DEVELOP STRATEGY FOR THE POST TELECOMMUNICATION INSTITUTE OF TECHNOLOGY IN THE PERIOD OF 2015 2020

LIST OF FIGURESFigure 1.1: Overall strategic administration model Figure 1.2: Development process for business strategy Figure 1.3: 5 Forces model of M.. Porter Figure 1.4: Value chain m

DEVELOP STRATEGY FOR THE POST & TELECOMMUNICATION INSTITUTE OF TECHNOLOGY IN THE PERIOD OF 2015-2020

TABLE OF CONTENT

INTRODUCTION 9

1 T HE URGENCY OF RESEARCH TOPIC : 9

2 R ESEARCH OVERVIEW 10

3 T HESIS MISSIONS : 11

3.1 Thesis objectives: 11

3.2 Thesis missions: 11

4 R ESEARCH OBJECTS AND SCOPE 11

4.1 Research objects 11

4.2 Research scope 11

5 R ESEARCH METHODOLOGY 12

6 T HESIS ’ S ANTICIPATING CONTRIBUTIONS 12

7 T HESIS STRUCTURE : 12

CHAPTER I : THEORETICAL BASE 13

1.1 Concept of strategic administration 13

1.1.1 Concept of strategy: 13

1.1.2 Nature of strategy 14

1.1.3 Mission of strategy: 15

1.1.4 Characteristics of strategy: 16

1.1.5 Mission 17

1.1.6 Vision 18

1.1.7 Objectives 19

1.1.8 Internal environment 20

1.1.9 External environment 20

1.2 Developing strategy 20

1.2.1 Analysing external environment 21

1.2.2 Environment analysis: 27

1.3 SWOT Analysis 32

1.4 Strategic control and evaluation 33

CHAPTER II: ANALYZING STATUS AND PROPOSING STRATEGY 35

2.1 Introduction to the Institute: 35

2.1.1 General introduction 35

2.1.2 Position, roles and functions: 35

2.1.3 Operation: 36

2.1.4 Results of training and research activities in the Institute 36

2.1.4.1 Training activities: 36

2.1.4.3 Technology transfer 37

2.2 Analysis of strength and weaknesses the Institute 38

2.2.1 Institute’s products 38

2.2.1.1 College, university and postgraduate training 38

2.2.1.2 Training courses 39

2.2.1.3 Research area: 40

2.2.1.4 Technology transfer: 41

2.2.2 Organization 42

2.2.2.1 Organization structure 42

2.2.2.2 Employee: 42

2.2.3 Operation principles of the Institute 44

2.2.4 Financial potentials and material bases of the Institute 46

2.3 Analysis of commercial environment of Institute 50

2 4 Internal analysis of the Institute: 58

2.4.1 Analysis of value chain: 58

2.4.2 Analysis of core competence 60

2.4.3 SWOT analysis of the Institute 62

CHAPTER III: DEVELOPING STRATEGIES, PROPOSING OPTIONS, SUGGESTIONS FOR THE INSTITUTE IN THE PERIOD OF 2015-2020 65

3.1 Developing strategies for the Institute 65

3.1.1 Message of Institute’s mission 65

3.1.2 Institute’s vision 65

3.1.3 Strategy of the Institute in the period of 2010 - 2012 66

3.1.3.1 Strategy of products and servicse 66

3.1.3.2 Institute’s innovation strategy on organization 70

3.1.3.3 Income and yield strategies of Institute 72

3.1.3.4 Quality control strategy by internal standards 73

3.1.3.5 Strategy to Unite "PTIT" trademark 74

3.1.3.6 Strategy to improve sales system 75

3.1.3.7 Strategy on human organization 76

3.13.8 Financial management strategy 76

3.1.3.9 Strategy for relationship 77

3.2 Strategic solutions: 78

3.2.1 Institute Management : 78

3.2.2 Leading culture and strategy: 80

3.2.3 Plans: 81

3.2.4 Quality control: 83

3.3 Recommendations : 83

CONCLUSION 85

ABBREVIATIONS

BS : Business Strategy

IT : Information technology

P&T : Post and Telecommunication

PTIT : Posts & Telecommunications Institute of TechnologyR&D : Research and Development

