strategic management of Life Skills Centre_ Kế hoạch Quản trị chiến lược cho TT dạy kỹ năng sống

1. BRIFT INSTRUCTION OF LIFE SKILLS EDU CO., LTD
Life Skills Edu Limited Liability Company is established in the interest of bringing
children helpful knowledge, valuable living skills, improving interpersonal skills and
fulfilling personality – one of significant factors in achieving success after in life of each
person.
With the desire to gain high prestige from result as well as to offer practical
knowledge, skills corresponding to particular need. Life Skills Edu always believe that life
skills can not merely accomplished by learning lessons but experiencing lasting progress
from targeting particular education need to selecting appropriate approaches and finality
offering supports after course to ensure highest effective ness.
Head-office location: Truong Dinh street, District 3, Ho Chi Minh City
Brand name: Life Skills Edu
1.1. VISION:
To be the most admired Life Skills Edu institution in Ho Chi Minh City and
neighboring cities for its people, students and performance.
1.2. MISSION:
Life Skills Edu assists each individual of young generation in the South of Vietnam in
discovering and making good use of their potentialities through high valued-added in-class
courses and out-of-class courses with care and strongest sense of responsibility. We awaken
social awareness in each student by proper teaching techniques. Life Skills Edu will strive to
develop mutually rewarding relationships with its employees and partners. Personal growth
will be the first consideration in the company.
1.3. Mission statement’s components analysis:
 Customer: each individual of young generation
 Product or services: in-class courses and out-of-class courses
 Market: the south of Vietnam
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Life Skills Edu Co.,LTD

 Technology: proper teaching techniques
 Philosophy: with care and strongest sense of responsibility
 Self-concept: high valued-added (in-class courses and out-of-class courses)
 Employees: strive to develop mutually rewarding relationships with its employees

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Life Skills Edu Co.,LTD


2. EXTERNAL ENVIRONMENT
2.1. DEMOGRAPHIC
Ho Chi Minh City is the most densely populated city all over Vietnam. According to
Scientific journal of the Pedagogical University - Ho Chi Minh City published in 2011,
population growth rate of Ho Chi Minh City is three times greater than average growth rate
of other countries. In addition, Ho Chi Minh City has a low gender ratio of 95 male : 100
female.
2.1.1. Population size
According to statistic in 2014, population in Ho Chi Minh City is 8.047 million
people accounted for 8.79% of the total population of Vietnam. From 1997 to 2014, Ho Chi
Minh City saws a considerably stable population growth rate of over 65.85%. Especially, the
period from 1999 to 2009 recorded the highest growth rate in population of the 18-year
period by 2,060,000 people added which means that 206,000 people added each year. In this
10-year period, the average annual population growth rate reached 3.5% which is 1.35 times
greater than that of the after period.
Figure 2.1. Population scale of Ho Chi Minh City from 1997 to 2014

Population scale of Ho Chi Minh City ( Unit: million
people)
9

7.123

7.396

7.521

2009

2010

2011

8
7
6

4.852

5.063

1997

1999

5.449

5.867

6.239

6.651

7.75

7.99

2012

2013

8.047

5
4
3
2
1
0
2001

2003

2005

2007

2014

(Source: Statistical office in Ho Chi Minh City)
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The average population growth rate of Ho Chi Minh City (natural increase and
migratory increase) of the later period is always higher than the former one and migratory
increase always overcomes the other. Migratory increase in population is resulted from
different reasons, among which seeking a convenient place for working, studying and health
care take the main one.
Figure 2.2. Structure in population growth of Ho Chi Minh City

Structure in population growth
4.500%
4.000%

percentage

3.500%
3.000%
2.500%
2.000%
1.500%
1.000%
0.500%
0.000%

19891999

2001

2003

2005

2009

2010

2011

2012

2013

2014

Migratory Increase 0.840% 2.250% 2.070% 1.990% 2.170% 2.350% 2.750% 1.890% 1.542% 1.630%
Natural Increase

