportation demand of passengers at reasonable prices.”
Strategic goals are to specify what an organization expects to do in middle to long
term. Most organizations specify missions for profit, outstanding capability to gain the first
leading place. Other secondary missions are stated to express what a company consider
necessary to be outstanding.
1.5.2. External environment analysis
External environment includes macro and micro environments.
1.5.2.1. Macro environment – pest (or also so called general environment)
Economic factors: having direct influence on the potential attractiveness of different
strategies are different. Influential economic factors include economic growth, inflation,
economic cycles, banking interest movements, stock price fluctuation, foreign exchange,
taxation and so forth.
Political and legal factors: having increasing influence on a business operation. In the
legal aspect, factors such as political trend, policies, laws and regulations, remunerations,
administrative procedures, administrative institutions. In some countries, it is necessary to
consider the political stability and or sustainability of the government. Laws, regulations,
and state administrative institutions together with pressuring forces are having influence on
a business operation.
Social and cultural factors: a business has to have a thorough analysis of social
factors to define its potential opportunities. Some of social factors to consider include roles
of women in the society, anthropological and demographic matters, population changes, life
style, moral values, traditions, habits, local practice, education background and so forth.
Changes in geographic, demographic, cultural and social conditions are having significant
influence to almost all decisions on products, services, market segments, and consumers of a
business.Business strategy formation for SaiGon purified water limited company for 2013 - 2018
page 9 of 73
Demographic factors: The size of population influences significantly to almost all
products, services, market size, and consumers. Those businesses with many years in the
market are experienced in incorporating impacts of the surrounding natural condition
into their decision making process. The major factors include the size of population, age
structure, geographic location, ethnic diversification, income disparity, pollution, energy
shortage, wasteful exploration of natural resources, and increasing need of natural
resources.
Technology factors: to a business, technology factors such as R&D, patency,
automation trend, technology transfer… are both opportunities and challenges, and these
factors have to have adequate consideration when formulating a strategy. The sooner a
technology is developed, the shorter a product life. New technologies bring in life new
technological process which allows significant cost cutting in production cost. With the
pace of technology development, new technology is more competitive than those
currently available.
Globalization factors: globalization, economic integration, and economic
liberation are today’s matters of the world economy. Laws and regulations of European
Union, the World Bank, the World Trade Organization (WTO), regional and
international free trade agreements, world summits on economic issues … enhanced
cross dependency of nations in the world, and global common markets are formed,
which require common sets of standards of quality, environmental pollution, monopoly
limitation laws, laws on dumping price …Strategy makers are required to consider to
maximize the benefits of globalization and world economic integration, while at the
same time mitigate the risks of international market, which is fiercer competition with
foreign competitors, whose products are more price and quality competitive.
1.5.2.2. Micro environment analysis (or so called industry environment/competition
with an industry)
In the theory of 5 competitive forces by Michael Porter
Michael Porter (Harvard Business School) proposed the theory of 5 competitive
forces within an industry as follow:
3.4.2 Recommendation for SAPUWA
To survive and develop in the present fierce competitive environment, SAPUWA
needs to pay special attention to marketing activities, setting up a separate marketing
department, formulating appropriate, proper and effective business strategies, based on
internal resources and the market reality:
Expanding markets, strengthening and maintaining the current markets by
expanding the distribution system to the potential markets and strengthen the
management of distribution channels.
Supporting sales activities through advertising programs; sales promotion
policies; public relations; services before and after sales, reasonable discount policies for
each group of customers, each specific market.
Training marketing staffs, who have the ability to seize market opportunities, the
ability to coordinate, inspect and evaluate marketing activities and marketing skills to
coordinate the skills quickly and effectively. In addition, businesses also need to train
technical staff to enable them to acquire, to learn the techniques, advanced technologies
in the world to continuously consolidate and develop their professional skills in the
industry of mineral water and bottled water.
SUMMARY OF CHAPTER 3
On orienting the development strategies of the MW – BW industry in Vietnam till
2020, analyzing the inside and outside elements, the papers has determined the missions,
goals of Sapuwa to the 2018; through the analysis of the SWOT matrix, QSPM, Sapuwa
has full capacity for the construction and selection of the most effective business strategy
that is Market Development Strategy and Forward Integration Strategy. At the same
time, besides that, group 1 also proposes a number of effective measures to implement
the strategies set out effectively.
