CAPSTONE PROJECT REPORT BUILDING AND CHOOSING OF STRATEGIES FOR TAY HA POLYTECHNIC COLLEGE (2009 - 2015) BÁO CÁO DỰ ÁN CAPSTONE XÂY DỰNG VÀ LỰA CHỌN CHIẾN LƯỢC CHO TRƯỜNG CAO ĐẲNG BÁCH KHOA TÂY HÀ (2009 - 2015)

CAPSTONE PROJECT REPORT BUILDING AND CHOOSING OF STRATEGIES FOR TAY HA POLYTECHNIC COLLEGE (2009 - 2015) BÁO CÁO DỰ ÁN CAPSTONE XÂY DỰNG VÀ LỰA CHỌN CHIẾN LƯỢC CHO TRƯỜNG CAO ĐẲNG BÁCH KHOA TÂY HÀ (2009 - 2015)

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CAPSTONE PROJECT REPORT

BUILDING AND CHOOSING OF STRATEGIES FOR

TAY HA POLYTECHNIC COLLEGE

(2009 - 2015)

Group No 10

TRAN NGOC OANH DUONG THI HONG NGUYEN MINH TRUNG NGUYEN XUAN SANG

Class : GaMBAO01.MO1

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3 ASEAN The Association of Southeast Asian Nations

4 ASEM The Asia-Europe Meeting

> MOLISA Ministry of Labor, Invalids and Social Affairs

6 GDP Gross Domestic Production

Analysis frame

G: gain R: risk

7 GREAT

E: expense

A: achievable T: time bound

8 UN United Nations

R: research

9 R&D

D: develop Analysis frame “strong points, weak points, opportunities and threats” of enterprises S: strengths

10 SWOT

W: weaknesses O: opportunities

T: Threats

11 WTO World Trade Organization

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I.1 Concepts and requirements of business strategy 1] 1.2 Significant meaning of business strategy 15 1.3.Steps to develop business strategy 15 1.3.1 Identify functions and tasks of the enterprise 16 1.3.2 External environment analysis 18 1.3.3 Internal environment analysis 20 1.4 SWOT matrix and selection of the most advantages strategy 2D 1.4.1 SWOT matrix 29 1.4.2 Selection of optimum strategy 29 1.5 Selection of basic strategic plans in practices 30

CHAP PEW dessa 1 ANYESHOBCT BUSINESS STRATEGY FOR THE | 37

TAY HA POLYTECHNICAL COLLEGE

2.1 Overview about Tay Ha college 37 2.1.1 Introduction about the School 37 2.1.2 Overall characteristics of the services: 37 2.1.3 Foundation and development: 38 2.1.4 Mission: 38

215 Strategic positioning and objectives of Tay Ha Polytechnic College 4]

2.2.1 Macro environment analysis to vocational training 42 2.2.2 Analyzing micro-environment of training and vocational training| 48 trade

2.3 Assessing internal environment — Tay Ha Polytechnic College 65 2.3.1 Finance-Accounting 65 2.3.2 Administrative operations 65 2.3.3 Marketing Activities 70 2.3.4 Situation and results of vocational training activities in past years 72 2.4 Analysis of sustainable competition advantages 73 2.5 Selecting optimal strategies 19 CHAPTER 3: 82 SOLUTION FOR ENFORCING STRATEGIES FOR

TAY HA POLYTECHNIC COLLEGE: 2009 — 2015 PLAN

3.1 General objective 82 3.2 Strategically feasible solutions 83 3.3 Plan for implementing solutions 86 3.3.1 Plan for training and vocational training services 86 3.3.2 Marketing Strategy and job introduction after training 87 3.3.3 Training plan 89

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Table/diagram Name Page

Diagram 2: Steps in planning strategy 16 Diagram 3: Enterprise and other factors affecting enterprise 17 Diagram 4: Five-force analysis of M Porter 19 Diagram 5: Value chain Model of M Porter Zi Diagram 6: Procedure to recognize sustainable competitive 25

advantages

Diagram 7: SWOT analysis 29 Diagram 8: Qualitative matrix according to GREAT 30 Diagram 9: Table on general stragies in the five-forces 31

analysis model of Michael Porter

Hanoi city from 2001 — 2005

from 2007 to 2009 Table 16: Organizational structure of Tay Ha Polytechnic 67

College Table 17: Number of staff, teachers of the College from 67

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Table 18: Table 18: Number of administrators, manager of 68

the College Table 19: Sectors of training from 2007 — 2009 69 Table 20: Number of training and services 72 Table 21: Comparison with other competitors 74 Table 22: Advantages comparison of the College 76 Table 23: SWOT analysis 77 Table 24 Analysis according to GREAT criteria 80 Table 25: Training plan from 2009 to 2015 87

Table 26 Expected profits of Tay Ha Polytechnic College 89

from 2009 to 2015 Table 27 Expected revenues Tay Ha Polytechnic College 90

from 2009 to 2015 Table 28 Demand on infrastructure construction and 91

facilities Table 29 Human resource allocation 91 Table 30 Services expenses from 2009 — 2015 92 Table 31 Overview about administrative and human 95

resources management Table 32 Overview on the relationship in enrollment and 93

training Table 33 Training plan for teachers 2009 — 2015 96 Table 34: Factors to human resources of the College 97 Table 35 Expected revenues, expenses and profits of the 98