1.520% 1.300% 1.180% 1.150% 1.030% 1.110% 1.320% 0.960% 1.004% 1.057%

(Source: Statistical office in Ho Chi Minh City)
2.1.2. Geographic distribution
Coming along with the overall trend of population growth of the city, population
density in 18 urban districts and 5 rural districts also stably creases year by year.
Table 2.1: Population density of Ho Chi Minh City by different districts
2005

2008

2009

2010

2011

Urban
districts

389,365.54

District 1

5,253.17

District 2

2,823.78

430,720.89
4,336.09
,823.78

436,190.99
4,037.65
2,823.78

453,144.00
4,248.00
2,827.00

436,463.00
24,025.00
2,744.00
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District 3

38,514.43 38,514.43

38,514.43

38,403.00

38,394.00

District 4

43,737.56 43,737.56

43,737.56

43,842.00

43,788.00

District 5

40,203.04 40,203.04

40,203.04

40,785.00

41,034.00

District 6

35,135.74 35,135.74

35,135.74

35,254.00

5,035.00

District 7

7,039.51

District 8

21,558.92 21,558.92

District 9

2,164.20

District 10

44,161.87 40,398.25

40,398.25

40,638.00

40,942.00

District 11

5,817.07

44,574.90

45,241.00

45,582.00

District 12

5,817.07

Go Vap

23,725.28 26,313.48

26,584.60

27,768.00

28,423.00

Tan Binh

17,662.24 18,348.21

18,862.11

19,233.00

19,229.00

Tan Phu

23,195.45 24,116.31

24,781.44

35,400.00

26,104.00

Binh Thanh

20,968.21 21,878.90

21,878.90

22,642.00

23,109.00

Phu Nhuan

36,077.05 35,877.87

35,791.19

35,897.00

35,990.00

Thu Duc

7,448.43

Binh Tan

8,062.52

7,039.51

7,039.51
21,558.92

2,164.20

44,574.90

2,164.20

7,325.37

7,687.65

8,589.26

9,266.98

7,700.00
21,844.00
2,311.00

8,092.00

9,546.00

10,608.85

11,150.14

11,473.00

6,174.64

6,732.46

7,008.39

7,453.00
21,978.00
2,360.00

8,559.00

9,936.00
11,778.00

Rural
districts
Cu Chi
Hoc Mon

6,219.56
681.32

774.95

799.84

819.00

7,196.12
834.00

2,493.63

3,112.58

3,215.11

3,285.00

3,326.00

2,493.63

1,273.11

1,607.93

1,770.00

1,841.00

1,010.51

1,034.00

1,095.00

Binh
Chanh
Nha Be

456.82

915.25

Can Gio

94.16

98.75

99.07

100.39

100.12

(Source: Statistical office in Ho Chi Minh City)
2.1.3. Age structure
Age pyramid of Ho Chi Minh City describes a narrow bottom which is contributed by
low reproduction rate as well as migration. Migration people in Ho Chi Minh City are almost

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Life Skills Edu Co.,LTD


from 20 to 50 years old. That results in a relative decrease in share of the group under 19
years old. Similarly, the pointed top of the age pyramid does not mean that Ho Chi Minh
city’s inhabitants have short life span but point out that the number of over-60-year-old
migrators is very small in comparison with the amount of younger one. Furthermore, age
structure of residents of Ho Chi Minh City is different from most of residents of other
regions as the age group between 20 and 24 years old takes up the largest part of the total

population.
Moreover, the age pyramid also reveals that Ho Chi Minh City’s population has a low
child dependence ratio of about 25.3%, which ranked second lowest place in 5 cities having
lowest child dependence ratio all over Vietnam.
Figure 2.3. Age structure of Ho Chi Minh City’s population in 2009

(Source: Report on “Age - Gender structure and Marriage status of Vietnamese
population”, 2009)
2.2. ECONOMY
Ho Chi Minh city is the economic center of Vietnam. During the first 6 months of
2015, Gross domestic product (GDP) of Ho Chi Minh City in 2014 reaches 417.064 billion
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VND, increase 8.55% in comparison with the same period last year. This increase breaks the
record in the past three years.
2.2.1. Gross domestic product
Figure 2.4. GDP of Ho Chi Minh City from 2001 to 2011
600
500
400
300
200
100
0
2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

(Source: Statistical office in Ho Chi Minh City)
2.2.2. Average income and expenditure
Steady increase living standard of Ho Chi Minh City inhabitants proved by annual
income in 2014 reaches 5.131 USD which is 2 times greater than that of the whole country.
In fact, from January of 2015, the minimum salary level increases all over regions of
Vietnam. Specifically, the minimum salary of the first region including Ho Chi Minh City is
3.100.000 VND per month, which is 400.000 VND higher than that of 2014. And this level
is expected to climb up to 3.500.000 VND in 2016.
On the other hand, monthly average income also increases considerably during 8-year
period from 2002 irrespectively rural areas or urban areas.
Figure 2.5. Monthly average income per capita (Unit: thousand dongs)

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3500

3000
2500
2000

Urban areas
Rural areas

1500

Whole City

1000
500
0
2002

2004

2006

2008

2010

(Source: Statistical office in Ho Chi Minh City)
Figure 2.6. Monthly average expenditure per capita in Ho Chi Minh City
60.00%

50.00%

Food, drink
Clothes

40.00%

Housing, water, electricity
Equipment

30.00%

Health care
transportation

20.00%

Education
Entertainment

10.00%

Others

0.00%
2002

2004

2006

2008

2010

(Source: Statistical office in Ho Chi Minh City)
The figure 2.6, points out that food, transportation, equipment and education
respectively are the four costliest purposes for which people pay each month. Despite the

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fact that the first 3 kinds of expenses reduce from 2002 to 2010, education expense costs
more and more over the period.
2.3. LAW
2.3.1. TAXATION LAW
2.3.1.1.

Corporation income tax

The current corporation income tax is 22% but would be 20% after the 1st January of
2016 due to the decree 218/2013/NĐ-CP.

2.3.1.2.

Individual income tax

Concerning individual income tax, one earning less than 100 million VND per year is
free from the individual income tax. However, for the other ones, the income tax is applied
as followed:
Table 2.2. Individual income
Tax

Taxable incomes annually

Tax percentage

bracket (million VND)

(%)

1

Less than or equal 60

5

2

Over 60 to 120

10

3

Over 120 to 216

15

4

Over 216 to 384

20

5

Over 384 to 624

25

6

Over 624 to 960

30

7

Over 960

35

2.3.1.3.

Excise (license tax)

Table 2.3. Annual excise
Excise

Registered capital (billion Annual excise

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bracket

VND)

(VND)

1

Over 10

3.000.000

2

From over 5 to 10

2.000.000

3

From 2 to 5

1.500.000

4

Less than 2

1.000.000

(Source: />2.3.1.4.

Value added tax (VAT)

Corresponding to the business of Life Skills Edu, the applied VAT is 10%
2.3.2. LAW ON PROTECTION, CARE AND EDUCATION OF CHILDREN
As the direct customer of Life Skills Edu is children, this law is vital to the business
of the company. After 8 years from the launch of first version, law on protection, care and
education of children reveals many restrictions. Meanwhile, modern life has created many
problems related to children, such as violence, abuse, exploitation of children. Because of
this fact, the amendment version of the Law is now under consideration.
According to the amendment law, there are 5 high light points should be noticed
 First, the maximum age children increase from 16 to 18 years old.
 Second, specifying the responsibilities, powers of state bodies, social organizations
related to children.
 Third, strengthening supervision responsibilities, supervision functions of the member

organizations of the Vietnam Fatherland Front, the bodies of the National Assembly on
the implementation of laws and programs relating to children
 Fourth, provisions protecting children clearly, specifically, including child protection
services
Thursday, providing details of the children's right to participation, as children are
consulted, children are involved in decision making process of government at all levels
on policies involving children.

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2.4. SOCIAL
In the modern life there are many social problems concerning children which would
hold back the development of the entire Vietnam social if there is no actions to fix them. The
typical problems are: moral degeneration, online game and internet abuse, obesity,
dependence
2.4.1. Internet addiction
Vietnam is one of countries that have high proportion Internet using population (about
50%), concentrating in almost the young. According to NetCitizens Vietnam, the average
Internet using age in Vietnam is 29 years old, much lower than the average age of the whole
world 36 years old.
Due to National Investigation on the Vietnamese adolescent and youth in 2013,
percentage of young people using the Internet reached 73%, including 50.2% of urban youth.
Over 60% of young people access to chat and online gaming. Among them, a youth division
who are so engrossed with the Internet, games should lead to addiction. According to
scientists, Internet addiction bears no difference from drug addiction as users always manage
to online at all cost to immersed in the virtual world.
The research “behavioral manifestations of online game addiction in students studying

in some high school in Ho Chi Minh City" in 2014 conducted on 420 students at four high
schools in the inner city. Initial results showed that 6.89% of sampled students are supposed
to be online game addiction, while the mild addiction proportion accounted for 5.2%.
The online game, Internet addiction put a severe influence on health. Addicts are easy
to get sleeping disorder or get brain, spine hurt, poor eyesight, memory impairment ... lifethreatening. Moreover, because of engrossing with online games, addicts are hard to
concentrated on work and learning, which leads to bad results, even dismissal from school.
Game addiction makes people fall into the virtual life, isolated from reality and family.
Besides, the addicts also lead to social evils such as theft, robbery. In 2014, society was
shock at the murder and robbery in Thai Nguyen by 2 perpetrators who were both under 13

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Life Skills Edu Co.,LTD


years old. Both were game addicts, needing money to continue playing. In Nghe An, the
grandson killed for Uncle bride
2.4.2. The phenomenon of youth suicide in Vietnam in recent years
According to the Trung Vuong Emergency Hospital, Ho Chi Minh City, within one
year (from May 5/2007 - 5/2008), this hospital received 310 cases of suicides under 16 years
old, including 4 deaths. At Children's Hospital 1, Ho Chi Minh City within a month had to
rescue the four young suicide cases by herbicides. The statistics of Children's Hospital 2, Ho
Chi Minh City also showed that there are 47 cases of child suicide in 2008. These figures
have been sounding the alarm about adolescent suicides. It can be seen, the phenomenon of
youth suicide and suicidal students in Vietnam has been very complex place.
According to the Center for psychological crisis prevention (PCP), in Vietnam, youth
age from 15 - 24 years old group has the highest suicide attempts, in which the percentage of
female is as twice as male. National surveys of adolescents and young people in Vietnam
(2010) to more than 10,000 people in this age group showed that 4.1% of people think about
suicide, 25% sought to end life.

Three physiological factors - psychological - social simultaneously pushed many
young people into the unsteady in emotion, the impasse in thinking and in action outbreaks.
The reasons such as failing in exam, scolding from teachers and parents, lovesick… are
things that they can completely overcome by themselves. However, no one teaches them
skills to cope with everyday life stresses like that at all. When they decided to go to the end
of his life, the fault is not completed in the children, but mainly because we have taught them
incomplete.
The current efficient key to solve this problem is attending in life skill courses which
give the youth knowledge, necessary skills, strengthen their mind and help them to overcome
daily life issues.
2.4.3. Moral degradation

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Life Skills Edu Co.,LTD


Ethics youth tends to go down, state law violations and psychological depression in
the children is worse. This issue was pointed out at the seminar on "Violations of law and
morality in students - problems and solutions" by the Hanoi Youth Union held on 30/11.
Survey results also showed that four traits and negative lifestyle trends of young
people in Vietnam today is:
 Self-indulgence
 Violent behavior, law violations
 Selfishness, indifference, apathy, lack of responsibility and enthusiasm of youth
 Superficial life, aping the "fashionable" trend, gross affect by civilization and foreign
culture
From 2008 to 2011, in Ho Chi Minh City, 968 school age cases violated the criminal
law. Particularly, in 2011, the number of law violation young case was fought to be higher
than previous years by 110 cases. Not only increased in number, severity of cases also

increased. If before the 2000s, school age students often not intentionally injure a major
threat when doing robbery or disturbing public order. However, the nature of law violation
cases has changed recent years: more dangerous, more diverse and complex.
Specially, there is a youth division who participate in gangs and dens of criminals
guilty of using violence with aggressive hooligan; very serious consequences.
Besides, the state of cohabitation and sex before marriage is increasing. The young
people have premarital relations because of not only influence of Western culture but also
too easygoing lifestyle, losing good Asian traditions. Particularly, in Ho Chi Minh city, each
year there are over 100,000 births but also the equivalent number of induced abortions.
Severely, 5% of those births given by girls under 18 years old and 15% of those have
children before the age of 20.
2.5. PORTER 5 FORECES
 Threat of new entrants: High – Threat
 Bargaining power of suppliers: Moderate to Low pressure – opportunity.
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Life Skills Edu Co.,LTD


 Bargaining power of buyers: Moderate to high pressure – Threat
 Threat of substitute products: High pressure – Threat
 Rivalry among existing competitors: High pressure – Threat
2.5.1. Threat of new entrants
In fact, the service industry in Ho Chi Minh City particularly develops with fastest
speed comparing to all other cities of Vietnam and the business of training and teaching life
skills is not an exception. In the current situation, when the average income is getting higher
by year, the concern about children education is deeper, the moral degradation is severe, the
dependence on technology of the youth is worse parents are very interest in life skills courses
for their children.
Moreover, to do this kind of business, there is no need for a huge capital, usually, a

facility located in district 3, with 5 rooms equipped with air conditioners, projectors, TV, and
salary for employees need less than 500 million VND.
On the other hand, those who are already have certificate of quality management
systems (ISO 9001), license of the Education and Training Department having more
chances to enter the market.
2.5.2. Bargaining power of suppliers
Cooperating directly with good suppliers is one of the most decisive factors of
firm’s success. However, the suppliers in education field of business are variety because the
nature of education is not targeting to product but to human, which means that we only need
normal equipment and other supported tools. That is the reason why suppliers in education
business have less power of bargaining.
2.5.3. Bargaining power of buyers
In fact, our buyers are parents. When it comes to their children education, they are
willing to pay even a high price in order to help their child better. Furthermore, our course’s
fee is acceptable to household having relatively good income.

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2.5.4. Threat of substitute products
As learning life skills is a lasting process interacting with community, many parents
choose to enroll their children in sport clubs, music or art clubs or even foreign language
centers. Some think school environment is good enough for children develop and fulfil their
interpersonal skills. In fact, each district has a youth culture house in which many clubs are
operated.
Figure 2.7. Statistic of sport establishment managed by Ho Chi Minh city’s authority
and individual
300

250
200

football field
150

Swimming pool
Training house

100
50
0
2005

2008

2009

2010

2011

(Source: Statistical office in Ho Chi Minh City, statistical Yearbook 2011, page 315)
3. EFE MAXTRIX FOR LIFE SKILLS EDU
Table 3.1. EFE matrix
No.

Key external factors

Weight

Rating Weight
score

OPPORTUNITIES
1

The population scale of Ho chi Minh City steadily
larger by year, from 1997 – 20014, population growth
rate 65,85%

1

0.02

1.80%

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2

3

The population density in district 3 (headquarter
location),
increase
considerably

38,394.00
person/sq.km (2011)
5.52%
Gross domestic product (GDP) of Ho chi minh City in

2

0.11

2

0.05

3

0.18

3

0.22

2

0.06

4

0.51

4

0.49

10.61%

4

0.42

2.32%

2

0.05

Chi Minh City in 2015 is 3.100.000 VND per month, 1.58%
which is 400.000 VND higher than that of 2014

2

0.03

2014 reaches 417.064 billion VND, increase 8.55%
4

Average monthly income

in 2010 in urban are

increases 193% compared with 2002

5

7.20%

The corporation income tax would be 20% after the 1st
January of 2016 due to the decree 218/2013/NĐ-CP.

7

6.15%

Average monthly expense in Education in 2010 in
urban are increases 45.1% compared with 2002

6

2.50%

3.00%

Game and internet addiction: Research on 420 high
school students in HCM in 2014 showed that: 6.89%
online game addiction, 5.2% mild addiction

8

12.80%

The phenomenon of youth suicide gets worse. Over
10,000 people aging from 15 -24, 4.1% of people think

about suicide, 25% sought to end life.

9

12.25%

Moral degradation:
from 2008 to 2011, 968 school age cases violated
the criminal law. Number of cases of 2011 greater
than 2010 by 110 cases.
2012, 5% of 100,000 births given by girls under 18
years old and 15% of those have children before the
age of 20.

THREATS
1

Ho Chi Minh City’s population has a low child
dependence ratio of about 25.3%

2

The minimum salary of the first region including Ho

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Life Skills Edu Co.,LTD


3

High threat of new entrant as the required capital is
low (under 500 million VND)

4

10.76%

4

0.43

11.26%

4

0.45

12.26%

4

0.49

High threat of substitute product: 21 Culture Youth
houses having 220 all kinds of clubs, over 121 football
field, over 83 Swimming pools, over 272 training
houses (2011)

5

Strong competitors:
-

TGM Corporation: has trained 125.000 students
and has 1.000.000 fans.

-

The southern center Youth: large capital,
facilities, long history (19 years)

TOTAL

1

3.51

CONCLUSION
According to the external matrix, the most powerful strength of Life Skills Edu comes
from social problems: Game online addiction, suicide, moral degradation. The reason is Life
Skills Edu company focus on improving those social problems, helping children who are
trapped in those situations have a better living target. Besides, the weakest point of the
company is the competition with two strong rivals who already have made their ground so
long before.
The total weight score is 3.51, much larger than the average score 2.5 and near the
maximum score 4.0. This total weight indicates that the Life Skills Edu is in its overall
external opportunities. In the other word, the current strategy of Life Skills Edu
effectively responds to opportunities as well as threats.
4. INTERNAL ENVIRONMENT ANALYSIS

4.1. Resources
Table 4.1. Tangible resources
Financial resources

Equity: 250 million VND

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Life Skills Edu Co.,LTD


Working capital: 600 million VND
Organizational resources Clear and logical procedures
Physical resources

Office

Product

Diversify

(Course)

Flexible
Theory and practice
Reasonable price

Table 4.2. Intangible resources
Human resources

Manager experienced in field of training
and education
10 people have MSc Psychology degree,
other appropriate professional
Certificates
Good knowledge on Life Skills Edu
Rich life experience
Proactive and creativitve
Good communicate

Innovation resources

Personal growth is the main force
Always innovate teaching method and
technique

Organization culture

Dynamic
People are kind and cooperate

4.2. Core competencies
The core competency of Life Skill Edu is the exuberant content of each course. If TGM
Corporation is famous for their two persuasive speakers whose speeches can reach listeners’
hearts or the southern center Youth has good facilities which allow students to experience a
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Life Skills Edu Co.,LTD

true military life, Life Skills Edu makes a difference by combining in-class teaching and outof-class teaching. In class, students would learn about theory, phenomenon and tell their own
stories. After that, they will have chance to verify what teachers/speakers in practical
activities such as: charity, team building activity… By that ways, the result would be
engraved in each student’s mind. Moreover, with this teaching style, children have chance to
have their own experience by their own way.
Moreover, we offer service after course, which means that children who used to our
students would have psychological counseling in case they have problems.
Furthermore, thanks to the fact that Life Skills Edu located near Tao Dan park, we can
take this point as an advantage when we holding outside activities.
4.3. Threats
The fact that Life Skill Edu is a new comers, has not well known in Ho Chi Minh City
will made the company experience tough financial challenges in the initial stage. Not to
mention that children education is a delicate topic, that is why parents always focus the
reputation and good recommends. Moreover, almost children participating Life Skill Edu’s
courses are motivated by most of their parents’ wishes not by their own will. That will put a
certain pressure on children, or even force them to learn. In addition, if students often suffer
disagreement atmosphere at home or stress at school, the courses cannot guarantee expected
results. Thus, to achieve the best result, there is an urge need for cooperation between school,
family and Life Skills Edu.
Moreover, because Life Skills Edu has outside class, the safety assurance for children is a
vital problem.

4.4. Internal matrix environment

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Table 4.3. IFE matrix

No Key internal factors

Weight

Rating Weighted score

8.60%

3

0.258

13.33%

4

0.533

9.29%

3

0.279

7.30%

3

0.219

14.73%

4

0.589

9.45%

3

0.284

11.25%

4

0.450

12.35%

2

0.247

2.50%

1

0.025

7.70%

2

0.154

attending outside activities is the major 3.50%
concern of parents

1

0.035

STRENGTHS
1

Provide a great working environment:
Personal growth is one of main concerns

2

Combine in-class and out-class teaching

3

Exuberant content of each course, including
charity and team building activities

4

Located near Tao Dan park

5

Offering after course service such as
psychological counseling

6

10 people have MSc Psychology degree,
other appropriate professional

7

Experienced and creativity employees

WEAKNESSES
1

Life Skills Edu is establish in 2015 and is
not well known

2

The teaching method is not perfect

3

Have to cooperate with family and school in
order to give students best results

4

The safety assurance for children when

TOTAL

100%

3.073

CONCLUSION ON INTERNAL MATRIX:
According to the internal matrix analysis, major strength of Life Skills Edu comes from
the interesting, unique content of course, especially the combination life skills learning and
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Life Skills Edu Co.,LTD


charity, team building activities. Moreover, other main force of the company’s strength is its
experience and qualified employees.
On the other hand, the most considerable weak point of Life Skills Edu is its short history
which results in less standing ground for the company.
The overall external matrix weight score is 3.073, which is larger than the average score
2.5. This result points out that despite Life Skills Edu’s obstacles the strategy of the company
corresponds effectively to strengths as well as weakness.
5. COMPETITIVE PROFILE
5.1. Competitor analysis
5.1.1. TGM Corporation
TGM Corporation, which is supposed to be the best skills training center in Ho Chi

Minh city, was founded in 2009 by the two famous speakers Dang Khoa Tran and Dang
Trieu Tran. TGM does business in 2 fields: book publishing and life skills training and both
bring back great success. During the operation, TGM has run over 550 events, trained
125.000 students and published 30 book titles which have attracted 1.100.000 readers and
1.000.000 fans.
 Product:
 Workshops
 Course for students (from 12 – 18 years old)
 Course for adult
 Course for corporation or company
 Course length: under 30 hours
 Course fee: high; from 150.000 - 900.000 VND/ hours
 Location: no. 268 To Hien Thanh street, District 10, Ho Chi Minh City.
 Marketing channel:
Home website
Social networks

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Life Skills Edu Co.,LTD


Clips on Youtube
Direct speeches in schools and universities

5.1.2. The southern center Youth
Established April 10, 1996 with functional organization of training on professional
skills, tutorial content, methods, operational model for staff delegation - Society - Team,
open training courses on foreign languages, information and training documents , organize
the activities of living, recreation, learning and training for those teenagers, advise the

Secretariat of the Central Union of the solution, working model of practical work union
movement and youth sector organizations serving conferences, seminars, and projects of the
Commission, units of the Central Union agencies, ministries, sectors and provinces. Using
this function, so far the Centre has gradually developed many effective programs,
accordingly, attracted young people to participate, contribute to the diversity of activities at
Center.
 Location:
 Headquaters: No. 01, No. 3 street, Binh Tan District, Ho Chi Minh City
 218 Nguyen Dinh Chieu Street, District 3, Ho Chi Minh City.
 Facility: area of nearly 02 ha property including building blocks: block vocational training with 30 classrooms, meeting rooms, substandard; Blocks preschool education
with international standards, 01 multifunctional hall (parquet) capacity of 1,000 seats,
with 01 systems yard grass football pitch Natural grass football pitch 02 artificial pitch
system volleyball, badminton, tennis ... and guest houses 63 well-appointed rooms and
luxurious; cafeteria area accommodating over 250 guests. The entire system is designed
in a spacious campus in conjunction with lawns, gardens and trees made animated nature
landscapes, friendly and approachable
 Product: Life skills summer training sourse “Army semester”
 Target customer: Children from 10 to 18 years old
 Content of course: Practical knowledge, life skills such as: the will of discipline,
overcome difficulties capacity, the spirit of teamwork, survival skills and coping with
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Life Skills Edu Co.,LTD


emergency situations; community communication skills. In addition, the program also
helps them to forge perfect life personality pretty useful life through construction
activities loving family, sharing, responsibility and sense of self-worth, value life.
 Corse duration: 15 days
 Course fee: acceptable (3.800.000/student)

 Marketing channels:
Home website
Multimedia channels: Newspaper, Tivi (VTV3, VTV2, HTV7), Internet

5.2. Competitive profile matrix
Table 5.1. Competitive profile matrix (CPM)

No Critical success factors Weight

The southern TGM
Youth culture
center Youth Coperation
houses
Rating Score Rating Score Rating Score

Marketing & Market share
1

Advertising

0.06

3

0.18

3

0.18

2

0.12

2

Number of channels

0.04

2

0.08

3

0.13

1

0.04

3

Scale of area

0.06

3

0.18

2

0.12

3

0.18

4

Market share

0.12

4

0.48

3

0.36

4

0.36

Product (Courses)
5

Quality

0.07

3

0.22

4

0.29

2

0.14

6

Price competitiveness

0.11

4

0.44

2

0.22

4

0.44

7

Easy application

4

0.18

2

4

0.27
0.24

2

Customer services

0.36
0.12

3

8

0.09
0.06

1

0.06

0.06

4

0.24

4

0.24

3

0.18

0.03

3

0.09

4

0.12

2

0.06

HR & management
9

Experienced employees

10

Operation&
management

Customer

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Life Skills Edu Co.,LTD


11

Wide range

0.05

2

0.10

4

0.19

4

0.2

12

Loyalty

0.09

3

0.27

4

0.36

2

0.18

Facility

13

Equipment

0.12

4

0.48

3

0.36

1

0.12

14

Scale of space

0.03

4

0.12

2

0.06

3

0.09

TOTAL

1.00

3.38

3.16

2.01

The two of three competitors of Life Skills Edu are both strong proved by quite large
number of the total score:
The southern center Youth: 3.38
The TGM corporation: 3.16
However, the southern center Youth has a certain advantage over the TGM
Corporation by 0.22 point. The major advantages of the southern center Youth are
resulted from: large market share, competitive price policy and modern equipment. This
can be explained by the fact that the southern center Youth has a longer history and
stronger financial capacity than the TGM. Besides, the TGM also owns competitive
capacity showed the quite equal score of each factor.
The Youth culture house, though is not as strong as the other, have relatively high
price competitive capacity.
After considerate the CPM results, there are some must – to – do things that Life
Skills Edu should do to compete with or even take over those two rivals:

 Accomplishing the least successful factors of rivals:
Increasing the number of marketing channels
Improving the operation & management
Offering the large space
 Positioning itself by excellent quality of courses
 Making the most of the core advantage: combining in-class teaching and outof-class teaching

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Life Skills Edu Co.,LTD


6. STRATEGY ANALYSIS
6.1. The choice of strategy analysis tool
The Life Skills Edu uses SWOT theory to find out the most suitable strategies for stable
development.
The reasons of this choice are:
1. Life Skils Edu should not apply the BCG theory: as a start-up company, the
company recently, it does not have certain market share or market growth also.
While, BCG matrix mostly takes into account those two strategic parameters.
Moreover, using BCG means that the company has been operating for long
enough to have learned how to be profitable, and will be enjoying scale economies
that gives an advantage
2. SPACE matrix, Grand strategy matrix both are not suitable for a start-up
company.
3. SWOT analysis is a useful technique for a new comer: understanding strengths
and weaknesses, and for identifying both the opportunities open to the company
and the threats it faces. SWOT affords the company the best chance to totally
evaluate the effects that internal and external environment put on Life Skills Edu’s
business.

6.2. SWOT MATRIX
STRENGTHS (S)

HUMAN RESOURCES

WEAKNESS (W)

NEW COMER

1. 10 teachers have MSc 1. Start-up company, have no

Psychology degree, other

market share and loyal

appropriate professional

customers

office 2. The first 2 years must
suffer budget deficit
workers are at least 1 year

2. All

teachers

and

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Life Skills Edu Co.,LTD