THESIS ABSTRACT FOREWORD In conditions of development of the market economy, the competition issues in the domestic and international becoming strong and stiff, the requirements to improve the competitiveness of the tea enterprises are very essential. In Thai Nguyen, there are a lot of enterprises involved in the production, processing and consumption of black tea. Therefore, the quality and price of the product are different. Along with the trade liberalization on domestic and international markets, Thai Nguyen’s black tea products are also widely consumed, have significant contribution to the development of the tea industry. However, the black tea products also face many difficulties and challenges of competition in the production, processing and consumption… the competitiveness of the enterprises is weak in the categories, designs, markets, and promotion activities. Therefore, the evaluation of competitiveness and solutions proposal for black tea enterprises are very necessary. Because of the above reasons, I chose the thesis: “Improving the competitiveness of the black tea producing enterprises in Thai Nguyen province”. The thesis consists of 5 chapters: CHAPTER I THE PROBLEM AND ITS SETTING 1.1. Overview of research The thesis gave the system of the criteria reflecting the competitiveness of black tea producing enterprises in Thai Nguyen. From the system of those criteria, the author uses it to evaluate the competitiveness of tea producing enterprises in Thai Nguyen as a typical study case. The results of this study will evaluate the competitiveness of black tea producing enterprises in Thai Nguyen. Then, the managers can apply and take measures to improve the competitiveness of enterprises. 1.2. Statement of the problem The thesis aims to improve the competitiveness of the black tea producing enterprises according to the observations of enterprises and customers. It answers to the following questions: - The position of the black tea producing enterprises in Thai Nguyen province in the markets today? - Competitive advantages of black tea products as observed by the enterprises? - Competitive advantages of the black tea producing enterprises in Thai Nguyen province as observed by customers? - Are there significant differences between the observation of enterprises and customers about the competitive advantage? - What’re the factors affecting the implementation of competitive advantage? - The solutions can be introduced to improve the competitiveness of the black tea producing enterprises in Thai Nguyen province to meet consumer demand? 1.3. Significance of the study This study will help small and medium tea enterprises in Thai Nguyen assess aspects of competition to determine the strengths and weaknesses to enhance their competitiveness. Furthermore, this study will help tea enterprises improve their competitiveness such as: market expansion, brand building and maximizing profits. - For tea industry: This study will help the tea industry to develop its products, from increasing the area to the production and consumption, thereby increasing the state budget, creating more jobs for local people and sustainable development. - For labor: This study will help the labor to increase their income, have stable life and many jobs. - For customers: This study will help the customers gain access the products conveniently and satisfy the demand. - For the researcher: This study will help to complete the DBA thesis, In addition, there is a document for the teaching of the author. - For community: When enterprises do business effectively, they will contribute to the state budget and social welfare. - The thesis assessed the current situation of black tea products in small and medium enterprises, determine its position in the export market. Determine how to have efficiency in competition of the black tea products in small and medium enterprises. Introduce a new competitive method for tea enterprises to improve their competitive advantages in the market. 1.4. Scope and limitations of the study * Time: From 2010 to 2012 * Space: Gather information about the black tea producing enterprises in Thai Nguyen Province and some black tea producing enterprises in the two provinces of Phu Tho and Tuyen Quang. * Content: Study the basics: - Focusing on a number of issues about the competitiveness of black tea producing enterprises - The study analyzes the situation of the competitiveness of black tea producing enterprises in Thai Nguyen province. - Propose the solutions to improve the competitiveness for black tea producing enterprises. CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES 2.1. Concepts From the theories and concepts competitiveness of products, competitiveness of enterprises, national competitiveness, and the thesis has taken the concept of competitiveness of enterprises as follows: “Competitiveness of enterprises is the ability to maintain and improve competitive advantage in consuming products, expanding sales network; attract and use effectively the production factors in order to achieve high and sustainable economic benefits”. 2.2. Related literature and studies The thesis presents the works related to the research topic. 