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1.1 Name of the capstone project:

BUILDING AND CHOOSING OF STRATEGIES FOR TAY HA POLYTECHNIC COLLEGE, FROM 2009 - 2015

1.2 Objectives, reasons to select the capstone project:

Vocational training is not only the concerns of State and governmental agencies, but also many organizations/ individuals express their attention and invest in the education sector, by building non-state-own schools Therefore, in order to achieve the objectives/ goals, these schools have to develop their own development strategy Tay Ha College of Technology is one model that is operating under non-public model that does not use the state budget; the college has operating by their own revenues and expenditures (as a unit of business), so the college needs a clear business sustainable development strategy However, currently the College does not have its Business Strategy aims at serving all the sustainable development objectives, that consistent with functional mandates and principles and operations of the school

We ourselves are the managers in the field of education and training; it is our responsibilities to participate in the process of developing, selecting and organizing the implementation of business strategy and training services of the College for the period of 2009 — 2015

1.3 Main objective of the study:

- Systematic theoretical basis of business strategy in the field training Study on training model in the world;

- Analysis on the current training situation of the College;

- Develop strategies and solutions for implementing the Strategy of training services

at the College;

1.4 Scope of the study:

RlàhsG8aTHdss9v (be@&ð fJSÍ@lknt situations of the College that based on the background of the macro environment and industry environment in Hanoi, in

Vietnam and in the world Furthermore, during studying and writing on the

capstone project, we conducted a deathly survey as well as make competitive

analysis, and give a wider overview in this business segment

1.5 Methods of the study:

- Method of calculation: Conduct a survey to specialists, officers and deathly

interviews, analyze dates in the macro context, in the actual situation of education and training in the world and in Vietnam, and industry training trends

- Quantitative Methods: Conduct a survey to students and businesses (which receive the services of education and training)

1.6 Dates of the study:

- Using secondary tables of data from different reports, summarizing economic situation and training activities in Vietnam and the Hanoi;

- Using primary data from the direct research;

1.7 Significant objectives of the study:

Firstly, in the context of globalization and open economy market, there is an urgent need to build up its development strategy Furthermore, as special characteristic of the education and training, the College has not yet concentrated in this important field of area, i.e business strategy The capstone project has covered an overview about the school and given recommendations for further development

Secondly, for the education business units, the capstone project can be a meaningful baseline for other organizations’ study and consideration, in order to help different organizations/structures of the specific business education and to give guiding tool for developing strategic business This is especially meaningful to the academy within Hanoi and some provinces near Hanoi by the similarity of the macro environment and industry environment

Thirdly, the capstone project has development a strategic plan of actions for the period 2009 - 2015 which is based on the SWOT analysis and forecasting of the

llQlle&§«)'tlde989EvF%@€ À@1@l@@d with the participation of the school managers and officers, so surely that it can be regarded as a guiding tool for the Schools in the

coming years

1.8 The limitation of the capstone project:

Due to the special range of research, the capstone project has not yet covered characteristics of the training units in the macro environment or other environmental industry

Due to the context of the survey is focusing in the recent years and the development trend in the coming years, the capstone project focuses on develop long-term strategic direction, but not cover a detailed plan of actions unto 2015

1.9 Expected results (Outputs) of the capstone project:

Capstone project is expected to achieve the following results:

- To identify business strategies of the School in the area of training services ;

- To define current activities as well as implement training business strategies and in

the College;

- To develop strategic training business for the College and to offer solutions for implementation and activities plan from 2009 to 2015

1.10 Main contents of the capstone project:

Besides the opening and conclusion, the capstone project includes three chapters: Chapter 1: The theatrical baseline on strategic business in the field of education and training

Chapter 2: Development and selection of business strategies for the College

Chapter 3: Solution to implement the business strategy of the College

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Chapter 1:

The theatrical baseline on strategic business

in the field of education and training

The theoretical issues will be mentioned in Chapter I as a baseline for conducting the analysis in Chapter 2 and Chapter 3 Theoretical issues include: 1 Concepts and requirements of business strategy; 2 Steps to build strategic business; 3 SWOT analysis; 4 Characteristics of vocational training business; 5 The basic business strategy into practice

1.1 Concepts and requirements of business strategy

There are many different definitions of strategy; hereinafter we would like to share

on the following mean:

- "Strategy is the direction and scope of the organization in the long term basic: to bring strategic advantages to organizations with diversified resources in the competitive environment in order to meet demand school and the expectation of the

investors” (Quoted from Business of 3600, "The concept of business strategy",

2008)

- Strategy is the methods by which the long-term goals can be achieved Business strategy strategies can be expanded geographically, diversified products, market penetration, to reduce or waive, or joint venture

The reasons to have different definitions of the strategy as mentioned above are: it

is a broad concept and internal function complex However, strategies can be

identified by only the features and distinguish its strategy with the concept that nearly as tactical

In terms of characteristics, strategies are:

- Target that companies/ enterprises strike to achieve in a long term basic

(directions);

PRE panes Pr SES HAE Compete on which market segment and what types

of business activity should be carried out (market, size);

- Companies will be able to know how to work better than competitors in its market segment (advantage):

- What kinds of resources need to have, including skills, assets, finance,

relationships, technical capacity, equipment;

- Which factors from the external environment affect to the competitiveness of

enterprises (environment);

