8/10/2019 BS1 - N_m

1/19

Introduction

FPT telecom was established on 31st, January, 1997 which has known as th leader IT

company inVietnam with many achievements as Sao Khue award, Viet Nam Golden Star

award and so on. It also been named Best Enterprise Partner of the Year for many years by

Cisco, IBM and HP. Beginning with 4 members, up to now, FPT has developed rapidly with

3200 employers with 40 branches across the country and appearence in 36 provinces and

cities. FPT has secured the trust of thousands of business and million of consumers. With

ambition to become group's leading infrastructure development and providing electronic

services for e-communities. Base on combination between internal and external factors, FPT

telecom have to built up their strategies. Hence, it is very importance to analyse and evaluate

the effectiveness of their strategies

8/10/2019 BS1 - N_m

2/19

Task 1:

1. The context of business strategy

Johnson and Scholes (Exploring Corporate Strategy) define strategy as follows:

"Strategy is the direction and scope of an organisation over the long-term: which achieves

advantage for the organisation through its configuration of resources within a challenging

environment, to meet the needs of markets and to fulfil stakeholder expectations". To

success in business, FPT have to clear about their vision, mission, goals and objective, values

and stackeholder which are basic elements to set up strategy, especially FPT telecom is group

which content 7 sevices or we can talk SBU (strategic business units) which include in

telecom, software, information system, education, trading, information service and

investment. In this case, we just focus on trading field of FPT FTG (FPT Trading), which

has outstanding business performance and growth rate, to analysisis strategies of them

Vision: FPT strives to be a company guided by technological innovations, committed to the

highest level of customer satisfaction, contributing to national prosperity and providing its

employees with the most favorable work environment possible, enabling them to reach their

full potential in their professional careers as well as their spiritual lives

To success in long-term, corporation has to set up their own vision which use as orientation

the way of development and what they want to achieve in the future. The vision motivateemployees and set the direction for the development of corporation. Base on FPT vision, FGT

also set up their vision. In this case, FTG bring to us clearly vision which show that they not

only care about their own but also care about employers. They provide the most favorable

work environment possible to employess and bring statisfaction to customers. They also give

information to attracted the attention of stakerholder and assess the potential of corporation.

Mission: For the E-citizen

Mission statement reflects every facet of business, this also tell why organization exist and

what is the organization is. Organizations mission statement is brief description of a

company's fundamental purpose and like steps to helpp organization to achieve vision. FPTs

strategy through 2015 bears the name For the E-citizen and can be described as follows:

FPT strives to be a leading corporation in terms of infrastructure development and e-

services provision for the E-citizen community.

http://www.amazon.co.uk/exec/obidos/ASIN/0273651129/tutor2u00http://www.amazon.co.uk/exec/obidos/ASIN/0273651129/tutor2u00

8/10/2019 BS1 - N_m

3/19

IT and telecommunications will continue to play the role of an essential foundation in

the trend toward digital convergence so as to provide the most convenient products

and services to E-citizens.

Aims at creating valueadded chains to fully satisfy the needs of E-citizens.

They set up mission base on real situation, they know what is customer need and update

world and Vietnam development. In vision, they said that they wanted to become a company

guided by technological innovations. And they know that IT and telecommunications will

have importance role in social development and that is also which they focus on to develop.

Development in IT and telecommunications accompany with demand using e-service. Hence,

you can see that mission and vision in here have relate with each other.

Value:FTG spirit

FTG spirit include the core values which was built in the companys difficult time during

company development. Thought that, they learn how overcome challenges and this is

importance part of FPT which set up FTG culture and FTG brand. The core values built the

FPTs success in 20 years:

Respect-Innovation-Teamwork

Dedication-Exemplariness-Perspicacity

They respect idividual but also pay attention to teamwork. Each FTGers have responsible to

protect their value which maintain FTG success after success.

Goals and objective: Simply, Goals is what organization want to achive or gain and

objective is more detail than goals and it also steps take to reach the goals. Mr. Le Quang

Tien (Vice Chairman of Management Board, Vice General Director) stated FTGs goals

in2009:.FTG revenue by 5% GDP of Vietnam. With Vietnam GDP growth from 5-9%

a year, FTG do to make $5 billion in revenue in 5-7 years. But, at first, FTG must

maintain and develop what FTG has been having. Goals should be SMART (Specific-

Measurable- Attainable- Relevant and Time bound) and in this case FTG use it effectively.

