FORM THE BUSINESS STRATEGY AND DEVELOP THE MOBILE INFORMATION NETWORK OF EVN TELECOM COMPANY TABLE OF CONTENTS TABLE OF CONTENTS LIST OF ABBREVIATIONS .3 ETC EVN TELECOM SWOT Matrix S: Strengths .4 LIST OF TABLES LIST OF FIGURES, GRAPHS PART 1: INTRODUCTION 1.2- GOAL OF RESEARCH .8 1.3 METHOD OF RESEARCH 1.4 SCOPE OF RESEARCH 1.5 TOPIC STRUCTURE PART 2: CONTENTS CHAPTER 1: GENERAL REASONING OF PLANNING A BUSINESS STRATEGY 1.1 BUSINESS STRATEGY OVERVIEW 1.1.2 Specific meaning of Business strategy 11 1.1.3 The necessary of Company Business strategy .12 1.1.3.2 Non financial benefit 12 1.2 BUILDING AND CHOOSING THE COMPANY BUSINESS STRATEGY 12 1.2.1 Process of Business strategy 12 1.2.1.1 Phase of Forming strategy 12 1.2.1.2 Phase of performing strategy 13 1.2.1.3 Phase of evaluating strategy .14 1.2.2 Analysis of Company Business environment .16 1.2.2.1 Factors of Business environment 16 1.2.2.3 Internal environment 24 1.2.2.2 Analyzing business environment 26 1.2.3 Some evaluation model 28 1.2.3.1 Peripheral factor evaluating matrix 28 1.2.3.2 BCG Matrix .29 1.2.3.3 HOPER Matrix 30 1.2.3.4 SWOT Matrix 30 CHAPTER 2: CONDITON OF PRODUCTION - COMMERCE OPERATION AND STRATEGY PLANNING OF EVN TELECOM 32 2.1- SUMMARY OF EVN TELECOM .32 2.1.1 Formation and development process of EVN TELECOM (EVN Telecom) 32 2.1.2 Function, mission and organizational structure of EVN TELECOM 32 2.1.2.1 Function and mission 32 2.1.2.2 Organizing structure 34 2.1.2.3 Manufacturing organizing structure 38 2.1.3 Technical specification 42 2.1.4 Labor specification 43 2.1.5 Production and business situation in recent years 43 2.1.5.1 Revenue .43 2.1.5.2 Result of production and business 44 2.2 CONDITION OF PRODUCTION - COMMERCE OPERATION AND STRATEGY PLANNING OF EVN TELECOM 47 2.2.1 Condition of plan performance 47 2.2.1.1 Difficulties 50 2.2.1.2 Advantages 51 2.2.1.3 Problems 51 2.2.1.4 Reason of problems 52 Page 2.2.2 Real situation of EVN Telecom business strategy .52 2.2.2.1 Target of subscriber development 52 2.2.2.2 Revenue target 53 2.2.2.3 Target customers .53 2.2.2.4 Evaluate current business strategy 58 CHAPTER 3: SOLUTION OF BUILDING BUSINESS STRATEGY AND DEVELOPING MOBILE INFORMATION NETWORK OF EVN TELECOM 59 3.1 GENERAL OF VIET NAM TELECOMMUNICATION 59 3.1.1 Vietnamese economy 59 3.1.2 Market forces .61 3.1.2.1 Telecommunication expenditure 61 3.2 PROPOSE ON COMPLETING BUSINESS STRATEGY IN THE NEXT PHASE OF EVN TELECOM .64 3.2.1 General solutions 65 3.2.1.1 Strengthen market study activities 65 3.2.1.2 Plan to consume products 66 3.2.1.3 Consolidate and improve the business strategy process 67 3.2.2 Specific solutions 70 3.2.2.1 A new telecommunication world 70 3.2.2.2 Company target in developing the mobile communication network .70 3.2.2.3 Propose about the market 71 3.2.2.4 The imagine and position of company .72 3.2.2.5 Telecommunication network 72 3.2.2.6 Prices 73 3.2.2.7 Solution for distribution channel 73 3.2.2.8 Advertisement and promotion 73 3.2.2.9 Customer caring 74 3.2.3 Apply strategic theory to build and choose the business strategy of EVN TELECOM .74 3.2.3.1 Using SWOT matrix 75 3.2.3.2 Forming IFE and EFE matrix 76 3.2.3.3 Analyze IFE, EFE matrix and combine SWOT .81 3.2.3.4 Using QSPM matrix 83 PART 3: CONCLUSION 87 REFERENCES 88 APPENDICES 89 LIST OF ABBREVIATIONS ETC EVN Telecom BCG Boston Consulting Group SWOT Matrix S: Strengths Page O: Opportunities T: Threats W: Weaknesses QSP Quantitative Strategic Planning EFE External Factor Evaluation IFE Internal Factor Evaluation LIST OF TABLES Table 1.1 The macro environment factors Table 2.1: Revenue of sales Service Table 2.2: Number of CDMA Subscriber From 2006 to 2008 Page Table 2.3: Result of consulting, Designing and constructing business - From 2006 to 2008 Table 3.1: Telecommunication spending in some countries LIST OF FIGURES, GRAPHS Figure 1.1: Strategic business of administration model – Feedback information Figure 1.2 Business environment factors Figure 1.3: The relation between factors in the operation environment of a company Figure 1.4: Main parts of competitor analysis is presented as follow Page Figure 1.5: Building process of EFE matrix Figure 1.6: BCG matrix Figure 1.7: Hoper matrix Figure 2.1 Organizational structure of EVN Telecom Figure 2.2: Production organizational structure of EVN Telecom Figure 2.3: Diagram of organizational business Chart 3.1: Subscriber development per year Chart 3.2: Revenue of some telecommunication enterprise in 2008 compared to 2007 PART 1: INTRODUCTION 1.1 Reason of choosing the Topic Nowadays, Information technology is gradually taking an