SWOT : Strengths, weaknesses, opportunities and threatsVNPT : Vietnam Post and Telecommunications Group

WB : World Bank

LIST OF FIGURES

Figure 1.1: Overall strategic administration model

Figure 1.2: Development process for business strategy

Figure 1.3: 5 Forces model of M Porter

Figure 1.4: Value chain model

Figure 2.1: Competitive active force of the Institute

Figure 3.1: Overall strategy of the Institute

Figure 3.2: Defining model of business plan implementation program

LIST OF TABLE

Table 1.1: Steps to define business targets in enterprise

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

Table 2.1: Institute’s labor

Table 2.2: Some key financial targets in 2008

Table 2.3: Scale of public and unpublic students in the period of 2010-2014.Table 2.4: Enrolment statistics and training quality access in 2010

Table 2.5: SWOT analysis

Table 3.1: Revenue indicators of the Institute

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 andindustrialization State-owned schools were the only to be seen in the past, but nowVietnamese education is very abundant and various with a lot of training units,including private, and semi-public schools; research, and technology transfer unitsthat belong to all economic sectors, social, occupational and even foreignorganizations This serious development of training, research and technologytransfer in Vietnam is originated not only from the essentially objective economicdemands of diversifying and multilateralizing external economic relationships, butalso from the strong support of Party and Government A number of decrees,policies, and methods are important clues in management and improvement oftraining, research and technology transfer all over the country, boosting up thenational career of training, research and technology transfer

However, due to the shifting economy, Vietnam is now coping with somedifficulties In general, market factors have not been defined completely incombination with State economic management is under innovation, in appearance,methods and contents to fit with State functions in market economy In thisbackground, training, research and technology transfer in our country are now just

in the stage of switching and developing Many activities of training, research andtechnology transfer have not been executed or have not called much attention fromeconomic sectors like domestic enterprises… State management in training,research and technology transfer has not met the requirements of economicdevelopment in general and support for enterprises in particular Especially, Statemanagement in training, research, and technology transfer is not properly efficientfor schools, institutes and enterprises

Post and Telecommunications Institute of Technology (hereinafter be calledInstitute) is established according to the Decision no 516/TTg, issued on July 11th

1997 by Prime Minister Post and Telecommunications Institute of Technologybelongs to the Vietnam Post and Telecommunications Group (formerly, VietnamPost and Telecommunications Corporation) and operates towards the purpose ofcombining research and training activities to meet the actual demands of business.This is the pilot model to form mechanism to mobilize resources (both in economicsand actual environment) from developed State-owned enterprises for the activities

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

However, being a State career unit that belongs to Post and TelecommunicationsGroup 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 trainingand business – a University belongs to enterprise, it does not receive any specialmechanism Organization is changed slowly; training and research activities arerather separate, therefore the relationship between training and research that canbuild 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 justmention 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 oforganization 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 2015-2020” The thesis will clarify kinds, methods, and content of the

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, thethesis will clarify the overall strategy and the components of that overall strategy forthe Institute in market economy in the period of 2010-2012

4 Research objects and scope

4.1 Research objects

Theoretical and practical problems in the overall strategy relating to training,research, and technology transfer of Post and Telecommunications Institute ofTechnology

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 managementoffices of education and training, scientific researches; but also for State enterprisesrelating to training, research, and technology transfer to improve the roles andoperational effects of research and training organizations in international economicintegration

- In practice, the thesis will contribute to the actual management, andoperation of training, research, and technology transfer of Post andTelecommunications 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

CHAPTER I : THEORETICAL BASE

1.1 Concept of strategic administration

1.1.1 Concept of strategy:

In normal concept, strategy 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 and make use of force of a nation or an alliance of nations to ensure and increase effectiveness for our own benefits”.

Nowadays, concept of strategy is used commonly and considered as the basic for

operation of trading enterprises There are many strategy concept such as strategy 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 andbusiness results, including human resource, organization, management, technique,and treatment methods The effective combination of these factors will supportstrategic directions and perfect service provision This is a continuous activity toestablish and maintain strategic directions and business of an organization; dailydecision-making to solve the immerging problems and business challenges As apart of strategic idea about business development, enterprises should point out adetail direction However, this operational direction can be changed by following

impacts on policy (new targets) or on business (increasing service demand) Thisalso 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 withother partners is changing

Typical strategic administration model:

Figure 1.1: General strategic administration model

External analysis, defining opportunities/

risk

Internal analysis, defining strong/wek points

Adjusting business mission

Measurin

g and assessing results

Resource distributi

on

Building annual targets

Building long term targets

Selecting pursuing strategies

Building policies

making

Strategy-Sstrategy implementing

Strategy evaluating

Business strategy shows the concept of value from the enterprise, the spirit ofthe management board, the evaluation of managers about the objective andsubjective context of the enterprise Only when the managers evaluate accuratelythe 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 onthe certain targets, rearrange an effective and competitive management system If

an enterprise just imitates the other, it can not get a real and sustainabledevelopment Therefore, developing a business strategy must base firstly on the realsituation of the enterprise Two enterprises can be at the same region, the sameproducts, the same scale but the business strategies can not be entirely the same astheir subjective context are different At the same time, the creativeness inmanagement must be connected with that of organization and technology so thatbusiness strategy can be effective

Business strategy is the action plan of the enterprise The development ofstrategy is important, but its implementation is even more If the strategy is notimplemented, it is nonsense In order for the strategy to be executed, the whole staffshould know clearly about the strategy, and change it into annual and partial plansthat are feasible

Business strategy shows the competitiveness of the enterprise When developingthe strategy, enterprise should analyse its own objective context, opportunities andthreats The subjective context also needs tobe analysed to show the enterprise’sstrengths as well as the weaknesses Business strategy of the enterprise mustcombine the opportunities that objective context brings with enterprise’s strengths

as well as overcome the threats and weaknesses of the enterprise Only in this waycan a good business strategy be drawn out

1.1.3 Mission of strategy:

Strategic administration is very important because enterprises always have tosolve efficiently all immerging challenges, including both opportunities anddifficulties Nowadays, organizations are towards external-orienting servicesupplying, a basic conversion from traditional internal-orienting one Meanwhile,big opportunity of innovation may appear from communication informationtechnology as well as available financial sources

There are 5 closed missions of strategic administration:

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

- Establishing goals – converting strategic perspective into detail results thatmust 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 objectiveenvironment Overall characteristic of trading strategy is shown in 03 aspects: beingsuitable to overall trend of enterprise, being direction creed for all enterprise’sactivities; 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 efficiencywas not so high One reason for this situation is lack of development trend ofenterprises Therefore, if we want to develop TS, we have to ensure the prediction

of development trend in economy, technique of society A successful strategyusually is based on correct prediction

Competitiveness: Without competitiveness, TS to develop and implement is

unnecessary Therefore, competitiveness is the most characteristic of TS In thismodern time, there is no enterprise working n an environment withoutcompetitiveness TS shall concentrate on how to make advantage to compete andgain the win

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 Thelonger time duration of strategy is, the more unstable factors of objectiveenvironment has The risk requires enterprise to stand high and see far, with carefulwatch 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 toolong 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 allenterprises who can do that gain success and development However, technicalachievement and market competitions are unlimited so enterprises should updatenew technologies Technical creation is an important measure to ensure theexistence and development, which is also an important characteristic on TS of smalland medium enterprises

Relative stability: TS of enterprises shall be relatively stable in a certain period.

Otherwise, it will be meaningless with practical activities of enterprises Objectiveenvironment and practical activities of enterprises are moving continuously TSshould also be adjustable to be suitable to objective environment; it cannot be oneside 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:

- Customers: who use the products

- Products/Services: what the enterprise’s main products/services are

- Market: where the enterprise compete

- Technology: technology is the biggest concern in the enterprise or not

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

- Self evaluation: what enterprise’s competitive advantages are

- Public image concern: the enterprise care about its public image or not

- Employee concern: the enterprise treats its employees well or not

- Business plan process

Table 1.1: Steps to define business targets in enterprise

step 3

reviewthe ideaabout thebusinessmission

step 4

build thebusinessmission

step 5

assess thebusinessmission

step 6

implemen

t thebusinessmission

step 7

checkandadjustthebusinessmission

1.1.6 Vision

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

The basics of the vision are:

- Managers

- Customers

- Employees

The vision ensures:

- To be simple, clear and straightforward

- To enable big changes and attract human resource

- To gather resources

- To be reviewed by senior managers

1.1.7 Objectives

To establish strategic objectives:

- Long-term objectives (over 3 years)

- Annual objectives (under 1 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 tocontribute to the overall objectives

The common long-term objectives comprise:

- Profit

- Business efficiencies

- Competitive advantages

- Human resource development

- Relationship with employees

- Technological Leading capability

strategy implementation They follow the SMART principle (Specific, measurable,assignable, realistic and time-bounded).

1.1.8 Internal environment

Internal environment is the environment within the enterprise, includes availableresources, such as, visible resources (finance, human, organization…) and invisibleresources (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 òthe enterprise

(4) Selecting strategy basing on resources, abilities, and key competence tocope with threats and utilize the opportunities in external environment

(5) Implementing strategy

The mission of analyzing the internal and external environment and thenselecting suitable strategy are being seen as strategic mission Strategyimplementation includes designing the organization and controlling system to takethe strategy into operation

Developing business strategy is the collection of activities that change incomeinto outcome The strategy is based on the enterprise’s mission This missiondefines the business target and what to be done Basin on this mission, themanagement board can point out targets These targets present clearly the mission

of organization and are used to develop action plan and access the process Thesetargets are lead by practices in environment

The process of developing strategy is shown as follow:

Figure 1.2 – Process of developing business strategy 1.2.1 Analysing external environment

The strategy must base on the anticipating environment conditions; therefore,

good strategy administration depend much on the knowledge of environmentconditions that the enterprise is facing with External environment that theenterprise often cope with includes macro and sectorial environment

a/ Macro environment: In fact, all enterprises and sectors are in a wide macro

environment, including 6 segments: economy, technology, social culture,anthropology, policy and globalization Changes in macro environment can impactdirectly on any forces in any sector Therefore, it can affect other forces and even

With the business environment in Vietnam, according to the evaluation ofWorld Bank (WB) in the report on doing business 2008, Vietnam ranks the 91thposition 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, sincethe establishment to disintergaration of an enterprise (the criteria of establishing,licensing, recruiting and sacking, asset registering, loan borowing, investorprotecting, tax paying, global trading, contract implementing, enterprisedisintegrating) According to the evaluation of WB, in 2008, business environment

of Vietnam has been improved considerably, but there remain many problems thatneed to be solved to facilitate the existance and sustainable development of theenterprise

b/ Analysing sectorial environment

Sectors are different in ecnomic, competitive characteristics, profit potentials inthe future economic characteristics depends on the factors, like scale, market

growth, technology change, geographic barriers of markets (local or global),

number and scale of customers and sellers, product scale of sellers, distributionstyles… The competitiveness in different sectors is also different In addition,sectors are also different in competitiveness focal points; it can either be price orquality…

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 competitivenessconditions that the enterprise is facing to, the way to form the accordance betweenthe resources and ability with the available conditions

In order to analyse sectorial factors that directly affect enterprise’s operation,the model of 5 forces of Micheal E Porter is the most effective

c/ The model of five competitive forces:

Micheal E Porter has found out 5 factors that affect most the competitiveness

in an industry, supporting the admnistrator to realize the opportunities as well as thethreats that the enterprise must cope with in a sector:

- Threats from new competitors,

- Negotiability of suppliers,

- Negotiability of customers,

- Threats from alternative products and services,

- The competitiveness intensity in the sector.

However, there are some advantages and disadvantages when this model is appliedinto special case of a certain enterprise Therefore, the most important when usingthis model is the accurate definition of each factor in the model:

Figure 1.3 –Model of 5 forces of M.Porter

The competition model shows that when the competition is high, the ability ofenterprise 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, asuitable 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 Economistspoint out that alternative products are flexible When the price of a product

Risk of competitors

Competitors in thesame sectorNegotiability

of sellor

Ability ofmakingbargain ofsellor

Ability of making bargain of customer

Risk of competitors

Negotiability ofcustomers

New potentialcompetitors

Alternativeproducts

increases that raise the demand for the alternative product, these two products can

be considered to be the alternative

One very important thing for an enterprise to analyse the competitors in thesame sectors is that it must know exactly the attitude of these competitors towards itand other companies in the same sector The enterprise should collect informationabout the strategies, targets, strengths, weaknesses and reactions of the competitors.The enterprise needs to know the strategy of each competitor to foresee the methodsand reactions When the enterprise knows the strengths and weaknesses of thecompetitor, it can complete the strategy to utilize the weaknesses and avoidstrengths of the competitors Many enterprises run the same business in a sector, sothe enterprise must balance its resources to complete its own strategy Enterpriseshould know exactly about its competitors: Who are their competitors? How aretheir 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 ofcompetitors 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’snumber, 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 control thecompetitiveness in the sector through decision-making Customer of an enterprisecan either be an end-user of the products or the distributor to end-users likeagencies When analyzing, the enterprise should pay attention to customer’simportance The advantage of analyzing the competition pressure from customershelp the enterprise to define the scale and importance of the sector However, if theinformation about customers is not accurate, the scale of sector can easily be wrong

Negotiability of supplier Number and scale of the suppliers decide the

competitiveness pressure, their negotiation rights in the sector The supplier can betreated as a threat when they can raise the price or decrease the quality of materialinput 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 higherquality However, the ability of suppliers with enterprise depends on the relativerights 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 ofalternative products shows a competition that limits the ability of setting high price;therefore reduce its ability of creating profit The threats from alternative productsincrease when:

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

- The price of alternative products is better,

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

in the same strategice group is often stronger than the competition with foreignenterprises and enterprise in the same group of strategies often have similarpositions on market, with similar product, the similar action strategy

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

competition in a sector to identify opportunities and threats However, this modelhas limitations, namely: Suppose competition painting with numbers in the pastoverlooked the role of improvements; ignore the importance of differences in eachindividual company while too stressed about the structure of industry, strategicgroup.

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 toevaluate what competitors are doing, what competitors’ leaders are saying.Simultaneouslee evaluation of geographical distribution of market, strategic intentand objectives of market share, competitive position in the industries' strategicgroups, the ability to accept risk, the latest step to strike or defense

To analyze competitors, enterprises must evaluate which enterprise to play theimportant role in the industry in the future, which enterprises will lose its importantrole in the future? The determination of the opponent will help to predict the stepsthe opponents

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

1.2.2 Environment analysis:

The main purpose of environmental analysis within Enterprise is to identifypotential sources of existing and create sustainable competitive advantages ofenterprises

Competitive advantages Enterprises can achieve competitive advantage and

achieve profitable above average if their core competence is taken advantage,

aggregated and used as leverage However, the core capability is only competitiveadvantage if the company can keep its disciplines and principles The level ofstrategice competitive advantage depends on the ability to confront the potentialcompetition against the major transformation of the environment, depends on theability to replace core capacity and depends on the difficult level that competitorsface 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 sustainablecompetitive advantage if it can maintain high profit rate in long period Two basicfactors indicated a competitive advantage are the amount of value that customersfeel about goods or services of the company, and its production costs Thus, factorscreatin a competitive advantage are efficiency, quality improvement and customerssatisfaction

When analyzing the environment within the enterprise, the administrationfocused on analysis of sustainable competitive advantage, analysis of currentstrategy 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, notlisted resources

Value chain analysis will enable the strategic planers of classify valuableresources of the company to identify their competitive advantage Value chainanalysis will enable enterprises to understand which chains create value for their

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

to their competitors but with lower costs (low-cost strategy); or how to produce the product that customers want to buy at higher prices (differenteate strategy)

Cơ sở hạ tầng của công ty

Quản trị nguồn nhân lực

Phát triển kỹ thuật

Cung ứng

Figure 1.4 Valued chain model

Usually you can use four steps to analyze the value chain:

- Identify associated factors with the use of a sequence diagram of goods;

- Description of what the business done at each operation;

- 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 theoreticalmodel

When analyzing the value chain, analysis of the ability to create value of the basicactivities including:

- Internal Logistics: Activities related to materials treatment, warehousing,

- Production: Including activities necessary to convert the input of logisticsprocess supply into final product.

- External Logistics: Including activities related to collecting, storing andtransporting the final product

- Marketing & Sales: Includes activities to ensure the most effectivelyimplementation of exchange of goods and services on the market The work isfocused primarily on the basic stages of marketing-mix combination: Marketresearch, product development, pricing policy formulation, setting up distributionchannels 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 thecompany's products Beside materials it need to mention the tools and means ofproduction such as factories, machinery, laboratories, materials necessary for theoffice as well as other conditions for producing These activities are being done

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

- Technology development: Including activities necessary to improveproduct value and processes used to manufacture products The concept oftechnology is understood broadly, including production technology andmanagement technology, which tie closely together and create value for business.Technology development includes research and development (R&D), this is the

important activities contribute to create new value for the product and contribute tothe value chain of products or companies Beside R & D, production technologylevel has a very important role For many areas, the development of productiontechnology has enormous significance to determine the final value of the valuechain.

- HR Management: Including activities related to recruitment, employment,training, development and pay for staff HR Management is important activities inevery link in the process of creating value In fact, any business that is reallyinterested in HR development and management issues will create the difference inthe market and get the long-term competitive advantage

- Infrastructure of Business: Includes activities such as general management,planning, finance, accounting, legal support, relationships with other agencies of theGovernment 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 ofstrategy

Company Strategy: To 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 considerthe level of vertical integration and diversification If business diversifies, it isnecessary 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 (units 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 leading cost, or strategy tocreate a difference, or mixed In this section, it should identify the principal meansthat businesses use to reduce costs or increase demand In other word, what are thekey 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 ofeach operation against profit

Finally to consider the level of conformity between strategic levels

Financial performance Analysis:

Analyze financial performance through the parameters: Profitability, liquidityquickly, using economic advantage, and operating parameters For enterprise,financial performance is not the only targets but also need to acknowledge that ifrequire 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 Theseweak and strong points, opportunity/challenge brings about the basic forbenchmarking goals and strategy Estimation of internal environment is evaluationall fields of the company, the relationships between parts, pointing out weak andstrong points are premises for 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)

SWOT matrix Opportunities (O) Threats (T)

Strengths (S) S/O combination S/T combination

Weaknesses (W) W/O combination W/T combination

To build SWOT matrix, first is to list out Strengths, Weaknesses, Opportunitiesand Threats in priority arrangement, then comparing systematically each responsivelevel to make combinations

S/O combination is the combination of Strengths and Opportunities of theenterprise The enterprise should make advantage of Strengths and Opportunities tocompete with other enterprises, expanding its own market

W/O combination is the combination of Weaknesses and Opportunities of theenterprise This combination opens the chance of overcome Weaknesses by takeadvantage of Opportunities

S/T combination is the combination of Strengths and Threats of the enterprise, itshould be noted to use Strengths to overcome Threats

W/T combination is the combination of Weaknesses and Threats of theenterprise This combination requires enterprise to eliminate Weaknesses and avoidThreats by prevention strategies

1.4 Strategic control and evaluation

Strategic control is the system to officially set up goals; measure and feedbackthat enable strategic managers evaluate whether or not the company gains greatefficiency, quality, and innovations, meet customers’ demands and concretize itsown strategy

Effective control system normally has 03 characteristics: Flexibility to changeunpredicted events; Supply correct information on organization’s operation; Supplyinformation to managers in time

Steps for Strategic control and evaluation:

- Establish to evaluate the implementation;

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

- Compare current implementation and preset goals;

- Adjust upon the failure of standards and goals

CHAPTER II: ANALYZING STATUS AND PROPOSING STRATEGY

2.1 Introduction to the Institute:

2.1.1 General introduction

- Name : Học viện Công nghệ Bưu chính Viễn thông (PTIT)

- English name : Posts & Telecommunications Institute of

Technology

- Short name : PTIT

- Headquarter : 122 Hoang Quoc Viet – Cau Giay – Hanoi

- Telephone : (04) 37.562.186

- Fax : (04) 37.562.036

- Website: : http://ptit.edu.vn

2.1.2 Position, roles and functions:

The Institude is established according to the decision No 516/TTg, issued on July11th 1997 by Prime Minister The Institude is the pilot State training and researchunit that belongs to Vietnam Post and Telecommunications Corporte (currently,Vietnam Post and Telecommunications Group) The institude is a career unit that hasincome, juridical personality, headquater in Hanoi and subsidiary in Ho Chi MinhCity

Main function of the Institute is training and composing scientific researches onpost and telecommunications, electronic, informatics that serve for the development

of Vietnam post and telecommunication The institude also composes researches anddelivering training for ofices and organizations outside VNPT to serve for variousrequirements in soiety through mechanism of ordering, auctions, and selectionthrough economic contracts

2.1.3 Operation:

The Institute is the State training and research organizations that belongs toVNPT, therefore, the organization is affected by State regulations for public training

model of the Institute at present includes: 5 underlying units are career units thathave income (2 short-term training centres in Hanoi and Ho Chi Minh City, 3research units that headquarter in Hanoi); 2 long-term training centres (universityand postgraduate in Ha Dong (no seal) and Ho Chi Minh city (seals are modifiedseals of the Institute In the training unit in Ha Dong, there are 6 faculties with 11departments; 02 non-official training centre (self-accounting); 03 health centres and

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

Offices in the Institute include management board, and 9 functional departmentscontrolling operation of the Institute and underlying units according to Stateregulation for the units that have income as well as to the requirements in auniversity

(Current model of the Institute is in the appendix 1)

2.1.4 Results of training and research activities in the Institute

2.1.4.1 Training activities:

In term of training level, department and catogeries, the Institute is allowed byMisnistry of Education and training to provide PhD, Master, University andcollegues levels including Electronic technique, telecommunication technique,computer technique, data transmission and computer network Besides, Institutealso provide internet training and knowledge improvement

Since establishment, There have been 15.913 pupils and students attendingtraining courses and departments in the Institute Up to now, the amount ofregular students has reached about 16.000 The rate of graduated students to havesuitable jobs is about 95%

Many PhD and master courses have been organised with the total amount of PhDstudents of 43 and master students of 294 These students are working indifferent fields of post and telecommunication, mainly in Vietnam Post andTelecommunications Group (VNPT)

Short-term courses of training and improving knowledge, level to createworkforce for Post, Telecommunication and Information Technology (mainly forthe 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 widenscale (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-learninguniversity through IP network

2.1.4.2 Scientific research:

The Institute has followed national and sectional scientific technology strategy incarying out researches The Institute has approved to be the leading nationalresearch centre of post and telecommunication In the period of 1997-2008, 1857topic and science missions of all levels in which 15 topics of State level, 209 ofMinistry level and 901 topics and missions of Group level (VNPT), 243 topics ofInstitute level and 443 scientific researches of students Annually, more than 100other topics on average are implemented by the Institute

2.2 Analysis of 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

- Master degree (04 departments): Electronic engineering; businessadministration; computer engineering; data transmission and computer network.

- Regular university (04 ngành): Telecommucication engineering; businessadinistration; Information Technology; Electric-electronic engineering

- In-office university (02 departments): Telecommucication engineering;business adinistration

Before 2007, these above training courses are organized according to the orderfrom 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 havefruitful demand, therefore experienced There are many leading professors anddoctors who are working in VNPT are teaching in the Institute

- The Institute is a career unit that belongs to VNPT and pilots the model ofcombining training, research and manufacture, therefore, students have chances topractising on the business network of VNPT Graduated students have highpractical knowledge In addition, lecturers also have many chances to access newtechnology to update

- Postgraduated students are deciđe dby VNPT therefore mainly accepted towork in VNPT members Ratio of students that have suitable jobs is about 95%.Weak points:

- Training mode: basically the Institute trains according to VNPT’s demand, theopening other disciplines is not and advantage because it needs to develop lecturers

as well as increase fee According to policy of Ministry of Education and Training,the curren tuition fee does not meet training fee State budget has to compensateVND 5,400,000.year for a student

- Capacity of lecturer, finacial potential are good, but Institute can not expandtraining number because it will lead to the increase in investment of VNPT but alsoincrease the number of unemployed students after graduation

2.2.1.2 Training courses

+ Training courses:

- Training courses on technology

- Training courses on new technology

- Training courses on profession + Remote training

 Remote university

 Online remote trainingShort-term courses of training and improving knowledge, level to createworkforce for Post, Telecommunication and Information Technology (mainly forthe 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 widenscale (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-learninguniversity through IP network

Strengths:

- The Institute is a research and training unit of VNPT, therefore, the Instituteregularly accesses, researches on new options and technology in the field of postand telecommucications Basing on that, training courses are developed formembers of VNPT

- Number of current labour in VNPT is about 90.000 in which 75% vocationallabour and 35% graduated and postgraduated labour Typical characteristics of postand telecommunication is fast technology change, therefore, the demand of rainingand recreate staff for VNPT is vety great Mean while, Institute is the oly trainingunit of VNPT, so it occupies 100% training and recreating market share of VNPT

- Posts & Telecommunications Institute of Technology (PTIT) is the leader inthe field of information technology, telecommunication, economy and post

Therefore, PTIT not only train human resource for VNPT, but also for othertelecommunication business, such as, Viettel, Hanoi Telecom…

- PTIT have many types of training programs, such as, remote learning, learning… They are modern training programs using hi-tech equipments which can

E-be implemented in the large scale and reduce the training fees

Disadvantages:

- PTIT is the unique institute which train human resource for posttelecommunication businesses and VNPT, and, the organization structure isadminstrative structure Therefore, there is short of flexibility, self-controllingability and competitiveness

To consult, design; assess and evaluate the internet quality

+ Economy:

To research and develop the system of economic theory; build plans,strategies; research the market, legal procedures; develop managementmechanism of post telecommunication

+ Information technology-communication

To research technology solutions for the equipment system oftelecommunication; develop software for the equipment system oftelecommunication; research technology solution for post area

Advantages:

- Promoting the research tradition of many specialist research departments,research departments in PTIT have effectively implemented research activities in

order to meet the needs of PTIT and the market Now, PTIT is the leader of ourcountry in customer oriented research and research applications

- In fact, all the research theses in PTIT are originated from the real needs ofPost-telecommunication-information technology network And, the results of theseresearches, in their turn, serve the network’s management and operating procedures.There are also many research theses, which have high economic value It isestimated that there are about 110% of science tasks and 31% of research theses arenow applied in the network

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

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

Disadvantages:

- In spite of being the training and research institute of information technologyand telecommunication, PTIT’s international co-operation is still limited In term ofscience research, PTIT have not yet established any long-term research co-operations with any organizations which are prestigious in the field of post andtelecommunication Therefore, the research products are also still limited

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

- During the research process, PTIT is not really focus on the customers Thequality 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 andmanagement processes of the Post and Telecommunication network: to develop thecomputer network to serve administration, management and production activitiesover 61 provinces and cities; to apply over 100 management software into postoffices, to manage peripheral network via GIS (CAP MAP/GLS…)…