CAPSTONE PROJECT REPORT A Study On Strategic Development of Hung Vuong University Hochiminh City For Period 2010 – 2020 Group 01:  Phan Thi Yen Ha  Le Quyet Tam  Nguyen Ngoc Thanh  Tran Van Tuan  Nguyen Thanh Tung  Nguyen Thi Bich Van  Ho Chi Minh City   Dang Thi Dieu Lien ACKNOWLEDGEMENTS First of all, we, Group 1, would like to thank Center for Education Technology and Career System - The National University of Hanoi, has created conditions for us to join the training program of Griggs University. The course really helped us a lot to increase knowledge in business management as well as reality business skills and practical experiences in the daily works. In addition, we also sincerely thank all the teachers, professors as well as responsible members of the program who are very enthusiastic support for us and the whole class to complete the training. With this our thesis, we would like to use the knowledge acquired through the course that have been applied to the actual situation in Hung Vuong Ho Chi Minh City University to raise the efficiency of strategic management. ASSURE This thesis is the study of our group really, is done on the basis of theoretical knowledge and research classic survey the real situation. The data and results of the thesis is true, given the strategy comes from practice and experience, have never been published in any form before the presentation and recognition. Once again, we also committed that this study were writen by ourself and we have all rights of it. Finally, I would affirm again the truthfulness of the promise. TABLE OF CONTENTS LIST OF ABBREVIATIONS.............................................................................. 5 LIST OF TABLES ............................................................................................... 5 LIST OF FIGURES ............................................................................................. 6 LIST OF APPENDIXES...................................................................................... 6 INTRODUCTION ................................................................................................ 7 1. Rationale of the study ............................................................................. 7 2. Objective of the study ............................................................................. 8 3. Method of the study ................................................................................ 8 4. Scope of the study ................................................................................... 8 5. Structure of the study ............................................................................. 9 6. Scientific and practical significance of the study ................................. 9 CHAPTER 1: LITERATURE REVIEW FOR STRATEGY AND UNIVERSITY DEVELOPMENT STRATEGY ............................................. 10 1.1. Concept and Role of business strategy ............................................... 10 1.1.1. Concept of Strategy and Business strategy ...................................... 10 1.1.2. Role of Business Strategy ................................................................. 11 1.2. Strategic planning process ................................................................... 11 1.2.1. Determination of vision, mission and goals of the industry, enterprise ...................................................................................................... 12 1.2.2. Environmental analysis.................................................................... 12 1.2.2.1 The External factors analysis ............................................... 13 1.2.2.2 Value chain analysis ............................................................ 14 1.2.2.3 The Internal factors analysis ................................................ 15 1.2.2.4 Competitive Profile Matrix (CPM) ...................................... 16 1.2.3. Strategic Analysis and Choice ......................................................... 17 1.2.3.1 Locate strategies by Micheal Porter's 5 generic strategy.... 16 1.2.3.2 Strategies in action by SWOT Matrix ................................. 17 1.2.3.3 Determine strategies by SPACE Matrix ............................. 18 1.2.4. Strategy Implementation .................................................................. 19 1.2.5. Solutions to business strategy implementation ................................ 19 1 1.3. Concept and features of private university ........................................ 19 1.4. Legal issues in connection with higher education .............................. 20 1.5. Role of competitive strategy for university ........................................ 20 CONCLUSION OF CHAPTER 1 .................................................................... 21 CHAPTER 2: INTRODUCTION TO OPERATION OF HUNG VUONG HCMC UNIVERSITY ....................................................................................... 22 2.1. Overview of Hung Vuong HCMC University .................................... 22 2.1.1. History and Development of Hung Vuong HCMC University ........ 22 2.1.2. Product features ............................................................................... 23 2.1.3. Functions and duties ........................................................................ 23 2.1.3.1. Functions of HVU ..................................................................... 23 2.1.3.2. Duties ........................................................................................ 24 2.1.4. Organization structure of HVU ....................................................... 25 2.1.5. Salary policy .................................................................................... 26 2.2. Activities of HVU .................................................................................. 27 2.2.1. Training ........................................................................................... 27 2.2.1.1. Training scale ........................................................................... 27 2.2.1.2. Training form, profession and result ........................................ 28 2.2.2. Scientific research and international cooperation of the university 30 2.2.3. Material and technical facilities of the university ........................... 31 2.2.4. Finance ............................................................................................ 33 CONCLUSION OF CHAPTER 2 ...................................................................... 33 CHAPTER 3: ANALYSIS OF HUNG VUONG HOCHIMINH CITY UNIVERSITY’S ACTIVITIES ....................................................................... 35 3.1. Determination of value chain .............................................................. 35 3.2 Analysis of external environment........................................................ 35 3.2.1. Analysis of macro environment ....................................................... 35 3.2.1.1 Political and Legal factors ................................................... 35 3.2.1.2 Economical factors .............................................................. 37 3.2.1.3 Cultural and Social factors................................................... 38 3.2.2. Analysis of micro environment ........................................................ 40 2 3.2.3 The External Factors Evaluation Matrix .......................................... 45 3.3. Analysis of internal environment .........................................................46 3.3.1. Personnel and organization ............................................................. 46 3.3.2. Financial resources ......................................................................... 47 3.3.3. Attractiveness of profession ............................................................. 48 3.3.4. Management capacity ...................................................................... 49 3.3.5. Marketing ......................................................................................... 50 3.3.6. Material facilities ............................................................................. 50 3.3.7 Tuition .............................................................................................. 51 3.3.8 The Internal Factors Evaluation Matrix (IFE) ................................. 53 3.4. Determination of Advantage competition .......................................... 54 3.5. Choice Strategy ......................................................................................60 3.5.1 Determine of generic strategy .............................................................. 60 3.5.2 The SWOT Matrix ............................................................................... 60 3.5.3 The SPACE Matrix .............................................................................. 63 CONCLUSION OF CHAPTER 3 .......................................................................65 CHAPTER 4: ESTABLISHMENT OF DEVELOPMENT STRATEGY OF HUNG VUONG HOCHIMINH CITY UNIVERSITY FOR THE PERIOD OF 2010-2020 ...................................................................................................... 66 4.1. Demand forecast ................................................................................... 66 4.1.1. Number of students .......................................................................... 66 4.1.2. Human resources ............................................................................. 66 4.1.3. Material facitlies .............................................................................. 67 4.1.4. Finance ............................................................................................ 67 4.1.5. Marketing ......................................................................................... 67 4.2. Development direction of HVU by 2020 ............................................. 67 4.2.1. Vision Statement for a year 2020 ..................................................... 67 4.2.2. Mission Statement ............................................................................ 68 4.2.3. Directional values and quality policy .............................................. 68 3 4.3. Demand of goals by 2020 ..................................................................... 69 4.3.1. Training ........................................................................................... 69 4.3.2. Research and international cooperation ......................................... 70 4.3.3. Human resources ............................................................................. 71 4.3.4. Material facilities ............................................................................. 71 4.3.5. Finance ............................................................................................ 72 4.3.6. Marketing ......................................................................................... 72 4.4. General development strategy ............................................................. 73 4.5. Solutions to strategic implementation ................................................ 74 4.5.1. Viewpoint of solution development .................................................. 74 4.5.2. Solutions to training......................................................................... 74 4.5.3. Solutions to research and international cooperation ...................... 75 4.5.4. Solutions to human resource development ...................................... 76 4.5.5. Solutions to the implementation of management procedure ........... 77 4.5.6. Solutions to material facilities investment ....................................... 77 4.5.7. Solutions to finance and assets increase ......................................... 79 4.5.8. Solutions to marketing and brand development .............................. 79 CONCLUSION TO CHAPTER 4 ....................................................................... 80 CONCLUSIONS ................................................................................................ 81 SUGGESTIONS ................................................................................................. 83 APPENDIXES REFERENCES 4 LIST OF ABBREVIATIONS EFE: External Factor Evaluation HVU: HungVuong HoChiMinh City University IFE: Internal Factor Evaluation CPM: Competitive Profile Matrix VCA: Value Chain Analysis SPACE: Strength Position and Action Evaluation SWOT: Strengths-Weeknesses-Opportunities-Threats HCMC: HoChiMinh City VLU: VanLang University LIST OF TABLES Table 1.1: The External Factors Evaluation Matrix (EFE) ........................... 14 Table 1.2: The Internal Factors Evaluation Matrix (IFE) .............................. 16 Table 1.3: The Competitive Profile Matrix (CPM) ....................................... 16 Table 1.4: The SWOT Matrix ........................................................................ 17 Table 2.1: Training majors and programs...................................................... 29 Table 2.2: Floor area and number of classrooms ........................................... 32 Table 2.3: Number of equipments and computers ......................................... 32 Table 2.4: HVU‟s Income Statement in 2008, 2009 ..................................... 33 Table 3.1: Analysis of external factors matrix of HVU (EFE) ...................... 45 Table 3.2: Analysis of internal factors matrix of HVU (IFE) ....................... 53 Table 3.3: HVU‟s Competitive Profile Matrix .............................................. 59 Table 3.4: HVU‟s SWOT Matrix .................................................................. 62 Table 4.1: Main strategies .............................................................................. 73 5 LIST OF FIGURES Figure 1.1: Planning Strategy Process ........................................................... 12 Figure 1.2: Environment analysis model ....................................................... 13 Figure 1.3: Porter‟s 5-forces Model of competition ...................................... 14 Figure 1.4: Value chain .................................................................................. 15 Figure 1.5: Michael Porter‟s 5-generic strategy ............................................ 17 Figure 1.6: SPACE matrix ............................................................................. 18 Figure 2.1: Organization diagram of Hung Vuong HCMC University ......... 25 Figure 2.2: Number and organization structure of HVU .............................. 25 Figure 2.3: Number and qualification of managers of HVU ......................... 26 Figure 2.4: Number and qualification of lecturers of HVU .......................... 26 Figure 2.5: Targets and real number of enrolment over years ....................... 28 Figure 2.6: Compare number of graduates with of enrolment over years ..... 28 Figure 3.1: Value chain of HVU.................................................................... 35 Figure 3.2: GDP growth rate of Vietnam over years ..................................... 37 Figure 3.3: Average income per capital of Vietnam over years .................... 37 Figure 3.4: Targets and number of applications over years .......................... 39 Figure 3.5: The HVU‟s 5-force competition ................................................. 40 Figure 3.6: The level of HVU‟s 5-force competition .................................... 45 Figure 3.7: Ratio of student/lecturer and student/full-time lecturer .............. 47 Figure 3.8: Level of tuition rise ..................................................................... 48 Figure 3.9: Percentage of drop-out students .................................................. 49 Figure 3.10: Target and Number of real enrolment of HVU ......................... 52 Figure 3.11: Target and Number of real enrolment of VLU ......................... 52 Figure 3.12: HVU‟s generic strategy ............................................................. 60 Figure 3.13: HVU‟s SPACE Matrix .............................................................. 65 LIST OF APPENDIXES Appendix 1: Number and structure of officers, employees and ................... 1a lecturers of HVU Appendix 2: Targets, number of application and admission ......................... 2a Appendix 3: Number of graduates over years ............................................... 3a Appendix 4: Number of lecturers over years ................................................. 4a Appendix 5: Number of managers of HVU over years ................................. 5a Appendix 6: Number of lecturers of VLU over years ................................... 6a Appendix 7: Targets, number of application and admission of VLU ........... 7a 6 INTRODUCTION 1. Rationale of the study In 1993, the policy of educational socialization of the Party and Government was released in order to create favorable conditions for domestic education and training to develop, promptly provide highly qualified and skilled human resources for the cause of national industrialization and modernization, by 2010 our country basically becomes an industrial country in the modern direction, at the same time, in order to meet reasonable demands and desires of most of the public for studying, improving qualification, upholding the most valuable tradition of Vietnam – studiousness. Responding to such policy, together with other private universities, colleges in Ho Chi Minh City and the whole country, Hung Vuong HCM University was established on the 14th August of 1995 with the norm of building and developing the “Scientific – Developed – Ethical” university. It can be said that, for over 15 years of construction and development, by now, in comparison with other private universities and colleges, Hung Vuong University has not developed appropriately with its position for several reasons. In the context of globalization and WTO integration, in the near future, many foreign universities will penetrate the education market of Vietnam, in addition to the competition of many domestic universities and colleges. Therefore, leaders of Hung Vuong HCMC University is aware that if there are no changes and development by building a development strategy towards customer demands and supply of high quality training services, it is sure that the university will not attract students. So, the university will not be able to self-control its operating expenditure, which leads to bankruptcy risk. From above real demand, we chose the topic: “A Study On Strategic Development of Hung Vuong University Hochiminh City For Period 2011 – 2020”, in order to suggest some solutions which can be applied by leaders of the university in the reality. 7 2. Objective of the study In current social context, in comparison with social demand, Hung Vuong HCMC University has potential and desires to further develop in terms of scale and quality. Establishment and strategic management require leaders of the university need to prepare both theoretically and practically in order to promote the university to higher position. Basis for strategic planning is to re-evaluate objectively the strengths, weaknesses as well as the capacity to respond to external factors of the university, then to determine goals as well as to choose short-term and long-term strategies. So, objective of the study is to analyze and evaluate comprehensively the real situation of Hung Vuong HCMC University in order to find strengths as well as weaknesses, opportunities as well as threats of the university. On that basis, we will establish Hung Vuong HCMC University development strategy from 2011 to 2020. 3. Method of the study  Descriptive and analytical statistic method: collect and evaluate internal and external information of the university in connection with operations of the university.  Forecast method: based on the past data, forecast the future demand.  Specialist method: interview leaders. 4. Scope of the study Scope of this study is to examine the real situation of operations of Hung Vuong HCMC University since 1995 and establish theoretical basis for business strategy of the university, focusing on analyzing basic factors affecting the establishment of business strategy. From that, we establish development strategies and solutions to development strategy implementation of Hung Vuong HCMC from 2011 to 2020. 8 5. Structure of the study The study consists of 4 chapters, in addition to the introduction, conclusion and recommendation. Chapter 1: Literature review of strategy and strategic development university Chapter 2: Introduction of HungVuong HCMC University Chapter 3: Analysis of HungVuong HCMC University‟s activities Chapter 4: Establishment of HungVuong HCMC University development strategy from 2011 to 2020. 6. Scientific and practical significance of the study  Scientific significance: In the market economy, business strategy is decisive to the success and failure of an enterprise, business strategy plays an important role for all enterprises, not only a particular one. Any enterprise desiring to exist and develop must firstly have a good and effective business strategy. There are many approaches to establish a business strategy for an enterprise. Research topic has a scientific significance of generalizing existing theories from different sources to establish a business strategy development procedure for Hung Vuong HCMC University in a basic, easy to understand and use way.  Practical significance: Real situation of Hung Vuong HCMC University is also general situation of all private universities in Vietnam at present. Therefore, this study can also be applied for other private universities having the same features. 9 CHAPTER 1 LITERATURE REVIEW FOR STRATEGY AND STRATEGIC DEVELOPMENT UNIVERSITY 1.1. Concept and Role of business strategy 1.1.1. Concept of Strategy and Business strategy According to Harvard business handbook, strategy is a military term originated from Greece and used to refer to the plan of disposing the troops in battle formation and allocating force in order to achieve goals in the war. Nowadays, the term strategy is used in many economic fields and understood as “means to achieve long-term goals” Business strategy is associated to economic field and interpreted in various ways. Some popular definitions of business strategy are: - According to Fred R. David, strategy is means to achieve long-term goals. - According to Alfred Chandler, strategy is to determine basic and longterm goals and set up a process of action and distribution of necessary resources to implement such goals. - According to Michael E.Porter, strategy is the creation valuable and unique position, including different activities, the choice, the exchange in competition, the creation of appropriateness in all activities of the company. So, business strategy is a combination of goals and policies as well as major plans to achieve such goals. It clearly shows what business activities the company has been implementing or what business field the company will be focus on. In general, definitions of business strategy, despite of basis differences, include following contents:  Set up short-term and long-term goals of the organization;  Propose and select solutions to achieve such goals;  Develop and allocate resources to implement the goals. 10 1.1.2. Role of Business Strategy Nowadays, enterprises in particular and organizations in general pay special attention to developing strategy. Strategy plays key role in directing and developing development plan of an organization. Main effects of the strategy in an organization are recognized as follows: - Help enterprises to find clearly their purposes and directions. It forces managers to review and determine which direction to follow and when to reach to certain position. - Force managers to analyze and anticipate conditions in near future as well as for future environment. - Enterprises shall attach set up decisions to business environment conditions. - Help managers to use existing resources of enterprises effectively and allocate them reasonably. - Help managers to combine functions in organizations in the best way on the basis of achieving general goals of organizations. “Without a strategy, an organization is like a ship without a rudder, going around in circles. It’s like a tramp; it has no place to go.” - Joel Ross and Michael Kami [10, pp 34] 1.2. Strategic planning process Strategic planning process includes following stages: - Strategic model study and choice; - Strategic development; - Strategic implementation; - Strategic evaluation. In this assignment, we only focus on the stage of studying, choosing and developing strategy. 11 Figure 1.1: Strategic Formulation Process Developing a Mission, a Vision, Goals Identifying External Factors Choosing a particular strategy Determining Internal Factors Solutions to Strategic Implementation Source: Adapted from Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 37 1.2.1. Determination of vision, mission and goals of the industry, enterprise “A business is not defined by its name, statutes, or articles of incorporation. It is defined by the business mission. Only a clear definition of the mission and purpose of the organization makes possible clear and realistic business objectives” - Peter Ducker [10, pp 80] Goal is a concept used to refer to specific business outcome which an enterprise wishes to achieve. Short-term goal means specific and detailed outcomes in 1 year. They are separate outcomes arising in the next decision cycle of an enterprise. Medium-term goal: means results to be achieved in 3 years. Long-term goal means goals showing desirable outcomes for a period of at least 1 year. Long-term goal is normally set up for following issues: Profitability, productivity, competitive position, personnel development, personnel relation, technical direction, social responsibility. 1.2.2. Environmental analysis Environment of an organization includes factors, forces, institutions, etc. inside and outside the organization, affecting operations and operational outcomes of the organization. 12 Environment of an organization includes internal and external environment. Figure 1.2: Environment analysis model Source: Adapted from Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 104, 106, 136 1.2.2.1 The external environment analysis External environment of an organization is determined by 5 main factors: (1) economic factor, (2) cultural – social – natural – environmental factor, (3) political – legal – policy factor, (4) technical and technological factor and (5) competitor factor. External factors are divided into two levels: - Macro environment includes factors from macro management level affecting all business industries but not necessarily in a certain way. Analysis of macro environment helps an enterprise realize what it is facing. - Micro environment (or specific environment) is determined for some particular industries; all enterprises of the industry are affected by micro environment of such industry. Micro environment includes all factors in the industry and external factors for the enterprises, deciding the quality and level of competition in such trading and manufacturing industry. “The opportunities and threats existing in any situation always exceed the recourses needed to exploit the opportunities or avoid the threats. Thus, strategy is essentially a problem of allocating recourses. If strategy is to be successful, it 13 must allocate superior resources against a decisive opportunity.” - William Cohen [10, pp 102] With the 5-forces model of competition of Michael Porter, external environment of an enterprise shall be analyzed in terms of such factors as Customer, Supplier, Current Competitor, Potential Competitor, Substitute product. Figure 1.3: Porter’s Five-Forces Model of Competition Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 118 Based on above analysis, we make the matrix of external factor evaluation (EFE) in order to determine the capacity to respond to environment of the enterprise. Table 1.1: External Factor Evaluation (EFE) Key factors Weight Rating Weighted Score List the =0 (not important) =1 (response is poor) factors for =1 (all-important) =2 (response is average) evaluation =(Weight)* (Rating) =3 (response is above average) Total Weight = 1 =4 (response is superior) Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 126 14 1.2.2.2 Value chain analysis The value chain is a systematic approach to examining the development of competitive advantage. It was created by Michael E. Porter in his book, Competitive Advantage (1985). The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organization. The 'margin' depicted in the diagram is the same as added value. The organization is split into 'primary activities' and 'support activities.' Figure 1.4: Value chain Source: Michael E. Porter, Competitive Advantage, New York, Free Press, 1985 1.2.2.3 The internal environment analysis Analysis of internal environment is to analyze all factors and internal system of an enterprise in order to determine strengths and weaknesses of an organization, on that basis propose measures to limit weaknesses and uphold strengths to achieve maximum advantage. Main internal factors include such functional fields as: human resources, research and development, production, accounting and finance, marketing and general organization order and discipline. 15 Based on above analysis, we make an internal factor evaluation matrix. Table 1.2: Internal Factor Evaluation (IFE) Key factors Weight Rating Weighted Score List the =0 (not important) =1 (major weakness) =(Weight)* internal =1 (all-important) =2 (minor weakness) (Rating) factors for =3 (minor strength) evaluation Total Weight = 1 =4 (major strength) Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 168 1.2.2.4 Competitive profile matrix (CPM) Competitive profile matrix (CPM) identifies a firm‟s major competitors and its particular strength and weaknesses in relations to a sample firm‟s strategic position. The weight and total weighted scores in both a CPM and an EFE matrix have the same meaning. However, critical success factors in the CPM include both external and internal issues; therefore, the rating refers to the strength and weaknesses. There are some important differences between EFE and CPM. First of all, the critical success factors in CPM are broader, they do not include specific and factual data, and they even may focus internal issues. The critical success factors in CPM are not grouped into opportunities and threats as they are in an EFE matrix. Table 1.3: Competitive profile matrix (CPM) Critical Weight success Company 1 Rating Company 2 Score Rating Score Company 3 Rating Score factors List the The same The same The same internal and EFE EFE EFE external matrix matrix matrix factors Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 127 16 1.2.3. Strategy Analysis and Choice Strategy is defined as the match an organization make between its internal sources and skills and the opportunities and threats created by its external factors. The matching stage of the strategy-formulation framework consists of 5 techniques that can be used at any sequence: the SWOT matrix, the SPACE matrix, the BCG matrix, the IE matrix and the Grand Strategy matrix. 1.2.3.1 Locate strategies by Michael Porter’s 5 generic strategies Michael Porter‟s 5 generic strategies allow organizations to gain competitive advantages based three different bases: cost leadership, differentiation and focus. Figure 1.5 : Michael Porter’s 5 generic strategies Source: Adapted from Michael E.Porter, Competitive strategy: Techniques analyzing Industries and Competitors (New York: Free Press, 1980: 35-40) Type 1: Cost Leadership – Low Cost Type 2: Cost Leadership – Best value Type 3: Differentiation Type 4: Focus – Low Cost Type 5: Focus – Best value 1.2.3.2 Strategies in action by SWOT Matrix Strengths-Weaknesses Opportunities-Threats Matrix is an important matching tool that helps the managers develop 4 types of strategies: strengthopportunities (SO) strategies, weakness-opportunities (WO) strategies, strengththreats (ST) strategies, weakness-threats (WT) strategies. 17 Table 1.4: SWOT Matrix Key Internal Factor OPPORTUNITIES THREATS List opportunities List threats STRENGTH S-O Strategies S-T Strategies List strengths Use strengths to take advantage Use strengths to avoid threats Key External Factor of opportunities WEAKNESS W-O Strategies W-T Strategies List weaknesses Overcome weaknesses by taking Minimize weaknesses and advantage of opportunities avoid threats Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 225 1.2.3.2 Determine strategy by SPACE Matrix The Strategic Position and Action Evaluation matrix (SPACE matrix) represents 2 internal dimensions (financial strength and competitive advantages) and 2 external dimensions (environmental stability and industry strength). These 4 factors are the most important determinants of an organizational overall strategic position. Figure 1.6: SPACE Matrix -4 IS Defensive - Retrenchment - Divestiture - Liquidation -3 -2 Aggressive - Backward, forward, horizontal integration - Market penetration - Market development - Product development - Related diversification - FS Conservative - Market penetration - Market development - Product development - Related diversification 6 5 4 3 2 1 -1 1 2 3 4 CA -1 -2 -3 -4 -5 -6 ES Competitive - Backward, forward, horizontal integration - Market penetration - Market development - Product development Source: H. Rowe, R.WMason and K.Dickel, Strategic Management and Business Policy: A Methodological Approach (Reading, Massachusetts: Addison – Wesley Publishing Co. Inc, 1982) 155 18 FS: Financial Strengths ES: Enviroment Stability CA: Competitive Advantage IS: Industry Strengh 1.2.4. Strategy Implementation Based on goals of the enterprise, internal and external situation of the enterprise, develop business strategy. Business strategy includes following basis contents: - Identify and choose opportunity to help the enterprise to achieve its business goal. - Choose target market of the enterprise, which helps the enterprise take best advantage of opportunity. - Choose type of services and products supplied for the target market. - Develop marketing strategy for the chosen market and strategy. 1.2.5. Solutions to business strategy implementation They are solutions in terms of human resources, financial sources, business management organization, production management, etc. in order to implement set up business strategies. In other words, it is the arrangement and allocation of resources of the enterprise to successfully implement chosen business strategies, for example: - Suitable arrangement of enterprise organization structure - Allocation of financial sources - Establishment of a scientific and effective management model 1.3. Concept and features of private university According to Regulation on private university issued by Prime Minister under Decision No. 86/2000/QĐ-TTg dated18/7/2000, private university is defined as “Higher education agency established by social organizations, social – vocational organizations, economic organizations (hereafter referred to as organizations) which mobilize teachers, investors to contribute their effort, money and material from sources beyond the State budget.” (Article 1) 19 According to this Regulation, private university has following main features: - Have the same legal position as public universities in national education system; (according to Article 2) - Subject to public administration in education of Ministry of Education and Training; subject to administration management in territory of Provincial People’s Committee, Cities directly under the Central Government (hereafter referred to as Provincial People’s Committee) where the university is located; (according to Article 4) - Self-control and self-responsible for the master plan, development plan of the university, organizing training, scientific and technological activities, finance, international relation, organization and civil (according to Article 7) - Charter capital is determined including charter in cash (Vietnam dong or free convertible foreign currency), gold or assets and no less than 15 billion VND (according to Article 11) 1.4. Legal issues in connection with higher education - Regulation on private university stipulating feature, form, organization structure, establishment conditions, operation mechanism of the private university; - A set of 10 standards, 53 criteria for quality assessment stipulating standards for staff, material facilities, learners, from that recognize the university to meet national standards of not, at what level; - Hung Vuong HCMC University regulation stipulating organization structure, management, operation, individual responsibility of HVU. 1.5. Role of competitive strategy for university Pursuant Regulation on private universities, private universities can “selfcontrol and take responsibility for the master plan, development plan of the university, organizing training, scientific and technological activities, finance, international relation, organization and personnel.”. Therefore, strategic role and strategic management in general is very importance, since it: - Help the university to find its direction in the future to review and decide which direction and when to achieve a certain goal. 20 - Help the university to see opportunity and threat in its operation at present and in the future, to analyze, evaluate and anticipate environmental conditions in the future, to take advantage of opportunities, to reduce threats and to overcome the competition to achieve success. - Strategic management process helps the university make suitable decision to cope with each environment, to improve operational efficiency and to develop the university. CONCLUSION OF CHAPTER 1 Strategic role and strategic management in general are very important, developing strategy also takes time and effort; however, the university shall be compensated with more interests. It is also mistaken to develop strategy hastenly, rigidly with turnover targets to be achieved. For education sector, strategy and strategic management help schools, especially universities and colleges to optimally meet demands of human resources for the society, to improve level, training capacity in the most difficult conditions as well as to guarantee the living standard of officers, lecturers and employees. In short-term, a good strategy shall help university and college do well in training human resources for the society in order to best implement the goals in education and training sector in the most difficult conditions in terms of funds as well as help university to feel secure in self-controlling, making decision and taking responsibility in this transitional period. 21 CHAPTER 2 INTRODUCTION TO OPERATION OF HUNG VUONG HOCHIMINH CITY UNIVERSITY 2.1. Overview of Hung Vuong HCMC University University name: HUNG VUONG HO CHI MINH CITY UNIVERSITY Date of establishment: 14th August 1995 Traditional date: 9th March (Lunar) Sector: Education and Training Training levels: University – College – Professional School Personnel: 150 officers - employees (excluding part-time lecturers) Number of students: 10,081 Head office: 342bis Nguyen Trong Tuyen, Ward 2, Tan Binh District, HoChiMinh City Website: www.hungvuong.edu.vn 2.1.1. History and Development of Hung Vuong HCMC University Implementing the policy of education socialization, diversification of training forms of the Party and Government under the Resolution of the 7th Party Central Committee on 14/01/1993, some intellectuals led by the late Profession, Medical master Ngo Gia Hy established a private university in Ho Chi Minh City. On the 24th of May 1993, Prime Minister Vo Van Kiet signed the Decision No. 240/TTg promulgating regulations on private university. However, through review, survey, social opinion investigation, it is found that opening “private” universities in our country is still new, so on 02/01/1994 Ministry of Education and Training promulgated the temporary Regulation No. 196/TCCB on private university signed by Minister of Education and Training Professor Tran Hong Quan. Due to such adjustment, some intellectuals proposed to establish Hung Vuong private university and Ministry of Education and Training made decision on approval No. 2395/QD-TCCB dated 03/11/1993. 22 In the early days since its establishment, the university was named Hung Vuong private university. Under the Decision No. 122/2006/QD – TTg of Prime Minister permitting some universities to convert to private universities, including Hung Vuong private university. Since 12/6/2008 the university was renamed Hung Vuong University (abbreviated as HVU). 2.1.2. Product features Products of HVU are determined to provide training services, including: - Training bachelors, engineers at university level with the training period of 4 years, regular training, vocational training, connection training programs; - Training bachelors, engineers at university level of the second major with the training period of 2.5 years for the second training program; - Training college bachelors with the training period of 3 years for regular training, connection training programs; - Vocational training for pupils finishing high schools with the training period of 2.5 years for regular training program; - Providing short-term vocational training courses supplementing for those of at least professional level; - Providing skill training services such as English, Computing. 2.1.3. Functions and duties 2.1.3.1. Functions of HVU - Training personnel to have good political quality, ethics, knowledge and professional practice skills corresponding to training level, to have health and capacity suitable for working in the society, creating employment for themselves and others, to have capacity of equal cooperation in international relation, to meet demand for national construction and protection. - Carrying out scientific research and technological development, combining training and scientific research and production, scientific services and technology as stipulated by Laws on Science and Technology, Education Law and other regulations of laws. 23 2.1.3.2. Duties  To students: - Teaching basic knowledge and professional knowledge selected by students based on their capacity and expectation; - Creating environment for student to develop comprehensively in terms of ethics, intelligence, ability and arts; - Creating conditions for developing knowledge and training students to be able to analyze problems to find solutions; - Helping students uphold community spirit; dynamics and creativeness, combining study and professional practice, school and society, world.  To officers – lecturers – employees: - Training experts of high scientific level to meet social demand, at the same time, maintain the humanity of the profession and uphold the quintessence of Vietnam‟s culture. - Encouraging and creating conditions for members to carry out scientific research and to apply scientific achievements in teaching, studying contents and social reality. On this basis, extending domestic as well as international cooperation; - Implementing policies, regulations for members uncontradict with regulations of the Government; Paying attention to improving professional level as well as material and spiritual life of members. 24 2.1.4. Organization structure of HVU Figure 2.1 Organization diagram of HVU PARTY COMMITTEE BOARD OF MANAGEMENT Party cells Trade union Ho Chi Minh Youth Union Student association RECTOR Vice Rectors MANAGEMENT DIVISION (Offices, Divisions) - Administrative - Equipment Management - Training Bureau - Student Affairs - Finance - Organization, Personnel and Legal - TCCN & DN Board - Science and Training Council - Other member councils - Assessment – Inspection – Conclusion council TRAINING DIVISIONS (Faculties, Departments) - Information Technology - Business Administration - Tourism - Foreign Language - Hospital Management - Post-harvest Technology - Accounting – Auditing - Finance – Banking - Construction Engineering Technology - Politics - Foreign Language Center - Resource Training Center SERVICE DIVISION (Services, student support…) - Library - Traditional medical association - Sai Gon telecommunication technology institute - Management quality institute - Student support center - ISO management board - Information network management team Note: Leadership function line Coordination function line Figure 2.2: Number and organization structure of HVU 1. Managers 25 Figure 2.3: Number and qualification of Figure 2.4: Managers and Lecturers of HVU Number and qualification of Lecturers of HVU (See Appendix 1, 2) 2.1.5. Salary policy  For officers, managers Income = Basic salary + Allowance – Teaching pay (if any) - Basic salary: is paid according to qualification, senior - Allowance: includes responsibility coefficient, teaching salary According to data of Accounting Division in September 2010, average income of Manager is 10 million VND, of Vice Dean is 7.5 million VND, and of senior specialist of at least 5 years is 5.5 million dong.  For lecturers Teaching salary = Teaching pay + Marking pay Teaching pay = number of periods * pay rate * crowded class rate Marking pay = number of exams * norm According to data of Accounting Division in September 2010, average income of Dean is 11.5 million VND, of Vice Dean is 9 million VND, and of lecturer is 6 million VND. In addition, the University also has other expenses: - Expenses for holidays. - Expenses for founders, officers, lecturers, employees of the university - Expenses for collaborators. - Expenses for political, union activities. 26 In general, salary as well as income of officers, lecturers, employees of HVU is still low in comparison with average income of the society and not as high as that of other universities, so it is not attractive enough to attract and keep talented people. Therefore, officers, lecturers and employees of HVU are lack in comparison with demand. 2.2. Activities of HVU 2.2.1. Training 2.2.1.1. Training scale Enrolment target is assigned by Ministry of Education & Training every year to the university, depending on the operational capacity, material facilities of full-time lecturers of the university. For the first 10 years, since its establishment, from 1995 to 2006, due to unreasonable investment in material facilities, limited number of lecturers, annual enrolment target ranges between 1,000 and 1,500 students. Since 2007, the university has invested remarkably, since the academic year 2007-2008, especially 2008-2009, 2009-2010, university, college target of the university has increased to 2,500, of professional school has increased to 2,500, number of applicants has increased significantly. Student scale of the university ranges between 3,000 and 4,000 students in one year. College level is also extended from the academic year 1997-1998. For 3 years, 140 college bachelors major in Information Technology and Tourism have been trained. At present, college level is being extended and connection to university level will be implemented. Second certificate training is also implemented at some Faculties excluded from the assigned enrolment target. In general, enrolment target of the university has gradually increased over 14 years of operation. Real enrolment decreased in 1998-1999 and 2004-2005 (see Appendix 3) 27 Figure 2.5: Target and real number of enrolment over years TARGET REAL ENROLMENT In addition, the university should face and find measures to repair some weaknesses including the rate of drop, absence from school of about 40% which affects greatly to the funds of the university. Causes of this problem include: - Students subject to drop out of university as stipulated by Ministry due to poor study results; - Students dropping out of university halfway; - Students re-applying into other universities, changing their majors. Figure 2.6: Compare number of graduates with number of enrolment over years ENROLMENT GRADUTES 2.2.1.2. Training form, profession and result Training forms of the university are mainly regular programs. At present, Ministry of Education and Training has assigned in-service training target for the university. Some majors have short-term training courses upon the social request. 28 Training majors: in the early days since its establishment, there were 04 majors: Business Administration, Applied Mathematics, Information Technology, English; in 1996 more majors were added: Hospital Administration, Tourism, Japanese; in 2003 Post-harvest Technology major was opened. At present, the university has 10 faculties namely Politics Department; Information Technology Department; Business Administration with such sub-majors as: foreign trade, marketing, production operation management; Hospital Management; Tourism; Post-harvest Technology; Foreign Language with such sub-majors as: English, French, Chinese, Japanese; in 2007 Finance and Banking Department was established; in 2008 Construction Engineering Technology Department was established; in 2009 Accounting – Auditing Department was established. However, number of training majors is low, training contents and methods are limited, material facilities and equipment for teaching are still poor, there are no laboratory for students, no sites for practicum, sightseeing meeting training requirements. Table 2.1: Majors and Training levels of HVU MAJOR Business Regular Regular Vocational university college x x x Second Connec Professio- certificate -tion nal school x x Administration Hospital x x Management Information x x x x x x x x x x x x x x Technology Post-harvest Technology Finance and Banking Accounting Auditing 29 x Tourism x Construction x x x x x x Engineering Technology English x x x Japanese x x x Chinese x x x French x x x x Web design X and management Travel x practice Banking x practice Source: Statistics of Training Bureau in September 2009 In general, training affairs of the university has good achievements. Rate of students finding jobs after graduation has gradually increased and highly appreciated by users. Survey results of employment of graduated students from 2001 to 2004 are as follows:  54% of students find jobs right after graduation.  96.2% of students find jobs 1 year after graduation.  96.8% of students find jobs by the time of the survey 2.2.2. Scientific research and international cooperation of the university 2.2.2.1 Scientific research For the past 14 years, scientific research has significantly contributed to the improvement of training quality and the creation of external connection. In 1997, there were 14 researches have been published, in 1998 there were 07 researches, in 1999 - 11, in 2001 - 13 and in 2008 - 26 at university. Scientific education internal journal of the university has been published for 11 years. However, this activity is still small, tattered, there are no works at ministry, 30 national level. Number of officers, students carrying out scientific researches is limited, quality is not high. This operation needs to be promoted in the future. 2.2.2.2 International cooperation HVU is studying to establish cooperative relations with many Canadian universities such as Moncton University, Quebec Montreal University, Sorbonne University, Belgian universities such as Louvain University, Belgium Freedom University, Public Health School of Louvain Medical University. By now, the university has signed memorandum only, no specific agreements due to various reasons. International cooperation has a very important meaning in the current trend of globalization, so in the next strategy, the university is required to promote this activity more strongly. 2.2.3. Material and technical facilities of the university By now, operating agencies of the university are all rented, including: - Agency at 736 Nguyen Trai, district 5; - Agency at 239 Nguyen Trong Tuyen, Phu Nhuan district; - Agency at 146 Vo Thi Sau, district 3; - 342Bis Nguyen Trong Tuyen, Tan Binh district; - 59 Che Lan Vien, Tan Phu district. Since HVU has not had its own agency so it has not equipped modern technical equipment to serve teaching and studying, scientific research, except computer rooms for Information Technology Department. Ho Chi Minh City People‟s Committee has decided to permit the university to use an area of 25.5 ha in Tan Kien commune, Binh Chanh district to build a new agency. This is an important premise for HVU to basically settle its material facilities for HVU development strategy in the future. 31 Table 2.2: Floor area and number of classrooms No. MATERIAL FACILITIES TOTAL AREA (ha) 1 Land area 28.194 ha 2 Construction area (24,305m2) Remarks Total land area of 28,194ha, of which Number of Number classroom of m2 26, 205 ha is a Classroom, lecture hall 76 9,685 planned by Ho Chi b Laboratory 4 320 Minh City People‟s c Classroom for foreign language, 10 840 Committee for building a university music, arts, sports d Computer room 9 740 in Tan Kien e Library 3 460 commune, Binh f Public 41 2,568 work medical area center, (canteen, Chinh district; the rest is rented land offices, with the period of departments) use of 6 to 20 years. g Dormitory 16 400 Rented in Go Vap district for 100 Laos students Total 159 15,013 Source: Statistics of Equipment Management Bureau in November 2009 Table 2.3: Number of equipments and computers No. COMPUTING CAPACITY Quantity Remarks 1 Total number of computers 581 Of 450 computers used for a For training 450 training, 62 computers are b For management 131 installed in lecture halls, 2 Number of computers connected to 519 classrooms Internet connection); 388 computers Internet 3 (no Number of computers having email 131 are installed in 9 computer portal according to email address of rooms and 131 computers the university used for management are connected to Internet. Source: Statistics of Equipment Management Bureau in November 2009 32 At present, the university has a basic advantage that it has invited Saigon Invest Group to be the main investor holding more than half of shares to invest in the university with the policy of no self-interest as proposed by founders of the university and it has coordinated with the university to established University Development Investment Joint Stock Company. City Committee of the Party Office is doing the procedure of leasing the land at 736 Nguyen Trai for 20 years to build the head office of the university. 2.2.4. Finance Table 2.4: Income Statement of HVU in 2008, 2009 Ratio 2008 2009 Amount Net revenue 30,998,183,300 42,480,743,031 11,482,559,731 Gross revenue 12,200,000,840 12,740,502,965 540,502,125 EBIT 3,190,773,135 -629,296,171 -3,820,069,306 Net earnings 2,871,695,821 -629,296,171 -3,500,991,992 Margin profit 10,29% -1.48% -11.77% ROA 12,1% -1.78% -13.88% ROE 13.54% -2.41% -15.55% Total Assets 23,730,726,144 35,322,590,120 11,591,863,976 Total Debt 166,093,212 9,292,301,525 9,126,208,313 Source: Accounting Bureau on 31 December 2009 According to above turnover table, it can be seen that turnover in 2009 increased by 37% in comparison with in 2008, equivalent to the target which HVU is permitted to increase in 2009. However, in 2009 profit of HVU decreased to negative figure. Reason for this loss is that HVU invested in equipment, purchased management procedure, increased salary in order to improve operational capacity, to prepare for the following years. CONCLUSION OF CHAPTER 2 HVU is a university with its main product is to provide training service. At present, this is a suitable product of high demand. In order to improve 33 competitive capacity, HVU is necessary to establish a development strategy, including short-term and long-term goals. In recent years, demand for higher education of the citizens has increased remarkably, including for localities paid little attention to study before such as Southwestern provinces. This is the most advantageous factor for Vietnamese universities in general and HVU in particular. Regarding operation capacity, including staff, program, management mechanism, income policy, etc., HVU is potential and has achieved remarkable success. In order to improve competitive capacity, HVU needs to have suitable strategy to improve its operational capacity in order to increase income, to create its position in the society. 34 CHAPTER 3 ANALYSIS OF HUNG VUONG HOCHIMINH CITY UNIVERSITY’S ACTIVITIES 3.1. Determination of value chain SUPPORT ACTIVITIES Figure 3.1: Value Chain of HVU Focus on enhancing facilities, building new locations and purchasing educational equipments.  Manage recruitment and selection a good staff  Training and development the staff  Policies to allure talent people, encourage study and research, improve income.  Information system is relatively completed with internet connection 100%  Apply ISO in management, constantly improve procedures  Gain right of use system ISO 9000 and EFQM of European universities.  Training program is regularly updated to meet demand of society Inbound Logistics Attract students with high-mark in university examination Operations - Education program is updated - Excellent lecturers Outbound Logistics Marketing Services - introduction to freshgraduates - Support to seek jobs for student - Video clip, exhibition - Hold event. - Hold contest for students - Take care of students - Help students in study and life - Scholarship - Recommend part-time work PRIMARY ACTIVITIES Source: Michael E. Porter, Competitive Advantage, New York, Free Press, 1985 3.2 Analysis of external environment 3.2.1 Analysis of macro environment 3.2.1.1 Political and Legal factors Constitution of the Government states: “Education is national policy”. It confirms the role of education in general development of the country. Clearly aware of the significance of education, the Government continues to implement the policy of educational socialization. State budget invested in education and training has increased from 15% in 2000 to 18% in 2005 with the mechanism of 35 increasing expenditure for key tasks of the sector such as renovation of program, training of teachers, and improvement of mountainous education. ODA projects in education and training mainly for basic education, education and training sector reached and exceeded basis targets which Education development strategy set up for 2005. Schools in Vietnam have been making effort to meet national standards in terms of infrastructure to guarantee high quality teaching and studying equivalent to other countries in the region. However, these preferential policies only focus on public universities, but private universities. Besides, approval and issue of targets for each university like present of Ministry of Education and Training causes many obstacles for operation and self-control of universities, hinders universities from improving operational quality. It is due to restricted enrolment target which limits income of the university, and affects investment plans of the university. According to General treaty of service trade under WTO, education and training is seen as a form of general service trade. Education must operate in 4 forms as stipulated in the General treaty of service trade: inter-border provision, services are provided from this member country to another member country; consumption outside territory; trade presentation, service suppliers of a member country establish forms of presentation like 100% foreign owned company, joint venture company, etc. Severe competition between domestic universities and foreign education organizations operating in Vietnam is indispensable. This will create conditions for learners to have lots of choices at the same time put universities and education organizations in the position of self-renovation to compete and develop. Along with urgent demands for human resources to serve the development, higher education has never been paid attention like at present. According to the master plan of universities of Ministry of Education and Training, each local area will have a university. When local universities are established, universities in the city will have difficulty since such universities attract a greater number of students in localities. 36 3.2.1.2 Economical factors  GDP and average income per capital GDP of our country has steadily and relatively high growth rate. Part of GDP is invested in education. Average income per capital has increased over years. Increase in average income per capital means capacity of expenditure on education of the citizens is also increased. Figure 3.2: GDP growth rate of Vietnam over years (Source: World Bank in October, 2009)  Inflation Since 2007, inflation has great impact on socio-economic life in our country. Inflation cause price of goods serving training such as books, studying tools, tuitions to increase high, which causes difficulty for large number of citizens. Figure 3.3: Average income per capita of Vietnam over years (Source: World Bank in October, 2009) Economic development is partly resulted from investment in education. Vice versa, education should also be mobilized and renovated to meet the demands for human resources of the economy. In the context where intellectual economy plays important role in the development of production forces, education 37 and training plays increasingly important role. In addition, resources for production in the world have become increasingly exhausted. It is time for Vietnam to have direction for economic development based on quality of human resources but not on existing resources. Requirement for economic development in deep direction has created difficulty for education sector in general and higher education in particular. Training is not practical, after graduation students have no jobs, enterprises lack of highly qualified laborers, training costs are too high in comparison with obtained interests, etc. are great challenges at present. In addition, economic development also creates demands for continuation education and profession conversion training. This is an opportunity for universities to extend training forms to meet social demands. 3.2.1.3 Cultural and Social factors  Increased intellectual standards of the people According to report in Education development strategy 2001-2010, the whole country has completed the task of illiteracy elimination and primary education universities and is implementing junior high school universities. Average schooling years of the whole country is 7.3, Human Development Index (HDI) of the whole country in the ranking table of United National Development Program (UNDP) has increased from 0.456 (rank 121st) to 0.682 (rank 101/174 – UNDP data in 2006). This causes awareness of the society to change, demand for studying to increase. Education and training service market is a potential environment.  Increased demand for studying Quick change in technology and science, knowledge should always be updated, so learners are required to study whole life. At present, universities are diverse in terms of majors and training levels. Learners can easily convert from professional school level to college and university level. Universities also open new majors such as PR, Hospital Management, Post-harvest Technology, Nano Technology, etc. to meet new trends in the society. 38 Whole life study is both a demand and a condition for existence in constantly changing economic and technical scientific environment. In addition to formal study, trends of organization short-term training courses for working skills are also developed. In general, this is the time when learners have lots of opportunities to choose and access knowledge (see Appendix 3) Figure 3.4: Target, Number of applications over years TARGET APPLICATION  Changing trend towards choosing university and major of candidates Trend of students towards private universities and universities having not high base point is changing. In the enrolment season 2008, number of applications for universities having not high base point in 2007, local universities and colleges increased. This indicates that students have more definite choice to avoid the situation of choosing universities for their reputations. Over the past 6 years, technical and economic majors are chosen most by students. According to statistics of Ministry of Education and Training, more than 30% of total students at present are studying technical and technology majors. Percentage of students entering this group of majors has increased by more or less ten thousand students. Along with the emergence of Vietnam‟s financial market in 2006, economic major is also seen to be „hot‟ at present.  Changing requirements for human resources In a dynamic economy with lots of professions as at present, requirements for human resources have become strictly and constantly. Before, 39 the society focuses on qualification of laborers; now it is different. Qualification is only a necessary condition but not sufficient to exist and develop in the job. At present, enterprises require laborers to have soft skills to easily adapt to working environment. Such skills include group work skill, presentation skill, management and planning skill, etc. It is also a trend which universities aim at to train students comprehensively. 3.2.2 Analysis of micro environment Figure 3.5: HVU’s 5-force competition Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 118 According to 5-forces model of Michael Porter, we analyze industry environment to examine the trend and pressure in the industry as well as compare with competitors to investigate competitive advantage of HVU. Regarding geographical features, development process, management mechanism features of the organization, we decide to select a typical competitor, a private university in the South, which was established in the same period, have better achievements and operation results than HVU: that is Van Lang University. 40  Bargain power of Buyers  Current Buyers: are students studying at the university, including students at university, college of regular programs and second certificate, connection, vocational training programs.  Potential Buyers: - High school pupils who will take entrance examination in the following year; - Pupil parents play very important role in the psychology of choosing university of candidates. This should be noted when organizing advertising programs, events, etc. - Enterprises: At present, demand for human resources, especially high quality human resources in Vietnam is great. Training of a university after all is to focus on training qualified and competent human resources for the utilization purpose of enterprises. Therefore, in the future, customers of universities may be enterprises. However, this group of customers creates added value for universities, not the group of target customers, so it does not create pressure for the university. In the context that Vietnam‟s higher education is strictly controlled by the Government, assignment of annual enrolment target for each university is very difficult, whereas demand for studying is increasing. Every year, only about 20% of high school pupils continue to attend university, college and professional school, so learners have few choices of university, major for themselves. This is shown in the fact that the number of applications to HVU over years is always higher than the target assigned for HVU. Therefore, we are aware that competitive pressure from customers is low.  Bargain power of Suppliers  Lecturers The most important supplier for the university is full-time and part-time lecturers. At present, structure of lecturers of HVU is as follows: 212 full-time lecturers and long-term contractual lecturers; 450 part-time and short-term contractual lecturers. 41 Like most of other private universities, lecturers of the university are mainly part-time lecturers. Advantage of this is that it is flexible to choose and change lecturers to suit teaching program and direction of the university. However, it is also a difficulty when lecturers are not stable. In the context that, many more universities are established, source of lecturers is not sufficient to meet teaching demand of universities. Therefore, all universities have policy to attract lecturers, especially high quality lecturers. So, competitive pressure from this factor is high. Comparing the number of lecturers of HVU and those of VLU (appendix 5, 6), it can be seen that the number of lecturers of HVU is still small. According to current regulations of Ministry of Education and Training, average ratio between student and lecturer for majors is 20 students/lecturer. Therefore, in order to improve the quality as well as to meet the set up standard, HVU must recruit more lecturers. According to the payroll in October 2010 of VLU, average income of a manager is 13 million VND, of a vice manager is 9.5 million VND, and of a 5 year experience expert is 6 million VND. For faculties, average salary of a Dean is 12 million VND, of a vice dean is 8 million VND, and of a lecturer teaching adequate standard number of periods is 6 million VND. Besides this salary, managers, vice managers have other income based on the number of teaching periods and full-time lecturers have more income from excessive number of teaching periods. So, in comparison the salary and income policy of officers, lecturers, employees of HVU and VLU, it can be seen that in order to recruit the number of lecturers as required as well as to keep existing lecturers, HVU firstly should review its salary and income policy.  Rivalry among competing firms At present the whole country has 146 universities and academies, 223 colleges. In Ho Chi Minh City only, there are 37 universities and 30 colleges (according to statistics of Ministry of Education and Training). The competitors with Hung Vuong HCMC University in Ho Chi Minh city are: - Hoa Sen University 42 - Saigon Technology University - Hong Bang International University - Van Lang University - Van Hien University - Engineering – Technology University - Foreign Language – Information Technology University - Gia Dinh Information Technology University - Ton Duc Thang University Regarding the areas from Lam Dong to CaMau, Hung Vuong HCMC University has to suffer from competitive pressure as follows: - Business Administration major: 15 universities are training - Hospital Management major: 2 universities are training - Tourism major: 7 universities are training. - Information Technology major: 7 universities are training. - English major: 12 universities are training. - Finance – Banking major: 6 universities are training. - Post-harvest Technology major: 5 universities are training. Above competitors are public and private universities having operating for at least 10 years. Each university has its own regulations on operation and different customers, in which the most direct competitor of HVU is Van Lang private university (VLU). However, in the future, HVU should overcome these competitors to further development in order to rank in top universities in Vietnam.  Potential entry of new competitors Local universities and colleges are established in order to meet the demand for human resources on the spot. However, due to the feature that education and training in Vietnam is still subject to strict control of the Government, establishment of new university is very difficult. On the other hand, since financial conditions of new universities are not strong, investment, development level is still limited. In addition, studying demand is increasing; supply does not meet demand, so competition from competitor is relatively low. 43 Besides, after joining WTO, Vietnam must enter General Agreement on Trade Service GATS with 12 service sectors including education, so since 01/01/2009, foreign education organizations will officially invest in Vietnam. According to evaluation, education service market in Vietnam is seen to be greatly potential. With their advantages of prestige, experience and especially financial potential, etc. foreign education organizations will be competitors who should not be disregarded for domestic universities. However, this group of competitors does not create high competitive pressure since they aim at customers who have good financial potential, and are willing to invest in more advanced training programs, not at poor population of Vietnam. So, in general, potential entry of new competitors force is not high for universities, that having operated for over 10 years like HVU.  Potential development of substitute products When penetrating into Vietnam‟s market, in addition to the pressure as potential competitors, international education organizations also create another pressure for domestic universities: it is pressure from substitute products. Diverse products from these organizations, such as on spot studying abroad, self studying abroad, training association, etc. with advanced training programs, dynamic teaching and studying methods which motivate research of learners, at the same time, increase remarkably foreign language level of learners, is creating a new trend for Vietnamese citizens. However, limitation of this product is high tuition, which is only suitable for a small party of Vietnamese citizens who have good financial condition. So, competitive level of these products is low. In addition to this substitute product, at present some people have changed their trends from university training to vocational training. Therefore, short-term vocational training courses such as computer technician, accountant, nurse, etc. are also substitute products. So, HVU constantly extends other training forms, not only university level but also college and professional training level. However, competitive level of this group of products is still low, since Vietnamese people still highly appreciate qualification and salary, income is still 44 determined based on qualification. Therefore, attending university is still top choice of most of Vietnamese people from urban to rural areas. Figure 3.6: The level of HVU’s five-force competition 3.2.3 External Factors Evaluations Matrix (EFE) Based on above analysis, using EFE matrix, we determine the capacity of HVU to respond to factors from external environment. Thence, we determine the strengths and weaknesses of HVU to apply in the strategic model. Table 3.1: External Factor Evaluation (EFE) Key External factors Weight Rating Weighted Score 0.130 4 0.520 Educational socialization policy 0.120 4 0.480 Preferential policy of the Government for education 0.100 3 0.300 0.050 3 0.150 0.075 2 0.150 0.070 1 0.070 Opportunities Vietnam‟s socio-economic development increase demand for intellectual training (especially in economics, finance) development Development of substitute services, quick change in technology Customers and the public support private universities Demand for intellectual laborers in the world increases. 45 Threats Customers complain about training quality 0.130 2 0.260 There are more and more domestic and foreign 0.100 2 0.200 0.075 2 0.150 0.150 2 0.300 competitors, potential of competitors is greater and greater Threat of backwardness in comparison with world education Change in the number of part-time lecturers TOTAL 1 2.580 Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 126 With total importance point of 2.58 (in comparison with the average of 2.50), it indicates that the responsive capacity of HVU is only above average for opportunities and threat from external environment. 3.3 Analysis internal factors 3.3.1. Personnel and organization The university has 212 full-time lecturers, including 79 full-time lecturers and long-term contractual lecturers. This staff includes many qualified and experienced lecturers teaching at university level, however, most of them are old. Newly recruited young lecturers are very dynamic, enthusiastic, some of them have fluent foreign language and computer skills; however, their professional skills are limited. The university has 151 managers, officers, including some lecturers currently holding manager positions, who are qualified and experienced at teaching university level, but most of them are old. Most of professional employees are enthusiastic but have limited professional capacity and managerial skills, who should be improved and arranged. 46 Figure 3.7: Ratio of student/lecturer and student/full-time lecturer Percent of student/ fulltime lecturer Percent of student/ lecturer So, in comparisons with quality assessment standards, quality of personnel of the university at present is too low. However, in comparison with other universities, this ratio is acceptable. Therefore, the university should have training policy for young lecturers to quickly build the next generation of lecturers for the university, at the same time quickly recruit new lecturers in order to increase the number of lecturers. 3.3.2. Financial resources Main source of income of HVU is tuitions from university, college and professional school levels. In addition, HVU has another source, that is, tuitions from short-term training courses, continuation education courses. However, at present, HVU has not concentrated in other sources of income since it has to focus all capacity in major training levels, in order to improve training quality and to build its position in the society. By now, HVU locates its position in the direction of low expenditure, so in comparison with other private universities, tuition rate of the university at present is its competitive advantage. Over the past years, tuitions at HVU has been very stable, and increased unremarkably. However, this is also a difficulty of the university, it has no plentiful funds for re-investing, improving its competitiveness in attracting high quality lecturers (see Appendix 5). 47 Figure 3.8: Tuition 3.3.3. Attractiveness of profession - At present, general regulation on training program of all majors must be suitable for social demand and conform to framework program of Ministry of Education and Training, including two parts of knowledge: basic education and professional education. In the last semesters of the course, faculties will divide into majors for training. Training program of the university at present is assessed to be able to meet real demand. This is shown in the percentage of students finding jobs after graduation. The university pays attention to practice so in addition to lessons in the classroom students practice at laboratory, joint extra-curricular activities to supplement their knowledge during the course. - Majors which are the strengths of the university at present are economic majors, which can partly meet the demands of students and the demands of the society. Especially, Hospital management major can be seen as strength of the university since it is the only university training this major. - Since 2010, the university opens new majors including construction engineering technology; at present students of this major are assessed to have high possibility of finding jobs. These are advantages which the university 48 should be marketing more so that students are aware of the significance of training according to present social demands. - The university is providing some short-term training courses for enterprises in such fields as: management, computing, medicine… However, these activities are sparse and have not created income for the university. - Technical majors are limited in terms of number, at present the university only has some majors such as: Information Technology, Post-harvest Technology, Construction Technology, etc. The university should research more about the trends of suitable technical majors at present such as: graphic, movie making which will attract lots of students. - Implementation of connection policies with universities has created new opportunities for students at college, high school level, who want to further study. In addition, it also creates conditions to extend the university with new training majors. 3.3.4. Management capacity Like some other universities, this field has not done well at HVU, due to the effects of the management of previous leaders. Poor management, lack of internal union are also main cause of poor training quality, brand of HVU is also affected, all Board of Management members of previous term did not contribute capital, the university was under common ownership of all officers, lecturers, students, so it was difficult to make a decision on management. Therefore, HVU was not able to maintain the number of enrolled students, which led to decrease in the number of customers, and serious impact on income. Figure 3.9: Percentage of drop-out students Percent of dropped-out students 49 3.3.5. Marketing At present the university is having programs to attract students such as Giving strength to talent (give scholarship to students admitted to the university with high grade); First study, later tuition (lend operational capital which is repaid after graduation; for good students and students from poor families); Break-through (students can be granted 2 certificates of bachelors in 5 – 6 years); Fellowship (support traveling costs for students from distant provinces, for students permanently living from Da Nang inwards) when entering the university; Good family – stable career (support students to find safe and suitable boarding house during the period of study and after graduation students are offered jobs, etc.) For marketing activities alone for potential customers who are pupil, HVU has following main activities: - Advertising in newspapers about university enrolment, second certificate. - Giving advice during exam season at high schools in province in the North – Central region – South. - Deliver brochures for high schools in the city. - Publish articles in newspapers about the university. For private universities, marketing is a very important issue. Over the past year, with its marketing activities, HVU has drawn out following comments: - Exchange with high schools and give scholarships for 12-grade students who have good achievements in study. - Improve website of the university in terms of both content and appearance, with lots of information to attract students to explore the university and the majors. Online consultancy should be added for students who want to apply for the university. - Enrolment consultancy content is not good, information introducing the university mainly focuses on the university features, not focuses on interests and rights of students when attending the university, language used in such documents is dry, mainly descriptive; So equipment, design of consultancy pavilion at attract student and assign personnel to other key positions in 50 compliance with general regulations to guarantee maximum opportunities to contract pupils. 3.3.6. Material facilities In order to develop sustainably it is required to have good material facilities. Good material facilities will contribute to good quality teaching and studying, help to attract attention and trust of learners. In addition, based on material facilities determined specifically by Ministry of Education and Training which assigns enrolment target for each university. However, current material facilities are a common difficulty for universities, especially private universities. Therefore, competitive pressure from supplying material facilities to guarantee operation is relatively high. At present, despite of relatively good floor area for one student of HVU in comparison with VLU (according to report of Ministry of Education, on 31/1/2010, floor area of HVU is 1.7m2/student – of VLU is 1.9m2/student), regarding the quality, agencies of VLU are all under the ownership of VLU, whereas material facilities of HVU are all rented, so agencies of HVU are not stable. If HVU wants to develop sustainably, it should invest in constructing its own agencies. 3.3.7. Tuition Normally, price is one of important competitive tools of enterprises. However, for higher education service product in Vietnam in general and private universities in particular, price has little impact. Normally, there is not much difference in tuitions of private university, at the same time, students at all private universities still enjoy tuition exemption and reduction, capital loan support policies as stipulated by Ministry of Education and Training. Main attention of most students and their families is whether they are admitted or not but whether tuition is high or low. Therefore, relatively high competitive pressure among universities is that enrolment target is high or low, and whether enrolment target is met or not. Enrolment target and number of enrolment decide the income of the school, which then affects the investment plan and has great impact on operation results of the university. 51 In addition, universities compete with each other in terms of quantity and quality of enrolment examination or pass judgment. This factor will help universities have higher quality input, which is a premise for improving training quality and long-term development of private universities. So, there is high competition among private universities in Ho Chi Minh City in particular and in the whole country in general, not in terms of price but of service quality for two main purposes: Increase enrolment target assigned by Ministry and Increase the quantity and the quality of enrolment candidates. Figure 3.10: Number of target and real enrolment of HVU Target Enrolment Figure 3.11: Number of target and real enrolment of VLU Target Enrolment 52 3.3.8. The Internal Factors Evaluation Matrix (IFE) Based on above analysis, using IFE matrix we determine the strengths and weaknesses of HVU as follows: Table 3.2: Internal factor evaluation (IFE) Key Internal Factors Weight Rating Weighted Score Strength Low tuition 0.075 4 0.30 Relatively good marketing activities 0.075 3 0.23 Gradually completed organization - management 0.075 3 0.23 Enroll students in the whole country, mainly 0.050 3 0.15 Good utilization of land 0.070 3 0.21 Improved teaching quality 0.120 3 0.36 Reasonable income of officers and employees 0.075 2 0.15 Agencies are located in the city center 0.075 2 0.15 Stable and high quality lecturers 0.150 2 0.30 Poor financial, economic information system 0.050 2 0.10 Incomplete material facilities 0.110 2 0.22 Weak research and development activities 0.075 2 0.15 from the Central region inwards Weakness TOTAL 1 2.550 Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 168 Rate of importance is 2.55, which shows that the university is at medium level (2.5) in terms of internal position. Therefore, it can be seen that HVU is potential but in order to implement higher goals, HVU should change some of its weaknesses and promote some of its strengths to create new and stronger capacity. 53 3.4 Determination of advantage competition Competitive profile matrix (CPM) identifies a firm‟s major competitors and its particular strength and weaknesses in relations to a sample firm‟s strategic position. Before selecting general strategy, HVU should determine its position in the system of universities, colleges in Ho Chi Minh City in particular and the whole country in general. However, in order to select proper strategy and achieve set up goals, it is important to determine HVU‟s position among its main competitors, specifically, in comparison with Van Lang University (VLU), as well as non-public universities which have also been operating for 15 years. 3.4.1 Favorite product It is most important that training services and products be diverse in terms of training specialties, training programs and favored by the society. At present, HVU‟s specialties are not favored much, except such specialties as Finance and Banking, Accounting, Business Administration and Hospital Administration. Whereas, VLU has many specialties meeting social demands such as Finance and Banking, Accounting, Business Administration, International Trade, Architecture, Construction, Commercial Arts, Environment Technology, etc. HBU, in addition to a few specialties easy to find jobs such as Business Administration, General Treatment and Convalesce, many specialties are not corresponding to tertiary education, do not show scientific research and are not suitable to general demand of the society such as Sports and Physical Training, Martial Arts, Spa Technology. However, training programs of VLU are more limited than those of HVU and HBU. VLU focuses on product differentiation strategy and concentrates on product quality rather than scale expansion, and regular tertiary education. HVU and HBU, in addition to regular tertiary education, have other programs such as college, connection, continuation, second degree, master, etc. Annual enrolment of VLU is better than HVU and HBU, responsiveness to changing demands of the society is also better. 54 3.4.2 Training programs Diversity of favorite products is the first factor that makes customers come to a university. However, in order to develop and affirm its position, the university must focus on product quality, that is, training quality. The higher the training quality is, the easier for graduates to find jobs; the better the students are, the more opportunities they have to work for big companies, etc. All of these improve the prestige and the trademark of the university. It shall have more opportunities to attract good students, which in turn helps to improve training quality. Training program is the main factor creating training quality. Every year, HVU always attaches special importance to updating and improving training programs. However, due to limitation in lecturers and managerial staff, HVU has not developed high quality programs. Training programs of HBU are even weaker than those of HVU. For VLU, every, faculties check, update and revise training programs, gradually apply foreign training programs such as association training program in information technology with Carnegie Melon (CMU – the US), association training program in tourism administration with France, diploma training program in Accounting, Marketing with London Chamber of Commerce and Industry (LCCI – Britain), etc. Therefore, training quality of VLU is more and more improved. 3.4.3 Facilities For a university, facilities have great impact on training quality. In accordance with regulations of Ministry of Education and Training of Vietnam, floor area for each student must be 2m2; there are no regulations on other equipment. However, in the context of Vietnamese society at present, most of public and private universities in Hanoi and Ho Chi Minh City, from longstanding to newly-established ones, floor area norm is not guaranteed. According to the report of Ministry of Education and Training, floor area of HVU is 1,9m2/student, and of VLU is 1,7m2/student. However, VLU‟s establishments are under the ownership of VLU, and invested, purchased by VLU, while HVU‟s establishments are all rented. Therefore, even though VLU‟s floor area has not met the norm, VLU invests in the construction of establishments seriously and 55 spaciously, with sufficient equipment to ensure demand for use, relatively deserving to be a university. While, for HVU and HBU, even though floor area meets the requirement, due to rented establishments, HVU and HBU are not spacious with insufficient equipment, which affects students‟ psychology and lecturers‟ enthusiasm, leading to training quality not as good as expected. At the same time, facilities have great impact on enrolment target of each university every year. 3.4.4 Managerial staff Managerial staff has great impact on the efficiency of a university operation management. For a university, in order to achieve high operation management efficiency, in addition to policies, operation procedures, the most important factor is managerial staff. Good managerial staff leads to better order and discipline, thanks to that, students achieve better results, and lecturers give better lectures. At HVU, the number of managerial staff is relatively small and managerial capacity is not high. This is presented in the fact that number of annual enrolment and graduates, etc. of VLU is higher than HVU. For HBU, managerial staff has changed a lot, managerial capacity is weak, power is held by Rector, and so managerial staff is not active in their work, leading to poor management effectiveness. 3.4.5 Lecturers This is the factor having great impact on the efficiency of a university‟s operation. The better the lecturers are, the higher the training quality is. HVU has relatively good and stable number of lecturers. Lecturers of VLU in comparison with those of HVU are plentiful in terms of quantity, equal in terms of quality and have worked for VLU for a long time. HBU has unstable and unequal quality lecturers due to unstable income policy and operation process. 3.4.6 Financial management capacity This is also a factor affecting the operation efficiency and the development of a university. Regardless of good financial resources, if a university has poor management capacity and financial use policy, in other 56 words, has poor orientation, investment policy and financial use, its operation efficiency as well as development process shall be greatly affected. Even though HVU and HBU have many training programs which help to increase their income, due to wrong orientation and financial investment policy and lack of investment in facilities, after 15 years of operation, both of them have not had their own establishments with poor equipment, which has great impact on their operation efficiency. In addition, HVU and HBU have not had good financial policy to attract talented personnel, so they have not developed high quality human resources. For VLU, thanks to good financial use and management policy, investment in facilities and equipment are attached importance to, so its annual enrolment target is relatively high. However, VLU also has not good financial policy to attract and keep talented personnel so there is a lack of human resources, and long-term human resources development orientation. 3.4.9 Student assistance policy Due to self income and self expenditure feature of a private university in terms of finance, three universities HVU, HBU and VLU are not supported, given preference and invested by the State. However, they have always attached importance to student assistance policy. HVU has student assistance programs such as Talent Strength Giving (offering scholarship for students accepted to the universities with high marks); First Study, Last Tuition (supporting operation loan which is repaid after graduation for good students of poor families); Breakthrough (it is possible to receive two bachelor degrees in 5-6 years); Fellowship (supporting traveling cost for students from far provinces from Da Nang towards); Good Accommodation – Peaceful Life (assisting students to find safe and suitable accommodation during study and offering jobs for students after graduation, etc.). Every year, VLU maintains and well perform such programs as Reducing tuition for students of policy families, poor households; Offer scholarship for good students; Offer part-time jobs at university such as lift guard, cook helper, news collaborator, etc.; Raise Van Lang Family Fund to help 57 students suffering from illness, accident, sudden difficulty, etc.; Provide accommodation in the dormitory for free; Support expense for students to attend academic contests outside the university, etc. Student assistance policy of HBU is not stable, only students having sudden difficult, good and excellent students are considered to be assisted. 3.4.10 Offer jobs for graduates Offering jobs for graduates is an activity to which importance is always attached. Percentage of students finding jobs, succeeding in careers and job quality, etc of students is increasingly high, which indicates high quality and prestige of the university in the society. According to annual survey, the number of HVU‟s students finding jobs is not big, only 60% in the first 5 years and 80% in 10 recent years. HBU‟s students have difficulty in finding jobs, due to unpopular specialties, poor training quality. For VLU, about 60% of graduates find jobs right after graduation and 99% of students find jobs suitable to their specialties after 12 months since graduation, many students succeed after 4 years of working, and work for big enterprises such as PWC, E&Y, A&C, DTL Sheraton Hotel, Saigon tourist, Ben Thanh Tourism Corporation and Unilever, etc. From the analysis of above factors, we can evaluate competitive capacity of each university, at the same time, applying competitive image matrix, we can determine factors of success, position as well as determine main competitors of each university. Based on experience, observation and level of impact on the society of HVU, VLU we determine the competitive advantage of these 3 universities as follows: 58 Table 3.3: HVU’s Competitive Profile Matrix CRITICAL SUCCESS WEIGHT FACTORS HVU VLU HBU RATING SCORE RATING SCORE RATING SCORE Favorite products 8% 2 0.16 3 0.24 1 0.08 Training programs 22% 2 0.44 3 0.66 2 0.44 Facilities 15% 2 0.30 3 0.45 2 0.30 Lecturers 20% 3 0.60 3 0.60 2 0.40 Managers 5% 2 0.10 3 0.15 2 0.10 Financial capability 10% 3 0.30 3 0.30 2 0.20 Tuition fee 5% 4 0.20 3 0.15 3 0.15 Marketing 5% 3 0.15 2 0.10 4 0.20 Student supporting policy 5% 3 0.15 4 0.20 2 0.10 Job offer for students 5% 2 0.10 3 0.15 2 0.10 TOTAL 100% 2.50 3.00 2.07 Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 127 So, in comparison with 2 above competitors, HVU has higher position than HBU but lower position then VLU. Therefore, HVU‟s main competitor is VLU. So, by now the highest competitive advantage of HVU is tuition, the biggest weakness is material facilities. This is completely suitable for HVU‟s direction towards low expenditure. However, according to above analysis, tuition is not a good factor to create competitive advantage. Therefore, HVU should develop another competitive advantage strategy. 59 3.5 Choice strategies 3.5.1 Determine of generic strategy Michael Porter‟s 5 generic strategies allow organizations to gain competitive advantages based three different bases: cost leadership, differentiation and focus. Figure 3.12: HVU’s Generic Strategy Source: Adapted from Michael E.Porter, Competitive strategy: Techniques analyzing Industries and Competitors (New York: Free Press, 1980: 35-40) HVU‟s differentiation strategy can be effective under following conditions: - There are many ways to differentiate the activities and many students and pupils perceive these differences as having value - The students‟ needs are diverse - Few competitors are following a similar differentiation approach 3.5.2 The SWOT Matrix  Strengths - Training programs meet social demand; - Training organization procedure bring effectiveness for students; - Lecturers are qualified and experienced in teaching; 60 - Despite of rented places, places for studying are spacious, near the city center, convenient for traveling, equipment, means of teaching are improve.  Weaknesses - Even though the training majors at the university at present can meet social demands, they are “temporary” majors which can only meet demands at the time; - Marketing activities are not methodological and incoherent; - Human resource: the university has many part-time lecturers which cause difficulty for improving teaching methods; - Studying programs are limited, passive due to rented plan; - Material, technical facilities of the university are still low, unable to meet student demands.  Opportunities - Have opportunity to extend training majors through association with foreign education organizations; - Demand for further study is increasing; - Vietnamese people want to have high qualification according to their culture. - Government policies support educational socialization; - Economy develops expenditure on study increases.  Threats - Compete with domestic universities. - In 2009 foreign education organizations officially invested in Vietnam, this is the biggest difficulty in the trend of competition in the sector. - Policies of connection, association with foreign education organizations are difficult for domestic organizations to implement. 61 Table 3.4: SWOT Matrix OPPRTUNITIES THREATS O1. Have opportunity to T1. External Factors extend training Compete with majors domestic universities. through association with T2. In 2009 foreign foreign education education organizations. organizations officially O2. Demand for further invested in Vietnam, study is increasing. O3. this Vietnamese want to is the biggest people difficulty in the trend have high of competition in the qualification according to sector. their culture. T3. Policies of O4. Government policies connection, association Internal Factors support educational with foreign education socialization. O5. organizations Economy expenditure develops difficult for domestic on study organizations increases. STRENGTHS are implement. S-O Strategies S-T Strategies S2. Good marketing activities S3. Acceptable quality. S4. High quality Improve training quality, Invest in material lecturers. differentiation activities facilities S1. Low tuition fees. S5. Rented agencies are located in the city centre, distance between agencies is short. S6. Good property management 62 to WEAKNESSES W-O Strategies W-T Strategies Marketing and branding Re- structure development organization W1. Training programs are “temporary”. W2. Human resources: invite many part-time lecturers, which cause difficulty for renovating teaching methods. W3. Studying programs are limited, passive when using rented premises. W5. Material facilities of the university are still poor, unable to meet demands of students. Source: Fred R. David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 225 3.5.3 The SPACE Matrix No. ASSESSMENT CRITERIA FINANCIAL STRENGTH (FS) RATING 4,2 1 High capability to attract financial investors 5 2 Easy to withdraw from the sector 5 3 Low risk in business 5 4 Relatively high return on equity 3 5 Low tuition fee resulting in low revenue 3 ENVIRONMENTAL STABILITY (ES) -1,8 1 Advocated by the state policy -1 2 High customer demand -1 63 3 Little change in demand -2 4 High hindrance caused by new competitors -2 5 Little impact of price on demand -2 COMPETITIVE ADVANTAGES (CA) 4 1 Recognized training quality 3 2 Annual enrollment meets target 5 3 Stable number of lecturers with high level 4 and rich experience 4 Guaranteed technical facilities 3 5 Low tuition fee 5 INDUSTRY STRENGTHS (IS) 1 -2 High potential of tertiary industry -1 development 2 Low competition pressure from new and -2 potential competitors 3 Relatively good potential growth rate -2 4 Low technological requirements -3 64 Figure 3.13: HVU’s SPACE Matrix Source: H. Rowe, R.WMason and K.Dickel, Strategic Management and Business Policy: A Methodological Approach (Reading, Massachusetts: Addison – Wesley Publishing Co. Inc, 1982) 155 According to above matrix, it can be seen that, HVU has relatively financial capacity and many competitive advantages in a sector that is highly potential to develop in a sustainable way. Therefore, HVU should uphold all of its capacities, use aggressive strategy to further develop quickly. CONCLUSION OF CHAPTER 3 So, we are aware that HVU needs to change its viewpoint about development strategy in the next 10 years; it is not advisable to continue applying the strategy of low tuition, but to focus on improving training quality, make a differentiation in activities. 65 CHAPTER 4 ESTABLISHMENT OF DEVELOPMENT STRATEGY OF HUNG VUONG HOCHIMINH CITY UNIVERSITY FOR THE PERIOD OF 2011-2020 1.1. Demand forecast 4.1.1. Number of students Years Target of university Number of students and college 2010 2,000 10,081 2011 2,300 11,500 2012 2,300 12,000 2013 2,300 13,000 2014 2,500 14,000 2015 2,550 15,000 2016 2,560 16,000 2017 2,600 17,000 2018 2,650 18,000 2019 2,700 19,000 2020 2,800 20,000 4.1.2. Human resources In order to guarantee training quality as well as be active in its operations, HVU should have its own lecturers. According to university assessment standards, demand for human resources in the next 10 years of HVU is: - In 2003, 300 lecturers are needed, number of managers must increase by 20%; - In 2010, 400 lecturers are needed, number of managers must increase by 50%. 66 4.1.3. Material faculties In order to meet demand for number of students in the next 10 years, HVU needs to have material facilities as follows: Material facilities 2015 2020 30,000m2 40,000m2 Computers 700 pcs 1,000 pcs Projector 700 pcs 1,000 pcs Construction floor area 4.1.4. Finance - Stable income and sufficient to guarantee operation, especially to change salary and income policy, salary fund is estimated to increase by 20%; - Construct the agency at 736 Nguyen Trai, District 5, the cost is estimated to be 50 billion dong; - Construct Hung Vuong University village in Binh Chanh, the cost is estimated to be 300 billion dong. 4.1.5. Marketing - Marketing strategy should be developed for potential customers who are high school pupils; - PR strategy should be built to promote and develop the prestige of HVU, to create good relations with parents and enterprises. 1.2. Development direction of HVU by 2020 4.2.1. Vision Statement for a year 2020 According to Associate Professor Luong Ngoc Toan – Chief Executive Officer: “Values and goals which HVU is pursuing are: - By 2020, HVU will become of top private universities in Vietnam and rank in top 100 universities and colleges in ASEAN region; - Training philosophy is to combine training and utilization, training according to social demand, after graduation students can find jobs and do not need re-training; - Scientific research and technology competition is important factor in the strategy; 67 - No self-interest is a connotation in the development philosophy of the university: investment in education is not for profit, arising profit is reinvested in the university; - Open university: association, joint venture, cooperation, competition along with development are reason for living and long-term, sustainable development; - International cooperation is the strategic direction in the vision of the development philosophy.” 4.2.2. Mission Statement - Hung Vuong HCMC University commits to multi disciplinary, multi major, multi level training to provide high quality technical human resources for the industrialization and modernization cause of the country especially for Southern areas and contribute to the export of skilled laborers. - Hung Vuong HCMC University commits to implement the task of popularizing knowledge and professional skill for practical interest of students and the community so that after graduation student can find jobs and create jobs to contribute to the construction of our country with the goal of prosperous population, strong country, fair, civilized and democratic society. - Own high quality human resources. 4.2.3. Directional values and quality policy According to Associate Professor, Mr. Le Van Ly, Rector of HVU: “HVU commits to keep its quality values, including: service, time, brand, sponsor, price and space” - Service: Build a prestigious academic environment, a staff of officers – lecturers adequate in quantity, strong in professional skill and accepted by the society. Build and develop the tradition of the university, uphold the internal forces, take advantage of cooperation and healthy competition to develop the university sustainably; 68 - Time: Guarantee the promptness and appropriateness of training majors during the training period; - Brand: HVU brand will attach to the quality of graduates; - Sponsor: Guarantee more than 90% of students after graduation find jobs; provide good quality lecturers; provide material facilities meeting requirements and sufficient quantity; Students are always center of services. - Price: Maintain at the lowest price so that students feel secure during the process of study. - Space: Conform to regulations on floor area for each student.” 4.3 Demand of goals by 2020 4.3.1. Training  From 2011 to 2013: - Focus on improving training quality at regular university level, for example, un 2011 establish sub-departments in all faculties to better manage the improvement of training quality and scientific research, to check and update training programs to guarantee amount of knowledge and basic skills, update advanced programs of foreign countries at the same time renovate in accordance with real situation of Vietnam in order to further guarantee the quantity and quality of annual enrolment, which is the basis for increasing tuition; - Implement connection programs at high school – college – university training levels and connection programs with domestic and international universities;  From 2013 to 2016 - Improve training quality for 2 important skills, foreign language and computing and other soft skills, practice skills for students to easily find jobs. - Close 2 majors Japanese and Post-harvest Technology due to inability to attract students. - Open more majors such as Technology, Construction, investigate other new majors. 69  From 2016 to 2020 - Establish Medical institute, Human resources training center and other centers for high class human resources training to meet social demand; - Combine training and human resource utilization of domestic and international market (priority is given to industrial zones). 4.3.2. Research and international cooperation - Develop the university to become an agency both carrying scientific research and technology transfer, applying achievements of scientific research into life and business production. - Scientific research should firstly serve the training and improvement of teaching methods, improving the management efficiency of the University, guaranteeing that by 2015 30% of full-time lecturers carry out annual scientific research, by 2020 50% of full-time lecturers carry out annual scientific research, including topics at Ministry level and National level. - Develop research programs to serve industrial zones, enterprises and provinces in the South; - Combine scientific research and training lecturers and train students to do scientific research through graduation thesis topics. - Promote international cooperation firstly by establishing training cooperation with other universities in the region and in the world, focusing on European and American universities. - Extend cooperation and exchange of lecturers, scientists, managers; especially create conditions for young officers to improve their professional skill by abroad study at the spot or overseas. - Exchange information, organize conference, international workshop, especially organize cultural exchange with countries, the languages of which are being taught at the university in order to practice foreign language and extend international cooperation. 70 4.3.3. Human resources  From 2011 to 2013 - Gradually increase the ratio of student/lecturer by 2013 to 25 students/lecturer; Gradually increase the percentage of lecturers at master level to 40%; - Increase 20% of managers not currently holding another position; - Develop a staff having qualification, skill, saving at most the staff of service employees by signing contracts with hygiene service companies; - Renovate salary policy, increase income for officers, lecturers and employees in order to keep talented people and attract new forces.  From 2013 to 2016 - Recruit new lecturers, guarantee the ratio of student/lecturer of 23 students/lecturer by 2016; Gradually increase the percentage of lecturers at master level to 40% by 2015; - Improve the quality of officers and managers, in order to reduce strongly the percentage of drop out, drop out halfway, from that guarantee financial sources, at the same time pay attention to the next lecturers to replace senior managers at present;  From 2016 to 2020 - Gradually increase the ratio of student/lecturer to 50% by 2020; - Increase the number of lecturers who are doctors to 30%; 4.3.4. Material facilities  From 2010 to 2011: - Continue to maintain existing material facilities, stabilize existing floor area and number of classrooms; - Complete the construction of the agency at 736 Nguyen Trai, District 5; - Equip modern equipment for training and scientific research, especially give priority to audiovisual equipment for improving teaching methods, and equip computers connected to internal transmission line and internet.  From 2011 to 2015: - Start the construction of the university zone in Binh Chanh; 71 - Extend the scale, open new agencies in some localities having sufficient conditions, pay attention to building dormitory for students and sports agencies for entertainment and recreation;  From 2016 to 2020: - Study to build some modern laboratories and some practicum agencies for students to practice. - Build research and application center in order to improve research capacity for full-time lecturers. 4.3.5. Finance  From 2011 to 2015: - Increase income from tuition, fee be increasing training size, diversifying forms for training, open short-term and long-term training courses, especially actively exploit resources from training IT workforce exported to Japanese.  From 2016 to 2020: - Uphold internal forces, take best advantage of external forces from major investor of the university, Saigon Invest Group (SGI) to build and develop the university, at the same time invite other investors to jointly contribute shares to invest in constructing the university be various forms, which is beneficial for both parties; - Take best advantage of sources of preferential credit loans of the Government and external aids; - Extend sources of income from scientific research, technology transfer and other services, etc. to increase income for the university. 4.3.6. Marketing  From 2011to 2015: - Build the image and position of a university meeting Vietnam‟s quality standards;  From 2016 to 2020: - Build the image of HVU in the mind and heart of Vietnamese people. 72 4.4 General development strategy Based on factors of external environment, internal environment, situation of operation of the university over the past time and above mentioned goals, we can make general development strategy as follows: Table 4.1: Main strategies Strategies Main contents Diversify training Open new majors suitable with the trend such as economic majors majors, biological technology, environmental technology, etc. Diversify training Extend and consolidate training forms. forms Develop training Focus on improving training quality for regular programs majors and quality and gradually standardize training quality for irregular programs. Build methodological Focus on investing in research and applying marketing strategies. marketing activities Invest in material facilities according to - Invest in building the university, increasing floor area and number of classrooms. - Invest in equipment, computers, management procedure. national standards Reduce the majors Reduce the size and dissolve majors unable to recruit unable to attract target enrolment for 5 years. students Structure re- - Rearrange structure, organization system, transfer and organization allocate employees according to commend and reward strategy policy. - Extend forms of mobilization, deep training, focus on management, training especially managers, establish 73 quality assessment division. - Build operation mechanism towards decentralization direction. - Improve financial management quality, reduce expenditure, and increase competitiveness. 4.5 Solutions to strategic implementation From the social situation, trend of profession, goal and capacity of HVU, we propose some main solutions to implement the strategies set up above. 4.5.1. Viewpoint of solution development - Solutions must be conformable with guideline, policy and socio-economic development program, education and training development strategy of the government; - Solutions must originate from real situation of the university, that means, uphold the strengths, repair the weaknesses, take advantage of opportunities, limit risks from external environment; - Solutions must be feasible. 4.5.2. Solutions to training - Build policy to attract good lecturers, scientists of Research Institutes, who have lots of experience in teaching at university, college, professional school in order to build a group of quality lecturers (full-time lecturers, long-term contractual lecturers, part-time lecturers); - Invest in building lecturers of post-graduation level to improve professional qualification and scientific research ability to prepare for opening post graduate training since 2015. - Give priority to use advanced education technology to support the renovation of teaching and studying methods; Convert from academic training form to credit training form; - Develop and adjust training programs in compliance with advanced programs in the world; guarantee the balance between theory and practice, curricular 74 time and extra-curricular time, in class and self-study, gradually implement modules of contents and increase selective parts for students; - Exploit and use advanced university training programs of foreign universities to apply in HVU in order to create international connection; Test training programs in foreign languages, maybe haft training at home and half training overseas. - Survey and use opinions of labor users for students after graduation to improve programs and the appropriateness of training programs. 4.5.3. Solutions to research and international cooperation - Establish the link between scientific research, technology transfer between training units of the university and the institutes, research centers of the university and outside, and enterprises and localities. - Assign scientific research topics to units towards serving the development of textbooks, programs, and the improvement of training methods of the university. - Construct and equip some laboratories for experiment, practice and scientific research, technology transfer. - Actively take part in scientific research programs at ministry and city level. - Enact regulations, policies to mobilize lecturers and students to take part in scientific research, combine 3 training areas – scientific research – business production. - Spend suitable expenses for scientific research topics of Faculties. Scientific Research Department and International Cooperation Department is responsible to give advice and assist Managing Board to actively develop this strategy. - Promote international cooperation with foreign universities such as Quebec Montreal, Sorbonne, Colorado, Philadelphia…in form of training association 2-2 to grant double degree, transfer technology of training program, etc. 75 4.5.4. Solutions to human resource development - A quick way to increase the number of lecturers is to depend on long-term contractual lecturers, with 133 lecturers, including 16 Bachelors, 54 Masters, 49 Doctors, 11 Associate Professors, and 03 Professors. The university should soon develop the policy of transferring some part-time lecturers who have worked for the university for long to long-term contractual lecturers to increase the number of full-time lecturers, at the same time, have the master plan for developing lecturers to prepare for opening new faculties, majors as well as new agencies. - Give priority to attract highly qualified lecturers, good managers, those having good foreign language and fluent computer skills; Have policy to improve professional qualification for officers and lecturers and policy to create conditions for them to attach to the university in the long-term; - Actively attract collaborators from research institutes to work at the university, at the same time have policy to use scientists, overseas Vietnamese university lecturers collaborating with the university; - Give priority to select excellent students to train to future officers of the university; - Attract good professional employees to work at the university; - Be fair and open in recruitment; recruitment must be implemented through Recruitment board of the university; - Develop preferential policies suitable for officers, employees and full-time lecturers; - Focus on training and improving the quality of managers, lecturers, professional employees to meet the demand and to serve the management, teaching and scientific research of the university; - Have policies to improve professional skill for officers and lecturers and policies to create conditions for them to attach to the university in the longterm. 76 4.5.5. Solutions to the implementation of management procedure - Apply international quality control system in the management of the university such as quality control system according to ISO 9000 standard, EFQM management system of European universities; - All managers are required to be able to use computers, to know skills to exploit data on internet; - Implement to decentralize management for Faculty, Department, Division, institute and center, at the same time, build Regulation on responsibility, right division, reward, penalty to encourage competition for better performance; - Establish management system operation center according to e-government modern from storing data about personnel, finance, material, technical equipment to operation of professional activities such as making timetable, using classrooms, laboratories, conference rooms, practicum, etc. - Establish management operation center of the university, connect with units in the university for management; - Equipment necessary facilities for management in e-government model; - Assign specialists to study university management technology at advanced domestic and international universities; - Develop suitable training procedure, help students to study effectively, publicize output standards for each major; Regular survey evaluation of students about training programs, teaching methods to have suitable adjustment. - Associate, establish relationship with enterprises to offer jobs for students after graduation in order to create trust of students. At the same time, HVU re-evaluates its training quality to make plan for adjusting curriculum suitable with real requirements of the society. 4.5.6. Solutions to material facilities investment - Continue to hold on to operating agencies, at the same time find direction for association, cooperation in training to be able to use agencies operating in places having association, cooperation contracts in the city; 77 - Guarantee to build its own agency at 736 Nguyen Trai and actively clear ground in Binh Chanh area to build the university at this location; Actively apply for more land assignment in district 9 with an area of 15ha as agreed by the city for the university; Receive 2 floors on the high rise building in Quang Trung software park; - Establish Hung Vuong HCMC University development and construction investment Joint Stock Company to implement material facilities construction; - Call for investors to contribute capital for material facilities construction or borrow capital from the banks to implement the construction project of 8floor building at 736 Nguyen Trai – District 5, ground clearance, compensation and ground backfilling, development of master plan map to implement the construction in Binh Chanh district; - Invest in and modernize teaching and studying equipment, upgrade classrooms for majors having special features, for example: laboratory for Post-harvest Technology Faculty, laboratories for some faculties, computer room, network technology department for Information Technology Faculty; - Invest in building the library, strive to become e-library by 2015; use internet, intranet, specialized software, guarantee that officers and lecturers as well as students can exploit data on internet to serve teaching, studying, scientific research, gradually connect with e-libraries of domestic and international universities; - Urgently complete material facilities, equipment upgrading and construction plan in order to serve management, training and scientific research activities of the university. - Associate with high quality Foreign Language – Computing Centers so that students can study in an environment with better material facilities but the university does not invest in teaching and studying equipment for such subject. 78 4.5.7. Solutions to finance and assets increase - Change tuition policy to be suitable with training quality; - Manage and use effectively income, guarantee payment – expenditure as stipulated; - Have policy to attract investors, so that to find financial sources to develop the university; - Have reasonable associate policy to call for support cooperation from specialists; - Diversify training forms to increase sources of income for the university; - Calculate and save expenses so that expenditure is less but efficiency is still high; - Have policy to encourage units to create high income for the university and assign units which have not balanced payment and expenditure to have measures to popularize to increase income for the university; - Apply software for financial, assets management, payment, tuition collection via network, banks, encourage payment, salary payment via ATM credit card. 4.5.8. Solutions to marketing and brand development - Build consistent, simple logo, image creating impression for customers to distinguish from other universities; - Designing student uniforms, wearing cards at the university also contribute to create beautiful image; - Exchange students of high schools; - Coordinate with enterprises to organize Job festivals; - Sponsor common activities of students in the area such as annual crosscountry run, Football, Student performance festival, etc. 79 CONCLUSION TO CHAPTER 4 For the period of 2011-2020, HVU should determine to develop and implement the strategy of training quality improvement, especially create a distinctive product such as association with foreign universities to train double degrees or associate with enterprises which commit to use students of HVU. In addition to the main strategy of training quality improvement, HVU should also focus on the strategy of investment in material facilities. This is the main strategy to increase the number of students, hence to increase income, at the same time, create beautiful image of HVU in the society. 80 CONCLUSIONS Operation environment of higher education always changes and become more competitive. In order to be stable, each university should build its own sustainable competitive advantage. A way leading to success of universities is to have direction and goal of operation, and in order to implement such goal, each university must build its own suitable way. It is the strategy suitable for each stage and phase. Based on analysis of the real situation of operations of HVU and factors affecting operations of HVU, we are aware of the significance of building a strategy and strategic direction for HVU. By establishing development strategy for the university, we wish to have a practical view of the real situation and set up strategies will help HVU to stabilize and further develop, so as to gradually confirm its position in the society. For the first 3 years of the development strategy, it strives to reach 50% of level 1 and 50% of level 2 of 10 standards and 53 criteria for university quality assessment issued by the Government. By 2020, the university strives to reach 100% of level 2 for the whole standards and criteria as stipulated. We hope this study will become a basis for real development strategies of the university. In this study, set up goals are basis goals, key tasks, and main solutions. After 3 years of implementation, the strategy will be checked and adjusted suitably. Every year, the university will specify this strategy according to academic year plan and will be specific in monthly schedule of the university. Based on analysis of the real situation of operation of HVU along with factors affecting operation of HVU, we are aware of the significance of building a strategy and strategic direction for HVU. Construction and development strategy of Hung Vuong HCMC University by 2020 is drafted based on existing data and capacities of the university. This strategy shall be adjusted, supplemented after a period of implementation (about 5 years). Based on this strategic plan, units will develop their strategic plans to implement the strategy of the university. Whether the strategic plan is implemented or not, it depends on the management capacity of 81 leaders of the university and all units and members of the university. Therefore strategic goals must be specified in annual plan for implementation. With current conditions of the university, our recommendations and solutions given in this study are feasible. However, the implementation requires comprehensive coordination among units. The development of brand image of a university is long-term task and will surely not avoid difficulties. For mission 1: “Meet the demand for high quality personnel who are energetic, ambitious, cooperative and creative in the context of global competition in labor intellectual in the 21st century”, we are confident that HVU will develop more sustainably in the new era – the era of knowledge and technology. 82 SUGGESTIONS From the implementation and result obtained from the study, we propose some recommendations as follows:  For the Government - Private universities still have lots of difficulties in terms of material facilities, officers and lecturers still have lots of shortcomings, which affect the training quality, so they have not created great repercussion. In addition, some universities have not developed reasonable direction in the education cause, which affects image of private universities in the society. Besides, in the society, there are still wrong public opinions about these universities such as “Super profit business, commercialization, etc. students are those who are excluded from public universities, etc”. This is a big obstacle for the development of the university. Therefore, the government should have a policy to assist and support private universities to develop such as support in terms of land, agency, preferential capital loan, etc. to guarantee that the educational socialization policy of the Party and the Government is implemented widely and effectively. - According to experience of some countries in the world, Vietnamese government should accept the viewpoint that 02 types of private universities may be co-exists, that is, universities not aiming at profit, and universities aiming at profit and maybe another type, that is, semi-public university, in which the government and individual jointly invest and manage. From that point, the society will have vision of different management styles with these 02 forms of universities.  For Ministry of Education and Training - As a state administration unit, Ministry of Education and Training should balance between private university and public university in some fields such as: permitting regular training programs like vocational training, second certificate training, distant training, enrolment, consideration of 83 academic title, recognition of outstanding teacher, etc. for lecturers so as to create conditions for universities to strive in the long term and for lecturers feel secure in developing their professions. - Ministry of Education and Training should eliminate current management mechanism; bravely apply university management mechanism of foreign universities in order to improve self-control of universities so that they can develop their own strengths. Ministry should enhance the inspection, supervision of operation and intervene promptly regarding violations of regulations in order to guarantee training quality of universities. - With limited conditions in various aspects, based on this study, Ministry of Education and Training evaluates private universities, then compare and find the strengths, weaknesses, advantages, difficulties as per region, capacity, finance, mission, goal, etc. to provide prompt support and direction for universities to develop.  For localities Localities where private universities are located, specifically in Ho Chi Minh City should create conditions and have specific support policies to help universities guarantee training quality and develop such as land grant, financial support, capital contribution and call for capital contribution, preferential capital loan, etc.  For private universities Private universities in Ho Chi Minh city in particular and private universities in Vietnam in general should clearly determine their mission and goal, profession structure development guideline with their own distinctive features, invest in and improve material facilities conditions, teaching and studying equipment in order to guarantee quality to prepare for official assessment of Ministry of Education and Training and international integration of Vietnam‟s education sector. 84  For HVU Strategic model has various levels: general strategy, department level strategy, individual strategy. In this study, we only develop general strategy for HVU. In order to implement this strategy, leaders of HVU should specify the strategy for each department and individual strategy, generally called business unit strategy. The more specific and reasonable business unit strategy is, and the 85 APPENDIXES Appendix 1: Number and structure of officers and employees of HVU Total Professional qualification Doctor A Master University College Others 1 2 3 5 6 7 151 14 26 89 3 19 3 2 1 0 0 0 1.2 Officers 35 10 15 9 1 0 1.3 Employees 113 2 11 79 2 19 2.Lecturers 212 61 77 57 0 0 2.1 Full-time 79 14 26 39 0 0 2.2 Long-term 133 57 58 18 0 0 1. Managers 1.1 School managing board contractual (Source: Personnel Department in October, 2009) 1a Appendix 2: Target, Number of application and admission YEAR TARGET NUMBER OF NUMBER OF REAL APPLICATIONS ADMISSION ENROLMENT RATIO OF REAL ENROLMENT/ TARGET 1995 1,200 2,801 652 622 51.83% 1996 1,200 6,593 2,584 1,240 103.33% 1997 1,500 6,508 2,720 1,562 104.13% 1998 1,200 3,410 954 572 47.67% 1999 1,000 2,200 773 553 55.30% 2000 1,000 3,253 1,300 975 97.50% 2001 1,000 9,340 1,683 1,251 125.10% 2002 1,000 5,363 2,891 1,234 123.40% 2003 1,000 7,633 3,519 1,493 149.30% 2004 1,000 875 589 274 27.40% 2005 550 2,269 951 473 86.00% 2006 500 1,365 1,365 891 178.20% 2007 880 3,348 2,152 1,314 149.32% 2008 1,700 5,981 3,064 2,058 121.06% 2009 1,500 9,226 2,048 1,445 96.33% Total 16,230 7,0165 27,245 15,957 98.32% (Source: Training Department in October, 2009) 2a Appendix 3: Number of graduates in comparison with number of enrolment over years Course University Input College Second certificate Graduates Input Graduates Input Graduates Total Input Graduates 1995 622 339 622 339 1996 1,240 849 1,240 849 1997 1,562 985 100 42 1,662 1,027 1998 572 384 104 47 676 431 1999 553 340 128 51 681 391 2000 975 615 975 615 2001 1,251 818 1,251 818 2002 1,243 822 1,243 822 2003 1,500 748 1,500 748 2004 274 194 309 28 2005 473 330 930 620 2006 891 Total 11,129 6,424 35 28 457 290 914 349 34 15 1,839 364 1,703 779 69 43 12,928 6,068 (Source: Training Department in October, 2009) 3a Appendix 4: Data of HVU Years Number Number Number of Ratio of Ratio of of of full- part-time student/lecturer student/full- students time lecturers time lecturer lecturers 1995 1,215 35 10 120 35 1996 2,135 53 21 104 40 1997 2,860 68 34 85 42 1998 3,630 68 52 70 53 1999 3,609 88 60 60 41 2000 3,374 90 62 54 37 2001 3,303 101 66 50 33 2002 3,567 142 89 40 25 2003 4,667 42 126 37 111 2004 3,727 44 106 35 85 2005 2,648 44 88 30 60 2006 4,173 53 167 25 79 2007 4,784 62 208 23 77 2008 7,601 152 400 19 50 2009 9,096 214 535 17 43 (Source: Administration Organization Department, October 2009) 4a Appendix 5: Number of students and managers of HVU over years Number of students and managers of HVU over years Years Number of Number of Number of drop-out students managers students 1995 1,215 38 105 1996 2,135 42 165 1997 2,860 45 189 1998 3,630 42 87 1999 3,609 51 132 2000 3,374 46 147 2001 3,303 49 129 2002 3,567 49 89 2003 4,667 65 160 2004 3,727 53 38 2005 2,648 61 115 2006 4,173 60 313 2007 4,784 87 243 2008 7,601 107 196 2009 9,096 151 236 (Source: Administration Organization Department, October 2009) 5a Appendix 6: Number of lecturers of VLU over years Years Number of Number of Number Number of Ratio of students managers of full- part-time student/lecturer time lecturers (unconverted) lecturers 1999 12.406 56 80 468 22,6 2000 11.056 93 101 419 21.2 2001 8.611 111 102 380 17,9 2002 6.866 119 104 370 14,5 2003 6.500 103 119 364 13,51 2004 6.332 138 123 379 12,6 2005 6.468 117 129 412 12,0 2006 7.072 122 142 416 12,7 2007 7.922 134 169 474 12,3 2008 9.313 103 207 547 12,4 2009 10.209 119 227 668 11,4 192 277 653 2010 6a Appendix 7: Target, Number of application and admission of VLU over years Years Target Number of Real Number of students applications enrolment every year 1995 4,700 16,500 4,560 4,560 1996 2,000 14,600 2,500 7,070 1997 2,500 19,600 3,300 10,400 1998 2,500 20,900 2,370 12,400 1999 1,500 7,140 1,660 11,050 2000 1,250 26,700 1,500 8,600 2001 1,500 22,050 1,580 6,800 2002 1,500 35,100 1,600 6,500 2003 1,650 18,900 1,720 6,330 2004 1,750 3,500 1,810 6,468 2005 2,000 5,050 2,040 7,070 2006 2,000 4,870 2,470 7,900 2007 2,200 7,500 2,910 9,310 2008 2,400 8,700 2,700 10,200 2009 2,600 7,800 2,950 11,390 2010 2,450 7,200 2,750 11,500 7a REFERENCES 1. Nguyen Thi Lien Diep, Pham Van Nam (2003), “Business strategy and policy”, Statistics Publishing House, Hanoi. 2. Nguyen Ngoc Hanh (2007), “Development strategy of Customs Finance College”, Master Thesis, Ho Chi Minh City Economics University. 3. Tran Huynh (16/10/2009), “Universities compete by training quality”, Tuoi Tre Newspaper. 4. Pham Phu (23/6/2010), “Vietnam Education – Dim Profit”, Tuoi Tre Newspaper. 5. Vietnam Ministry of Education and Training, “Higher education assessment criteria” 6. Vietnam Ministry of Education and Training (29/10/2009), “Development of higher education system, solutions to guarantee and improve training quality”, Report No. 760/BC-BGDĐT. 7. Regulation on organization and operation of Hung Vuong Ho Chi Minh City University 8. National Assembly of Socialist Republic of Vietnam (2005), “Education Law (revised)” 9. Prime Minister (17/1/2005), “Regulation on private university” 10. Fred R. David, Twelfth Edition, “Strategic Management - Concepts and Cases”, Pearson Education International. 11. Michael Porter (1980), “Competitive Strategy – Techniques for Analyzing Industries and Competitors”, The Free Press. 12. Michael Porter, “How competitive forces shape strategy”, Harvard Business Shool Publishing. 13. Michael Porter (1998), “Competitive Advantage – Creating and Sustaining Superior Performance”, The Free Press 8a [...]... affecting operations and operational outcomes of the organization 12 Environment of an organization includes internal and external environment Figure 1.2: Environment analysis model Source: Adapted from Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 104, 106, 136 1.2.2.1 The external environment analysis External environment of an organization is determined... strengths and weaknesses of an organization, on that basis propose measures to limit weaknesses and uphold strengths to achieve maximum advantage Main internal factors include such functional fields as: human resources, research and development, production, accounting and finance, marketing and general organization order and discipline 15 Based on above analysis, we make an internal factor evaluation matrix... Structure of the study The study consists of 4 chapters, in addition to the introduction, conclusion and recommendation Chapter 1: Literature review of strategy and strategic development university Chapter 2: Introduction of HungVuong HCMC University Chapter 3: Analysis of HungVuong HCMC University s activities Chapter 4: Establishment of HungVuong HCMC University development strategy from 2011 to 2020. .. Allowance – Teaching pay (if any) - Basic salary: is paid according to qualification, senior - Allowance: includes responsibility coefficient, teaching salary According to data of Accounting Division in September 2010, average income of Manager is 10 million VND, of Vice Dean is 7.5 million VND, and of senior specialist of at least 5 years is 5.5 million dong  For lecturers Teaching salary = Teaching pay... the university to meet national standards of not, at what level; - Hung Vuong HCMC University regulation stipulating organization structure, management, operation, individual responsibility of HVU 1.5 Role of competitive strategy for university Pursuant Regulation on private universities, private universities can “selfcontrol and take responsibility for the master plan, development plan of the university, ... management board - Information network management team Note: Leadership function line Coordination function line Figure 2.2: Number and organization structure of HVU 1 Managers 25 Figure 2.3: Number and qualification of Figure 2.4: Managers and Lecturers of HVU Number and qualification of Lecturers of HVU (See Appendix 1, 2) 2.1.5 Salary policy  For officers, managers Income = Basic salary + Allowance... Concepts and Cases (Pearson Education International, Twelfth Edition) 126 14 1.2.2.2 Value chain analysis The value chain is a systematic approach to examining the development of competitive advantage It was created by Michael E Porter in his book, Competitive Advantage (1985) The chain consists of a series of activities that create and build value They culminate in the total value delivered by an organization... less than 15 billion VND (according to Article 11) 1.4 Legal issues in connection with higher education - Regulation on private university stipulating feature, form, organization structure, establishment conditions, operation mechanism of the private university; - A set of 10 standards, 53 criteria for quality assessment stipulating standards for staff, material facilities, learners, from that recognize... Implementation Source: Adapted from Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 37 1.2.1 Determination of vision, mission and goals of the industry, enterprise A business is not defined by its name, statutes, or articles of incorporation It is defined by the business mission Only a clear definition of the mission and purpose of the organization... difficult conditions in terms of funds as well as help university to feel secure in self-controlling, making decision and taking responsibility in this transitional period 21 CHAPTER 2 INTRODUCTION TO OPERATION OF HUNG VUONG HOCHIMINH CITY UNIVERSITY 2.1 Overview of Hung Vuong HCMC University University name: HUNG VUONG HO CHI MINH CITY UNIVERSITY Date of establishment: 14th August 1995 Traditional date: ... procedure for Hung Vuong HCMC University in a basic, easy to understand and use way  Practical significance: Real situation of Hung Vuong HCMC University is also general situation of all private universities... of Competition Source: Fred R David, Strategic Management: Concepts and Cases (Pearson Education International, Twelfth Edition) 118 Based on above analysis, we make the matrix of external factor... million VND, and of a year experience expert is million VND For faculties, average salary of a Dean is 12 million VND, of a vice dean is million VND, and of a lecturer teaching adequate standard