Một số giải pháp về chiến lược quản trị nguồn nhân lực nhằm khuyến khích và tạo động lực cho người lao động tại công ty VIGLACERA tiên sơn

LUẬN VĂN THẠC SĨ

Một số giải pháp về chiến lược Quản trị nguồn nhân lực nhằm khuyến
khích và tạo động lực cho người lao động tại công ty VIGLACERA Tiên
Sơn
THESIS MBA

SOLUTIONS IN HUMAN RESOURCE MANAGEMENT STRATEGY
TO ENCOURAGE AND MOTIVATE WORKERS AT VIGLACERA
TIEN SON JOINT STOCK COMPANY


TABLE OF CONTENT
ACKNOWLEDGEMENT...................................................................................................4
LIST OF DIAGRAMS.........................................................................................................5
LIST OF TABLES................................................................................................................5
LIST OF CHARTS...............................................................................................................5
OPENING.............................................................................................................................6
CHAPTER I: THEORETIC BACKGROUND.................................................................9
1.1.

Definitions of strategy and strategic administration (1) ......................................9
1.1.1. Strategy...........................................................................................................9
1.1.2. Strategic administration..................................................................................9
1.1.3. Strategy system of a firm................................................................................9
1.1.4. Strategy planning process (3).......................................................................10
1.1.5. Tools to support strategy planning...............................................................10

1.2.

Definitions of human resource management and worker motivation................11

1.2.1. Human resource management......................................................................11
1.2.2. Worker motivation (2)..................................................................................11

1.3.

Motivation theories based on satisfaction of need (2).......................................11
1.3.1. Maslow hierarchy of needs...........................................................................12
1.3.2. Two-factor-theory of Herzberg....................................................................14
1.3.3. Need theory of Atkinson and McClelland....................................................15

CHAPTER 2: ACTUAL SITUATION ON BUSINESS ACTIVITY OF VIGLACERA
TIEN SON JOINT STOCK COMPANY AND ANALYSIS OF HUMAN RESOURCE
MANAGEMENT AT THE FIRM....................................................................................18
2.1.

Introduction of Tien Son Viglacera Joint Stock Company................................18
2.1.1. General information......................................................................................18
2.1.2. Summary of foundation and development process......................................19
2.1.3. Management structure of the company

..................................................20

2.1.4. Personnel structure ......................................................................................21
2.2.

Actual situation on business activity of Viglacera Tien Son Joint Stock

Company........................................................................................................................21
2.2.1. The main product and service.......................................................................21

2


2.2.2. Consumption market....................................................................................22
2.2.3. Distribution system.......................................................................................22
2.2.4. Technology...................................................................................................22
2.2.5. Business result of the company in three recent years...................................24
2.3.

Business strategies of Viglacera Tien Son Joint Stock Company......................25
2.3.1. The main business strategies........................................................................25
2.3.2. Specific functional strategies........................................................................25

2.4.

Analysis of human resource management at the firm based on two-factor-

model of Herzberg.........................................................................................................27
2.4.1. Hygiene factors ............................................................................................27
2.4.2. Motivation factors........................................................................................37
CHAPTER 3: SOLUTIONS TO ENCOURAGE AND MOTIVATE WORKERS AT
VIGLACERA TIEN SON JOINT STOCK COMPANY................................................40
3.1

Summary of encouragement and motivation analysis at Viglacera Tien Son

Joint Stock Company.....................................................................................................40
3.2.

Solutions to worker encouragement and motivation..........................................42

3.2.1. Group of solutions (recommendation)...............................................................42
3.2.2. Solutions in human resources management to improve worker encouragement
and motivation task (based on analysis at 3.1 section)..................................................43
3.2.3. Solution deployment.....................................................................................46
3.2.4. Solution deploying examination and evaluation..........................................47
3.3.