- The values and expectations that people have the inside and outside the enterprise

needs (investment contribution);

In terms of level, there are strategies in different degrees, any organization in practical, strategies have existed in several different levels, stretching from the entire enterprise (or group of enterprises) for each individual to work in it

Enterprise strategy: Refer to the overall goal and scales of operations aiming at

achieving the investors’ expectation This is a very important level which impact to

the investors’ decisions as well as assist to guide strategic decisions of the companies The business strategy often calls as “mission announcement”

Business strategy: Refer to the areas how an enterprise can compete successful in a specific market segment It relates to the strategic decisions of selecting products that meet to the needs of customers, obtain competitive advantage as well as create new opportunities

Working strategy - related to each operational unit of the business and how to organize and how to implement its strategic direction at the enterprise level and at each operational unit level of the enterprise Therefore, the strategy should focus on how to cooperate resources, process and human resources, etc

In terms of characteristic, it can be divided into types of strategy: functional strategy, competitive strategy, enterprise strategy

l})J)c(/000N/â899 He GeVAER@A direction to improve the performance of each

functional units in the enterprise such as coordination, marketing, material

management, R&D and human resources

Enterprise strategy connects different business strategies that related to the

expectations of the owner With a long-term prospects, strategy of the enterprise should mention and plan following to the development or declining trends of the

enterprise

Strategy and tactics

Tactics is a method to achieve specific purposes Tactics were used in military

tactics; later on it is widely used in other fields such as economics, commerce, role

play, and practice areas such as negotiation, sports In business, people often discuss about tactics, just after finalize the strategy In other words, managers should go from strategic to tactics

Refer to the concept of strategy; the capstone project also mentions a number of

other concepts such as management, analysis, strategy and implementation strategy

And how to manage Strategic Management and Strategy?

In a widen meaning, strategic management is the process of implementing "strategic decisions" In practice, strategic management process consists of three parts, which

can be showed as follows:

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- For the Enterprise

- for the business

Plans and resources Strategy into Organization

allocation +> actions and structures and

Hl3FSigaiox§?SaEalaif££ Òf478401bss strategy

Business strategy development is one of the most important activities of any manager; many companies/ enterprises met difficulties or failure due to lack of proper strategy, or lack of proper implementation Business strategy development will provide value-added and practical benefits to the enterprise:

- To define clear objectives in each stage of the enterprise, helping companies to identify clear directions in the future in order to achieve its targets

- To assist managers to understand external factors like opportunities and threats as well as internal factors like strengths and weaknesses, to predict future changes aiming at finding the solutions to cope with new business environment

- To assist enterprises exploiting and maximizing their resources, power for further development

- To allocate resources periodically in order to improve efficiency of enterprise’s operations

- To increase the collaboration and consensus among managers, staff in

implementing the common goals of the enterprise

- To increase working and production capacity, increase sales and administrative efficiency, reduce risks, problems and difficulties that may happen to the enterprise 1.3.Steps to develop business strategy

Process of developing business strategy can be considered as the process of developing strategic plan, that focus into four main sections with four different

contents, are summarized in the diagram below:

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Identify tasks and responsibilities

1.3.1 Identify functions and tasks of the enterprise

The first step is to identify responsibilities and missions of the enterprise that mention about the role, nature and basic activities of the company

Responsibilities and missions of the enterprise can be known as different definitions that express beliefs, goals, business philosophy and principles of the enterprise Responsibilities and missions of the enterprise is a baseline to set up its business priorities and steps to move ahead A clear code of conduct, business strategy will

be as guiding tools for developing long-term and annual plans

While define responsibilities and missions, we should answer the following questions:

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- What kinds of products and services?

- What market segment that the enterprise operating?

- Whether IT can be the first concern of the enterprise or not?

- Which principles for existence, development and profitability?

- What are basic beliefs, values, encouragement and priorities of the enterprises?

- What are competitive advantages of the enterprises?

- How about the reputation/image of the enterprises in term of social responsibilities?

- What types of attitudes of the enterprise toward its employees?

Base on identifying clear mission of the enterprise, we overview all issues related to business groups and separation issues that we can map out briefly as following:

Diagram 3: Enterprise and other factors affecting the enterprise

The diagram shows that we can separate influenced factors to enterprise into two groups: (1) External environment and (2) internal environment

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External environment are the main factors that can influence to the implementation

of the enterprise’s objectives External environment analysis includes macro- environmental analysis and sector environment (micro-environment) By analyzing these factors, enterprise can identify their position and characteristics of their business environment, set direction of the external environment to the enterprise’s objectives, since then they will have decide their own strategic planning

a Macro business environment analysis

External environment includes overall economic, politics, culture, social factors

exists Therefore, we can separate into groups of factors

* Economical environment

Includes factors that may affect to the enterprise such as GDP, economical growth, income per capita, financial factors like interest rates, exchange rates, inflation rates

* Social — cultural environment

Include social factors, social values transmission, population expansion by regions, the rural and urban proportion, unemployment, consumer trends and savings In this matter, population and labor issues are paid attention, like the population structure and movement, growth and quality

* Political and legal environment

The changes of political environment, legal base will influent to the process of implementing business strategies of the business In fact, when businesses invest in

a national or multinational company, they are interested in the political environment there When analysis on environment, we should pay attention to factors such as economic reform, administrative reform, changes on business sector policies, tax policies, regulations amendment

