BUILDING STRATEGIES TO DIFFERENTIATE TILE PRODUCTS OF VIGLACERA THANG LONG JOINT STOCK COMPANY

BUSINESS REALITY IN VIGLACERA THANG LONG JOINT STOCK COMPANY 25 I.. BUILDING STRATEGIES TO DIFFERENTIATE TILE PRODUCTS OF VIGLACERA THANG LONG JOINT STOCK COMPANY III.. Viglacera Thang L

Chapter 1 THEORETICAL BACKGROUND

Chapter 2 BUSINESS REALITY IN VIGLACERA THANG

LONG JOINT STOCK COMPANY

25

I GENERAL INTRODUCTION ABOUT VIGLACERA THANG

LONG JOINT STOCK COMPANY

25

3 The main business activities, products and technology process 28

2 Sales

3 Finance

4 Investment and basic construction

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Chapter 3 BUILDING STRATEGIES TO DIFFERENTIATE TILE PRODUCTS OF VIGLACERA THANG LONG JOINT STOCK COMPANY

III IDENTIFYING VISIONS, MISSIONS, AND OBJECTIVES 54

1 Maximize the available resources to maintain stable production

and reduce production costs, maintain stable revenue and profits

59

2 Investment in repair, renovation or replacement of some major

equipment

59

consumption of the products.

Table 2.1: Production Results in 2010

Table 2.2: Revenues by regions

Table 2.3: Consumption by regions

Table 2.4: Average selling price by regions

Table 2.5: Revenue by product lines

Table 2.6: Consumption by product lines

Table 2.7: Average selling price by product lines

Table 2.8: Basic financial expense

Table 2.9: Analysis of competitive wall tiles

Table 2.10: Analysis of competitive floor tiles

33353535363637384546

Table 2.11: Analysis of competitors

Table 3.1: SWOT analysis

Table 3.2: Selecting strategy basing on GREAT model

Table 3.3: Prices of products

Table 3.4: Lists of investment equipment

47515657 61

LIST OF FIGURES

Figure 1.1: Simplest SWOT analysis model

Figure 2.1: Organization structure

Figure 2.2: Technology Flowchart

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1 The necessity of the capstone project report

In the business world, gaining competitive advantage and successfully competingagainst competitors is a challenge for any business Therefore, every business mustget a business strategy right, and then implement it effectively Business strategymust be built on the basis of accurate assessment, opportunities and challengesdelivered by the external environment as well as strengths and weaknesses in theinternal business

Viglacera Thang Long Joint Stock Company is an enterprise specializing inmanufacturing and trading ceramic tile products In the period of 10 years, thoughthere were many good conditions, Viglacera Thang Long could not achieve thedesired effects One of the main causes affecting the production efficiency ofViglacera Thang Long is the orientation and development of the product range

Through knowledge of strategic business management acquired during the

training program, we analyzed and suggested "Building strategies to differentiate tile products of Viglacera Thang Long Joint Stock Company" and selected as the

topic of our capstone project report

2 The aims of the capstone project report

The aims of the research are synthesizing, analyzing and proposing strategies, aswell as offering specific solutions to implement the strategies in Viglacera ThangLong Joint Stock Company

3 The subject and scope of the capstone project report

The range of issues affecting directly and indirectly to the business reality of ThangLong Viglacera as well as the influential factors in the process of building strategies todifferentiate the product range are discussed

Spacial scope: Viglacera Thang Long Joint Stock Company.

Time scope: The period from 2009 till the end of 2010

4 Report structure

This capstone project report consists of 3 chapters:

Chapter 1: Theoretical background of the building business strategies

Chapter 2: Business reality in Viglacera Thang Long Joint Stock Company

Chapter 3: Building strategies to differentiate tile products of Viglacera ThangLong Joint Stock Company

Through the above definitions, we can draw conclusions that strategy of abusiness is the combination of decisions and decisions relating to the choice offacilities and the allocation of resources to achieve goals.

