The results of this study will evaluate the competitiveness of black tea producing enterprises in Thai Nguyen.. - Competitive advantages of the black tea producing enterprises in Thai Ng
Trang 1THESIS ABSTRACT FOREWORD
In conditions of development of the market economy, the competition issues in the domestic and international becoming strong and stiff, the requirements to improve the competitiveness of the tea enterprises are very essential In Thai Nguyen, there are a lot of enterprises involved in the production, processing and consumption
of black tea Therefore, the quality and price of the product are different Along with the trade liberalization on domestic and international markets, Thai Nguyen’s black tea products are also widely consumed, have significant contribution to the development
of the tea industry However, the black tea products also face many difficulties and challenges of competition in the production, processing and consumption… the competitiveness of the enterprises
is weak in the categories, designs, markets, and promotion activities Therefore, the evaluation of competitiveness and solutions proposal for black tea enterprises are very necessary Because of the above
reasons, I chose the thesis: “Improving the competitiveness of the black tea producing enterprises in Thai Nguyen province”
The thesis consists of 5 chapters:
CHAPTER I THE PROBLEM AND ITS SETTING
1.1 Overview of research
The thesis gave the system of the criteria reflecting the competitiveness of black tea producing enterprises in Thai Nguyen From the system of those criteria, the author uses it to evaluate the
Trang 2competitiveness of tea producing enterprises in Thai Nguyen as a typical study case The results of this study will evaluate the competitiveness of black tea producing enterprises in Thai Nguyen Then, the managers can apply and take measures to improve the competitiveness of enterprises
1.2 Statement of the problem
The thesis aims to improve the competitiveness of the black tea producing enterprises according to the observations of enterprises and customers It answers to the following questions:
- The position of the black tea producing enterprises in Thai Nguyen province in the markets today?
- Competitive advantages of black tea products as observed by the enterprises?
- Competitive advantages of the black tea producing enterprises in Thai Nguyen province as observed by customers?
- Are there significant differences between the observation of enterprises and customers about the competitive advantage?
- What’re the factors affecting the implementation of competitive advantage?
- The solutions can be introduced to improve the competitiveness
of the black tea producing enterprises in Thai Nguyen province to meet consumer demand?
1.3 Significance of the study
This study will help small and medium tea enterprises in Thai Nguyen assess aspects of competition to determine the strengths and weaknesses to enhance their competitiveness Furthermore, this study
Trang 3will help tea enterprises improve their competitiveness such as: market expansion, brand building and maximizing profits
- For tea industry: This study will help the tea industry to develop its products, from increasing the area to the production and consumption, thereby increasing the state budget, creating more jobs for local people and sustainable development
- For labor: This study will help the labor to increase their income, have stable life and many jobs
- For customers: This study will help the customers gain access the products conveniently and satisfy the demand
- For the researcher: This study will help to complete the DBA thesis, In addition, there is a document for the teaching of the author
- For community: When enterprises do business effectively, they will contribute to the state budget and social welfare
- The thesis assessed the current situation of black tea products in small and medium enterprises, determine its position in the export market Determine how to have efficiency in competition of the black tea products in small and medium enterprises Introduce a new competitive method for tea enterprises to improve their competitive advantages in the market
1.4 Scope and limitations of the study
* Time: From 2010 to 2012
* Space: Gather information about the black tea producing enterprises in Thai Nguyen Province and some black tea producing enterprises in the two provinces of Phu Tho and Tuyen Quang
Trang 4* Content: Study the basics:
- Focusing on a number of issues about the competitiveness of black tea producing enterprises
- The study analyzes the situation of the competitiveness of black tea producing enterprises in Thai Nguyen province
- Propose the solutions to improve the competitiveness for black tea producing enterprises
CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES 2.1 Concepts
From the theories and concepts competitiveness of products,
competitiveness of enterprises, national competitiveness, and the