FPT is one of the biggest group in Vietnam, and FTG stand as number one in the field

of product distribution of information technology and telecommunications in Vietnam. So

their goals is clear and achieved. Due to goals, FTG also set their objective but with

limitation of imformation and other impacts. Thus, I only show objectives which given in

2011.

8/10/2019 BS1 - N_m

4/19

FTG targeting 14.8% growth in sales and profit before tax growth of 20.7%

(compared with 2,023,193 in 2010).

FTG Corporation will be converted into one-member limited liability companies by

FPT Corporation is the sole owner.Core competences:

Core competencies is important capabilities which support company achieving advantaced

competencies and that is powerful tool to comapre with other competitors. In other way, we

can see that as aunique ability. FTG also have their core competences which make them

become difference than others.

- Their experience in distribution and relationship with partners: As I told before FTG

is biggest company in in the field of product distribution of information technology

and telecommunications in Vietnam. They can do that because FTG has the

largest distribution network in Vietnam with over 1,500 agents in 64 provinces and

cities with 1549 employeers. They are also reliable partner of more than 60

prestigious global vendors including IBM, Lenovo, Microsoft, HP, Nokia, Toshiba,

Oracle, Samsung, Cisco, Dell, Motorola, Apple, Intel, Vertu, Symantec, Nec, Seagate,

Logitech, Foxconn, MSI, and Sandisk. Do not stop at there, FPT want to create

partnership with other international manufacturers, and in 2010 they are success to

contract with Gigabyte, Mitsumi.

- The lead in manufacturing "Made-in-Vietnam" technology products: Besides

distribution of information teachnology, FTG also investment into product their own

product F-store. The F99 series mobile phone, which was producted by FTG, and

laster version double-SIM multi-function F993G phone have both gained success. To

release in 2002 and up to now FPT's Elead computer has continuously popular and

gets many awards.

2. The signification of stakeholder.

Stakeholder has very importance role in each companys performance which has direct or

indirect stake in an organization because it can affect or be affected by

thecompany'sactions,objectives, andpolicies. But in some case their influences are in

difference level so we can divide them to 3 types: internal stakeholders, connected

stakeholders and external stakeholders.

http://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/action.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/policy.htmlhttp://www.businessdictionary.com/definition/policy.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/action.htmlhttp://www.businessdictionary.com/definition/organization.html

8/10/2019 BS1 - N_m

5/19

Internal stakeholders:

They are people work for FTG as employees, managers and affect to day-to-day activities of

the corporation. Board of managers are every importance they set up companys strategy,

making decision, controlling finance. They have responsible with companys success and

failure. In each department, managers have responsible to control activities and ensure they

comply with the proposed plan and link other departments together. With FPT, they require

Leaders at different levelsthe keepers of this spiritneed to be dedicative, exemplary and

perspicacious. Only by doing so can FPT develop and survive the time. Throught that, you

can see that managers have strong affect on how to FTG run. If managers have indirect to

company, eployees will have direct to product and company. Especically, FTG is distribution

of information technology, employees work as saler who will direct contact with customer

and throught those people customers will built up FTGimage in there mind. Because of

working direct with customers or products, they can come out good ideas which can help

FTG improve themselfe. If employees misunderstanding about companys strategy, company

will never and ever achieve the success.

Connected stakeholders:

This group will include shareholders, customers, banker and suppliers, who invest or relevant

to company situation. Shareholders or stockholder where company can raise capital to run

their business, thus they have influence to finance field of company. And how many shares

which they holding are also tell what their voice power is. They wil have effect to voting,

making decision and so on. Besides that, bankers and suppliers also impact to FTG

development, especically with distribution of information technology field, hence their

suppliers in here is Toshiba, Oracle, Samsung, Cisco, Dell, Motorola, Apple and so on. FTG

need set up long-term contracts with detail clearly about product, prices, responsiable and so

on. If FTG has good relationship with supplier they can have competitive price advantage

and diversity product. And company can ensure about a stable source of product without

worrying about the scarcity. Any company need connecting with bank as like financial

solution but it also risk with higher interest charges. Finally, satisfaction customers is the aim

which any company want to achive, through that they can gain more profit and take to steps

to their goals. In the field of FTG activity is a field which is very sensitive with customerss

assessment. If they lost their reputation which they had spent many time and effort to built

up through years, they also lost good connecting with customers and recieve the decrease in

revenue.