* Science technology environment: While science technology environment should focus to develop of information technology and its application, new technology development and transfer

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Integration and globalization trends in the world and in Vietnam requests businesses

have to think about international factor while develop their own long-term strategies, that able to integrate and expand its business in term of geographical and politics

* Natural environment:

From now on, businesses have to pay their attention to natural environment The best solutions for environment protection will be an essential factor to develop their business in a long-term and sustainable basic Businesses need to be friendly with environment, adapt to the governmental standard of environmental protection

By analyzing macro environment, we can see and give an overall review and assessment on external factors Analysis and syncapstone project problems from the past and present can predict the future, which helps in planning strategy more feasible, to avoid potential threats, helping enterprises achieve the expectation

b Sector environmental analysis:

Sector environment is a combination of internal problems within the enterprise, including resources such as manpower, financial resources, its objectives, tasks and activities However, the sector environmental mainly affect by the following:

Diagram 4: Five-force analysis of M Porter

Competely intensity

The rish of replacement Replacement

19

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(Source: Nguyen Thanh Thao, "Brand Strategy by Michael Porter theory") The diagram shows the five factors that affect to businesses in the sector environment Having analyzing and assessing each factor that will help us summarize all challenges and opportunities of the business, prospects of development and predict the decreasing trends in order to develop relevant strategy

* Abilities to negotiate of suppliers can be shown in the following characteristics: The concentration of suppliers; importance of products’ quantitative ness to the suppliers; the differences between suppliers; the effects of the inputs to expenses or products’ differences; the transferred expenses among enterprises; the existence of suppliers’ subsidies; increase of suppliers’ merging; supplying expenses in comparison with total income

* Risks of replacing show as: The transfer expenses in the use of products; trends

of customers to use another products; the relevance between price and quality of products replaced

* Risks from the new vendors/ new comers: costly advantages; understanding about fluctuating market cycles; ability to approach input; governmental policies; economic scales; capital requirements; characteristics of trademarks; transferred

expenses; access to distribution channels, ability to retaliation and exclusive

products

* Abilities to negotiate with customers: bargain positions; large buyers; information that buyers get; comparative characteristics of the trademarks; susceptibility to price; differences of products, level of customers; level of products available; customers’ motivation

+ Competition intensity: The sector concentration; The difficulties when

withdrawn from the sector; the fixed cost/value; sector growth; over-capacity status; products’ differences; transferred expenses; Diversity of competitors; selection and scanning status

1.3.3 Internal environment analysis

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Internal environmental analysis of the enterprise can help to see its strengths, weaknesses aims at building relevant objectives and strategies that not only maximize the strengths and can turn them into special ability, but also reduce

weaknesses

As we all know, within an enterprise, there are a numbers of factors affecting to the operations We should affirm the fact that we are not able to review all factors because of extremely large quantities Therefore, in order to assess the situation of the enterprise, we need to clarify main factors within the enterprise, that representing to the overall operation’s situation Hereinafter, we use the "value chain" by Michael Porter in the following diagram:

Diagram 5: Value chain Model of M Porter

Main Sales and | Production | After-sales

activities | Marketing services

Value of an enterprise create products or services that customers willing to pay for

In order to achieve competitive advantages, all functions of the enterprise should create a value with lower costs than its competitors In other words, enterprise

BI 018Mer88501plo€t€đ8l@ftnces even with higher prices, so that customers

can compare with other competitors’ products

Value chain can be divided into major activities (functional activities) and supporting activities The major activities create products, marketing and distribution to customers Major activities are divided into two functional units: Unit make products called manufacturing; Unit to perform marketing, distribution

and sales services

a.l Main activities

* Sales and Marketing

Marketing helps enterprise to create values in a number of activities Brand positioning, advertising and marketing can increase values/reputations that attract customer to aware about products of the enterprise Moreover, these activities help create a pleasant impression of the products to customers’ mind, so it can increase products’ values Sales and marketing can create values recovering customers’ needs and share back to researching and developing function of the enterprises so that they can design more relevant, better products that meet to the customers’ expectation

* Production

Analyzing production process is to review the production process to check whether

it is consistent with the business strategy of the enterprise or need to be improved

- Analysis of production capacity: production capacities are the abilities to produce

a number of products following to the set criteria in a certain period It should consider on the designing production capacities and actual production capacities When developing business strategy, it is mainly based on designing production capacities and actual production capacity

- Analysis of equipment and technology: mainly analyze capacities of equipment and equipment functions, average life expectancy of the equipment, criteria to use equipment, maintenances, and the balance between devices’ capacities with other

I6 onhbfes$oEJkfS9 Y€fil6fôsy capabilities, the business operations will be

poorly

- Analysis of energy, raw materials and spare parts supply situation: mainly analyze qualities, functional techniques, reliabilities, timely supplies of energy, raw materials, supplies, parts

- Analysis of rationalities in the production process: mainly analyze production and process operation mechanism, continuity, the relationship rate in manufacturing process and adaptability of the equipment needed when change products

- Analysis of quality management and quality assurance conditions: mainly analyze the role of management quality and effectiveness of the work, quality assurance system