thesis has taken the concept of competitiveness of enterprises as
follows: “Competitiveness of enterprises is the ability to maintain and improve competitive advantage in consuming products, expanding sales network; attract and use effectively the production factors in order to achieve high and sustainable economic benefits”
2.2 Related literature and studies
The thesis presents the works related to the research topic
2.3 Conceptual framework
Trang 5COMPE TITIVE NESS
OF BLACK TEA PRODU CING ENTER PRISES
IN THAI NGUY
EN PROVI
NCE
Competitiveness of black tea products in the enterprises
Efficiency of production and business
The market share of black tea producing enterprises
The productivity of the factors
The capacity
to attract financial resources
The ability to link and cooperate among black tea producing enterprises
Interest rate
Economic
Environment
Political and legal
Environment
Natural - Cultural
and Social
Environment
Scientific and
Technological
Envirriment
Suppliers of raw
materials
The
external
factors
The
internal
factors
The organization of
human resources
Infrastructure
resources
Marketing capacity
Financial Capability
The capacity for
research and
development
Substitute products
Trang 6CHAPTER III RESEARCH METHODOLOGY 3.1 Study area selection
Thai Nguyen province has 17,661 hectares of tea, ranked second
in the country with 39 tea producers, of which there are 7 black tea producing enterprises
To assess the competitiveness of black tea producing enterprises
in Thai Nguyen Province, we surveyed 7 enterprises in Thai Nguyen Province In addion, we conducted a survey of black tea producing enterprises in Phu Tho and Tuyen Quang provinces to compare
In Thai Nguyen province, the black tea producing enterprises meet a lot of difficulties in producing, processing and trading of tea products Particularly, the competitiveness of the enterprises is weak, not to promote the advantages of tea products The difficult problem now is to improve the competitiveness of black tea producing enterprises in Thai Nguyen province
3.2 Approach methods
To achieve the objectives given, the thesis used the approache system in the research This means considering the competitiveness
of enterprises not only use some single criterion but also use the system of criteria, referring to different aspects of the enterprise such as: position in the market and the appropriate response to the external impact of the business environment Competitiveness of enterprises can be represented through the indicators reflecting the internal force
of enterprise as: human resources, material and technical basis,
Trang 7financial capacity
Methods of collecting information
* Secondary information
The secondary information was collected from sources such as: books, newspapers, magazines, websites, and the final reports and from the workshops of departments, economic institutions and research agencies, related scientific works Thereby, carry ut the analysis and overview on the production, processing and consumption of black tea products and the competitiveness of black tea producing enterprises in Thai Nguyen province
* Primary information
The primary information is conducted by means of surveying the black tea producing enterprises There is a questionnaire ((Appendix 1) Details are as follows:
Table 3.1:The number of sample divided by form of ownership
Unit: Enterprise
ON Form of ownership
Sample Thai
Nguyen
Phu Tho
Tuyen Quang
3 Limited Liability company 2 2 1
Source: results of enterprises survey
Trang 8Table 3.2:The number of sample divided by capital scale
Unit: Enterprise
ON
1 Enterprises have capital from 6 to 8 billion 2
2 Enterprises have capital from 2 to 6 billion 2
3 Enterprises have capital under 2 billion 3
Source: Survey results
To assess the factors those are associated with black tea products as: tea quality, packaging, product categories We surveyed 100 customers in Thai Nguyen and Hanoi (Appendix 2)
3.3 Methods of data processing
3.4 Other methods
3.4.1 The descriptive statistical methods
3.4.2 Comparative method
3.4.3 Method of experts
3.4.4 Method of SWOT analysis
Trang 9CHPATER IV PRESENTATION ANALYSIS AND INTERPRETATION OF DATA 4.1 Status of competitiveness of black tea producing enterprises
in Thai Nguyen province
4.1.1 Competitiveness of black tea products in Thai Nguyen’s tea enterprises
a The market share of black tea products
Today, the black tea of Thai Nguyen went to many countries around the world However, it is noteworthy that can customers realize Thai Nguyen’s tea or not? While the majority of enterprises export in the form of raw materials, especially Thai Nguyen’s black tea hasn’t had brand positioning A number of enterprises said that,
in 2009 purchasing power reduced in most markets, tea export situation met a lot of difficulties Even the head enterprise in tea export is also difficult The decline in market share is due to the influence of the world economy According to the Department of Agriculture and Rural Development of Thai Nguyen, the market share of black tea of Thai Nguyen Province has improved but still limited This reflects the competitiveness of the black tea product in Thai Nguyen is low