8/10/2019 BS1 - N_m

6/19

External stakeholders

With external stakeholders, we have goverment and competitors. Goverment can have affect

to business in many ways such as policy, tax, standards and so on which make FTG has to

change themself to suitable with it. Besides that, with goverments support FTG can become

more success in contract with other intertional supliers and essy to earn more maket share in

Vietnam and penetrate to ASIA and export their product. CMS, CMC and Thanhgiong

company is current competitors of FTG. Now, FTG is leader of distribution of information

technology in Vietnam but they have to improve themself to maintain this position.

Task2:

1. External enviroment

External enviroment is factors surrounding organization which influence to company making

desicion and activities, base on that compnany can determine its opportunities and risk. To go

more detail, we will focus on analysiss PESTEL and Porters five forces.

1.1Analysing PESTEL:

PESTEL stands for Political, Economic, Socio-cultural, Technological, Environment/

ecological, Legal which bring influence to making decision and set up strategies from outside

company.

i. Political-legal factor

Political-legal has affect to many facts and they also set up standers which FTG has to

pay attention and implement such as tax law, employer law, and so on. Vietnam has

8/10/2019 BS1 - N_m

7/19

stable political, hence FTG can stable development without worrying about war,

violence, political instability and so on. But, the fact that, Political-legal in Vietnam

quite unreasonable and cumbersome which hinder the development of the company

such as wasting time and money to get permit. Nowadays, Vietnam also join in many

international organization such as WTO and ASEAN. Thus, this is chances for

company expand their business and protect fair competition in business in both

outside and inside company. But they also comply the rules of international

organization

ii. Economic factor

After recession in 2008, world economy fell in crisis seriously and many company

was bankrupt. And of course, it also bring ifluence to Vietnam economy. But up to

now, Vietnam economy is growing steadily again. And FTG had overcame it with

revernue is 13,339,409 million VND and profit before tax is 411,834 milion VND.

FTG and other company was in net business which we can call economy and which

occur in that can bring influence to other.

iii. Socio-cultural factor

In any field of live, socio-cultural always has influence to and base on difference on

location, demorgraphy and life style will have different requirement and affect. If

company does not care about socio-cultural they can be accepted by customer. Turn

back this case, Vietnam has larger population (more than 86.936.464) and young

people take large persentage and Vietnam economy grow rapidly so this is change for

FTG expand their business. FTG is run by Vietnamese people so they what band

people prefer to use. In this perious, FTG has just distribute information technology

within Vietnam and not penetrate in other countries. But in long-term, I believe they

will develop with incredible speech and penetrate in international trading soon.

iv. Technological factor

Nowaday, techonology is raise in other level than 10 years ago, almost countries,

almost industry always focus on technological effort. And in some case, it will

decision failure or success. FTG work in technology field, thus, technological factor

will have importance affect to development. Using internet as a channel to

communicate with customers, in their homepage, they can update their information

about their product, promotion, events and so on which will attract customer attention.

They can add customer information as database in software and it is eassier to satisfy

customer and creat high quality service. Predicting market and timely adjustment of

8/10/2019 BS1 - N_m

8/19

market changes are the advantages what technology brings. With technology be

adding to their prodduct, which we call made by FTG, which can make it become

more perfect and useful. And this can become competitive advantages of FTG.

1.2Porters five forces

In any industry, Porters five forces can give us a clear picture of competitive enviroment,

competitive opportunities and threats. Thus all impact or affect will be identified. And now,

we will apply Porters five forces into FTG and find down what is their opportunities,

threats and so on.

Threat of new entrants:

In technology and distribution of information technology field, FTG is leader in term

of scale and revenue. Net business which bring most competitive advantages to FTGwith the distribution network of more than 1,500 retailers across the nation and they

also contract with international technological company to exclusive distributor of

information technology product. However, this kind of business (distribution of

information technology) is not required a large economic of scale and not need huge

of capital but to reach the high level like FTG is not easy. FTG also have difference

in product, F-store with The F99 series mobile or FPT's Elead computer and Hence,

the barriers to entry is high. Bargaining power of buyers:

8/10/2019 BS1 - N_m

9/19

FTG work in techology field which like importance part of our live and noone can

deny its useful. For example, we need mobile phone to keep connect with other

people, using it like useful tool in working, studying and also entertaiment. But,

customers can tend to cut their spending on technology when they have problem in

finance. Instead of buying expensive items, they will buy sometime with normal

prices or choice other brand or distribution which have lower price. As result, FTG is

affected by their customer and bargaining power of buyers is quite high.

Threats of substitute products and service:

In any field or business threats of substitute product and service alway have big

influence to corporation. In this case, FTG does not have many afect from substitute

products and servicebecause customers can buy expensive or cheaper product but

thay can substitute landline telephone for mobie.