important part in National economy It becomes a huge industry that makes advantages for the other ones Telecommunication network is compared to the blood vessel that can penetrate into every business, organization and people It is a network to connect enterprises to Page each other and enterprises to customers as well The demand of information is very necessary to every people today In a background of hard economical competition, a telecommunication enterprise can not remain passive to the change of business environment if it wants to get success It must form a suitable strategy (What they are doing, will and what the results will be?) A good business strategy takes a main part in the company success in the future and helps it to grow up firmly in the market Besides, business strategy helps enterprise to quickly catch opportunities and reduce the risk of market fluctuation We can see that the nations of the world try to associate the economical development with social development to reach a state of balance and stability Each enterprise associate not only the economical development with social development in its range of management but also find the interests from the social and human matters Therefore, it is considered that a development strategy of enterprise is a general strategy that direct to the comprehensive development And a business strategy is the basic for it In practical business, if an enterprise does not have a business strategy or executes wrongly, it will be definitely unsuccessful The world witnessed the Japanese prediction about the energy source and their effort in manufacturing high-class electronic goods, cars… This has turned a poor resources Japan into a powerful country in the world EVN Telecom has stepped into the telecommunication market since 2006 It is a national mobile network (096) that covered 64 cities and provinces in the whole country In a severely competitive environment, EVN Telecom has succeeded with remarkable services, reasonable price and discovered the cordless fixed telephone E-com However, with the continuous development of other competitors, it is very important to choose a business strategy that is suitable to current period In particular, EVN Telecom has now been preparing for privatization Page Originate in the practical requirements of EVN Telecom, we choose the topic: "Form the business strategy and develop the mobile information network of EVN Telecom Company" 1.2- Goal of research Our purpose is to bring out a general knowledge about building a business strategy in a telecommunication service provider After that we will propose some solutions to plan a business strategy in the future for EVN Telecom The goal of research is to advance some suitable solutions, improve the business effectiveness, reduce cost and bring about more benefit for the company 1.3 Method of research This topic uses these methods: dialectical materialism, survey, analysis and illustrated model 1.4 Scope of research This topic focuses on researching the planning of EVN Telecom business strategy in 2009-2010 1.5 Topic structure This topic contains parts: Preface, Contents and Conclusion The main content of topic has chapters: Chapter 1: General reasoning of planning a business strategy Chapter 2: Real situation of production and business and business strategy planning in EVN Telecom Chapter 3: Solution of building business strategy and developing mobile information network of EVN Telecom Page PART 2: CONTENTS CHAPTER 1: GENERAL REASONING OF PLANNING A BUSINESS STRATEGY 1.1 Business strategy overview 1.1.1 What is business strategy Page The term “strategy” originated in the art of war in olden times It is considered as the art of commanding means to win Borrowed from military term, the word “strategy” is used popularly in both macro and micro economy There are many conceptions about strategy such as: - Strategy is an art of creating competitive advantages to defend (M.Porter) - Strategy is to define the way and means to reach the specific target through policies (General Aileret) - Strategy is an art of combining and controlling actions to achieve long term targets (G.Hirsch) According to another approach, “Strategy” is a manner that helps company answer questions: “Were we want to go? Where and how we can go? What we have? What others have?” From the above conceptions, the term strategy of a company implies and reflects a target in a long-term (3, or 10 years) The process of deciding a strategy included competitive environment, strengths and weaknesses We can see that a company strategy is a product It combines the