Conclusion and suggestion.....................................................................................47
3.3.1. Conclusion.........................................................................................................47
3.3.2. Limitation of research........................................................................................48
3.3.3. Suggestion to research direction in the future....................................................48

REFERENCE.....................................................................................................................50
QUESTIONNAIRE CARD APPENDIX..........................................................................51

3


ACKNOWLEDGEMENT

4


LIST OF DIAGRAMS
Diagram 1.1: Strategy planning process..........................................................................10
Diagram 1.2: Need satisfying model.................................................................................12
Diagram 1.3: Need pyramic model...................................................................................13
Diagram 2.1: Management structure ..............................................................................20

LIST OF TABLES
Table 1.1: Two–factor-model of Herberg.........................................................................14
Table 1.2: Summary of theories and solutions (4)...........................................................16
Table 2.1: Personnel structure..........................................................................................21
Table 2.2: Revenue structure.............................................................................................22
Table 2.3: Business result of the company in three recent years...................................24
Table 3.1: Summary of worker encouragement and motivation analysis.....................40
Table 3.2: Solutions to better worker encouragement and motivation task.................42
Table 3.3: Solution deployment plan................................................................................47

LIST OF CHARTS
Chart 2.1: Assess satisfaction to salary factor.................................................................29
Chart 2.2: Assess satisfaction to bonus regime................................................................31
Chart 2.3: Assess satisfaction to allowance factor...........................................................32
Chart 2.4: Assess satisfaction to working condition regime...........................................33
Chart 2.5: Assess satisfaction to colleague relationship factor.......................................34
Chart 2.6: Assess satisfaction to supervision and control factors..................................36
Chart 2.7: Assess satisfaction to motivation factors........................................................39

5


OPENING
1.

Rationale
Along with nowadays globalization and information boom, economic organizations
are facing big opportunity to develop and shine. Besides, they have to face difficult
from every direction and fierce competition on every aspect. How does firm exist,
develop and complete its ambition? The answer is that, first, the firm needs to

gather and uphold its resources to gain competitive advantage on basis of core
capacity. One of these important resources is human resource. Above all, corporate
governance means human resources management. It is absolutely important to use
workforce effectively to raise labour productivity, decrease cost and increase
effectiveness of organization.
One of things mattering most to managers is how to make staffs to work selfconsciously, enthusiastically and create more and more value added for
organization and community. Nowadays, there is a trend of investing into Vietnam
established by foreign firms which have big financial potential and strong
managing experience, causing phenomenon called “brain drain”. What are solutions
for that? What must be done to employ and keep good staffs; encourage their
contribution?
Awareness of the significance of giving answers to above questions made our
group select topic “Solutions in human resource management strategy to encourage
and motivate workers at Viglacera Tien Son Joint Stock Company”.

2.

Research objectives
In order to solve the problem identified above, the research focuses on the
following targets:
• Collect theories related to worker encouragement and motivation in human
resource management.
• Analyze internal and external business environment to define strength,
weakness, opportunity and threat to Viglacera Tien Son Joint Stock Company.
• Provide solutions to uphold, adjust, change and supplement factors related to
employee encouragement and motivation in order to maximise effectiveness in
human resource management and raise effectiveness in operation of the firm.

6

3.

Scope of research
Research focuses on analyzing factors related to human resource management in
order to encourage and motivate employee at Viglacera Tien Son Joint Stock
Company. Research period includes present period and some periods in 2006,
2007, 2008 and the first 9 months of 2009 when data were recorded.

4.

Research methods

4.1.

Data collecting methods

4.1.1. Data collecting through statistical figures
Used to collect initial data, including statistical figures about the company,
organization model, the amount of workers, achievements in business activities;
information of salary, bonus, social allowances, working conditions, responsibility
limit, attraction of job, acknowledgment and promotion chance in the company to
gain general view of matters related to research topic.
4.1.2. Data collecting through questionnaire table
Relied on data need to be collected, questionnaire table are made to perform the
targets of research through relevant questions. The process is to choose 100
workers randomly at different positions in the firm, after then, to interview and
solve collected data with Excel program. Data collection method through
questionaire table is a quite difficult method taking a lot of time.
4.1.3. Data collecting through collecting ideas of experts

When examining regulations and policies of the company, evaluation is
implemented through collecting ideas of experts.
4.2.

Data analyzing methods
To complete this research, we applied strategic administration knowledge, two
factor theories of Frederick Herzberg and analysed real situation involved in
employee encouragement and motivation in Viglacera Tien Son Joint Stock
Company. These data collecting methods allow our group to study the company
generally, find strong points and weak points of the company, and assess
satisfaction of workers through two factor model of Herzberg. After that, the group
can give reasonable solutions to human resource administration in order to
encourage and motivate workers effectively.