However, to make the strategies successful, it does not only require the best
endeavor of Sapuwa but there need to be a lot of support from the government and other
agencies in the beverage industry in Vietnam. Therefore, Group 1 also proposes a
number of recommendations to the government in order to create a favorable operating
environment for Sapuwa in particular and enterprises producing MW-BW in general.
Do Drive thay đổi chính sách, nên một số link cũ yêu cầu duyệt download. các bạn chỉ cần làm theo hướng dẫn.
Password giải nén nếu cần: ket-noi.com | Bấm trực tiếp vào Link để tải:
Nhà xuất bản: Trung tâm Công nghệ Đào tạo và Hệ thống việc làm
Ngày: 2013
Chủ đề: Chiến lược kinh doanh
Nước tinh khiết
Giai đoạn 2013 – 2018
Miêu tả: Electronic Resources
Luận văn ThS. Quản trị kinh doanh – Trung tâm Công nghệ Đào tạo và Hệ thống việc làm. Đại học Quốc gia Hà Nội, 2013
TABLE OF CONTENT
INTRODUCTION .........................................................................................................................1
1.The purpose of the research......................................................................................................1
2. The targets of the research.......................................................................................................1
3. Research areas .........................................................................................................................2
4. Research methodology and data source.................................................................................2
4.1 Research method ................................................................................................................2
4.2 Data source.........................................................................................................................2
5. The aims of the research ..........................................................................................................3
6. Structure of the research ..........................................................................................................3
CHAPTER 1: THEORIES ON BUSINESS STRATEGIES FORMATION ...........................4
1.1. Definition of a strategy .........................................................................................................4
1.2. Roles of a strategy ................................................................................................................4
1.3. Classification of strategy ......................................................................................................5
1.3.1. Classification by management involvement ....................................................................5
1.3.2. Strategies classification on functions...............................................................................6
1.4. Strategies management process ............................................................................................6
1.5. Business strategy formation methodology............................................................................8
1.5.1 Vision, mission, strategic goals of a company ..................................................................8
1.5.2. External environment analysis ........................................................................................8
1.5.3. Internal environment.....................................................................................................11
1.5.3.1 Human resource.....................................................................................................11
1.5.3.2 Financial ability.....................................................................................................11
1.5.3.3 Marketing and selling operations ..........................................................................12
1.5.3.4. Management activities..........................................................................................12
1.5.3.5. Technology:..........................................................................................................13
1.6. Toolkit for strategy formulation .........................................................................................13
1.6.1. External factor evaluation matrix (EFE Matrix).............................................................13
1.6.2. Internal factor evaluation matrix (IFE Matrix)...............................................................14
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
1.6.3. Competitive picture matrix (CPM)................................................................................14
1.6.4. SWOT matrix ...............................................................................................................15
1.6.5. QSPhần mềm (Quantitative Strategic Planning Matrix)............................................................16
SUMMARY OF CHAPTER 1....................................................................................................18
CHAPTER 2: ANALYSIS AND ASSESSMENT BUSINESS PERFORMANCE AND
ENVIRONMENT OF SAIGON PURIFIED WATER CO., LTD. (SAPUWA) ....................19
2.1 Background Information of SAIGON PURE WATER Ltd. Company (SAPUWA) .....19
2.1.1 History and Development ..............................................................................................19
2.1.2 Business Philosophy of SAPUWA: 4 “Cleans”..............................................................20
2.1.3 Slogan of SAPUWA : “The Endless Purity” ...............................................................20
2.1.4 Organization of SAPUWA ............................................................................................20
2.1.5 Market and Market Share of SAPUWA .........................................................................22
2.1.5.1 Market ...................................................................................................................22
2.1.5.2 Market Share .........................................................................................................22
2.1.6 Business Results of SAPUWA in 3 years (2010-2012)...................................................22
2.2 Environmental Factors Affected SAPUWA’s Business Operation.....................................24
2.2.1 Analysis of External Environment .................................................................................24