* After-sales Services

The role of customer services in a company is to provide after sales service or support This function can create higher awareness and values about the services to

customers by solving customers’ concerns and assist them after they buy products

For example, farmers can receive services as: providing scientific information on fertilizers, instructions carefully on how to use fertilizers effectively to achieve high quality and quantity productions, etc

a.2 Supporting activities

* Infrastructure

Reasonable analysis capabilities of manufacturing construction investment,

electricity and water systems, other infrastructure in order to ensure that the

operations and machinery technologies adapted to technical requirements, produce quality products

* The system to collect and process data

System to collect and process data is a group of human resources and technology experts responsible for collecting and processing information about products,

customers, distribution channels, brands, human resource management, that will

help to provide processed information to the managers of the enterprises, to help

Ihiàh C0WP#°30H l§ob@ẽ Ni strategic business plan The system proves its

importance position when it impacts directly to the production efficiency of the

enterprises, especially in the era of information technology as today

* Human Resource Management

Organization of the enterprise is a collection of human resources A relevant organization is a structure of unity, having leadership, avoiding duplication, inconsistent in the order, disordering in the system information Activities of the enterprise are considered as a living entity Managers need to analyze the tasks and achievements, adapt between position and power, and cooperate between enterprise and its technical units, and cross-units in order to avoid any overlapping Among the employers and employees, they should be encourage cooperate and work as a team and link together Their skills and knowledge can be applied to their works By analyzing this, we can know about the exiting issues and how to solve and adjust

* Research and development activities

Research and development activities can make production processes more efficient,

reducing production costs, with its qualitative product design, R & D can increase products’ functions and make it more attractive to customers In both ways, R & D activities in the enterprise can create values In the context of science and technology development, R & D activities will help enterprises to obtain scientific techniques timely for their production and business activities

* Material management

This function shifts the entire values chain from purchasing into production and distribution This result and achievement are closely linked with one another and can reduce production costs that can bring more values By strict control goods flow from suppliers and inventory system to customers, enterprise reduces inventories, reduce costs and create more value

Besides, while analyzing internal environment, enterprises need to care about the financial assessment and finance management Finally, with the results of internal environment analysis, we should remember that factors are not able to stand only

lblànác0'1\DE€33@cl 646sèl€FS@fone another, being integrated and impacted and

influenced

One good enterprise should have strong but flexible cooperative relationship among technical units that brings effective working results

b Identify sustainable competitive advantages

The identification process on sustainable competitive advantages can be seen in the below diagram:

Diagram 6: Procedure to recognize sustainable competitive advantages Sustainable competitive While the company’s capacities are over Advantages than its competitor

Long-term can become a_ sustainable

Core ee While the key and essential capacities can

create success, it become core capacities

Capacities Resources have been used:

Ỷ - Intangible: brand, commercial advantages, favorable

sustainable competitive advances: (1) Valuable, (2) Rare, (3) Difficult to imitate, (4)

Distance is big enough, (5) Coincide with the success factor

To summarize: Internal environment analysis is to identify potential resources of enterprises and its challenges in maintaining competitive advantages

1.4 SWOT matrix and selection of the most advantages strategy

1.4.1 SWOT matrix

JRRlJo€omDWs9btfebA@sien English words of: Strengths, Weaknesses, Opportunities and Threats This is a useful tool for us to identify problems and give

solutions on organizational structures, management and business decisions In the

other words, SWOT is a theory framework that we can base on that to consider development strategies, positioning and direction trends of any organization, company, enterprises; to analysis business proposals, initiatives which relevant to the enterprises’ benefits Based on real situation, SWOT analysis can apply in developing business plan, strategy, evaluating competitors, surveying markets, developing products, researching

Origin of SWOT analysis model

SWOT analysis model was from a survey results with the involvements of more than 500 companies that had highest revenues, voted by Fortune magazine and conducted by Stanford Research Institute in 1960s and 1970s The main objectives

of the research are to find out reasons why many big companies/ enterprises could lost their plans implementation The researchers were Marion Dasher, Ts Otis Beeper, Albert Humphrey, Robert Stewart and Berger Lie

The research was taken in 9 years from 1960 to 1969, with more than 5,000 workers

who worked very hard to key in all surveys, with 250 contents and 1,100

companies, organizations involved After the research, they discovered 7 main matters to manage enterprise in effective ways Dr Otis Beeper defined “Logical

chain”, as the main content, i.e.:

Hit rsộRlhEess0cbY€&d 68100 was not able to change teamwork values or set

goals for workgroup It should go first by evaluating advantages and disadvantages

of the enterprise Businesses should start this system by self-questioning about what

"good" and "bad" for their enterprises at present and in future The “good” things at present are named “Satisfactory”, the “good” things in future call Opportunity; the

“bad” things at present are called Fault and the “bad” things in future call Threat And this tool is called SOFT

While presenting the research in the Long-term Planning Workshop in Dodder

Grand, Zurich, Switzerland in 1964, Uric and Orr decided to change the letter F into

W, and SOFT tool was called officially as SWOT

Lateran, SWOT tool was communicated by Uric and Orr in England as an exercise for everybody What have to do in planning are to classify problems, matters in orders as guided

Since then, this tool was applied successfully in many enterprises and organizations

in different fields By 2004, this tool was developed completely, proved its capabilities to solve series of problems by identifying and agreed a number of practical points from the enterprises itself, but no need to have external consultations

SWOT analysis

Albert Humphrey, an economist, a member of Management Board of 5 companies,

senior advisors of more than 100 companies in the UK, U.S, Mexico, France,

Switzerland, German, Norway and Denmark, classified SWOT into six category contents as follows:

1 Product (What will we sell?)

2 Process (How will we sell?)

3 Customers (Who will we sell?)

4 Distribution (Which methods will we approach customers?)

5 Finance (Price, expenses and investment?)

6 Management (How we can manage these activities?)

lSXEKÁác@UÐid€Bš6vider§4rÀ(@EW9lk for developing problems SWOT Requirements

in SWOT are classified into six categories, will evaluate in qualities, help group

work more responsible to business activities of an enterprise or a organization One important objective of the process is to achieve the commitment and cooperation among the working groups - this can be explained by the model of TAM (Team Action Management Model — Team operation management) of Albert Humphrey Based on the specific context, a SWOT analysis model can define one or more categories In any case, SWOT will tell you what is "good" and "bad" in the current business and propose a recommendation for the future

If SWOT analysis to a business, the goal is to improve the enterprise’s operations,

SWOT can be understood as follows:

° *Strong points” (Maintain, build up and develop)

° ”Opportunities” (Evaluate In an optimistic way)

ˆ ”Weak points” (Methods to repair, solve and overcome weaknesses)

”Threats” (Challenges)

If SWOT analysis is applied to evaluate an idea or proposal, it can indicate that the idea or proposal is not good (especially when we compare with other proposals) and

should not invest on it In this case, there is no need to make action plan

SWOT analysis framework

SWOT analysis framework will help us to think professionally and take an active decision, not rely on reaction or common feeling SWOT analysis framework often presents into 4 main contents of Strength, Weakness, Opportunity and Threat, some set questionnaires and answers to fill in the framework These questions mention below are only examples that help us to apply and tailor-made in relevant situation One important point is the analysis object should be defined clearly; it can be a company, a product, a project, an idea, an initiative, a method or a solution

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O — Opportunities T — Threats Internal S- Strengths | S-O: develop strengths in S-T: develop

environment order to utilize opportunities | strengths in order to

to direct business reduce and limit development risks

-W- Weakness | W-O: overcome weak |W-T:overcomes

points in order to take internal difficulties opportunities and well prepared

to external challenges

1.4.2 Selection of optimum strategy

Business needs to select an optimum strategy for their operations, because they are

not able to implement all strategies, plans at once, or step by step as it will take a lot

of time, costly, waste of energy and people Therefore, it is needed to select one series of best strategies for the business, as well as considering about its advantages and disadvantages

The selected development strategies will be based on the combination of different factors from the strong points — opportunities, strong points — threats, weak points — threats, weak points — opportunities, GREAT matrix tool:

PDF Comprq9‡@är]w£9: V§Wälftftive matrix according to GREAT

Cu ahốs | Ge Strategy | Strategy 2 Strategy n “I

Assess | Converting | Assess | Converting Assess | Converting point point point point point point Column | 2 3 4=2x3 5 6=2x5 I j=2xi Benefit-G

Step 1: Identify main objects to be analyzed as mentioned in column 1

Step 2: Evaluate impacts of each factors (criteria) to overall strategies; apply assessment in order to show the importance and influence of these factors to each strategy (the point can be mark from 0 to 1)

Step 3: Evaluate mark given to each factor in each strategy The mark can be from 1

to 5 with the level from weak, under-average, average, rather good and good

Step 4: Convert marks/points are the result of mollifying two marks from two columns (column 2 and evaluating column), and then sum it in total

Finally, make a bold the highest marks from 1, 2 and 3 These three marks will

show three best strategies that need to be focused

1.5 Basic business strategies in practices

Michael Porter had defined three general strategies that can be applied for business

in order to make advantage competitions The general strategies will help business

to maximize their strong points as well as self-protect impacts from five-forces

ROY SBR RGSRO thE HS WEESEAMe decisive factor, the second important factor is

the position of enterprise Even if, the enterprise operates in a low profitable sector, their optimum position still can generate high profit levels

Each enterprise defines its market position by utilizing the advantages of their

availabilities Michael Porter said that business advantages are always in one of two aspects: cost advantages and products differences By applying these advantages, the enterprise will follow to three general strategies: leading costs, products

differences and focus

These strategies can apply to any business They are called common strategies

because they do not depend on any one business or any branch

The following table illustrates the general strategy of Michael Porter:

Diagram 9: Table on general stragies in the five-forces analysis model

of Michael Porter

Competitive advantages

Low cost Differ nation Overall Strategy to lead on expenses Strategy on products market differences Scope

Focusing | Strategy of focus (low cost) | Strategy of focus (products market differences)

(Source: Nguyen Thanh Thao, “Brand strategy in theory, M Porter”’)

Strategy to lead on costing

This strategy aims to become a low cost producer with certain quality standards Meanwhile, the company will sell products following to the average price scheme

of the business sector in order to obtain higher profits than competitors, or will sell for prices lower than the averages to gain more market share

In case of "prices war" take place, the company can maintain a certain profit, while its competitors must bear losses Even when there is a conflict or inconsistency in the price, economic sector development, expand or slowing down, any company

IEKc@iMiF339 Jn680cVi6RSOEs, they suill able to obtain profit in a long-run

This strategy often applies to the large market

Business can base on a number of methods to take advantages in expenses by carrying out renovations, looking for new chances, for new material resources that

may offer with low prices, technologies transferring or reducing unnecessary

expenses If competitors are not able to cut their expenses accordingly, the business still able to take their advantages

Success businesses often apply this strategy are able:

¢ Approaching capacities to invest new production technologies This is a barrier that many companies are not able to overcome

* Design capacities for products in order to increase production results, such as designing a small function that can shorten the production process

¢ High capacities in production

¢ Have effective distribution channels

Each strategy has hidden challenges inside, and low-cost strategy is not an exception Risks can happen when competitors also have lower production costs

capacities Or with modern technology, competitors may speed up their production

and balance competitive advantages in leading expenses In addition, some companies are focusing this strategic plan in a narrow market, that will not difficult

to meet low-cost production in their traditional market

Product differences Strategy

This is a strategy for product or services development, so that products or services will have unique features It will help to obtain customers’ loyalty, and allow the company to give a higher price than its competitors They hope that higher prices will not only allow covering the expense surfaces from supplying products, but more than that: thanks to the different characteristics of the product, if suppliers increase price, the company can move this price incensement to the customers, because customers will not easy to find a similar product instead

Success business companies in this strategy often have the following advantages:

ER BIGCRRRES SPINY EGHVSEH Wh leading technologies

* R&D team has very high skills and initiatives

* Sales team is active and able to sell products to customers successfully

* Reputation and images about the company’s qualities and initiative capacities

There are some risks when applying strategy on products differences, such as

competitors can tailor-made, imitate similar products or customers change their consuming trends Besides that, there are many companies apply to strategy of focus pearly that will help to attain more achievement in products differences

Strategy on Focus

Focus Strategy is to concentrate into one market segment, in which, company will

strike for its advantages competition by having low cost or products differences, it can be seen with the theory “a team demand can be satisfied if we can concentrate

to serve for them only”

A company apply focus strategy often has a high level of customers’ loyalty and these loyalty can make other competitors fails in approaching them and do not want

to compete directly

Thanks to focusing to narrow market segment, businesses can follow this strategy with low business turn-over; they are not able to achieve advantages when negotiating with suppliers Those businesses follow to strategies of products differences and focus can shift expenses from suppliers to customers, because their customers can not find other products instead

Success businesses apply focus strategy often change their development advantages by producing many types of products that meet demands of its small market segment, where they know very well There is one risk should be mentioned when apply this strategy, i.e imitation and changing of target customers Furthermore, one manufacturer leading in expenses can change their products in order to compete directly to manufacturer following to focus strategy And other manufacturers, who also apply focus strategy, can approach to target customers that can cause to reduce its market segment

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These general strategies may not relevant with one another If one enterprise tries to

act in order to be the leading and obtain advantages in many areas, they will meet

failures For example, one company makes them difference by introducing very

high quality products, if they want to be leading in expenses, they might have to

reduce their products’ qualitative In case of keeping the quality level, the company

still shows their inconsistent pictures to customers Therefore, Michael Porter said

that in order to obtain long-term success, each enterprise should select one of three

above-mentioned strategies If they want to cover three strategies, the company will

meet difficulties and not able to take competitive advantages

According to Porter, companies want to be success in applying many strategies;

they have to establish auto monies or separate business units; of which each

business unit will follow to one strategy By this separation, these companies can

reduce risks and able to develop

However, there is some opinions mentioned that following to one strategy is not the

right choice; because with same product, customers often find satisfaction in many

aspects - a combination of quality, style, convenience and price In fact, there were

manufacturers applied loyalty to only one strategy and then suffered losses when a

company entered market with lower quality products, but can satisfy customers with

other aspects

Common strategy in the context of competitive forces

Diagram 10: Characteristic comparation of overall strategies in five-forces

Competition Overall cost Differentiation Focus

leadership Risks from Reduce prices to | Loyalties from Focus can create professional new vendors | against new customers can reduce | works, that will be as barriers

vendors new vendors for new vendors

Rjijot@i,MD0Te 'S6plHffffidee°Ì0TN arge customers have | Large customers has fewer

capabilities to | offer low prices | fewer advantages in | advantages in negotiations as

customers with large negotiations as they they have few selections

customers are not able to find

out products to be replaced

Negotiation Capabilities to | Able to shift the Having weaker position in capabilities to protect prices incensement negotiation with suppliers, as

suppliers themselves from | made by suppliers to | the company has low

large suppliers _| other customers production capacities; the

company follows to the focus

strategies and products differences that helps them to shift higher costs to their customers

Risk to be Able to apply Customers become Products differences with high replaced low price for closely and loyalties | quality and technologies will

self-protection | because of products | protect themselves from being

in order to differences, that help | replaced prevent being to prevent being

replaced replaced Competitive | Able to compete | Customers’ loyalties | Competitors are not able to intensity with better pricing schemes to products will help | meet customers’ expectation to keep their

customers to the company, but not move to its competitors

as the company follows to

focus strategies

l.làló)1NBXSS0nRDP9)À©TSÌBHund strategy in theory, M Porter ”)

The above-mentioned strategies can be applied to protect enterprises against competitive forces The above diagram shows characteristics’ comparison of the overall strategic environment, five-force competitiveness

* Executive summary of Chapter I

We have explained and shared the basis of theoretical concepts and terminologies that are foundations for enterprises’ development of business strategy Theories and methods can be listed: how to understand the strategic steps to build strategies and methods of evaluation and analysis, methods of integrated assessment, methods of proposed strategies and methods of advance filtering strategies The above- mentioned theories and methods will be applied in case of the Tay Ha College While studying, we apply flexibilities from theories into practices that meet to specific business and real situation of the College

PHhẩ@H w1ttit%26ỦFi9ð XÑB!'SÊELECT BUSINESS STRATEGY FOR THE

TAY HA POLYTECHNIC COLLEGE

Chapter 2 is developed based on the Theories that mentioned in Chapter 1, but analyze real situation of the College in all areas of macro and micro environment, internal environment of the Colleague and SWOT analysis, by that we can review all existing issues and its reasons

2.1 Overview about Tay Ha College

2.1.1 Introduction about the School

- Name of the school: Tay Ha Polytechnic College

- Address: Main office: Tan Lap commune, Dan Phuong district, Hanoi

2™ Office: Trung Van commune, Tu Liem district, Hanoi

- Tel: 84 4 33630245 / 84 4 33665246

- Fax: 84 4 33665247

- Email: sangtayha@gmail.com

- Managing Governmental Body: Ministry of Education and Training

- Square of the school: 4,7 ha

- Operating capity : 67 billions VND

2.1.2 Overall characteristics of the services:

a Education services: Professional training in two levels: (1) professional college and (2) professional intermediate course; Vocational training in three levels: (1) college, intermediate and primary

* Professional College training: 9 sectors:

- Business Administration - Transport Infrastructure Construction

- Finance — Banking - Railway Transport

- Social Works - Accounting

- Technology on Electron and - Vietnam study (Tourism guides)

Electricity

- Information Technology

* Vocational College: 12 sectors

- Industry Electronics - Road, Bridge construction

- Home office Electronics - Auto Technology

- Constructing Skills - Tourism Guide

- Water supply & drainage - Hotel management

- Consumer Electronics - Tailoring and fashion design

- Autogenously healing - Restaurant management

* Intermediate training: 10 sectors

- Industry Electronics - Frames, scaffolding

- Consumer Electronics - Auto technology

- Home office Electronics - Tailoring and fashion design

- Constructing Skills - Welded reinforcement

- Autogenously healing - Water supply and drainage

* Primary training: providing training to all sectors the College and Intermediate levels

b Labor export training Services:

Provide training on languages, directive education and professional training to workers and students for labor exporting to countries of Japan, Korea, Taiwan, and Middle East, Malaysia

c Collaboration and Joint-venture education and training, applying to technology: Provide long-term training courses, both off-line and distance course on sectors of tailors, manufacturing, auto maintenance and repairs

2.1.3 Foundation and development:

PRE Gapupressor Free Version

- The Tay Ha Polytechnic Vocational Training Centre was established on August

15'", 2003 according to the Decision No 1170/QD-UB, issued by Ha Toy provincial

People Committee

- By November 13", 2007, at the Decision No 7273/QD-BGD DT, signed by Minister of Education and Training, established and upgraded into Tay Ha Polytechnic College

- Tay Ha Polytechnic College is a unit of self-income, has legal status, its seal and separate bank account, operating under the model of non-public school system, following to the Regulation, Statutes of the Colleges and to legal regulations, laws

on vocational education and training

Development

After more than six years of foundation and development, there are thousands of students

trained on different sectors, i.e 1000 students graduated from electronics, auto

ethnology, industrial electronics, home office electronics computing, tailoring and fashion design, there are 80% of students employed and receive stable incomes

Annually, the College is striking to achieve its tasks and responsibilities with its functional units such as Party unit always meet the excellent results

2.1.4 Mission:

* Tay Ha Polytechnic College has responsible for:

- Provide trainings to those to have qualified education in term of political, moral, knowledge and professional ability adequate to the level of professional and vocational colleges, intermediate training, who have good health, abilities to be employed, able to create jobs for themselves and for others; be able to cooperate in professional activities, to meet the need of building and protecting the country

- Scientific research and technological development; combining training with scientific research, production and services in accordance with the Law on Science and Technology, Law of Education, Law on Vocational Education and other legal provisions

PDE COMMA EES be PMGESI QE Ee, employees, teachers of the College that meet

the requirement of quality and quantity, balance levels of training structure, sect oral structure in accordance with the regulations of Ministry of Education and Training

- Student enrollment and management in accordance with the regulations of Ministry of Education and Training

- Identify and foster talent-students and the staff of the school faculties

- Manage and use the school’s land, facilities, equipment and financial resources in accordance with the law

- Coordinate with other organizations, individuals and students’ families in educational activities

- Organize social activities for school’s staff and students in accordance with sect oral training

- Maintain and develop heritage and cultural nationalism

- Perform other duties prescribed by law

* Rights and responsibilities of the School

The school is the autonomy and self-responsible for planning, developing plans, organizing training of science and technology, finance, international relations, organization and personnel Specifically:

- To develop and implement strategic development plan relevant to the national education development strategy and network of colleges and university

- To develop curriculum, teaching and studying plans to all training sectors of the College that relevant to the framework of the national program issued by the

Ministry of Education and Training; conduct enrollment, training, recognition of

graduation, providing graduation degrees and certificates following to the guidelines from the Ministry of Education and Training

- To conduct educational quality control

- To mobilize, manage and use resources aiming at implementing educational goals; cooperate with other in-country and out-country organizations of economics,