environment factor and the things that the company can reach and want to reach Through times, the conceptions of strategy have changed There are now two popular conceptions: - Business strategy is a mean to achieve the long-term target The idea of business strategy is to attack and to win in competitive market - Business strategy is a set of long-term target, policies, production and business solutions, finance and human factor to develop the company business activities and reach higher quality Page 10 Step 1: Using SWOT matrix (list of Strengths, Weaknesses, Opportunities, Threats) Step 2: Forming IFE (Internal Factors Evaluation) and EFE (External Factors Evaluation) matrix Step 3: Analyze the results from IFE and EFE matrix and combine SWOT to give out strategies Step 4: Using QSPM matrix to define the best strategy 3.2.3.1 Using SWOT matrix We use SWOT theory as mentioned in chapter I to list the Strengths, Weakness, Threats and Opportunities of EVNTelecom Strengths and weaknesses are internal factors Opportunities and threats are external factors Swot Matrix STRENGTHS: - High capacity information network - Experienced staffs - Cultural environment is healthy WEAKNESSES - Depend on power industry - Possibility of manufacturing, researching and developing Page 75 - Financial situation is satisfactory - Uncommon services - Available Infrastructure - Undiversified products - Marketing and sales support activities - Service stableness OPPORTUNITIES - Economic growth - Government regulations (international cooperation) - Trend of using high - Grade services - High speed of telecommunication development - Stable politic and economy - Market share outside the power industry THREATS - The telecommunication price of competitors reduces - The market accession of other competitors - Competitors with high quality services and wide coverage area - The development of science and technology in the world - EVN TELECOM position in trend of economic integration - Government regulations (bandwidth) 3.2.3.2 Forming IFE and EFE matrix Internal Factor Evaluation Matrix Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business IFE matrix also provides a basis for identifying and evaluating relationships among those areas The Internal Factor Evaluation matrix or short IFE matrix is used in strategy formulation The IFE matrix can be created using the following five steps: Key internal factors Conduct internal audit and identify both strengths and weaknesses in all your business areas It is suggested you identify 10 to 20 internal factors, but the more you can provide for the IFE matrix, the better The number of factors has no effect on the range of total weighted scores (discussed below) because the weights always sum to 1.0, but it helps to diminish estimate errors resulting from subjective ratings Page 76 First, list strengths and then weaknesses It is wise to be as specific and objective as possible You can for example use percentages, ratios, and comparative numbers Weights Having identified strengths and weaknesses, the core of the IFE matrix, assign a weight that ranges from 0.00 to 1.00 to each factor The weight assigned to a given factor indicates the relative importance of the factor Zero means not important One indicates very important If you work with more than 10 factors in your IFE matrix, it can be easier to assign weights using the to 100 scale instead of 0.00 to 1.00 Regardless of whether a key factor is an internal strength or weakness, factors with the greatest importance in your organizational performance should be assigned the highest weights After you assign weight to individual factors, make sure the sum of all weights equals 1.00 (or 100 if using the to 100 scale weights) The weight assigned to a given factor indicates the relative importance of the factor to being successful in the firm's industry Weights are industry based Rating Assign a to X rating to each factor Your rating scale can be per your preference Practitioners usually use rating on the scale from to Rating captures whether the factor represents a major weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major strength (rating = 4) If you use the rating scale to 4, then strengths must receive a or rating and weaknesses must receive a or rating Note, the weights determined in the previous step are industry based Ratings are company based Multiply Now we can get to the IFE matrix math Multiply each factor's weight by its rating This will give you a weighted score for each factor Page 77 Sum The last step in constructing the IFE matrix is to sum the weighted scores for