b The quality of black tea products in Thai Nguyen
Trang 10Table 4.1 Customers’ reviews of black tea products’ quality of in
Thai Nguyen’s tea enterprises
Type of
tea
Thai Nguyen
The
number
of
people
Structure
(%)
The number
of people
Structure (%)
The number
of people
Structure (%)
The number
of people
Structur
e (%)
Source: Customer Survey Results 2012
c Product categories
Table 4.3 Some product categories in the black tea producing
enterprises
Province
Product categories
Black tea tradition
Black tea bag
Herbal black tea
Other black tea
Source: The survey of 2012 business
The above table indicates that the product categories in the businesses of black tea in Thai Nguyen province is more diverse than other businesses in Tuyen Quang province, but it is not varied by the type of black tea products in businesses in Phu Tho Province
On product labels: Through investigation we found 80.3% of
Trang 11state-owned enterprises for branded products, while 27.0% are businesses groups have branded the rate of the lowest product
d Price of black tea products
Table 4.5 Production costs and profits of black tea producing enterprises in Thai Nguyen according to the forms of ownership
Business State
Enterprise
Joint stock company
Limited Liability Company
Private Enterprise
Administration
expenses
VND/Kg
Depreciation of
fixed assets
Production
costs
VND/Kg
Source: Enterprise Survey Results 2012
The table shows that the cost of raw materials is very high, the cost of fresh leaves in state-owned enterprises accounted for 73.49%
of the total cost Joint Stock Company is trading 72.35% of the total cost Limited liability Company with the highest selling price at
Trang 1236,500 dong / kg and the profit that the company also achieved the highest compared with other enterprises
e Distribution system and consumption organizations
f Promotion activities
Table 4.8 The forms of advertising that black tea producing
enterprises applied
Unit: Percentage
Enterprise
Type
Thai Nguyen’s balck tea
Phu Tho’s balck tea
Tuyen Quang’s balck tea
Source: Enterprise Survey Results 2012
The table shows that enterprises in Phu Tho province have focused on promotional activities for its tea products Enterprises producing black tea in Thai Nguyen have higher activity than
PRODUCER
CONSUMER
retail dealer Channel 4
Trang 13advertising businesses in Tuyen Quang in the type of posters and conference guests This shows black tea products in Thai Nguyen almost no competition in the sales promotion activity, so businesses
do not have professional marketing team; this has made a big impact the consumption of the product
4.1.2 The efficiency of production and business of black tea producing enterprises in Thai Nguyen
Bảng 4.11 Margin / revenue of black tea producing enterprises in Thai Nguyen compared to black tea producing enterprises in Phu Tho and Tuyen Quang according to the forms of ownership in 2012
Unit: Percentage
Types of enterprises Thai
Nguyen
Phu Tho
Tuyen Quang
Private Enterprise 1,45 2,07 1,68
Limited Liability Company 1,55 2,4 1,34
Source: Enterprise Survey Results 2012
The table shows that margins per revenue is enterprises producing
of black tea in in Thai Nguyen of state-owned enterprises reached 3.05 in profit / 100 in revenue, lower than the rate profit / revenue of the enterprises producing of black tea in Phu Tho is at 1.10 in 2012 The main reason as to the effect of enterprises producing of black tea
in in Thai Nguyen is due to low management capacity of many businesses is limited scientific equipment obsolete technology
Trang 14There's also a number of causes from the environment also influence the impact, reducing the competitiveness of enterprises producing of black tea in Thai Nguyen
4.2 Factors affecting the competitiveness of black tea producing enterprises in Thai Nguyen province
4.2.1 Economy factors
4.2.2 Interest on loans
4.2.3 Political and legal factors
4.2.4 Factors of science and technology
4.2.5 The threat of substitute products and services
4.2.6 The organizational level and management of human resources
4.3 The strengths, weaknesses, opportunities and threats of black tea producing enterprises in Thai Nguyen
4.3.1 Strengths
- The black tea producing enterprises in Thai Nguyen engaged in manufacturing and trading in well known raw materials region in the country Being blessed land, climate and rely on farming experience,
so processing is the Thai tea tree industry is strong, tea products have good quality
- Production of tea leaves and tea consumption in Thai Nguyen is ranked second in the country and tend to increase The tea businesses in the area have abundant labor force, low labor costs Thai Nguyen tea is famous for good quality, state protection for the province's tea brand
- The production cost is low in fresh tea leaves and growers'