2.2.1.1 Macro Environment...............................................................................................24
2.2.1.2 Micro Environment ...............................................................................................26
2.2.1.3 External Factor Evaluation Matrix ........................................................................28
2.2.1.4. Competitive Profile Matrix (CPM) ......................................................................30
2.2.2 Analysis of Internal Environment...................................................................................31
2.2.2.1 Structure, Organization Chart and Management Board of SAPUWA..................31
2.2.2.2 Human Resources..................................................................................................31
2.2.2.3 Financial Capacity.................................................................................................31
2.2.2.4. Workshop, Machinery and Technology ...............................................................38
2.2.2.5. Manufacturing Process of SAPUWA’s Bottled Water (Appendix VI)................39
2.2.2.6. Information System ..............................................................................................39
2.2.2.7. Intellectual Property and Copyright .....................................................................39Business strategy formation for SaiGon purified water limited company for 2013 - 2018
2.2.2.8. Possibility in Research and Product Development...............................................39
2.2.2.9 Marketing ..............................................................................................................39
2.2.2.10. Internal Factor Evaluation Matrix (IFE).............................................................49
2.2.3 SWOT of SAPUWA.....................................................................................................51
SUMMARY OF CHAPTER 2....................................................................................................52
CHAPTER 3: BUSINESS STRATEGIC PLAN FOR SAIGON PURIFED WATER Ltd.
COMPANY BY 2018...................................................................................................................53
3.1 Mission, Orientation and Development Objectives of SAPUWA by 2018.........................53
3.1.1 Mission..........................................................................................................................53
3.1.2 Orientation.....................................................................................................................53
3.1.3 The developmental goals of Sapuwa by 2018.................................................................54
3.2 Formulating and Selecting Business Strategies For SAPUWA by 2018 ............................55
3.2.1 Formulating Strategies For SWOT Matrix Analysis.......................................................55
3.2.2 Selecting Strategies via QSPhần mềm matrix............................................................................60
3.3 Recommendation of Business Strategy For SAPUWA by 2018.........................................65
3.3.1 Solutions for Finance and Accounting............................................................................65
3.3.2 Solutions for Management.............................................................................................65
3.3.3 Solutions for Human Resource.......................................................................................65
3.3.5 Solutions for Organization .............................................................................................66
3.3.5.1 Mission of Marketing Division .............................................................................66
3.3.5.2 Mission of Marketing Division’s Departments .....................................................67
3.3.6 Solutions for Market and Market Research Organization ...............................................68
3.3.6.1 Solutions for Marketing.........................................................................................68
3.3.6.2 Market Research Organization..............................................................................68
3.3.7. Building, Consolidating and Developing Customers Relationship .................................69
3.3.8. Completing Customers’ Complaint-Taking Service ......................................................70
3.4. Recommendations...............................................................................................................70
3.4.1 Recommendation for Government .................................................................................70
3.4.2 Recommendation for SAPUWA....................................................................................71
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
SUMMARY OF CHAPTER 3....................................................................................................71
CONCLUSION............................................................................................................................72
REFERENCES ............................................................................................................................73
LIST OF APPENDIX.....................................................................................................................iBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
LIST OF TABLE AND FIGURE
Table 1-1 : Model of global strategic management
Table 1-2 : 5 Forces of M.Porter
Table 1-3 : External Environment Matrix – EFE
Table 1-4 : Infernal Environment Matrix – IFE
Table 1-5 : CPhần mềm matrix
Table 1-6 : SWOT matrix
Table 1-7 : QSPhần mềm matrix
Table 2.1 : Financial annual report of SAPUWA from 2010 to 2012
Table 2.2 : Customers Development through the years (2008 – 2012)
Table 2.3 : External Factors Evaluation Matrix
Table 2.4 : Competitive Profile Matrix
Table 2.5 : Basic Financial Targets in the last 3 years (2010-2012)
Table 2.6 : Financial targets
Table 2.7 : Product Parttern of Consumption in 2010 - 2012
Table 2.8 : SAPUWA’s Price List
Table 2.9 : Price List of Accompanying Products
Table 2.10 : EX Works (EXW) of same products of competitors
Table 2.11 : Distributing Channels of SAPUWA
Table 2.12 : Internal Factor Evaluation Matrix.