each factor This provides the total weighted score for your business Using the results from the above analysis about SW (strengths and weakness), we have the IFE matrix: Page 78 IFE MATRIX WEIGHT INTERNAL STRENGTHS High capacity information network Experienced staffs Cultural environment is healthy Financial situation is satisfactory Uncommon services Possibility of capital tie-up Available Infrastructure WEIGHTED SCORE RATING 0,1 0,1 0,09 0,09 0,05 0,05 0,11 3 3 3 0,09 0,08 0,08 0,08 0,08 1 2 INTERNAL WEAKNESSES Depend on power industry Possibility of manufacturing, researching an developing Undiversified products Marketing and sales support activities Service stableness TOTAL WEIGHTED SCORE 0,3 0,3 0,27 0,27 0,15 0,15 0,33 0,18 0,08 0,16 0,08 0,16 2,43 External Factor Evaluation Matrix External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for assessment of current business conditions The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing The EFE matrix is very similar to the IFE matrix The major difference between the EFE matrix and the IFE matrix is the type of factors that are included in the model While the IFE matrix deals with internal factors, the EFE matrix is concerned solely with external factors External factors assessed in the EFE matrix are the ones that are subjected to the will of social, economic, political, legal, and other external forces Page 79 Developing an EFE matrix is an intuitive process which works conceptually very much the same way like creating the IFE matrix The EFE matrix process uses the same five steps as the IFE matrix List factors: The first step is to gather a list of external factors Divide factors into two groups: opportunities and threats Assign weights: Assign a weight to each factor The value of each weight should be between and (or alternatively between 10 and 100 if you use the 10 to 100 scale) Zero means the factor is not important One or hundred means that the factor is the most influential and critical one The total value of all weights together should equal or 100 Rate factors: Assign a rating to each factor Rating should be between and Rating indicates how effective the firm’s current strategies respond to the factor = the response is poor = the response is below average = above average = superior Weights are industry-specific Ratings are company-specific Multiply weights by ratings: Multiply each factor weight with its rating This will calculate the weighted score for each factor Total all weighted scores: Add all weighted scores for each factor This will calculate the total weighted score for the company Using the results from the above analysis about OT (opportunities and threats), we have the EFE matrix: Page 80 EFE MATRIX WEIGHT 6 EXTERNAL OPPORTUNITIES Economic growth Government regulations (international cooperation) Trend of using high - grade services High speed of telecommunication development Stable politic and economy Market share outside the power industry EXTERNAL THREATS The telecommunication price of competitors reduces The market accession of other competitors Competitors with high quality services and wide coverage area The development of science and technology in the world EVN TELECOM position in trend of economic integration Government regulations (bandwidth) TOTAL WEIGHTED SCORE WEIGHTED SCORE RATING 0,07 0,14 0,1 0,2 0,09 0,18 0,14 0,08 0,42 0,16 0,1 0,2 0,04 0,12 0,1 0,2 0,1 0,3 0,07 0,07 0,05 0,1 0,06 0,06 2,15 3.2.3.3 Analyze IFE, EFE matrix and combine SWOT After having the evaluation of Internal and External factors to EVN TELECOM, we have the weighted score for internal factor is 2.43, that means the company has internally weak business (the average score you can possibly get is 2.5) And the weighted score for internal factor is 2.15, that mean the company has less than average ability to respond to external factors (the average score you can possibly get is 2.5) Page 81 From the SWOT analysis, we can give out some combinations to find some strategy for EVN TELECOM: S (Strengths) The optical information network North-South backbones has large capacity Qualified and experienced staffs Cultural environment is healthy Financial situation is good Extraordinary services W (Weakness) Company Depends on the power industry Products and services are mainly for power industry Does not have staff for researching and developing at high standard Environment Decisive product has not got high benefit Activities of marketing, sales support have not been developed O (Opportunities) Combine SO strategy Combine WO strategy Economic growth Speed up the marketing, raise Approach external customer, Possibility of getting prestige and position, support train dynamic and creative young permission from government and after selling staffs, promote internal force cooperation with international Innovate equipments and Employ marketing expert and company technology, extend products designing expert for high quality Trend of using high-grade Extend the coverage area, products services improve the telephone call Train the after sale service, Trend of using mobile phone quality, reduces the busy line concentrate on the young Vietnam telecommunication field situation customers has high speed of growth and potential high benefit Economy and politic are stable T(Threatens) Combine strategy Combine WT strategy Telecommunication prices has Improve the marketing and Try to keep high quality service been reducing prediction activities, speed up Extend the coverage area in big Some new competitors join the the consumption cities market Economize absolutely, reduce Other competitors have high price Advertisement and quality service, wide coverage promotion, good commission area for agencies, improve the Competitors are stronger effectiveness of management, New technologies assign function of each department Page 82 After analyzing the IFE, EFE and combined SWOT matrix, combine with the determined target, we propose projects: Project 1: Maintain the current customers Increase the service quality (preeminent features, high speed access, no busy line), ensure the rate of dropped telephone call less than 2% The coverage areas are in cities, towns where have densely populated The target customers are subjects who have average income Project 2: Develop the network and cover in all 61 cities and provinces Develop more new services that are more superior than other competitors Invest in technology and deploy the promotion policy to attract more customers Project 3: Develop the available infrastructure and merge with another competitor to gradually control and increase the market share 3.2.3.4 Using QSPM matrix To have a precise and unbiased decision, it needs applying the Quantitative Strategic Planning Matrix (QSPM) to evaluate the “attractiveness” of each mode Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic management approach for evaluating possible strategies Quantitative Strategic Planning Matrix or a QSPM provides an analytical method for comparing feasible alternative actions The QSPM method falls within so-called stage of the strategy formulation analytical framework When company executives think about what to do, and which way to go, they usually have a prioritized list of strategies If they like one strategy over another one, they move it up on the list This process is very much intuitive and subjective The QSPM method introduces some numbers into this approach making it a little more "expert" technique Page 83 We have now projects for EVN TELECOM to apply for QSPM matrix: N o Key factors PROJECT PROJECT PROJECT Attractiveness Scores Total Attractiveness Scores Attractiveness Scores Total Attractiveness Scores 0,3 0,1 0,4 0,1 0,4 Experienced staffs 0,1 0,3 0,1 0,3 0,1 0,3 Cultural environment is healthy 0,09 0,27 0,09 0,27 0,09 0,27 Financial situation is satisfactory 0,09 0,27 0,09 0,27 0,09 0,27 Uncommon services 0,05 0,15 0,05 0,15 0,05 0,2 Possibility of capital tie-up 0,05 0,15 0,05 0,1 0,05 0,15 Available Infrastructure 0,11 0,33 0,11 0,44 0,11 0,44 0,09 0,18 0,09 0,18 0,09 0,18 0,08 0,08 0,08 0,08 0,08 0,16 Depend on power industry Possibility of manufacturing, researching an developing Undiversified products 0,08 0,16 0,08 0,16 0,08 0,16 Marketing and sales support activities 0,08 0,08 0,08 0,08 0,08 0,16 Service stableness 0,08 0,16 0,08 0,24 0,08 0,16 2,43 2,67 Weight Total Attractiveness Scores 0,1 Weight Attractiveness Scores High capacity information network Weight INTERNAL STRENGTHS INTERNAL WEAKNESSES Sum weights EXTERNAL OPPORTUNITIES Economic growth Government regulations (international cooperation) 2,85 0,07 0,14 0,07 0,14 0,07 0,14 0,1 0,2 0,1 0,2 0,1 0,2 Trend of using high - grade services 0,09 0,18 0,09 0,18 0,09 0,27 High speed of telecommunication development 0,14 0,42 0,14 0,42 0,14 0,56 Stable politic and economy 0,08 0,16 0,08 0,16 0,08 0,16 Market share outside the power industry 0,1 0,2 0,1 0,3 0,1 0,4 EXTERNAL WEAKNESS The telecommunication price of competitors reduces 0,04 0,12 0,04 0,12 0,04 0,12 The market accession of other competitors 0,1 0,2 0,1 0,3 0,1 0,3 Competitors with high quality services and wide coverage area 0,1 0,3 0,1 0,3 0,1 0,4 0,07 0,07 0,07 0,14 0,07 0,14 0,05 0,1 0,05 0,15 0,05 0,2 0,06 0,06 0,06 0,06 0,06 0,06 2,15 4,58 2,47 5,14 The development of science and technology in the world EVN TELECOM position in trend of economic integration Government regulations (bandwidth) Sum weights SUM TOTAL WEIGHTED SCORE Page 84 2,95 5,8 We can easily see that the sum total weighted score for project is the highest one (5.8) We also have some other reasons for choosing this project: Firstly, it was only in April of this year that the government allowed 3G technology to be offered by four telecommunication companies These include Viettel, Vinaphone, Mobifone and a joint venture of EVN Telecom and Hanoi Telecom EVN Telecom and Hanoi Telecom have cooperation in taking full advantage of the infrastructure After months since getting the authorization, they ensure to officially provide 3G services Simultaneously, they will support each other to operate the system, coordinate in business policy and avoid the direct competition In the first years, EVN Telecom and Hanoi Telecom will invest 6.000 billions VND in deploying 3G services This will cover at least 50% the populated areas EVN Telecom and Hanoi Telecom leaders have many meetings to coordinate and deploy the 3G high speed mobile network at 1900-2200 MHz band At present, EVN Telecom has 3000 Base Transceiver Stations (BTS) cover in the whole country and synchronous and modern infrastructure Hanoi Telecom has also 1200 BTS In 2009, EVN Telecom and Hanoi Telecom expect to increase the total of BTS to 8000 This will catch up with the top telecommunication provider in Vietnam The government has encouraged the telecommunication providers to share the infrastructure It will help the companies reduce the investment cost, provide better services The cooperation between EVN Telecom and Hanoi Telecom is a favourable condition to have a safest coefficient of operation, improve the service quality and attract more customers These are advantages in merging these two companies in order to compete with the other telecommunication networks in current Vietnamese market Page 85 Secondly, since established, EVN Telecom has been in disadvantageous position compared to other providers This is a CDMA service with interference band (450 MHz) However, EVN Telecom has a firm infrastructure EVN Telecom has chosen a segment that is no provider pay attention (cordless fixed telephone – E-COM) Therefore, with current customers, EVN Telecom and Hanoi Telecom can merge and exploit this segment market Thirdly, with this mergence, the using of CDMA and GSM will help the company to compete with the top providers: Vinaphone, Mobifone and Viettel EVN Telecom and Hanoi Telecom can take full advantages of technology, band, capital source and market From the lesson of other countries, the number of telecommunication providers usually at or instead of or providers in Vietnam This is an indispensable trend in the telecommunication business Combine the result above with these reason, we decide to choose project is the best strategy for Evn Telecom in the future Page 86 PART 3: CONCLUSION The findings and explanation of this thesis demonstrate the importance of applying the business strategies Thus, effective and suitable solutions to carry out such strategies properly play a vital part in EVN’s management Keeping this in mind, we have managed to find solutions to this much concerned problem when doing research on EVN Telecom’s business strategy We hope that our small contribution will help to improve the effectiveness of the business strategy and better achievements of EVN TELECOM in general Telecommunication is still a new industry in Vietnam but with great potential Researches on the mobile information network is not only important to EVN TELECOM but also to the national interest as well Our research results, which thoroughly took into consideration all economic, technical conditions, the legal, socio and environmental aspects, can be the basement for further guidelines and strategy development of the network However, our research can not avoid limitations All comments from lecturers and colleagues are welcome so that we can improve our thesis Page 87 REFERENCES Blocher and co-authors, 2002: “Strategic Analysis and Strategic Cost Management” Brown and co-authors, 2002: “Customer Value Measurement” Fabraham, 1999: “Strategic Alternatives and Choice – The Heart of Strategic Planning” Griffin, 2005: “Competition Strategy” Garry D.Smit, Danny R Arnold, 2003: “Business Strategy and tactics” Statistics Publishing House Hill and Jones, 1998: “Strategic Management: An Integrated Approach” Nguyen Huu Lam (Chef Author): Strategy Management and Competitive Position Development - Education Publishing House, 1998 Material for GeMBA 01 Lecture Strategic Management textbook: Strategic Management - Strategic Management textbook Statistics Publishing House, 2007 10 Raymond- Alain Thietart, 1999: “Enterprise’s Strategy” 11 Website http://evntelcom.com.vn http://evn.com.vn http://www.Strategy-business.com http://thongtincongnghe.com http://www.hanoitelecom.com.vn/ Page 88 APPENDICES Page 89 [...]