7


5.

Structure of project report
Chapter I: Theoretical background
This chapter synthetises theoretical background related to strategic management in
general and human resource management, in particular, collect theories involved in
worker encouragement and motivation.
Chapter II: Actual situation on business activity of Viglacera Tien Son Joint
Stock Company and analysis of human resource management at the firm
This chapter focuses on analyzing real business situation of Viglacera Tien Son
Joint Stock Company. That is management structure, product and service,
market...of the firm. After that, analyze human resource management of the firm
through two factor model of Frederick Herzberg that includes hygiene factors such

as working regime, salary…and motivation factors such as responsibility for,
attraction of job…
Chapter III: Solutions to encourage and motivate employee at Viglacera Joint
Stock Company
In this chapter, our group draws a summary of employee encouragement and
motivation analysis through SWOT matrix. Base on that, gives solutions to better
employee encouragement and motivation at Viglacera Tien Son Joint Stock
Company.

8


CHAPTER I: THEORETIC BACKGROUND
1.1.

Definitions of strategy and strategic administration (1)

1.1.1. Strategy
Strategy is long - term development orientation of an organization to gain
competitive advantage through forming its resources in changeable environment to
meet the need of market and satisfy the expectation of partners related.
1.1.2. Strategic administration
Strategic administration is a set of administrative decisions and activities to define
long – term performance of a firm. Strategic administration includes continuous
activities such as examining internal as well as external environment; planning
strategies; implementing strategies, assessing and controlling them.
1.1.3. Strategy system of a firm
1.1.3.1. Functional level strategies
They are strategies orienting to improve effectiveness in basic activities within
range of a firm such as production, marketing, material management, research and

development (R&D) and human resource management.
1.1.3.2. Business level strategies
They are the total of commitments and actions to gain competitive advantage by
exploiting core capacities of firm in itself, market and specific products.
1.1.3.3. Corporate level strategies
It means to define what firm must do to gain competitive advantage through
choosing, managing a group of different and competitive business activities in
some of industries and markets.
1.1.3.4. Global strategies
They are strategies through which firm sells its products or services outside its
domestic market.

9


1.1.4. Strategy planning process (3)
Diagram 1.1: Strategy planning process

Strategic function and target of a firm (a)

Internal analysis (S, W)
(b)

Business environment
analysis (O, T) (b)

Choose strategies (c)

Corporate level strategies (d)

Business level and functional level
strategies (e)
Deploy strategy implement (f)

Examine and assess implementing result
(g)

Feedback

1.1.5. Tools to support strategy planning
SWOT matrix is a useful method which generalizes and sums up results of internal
as well as external analysis. External analysis is to find opportunity and threat the
firm has to face from outside environment. Internal analysis is to find strength and
weakness inside an organization (1).

10


1.2.

Definitions of human resource management and worker motivation

1.2.1. Human resource management
Human resource management is strategic and coherent approach to managing
human resource of an organization. It means to employ people, develop their
abilities, utilize, maintain and compensate their services in line with the job and
organizational requirement.
1.2.2. Worker motivation (2)
1.2.2.1. Definition
Motivation is a psychological process being result of purposeful and oriented

impact. In progress of corporate governance, motivation is firm’s oriented impact in
aim of encouraging staffs to develop their achievement and helping them finish job
effectively.
1.2.2.2. Driving force
Driving force is contribution to and throwing himself in job of a man. In some
cases, when urged, a man can contribute whole of his strength and intelligence to
job.
1.2.2.3. Satisfaction
Satisfaction is expression of a man when completing job.
Therefore, driving force is an unclear matter and difficult to define by experimental
research. In contrast, satisfaction is easy to recognize by experimental research.
Staffs only have driving force when they are given motivation.
1.3.

Motivation theories based on satisfaction of need (2)
Theories express that employee encouragement and motivation must start from
desire to satisfy need which is being lack in human life. Sense of lack creates an
uncomfortable stage and in order to fill it up, some activities have to be done to
meet the need.

