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1 | P a g e
UNIVERSITY OF SUNDERLAND
ASSESSMENT COVER SHEET / FEEDBACK FORM
BA (HONS) BUSINESS MANAGEMENT
Student Registratin N!" #$%&'$& Student Nae" MAI NGO* LONG
Mdu+e *de" SIM,,-Mdu+e Nae" Strategi. Manageent
Due Date" #-/#/ Hand in Date" #-/#/*entre / *++ege"
Assessent Tit+e"
Learning Out.es Assessed"
Feed1a.2 re+ating +earning ut.es assessed and assessent .riteria gi3en
t students"
Mar2"LearningOut.es
Assessed"
Areas 4r *endatin"
Areas 4r I5r3eent"
Assessrs Signature"
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Table of Contents
Executive summary.......................................................................................................................3
Company background...................................................................................................................4
Main analysis..................................................................................................................................5
I. Where are we now?..............................................................................................................5
1. Porter’s value chain...........................................................................................................5
2. Porter’s Five Forces..........................................................................................................9
3. PESTE..........................................................................................................................13
4. SW!T anal"sis................................................................................................................1#
II. Where $o we want to %e?................................................................................................19
III. &ow $o we 'et there?......................................................................................................19Recommendations........................................................................................................................21
Conclusion....................................................................................................................................22
Appendix.......................................................................................................................................23
Bibliography.................................................................................................................................3(
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Executive u!!a"#
The re)ort 'ives in*or+ation a%out how Thien on' ,rou) -or)oration can 'ain the
success an$ $evelo) the %usiness in co+)etitive +aret. The strate'ic +ana'e+ent o* this
co+)an" is anal"/e$ %ase$ on the )ositionin' view with three 0uestions
In the *irst 0uestion Where are we now? so+e tools such as SW!T anal"sis PESTE
Porter’s *ive *orces an$ value chain will %e a))lie$ u)on the real co+)an" situation to evaluate
the internal an$ eternal *actors which in*luence the strate'ic +ana'e+ent o* T, -o+)an".
The net 0uestion Where $o we want to %e? )art will re*lect the vision +ission core
value as well as the o%ective o* the co+)an".
For the last 0uestion Porter’s 'eneric strate'ies will %e use$ to i$enti*" which strate'ies
that Thien on' -o+)an" can ee) on )ro+otin' to 'ain +ore )ro*it an$ $evelo) the %usiness.
6*ter that the reco++en$ations will %e )ro)ose$ *or the co+)an" to have +ore success in the
*uture.
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C%!&a'# (ac)g"%u'*
Stationer" is a *orce*ul an$ co+)etitive in$ustr" aroun$ the worl$. &u+an nee$s
instru+ents to access the nowle$'e an$ in*or+ation in $ail" lives. Startin' *ro+ the increasin'
$e+an$ o* consu+ers this in$ustr" is now $evelo)in' ver" *ast es)eciall" in so+e $evelo)in'
countr" lie 7ietna+. It is esti+ate$ that 7ietna+ has s)ent aroun$ 4((( %illion *or )urchasin'
writin's instru+ents an$ stationer". This hu'e $e+an$ +a$e an a))earance o* e" )la"ers in
stationer" in$ustr" such as 8en 'he &on' &a Thien on':
Thien on' ,rou) -or)oration ;T,< is a local stationer" co+)an" in 7ietna+ which is
consi$ere$ as a )ro+inent %ran$ in writin' instru+ents an$ stationer" in$ustr". Esta%lishe$ in
19=1 T, has achieve$ the re)utation in $o+estic +aret an$ %eco+e the lea$in' stationer"
%ran$ in stationer" in$ustr". With the $istri%ution networ e+%racin' >3 )rovinces an$ cities
nationwi$e the co+)an" )rovi$es a variet" o* )ro$ucts inclu$in' School su))lies writin'
instru+ents !**ice su))lies an$ 6rt su))lies. ot onl" 7ietna+ %ut Thien on'’s )ro$ucts are
also )o)ular in oversea +aret when the" are e)orte$ to over 4( countries worl$wi$e.
In this re)ort I woul$ lie to )resent the evaluation o* strate'ic +ana'e+ent o* Thien
on' ,rou) -or)oration alon' with the +o$els an$ conce)ts a))lie$. 8esi$e the current
situation an$ strate'" o* T, so+e +o$els such as SW!T anal"sis PESTE Porter’s *ive
*orces an$ value chain are a))lie$ to ea+ine the internal an$ eternal au$it as well as the
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current activities o* the co+)an" in the *ollowin' )art. 6*ter that the +ain anal"sis will close
with reco++en$ations to su))ort Thien on' to 'ain +ore success in the *uture.
Mai' a'a,#i
Strate'ic +ana'e+ent involves in all to) co+)anies )resentl" which alwa"s *in$ the new
strate'" to a$a)t to the environ+ental chan'e co+)etitors the custo+er’s nee$ an$ to +ae use
o* source in e**ective wa" ;- 6))a et al. 2((9 ).2>
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wor$s value chain anal"sis $ivi$es co+)an"’s activities into a chain which )resents value@a$$e$
in each )ro$uction lin ;Sehar 2((9
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countries an$ )articularl" *ro+ )ro*essional 7ietna+
i+)orter. 6*ter %ein' $elivere$ %" su))liers the in)ut will %e
store$ an$ han$le$ into warehouse an$ stora'e.
&perations
Caterials *or )ro$uct are $ivi$e$ into $i**erent cate'ories
writin's instru+ents school su))lies art su))lies an$ o**ice
su))lies. Durin' +anu*acturin' )rocess T, a))l" S6P@
EBP s"ste+ to increase the )ro$uctivit" an$ ca)acit".
6sse+%lies are i+)le+ente$ on se+i@auto+atic asse+%l"
+achine with hi'h )ro$uctivit" an$ accurac". Pro$ucts are
)rinte$ on *il+ trans*er )a$ )rintin' hot@sta+)in' Fleo
)rintin' +achine an$ *ull@screen )rintin' +achine. The
e+)lo"ee tea+ is well@traine$ an$ hi'h@0uali*ie$.
&utbound logistics
Stron' $istri%ution channel s"ste+ s)rea$in' out within >3
)rovinces can hel) T, to trans)ort the )ro$ucts to
wholesalers retailers su)er+arets h")er+arets sho))in'
+alls 'i*t sho)s %oostores schools: aroun$ the countr"
Marketing and sales
The co+)an" *ocuses on a$vertisin' throu'h )ro+otional
activities an$ s)onsorshi). &avin' 'aine$ the trust an$ lo"alt"
o* custo+ers throu'h wi$e $istri%ution channel s"ste+ T,
continues to hol$ so+e events to )ro+ote the re)utation *or
the co+)an" universit" entrance ea+ su))ort ea+
consultanc" or *loo$ victi+ su))ort: to tar'et stu$ents an$
their )arents +ainl".
'ervices Thien on' o)ens so+e care )ro'ra+ *or custo+ers to +ae
i+)ression or'ani/in' so+e custo+er 'ratitu$e )ro'ra+s *or
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lo"al custo+ers lie Secretar" $a" *or o**icers or ,o to
school with "ou *or stu$ents. The co++unit" activities a*ter
sales are concentrate$ on e$ucation an$ trainin' environ+ent
to hel) custo+ers to achieve the o))ortunities to a))roach
nowle$'e.
'upport activities
Activities %escription
#rocurement
8esi$e 'oo$ relationshi) with su))liers Thien on' has
$ecrease$ the i+)ort rate %" researchin' ca)turin' an$
trans*errin' technolo'" to )ro$uce its own +achiner" so as to
+ini+i/e the e0ui)+ent i+)orts. The *un$ is $ivi$e$ e0uall"
into $e)art+ents %ut ten$s to *ocus on sales $e)art+ent.
(uman Resource
Management
E+)lo"ee tea+ has nowle$'e a%out the 7ietna+ culture an$
e)eriences in +anu*acturin' an$ +ana'e+ent. The hu+an
resources +ana'e+ent is continue$ to u)$ate *ollowin' the
stan$ar$ 0ualit" +ana'e+ent in the worl$. Trainin' courses
health care %onus an$ salar" )olicies are ensure$ to $evelo)
the hu+an resources s"ste+
In)rastructure
Two *actories locate$ in &o -hi Cinh an$ on' Thanh ;Don'
ai< with +anu*acturin' areas an$ stora'e s"ste+ hel)s the
co+)an" +ae sure the )ro$uction with e**icienc" an$
)ro$uctivit". The $istri%ution networ o* T, covers >3
)rovinces nationwi$e with over 135 $istri%utors an$ +ore
than 4> outlets.
*echnological Thien on' centers on investin' in BAD $e)art+ent which
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%evelopment
taes res)onsi%ilit" *or researchin' an$ $evelo)in' new
)ro$ucts. Es)eciall" 'reen technolo'" inte'rate$ with
+an" 0ualit" stan$ar$ o* IS! is a))lie$ in +anu*acturin'. In
a$$ition the co+)an" esta%lishes total 0ualit" +ana'e+ent
;TC< $e)art+ent to o)erate the )ro$uction s"ste+
e**ectivel" an$ )roactivel".
+. #orter$s ,ive ,orces
8e*ore $evelo)in' the cor)orate strate'" the co+)an" +ust un$erstan$ the *orces which +a"
%rin' the %ene*it in the in$ustr". That tool to hel) co+)an" in anal"sis is Porter’s *ive *orces
;6hlstro+ A 8ruton 2((9 ).131
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C%!&etitive Riva,"#
T2eat %3'e4
e't"a't
Ba"gai'i'g &%4e"
%3cut%!e"
T2"eat %3u(titute
Ba"gai'i'g &%4e"
%3u&&,ie"
Figure 2: Porter’s five forces
a. *he threats o) ne entrants
The stationer" in$ustr" ca)ital $oes not re0uire the hu'e invest+ent so the %arrier to entr" this
in$ustr" is 0uite low an$ the a%ilit" to entr" o* stationer" %usinesses is hi'h. It can %e so+e new
or'ani/ation s)eciali/e$ in +anu*acturin' )ro$ucts such as )en ruler co+)ass: &owever
%usinesses which want to enter this in$ustr" +ust *ace with so+e %i' %arriers to entr" such as
stron' )osition in the +aret o* tra$itional $o+estic *ir+s with hi'h +aret shares sta%le 0ualit"
o* stationer" )ro$ucts an$ the i+a'e in custo+er’s +in$. evertheless the )ro$uct
$i**erentiation an$ $istri%ution channel are 0uite hi'h %arriers to the new entrants as the
co+)etitive a$vanta'e o* tra$itional %ran$ lie Thien on' &on' &a an$ 8en 'he. Des)ite the
a))earance o* new stationer" %usinesses T, has still s)rea$ out the *oot in the stationer"
+aret %" a))l"in' )rice re$uction tactics to eistin' custo+ers.
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b. *he threat o) substitutes
For stationer" )ro$ucts %all)oint )en is a )o)ular an$ %est@sellin' su))l". It has co++on
*unction with other )en such as +etal )en or in )en which is )ro$uce$ in *orei'n co+)an" *ro+
-hina +ostl". These t")es o* )en have entere$ 7ietna+ an$ now the" are availa%le in the +aret
which create$ the hi'h co+)etitiveness with %all)oint )en G tra$itional )ro$uct o* $o+estic
%usinesses. The $evelo)+ent o* in*or+ation technolo'" +a" +ae the $ecrease in $e+an$ o*
usin' %all)oint )en. &owever in 7ietna+ the custo+ers still )re*er the %all)oint )en %ecause o*
its convenience. For a tra$itional stationer" co+)an" lie Thien on' %all)oint )en is +ain
)ro$uct which %rin's the )ro*it *or the co+)an". &ence the co+)an" nee$s to i+)le+ent
+aretin' activities to ee) the )osition *or its own )ro$ucts es)eciall" %all)oint )en.
c. *he poer o) suppliers
To create stationer" )ro$ucts Thien on' +ust i+)ort the raw +aterial *ro+ *orei'n +aretH the
+ain +aterials are liste$ as )lastic in %all )en s)rin' che+ical )i'+ents: So+e +aterial
sources +a" co+e $irectl" *ro+ oversea co+)anies in Swit/erlan$ ,er+an" or orea to ensure
the 0ualit" stan$ar$ o* )ro$uct while so+e are i+)orte$ throu'h 7ietna+ i+)orter. The in)ut
cost is a *actor which accounts nearl" #(J o* the )ro$uction cost o* T,H there*ore the i+)ort
$e)en$ence will +ae the co+)an" sustaine$ the *luctuations in 'lo%al echan'e rates. The
increase in in)ut )rices *ro+ the su))liers +a" in*luence the )ro$uction cost %" +ain' the
)ro$uct cost rise. -urrentl" Thien on' has use$ the +eans o* echan'e rate insurance an$
$evelo)e$ the e)ort activities as )ossi%le solutions. 6$$itionall" the co+)an" also *ocuses on
+anu*acturin' own +achiner" an$ +aterials in or$er to re$uce the i+)ort.
d. *he bargaining poer o) buyers
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In 7ietna+ the +aorit" o* stationer" users are stu$ents schools %usinesses o**ices a'encies.
Their $e+an$s start when the writin' instru+ents are out o* inH an$ the" nee$s stationer" in
e$ucation an$ trainin' as tools to transact the in*or+ation an$ nowle$'e. Durin' the $ecision@
+ain' )rocess on )urchasin' the )ro$uct )rice an$ 0ualit" o* )ro$uct are two i+)ortant
*actors. For ea+)le a stu$ent will care *or the )rice o* a %all)oint )en instea$ o* st"le an$
characteristic. &e ten$s to loo *or a %all)oint )en with chea) )rice in wi$e ran'e o* stationer"
%ran$ in the +aret. 8esi$es the consu+ers also see the %ran$ re)utation when )urchasin' a
stationer" )ro$uct. Thien on'’s )ro$ucts have %uilt an i+a'e in custo+er’s )riceH *urther+ore
the co+)an" ee)s on the )rice re$uction strate'" an$ continues to release %reathrou'h
)ro$ucts each "ear. These a$vanta'es %rin' T, a hu'e nu+%er o* lo"al custo+ers an$ hi'h
level o* a))reciation *ro+ consu+ers.
e. Competitive rivalry
In 7ietna+ stationer" is a co+)etitive in$ustr" with two +ain t")es o* co+)etitors
$o+estic %ran$s an$ international %ran$s.
For $o+estic %ran$s 8en 'he an$ &on' &a are consi$ere$ as two +ain rivals in )ro$ucin'
writin' instru+ents. (Sees Appendix 1 for competitor analysis of !"#
6)art *ro+ the $o+estic %ran$s Thien on' ,rou) -or)oration +a" $eal with co+)etitive
*orei'n %ran$s *ro+ -hina Thailan$ ,er+an": Cost *orei'n )ro$ucts are various in $esi'ns
with chea) )rice %ut the 0ualit" is unsta%le an$ the +aretin' *or those *orei'n )ro$ucts is
li+ite$. Those *orei'n %ran$s can %e liste$ out as Pentel 8ic &ero Pa)er Cate: In the contet
o* those *orei'n %ran$s Thien on' nee$s to ee) the stron' )osition in the +aret %"
)ro+otional activities to attract +ore custo+ers an$ +anu*acturin' new )ro$ucts to co+)ete
with those co+)etitors.
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-. #E'*E
PESTE +o$el *ocuses on evaluatin' the environ+ental anal"sis ;Stationer" !**ice Buth
Curra"@We%ster 2(1( ).==
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b. Economic
It is shown that the 7ietna+ econo+" has a ra)i$ 'rowth in recent "ears. In 2(14 total 'ross
$o+estic )ro$uct ;,DP< is esti+ate$ to increase %" 5.9=J co+)are$ to the sa+e )erio$ in
2(13. To %e s)eci*ic the *irst 0uarter rose to 5.(>J while the rate in the secon$ 0uarter thir$
0uarter an$ *ourth 0uarter reache$ 5.34J >.(#J an$ >.9>J res)ectivel" which is hi'her than
the ,DP 'rowth rate in 2(12 an$ in 2(13 ;,S! 2(14
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consu+ers +a" care *or the 0ualit" o* each writin' instru+ent in choosin' a )ro$uct in wi$e
ran'e o* %ran$ in the +aret.
T,’s )ro$uct is concerne$ a%out li*e st"le an$ $e+an$ o* custo+ers. -urrentl" the li*e
st"le o* 7ietna+ese )eo)le is +ore o)en an$ +o$ern. It has chan'e$ when %u"ers search *or the
+ore value an$ co+*orta%le )ro$uct. &ence the $e+an$ *or stationer" )ro$uct rise an$ the
re0uire+ents *or 0ualit" are also increasin'. 7ietna+ese )eo)le +a" see the writin' instru+ent
o* )o)ular an$ *a+ous %ran$ in the +aret. Thien on' has esta%lishe$ *or 34 "ears an$ ha$ a
stron' )osition in 7ietna+ +aretH the stan$ar$ )ro$ucts lie Thien on' %all)oint )en an$ 'el
)en have create$ a 'oo$ i+a'e in custo+er’s +in$. With this co+)etitive a$vanta'e it is
reco'ni/e$ as a 'oo$ o))ortunit" *or Thien on' ,rou) -or)oration to earn +ore )ro*it.
d. *echnological
Science an$ technolo'" in 7ietna+ is reco'ni/e$ as i+%alance. While there are +an"
en'ineers at re$un$ant level 7ietna+ lacs o* hi'h 0uali*ie$ en'ineers in +echanical che+ical
or auto+ation in$ustr". Ceanwhile the $evelo)+ent an$ technolo'" innovation 'rows ver" *ast
that +aes a))earance o* stationer" )ro$ucts i+)orte$ *ro+ *orei'n %usiness. ocal %usiness
lie Thien on' +ust innovate an$ u)$ate the technolo'" in +anu*acturin' )rocess to co+)ete
with oversea %ran$s.
T, now *aces to li+itation o* en'ineerin' tea+ %ut the co+)an" +oves to auto+ate$
)ro$uction to solve this )ro%le+ )ossi%l". In *act the co+)an" has )ro$uce$ own +o$ern
e0ui)+ent in or$er to i+)rove the )ro$uction ca)acit" in e**ective an$ )roactive wa".
Further+ore with technolo'" stan$ar$ 'uarantee Thien on' has )rioriti/e$ the a$o)tion an$
trans*er in )ro$uction technolo'" to sel*@control the in)ut an$ to re$uce the cost.
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e. Environmental
Environ+ent )rotection is a +atter o* concern in 7ietna+. 6ccor$in' to so+e research
con$ucte$ %" 7ietna+ese stu$ents each )erson consu+es two %all)oint )ens )er +onthH a
%all)oint )en casin' is e0ual to (.1 'ra+s -!2 release to environ+ent. !n avera'e a school
with +ore than 15(( stu$ents will %e e0uivalent to 3(( 'ra+s -!2 e+ission release to the
environ+ent. 8esi$es in Lune 13 th 2((3 the Pri+e Cinister has enacte$ the Decree >#M2((3
a%out char'in' +o$e with environ+ental wastewater. Thus to re$uce the -!2 release an$ cost
*or wastewater T, nee$s to use alternative source o* +aterial which is suita%le *or the
environ+ent.
-urrentl" Thien on' has use$ the ,reen Technolo'" to ensure the sa*et" with
environ+ent. ew ener'"@savin' an$ new 'eneration o* e0ui)+ent are a))lie$ with 0ualit"
stan$ar$ o* wastewater s"ste+ to +anu*acture the sa*e an$ non@toic to custo+ers. Increasin'
the consciousness o* environ+ent )rotection +a" hel) the co+)an" 'ain +ore a))reciations
*ro+ custo+ers.
). egal
Be'ulations an$ law relatin' to lan$ issuance an$ lan$ lease is not 0uite clear an$ lac o*
trans)arenc" in a$$ition to the )lan a$ust+ent which +a$e the lan$ e)loitation %eco+e +ore
$i**icult. This +a" hin$er Thien on' to e)an$ the )ro$uction scale when the +aret si/e ten$s
to 'row. &owever 7ietna+ is on the )rocess o* WT! inte'ration which %rin's the o))ortunities
*or Thien' on' in +aterial i+)orts. The re$uction in i+)orts tari**s hel)s Thien on' to
$ecrease the cost o* raw +aterial i+)orts lea$in' to the $ecline o* )ro$uct cost in 7ietna+
+aret. In a$$ition the WT! inte'ration )rocess su))orts the co+)an" in e)ort to overseas
+aret such as France Swit/erlan$ Den+ar ,er+an": Therewith T, can easil" a))roach
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'lo%al +aret without tari** %arriers %ut the inte'ration also %rin's the challen'es with
a))earances o* stron' *orei'n co+)etitors such as &anson uisilver 8ic Pentel: in contet
o* $ecreasin' i+)ort tari**.
0. 'W&* analysis
SW!T co+)rises Stren'th Weaness !))ortunit" an$ Threat which is involve$ in the
co+)an". It is a use*ul tool to un$erstan$ the current situation o* the co+)an" %" anal"sis in
stren'ths an$ weanesses ;internal resources
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#&R*41I*IE' *(REA*'
1. Caret si/e 'oes u) $ue to )o)ulation
'rowth $e+an$ o* writin' instru+ents
an$ o**ice su))l" ten$s to 'row
2. The 'rowth o* 7ietna+ econo+ic an$the increase o* total retail e)en$iture
will rise the s)en$in' o* stationer"
3. E$ucation in 7ietna+ has +ore
$evelo)+ent with the rise o* stu$ents
lea$in' to the intension o* )ro$ucts in
e$ucation
4. -usto+ers care *or the 0ualit" an$
%ran$ re)utation5. 7ietna+ oins WT! ;Worl$ Tra$e
!r'ani/ation
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III. (o do e get there!
To achieve the $eter+ine$ o%ectives Thien on' nee$s to i+)le+ent a))ro)riate strate'ies.
There are three 'eneric strate'ies which are i$enti*ie$ %" Cichael Porter ;19=( 19=5 19=9< as
the *unctional strate'ies *or ever" %usiness (See Appendix ) for Porter’s generic strategies#.
These strate'ies are consi$ere$ as 'eneric strate'ies %ecause %usinesses an$ in$ustries can %e
e0uall" a))lie$ ;Seh'al 2(1( ).34
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in an$ intestine to +ae a nice stroe an$ s+ooth in in writin'H *urther+ore a Tre )en is
use$ to )ractice writin' an$ the users can a$ust the %ol$ or nor+al stroe. The innovation in
$etails an$ *eatures o* Thien on'’s )ro$uct contri%utes to create an i+)ression in custo+er’s
+in$s as well as the increase in satis*action level towar$ the %ran$.
With cost lea$ershi) strate'" Thien on' +a" concentrate on the )rice re$uction tactics
%esi$e the si'ni*icant i+)rove+ent in )ro$uction cost $ecline. The stationer" )ro$ucts o* T,
are set u) the reasona%le )rice *or custo+ers as stu$ents an$ o**icers +ostl" %ut the 0ualit" is
ensure$ in each )ro$uct. For ea+)le a %all)oint )en in $i**erent color lie re$ %lue )ur)le or
%lac costs *ro+ 1.5((7D to 4.5((7D G a reasona%le )rice *or custo+ers es)eciall"
stu$entsH T,’s %all)oint )en is consi$ere$ as s+ooth writin' $i**erent colors eas" to hol$ an$
no clo''in'. 8esi$e the concentration on low cost )ro$uct Thien on' also i+)le+ents
)ro+otional activities such as $iscount )olic" *or stationer" )ro$uct on so+e occasions lie at
the en$ o* the "ear the %e'innin' o* school "ear or the universit" entrance. 6$$itionall" the
co+)an" )ro+otes the sel*@+anu*acture e0ui)+ent an$ +aterials to re$uce the i+)ort )rice *ro+
*orei'n +aret which create o))ortunities to a))l" cost lea$ershi) strate'" *or a lon' ti+e to
rise u) the re)utation an$ )ro*it *or Thien on'.
Rec%!!e'*ati%'
6lthou'h the )osition is hol$u) in the +aret Thien on' +a" $eal with )otential issues when
o)eratin' the %usiness in erratic +ove+ents o* the in$ustr". -urrentl" the co+)an" has
i+)le+ente$ cost an$ $i**erentiation strate'" +ainl"H however the increase in )rice o* i+)orts
+a" +ae a si'ni*icant i+)act on the strate'ic +ana'e+ent es)eciall" to the cost lea$ershi)
strate'" %ecause the hi'h cost in +aterial i+)ort can lea$ to the rise o* )ro$uct )rice. There*ore
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*irstl" T, can ee) *ollowin' the cost lea$ershi) strate'" in a$$ition to %acwar$ inte'ration
strate'". 8" usin' %acwar$ inte'ration the co+)an" can own the $istri%utors an$ su))liers *or
the )ro$uct +aterial. The ownershi) o* su))liers can hel) T, to control activel" the +aterialsH
it creates the cor)orate ca)a%ilit" an$ the ease to *ollow the low cost strate'". et BAD
activities are +aintaine$ to invest to chase the $i**erentiation strate'". Thien on' can continue
to +ae a $i**erence with other %ran$s %" )ro+otin' )ro$uct $evelo)+ent strate'" with 2(J
%ran$ new )ro$uct each "ear to a$a)t the custo+er’s $e+an$. In su++ar" accor$in' to the real
situation so+e reco++en$ations a%ove are )ro)ose$ *or Thien on' ,rou) -or)oration to
$evelo) an$ to 'ain +ore success in the *uture.
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C%'c,ui%'
The re)ort )rovi$es in*or+ation a%out strate'ic +ana'e+ent o* Thien on' ,rou)
-or)oration *ollowin' so+e +o$els lists out as SW!T anal"sis PESTE Porter’s value chain
an$ *ive *orces a))lie$ *or the co+)an". In which Porter’s 'eneric strate'" is the +ain )art in
evaluatin' the current strate'" o* the co+)an" to achieve the $eter+ine$ o%ectives. 8" usin'
those +o$els T, can un$erstan$ how the %usiness %e i+)acte$ throu'h the *actors in %oth
internal an$ eternal au$it $urin' the strate'" $eter+ination an$ i+)le+entation )rocess.
6*ter the re)ort I ho)e that viewers can have a clear overview a%out the strate'ic
+ana'e+ent o* Thien on' ,rou) -or)oration an$ the use*ul in*or+ation will su))ort learners
in *ollowin' stu$" an$ research. Finall" I ho)e Thien on' co+)an" can 'ain +ore success in
the *uture.
Wor$ count 35#=
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A&&e'*ix
". Current competitors analysis in domestic market
Firstl" 8en 'he -o+)an" rans the secon$ )osition in the stationer" in$ustr" which +aes a
$irect co+)etition with Thien on' in )ro$ucin' the %all)oint )en. The co+)etitive a$vanta'es
o* 8en 'he -o+)an" are e)eriences in +anu*acturin' an$ %usiness $ue to the earl"
a))earance in 7ietna+ +aret ;since 19=4< an$ lo"al custo+ers. &owever 8en 'he -o+)an"
has $iversi*ie$ the %usinesses into *oo$ )rocessin' livestoc hel+et )ro$uction: an$ the" $o
not *ocus on the tra$itional %usiness as stationer". There*ore the +aretin' activities *or
stationer" )ro$ucts o* 8en 'he -o+)an" are li+ite$ an$ it is reall" a 'oo$ o))ortunit" *or
Thien on' to +ae a %reathrou'h to sta" *urther *ro+ this co+)etitor.
Secon$l" &on' &a -o+)an" is also a co+)etitor in $o+estic +aret. This co+)an" has starte$
the %usiness *or over 5( "ears so e)erience in +anu*acturin' an$ %usiness is to) co+)etitive
a$vanta'e o* &on' &a. &owever &on' &a -o+)an" *ocuses on )ro$ucin' note%oo an$ in
)en as the +ain line o* )ro$ucts. 8all)oint )en as +ain stren'th o* Thien on' is not a +ain
)ro$uct line o* &on' &a when this )ro$uct a))eare$ in 1999 an$ it accounte$ 2J o* the
%all)oint )en +aret. &ence it is )ossi%le *or Thien on' to s)ee$ u) the %usiness es)eciall" in
)ro$ucin' %all)oint )en +aret in 7ietna+.
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Figure 2*1: +omparison in price and variety of products ,et-een hien !ong and .en /ghe 0
ong a ,rand*
+. 5ietnam 2%# rates and in)lation rates
,rowth rate at co+)arative "ears ;J< -ontri%ution to
total 'rowth rate
in 2(14 ;J<
Oear 2(12 Oear 2(13 Oear 2(14
*otal 67+6 670+ 6789 6789
6'riculture *orestr" an$
*isher"
2>= 2>4 349 (>1
In$ustr" an$ construction 5#5 543 #14 2#5
Service 59( >5# 59> 2>2
Figure $*1: "'P "ro-th in 2123 21$ and 21 (Source: "eneral Statistic 4ffice 21#
Figure $*2: &ietnam "'P Statistics in duration of 25 0 21 (Source: radingeconomics#
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8ase$ on the chart we can see that the ,ross Do+estic Pro$uct ;,DP< in 7ietna+ was
*orecaste$ 1#1.39 %illion S $ollars in 2(14 an$ the value o* 7ietna+ ,DP shows o** (.2= J o*
the worl$ econo+". The ,DP +easures the inco+e an$ out)ut o* the econo+" o* 7ietna+. It
e0uali/e to the total e)en$itures o* 'oo$ an$ services which are )ro$uce$ in the countr" in a
)erio$ o* ti+e. 6s %ein' clearl" seen the ,DP o* 7ietna+ has a +o$erate increase over each
"ear )resentin' the sta%ilit" o* the in)uts.
Figure 1*$: &ietnam 6nflation rate in 21 (Source: radingeconomics#
The chart in$icates the in*lation rate in 7ietna+ recor$in' in 2(14 which accounts *or 1.=4J in
Dece+%er. 6ccor$in' to the ,eneral Statistics !**ice o* 7ietna+ *or+ 199> to 2(14 the
avera'e rate o* 7ietna+ In*lation Bate counte$ *or #.1>J reachin' the to) at 2=.24J in 6u'ust
2((=. !therwise the low recor$ was note$ in Lul" 2((( with @2.>J. In 7ietna+ the in*lation
rate +easures the increase or $ecrease in )rices that custo+ers are willin' to )a" *or the stan$ar$
o* )ro$ucts. In*lation rate is i+)ortant $ata *or T, to i+)le+ent suita%le strate'ies.
-. 'W&* matrix )or *hien ong 2roup Corporation
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Eternal
environ+ent
Internal
resources
#&R*41I*IE' :&;
1. Caret si/e 'oes u) $ue to
)o)ulation 'rowth $e+an$ o*
writin' instru+ents an$ o**ice
su))l" ten$s to 'row
2. The 'rowth o* 7ietna+ econo+ican$ the increase o* total retail
e)en$iture will rise the s)en$in'
o* stationer"
3. E$ucation in 7ietna+ has +ore
$evelo)+ent with the rise o*
stu$ents lea$in' to the intension
o* )ro$ucts in e$ucation4. -usto+ers care *or the 0ualit" an$
%ran$ re)utation
5. 7ietna+ oins WT! ;Worl$ Tra$e!r'ani/ation7 '? = *+7 *
*07 *> Stren'ths in %ran$re)utation $istri%ution s"ste+
*inancial resource an$ hu+an
resource are co+)etitive a$vanta'
o* T, in co+)etition with 8en
'he &on' &a:
'"7 '-7 '67 '9 = *"7 *07 *6 It is
ver" i+)ortant to ee) 'oo$
relationshi) an$ attention with the
staehol$ers lie su))liers
custo+ers the 'overn+ent
sharehol$ers:
'+7 '>7 '? = *-7 *0 T, nee$s to
su)ervise the )ro$uct 0ualit" contr
an$ to )ro+ote +aretin' activitie
or social activities in or$er to attra
+ore custo+ers as well as to hel)
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an$ +ore
invest+ents
5. 7ariet" o* stationer"
)ro$ucts with hi'h
0ualit" $ura%ilit"
an$ sa*et" ;2(J
%ran$ new an$ well@
accre$ite$ )ro$uct
)er "ear<>. &i'hl" 0uali*ie$ an$
e)erience$ to)
+ana'e+ent tea+
#. Co$ern e0ui)+ent
in +anu*acturin'
stationer" )ro$ucts
=. ,ainin' trust o*
staehol$ers an$
%ran$ re)utation
*orce the 0ualit" o* )ro$uct an$
service is ensure$ to satis*" the %u"ers
cost lea$ershi) strate'"
i+)le+entation
'"7 '-7 '9 = &67 &> 8ein' a lea$in'
co+)an" in stationer" in$ustr" an$ a
relia%le %ran$ T, )ro%a%l" e)an$
the %usiness tre+en$ousl" in *orei'n
+aret es)eciall" when 7ietna+ oin
WT! an$ the co+)an" receives
su))ort *ro+ the 'overn+ent
+aret $evelo)+ent a))lication
the+ i$enti*" the counter*eit
+aret )enetration an$ $i**erentia
a))lie$ to %uil$ u) the i+a'e o* th
co+)an"
WEA31E''E' :W;
1. Baw +aterial
;)lastic +ainl"<
$e)en$s on i+)ort
2. ac o* senior
+ana'er when the
co+)an" s)rea$ the
scale )ro$uction3. uite )oor
+aretin' activities4. i+ite$ hi'hl"
0ualit" hu+an
resources an$
en'ineerin' tea+
5. 6$vance$
e0ui)+ent i+)ort in
a$$ition to hirin'
*orei'n en'ineers
%ecause o* li+ite$
hu+an resources
+a" cause the %ul'e
o* +anu*acturin'
)rice lea$in' to the
increase o* sellin'
W < &W"7 W6 = &67 &> 7ietna+ oins
WT! which creates a 'ol$en
o))ortunit" *or T, to e)an$ the
%usiness an$ i+)ort the e0ui)+ent
an$ *acilities with chea)er )rice
)rice re$uction strate'"i+)le+entation
W-7 W6 / &"7 &+7 &-7 &0 raw
+aterial an$ e0ui)+ent i+)orte$ *ro+
*orei'n countries +a" enhance the
0ualit" o* )ro$uct to a$a)t the
custo+er’s $e+an$. There*ore the
co+)an" nee$s to )ro)ose new
+aretin' activities an$ to sta%ili/e
the )ro$uct 0ualit" $i**erentiation
strate'" a))lie$ to satis*" custo+er’s
nee$s
W+7 W0 = &"7 &+7 &> the )ro*it
'ettin' *ro+ the u)war$ tren$ o*
stationer" $e+an$ can s)en$ on
trainin' an$ recruit+ent
W < *W"7 W-7 W6 = *"7 *-7 *07 *67 *
the )ro$uct 0ualit" control nee$s t
%e su)ervise$ closel"H in a$$ition
T, +a" +aintain the $istri%ution
wi$el" an$ )ro+ote +aretin'
activities to increase the a%ilit" toco+)ete with other %ran$s +ar
)enetration a))lie$ to li+it the
threats
W+7 W0 = *+7 *> &u+an resourc
an$ 0ualit" +ana'e+ent are two
as)ects to )a" attention an$ to
i+)rove to $evelo) in $o+estic
+aret an$ international +aret
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)rice.
0. 5ision7 mission7 core value and ob@ectives o) *hien ong 2roup Corporation
• 5ision 8ein' a stationer" +aret lea$er in 7ietna+ an$ Southeast 6sia
• Mission 6s the slo'an the )ower o* nowle$'e Thien on' )rovi$es stationer" an$
)ens *or stu$"in' activities an$ *or con0uerin' the to) o* nowle$'e
• Core value Pioneerin' in technolo'" an$ creativit" to serve custo+ers with
%reathrou'h )ro$ucts to'ether %uil$in' a sustaina%l" thrivin' Thien on' co++unit"
o* hu+anit"
The o%ective an$ 'oals o* Thien on' are also strate'icall" clear with the tar'et an$
$evelo)+ent orientation *or the *uture.
• In short/term
@ S)eciali/in' an$ auto+atin' +anu*acturin'@ Develo)in' all $o+estic co++ercial channel an$ international %usinesses
@ 8eco+in' one o* the %est co+)anies with the %est worin' environ+ent hi'hest %ene*it
*or custo+ers an$ hi'hest )ro*it *or sharehol$ers.@ Caintainin' the )osition nu+%er one in the $o+estic in$ustr"
• In long/term
@ 8eco+in' a stationer" +aret lea$er in 6sia 'enerall" an$ in Southeast 6sia )articularl"@ Develo)in' the international %usinesses to )enetrate into the 'lo%al +aret
@ Diversi*"in' the )ro$ucts cate'ories %" co@+anu*acturin' )ro$ucts
@ Cai+i/in' the +aret share in $o+estic +aret@ I+)rovin' +anu*acturin' on its own +achiner" an$ +aterial to re$uce cost an$ to
increase co+)etitiveness
6. #orter$s generic strategies
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In the Porter’s 'eneric strate'ies cost lea$ershi) is a strate'" which involves the low cost in
)ro$uct an$ service *or custo+ers in the lar'e +aret. This strate'" $e)en$s on the ca)a%ilit" o*
the %usiness in )rice re$uction in the in$ustr". Ceanwhile $i**erentiation strate'" re*lects the
uni0ue value o* )ro$uct an$ service to co+)ete with other %ran$s in the in$ustr". Success*ul
$i**erentiation strate'" is a%out the a%ilit" in +aretin' an$ $esi'nin' research an$ )ro$uct
$evelo)+ent. astl" *ocus strate'" e+)hasi/es the nee$ o* )articular se'+ent in niche +aret.
When the +aret se'+ent is $eter+ine$ the cost lea$ershi) an$ $i**erentiation can %e a))lie$
;CcIvor 2((5 ).11>
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Bi(,i%g"a&#
-ourse %oo 2(14. Strategic Management . The niversit" o* Sun$erlan$
;.S.. he %ssentials of Strategy. 8oston &arvar$ 8usiness Press.
6hlstro+ D. A 8ruton ,. 2((9. 6nternational Management: Strategy and +ulture in the %merging 7orld . -en'a'e earnin'.
6non. 2(13. mar8etingchienluoc. !nlineQ 6vaila%le at htt)MMwww.+aretin'chienluoc.co+MchiJE1J86J8Fn@lJ->J8(JE1J88J63cMchiJE1J86J8Fn@lJ->J8(JE1J88J63c@c
J-3J84n'@t"M1#>53@thiJ-3J66n@lon'@lJ-3J63i@lJE1J88J98n@tJE1J88J68@c
J-3J62"@%J-3J86t@nhJE1J88J=F 6ccesse$ 1( Lanuar" 2(15Q.
6non. 2(14. "%/%9A! SA6S6+S 4FF6+% . !nlineQ 6vaila%le athtt)sMM'so.'ov.vnM$e*aultRen.as)?ta%i$>22AIte+ID14195 6ccesse$ 1( Lanuar" 2(15Q.
6non. n.$. %xporters from &ietnam. !nlineQ 6vaila%le athtt)MMwww.e)orters.co+.vnMsho)MT&IE@!,@,B!P@-!BP!B6TI!M35>92Ma%out.ht+l
6ccesse$ 1( Lanuar" 2(15Q.
8Nh+ 6. 2((9. he S74 Analysis. or$erste$t ,BI 7erla'.
8PP Pro*essional E$ucation earnin' Ce$ia e$. 2(1(. Mandatory nit ;: .usiness Strategy.2n$ e$. on$on 6l$ine &ouse.
8roce L.v. A Bose+ann C. 2(14. and,oo8 on .usiness Process Management 1:
6ntroduction3 Methods3 and 6nformation Systems. 2n$ e$. S)rin'er.- 6))a B. 8 Parvathiswara B. A Sivara+arishna 2((9. Strategic Management and .usiness Policy. 1st e$. ew Delhi Ecel 8oos In$ia.
CcIvor B. 2((5. he 4utsourcing Process: Strategies for %valuation and Management .-a+%ri$'e -a+%ri$'e niversit" Press.
hi)cau$autu n.$. S< m=nh c>a t?p @on hiBn !ong . !nlineQ 6vaila%le athtt)MMwww.%ansacthuon'hieu.co+Mchi@tietMsu@+enh@cua@ta)@$oan@thien@lon'M43=5.ht+l
6ccesse$ 1( Lanuar" 2(15Q.
Porter C.E. 19=(. +ompetitive Strategy: echniCues for AnalyDing 6ndustries and +ompetitors.2#th e$. Free Press.
Pu%lishin' D. e$. 2((9. 'E %ssential Managers: Strategic Management . on$on Pen'uin.
Seh'al 7. 2(1(. Supply +hain as Strategic Asset: he Eey to 9eaching .usiness "oals. LohnWile" A Sons.
31 | P a g e
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Sehar ,.7.S. 2((9. .usiness Policy and Strategic Management . I. . International Pvt t$.
Stationer" !**ice Buth Curra"@We%ster 2(1(. Management of ris8: guidance for practitioners.The Stationer" !**ice.
Thien on' 2(13. Annual report 21$. &o -hi Cinh -it" Thien on' Thien on' ,rou)-or)oration.
Thien on' 2(13. ri tim hGng tiHp s
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