Tài liệu Phát triển chiến lược kinh doanh cho các khách sạn thương mại tị hà nội giai đoạn 2011 2020

Phát triển chiến lược kinh doanh cho các khách sạn thương mại tị Hà Nội giai đoạn 2011-2020 DEVELOPING BUSINESS STRATEGY FOR VIETNAM TRADE UNION HOTEL IN HANOI FOR THE PERIOD FROM 2011 – 2020 TABLE OF CONTENT INTRODUCTION 1. Rationale of the study.........................................................................................01 2. Research objectives............................................................................................01 3. Research methodology........................................................................................02 4. Research scope and limitation............................................................................03 5. Structure of the thesis.........................................................................................03 CONTENT CHAPTER I:BASIC THEORY ON BUSINESS STRATEGY.........................................04 1.1. Business Strategy...........................................................................................04 1.1.1. Concepts ..................................................................................................04 1.1.2. Types of strategies....................................................................................05 1.1.2.1. Integration strategies.......................................................................05 1.1.2.2. Intensive strategies.........................................................................05 1.1.2.3. Diversification Strategies................................................................06 1.1.2.4. Defensive strategies........................................................................06 1.1.2.5. Michael Porter’s Generic Strategies...............................................06 1.2. Strategy building process..............................................................................07 1.2.1. Setting business mission..........................................................................08 1.2.2. External Assessment................................................................................08 1.2.2.1. Key external Forces...................................................................................08 1.2.2.2. The process of performing external assessment..............................10 1.2.3. Internal Assessment.................................................................................10 1.2.3.1. Keys internal forces........................................................................10 1.2.3.2. The process of performing internal assessment..............................11 1.2.4. Strategy Analysis and Choice..................................................................11 1.2.4.1. The input stage...............................................................................11 1.2.4.2. The matching stage.........................................................................11 1.2.4.3. The decision stage..........................................................................12 1.3. Tools to build business strategies..................................................................12 1.3.1. Collecting and systemize information.....................................................12 1.3.1.1. EFE Matrix.....................................................................................12 1.3.1.2. IFE Matrix......................................................................................13 1.3.1.3. Competitive profile matrix.............................................................14 1.3.2. Matching stage........................................................................................15 1.3.2.1. SWOT Matrix.................................................................................15 1.3.2.2. SPACE Matrix................................................................................15 1.3.2.3. The Internal-External (IE) Matrix...................................................16 1.3.3. Decision stage .........................................................................................17 1.4. Characteristics of Hotel industry..................................................................18 CHAPTER II: ANALYSIS AND EVALUATION OF BUSINESS NVIRONMENT AND ACTIVITIES OF VIETNAM TRADE UNION HOTEL IN HANOI 2.1. Introduction about Vietnam Trade Union hotel.........................................20 2.1.1. The foundation and development............................................................20 2.1.2. Facilities and services..............................................................................21 2.1.3. Hotel organization chart:........................................................................22 2.1.4. Business results.......................................................................................23 2.2. Vietnam Trade Union Hotel External Assessment......................................24 2.2.1. Macro Environment.................................................................................24 2.2.1.1. Economic Environment..................................................................24 2.2.1.2. Socio-cultural Environment............................................................27 2.2.1.3. Politic Environment........................................................................28 2.2.1.4. Natural Environment......................................................................29 2.2.1.5. Technological Environment............................................................30 2.2.2. Micro Environment.................................................................................31 2.2.2.1. Competitors....................................................................................31 