Table 2.13 : SWOT Analysis of SAPUWA
Table 3.1 : The SWOT Matrix of SAPUWA
Table 3.2 : QSPhần mềm Matrix for the group S-O
Table 3.3 : The QSPhần mềm Matrix for the group S-T
Table 3.4 : The Marketing Division
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
ABBREVIATION LIST
Ltd. : Limited
EPI : Earth Policy Institute
GDP : Gross Domestic Product
Sol : Solution
Gal. : Gallon
PQC : Product Quality Control
L. : Litter
MW : Mineral Water
BW : Bottled Water
M-BW : Mineral and Bottled Water
CMW : Carbonated Mineral Water
NCMW : Non-Carbonated Mineral Water
PC : Polycarbonate
PET : Polyethylene Terephthalate
WBS : Wine, Beer and Soft Drink
HCMC : Ho Chi Minh City
VS : Vietnamese Standards
USD : United State Dollar
VND : Vietnam Dong
FHS : Food Hygiene and Safety
WTO : World Trade OrganizationBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 1 of 73
INTRODUCTION
1.The purpose of the research
Vietnam market of bottled mineral and drinking water has enjoyed exciting
growth, with average annual growth of 26%, and stood at 22% of the total beverage
market. The attractiveness of the market has drawn interest and participation of various
economic forces, both domestic and international, which drove the market to a fiercer
competition. (Source: AC Nielsen)
Being one of the leaders in Vietnam bottled drinking water industry, Saigon Purified
Water Company Limited (SAPUWA) has been a major player in the Vietnam market for
bottled mineral and drinking water since 1992, and has gained various significant
encouraging achievements. However, as the market has turned to be very fierce competitive
environment, and as a response to the strong move of global integration, SAPUWA is forced
to face the business environment with continuous changing, more sophisticated with more
unforeseen risk factors. In response to the escalating competitive pressure, in order to sustain
and grow, Vietnam businesses in general and Saigon Purified Water Company Limited
(SAPUWA) in particular are required to form their own suitable, appropriate and efficient
business strategies.
As required by the need found from the current market situation, and with the
desire to contribute to the development of a business in the bottled mineral and drinking
water industry, the Group One selected to conduct a research on the theme: “Business
Strategy Formation for Saigon Purified Water Company Limited (Sapuwa) for the
period 2013 to 2018”.
2. The targets of the research
The primary targets of this research include to figure out the market position of
SAPUWA products, with special attention driven on analyzing and assessing the impacts
to the company’s business performance of different business factors of both internal and
external environments, from which, to define the company’s strengths weaknesses,
opportunities and threats. Further, basing on findings, the Group One will form a set of
business strategies for SAPUWA for the period of 2013 – 2018 with solutions proposed
to efficiently implement those business strategies discussed to assure the highest
business performance of the company.
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 2 of 73
3. Research areas
Geographical areas of the research: the research is focused to the market of
bottled mineral and drinking water in Ho Chi Minh City areas, and is within the
boundary of studying the operation of SAPUWA in Ho Chi Minh City.
Time span of the research: historical and projection data employed in this research
is for the period of 2010 – 2018.
4. Research methodology and data source
4.1 Research method
There are some research methods such as synthesis, analysis methods the amounts
of Sapuwa in the past and present as well as comparison targets, business performance
metrics of Sapuwa with other competitors in bottled mineral and drinking water industry.
In addition, research also consults of experts Sapuwa on the assessment and
classification scores of attractions in the process of analyzing matrix QSPM.
4.2 Data source
Information collected is of primary and secondary sources.
Primary information: collected from site surveys on pricings, brandings,
packaging designs, presentations, qualities of products on circulation at supermarkets,
retailer shops, distribution agencies and so forth in Ho Chi Minh City and Ha Noi. Our
survey team also conducted direct interviews with 400 consumers in HCMC and Ha Noi
( HCMC: 250 people, Ha noi: 150 people) with a set of designed questionnaire to
evaluate consumers’ perception, preferences, tastes, consuming and buying habits in
conditions of today’s life and in the future. Data collected are screened, adjusted, filtered
and treated on SPSS to support our analysis.