2.3. Conceptual framework COMPE TITIVE NESS OF BLACK TEA PRODU CING ENTER PRISES IN THAI NGUY EN PROVI NCE Competitiveness of black tea products in the enterprises Efficiency of production and business The market share of black tea producing enterprises The productivity of the factors The capacity to attract financial resources The ability to link and cooperate among black tea producing enterprises Interest rate Economic Environment Political and legal Environment Natural - Cultural and Social Environment Scientific and Technological Envirriment Suppliers of raw materials The external factors The internal factors The organization of human resources Infrastructure resources Marketing capacity Financial Capability The capacity for research and development Substitute products CHAPTER III RESEARCH METHODOLOGY 3.1. Study area selection Thai Nguyen province has 17,661 hectares of tea, ranked second in the country with 39 tea producers, of which there are 7 black tea producing enterprises. To assess the competitiveness of black tea producing enterprises in Thai Nguyen Province, we surveyed 7 enterprises in Thai Nguyen Province. In addion, we conducted a survey of black tea producing enterprises in Phu Tho and Tuyen Quang provinces to compare. In Thai Nguyen province, the black tea producing enterprises meet a lot of difficulties in producing, processing and trading of tea products. Particularly, the competitiveness of the enterprises is weak, not to promote the advantages of tea products. The difficult problem now is to improve the competitiveness of black tea producing enterprises in Thai Nguyen province. 3.2. Approach methods To achieve the objectives given, the thesis used the approache system in the research. This means considering the competitiveness of enterprises not only use some single criterion but also use the system of criteria, referring to different aspects of the enterprise such as: position in the market and the appropriate response to the external impact of the business environment. Competitiveness of enterprises can be represented through the indicators reflecting the internal force of enterprise as: human resources, material and technical basis, financial capacity Methods of collecting information * Secondary information The secondary information was collected from sources such as: books, newspapers, magazines, websites, and the final reports and from the workshops of departments, economic institutions and research agencies, related scientific works. Thereby, carry ut the analysis and overview on the production, processing and consumption of black tea products and the competitiveness of black tea producing enterprises in Thai Nguyen province. * Primary information The primary information is conducted by means of surveying the black tea producing enterprises. There is a questionnaire ((Appendix 1). Details are as follows: Table 3.1: The number of sample divided by form of ownership Unit: Enterprise ON Form of ownership Sample Thai Nguyen Phu Tho Tuyen Quang Total 7 6 5 1 State-owned enterprise 2 1 - 2 Joint-Stock company 2 3 2 3 Limited Liability company 2 2 1 4 Private company 1 - 2 Source: results of enterprises survey Table 3.2: The number of sample divided by capital scale Unit: Enterprise ON Capital scale Sample Total 7 1 Enterprises have capital from 6 to 8 billion 2 2 Enterprises have capital from 2 to 6 billion 2 3 Enterprises have capital under 2 billion 3 Source: Survey results To assess the factors those are associated with black tea products as: tea quality, packaging, product categories We surveyed 100 customers in Thai Nguyen and Hanoi (Appendix 2) 3.3. Methods of data processing 3.4. Other methods 3.4.1. The descriptive statistical methods 3.4.2. Comparative method 3.4.3. Method of experts 3.4.4. Method of SWOT analysis CHPATER IV PRESENTATION ANALYSIS AND INTERPRETATION OF DATA 4.1. Status of competitiveness of black tea producing enterprises in Thai Nguyen province 4.1.1. Competitiveness of black tea products in Thai Nguyen’s tea enterprises a. The market share of black tea products Today, the black tea of Thai Nguyen went to many countries around the world. However, it is noteworthy that can customers realize Thai Nguyen’s tea or not? While the majority of enterprises export in the form of raw materials, especially Thai Nguyen’s black tea hasn’t had brand positioning. A number of enterprises said that, in 2009 purchasing power reduced in most markets, tea export situation met a lot of difficulties. Even the head enterprise in tea export is also difficult. The decline in market share is due to the influence of the world economy. According to the Department of Agriculture and Rural Development of Thai Nguyen, the market share of black tea of Thai Nguyen Province has improved but still limited. This reflects the competitiveness of the black tea product in Thai Nguyen is low. b. The quality of black tea products in Thai Nguyen Table 4.1. Customers’ reviews of black tea products’ quality of in Thai Nguyen’s tea enterprises Type of tea Thai Nguyen Very good Good Medium Bad The number of people Structure (%) The number of people Structure (%) The number of people Structure (%) The number of people Structur e (%) Type 1 100 100 - - - - - - Type 2 - - 90 90,0 10 10,0 - - Type 3 - - - - 75 75,0 25 25,0 Source: Customer Survey Results 2012 c. Product categories Table 4.3. Some product categories in the black tea producing enterprises Province Product categories Black tea tradition Black tea bag Herbal black tea Other black tea Thai Nguyen 6 2 1 - Tuyen Quang 3 - - - Phu Tho 7 4 - 1 Source: The survey of 2012 business The above table indicates that the product categories in the businesses of black tea in Thai Nguyen province is more diverse than other businesses in Tuyen Quang province, but it is not varied by the type of black tea products in businesses in Phu Tho Province. On product labels: Through investigation we found 80.3% of [...]... businesses do not have professional marketing team; this has made a big impact the consumption of the product 4.1.2 The efficiency of production and business of black tea producing enterprises in Thai Nguyen Bảng 4.11 Margin / revenue of black tea producing enterprises in Thai Nguyen compared to black tea producing enterprises in Phu Tho and Tuyen Quang according to the forms of ownership in 2012 Unit: Percentage . 4.1.2. The efficiency of production and business of black tea producing enterprises in Thai Nguyen Bảng 4.11. Margin / revenue of black tea producing enterprises in Thai Nguyen compared to black