2.2.2.2. Customers.......................................................................................36 2.2.2.3. Suppliers.........................................................................................37 2.2.2.4. Potential Entry of new competitors.................................................38 2.2.2.5. Potential development of Substitute products.................................38 2.2.3. Evaluation of Opportunities and Threats...............................................39 2.2.3.1. Threats............................................................................................39 2.2.3.2. Opportunities..................................................................................40 2.2.4. EFE Matrix for Vietnam Trade Union Hotel in Hanoi..........................41 2.3. Vietnam Trade Union Hotel Internal Assessment.......................................42 2.3.1. Organization Structure............................................................................42 2.3.2. Human Resources ..................................................................................42 2.3.3. Marketing................................................................................................44 2.3.4. Management ...........................................................................................44 2.3.5. Financial and accounting.......................................................................45 2.3.6. Research and Development.....................................................................46 2.3.7. Information Technology and Information System.................................47 2.3.8. Evaluation of Strengths and Weaknesses ..............................................47 2.3.8.1. Strengths.........................................................................................48 2.3.8.2. Weaknesses....................................................................................48 2.3.9. IFE Matrix...............................................................................................49 2.4. Developing SWOT matrix for Vietnam Trade Union Hotel in Hanoi.......50 2.5. Developing IE Matrix for Vietnam Trade Union Hotel in Hanoi..............52 CHAPTER III: BUSINESS STRATEGIES FOR VIETNAM TRADE UNION HOTEL IN HANOI FOR THE PERIOD FROM 2011 – 2020 3.1. Analysis of possibly feasible strategies.........................................................54 3.1.1. General analysis......................................................................................54 3.1.2. QSPM Matrix analysis............................................................................55 3.2. Strategies for Vietnam Trade Union Hotel from 2011 – 2020....................57 3.3. Solutions for applying strategies...................................................................58 3.3.1. Developing facilities................................................................................58 3.3.2. Turning the hotel into a green hotel.......................................................58 3.3.3. Marketing Solutions ...............................................................................60 3.3.3.1. Market segmentation:.....................................................................60 3.3.3.2. Building Positioning statement.......................................................60 3.3.3.3. Advertising ....................................................................................61 3.3.3.3. Distribution and Yield Management ..............................................61 3.3.4. Developing Human resources ................................................................65 3.3.4.1. Setup job description and performance standard............................66 3.3.4.2. Calculating number of employees for the hotel..............................66 3.3.4.3. Establishing source of labor............................................................67 3.3.4.4. Staff training...................................................................................68 3.3.5. Restructure the organization...................................................................68 3.4. Timeline for implementing solutions............................................................69 3.4.1. Time line..................................................................................................69 3.4.2. Provision for unexpected situations:.......................................................71 CONCLUSION......................................................................................................72 REFERENCE:........................................................................................................73 APPENDIX:...........................................................................................................75 LIST OF TABLES, CHARTS AND FIGURES Table 1.1. Example of a blank EEF Matrix ...........................................................13 Table 1.2. Example of a blank IEF Matrix ............................................................14 Table 1.3. Example of a blank CPM Matrix .........................................................15 Table 1.4. Example of a blank QSPM Matrix .......................................................18 Table 2.1. Vietnam Trade Union Hotel in Hanoi Room Tariff .............................21 Table 2.2. Vietnam Trade Union Company Business results from 2006 to 2010 ......23 Table 2.3. Vietnam Trade Union Hotel in Hanoi Business results from 2006 - 2010 .....24 Table 2.4. Hotel market in Hanoi in 2010 .............................................................31 Table 2.5. The development of tourists to Hanoi from 2005 – 2010......................36 Table 2.6. EFE Matrix for Vietnam Trade Union Hotel in Hanoi .........................41 Table 2.7. The increase in Revenue and Income before tax