Secondary information: in our research, we also employed data of various official
secondary sources from Statistic Bureau, Tourist Board, Ministry of Planning and
Investment, Vietnam Alcohol and Beverage Corporation, survey data and reports of
market research agencies and consultants, reports, presentations and data of site surveys
by other companies in the industry, and other sources in the internet.Business strategy formation for SaiGon purified water limited company for 2013 - 2018
page 3 of 73
5. The aims of the research
The aims of the research are essentially practical in assisting SAPUWA an
overview for its growth path in the future (period of 2013 – 2018), an understanding on
market information precisely, which allow the company to take and maximize
opportunities when they come, while minimize the risks exposed, to gain the best
performance. On another hand, the research results are also helpful reference resources
for other businesses operating in the industry of bottled mineral and drinking water
having their products sold in the areas of Ho Chi Minh City in defining their business
strategies.
6. Structure of the research
Other than the Forewords, Reference, Appendixes, the research is composed into
three chapters as detailed below:
CHAPTER 1: THEORIES ON BUSINESS STRATEGIES FORMATION.
CHAPTER 2: ANALYSIS AND ASSESSMENT BUSINESS PERFORMANCE AND
ENVIRONMENT OF SAIGON PURIFIED WATER CO., LTD.
(SAPUWA)
CHAPTER 3: BUSINESS STRATEGIES FORMATION FOR SAIGON PURIFIED
WATER CO., LTD. TILL 2018
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 4 of 73
CHAPTER 1
THEORIES ON BUSINESS STRATEGIES FORMATION
1.1. Definition of a strategy
A strategy is a general action plan to reach a particular goal. When addressing a
strategy of an organization, we think about how the organization defines goals, how to
reach the goals, and how to assure resources to reach these goals.
Alfred Chandler's definition: "determination of the basic long-term goals and
objectives of an enterprise, and the adoption of courses of action and the allocation of
resources necessary for carrying out these goals."
Ferd R, David stated in “Strategy management concept”: a strategy is a set of
means to reach long-term goals. Business strategies may include geographical expansion,
diversification of operation, ownership, product development, market penetration, cost
cutting, liquidation and joint venture.
A strategy may be seen as a set of goals, plans and policies in order to achieve the
goals, and explaining a business is conducting what business activities, and a business is
or will be in operation in what industry of sector.
1.2. Roles of a strategy
Roles in planning: a business strategy helps a business to define goals and
courses of actions to reach the goals. It shows to a business management to consider and
define a path on which the business will follow and when the goals are reached with
expected results.
Roles in forecasting: in a continuous changing environment, there come always
opportunities and threats. Strategy planning helps management in analyzing the business
environment and forecasting and setting appropriate actions. Therefore, management can
better seize opportunities and minimize risks exposed in a particular environment.
Roles in controlling: a business strategy helps management utilize and allocate
resources available in the best match, as well as synchronize efficiently functional areas
within the organization with the aim to reach the set goals.Business strategy formation for SaiGon purified water limited company for 2013 - 2018
page 5 of 73
1.3. Classification of strategy
1.3.1. Classification by management involvement
By the management involvement, strategies are classified into three groups as follow:
Corporate strategies: are strategies clearly define goals and targets of a company,
business activities for which a company strive, make policies and basic plans to reach the
goals, allocate resources among different business functional areas. Corporate strategies
are applied for the entire business.
Business strategies: are strategies that are formed to define what products or what
market segments for a business operation within a company. In business strategies,
specific plans are defined for each business unit upon completion of which, the unit
contributes to completion of company overall goals.
Functional area strategies: competitive advantages come from capability in
reaching an outstanding efficiency, quality, innovation, and responsibility to customers.
Functional area strategies have focus on roles and ways to improve efficiency of each
operational unit within a company, such as marketing, raw material management,
product development, production management, customer service.
On the strong move of globalization, competition has become fiercer. On another
hand, to cope with two sources of pressure on competition and cost reduction while
maintain market expansion, more and more companies want to enter into international
market competition, which bring the level 4th strategies: global strategies.
