A study on strategic development of hung vuong university hochiminh city for period 2010 – 2020

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
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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

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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.
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-

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.

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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.
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