... meaning to the existence and development of a company - It helps the company recognize the target and direction It is the foundation for determining the orientation and when the company can reach the specific target - The market fluctuation always creates opportunity and risk To build and implement business strategy will help the company grasp and take advantage of it and overcome the market risk and trap... and discipline to the company It is the beginning of an effective administration system, restore the belief of current business strategy and execute the correcting activities 1.2 Building and choosing the Company Business strategy 1.2.1 Process of Business strategy The conception of administration appeared for a long time but the administrative theory that was researched basing on the scientific analysis... PLANNING OF EVN TELECOM 2.1- Summary of EVN Telecom 2.1.1 Formation and development process of EVN TELECOM (EVN Telecom) EVN Telecom is a self-finance subsidiary of EVN Group It found by the 380/NL/TCCBLĐ decision of Ministry of Energy, date 8/7/1995 Head office: 30A Pham Hong Thai, Ba Dinh, Hanoi, Vietnam Tel: + (84 4) 2100 526 Fax: +(84 4) 228 68 68 International transaction name: EVN Telecom 2.1.2... summary, business strategy is an art of optimal organizing and combining resources It proposes and implements the decision that is suitable to the variable trend of environment to win in competitions and reach the long-term target 1.1.2 Specific meaning of Business strategy We can see the basic figures of business strategy are: - Business strategy has to specify the basic target in each phase and be... factors take much affect to the company They are interest rate, period of business cycle, balance of payments, financial and currency policy The company has to select the specific impact Each factor may be opportunity or risk Government and Political factors The government and political factor impact to the company activities The company has to conform to the regulations of tax, loaning, insurance,... build and implement business strategy will firmly create foundation for suitable decision - To build and implement business strategy will take part in increasing the effectiveness of using resources Reinforce the competitive position and ensure an unshakeable development Page 11 1.1.3 The necessary of Company Business strategy 1.1.3.1 Financial benefit The researches show that if a company has a good strategy, ... mission and organizational structure of EVN TELECOM 2.1.2.1 Function and mission - Provide inbound and outbound telecommunications services and Information Technology - Consulting, designing, implementing and maintaining telecommunications and information technology projects Page 32 - Operate and exploit information and telecommunication systems for production, transmission, distribution and sales of electricity... process, product and materials Page 24 The effective information exchange between research and development department and other departments take an important role in the success of company Production factors Production is a line of business connecting to produce process This is the main business line, so it influences on success ability of company There are many positive influences of high quality product... successful The company that has good financial condition trends to plan for the internal and external fluctuation 1.1.3.2 Non financial benefit With the strategy, the company operation will follow one direction This will bring success and high benefit It helps the company to develop with a stable organization and relationship… It will raise the productivity and reduce the risk Besides, it will bring order and. .. amplitude of change of environmental effects Environment factor identifying defines impact of environmental changes on company and almost strategy of company Normally, steering committee makes light of information collecting after it has been carried out Company can collect information in only one day, one weed or longer depending on certain kind of information need collecting Page 26 Nowadays, there is information