Phát triển chiến lược kinh doanh cho khách sạn thương mại tị Hà Nội giai đoạn 2011-2020 DEVELOPING BUSINESS STRATEGY FOR VIETNAM TRADE UNION HOTEL IN HANOI FOR THE PERIOD FROM 2011 – 2020 TABLE OF CONTENT INTRODUCTION Rationale of the study 01 Research objectives .01 Research methodology 02 Research scope and limitation .03 Structure of the thesis 03 CONTENT CHAPTER I:BASIC THEORY ON BUSINESS STRATEGY 04 1.1 Business Strategy 04 1.1.1 Concepts 04 1.1.2 Types of strategies 05 1.1.2.1 Integration strategies .05 1.1.2.2 Intensive strategies 05 1.1.2.3 Diversification Strategies 06 1.1.2.4 Defensive strategies 06 1.1.2.5 Michael Porter’s Generic Strategies .06 1.2 Strategy building process .07 1.2.1 Setting business mission 08 1.2.2 External Assessment 08 1.2.2.1 Key external Forces 08 1.2.2.2 The process of performing external assessment .10 1.2.3 Internal Assessment 10 1.2.3.1 Keys internal forces 10 1.2.3.2 The process of performing internal assessment .11 1.2.4 Strategy Analysis and Choice 11 1.2.4.1 The input stage 11 1.2.4.2 The matching stage 11 1.2.4.3 The decision stage 12 1.3 Tools to build business strategies 12 1.3.1 Collecting and systemize information .12 1.3.1.1 EFE Matrix 12 1.3.1.2 IFE Matrix .13 1.3.1.3 Competitive profile matrix .14 1.3.2 Matching stage 15 1.3.2.1 SWOT Matrix 15 1.3.2.2 SPACE Matrix 15 1.3.2.3 The Internal-External (IE) Matrix 16 1.3.3 Decision stage 17 1.4 Characteristics of Hotel industry 18 CHAPTER II: ANALYSIS AND EVALUATION OF BUSINESS NVIRONMENT AND ACTIVITIES OF VIETNAM TRADE UNION HOTEL IN HANOI 2.1 Introduction about Vietnam Trade Union hotel 20 2.1.1 The foundation and development 20 2.1.2 Facilities and services 21 2.1.3 Hotel organization chart: 22 2.1.4 Business results 23 2.2 Vietnam Trade Union Hotel External Assessment .24 2.2.1 Macro Environment 24 2.2.1.1 Economic Environment 24 2.2.1.2 Socio-cultural Environment 27 2.2.1.3 Politic Environment 28 2.2.1.4 Natural Environment .29 2.2.1.5 Technological Environment 30 2.2.2 Micro Environment 31 2.2.2.1 Competitors .31 2.2.2.2 Customers 36 2.2.2.3 Suppliers 37 2.2.2.4 Potential Entry of new competitors 38 2.2.2.5 Potential development of Substitute products 38 2.2.3 Evaluation of Opportunities and Threats .39 2.2.3.1 Threats .39 2.2.3.2 Opportunities 40 2.2.4 EFE Matrix for Vietnam Trade Union Hotel in Hanoi 41 2.3 Vietnam Trade Union Hotel Internal Assessment 42 2.3.1 Organization Structure 42 2.3.2 Human Resources .42 2.3.3 Marketing 44 2.3.4 Management 44 2.3.5 Financial and accounting 45 2.3.6 Research and Development .46 2.3.7 Information Technology and Information System 47 2.3.8 Evaluation of Strengths and Weaknesses 47 2.3.8.1 Strengths 48 2.3.8.2 Weaknesses .48 2.3.9 IFE Matrix 49 2.4 Developing SWOT matrix for Vietnam Trade Union Hotel in Hanoi .50 2.5 Developing IE Matrix for Vietnam Trade Union Hotel in Hanoi .52 CHAPTER III: BUSINESS STRATEGIES FOR VIETNAM TRADE UNION HOTEL IN HANOI FOR THE PERIOD FROM 2011 – 2020 3.1 Analysis of possibly feasible strategies 54 3.1.1 General analysis .54 3.1.2 QSPM Matrix analysis .55 3.2 Strategies for Vietnam Trade Union Hotel from 2011 – 2020 57 3.3 Solutions for applying strategies 58 3.3.1 Developing facilities 58 3.3.2 Turning the hotel into a green hotel .58 3.3.3 Marketing Solutions 60 3.3.3.1 Market segmentation: .60 3.3.3.2 Building Positioning statement .60 3.3.3.3 Advertising .61 3.3.3.3 Distribution and Yield Management .61 3.3.4 Developing Human resources 65 3.3.4.1 Setup job description and performance standard 66 3.3.4.2 Calculating number of employees for the hotel .66 3.3.4.3 Establishing source of labor 67 3.3.4.4 Staff training 68 3.3.5 Restructure the organization 68 3.4 Timeline for implementing solutions 69 3.4.1 Time line 69 3.4.2 Provision for unexpected situations: 71 CONCLUSION 72 REFERENCE: 73 APPENDIX: 75 LIST OF TABLES, CHARTS AND FIGURES Table 1.1 Example of a blank EEF Matrix .13 Table 1.2 Example of a blank IEF Matrix 14 Table 1.3 Example of a blank CPM Matrix 15 Table 1.4 Example of a blank QSPM Matrix 18 Table 2.1 Vietnam Trade Union Hotel in Hanoi Room Tariff 21 Table 2.2 Vietnam Trade Union Company Business results from 2006 to 2010 23 Table 2.3 Vietnam Trade Union Hotel in Hanoi Business results from 2006 - 2010 .24 Table 2.4 Hotel market in Hanoi in 2010 .31 Table 2.5 The development of tourists to Hanoi from 2005 – 2010 .36 Table 2.6 EFE Matrix for Vietnam Trade Union Hotel in Hanoi 41 Table 2.7 The increase in Revenue and Income before tax of Vietnam Trade Union Hotel in Hanoi 46 Table 2.8 IFE Matrix for Vietnam Trade Union Hotel in Hanoi 50 Table 3.1 QSPM Matrix for Vietnam Trade Union Hotel in Hanoi 56 Table 3.2 Timeline for solutions 70 Chart 2.1 Organization chart of Vietnam Trade Union Company 22 Chart 2.2 Organization chart of Vietnam Trade Union Hotel in Hanoi 23 Chart 2.3 The increase of tourists to Hanoi from 2005 - 2010 37 Figure 1.1 Example of a blank IE Matrix .17 Figure 2.1 SWOT Matrix for Vietnam Trade Union Hotel in Hanoi 51 Figure 2.2 IE Matrix for Vietnam Trade Union Hotel in Hanoi 52 INTRODUCTION Rationale of the study Tourism is an economic, environmental and social force of global proportions Developing a strong and sustainable tourism industry has become a priority of great importance of many countries In Vietnam tourism has been recognized as a leading industry providing a huge source of income and job creation for the country Along with the development of tourism industry in Vietnam, tourism in Hanoi has also been developing very fast creating huge demand for hotels and hotel rooms However, this fast development is very tempting to new entry to this industry and thus can create very fierce competitions In addition, the fluctuation of tourism and hotel industry can create problems for development of hotels For that reasons each hotel needs clear strategies for development The hotel is also the main financial and revenue source as well as the head quarter of Vietnam Trade Union Company The health and development of the hotel will greatly affects the health and development of the company and thus a good strategy for the hotel is vital Vietnam Trade Union Hotel in Hanoi is working with positive business results and having great potential for development However, the period form 2011 to 2020 is posing a lot of changes and challenges for tourism industry in Vietnam in general and in Hanoi in particular while the hotel has not a specific strategy for the new period To prepare for this, the hotel should have matching strategies For all these reasons, it is urgent that there is a study to develop business strategies for Vietnam Trade Union Hotel for the period from 2011 to 2020 Research objectives This research project aims to achieve the following objectives:  To provide an overall picture of Vietnam Trade Union Hotel’s business activities with regard to strategy development  To analyze and evaluate the internal and external factors affecting Vietnam Trade Union Hotel  To identify possibly feasible strategies for the hotel for the period from 2011 2020  To propose some solutions for applying strategies for the hotel Research methodology The method of studying is using internal and external audits along with EFE and IFE matrixes with the 5-force model The results of the analysis of the matrixes and the model will then be matched with SWOT and IE matrixes to identify possible strategies to apply The QSPM matrix is then used to identify the suitable strategies to apply When the strategies are identified, a set of solutions to realize strategies are proposed In terms of data collection and analysis, in this project qualitative research method was used intensively The data were collected from secondary and primary sources Qualitative method will be applied to analyze and evaluation about business activities and strategies at Vietnam Trade Union Hotel along with other internal and external factors The following sections present in details the methods to gather and to analyze the data sources used in this project Secondary data sources For theory framework, textbooks on Tourism, Hotel Management, Strategy Management and Hotel Marketing are selected as sources of reference For external evaluation, reports, articles and other data will be collected from VNAT, ITDR, Hanoi Administration of tourism, Vietnam Trade Union Hotel and other sources The data from secondary sources provide information regarding to an overall picture of tourism in Vietnam and Hanoi; the demand for and supply of hotel room; the business results of Vietnam Trade Union Hotel Primary data sources Primary data source were collected using qualitative method as follow: • In-depth interviews will be conducted with General Manager of the hotel and other heads of department • Besides interviews, observation will be applied to evaluate the other related fields of business and operation of the hotel Research scope and limitation The research focuses on the business activities and results in Vietnam Trade Union Hotel and tourism and hotel industry in Hanoi in the period from 2005 to 2010 Other supporting research, data collections are limited to Hanoi area Structure of the project This project includes main chapters: Chapter 1: Basic theory on business strategy Chapter 2: Analysis and evaluation of Business environment and activities of Vietnam Trade Union Hotel in Hanoi Chapter 3: Business strategies for Vietnam Trade Union Hotel in Hanoi for the period from 2011 – 2020 CHAPTER I: BASIC THEORY ON BUSINESS STRATEGY 1.1 Business Strategy 1.1.1 Concepts In order to develop business strategy it is necessary to have a clear definition on strategy to serve as guidance for study and analysis There are several definitions of strategy such as the definition by Chandler “the determination of the basic longterm goals and the objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals." [5] and the one by Quinn “a strategy is the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole” [10] or the one by Johnson and Scholes “Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations” [8] From all the definition it can be seen that strategy aims at identifying how a business or organization reach its goals and objectives In application, there are levels of strategies The first one is Corporate Strategy which is concerned with the overall purpose and scope of the business to meet stakeholder expectations The second one is Business Unit Strategy with more regard on how a business competes successfully in a particular market This type of strategy puts more emphasis on choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc The last one is the Operational Strategy with the concern on organization of each part of a business to deliver the corporate and business-unit level strategic direction In this study, more emphasis is placed on the strategies at strategic business level than other levels However, other types of strategies are also paid attention to as they are very closely related and interacted In addition to that, the module should keep track of the no-show frequency the cost of not doing overbooking or overbooking failure, the daily frequency demand Moreover, the table of no-show experience and calculate the opportunity loss of the room contribution due to no-show and the opportunity loss of “walking” a guest to other hotel due to overbooking should be available for calculation of the critical fractile The table and critical fractile should be as follow [8]: No-show Probability Reservation Overbooked Cumulative Probability d P(d) x P(d