To enter and compete in a global environment, companies can employ four basic
strategies as following:
- Multidomestic strategies,
- International strategies,
- Global strategies,
- Transnational strategies.
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 6 of 73
1.3.2. Strategies classification on functions
Integration strategies group:
- Forward integration,
- Backward integration,
- Horizontal integration.
Depth penetration strategies group:
- Market Penetration,
- Market Development,
- Product Development.
Operational diversification strategies group:
- Concentric diversification,
- Horizontal diversification,
- Conglomerate diversification.
Other strategies group:
- Joint Venture,
- Retrenchment,
- Divestiture,
- Liquidation,
- Mixed strategies.
1.4. Strategies management process
Strategies management process includes three main closely related and
complementing stages:
Strategy planning stage: is the first stage forming the foundation and playing an
important role in overall strategy management process. It is necessary to define vision,
mission statement and strategic goals of the organization in this stage. At this stage, business
strategies, industries in which a company does business and so forth are clearly defined. At
this stage, company focuses on analyzing factors of internal and external environments,
precisely defines opportunities, threats, strengths, and weaknesses, which all Giúp to form
appropriate strategies. Strategy formation stage is composed of three basic activities:
conducting studies, combining observation and analysis, and decision making.Business strategy formation for SaiGon purified water limited company for 2013 - 2018
page 7 of 73
Strategy implementing stage: is the stage in which strategy is transformed into actions
to achieve defined goals. This stage is important in overall strategy management process,
because if a strategy is finely and scientifically defined in the first stage will become
nonsense if it is not appropriately implemented. This stage requires mobilizing all the
company resources to implement the defined strategies. Strategy implementing stage is
composed of three basic activities: annual target setting; policy making; and resources
allocating.
Strategy assessing stage: is the final stage of the strategy management process. The
stage include activities such as results evaluation, results monitoring, solutions sought to
adjust defined strategy to changing environment. Monitoring strategy implementation in
every stage, timely reviewing of appropriateness of the strategy to adjust to condition faced,
or predicting events that may arise having influence on the implementation of the strategy,
which Giúp a company to adjust its planning in the future to seize opportunities, cope with
challenges, or event turn challenges into opportunities. Monitoring works are carried
regularly, continuously, which include activities as follow: monitoring factors which cores
for the current strategy; measuring achievements; conducting adjustments.
Allocation of
resources
Redetermining the
business target
Analysis of internal
factor. Identifying
strengths,
weaknesses
Selection of
strategies to
be performed Bringing
forward the
policies
Table 1-1: Model of global strategic management
From: Fred F.David, Concepts of Strategy, p.27
Strategy planning Strategy performance evaluation
Determi-ning
the vision,
the mission,
the strategic
target
Analysis of external
factors,
determination of
opportunities & risks
Measurement and
evaluation of
the strategic
performance
Long term
target setting
up
Annual target
setting up
Ket-noi.com kho tai lieu mien phi Ket-noi.com kho tai lieu mien phiBusiness strategy formation for SaiGon purified water limited company for 2013 - 2018
page 8 of 73
1.5. Business strategy formation methodology
1.5.1 Vision, mission, strategic goals of a company
The first step of a strategy management process is to define mission and strategic
goals of an organization. Mission and strategic goals of an organization form the
circumstance in which strategies are formulated.
A mission states “the reasons for being” of an organization, and tells what the
organization is doing. For instance, mission statement of national airlines is “able to meet
high-speed transportation demand of passengers at reasonable prices.”
Strategic goals are to specify what an organization expects to do in middle to long
term. Most organizations specify missions for profit, outstanding capability to gain the first
leading place. Other secondary missions are stated to express what a company consider
necessary to be outstanding.
1.5.2. External environment analysis
External environment includes macro and micro environments.
1.5.2.1. Macro environment – pest (or also so called general environment)
Economic factors: having direct influence on the potential attractiveness of different
strategies are different. Influential economic factors include economic growth, inflation,
economic cycles, banking interest movements, stock price fluctuation, foreign exchange,
taxation and so forth.
Political and legal factors: having increasing influence on a business operation. In the
legal aspect, factors such as political trend, policies, laws and regulations, remunerations,
administrative procedures, administrative institutions. In some countries, it is necessary to
consider the political stability and or sustainability of the government. Laws, regulations,
and state administrative institutions together with pressuring forces are having influence on
a business operation.