Bargaining power of suppliers:

As distribution company, FTG has been affected by suppliers. Kinh Do always

cooperates with both domestic and abroad prestigious suppliers in order to exploit the

good quality. Many company as Samsung, Nokia, LG and so on have factors in

Vietnam, but, some others FTG has to import form outside such as Apple, Dell. With

product has imported from outside, FTG has to pay more fee so prices will higher,

hence, bargaining power of suppliers has influence to FTG.

To sum up, after analysising and assessment, we saw which will have influence to FTG and

also the level of influence. So, FTG should thinks about other ways to develop their products

which can create competitive advantages for them.

8/10/2019 BS1 - N_m

10/19

2. Organizational audit.

2.1Resources audit:

The resource audit identifies the resources available to a business and also evaluate the level

of performance of business. In this term, we will studying about 4 main part: Financial

Resources, Human Resources, Management Resources and Intangible asset:

- Financial Resources:

Financial rescources includes all factors which relavate to short term and long term

revenue and working capital. A strategy needs to be very carefully managed from a

finance point-of-view. FPT capital is 372,600,000,000 VND. in 2010, FTG has

reached 104.9% of plan sales, 5% growth than 2009 (13,339,409 in 2010 and

12,744,394 in 2009). In particular, gross profit 107.8%, 26.6% growth in profit

before tax was 107.5% increase 13% earning per shares reached

110.8%, 113.3% growth. Base on data above, we can say that FTG has strong

financial resource.

- Human Resources:

Throught years, FTG has built professional management, who have many experience

in investment and management, and high quality of emlpoyees who can come out

greaat idea to create new trend. They also create good condition of working nad built

up FPT spirist in each staff or manager. Taking employees form FPT university and

training them to meet FTG requirement is good resources.

- Managment Resources:

More than 1,500 retailers across the nation and always meet requirement of strategy

or buyers. But in this case, FTG also create professional managers and require that

leaders at different levels need to be dedicative, exemplary and perspicacious keeping

strong link between the departments to take FTG to success.

- Intangible asset:

The intangible resources of a business is very crucial. FTG are leader in this field in

Vietnam and of course they has built strong brands as the key factor in whether a

growth strategy is a success or failure. Intellectual property also the tool to protect

their own product. They also set up mental work responsibly and efficiently.

8/10/2019 BS1 - N_m

11/19

2.2 Value Chain

Internal envirorment include factors within organization which influence to making decision

and activies. Base on the value chain, we have 9 factors which divide into 2 main part:

primary activities and support activities, which combinate with each other.

Primary activitieshave direct relation to production, sales, marketing, delivery or service.

Primary activities Description

Inbound logistic

- Recieving and Storage products or items to ensure

about quality of product

- High quality of employess to take care about receiving,

handling and storing product to take them into

warehousing, transport, so on.

8/10/2019 BS1 - N_m

12/19

Operations

- FTG mostly develop distribution of information

technology from manufacturers so they need to product

Classification, set prices, check quality and so on

- Training staffs and provide good condition of working.

- Making mobie or computer by items.

Outbound logistics

- FTG has strong net distribution with more than 1,500

retailers and 1,549 staffs across the country to serve

the needs of all customers

- Base on characteristics of goods, stroring product and

its distribution to customer packaing, testing, diverly

and so on

Marketing and sales

- Posters, newspaper, television and internet are taken

full advantages

- The distribution and retail channels of FTG created

trust and confidence of customers throughout the years.

- FTG becomes distribution company which has largest

net distribution in this field

- Their promotion in especical event such as starting new

semester, Tet holiday and so on also attack customers

After sales service

- The service centre with high quality of employees and

modern to statisfy customer requirement as

maintenance and of course

- With each product, they also have warranty product.

Support activities include procurement, techonology development, human resource

management, Infrastructure to support the primary activities.

Support activities Description

Procurement

- Finding serouce and negotiation with

suppliers

- make sure that they can get

diverse sources.

8/10/2019 BS1 - N_m

13/19

Human resource management

- Taking employers for FPT universityor

other resource after that they train

human to meet the training needs and

capacity building, skills and qualities

consistent with the development of the

company present and future.

- Professional management has

importance position to make sure that

can get reasonable policy or strategy

Technology development

- FTG alway update technology

information and using sortware to

control every thing better, and predict

situation which they have to face in

future.

Infrastructure

- Withover 1,500 agents in 64 provinces,

FTG has largest net distribution in this

field in Vietnam.