Important goal of a business is to achieve a better strategic position than itscompetitors

2 Strategy classification

Basing on the different views, we should have correct identification of thestrategic level However, commonly strategies are divided into three levels asfollows:

Group-level strategies (Company-level strategies): Towards a general purpose and

scope of the organization, they are statements about long-term goals and thedevelopment orientation of that company or corporation

Business unit-level strategies: Related to how a company can successfully compete

in a market (or a market segment) It reflects the business’s beliefs in where and how they can gain a competitive advantage over its rivals

Functional strategies (Action strategies ): is the detailed proclamation about the

objectives and methods of short-term action that are used by the functionaldepartments (Production, Marketing, Finance, R & D ) to achieve short-term goals

of the SBU and long-term goals of the organization

3 Factors affecting a company’s strategies

+ Technology environment

Technology includes institutional activities related to the creation of new initiatives

The changes and technological developments may affect the height of entrybarriers and reshape the industry structure

+ Socio-cultural environment

It is related to social attitudes and cultural values These social changes havecreated opportunities and challenges for enterprises because the cultural values andsocial attitudes form the foundation of society, it often leads to changes in thetechnological, political - legal, economic and demographic conditions

+ Demographic environment

Demographic segments in the macro environment are in relation to population,age structure, geographic distribution, ethnic communities, and income distribution

+ Politics - law environment

Politics and laws factors have a major impact on the level of the opportunitiesand challenges from the environment Enterprises need to analyze the relevant newpolicies of the state management, the industry or government sector to adjust theselection or priority of the labor law, antitrust law, tax law, etc

In the global scale, the enterprises should also pay attention to political matters,commercial law such as trade policies or protection barriers that are nation-specific

3.1.2 Micro environment in the industry

Industry and competition analysis is a set of concepts and techniques forclarification of key issues, which are prominent features of the economic sector,competitive forces, the impact causing changes in the industry; position ofenterprises, other factors affecting the success or failure in competition andattractiveness in terms of the ability to gain profit on average

According to Michael E Porter, there are five factors that create competitionwithin the sector:

+ The enter of potential competitors;

+ Level of competition between existing businesses in the industry;

+ Bargaining power of buyers;

+ Bargaining power of sellers;

+ Threats of substitute products

The appearance of competitors

When new competitors enter the market, they often create new competitiveness.When entering a new industry, new rivals will face certain barriers Typically,business is always trying to prevent potential competitors, make it difficult for them

to join the industry The emergence of new competitors put pressure on the existingbusiness operations to more efficiently and gradually adapt to compete with newproperties

Suppliers’ power

Suppliers can affect a particular industry by raising prices or reducing quality ofinput requirements Supplier has power when:

+ A business is not an important client to the supplier.

+ Supplier’s goods or services are very important to businesses and it is less likely

to replace the goods or services of different suppliers because it causes costlydamage to businesses

+ It threats downstream integration toward the industry and direct competition withthe business

+ The buyer is satisfied with the purchase from several suppliers at once

+ The buyer can choose, change suppliers at lower costs

+ The buyer is capable of vertical integration

The presence of substitute products

Substitute products may limit the potential development of an industry or itsprofit They limit the ability to set high prices, and lead to limiting the profitability

of the business An industry is considered unattractive if the entry barriers are low,the threat level from strong competition with substitute products and intensity ofcompetition in the industry is high

Competitors in the industry

Competition in a sector can take place through intense rivalry when beingchallenged by the actions of competitors or when businesses realize an opportunity

to improve its position in the market

Enterprises in the sector are of mutual dependence, often attack and response toeach other Level of competition in the industry depends on competitive industrystructure, the conditions of demand, and high barriers when leaving the industry.The growth of demand tends to reduce competition and vice versa, thecompetition is more intense as demands reduce

3.2 Internal environment

Internal environment includes internal factors which businesses can control Theinternal environmental analysis is for determining the businesses’ strengths andweaknesses to maximize their strengths and limit their weaknesses and try to turnstrengths into special ability if possible