of Vietnam Trade Union Hotel in Hanoi ..................................................46 Table 2.8. IFE Matrix for Vietnam Trade Union Hotel in Hanoi ..........................50 Table 3.1. QSPM Matrix for Vietnam Trade Union Hotel in Hanoi .....................56 Table 3.2. Timeline for solutions ..........................................................................70 Chart 2.1. Organization chart of Vietnam Trade Union Company .......................22 Chart 2.2 Organization chart of Vietnam Trade Union Hotel in Hanoi .................23 Chart 2.3. The increase of tourists to Hanoi from 2005 - 2010 .............................37 Figure 1.1. Example of a blank IE Matrix .............................................................17 Figure 2.1. SWOT Matrix for Vietnam Trade Union Hotel in Hanoi ...................51 Figure 2.2. IE Matrix for Vietnam Trade Union Hotel in Hanoi ...........................52 INTRODUCTION 1. Rationale of the study Tourism is an economic, environmental and social force of global proportions. Developing a strong and sustainable tourism industry has become a priority of great importance of many countries. In Vietnam tourism has been recognized as a leading industry providing a huge source of income and job creation for the country. Along with the development of tourism industry in Vietnam, tourism in Hanoi has also been developing very fast creating huge demand for hotels and hotel rooms. However, this fast development is very tempting to new entry to this industry and thus can create very fierce competitions. In addition, the fluctuation of tourism and hotel industry can create problems for development of hotels. For that reasons each hotel needs clear strategies for development. The hotel is also the main financial and revenue source as well as the head quarter of Vietnam Trade Union Company. The health and development of the hotel will greatly affects the health and development of the company and thus a good strategy for the hotel is vital. Vietnam Trade Union Hotel in Hanoi is working with positive business results and having great potential for development. However, the period form 2011 to 2020 is posing a lot of changes and challenges for tourism industry in Vietnam in general and in Hanoi in particular while the hotel has not a specific strategy for the new period. To prepare for this, the hotel should have matching strategies. For all these reasons, it is urgent that there is a study to develop business strategies for Vietnam Trade Union Hotel for the period from 2011 to 2020. 2. Research objectives This research project aims to achieve the following objectives:  To provide an overall picture of Vietnam Trade Union Hotel’s business activities with regard to strategy development. 1  To analyze and evaluate the internal and external factors affecting Vietnam Trade Union Hotel  To identify possibly feasible strategies for the hotel for the period from 2011 2020.  To propose some solutions for applying strategies for the hotel. 3. Research methodology The method of studying is using internal and external audits along with EFE and IFE matrixes with the 5-force model. The results of the analysis of the matrixes and the model will then be matched with SWOT and IE matrixes to identify possible strategies to apply. The QSPM matrix is then used to identify the suitable strategies to apply. When the strategies are identified, a set of solutions to realize strategies are proposed. In terms of data collection and analysis, in this project qualitative research method was used intensively. The data were collected from secondary and primary sources. Qualitative method will be applied to analyze and evaluation about business activities and strategies at Vietnam Trade Union Hotel along with other internal and external factors. The following sections present in details the methods to gather and to analyze the data sources used in this project. Secondary data sources For theory framework, textbooks on Tourism, Hotel Management, Strategy Management and Hotel Marketing are selected as sources of reference. For external evaluation, reports, articles and other data will be collected from VNAT, ITDR, Hanoi Administration of tourism, Vietnam Trade Union Hotel and other sources. The data from secondary sources provide information regarding to an overall picture of tourism in Vietnam and Hanoi; the demand for and supply of hotel room; the business results of Vietnam Trade Union Hotel.. 2 Primary data sources Primary data source were collected using qualitative method as follow:  In-depth interviews will be conducted with General Manager of the hotel and other heads of department  Besides interviews, observation will be applied to evaluate the other related fields of business and operation of the hotel 4. Research scope and limitation The research focuses on the business activities and results in Vietnam Trade Union Hotel and tourism and hotel industry in Hanoi in the period from 2005 to 2010. Other supporting research, data collections are limited to Hanoi area. 5. Structure of the project This project includes 3 main chapters: Chapter 1: Basic theory on business strategy Chapter 2: Analysis and evaluation of Business environment and activities of Vietnam Trade Union Hotel in Hanoi Chapter 3: Business strategies for Vietnam Trade Union Hotel in Hanoi for the period from 2011 – 2020 3 CHAPTER I: BASIC THEORY ON BUSINESS STRATEGY 1.1. Business Strategy 1.1.1. Concepts In order to develop business strategy it is necessary to have a clear definition on strategy to serve as guidance for study and analysis. There are several definitions of strategy such as the definition by Chandler “the determination of the basic longterm goals and the objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals." [5] and the one by Quinn “a strategy is the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole” [10] or the one by Johnson and Scholes “Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations” [8]. From all the definition it can be seen that strategy aims at identifying how a business or organization reach its goals and objectives. In application, there are 3 levels of strategies. The first one is Corporate Strategy which is concerned with the overall purpose and scope of the business to meet stakeholder expectations. The second one is Business Unit Strategy with more regard on how a business competes successfully in a particular market. This type of strategy puts more emphasis on choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc. The last one is the Operational Strategy with the concern on organization of each part of a business to deliver the corporate and business-unit level strategic direction. In this study, more emphasis is placed on the strategies at strategic business level than other levels. However, other types of strategies are also paid attention to as they are very closely related and interacted. 4 1.1.2. Types of strategies It is necessary to have a pool of choices of strategies to see which one or ones could be suitable of a business. For that reason the different types of strategies are briefly described here. They are integration strategies, intensive strategies, diversification strategies, defensive strategies and lastly Michael Porter’s Generic Strategies. 1.1.2.1. Integration strategies A company can use integration strategies to improve the efficiency and effectiveness of its business activities and to save cost and to be independent from its suppliers or distribution channel or to change its competitors into parts of its operation to increase strength and reduce competition. A company can apply Forward integration by gaining ownership or control over distribution channels. In the opposite way, the company can gain the ownership or control of its suppliers. This is called Backward integration. The company can also apply Horizontal integration by getting ownership or control over competitors by mergers, acquisitions, and takeovers. These strategies can be applied when it is more profitable to do and the company has enough resources and ability to do. 1.1.2.2. Intensive strategies When a company wants to improve its competitive position with existing products, intensive strategies are to be applied. Intensive strategies include strategies like market penetration, market development, and product development. A company can do Market penetration to increase market share for its products or services in present market by intensive marketing effort like increasing number of sale staff, advertising expenditures, sale promotion etc. The company can also introduce its present product or service into new geographic area. This is called Market development. Finally, the company can increase sale by improving or 5 modifying its present products or service. This action is called Product development. 1.1.2.3. Diversification Strategies Sometimes it is risky to invest on a single industry or a business activity and thus a company may chose to have diversification strategies to reduce the risk and increase the revenue and profit. The diversification strategies can be concentric diversification which is done by adding new but unrelated products or services, or horizontal diversification which is done by adding new but unrelated products or services for present customers. This is less risky than conglomerate diversification which is adding new but unrelated products or services because the company is very familiar with the customers and so are the customers. 1.1.2.4. Defensive strategies At time, a business may face difficulties or want to change business focus or direction etc. and thus it may think of defensive strategies. When a business regroups though cost and asset reduction or reverse declining sales and profits it can apply retrenchment by selling land and properties, closing factories, reducing number of employees… It can also sell a division or part of it which are not profitable or requiring too much capital or not well fitted with its other activities. This action is called divestiture which can be part of retrenchment. The company can chose liquidation which is selling all of company assets, in parts, for their tangible worth. 1.1.2.5. Michael Porter’s Generic Strategies According to Michael Porter a firm's strengths ultimately fall into one of two kinds: cost advantage and differentiation. Applying these strengths results in three generic strategies: cost leadership, differentiation, and focus. These strategies are applied at the business unit level. 6 a. Cost Leadership Strategy The main reason for applying integration strategies is to gain cost leadership benefits. Being the low cost producer in an industry for a given level of quality, a company can sell its products or services either at average industry prices to earn a profit higher than that of competitors, or below the average industry prices to gain market share. In the case of a price war, the company can still have some profitability while the competitors suffers losses. Even when not in a price war, as the industry matures and prices decline, the company still remains profitable for a longer period of time. The company can gain cost advantages by improving process efficiencies, gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether etc. b. Differentiation Strategy Applying differentiation strategy means developing of a product or service that offers unique features that are valued by customers and that customers perceive to be better than or different from the competitors’ products. With that differentiated product or service a company can charge a premium price for it. c. Focus Strategy With the focus strategy a company concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. The result of this strategy is that the needs of the segment can be better met by focusing entirely on it. The company now can gain a high degree of customer loyalty, and this loyalty discourages other companies from competing directly. 1.2. Strategy building process Strategy management process includes 3 stages of strategy formulation, strategy implementation and strategy evaluation. For the purpose of this study the 7 strategy formulation or building will be discussed at length. Other stages will be mentioned as supporting processes. Strategy formulation includes setting business mission, identifying external opportunities and threats, identifying internal strengths and weaknesses, generating pool of strategies for choice. 1.2.1. Setting business mission Developing business mission is considered the first step in strategy building process. For this study the definition of business mission by Mintzberg is used. According to Mintzberg “A mission describes the organization’s basic function in society, in terms of the products and services it produces for its customers”. [9] With this definition a business mission should have a purpose telling why a company exists; a strategy and strategic scope defining range of products and services and method of competing; policies and standards of behavior; values and culture The outcome of the business mission setting is the vision statement and mission statement. These statements should cover all elements mentioned above. 1.2.2. External Assessment As mentioned above, the purpose of an external assessment is to identify opportunities that could benefit a company and threats that a company should avoid. In order to do external assessment keys external forces and process should be established. 1.2.2.1. Key external Forces According to Fred R. David, external forces can be divided into five broad categories of Economic forces; Social, cultural, demographic, and environmental forces; Political, governmental, and legal forces; Technological forces; and Competitive forces. [7]. However, for the shake of this study they can be grouped into two main levels: Macro environment level and industry level. 8 a. Macro environment factors This level include the first 4 factors of Political, governmental, and legal forces; Economic forces; Social, cultural, demographic, and environmental forces; Technological forces. They are abbreviated as PEST for the easy of remembering. b. Industry environment factors These factors are another form of competitive forces and they can be analyzed under the Michael Porter’s five forces model. This model is a framework for the industry analysis and business strategy development. This model identifies and analyzes five forces that determine the competitive intensity and therefore attractiveness of an industry or a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. These five forces include: the threat of the entry of new competitors, the intensity of competitive rivalry, the threat of substitute products or services, the bargaining power of customers (buyers), the bargaining power of suppliers.  The entry of new competitors will eventually decrease profitability for all companies in the industry.  The intensity of competitive rivalry is the major determinant of the competitiveness in most of the industry.  Substitute products or services are the one outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives and thus can threat the revenue and profit of an industry. 9  The bargaining power of customers is the ability of customers to put the company under pressure, which also affects the customer's sensitivity to price changes.  The bargaining power of suppliers is another pressure over the company. When there are few substitutes, suppliers may refuse to work with the company, or, e.g., charge excessively high prices for unique resources and thus put the company in a difficult situation. 1.2.2.2. The process of performing external assessment This process starts with the collection of competitive intelligence and information about social, cultural, demographic, environmental, economic, political, legal, governmental, and technological trends. The second step in this process is to assimilate and evaluate information collected. In this step, factors collected should be prioritized by numbered them from 1 for the most important opportunity/threat to 20 for the least important opportunity/threat. The list should then be communicated and distributed widely in the company. 1.2.3. Internal Assessment All organizations have strengths and weaknesses in the functional areas of business. No enterprise is equally strong or weak in all areas. Therefore internal assessment is necessary to identify strengths and weaknesses. This assessment goes hand in hand with external assessment to provide a basis for establishing objectives and strategies. Just like doing external assessment, keys internal forces and process should be established. 1.2.3.1. Keys internal forces There are many forces and indicators that internal assessment needs to look at in all fields of management, marketing, finance/accounting, production/operations, research & development, management information systems. 10 Other resources are also needed to be looked at. They are: physical resources, human resources, organizational resources. While assessing the key internal forces the distinctive competencies, which are the strengths that competitors cannot easily match or imitate, should be identified and be taken advantage of to build competitive advantages. 