- The quality of each agents also have

influence for the sale.

8/10/2019 BS1 - N_m

14/19

Task 3

1. SWOT analysis:

Strengths

- The leader in

distribution of

information technology

in Vietnam/ Famous

brand name in Vietnam

market

- The lead in

manufacturing "Made-in-

Vietnam" technology

products.

- Effective distribution

channel in domestic

market.

- Strong revenue and

capital

Weakness

- Not much difference in

product with other

competitors.

- Just exploit the

domestic market.

- Heavily reliance on

some products/brand

Opportunities

- Large domestic market

(nearly 9 million)

- Penetrate the

international market

when Vietnam is

member of WTO and

Asian.

- Do not have too much

big competitors

SO strategy

- Expand more market

share with distribution

of information

technology and their

own product as F-store.

- Penetrate into

international trading

with support from

international treaty.

WO strategy

- To fully exploit the

domestic market.

- Joining into

international market.

8/10/2019 BS1 - N_m

15/19

Threat

- Changing of Consumer

Price Index (CPI) can

affect to consumer

behavior.

- Exchange rate between

domestic currency and

foreign currency

- Influence from small

competitors which is

small but many and

customer preferences

ST strategy

- Focus on

differentiation, create a

trend in distribution

Industry

- Implement their all

product, which called

Made-by-FGT

development

WT strategy

- Market research before

importing products

- Monitoring changes

in market

2. Strategic positioning techniques.

Base on FTG situation, Porters Generic Strategy are tools that help businesses set the

direction for the business strategy.

Porters Generic Strategy

Porters Generic strategy or we can call"generic strategies", because they can be applied to

products or services in all industries, and to organizations of all sizes and bring out good

result. As all thing below, we realize that FTG has many core competitive which can up grade

to competitive advantages while this strategy is for competitive advantages.

8/10/2019 BS1 - N_m

16/19

Cost leadership: FTG should care about being lowest cost producer in the industry as whole.The cost leadership strategy takes a look at how expenses can be minimized but still keep

quality of product or services. They can use Just-In-Time tool to do that which do not need

more storage in warehouses or good relationship with supplier is other factors to help them

success in this strategy.

Differentiation: Distribution information of technology takes large in FTG business, The

differentiation strategy of BMW is focused on making difference in services such as salers,

product warranty and so on. Product with their logo is not only the one that makes products

of the company different but also but also claim their brand. Futhermore, they should styding

information of technology market and customers characteristics to product moblie or

computer which bring FTG brand.

Focus: The focus strategy aims to a narrow segment such as with luxury product as Verture,

Apple or popular items with cheaper prices which suitable with students or workers.

Differentiation focus strategy helps FTG can focus on each segment to get effectiveexploitation.

8/10/2019 BS1 - N_m

17/19

FTGs generic strategy in the distribution of information of technology market lies on

product focus which is evrry suitable with retail market. Focus on each group helps FTG can

set up strategy easier to exploit this segment base on their characteristics. This allows FTG

become more flexciable and expand more their business. Cost leadership differentiation are

also good choice but FTG can apply them because they is distribution company and they are

more dependant on supplier than other industry o it is hard to apply it.

8/10/2019 BS1 - N_m

18/19

Conclusion

To more understand about FTGs successful. This report analyzes and conducts some

applying strategy methods such as considering to significance of stakeholder, factors of

internal and external environment and SWOT analysis to determine strength, weakness,

oppotunities or threats of the FTG. In addition , applying strategic plan for FTG in

developing, base on all thing was analysised above.

8/10/2019 BS1 - N_m

19/19

Reference

- Business strategy - Business essentials supporting HND/HNC foundation degrees-

2010

- S t r a t e g y : t h e S t r a t e g i c A u d i thttp://tutor2u.net/business/strategy/Strategic_audit.htm

- S t r a t e g y : R e s o u r c e s o f a b u s i n e s shttp://tutor2u.net/business/strategy/resources.htm

- http://fpt.com.vn/vn/

- http://ftg.com.vn/

http://tutor2u.net/business/strategy/Strategic_audit.htmhttp://tutor2u.net/business/strategy/resources.htmhttp://fpt.com.vn/vn/http://fpt.com.vn/vn/http://ftg.com.vn/http://ftg.com.vn/http://ftg.com.vn/http://fpt.com.vn/vn/http://tutor2u.net/business/strategy/resources.htmhttp://tutor2u.net/business/strategy/Strategic_audit.htm