3.2.1 Resources, capabilities and core competencies.

Resources can be divided into two categories: tangible and intangible

on the theory and reality, invisible resources are more sustainable, so it is a moresolid basis for competitive advantage

Capacity is the business’s ability to mobilize resources gathered by purpose toachieve the desired results Knowledge of human resources enterprise owns is one

of the most important ability of the business; it can be the starting point forcompetitive advantages

Core competences

Core competencies are resources and abilities used to form competitiveadvantage to overcome the opponents Businesses are always aiming to identifytheir core competencies on the basis of available resources and capacity

Building up core competences

There are four standards for core competencies They are value, rareness, anddifficulty in imitation and replacement

+ Value

Valuable capacities are entered as the capacity to create value for business byexploiting opportunities and reconciliation the risks and challenges in the externalbusiness environment

+ Rareness

These are abilities that many businesses could find, even existing or potentialcompetitors could Competitive advantage can be formed when the businesses growand exploit their own abilities that rivals do not have

+ Difficulty in imitation (or expensive if imitation)

This capacity must be that opponents are difficult to imitate or have to spendgreat expense to copy Capacity becomes difficult to be imitated when cause-effectrelationship between the ability of the business and competitive advantage isconfusing A certain number of capabilities in enterprises were formed and

developed, but maybe because of their own historical conditions (Businesses coulddevelop because they started in the right place and at right time)

+Capacities that cannot be replaced

They are the capacity at no strategic equality Intangible capacities are oftendifficult to alternative and create more difficulties than the tangible abilities foropponents to search for resemblance

Capacity to participate in competitive advantage should not be equally valuable

in strategies with other resources that are not rare or imitable

3.2.2 Outsourcing

It is the purchase of the value-creating activities from external sources The maincause of the outsourcing due to the business’s limited capacity and lack ofownership of resources and capacities needed to be able to perform better thanfunctional and supporting activities in the chain value Today, the trend ofoutsourcing is increasingly growing

II PROCEDURE IN BUILDING STRATEGIES

In this thesis, the authors approached the strategy building procedure basing onthe SWOT analysis (Matrix of Opportunities - Threats and Strengths – Weaknesses)

1 SWOT analysis

SWOT analysis allows businesses to see clearly these above issues, which is thebase of the building up ad selection of the right strategies

Opportunities: The environmental conditions of operation have impacts on the

business’s benefit Some main trends such as relationships with suppliers and

customers, technological developments and changes in competition, and the law cancreate opportunities for businesses.

Threats: They are the environmental conditions of operation that have bad impacts

on businesses For example, the market penetrations of the competitors’, theincreasing power of suppliers or customers, a decrease in the growth of themarket are always a risk for enterprises

Strengths: They conclude resources and capabilities of the business that are

controlled and managed so that they can create advantages compared to othercompetitors in meeting customer needs

Weaknesses: Restrictions, the lack of resources and capabilities of enterprises in

relation to competitors create disadvantages for businesses in meeting customers'needs

Figure 1.1 : Simplest SWOT analysis model

S – O: Capitalize on your strengths to take advantage of opportunities.

S – T:

Capitalize on your strengths to limit and avoid risks.

W – O:

Troubleshoot weak points, took advantage of opportunities.

W – T:

Troubleshoot weak points to overcome difficulties.

Business will determine the overall strategies through the results integrated bySWOT analysis It may be one of four parties following strategies:

+ S - O Strategy (Strengths - Opportunities): Use internal strengths to exploit

business’s opportunities of the external environment

+ S - T Strategy (Strengths - Threats): Use the strengths of the business to

avoid or reduce the threats from the external environment

+ W – O Strategy (Weaknesses - Opportunities): Overcome the weaknesses

within by utilizing the opportunities from the external environment

+ W – T Strategy (Weaknesses – Threats): Try to avoid, reduce weaknesses

inside, from outside threats Here are strategies to minimize weaknesses inside andavoid external threats

2 Basic business strategies

Main clients are the foundation for successful business strategy A business that

is customer-centered and market-oriented focuses more on customer developmentwhen planning their strategies There are some factors that need to be determined:

The groups of customers - who will be satisfied?

Needs of target customers - what to satisfy?

How to satisfy customers’ needs through the implementation of business strategies?

According to Michael Porter, the advantages of a business will always be in one

of the two factors, which are the cost advantage and product differentiation Based

on the advantages, enterprises will pursue three strategies: cost leadership, productdifferentiation and focus strategy

+ Cost leadership strategy (low cost strategy):

When determining the leading of cost, enterprises will choose to focus on thesize and product differentiation will be little Leader in the costs are often concernedwith large market and regular priced products and services that are lower than itscompetitors to attract customers To gain a business advantage on costs, there aresome affecting factors, for example, large production scale, raw material incentives,technology proprietary and service levels

Businesses have to perform better than their competitors through all activities inorder to produce goods or services at lower cost than competitors’

Businesses that have advantages in costs can resist the pressure of encroachingcompetition from low-cost sector

When there are alternative products to penetrate the market, enterprise can beapplied discounts to be ready to compete and maintain stable market shares becausetheir price is always a key factor to the large buyers

When other business sectors join, usually one of the conditions must beconsistent with the cost or value of the leader (as one of the elements of the fence tojoin) Thus, leading in the cost will be safe to some extent if we maintain our costadvantage

Cost-leading strategy has some potential risks, for example, competitors try toproduce at lower costs and stay competitive In case equipment, productiontechnology is old and outdated, the opponents’ application of new technologies orimproved technology systems and equipment investment in new, modernproduction allows them to produce at lower costs

Another risky factor for cost-leading strategy is imitation Rivals are sometimessuccessful in imitating what the leader does about the costs Thus, there will be

fierce competition on prices, businesses are forced to attempt to lower price or addadditional features to products but keep the original purchase price

If the leaders focus too much on costs through reducing costs, they tend not totrack changes in consumer tastes and competitive scale Therefore, businesses mayforget the consolidation and development of the market

+ Product differentiation Strategy- This is the strategy chosen as the research subject of the authors.

The aim of differentiation is to achieve competitive advantage by creatingproducts / services with different features that consumers think are unique.Businesses apply this strategy to satisfy the needs of consumers in a way thatcompetitors can not have; thereby allowing them to set product prices significantlyhigher than the industry average Unlike the strategy of leading on costs, productdifferentiation is aimed at increasing revenue by setting high prices, whilecustomers are willing to pay that price because of belief in quality and differentvalue in unique products

Basis for differentiation is potential For example, with a product line,differentiation is in space and time, in conformity with the age and socioeconomicgroups, etc

Typically, businesses with product differentiation expect to have level ofdifferences as much as possible to gain competitive advantage Productdifferentiation mainly has three basic criteria: innovation, adaptation to customers,and quality New features are the source of differentiation When the characteristicsand features of the product have real appeal to customers, it is reflected in theability to meet the customers’ expectations and psychology, it is more associatedwith their status, pride differentiation strategy will promote the power

When a business pursue a particular capability, the business will focus onorganizing and providing resources to create distinct advantage together with aninvestment and support from leaders and relevant parts of the business.

Strategy of product differentiation requires businesses to create competitiveadvantage from the choice of customers, markets and unique ability to reinforceeach other to increase the value of goods and services under the eyes and thought ofthe customers

The problem for business differentiation is to pay proper attention tocommunication activities to provide promotional information about the uniquecharacteristics and differences in their products so that customers understand andfeel the unique characteristics and differences compared with the competitors’products

When the characteristics and features of products meet customers’ expectations,there is a real attraction for customers; it will become a valuable intangible asset,that's loyalty in this brand Loyalty to the brand brings great significance to thebusiness in the defense the pressure of competition

Product differentiation and brand loyalty help create barriers for others to join theindustry When you want to join the industry, the new business must create strong,unique abilities to compete with businesses operating in the industry For a newbusiness, responding to this problem will be difficult and costly

Differentiation and loyalty to products will reduce the threat of substituteproducts, simply because of the unique, special features of the product andcustomers’ loyalty for the brand that are not easily broken

Some issues need attention and strict control of product differentiation That iscompetitors can mimic products, which leads to difficulties in maintaining highprices If differentiation is just in designs or physical characteristics of the

product (i.e the difference created by simple source, easily recognizable form ofmatter, lack of depth), the risks are greater for imitation The highly competitivedifference is often rooted in the research process or otherwise has the effect of graymatter, of thinking and hard to identify sources in general Therefore, the productdifferentiation does not allow underestimated the cost problem, of course the pricedifference is greater than the additional costs to make a difference Otherwise,businesses would lose competitive advantage As enterprises deploy executableproduct differentiation, we need to consider carefully the cost of creating areasonable difference, and to reduce costs in the stages or parts that do not make adifference.

In this moment, with the development of science and technology, with theexplosion of information technology and changes in more flexible and more diverseproduction techniques have made the delineation between strategic lead on costsand product differentiation becomes less clear The business can easily be foundboth benefit from more strategic, so the company is fully capable of pursuingproduct differentiation at low cost (of course there are some extents and limits) ,That is both cost leader and product differentiation

As mentioned, the product differentiation is highly competitive, often associatedwith high costs because of the need to create models of different products for eachmarket segment, leading to shorter product cycle of production to increase theproduction costs The company tries to produce large shipments to increasecompetitiveness with the leading costs

Another factor is higher marketing costs to meet various market segments.Measures that can help reduce both production and marketing costs is whencompanies create products with high life expectancy, which contributes to limitingthe number of models in the products, while promoting the sales of package productoptions

+ Focusing strategy

Competitively focusing strategy is primarily oriented to serve the needs of alimited group of consumers or a market segment to take maximum advantage ofsmall businesses to compete with larger rivals

The strategy focuses on creating an opportunity for entrepreneurs to fill the space

of needs from the customers There will be a case that enterprises compete withother ones with differentiated products in one or a few market segments

In essence, businesses can focus as a product differentiation or cost leaderspecialization and they can have many ways to develop competitive advantage Ifbusinesses focus only use low-cost strategy, they will have to compete with leadingbusiness cost in the market segments in this market and they have no costadvantage

Business focus may pursue a certain ability to separate based on the conditions oflow-cost advantage or product differentiation

With the power suppliers, because the amount of raw materials purchased insmall quantities should focus on business at a disadvantage in price

A crucial issue is the focus of the market can suddenly reduce market share ordisappear because of technological changes or changes in consumer preferences.This is the reason why many small businesses fail

+ Combines strategies

According to Michael Porter, for long-term success, each business should chooseonly one of three generic strategies mentioned above If at the same time pursuingall three objectives, the business will fall into the embarrassing situation, easy tolose control and gain competitive advantage According to Michael Porter, theenterprise wants to apply various strategies to achieve success must often establishseparate business units and each unit will pursue a strategy

Others suggests that pursuing a single strategy is not necessarily the right option,because customers often find satisfaction in many ways combines quality, style,convenience and price within a reasonable product

3 Selection of the optimal strategy

Businesses can not simultaneously perform all of the strategies as this will take alot of resources and may not be effective Therefore, should have the choice to offer

a strategy is considered optimal The analysis and selection strategy is based on thefollowing criteria:

+ Does the strategy create a competitive advantage?

+ Can strategy reach your goals? Is the strategy in conflict with others? Are therisks associated with strategic accepted or not?

+ Is the time right? Is there other important consideration?

+ Has the strategy been combined with internal policies, the manner ofmanagement, operating philosophy can not form, is appropriate to the contextenvironment? Is it consistent with the organizational structure of business? Is thestrategy adequate to human resources and financial matters?

+ Oother related issues

On the basis of general SWOT analysis indicated specific factors Strengths Opportunities, Weaknesses - Opportunities, strengths - risk, vulnerability - riskmatrix and using criteria to see GREAT Consider the basic norms of basicorientation to choose the core strategies that business can pursue:

-Chapter 2

BUSINESS REALITY

IN VIGLACERA THANG LONG JOINT STOCK COMPANY

I GENERAL INTRODUCTION ABOUT VIGLACERA THANG LONG JOINT STOCK COMPANY

1 Establishment and development

Viglacera Thang Long Joint Stock Company is the member units affiliated Glassand Ceramic Construction Corporation The address is Phuc Thang Ward - PhucYen Town - Vinh Phuc province

It was established by Decision No 1379/QD - MOC on 22 September 2000 bythe Minister of Construction under the name Thang Long Ceramic Factory In 2000,the factory has 01 production line with capacity of wall tiles of 3.5 million m2 peryear

On14/01/2002, the factory was renamed Thang Long Ceramic Company tomatch production and business activities by the Ministry of Construction In 2002,the company invested its capacity production line of 1 to 4.0 million m2 per yearand invest in the production line of 02 ceramic wall tiles with a capacity of 1.5million m2 per year Total capacity was 5.5 million m2 per year (Factory 1)

On 01/08/2003 the company merged with Tien Son Granite Brick Company, andnamed Thang Long Viglacera Tile Company

Implementation of the policy reform of State enterprises, the Decision of theMinister of 1778/QD-BXD built on 31/12/2003, the company officially converted

to perform in the form of a joint stock company and it was renamed ViglaceraThang Long Tile Joint Stock Company with the chartered capital of 18 billion dong

In 2005, the company invested to expand the production line tiles with a capacity

of 3.0 million m2 per year (Factory 2)

After being renamed until September 05/2007, the company has raised capital to22.5 billion dong In August 2008, the company raises its chartered capital to 70billion dong and keeps up to date

In April 2010, the company changed its name to Viglacera Thang Long JointStock Company

Sales

Brief introduction

+ The Board of Directors includes the director, deputy director of production anddeputy director of sales Board of Directors was appointed by the Board ofShareholders The CEO is the legal representative of the company, responsible forimplementation of the resolutions of the Board, the business plans and investmentplans of the Company The vice president is the chief support in the areas ofassigned work

+ Board of Control: is elected by the Board of Shareholders and is responsible forchecking the authenticity, legality and rationality in the management of theexecutive board, the board of directors

+ Functional departments: includes Organization and Administration, Planningproduction and Product quality control and Technical Department, and FinanceDepartment They perform the functions and duties in accordance with theCompany issued, coordinating with other departments to perform the tasks ofproduction and business of the company

+ Workshops: is the direct production including factories and MechanicalWorkshop Perform the functions and duties the company issued, coordinating withother departments to perform the tasks of production and business of the company

+ Sales Department: includes North Branch, Central Branch, South Branch andExport Office They are responsible for all products sold by the company produced

Export part Sales part in the

North

Branch in the Middle of VN Branch in the Middle of VN

3 Major business activities, products and technology process

3.1 Major business activities

Manufacturing and trading of ceramic tiles

3.2 Products

Ceramic wall tiles size 20x25cm with not sharpening edges

Ceramic wall tiles size 25x40cm with not sharpening edges

Ceramic wall tiles size 30x45cm with sharpening edges

Ceramic tiles size 25x25cm with not sharpening edges

Ceramic tiles size 30x30cm with not sharpening edges

Ceramic tiles size 40x40cm with not sharpening edges

Ceramic tiles size 60x60cm with sharpening edges

3.3 Technology process

Figure 2.2: Technology Flowchart

Note: Packaging process with green illumination is for up-market products, the highlighted products in yellow are common ones.

Summary of the production process of the company:

+ Bone Processing

Raw materials (clay, feldspar, limestone powder) are balanced; the feeder bins load

to ball mills to be finely ground With standard, the finely ground materials aredrained from the ball mills to mixing tanks From mixing tank, piston pumpreservoir pumps it to spray dryer to press into powder

+ Press to make forms

Hydraulic press machine presses powder into rustic tiles The rustic tiles’ sizesdepend on the size of mold within the permit

+ Biscuit Furnace (first time)

Rustic tiles after pressure were put on the biscuit furnace for firing ceramic biscuitinto solid bone

+ Glazing and grid printing

Here is the glaze covered and enamelled decoration on the surface of the tiles.+ Glaze furnace (second time)

Glazed tiles after being glazed and grid printed are put into glaze furnace, this is theglaze firing process to make tiles smooth and complete the nature of the products.+ Classifying and packaging

Ceramic tiles go to the sorting and packaging stage after being fired Here, thetiles are classified according to quality level and packaged to send to warehouses

II PRODUCTION AND BUSINESS REALITY

1 Production

Up to now, Viglacera Thang Long has two factories with a total capacity of 8.5 millionm2 per year

1.1 Plant 1

1.1.1 Equipment: includes two lines with total capacity of 5.5 million m2 per year

and specializes in manufacturing ceramic wall tiles Machinery system is failing tomeet capacity requirements as well as product quality, the main reason as follows:

+ The entire system of processing equipment distribution area bone material:Originally designed for a production line with capacity of 3 million m2 per year,now must meet the 5.5 million m2 per year Furthermore, together with the sameproduct unit of m2, the material consumption of these products at this time (largersize, thicker) than about 20% compared to the time of investment

+ Press machine: the company has four hydraulic pressers (a presser of 3,200tons capacity to invest additionally for the lines with 2 and 3 machines of thecapacity of 1500 tons) In 2008, 3200 ton presser had a problem and could not berepaired, Thang Long Viglacera decided temporarily not to invest in alternativepresser and the three others had to meet the capacity for the whole factory

+ Finally, all equipment of the plant has operated for 10 years, the quality of theequipment has been reduced, and some devices need to be replaced

1.1.2 Technology: Production technology to bake wall tiles two times has been

used for 10 years, Thang Long Viglacera virtually has not got the improvement interms of technology, no changes in structure and product characteristics

1.1.3 Human resources and management: Being the head who is in charge of the

production plant is the plant director, then the manager, deputy manager, and thensupervisors and deputy supervisors Basically, the capacity of all staff can meetproduction requirements

1.2 Plant 2

1.2.1 Equipment: Includes a line that has a capacity of 3.0 million m2 per year,

specializing in manufacturing products tiles Machinery completely meets capacityrequirements as well as product quality due to investment between 2005 andbecause synchronization devices are attached to the goods quality and prestige

1.1.2 Technology: Production technology was first baked tiles, like a plant, during

5 years of operation, Thang Long Viglacera virtually no improvement in terms oftechnology, there is no change in the structure and product characteristics

1.1.3 Human resources and management: Being head and in charge of the

manufacturing is the Director, then Deputy Director, and then supervisors anddeputy supervisors Basically, the capacity of all staff can meet productionrequirements

1.3 Sản phẩm: Tile products of Viglacera Thang Long is one of the unit price of

goods in m2 in the product low, although there are many advantages (to be analyzedlater) Quality is only average, the products are for the high end is not reachedGames competition with other firms and imports from China In general, theproblem of product Viglacera Thang Long is still insufficient and limited; thismakes a huge impact to their competitiveness

Table 2.1: Production Results in 2010

4 Factory price VND/m2 43,506 47,764 48,351 111,14 101,23

In which:

Note: KH - planned, TH - performed.

(Source: Annual Review Report 2010 - Viglacera Thang Long)

2 Sales

Sales maintained a distribution system in North, Central and South Exports alsocontributed significantly in reducing the competitive pressure for domestic market.Total sales of all companies in 2010 reached 319,193 million, reached 92%compared to the plan set, and 4.36% growth over 2009