Social and cultural factors: a business has to have a thorough analysis of social
factors to define its potential opportunities. Some of social factors to consider include roles
of women in the society, anthropological and demographic matters, population changes, life
style, moral values, traditions, habits, local practice, education background and so forth.
Changes in geographic, demographic, cultural and social conditions are having significant
influence to almost all decisions on products, services, market segments, and consumers of a
business.Business strategy formation for SaiGon purified water limited company for 2013 - 2018
page 9 of 73
Demographic factors: The size of population influences significantly to almost all
products, services, market size, and consumers. Those businesses with many years in the
market are experienced in incorporating impacts of the surrounding natural condition
into their decision making process. The major factors include the size of population, age
structure, geographic location, ethnic diversification, income disparity, pollution, energy
shortage, wasteful exploration of natural resources, and increasing need of natural
resources.
Technology factors: to a business, technology factors such as R&D, patency,
automation trend, technology transfer… are both opportunities and challenges, and these
factors have to have adequate consideration when formulating a strategy. The sooner a
technology is developed, the shorter a product life. New technologies bring in life new
technological process which allows significant cost cutting in production cost. With the
pace of technology development, new technology is more competitive than those
currently available.
Globalization factors: globalization, economic integration, and economic
liberation are today’s matters of the world economy. Laws and regulations of European
Union, the World Bank, the World Trade Organization (WTO), regional and
international free trade agreements, world summits on economic issues … enhanced
cross dependency of nations in the world, and global common markets are formed,
which require common sets of standards of quality, environmental pollution, monopoly
limitation laws, laws on dumping price …Strategy makers are required to consider to
maximize the benefits of globalization and world economic integration, while at the
same time mitigate the risks of international market, which is fiercer competition with
foreign competitors, whose products are more price and quality competitive.
1.5.2.2. Micro environment analysis (or so called industry environment/competition
with an industry)
In the theory of 5 competitive forces by Michael Porter
Michael Porter (Harvard Business School) proposed the theory of 5 competitive
forces within an industry as follow:
3.4.2 Recommendation for SAPUWA
To survive and develop in the present fierce competitive environment, SAPUWA
needs to pay special attention to marketing activities, setting up a separate marketing
department, formulating appropriate, proper and effective business strategies, based on
internal resources and the market reality:
Expanding markets, strengthening and maintaining the current markets by
expanding the distribution system to the potential markets and strengthen the
management of distribution channels.
Supporting sales activities through advertising programs; sales promotion
policies; public relations; services before and after sales, reasonable discount policies for
each group of customers, each specific market.
Training marketing staffs, who have the ability to seize market opportunities, the
ability to coordinate, inspect and evaluate marketing activities and marketing skills to
coordinate the skills quickly and effectively. In addition, businesses also need to train
technical staff to enable them to acquire, to learn the techniques, advanced technologies
in the world to continuously consolidate and develop their professional skills in the
industry of mineral water and bottled water.
SUMMARY OF CHAPTER 3
On orienting the development strategies of the MW – BW industry in Vietnam till
2020, analyzing the inside and outside elements, the papers has determined the missions,
goals of Sapuwa to the 2018; through the analysis of the SWOT matrix, QSPM, Sapuwa
has full capacity for the construction and selection of the most effective business strategy
that is Market Development Strategy and Forward Integration Strategy. At the same
time, besides that, group 1 also proposes a number of effective measures to implement
the strategies set out effectively.
However, to make the strategies successful, it does not only require the best
endeavor of Sapuwa but there need to be a lot of support from the government and other
agencies in the beverage industry in Vietnam. Therefore, Group 1 also proposes a
number of recommendations to the government in order to create a favorable operating
environment for Sapuwa in particular and enterprises producing MW-BW in general.
Do Drive thay đổi chính sách, nên một số link cũ yêu cầu duyệt download. các bạn chỉ cần làm theo hướng dẫn.
Password giải nén nếu cần: ket-noi.com | Bấm trực tiếp vào Link để tải:
You must be registered for see links
Last edited by a moderator: