CAPSTONE PROJECT REPORT DEVELOP STRATEGY FOR THE POST & TELECOMMUNICATION INSTITUTE OF TECHNOLOGY IN THE PERIOD OF 2010-2012 BÁO CÁO DỰ ÁN CAPSTONE XÂY DỰNG CHIẾN LƯỢC CHO VIỆN CÔNG NGHỆ BƯU CHÍNH VIỄN THÔNG GIAI ĐOẠN 2010-2012

CAPSTONE PROJECT REPORT DEVELOP STRATEGY FOR THE POST & TELECOMMUNICATION INSTITUTE OF TECHNOLOGY IN THE PERIOD OF 2010-2012 BÁO CÁO DỰ ÁN CAPSTONE XÂY DỰNG CHIẾN LƯỢC CHO VIỆN CÔNG NGHỆ BƯU CHÍNH VIỄN THÔNG GIAI ĐOẠN 2010-2012

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To Ngoc Tuyet Pham Thi Thanh Van

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FABLE OF CONTENT

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1 4 Strategic control and evaluation o.oo occ ẤẲẰ dadadi| eeetet teen tttneeeeens 31 CHAPTER H: ANALYZING STATUS AND PROPOSING STRATEGY 262A ==sÐÐ 2.1 Ihmroduction to the ÍHSIHEMEO' à 222525222222 2511111112 ssssse a 33 2.1.1 Gemeral imtroducHon cette peter eens alec eo! 33 2.1.2 Position, roles and functions TƯ wit ies ¿x60 al 33 2.1.3 Operation: SSS ices ibs ists tàitSP\500616ug36iiã8-6 2200 8đ 2.1.4 Results of training and research activities in the Institute BANAL IERIE

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22 Analysts of strength and weaknesses the Institute Tu ng sac 2 Ổ

2 4 Internal analysis of the Institute: Sones ¬ nha C1 n2 211 3Ó 2.4.1, Analysis of value cham: chi RTE 56 2.4.2 Analysis of core competence 00.0 mm ¬—

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CHAPTER IH: DEVELUOPING STRATEGIES, PROPOSING OPTIONS, SUGGESTIONS

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- Posts & Telecommunications Institute of Technology : Research and Development

: Strengths, weaknesses, opportunities and threats

: Vietnam Post and Telecommunications Group

: World Bank

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Overall strategic administration model

Development process for business strategy

5 Forces model of M Porter

Value chain model

Competitive active force of the Institute

Overall strategy of the Institute

Defining model of business plan implementation program

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Steps to define business targets in enterprise

SWOT matrix (Strength Weakness, Opportunity | hreat)

Institute's labor

Some key financial targets in 2008

Scale of public and unpublic students in the period of 2010-2014

Enrolment statistics and training quality access in 2010

SWOT analysis

Revenue indicators of the Institute

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INTRODUCTION

1 The urgency of research topic:

Training, research and technology transfer in Vietnam have developed quickly

in both quality and quantity, contributing much to the national modernization and

industrialization State-owned schools were the only to be seen in the past, but now Vietnamese education is very abundant and various with a lot of training units, including private, and semi-public schools: research, and technology transfer units that belong to all economic sectors, social, occupational and even foreign organizations This serious development of training, research and_ technology transfer in Vietnam is originated not only from the essentially objective economic

demands of diversifying and multilateralizing external economic relationships, but also from the strong support of Party and Government A number of decrees,

policies, and methods are important clues in management and improvement of

training, research and technology transfer all over the country, boosting up the

national career of training, research and technology transfer

However, due to the shifting economy, Vietnam is now coping with some difficulties In general, market factors have not been declined completely in combination with State economic management is under innovation, in appearance, methods and contents to fit with State functions in market cconomy In this

background, training, research and technology transfer in our country are now just

in the stage of switching and developing Many activities of training, research and technology transfer have not been executed or have not called much attention from economic sectors like domestic enterprises State management in_ training,

research and technology transfer has not met the requirements of economic

development in general and support for enterprises in particular Especially, State

management in training, research, and technology transfer is not properly efficient

for schools, institutes and enterprises.

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Institute) is established according to the Decision no 516/1 1g, issued on July 1 -

1997 by Prime Minister Post and Telecommunications Institute of Technology

belongs to the Vietnam Post and Telecommunications Group (formerly, Vietnam

Post and Telecommunications Corporation) and operates towards the purpose of

combining research and training activities to meet the actual demands of business This is the pilot model to form mechanism to mobilize resources (both in economics and actual environment) from developed State-owned enterprises for the activities

of research and training to meet the actual requirements of enterprises when the State budget for these activities is still limited as well as the ability of applying these activities into actual life is not high

However, being a State career unit that belongs to Post and Telecommunications Group and operates like a career unit the Institute is bound by State regulations for

a career unit In addition, although the Institute is the combined model of training

and business - a University belongs to enterprise it does not receive any special mechanism Organization is changed slowly: training and research activities are

rather separate, therefore the relationship between training and research that can

build up the Institute’s strength is not closed

2 Research overview

In the recent years, there are some authors composing researches on training,

research, and technology transfer, but there is no deep research on policies, education quality, and financial mechanism for education Scientific researches just mention about mechanism and suggest some recommendations to boost up research,

but leaving the logical connection between research and business Moreover, researches mainly focus on a detail aspect, but not the bind and structure of organization to achieve expected goals Therefore, this thesis will focus on the topic

“Develop the Strategy for Post and Telecommunications Institute of Technology in the period of 2010-2012" \he thesis will clarify kinds, methods, and content of the

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the intergration period of 2010-2012

3 Thesis missions:

3.1 Thesis objectives:

Basing on the theoretical and practical management of research and training

in some countries in combination with actual business to meet social demands, the

thesis will clarify the overall strategy and the components of that overall strategy for the Institute in market economy in the period of 2010-2012

3.2 Thesis missions:

- Interpreting the basic theory of the strategies in research, training and

technology transfer units

- Analysing the actual situation of management mechanism, operation method; evaluating strong and weak points, as well as results after 12 years of operation

- Proposing development strategy of Institute in the field of training, research, and technology transfer of Post and Telecommunications Institute of Technology in the

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Telecommunications Institute of Technology in the period of 2010-2012

5 Research methodology

To achieve these above objectives the methods of dialectual materialism historical meaterialism, aggregate analysis, statistics, comparation and combination

of theory and practice are used

6 Thesis’s anticipating contributions

- In theory, the thesis is the reference material for not only State management

offices of education and training, scientific researches: but also for State enterprises relating to training, research, and technology transfer to improve the roles and operational effects of research and training organizations in international economic

integration

- In practice, the thesis will contribute to the actual management, and

Telecommunications Institute of Technology in the period of 2010-2012

7 Thesis structure:

In addition to the introduction and conclusion, the thesis consists of 3

following chapters:

- Chapter 1; Theoretical base

- Chapter 2: Analyzing of actual situation in Post and Telecommunications

Institute of Technology

- Chapter 3: Proposing development strategy for Post and Telecommunications

Institute of Technology in the period of 2010 - 2012

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1.1 Concept of strategic administration

1.1.1] Concept of strategy

In normal concept, s/rafegy is a military term to define a plan of force distribution and exhibition to defeat the enemy or to gain military target Carl von

Clausewitz - 19th century artist of war - described strategy as “planning and

forming fighting campaign These campaigns will decide the contribution of each individual.” Historian Edward Mead Earle described strategy as “the art of control

Nowadays, concept of strategy is used commonly and considered as the basic for operation of trading enterprises [here are many strategy concept such as sirategy is the art of developing stable competition advantage to defend (M.Porter), strategy is model on targets, purposes and plans to reach that target (Kenneth, 1965) or strategy is the red line for every activity of an organization (Ansoff,1965), strategy

is a plan to control and make use of organization forces such as himan, assets, finnancial, etc to ensure and increase our own benefits Kenneth Andrews is the first person to raise up this idea in the classical boook The Concept of Corporrate

Strategy According to him, strategy is what an organization should do based on

strenths and weaknesses in the situation of oppotunities of threads

Strategic administration is a complex arrangement of strategies, operations and business results, including human resource, organization, management, technique, and treatment methods The effective combination of these factors will support strategic directions and perfect service provision This is a continuous activity to establish and maintain strategic directions and business of an organization; daily decision-making to solve the immerging problems and business challenges As a

part of strategic idea about business development, enterprises should point out a

detail direction However, this operational direction can be changed by following

II

PDF Compressor Free Version ; ay impacts On policy (new targets) or on business (increasing service demand) This also means that enterprises should have adjustments to go in right or new direction Similarly, it also relates to the management of enterprise when the relationship with

other partners is changing

Typical strategic administration model:

Business strategy of an enterprise is a business model; an operation program of

the enterprise: method of using resources: the foundation for solving all problem in

enterprise

Business strategy shows the concept of value from the enterprise, the spirit of

the management board the evaluation of managers about the objective and subjective context of the enterprise Only when the managers evaluate accurately

the objective and subjective context can a right business strategy be drawn out Otherwise, the enterprise can get mistake

Business strategy is the creativeness in management, i.e the enterprise, basing on the certain targets, rearrange an effective and competitive management system If

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an enterprise just imitates the other, it can not get a real and sustainable development Therefore, developing a business strategy must base firstly on the real

situation of the enterprise Two enterprises can be at the same region, the same

products, the same scale but the business strategies can not be entirely the same as

their subjective context are different At the same time, the creativeness in

management must be connected with that of organization and technology so that business strategy can be effective

Business strategy is the action plan of the enterprise The development of

strategy is important, but its implementation is even more If the strategy is not implemented, it is nonsense In order for the strategy to be executed, the whole staff should know clearly about the strategy, and change it into annual and partial plans that are feasible

Business strategy shows the competitiveness of the enterprise When developing the strategy, enterprise should analyse its own objective context, opportunities and

threats The subjective context also needs tobe analysed to show the enterprise’s

strengths as well as the weaknesses Business strategy of the enterprise must combine the opportunities that objective context brings with enterprise's strengths

as well as overcome the threats and weaknesses of the enterprise Only in this way

can a good business strategy be drawn out

1.1.3 Mission of strategy

Strategic administration is very important because enterprises always have to

solve efficiently all immerging challenges, including both opportunities and difficulties Nowadays, organizations are towards external-orienting service

supplying, a basic conversion from traditional internal-orienting one Meanwhile,

big opportunity of innovation may appear from communication information

technology as well as available financial sources

There are 5 closed missions of strategic administration:

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Ing a strategic perspective that describes future images of the enterprise and clarifies expected targets This can provide long-term direction towards the expected target and initiate actions for the enterprise

- Establishing goals — converting strategic perspective into detail results that

must be achieved

- Developing strategies to gain expected goals

- Implementing and controlling selected strategies efficiently

- Assessing the results and adjusting perspective, long term directions

1.1.4 Characteristics of strategy:

Overall characteristic: trading strategy is the overall chart on enterprise’s development that decides the relationship between enterprise and objective environment Overall characteristic of trading strategy is shown in 03 aspects: being

suitable to overall trend of enterprise, being direction creed for all enterprise’s activities; being suitable to nation’s development trend on economy, technique,

society in a specific time; being suitable to integration of the world

Overall characteristic of trading strategy requires review of all parts of enterprise,

analysis of enterprise’s situation, as well as national and international situation Without overall opinion, we cannot have good trading strategy

Foresee characteristic: In the past many enterprises did not have strategy just did what they met, and followed the trend only so the work was hark but the efficiency was not so high One reason for this situation is lack of development trend of enterprises Therefore, if we want to develop TS, we have to ensure the prediction

of development trend in economy, technique of society A successful strategy

usually is based on correct prediction

Competitiveness: Without competitiveness, TS to develop and implement is unnecessary Therefore, competitiveness is the most characteristic of TS In this modern time, there is no enterprise working n an environment without

competitiveness T'S shall concentrate on how to make advantage to compete and gain the win

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Risks: TS is development master planning for enterprise in the future, but living

environment of the enterprise in the future is not firm and can be changed The

longer time duration of strategy is the more unstable factors of objective

environment has The risk requires enterprise to stand high and see far, with careful

watch to have right strategy

Now we are at the first stage of market economy, macro environment of enterprises

is changing so much: therefore, the strategy of enterprises should not consider too

long to ensure the flexibility and practicability of strategy

Professional and creative characteristic: enterprises can base on their own

capability to select the right field suitable to strengths, avoid monopoly Almost all

enterprises who can do that gain success and development However, technical

achievement and market competitions are unlimited so enterprises should update

new technologies Technical creation is an important measure to ensure the existence and development, which is also an important characteristic on TS of small

and medium enterprises

Relative stability: 1S of enterprises shall be relatively stable in a certain period Otherwise, it will be meaningless with practical activities of enterprises Objective environment and practical activities of enterprises are moving continuously TS

should also be adjustable to be suitable to objective environment; it cannot be one side stable and cannot be changeable but relatively stable

1.1.5, Mission

The mission must deliver the meaning of the enterprise's existence and operation

The content of the mission consists of:

- Development and profit concerns: the enterprise stick to profit or not

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eValuation: what enterprise's competitive advantages are

Table 1.1: Steps to define business targets in enterprise

To build the enterprise’s vision is to plan for the enterprise’s future

The basics of the vision are:

The vision ensures:

- To be simple, clear and straightforward

- To enable big changes and attract human resource

- To be reviewed by senior managers

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To establish strategic objectives:

- Annual objectives (under | year)

The long-term objectives are to specify the enterprise's strategic mission and vision

Objectives are specific status, numbers that the enterprise would like to archive

Each office/department should build its specific and measurable objectives to

contribute to the overall objectives

The common long-term objectives comprise:

- Competitive advantages

- Relationship with employees

- Technological Leading capability

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assignable, realistic and time-bounded)

1.1.8 Internal environment

Internal environment 1s the environment within the enterprise, includes available

resources, such as visible resources (finance, human, organization ) and invisible

resources (technology idea fame )

Developing strategy can be divided into 5 steps:

(1) Selecting key missions and targets for the enterprise

(2) Analyzing external environment to define opportunities and threats

(3) Analyzing the internal environment to define strengths and weaknesses 6

Developing business strategy is the collection of activities that change income

into outcome The strategy is based on the enterprise’s mission This mission defines the business target and what to be done Basin on this mission, the

management board can point out targets These targets present clearly the mission

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targets are lead by practices in environment

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directly on any forces in any sector Therefore, it can affect other forces and even itself Finally it can destroy the attractiveness of a seetor

With the business environment in Vietnam, according to the evaluation of World Bank (WB) in the report on doing business 2008, Vietnam ranks the 91th position in 187 surveyed economy and increase 13 ranks in comparison with 2007

Business environment in a country is evaluated by WB basing on 10 criteria, since

the establishment to disintergaration of an enterprise (the criteria of establishing,

licensing, recruiting and sacking, asset registering, loan borowing, investor

disintegrating) According to the evaluation of WB in 2008, business environment

of Vietnam has been improved considerably, but there remain many problems that

enterprise

b/ Analysing sectorial environment

Sectors are different in ecnomic, competitive characteristics, profit potentials in

the future economic characteristics depends on the factors, like scale, market growth, technology change, geographic barriers of markets (/ocal or global), number and scale of customers and sellers, product scale of sellers, distribution styles The competitiveness in different sectors is also different In addition, sectors are also different in competitiveness focal points; it can either be price or

quality

Administrators can not create a long term direction or strategic decision if they

do not know exactly about the strategic status of the enterprise, the competitiveness conditions that the enterprise is facing to, the way to form the accordance between the resources and ability with the available conditions

In order to analyse sectorial factors that directly affect enterprise's operation,

Micheal I: Porter has found out 5 factors that alfect most the competitiveness

in an industry supporting the admnistrator to realize the opportunities as well as the

threats that the enterprise must cope with in a sector:

- Negotiability of suppliers

- Negotiability of customers

- The competitiveness intensity in the sector

However, there are some advantages and disadvantages when this model is applied into special case of a certain enterprise Therefore the most important when using

this model is the accurate definition of each factor in the model:

2l

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Ability of

making bargain of

Figure 1.3 —Model of 5 forces of M.Porter

The competition model shows that when the competition is high, the ability of

enterprise to increase price and profit Mission of the administrators is to be aware

of opportunities and threats that the changes in 5 forces can bring Basing on that, a Suitable strategy can be developed

Analyzing competitors in the sector Sector is defined to be a group of enterprises that supply one product or service that can be alternative Economists

point out that alternative products are flexible When the price of a product

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be considered to be the alternative

One very important thing for an enterprise to analyse the competitors in the

same sectors is that it must know exactly the attitude of these competitors towards it and other companies in the same sector The enterprise should collect information

about the strategies, targets strengths, weaknesses and reactions of the competitors

The enterprise needs to know the strategy of each competitor to foresee the methods

and reactions When the enterprise knows the strengths and weaknesses of the competitor, it can complete the strategy to utilize the weaknesses and avoid

strengths of the competitors Many enterprises run the same business in a sector, so

the enterprise must balance its resources to complete its own strategy Enterprise should know exactly about its competitors: Who are their competitors? How are their strategies? What are their targets? What are their strengths and weaknesses?

How are their reactions?

New potential competitors: Potential competitors are the ones that are not in the

same sector but can affect the sector in the future Whether the number of

competitors is small or big, their impacts on the sector are strong or weak depends

on the attraction of the sector This is shown by productivity ratio, customer’s number, enterprises’ number in the sector

Negotiability of customers: customer is a competitive pressure that can affect

the overall operation and business of the sector Customer brings pressure of price,

product quality, embedded services, and they are the one that contro] the

competitiveness in the sector through decision-making Customer of an enterprise

can either be an end-user of the products or the distributor to end-users like agencies When analyzing, the enterprise should pay attention to customer's

importance The advantage of analyzing the competition pressure from customers

help the enterprise to define the scale and importance of the sector However, if the information about customers is not accurate, the scale of sector can easily be wrong

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competitiveness pressure their negotiation rights in the sector The supplier can be treated as a threat when they can raise the price or decrease the quality of material

input that they supply for the enterprise On the other hand if the supplier is weak,

it is really a chance for the enterprise to make bargain of price and ask for higher

rights between them and the enterprise

Threat from alternative products Alternative products are the products of

sectors that serve for similar customers to the analyzing sector The existence of alternative products shows a competition that limits the ability of setting high price:

therefore reduce its ability of creating profit The threats from alternative products

increase when:

- The customers do not have to pay much during product transfer,

- The quality and efficiency of alternative products are better than current

product in use

In fact, these special products highly appreciated by customers will be less influenced by this threat

Actuallee enterprises in the same industry often differ from the other

companies in these factors: Distribution channel, market segment, product quality,

technology, pricing, customer service, advertising and promotion Because of this

difference, most sectors will form groups of enterprises in which each member to pursue similar strategies, known as group strategy Competition between companies

in the same strategice group is often stronger than the competition with foreign

enterprises and enterprise in the same group of strategies often have similar

positions on market, with similar product, the similar action strategy

Through the above analysis we can see that model on 5 competitive forces and strategic group is useful tool for thinking and analyzing the nature of

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has limitations, namely: Suppose competition painting with numbers in the past

overlooked the role of improvements: ignore the importance of differences in each individual company while too stressed about the structure of industry, strategic group

Competitor’s environment analysis:

Enterprises can not overcome the opponents without tracking their actions, understandin their strategies, plans for their upcoming

The best source of information to understand the opponent's strategy is to

Simultaneouslee evaluation of geographical distribution of market, strategic intent

and objectives of market share, competitive position in the industries' strategic groups, the ability to accept risk, the latest step to strike or defense

To analyze competitors, enterprises must evaluate which enterprise to play the

important role in the industry in the future, which enterprises will lose its important role in the future? The determination of the opponent will help to predict the steps the opponents

Predictions of Steps of the opponent is very difficult but very useful in the analysis of competitors To be expected the administration must have delicate feeling on position of competitors, their minds and their choice

1.2.2 Environment analysis:

The main purpose of environmental analysis within Enterprise is to identify

potential sources of existing and create sustainable competitive advantages of

enterprises

Competitive advantages Enterprises can achieve competitive advantage and achieve profitable above average if their core competence is taken advantage,

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advantage if the company can keep its disciplines and principles The level of strategice competitive advantage depends on the ability to confront the potential competition against the major transformation of the environment, depends on the ability to replace core capacity and depends on the dilficult level that competitors

face when following the core capabilities of the business

An enterprise is considered to have competitive advantage when its profit rate

is higher than the average rate in the industry Enterprises have sustainable competitive advantage if it can maintain high profit rate in long period Two basic

factors indicated a competitive advantage are the amount of value that customers feel about goods or services of the company, and its production costs Thus, factors creatin a competitive advantage are efficiency, quality improvement and customers

satisfaction

When analyzing the environment within the enterprise, the administration

focused on analysis of sustainable competitive advantage, analysis of current

strategy and analysis of financial performance

Analysis of sustainable competitive advantage: There are two main ways which are resources analysis and value chain analysis

Resource analysis shows the resource reserves of resources, capabilities and

assets available for business units or the entire company The analysis focus on the financial resources (funds capital, debt capacity) physical assets (land, machinery, factories) human resources (skills, enthusiasm of staff, administrators); intangible assets (brand, values and culture of the company's,) assets in technology (copyright, patents) and long-term contract It is important that analysts must clearly identify the resources to be contributed to the ability to generate revenue for companies, not

listed resources

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resources of the company to identify their competitive advantage Value chain

products and which do not in a product (goods and services) with equivalent value

to their competitors but with lower costs (/ow-cost siruiegy): or how to produce the

product that customers want to buy at higher prices (c/i//erenteate strategy)

- Identify how the value of each activity increases in theory and classify them;

- Evaluation activities by comparing the standard with the best way of

competition, industry or theoretical model

When analyzing the value chain, analysis of the ability to create value of the basic

activities including:

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inventory, made to convert the input into product

- Production: Including activities necessary to convert the input of logistics

process supply into final product

transporting the final product

- Marketing & Sales: Includes activities to ensure the most effectively

implementation of exchange of goods and services on the market The work 1s focused primarily on the basic stages of marketing-mix combination: Market

research, product development, pricing policy formulation, setting up distribution

channels and sales promotion support

- Services including activities designed to improve or maintain product value The above are basic activities contribute to create the overall value chain of

business Each activity should be considered in relation to the capacity of

competitors Under which each company must evaluate each of their activities are

at a superior or equal to or less

Analysis of the ability to create value of supporting activities:

- Buying: including activities for buying raw material inputs for the company's products Beside materials it need to mention the tools and means of

production such as factories, machinery laboratories materials necessary for the

office as well as other conditions for producing |hese activities are being done

by many different parts of the business, but are very active in the process of creating value for the product as well as performance of the business

- Technology development: Including activities necessary to improve

product value and processes used to manufacture products The concept of

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Technology development includes research and development (R&D), this is the

important activities contribute to create new value for the product and contribute to the value chain of products or companies Beside R & D, production technology level has a very important role For many areas the development of production

technology has enormotis significance to determine the final value of the value

chain

training, development and pay for staff [1K Management is important activities in every link in the process of creating value In fact any business that is really

interested in IIR development and manayement issues will create the difference in the market and get the long-term competitive advantage

planning, finance, accounting, legal support, relationships with other agencies of the

Government to support the entire value chain

Like the basic activities, support activities are reviewed in relation to the

capacity of rival business Accordingly, each enterprise must evaluate each of its activities is in the superior, equivalent or lower level

Current strategy Analysis:

When analyzing the strategy, first describes the current strategic business units

(competitive strategy) and enterprise (company strategy) The strategy description is focused towards product strategy - customers, competition and logical point of Strategy

Company Straicgy: Yo understand the strategy of the company, it should review its business units geographic scope Consideration by considering whether

or not companies have focused on individual business If no such need to consider

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necessary to determine whether or not the business unit related to each other If so,

it should consider relevance So we will recognize business units that are most

important (waits get more resources allocated) or get the greatest commitment

Product - Customer Strategy Need identifying in the business center on

product - customers segments

Strategic perspective of business competition should understand whether the

competitiveness of enterprises as strategic direction Icading cost, or strategy to create a difference, or mixed In this section, it should identify the principal means

that businesses use to reduce costs or increase demand In other word, what are the key activities in the value chain,

Functions strategy What types of functions are being done by business, which activities must be joint venture, activities that must be linked and influence of

each operation against profit

Finally to consider the level of conformity between strategic levels

Financial performance Analysis:

Analyze financial performance through the parameters: Profitability, liquidity quickly, using economic advantage, and operating parameters For enterprise, financial performance 1s not the only targets but also need to acknowledge that if require sustainable development, it must be profitable

1.3 SWOT Analysis

Every organization has its own weak and strong points in its function parts There is no enterprise that has the same weak and strong points in every field These weak and strong points opportunity challenge brings about the basic for

benchmarking goals and strategy Estimation of internal environment is evaluation

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strong points are premises lor utilizing strong points and eliminating weak points The use of SWOT matrix is suitable and necessary for collecting this analysis

Table 1.2: SWOT matrix (Strength, Weakness, Opportunity, Threat)

T

To build SWOT matrix first is to list out Strengths Weaknesses, Opportunities

and Threats in priority arrangement, then comparing systematically each responsive level to make combinations

S/O combination is the combination of Strengths and Opportunities of the

enterprise The enterprise should make advantage of Strengths and Opportunities to

compete with other enterprises, expanding its own market

W/O combination is the combination of Weaknesses and Opportunities of the enterprise This combination opens the chance of overcome Weaknesses by take

advantage of Opportunities

S/T combination is the combination of Strengths and hreats of the enterprise, it

should be noted to use Strengths to overcome Threats

W/T combination is the combination of Weaknesses and Threats of the enterprise This combination requires enterprise to eliminate Weaknesses and avoid

Threats by prevention strategies

1.4 Strategic control and evaluation

Strategic control is the system to officially set up goals; measure and feedback that enable strategic managers evaluate whether or not the company gains great efficiency, quality, and innovations, meet customers’ demands and concretize its own strategy.

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{fective donto system normally has 03 characteristics: Flexibility to change unpredicted events: Supply correct information on organization's operation: Supply information to managers In lime

Steps for Strategic control and evaluation:

- Establish to evaluate the implementation:

- Establish control and measure system to show whether or not the standards and goals are gained;

- Compare current implementation and preset goals:

- Adjust upon the failure of standards and goals

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2.1 Introduction to the Institute:

2.1.1 General introduction

lechnology

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2.1.2 Position, roles and functions:

The Institude is established according to the decision No 516/TTg, issued on July

11th 1997 by Prime Minister The Institude is the pilot State training and research

Vietnam Post and Telecommunications Group) The institude is a career unit that has income, juridical personality, headquater in Hanoi and subsidiary in Ho Chi Minh City

Main function of the Institute is training and con)posing scientific researches on

post and telecommunications, electronic informatics that serve for the development

of Vietnam post and telecommunication Ihe institude also composes researches and delivering training for olices and organizations outside VNPT to serve for various

requirements in soiety through mechanism of ordering, auctions, and_ selection

through economic contracts

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The Institute is the State training and research organizations that belongs to

VNPT, therefore, the organization is affected by State regulations for public training organizations and carcer units that has income in State enterprise Organization model of the Institute at present includes: 5 underlying units are career units that

have income (2 short-term training centres in Hanoi and Ho Chi Minh City, 3

research units that headquarter in Hanoi): 2 long-term training centres (university and postgraduate in Ha Dong (no seal) and Ho Chi Minh city (seals are modified seals of the Institute In the training unit in Ha Dony there are 6 faculties with 11 departments: 02 non-official training centre (self-accounting); 03 health centres and

Ol station that take care to health of staff and students in the Institute In the subsidiary in Ho Chi Minh city, there are 5 faculties with 8 departments; 9 asistant divisions (teams and groups)

Offices in the Institute include management board and 9 functional departments

controlling operation of the Institute and underlying units according to State

regulation for the units that have income as well as to the requirements in a

training courses and departments in the Institute | p to now, the amount of regular students has reached about 16.000 The rate o! graduated students to have

suitable jobs is about 95%

Short-term courses of training and improving knowledge level to create

workforce for Post Pelecommunication and Information Technology (mainly for

the group) increased from 18.000 passer-by/week in 2000 to 33.6200 in 2008

Centres and training units in the Institute are initiatively and active to widen scale (number of class students and majors) according to traditional style as well

as implement quickly projects to verify advanced training formats, such as JICA,

university through IP network

2.1.4.2 Scientific research:

The Institute has followed national and sectional scientific technology strategy in carying out researches Ihe Institute has approved to be the leading national research centre of post and telecommunication In the period of 1997-2008, 1857

topic and science missions of all levels in which 15 topics of State level, 209 of Ministry level and 901 topics and missions of Group level (VNPT), 243 topics of Institute level and 443 scientific researches of students Annually, more than 100 other topics on average are implemented by the Institute

2.1.4.3 Technology transfer

- Many research results have been implemented directly to serve for the

purposes of management and business in post and telecommunication network, such

as VINEX - 1000 total exchange automated integrated for post information service

(MUCOS), charging and billing softwares, management computer network for

Group in more than 60 provincal post offices, peripheral management network on the basic of map technology GIS (CAP MAP/GLS), ete

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25 DE Sh BF strength and weaknesses the Institute

2.2.1, Institute's products

2.2.1.1 College, university and postgraduate training

- PhD degree (04 departments): Electronic engineering: telecommunication engineering: computer engineering: data transmission and computer network

administration; computer engineering: data transmission and computer network

- Regular university (04 neanh): Telecommucication engineering: business adinistration: Information Pechnology: Electric-electronic engineering

- In-office university (02) Cepartments): Telecommucication engineering;

business adinistration

Before 2007, these above training courses are organized according to the order from VNPT only Until 2007 are they organised according to social demands

Strong points:

- Departments that are being trained in the Institute are the one that VNPT have

fruitful demand, therefore experienced There are many leading professors and

doctors who are working in VNIl are teaching in the Institute

- The Institute is a career unit that belongs to VNPT and pilots the model of

combining training, research and manufacture, therefore students have chances to

practising on the business neiwork of VNPI Graduated students have high

practical knowledge In addition, lecturers also have many chances to access new technology to update

- Postgraduated students are decide dby VNP! therefore mainly accepted to

work in VNP'T members Ratio of students that have suitable jobs is about 95%

2.2.1.2 Training courses

+ Training courses:

- Training courses on technology

- Training courses on new technology

- Training courses on profession + Remote training

Y Remote uni crsity

Y Online remote training Short-term courses of training and improving knowledge, level to create workforce for Post, Telecommunication and Information Technology (mainly for

the group) increased from 18.000 passer-by week in 2000 to 33.6200 in 2008 Centres and training units in the Institute are initiatively and active to widen

scale (number of class, students and majors) according to traditional style as well

as implement quickly projects to verify advanced training formats, such as JICA, ISDN online remote training intenational training program, E-learning university through IP network

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unit of VNPT so it occupies 100" raining and recreating market share of VNPT

- Posts & Telecomimiunications Institute of | echnology (PTTL) is the leader in

the field of information techno ogy telecommunication economy and post Therefore PTTT not only train human resource for VNPT but also for other telecommunication business such as, Viettel, Llano Telecom

learning They are modern training programs using hi-tech equipments which can

be implemented in the large scale and reduce the training fees

Disadvantages:

- PTIT is the unique institute which train human resource for post

telecommunication businesses and VNPT and the organization structure IS

adminstrative structure Therefore there is short of flexibility, self-controlling ability and competitiveness

2.2.1.3 Research area:

- The research focuses on:

+ Telecommunication:

technology solutions: new technology applications: standards, procedure

To research technology solutions for the equipment system of

telecommunication: develop software lor the equipment system of

telecommunication: research technology solution for post area

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research departments in PTIT have effectively implemented research activities in

order to meet the needs of PTI! and the market Now PTIT 1s the leader of our country in customer oriented research and research applications

- In fact, all the research theses in PITT are originated from the real needs of Post-telecommunication-information technology network And, the results of these researches, in their turn serve the network's management and operating procedures

There are also many research theses, which have high economic value It is

estimated that there are about 110% of science tasks and 31% of research theses are

now applied in the network

- PTIT is belong to a potential state own business, so, science research sources are stable

- the research environment is supported by professors researchers in the network, and, all researches are directly tested on the network

Disadvantages:

- In spite of being the training and research institute of information technology

and telecommunication, PTTT’s international co-operation is still limited In term of

operations with any organizations which are prestigious in the field of post and telecommunication Therefore, the research products are also still limited

- PTIT is short of long-term research Research products in PTIT are incoherent and unconnected

- During the research process, PITT is not really focus on the customers The

quality of the research products is not equal to the investment

2.2.1.4 Technology transfer

- Many results of the research are implemented directly in the production and management processes of the Post and ‘Tclecommunication network: to develop the computer network to serve administration, management and production activities

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offices, to manage peripheral network via GIS (CAP MAP/GLS )

2.2.2 Organization

2.2.2.1 Organization structure

PTIT was established in 1997 [1 is the pilot model to combine training, research

and production Up to now the organization structure has never been adjusted Advantages:

- Stable

Disadvantages:

- PTIT is belong to an economic business but operated under non-productive model, therefore, it is restricted by many state’s principles for non-productive unit

- PTIT is the pilot model to combine training research and production, but here

is no special mechanism lor the institute,

- Organization structure is not suitable with the business strategy; the functions

and mission are not clear: the management system and regulation system are need to

be reviewed and adjusted to motivate the labour force

It’s caculated that up to 31/01/2010 there are 897 staffs, lecturers, researcher