1.2.3.2. The process of performing internal assessment The process of performing an internal assessment process is very similar to that of performing an external assessment. This internal assessment starts with gathering information on the company operations and then assimilating and evaluating the information. In the assimilating and evaluating process, factors collected should be prioritized by numbered them from 1 for the most important strengths/weaknesses to 20 for the least important strengths/weaknesses. The list should then be communicated and distributed widely in the company. The process of performing an internal assessment provides more opportunity for doers to understand how their jobs, departments, and divisions fit into the whole organization or company. 1.2.4. Strategy Analysis and Choice In order to come to a final strategy or strategies to achieve mission and objectives a company must complete internal and external assessments and match them with objectives and mission to achieve to generate and evaluate feasible alternative strategies. This process includes 3 stages from input to matching and finally decision stage. 1.2.4.1. The input stage In this stage EFE Matrix, IFE Matrix and CPM are developed to provide basic input information for the matching and decision stages. The methods for developing these matrixes will be discussed later in this study. 1.2.4.2. The matching stage 11 In this stage, different tools are used to match external and internal critical success factors to generate feasible alternative strategies. These tools are SWOT matrix, SPACE matrix, BCG matrix, and the IE matrix. Again, the methods for developing these matrixes will be discussed later in this chapter. 1.2.4.3. The decision stage After completing matching stage, there are several feasible alternative strategies revealed. These strategies should then be prioritized to identify the best strategy or strategies. The other way to identify the best one or ones is using Quantitative strategic planning matrix. 1.3. Tools to build business strategies As mentioned, for each stage of strategy analysis and choice there are several tools to be used and they will be discussed in more detail in this part. They are also grouped in the corresponding stage as in the part of strategy analysis and choice. 1.3.1. Collecting and systemize information 1.3.1.1. EFE Matrix External Factor Evaluation (EFE) matrix is a 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. EFE matrix can be developed with the following steps:  First, gather a list of external factors and divide them into two groups: opportunities and threats.  Second, assign a weight to each factor. The value of each weight should be between 0 and 1. Zero means the factor is not important. One means that the factor is the most influential and critical one. The total value of all weights together should equal 1. 12  Third, assign a rating to each factor. Rating should be between 1 and 4. Rating indicates how effective the firm’s current strategies respond to the factor. 1 = the response is poor. 2 = the response is below average. 3 = above average. 4 = superior.  Fourth, multiply each factor weight with its rating. This will calculate the weighted score for each factor.  Finally, total all weighted scores by adding up all weighted scores for each factor. This will calculate the total weighted score for the company. Table 1.1. Example of a blank EEF Matrix Opportunities Weight Rating Weighted score Threats Poor (1), below average (2), above average (3), superior (4) Total weighted score 1 Source: Adapted from Fred R. David, Strategic Management Concepts & Cases. [7, p111] 1.3.1.2. IFE Matrix Internal Factor Evaluation (IFE) matrix is tool for evaluating major strengths and weaknesses in functional areas of a business. EFE matrix can be developed with the following steps:  First, gather a list of about 20 internal factors and divide them into two groups: strengths and weaknesses.  Second, assign a weight to each factor. The value of each weight should be between 0 and 1. Zero means the factor is not important. One means that the factor is the most influential and critical one. The total value of all weights together should equal 1.  Third, assign a rating to each factor. Rating should be between 1 and 4. Rating indicates how effective the company’s current strategies respond 13 to the factor. 1 = major weakness. 2 = minor weakness. 3 = minor strength. 4 = major strength.  Fourth, multiply each factor weight with its rating. This will calculate the weighted score for each factor.  Finally, total all weighted scores by adding up all weighted scores for each factor. This will calculate the total weighted score for the company. Table 1.2. Example of a blank IEF Matrix Strengths Weight Rating Weighted score … Weaknesses … Total weighted score 1 Source: Adapted from Fred R. David, Strategic Management Concepts & Cases. [7, p151] 1.3.1.3. Competitive profile matrix Competitive profile matrix is tool to compare the firm with the major competitors of the industry. Competitive profile matrix compares a company’s strengths and weaknesses relatively to its competitors. The CPM score is measured on basis of critical success factors. CPM includes both internal and external factors to evaluate overall position of the company with their major competitors. The process of constructing CPM matrix is much the same that of Internal and External Evaluation Matrixes. Rating in CPM represents the response of a company toward the critical success factors. The highest the rating of 4.0 means better the response of the company towards the critical success factor, while the lowest rating of 1.0 means the poor response of the company towards critical success factor. Table 1.3. Example of a blank CPM Matrix Company Critical success factors Weight Rating Weighted score Competitor 1 Rating Weighted score Competitor 2 Rating Weighted score 14