11


Diagram 1.2: Need satisfying model
NEED
(Sense of lack)

URGE
(Pressure or attempt)

SATISFACTION
(Decrease in pressure
and satisfy initial need)

ACTION
(Direct to target)

1.3.1. Maslow hierarchy of needs
Theory of Maslow focuses on individual. According to Abraham Maslow, each
person has a set of diversified needs sorted

into 5 ascending important levels,

including: physiological needs; security needs; love and belonging needs; esteem
needs; and self-actualisation needs. Needs of Maslow are controlled by 4 natures:
•

Needs sorted lower have to be satisfied first.

•

The most striking need in a specific moment will be the largest motivation to

complete objectives.
•

When a need is satisfied, it is no longer a motivative factor; a different need

will grow to replace it. Thus, people always try to satisfy some need every moment.
•

System of needs is much diversified. There are always a few different needs

having impact on behavior of men every moment. It is necessary to define and
create chance to satisfy striking needs in the best ways, in order to motivate
workers.

12


Diagram 1.3: Need pyramic model

SelfActualization
Esteem need
Love and belonging
Security need
Physiological needs



Physiological needs: needs for eating, drinking, working, sleeping, resting,

accommodation … They are the most basic needs sorted at the lowest rank in
Maslow hierarchy of needs. They need to be satisfied first


Security needs: needs for security of body and stability in life as well as

avoiding hurts, threats and diseases. After material needs, these needs at higher
level must be satisfied. Many people express their security needs through desire for

a stable job, good health allowance, not being unemployed and receiving pension
when retirement…


Love and belonging needs: needs for friendship, couple love, relatives and

family affection, needs for integration into society. They are sorted above material
needs and security needs, equivalent to the third level in Maslow hierarchy of
needs.


Esteem needs: needs for self-respect, sense of success and recognition of other

people. In order to meet the need, men find a lot of ways to succeed; promote and
gain prestige, status to affirm their own capacity and value.


Self-actualisation needs: needs for development, self-upholding of personal

potentiality. They are sorted at the highest rank in Maslow hierarchy of needs. Men

13


who already reaching these needs can master themselves and have ability to control
others. Owning initiative, high self-awareness and ability to solve problem are
some their strengths.
Maslow doesn’t consider his need system as a fixed, inflexible order applying for
everyone. He reckoned that, at a specific moment in each person life, urgent needs
grow and men are urged to find a way to satisfy them. Intensity of a specific need

depends on level at that it and lower needs are satisfied. Thus, model of Maslow is
a dynamic and inconstant improving process. Besides, material needs are the most
basic needs having to be met first.
1.3.2. Two-factor-theory of Herzberg
Frederick Herzberg considers worker motivation from job aspect, studies
relationship between satisfaction in job and working ability. Herzberg demands
ones asked to describe positive and negative feelings they experienced in job. He
recognizes that appearance of each specific characteristic such as responsibility
factor may increase satisfaction in job, if lacking these factors dissatisaction will be
raised. In contrast, if lacking some characteristic such as instability of job may also
create dissatisfaction. However, this does not mean that job having high security
level is the cause of satisfaction. From result of this research, Herzberg concludes
that both two kinds of states that workers experience make up satisfaction and
dissatisfaction in job. So, his model is called as two factor model. Factors
connected to positive feelings are called as motivation factors and factors connected
to negative feelings are called as hygiene factors.
Table 1.1: Two–factor-model of Herberg
Motivation factors

Hygiene factors

Causes of satisfaction in job

Causes of dissatisfaction in job

-

Attraction of job in itself.

-

-

Personal responsibility.

-

-

Recognition of others.

company.

-

Potentiality and promotion chance.

-

Relationship with colleagues.

-

Salary and social allowances

14

Working conditions.
Managing regulations and policies of

•

Motivation factors: factors inside job, creating interest and satisfaction, include

challenge and attraction of job in itself, personal responsibility, recognition of
others, promotion and potentiality of job. When they appear in a job together they
will motivate workers at a high level, excite them to gain higher achievement
unless matters causing dissatisfaction appear.


Hygiene factors: factors outside job, setting up limit at that job is done, include

working conditions, regulations and policies of company, managing quality,
relationship between colleagues, salary, status, security of job. Herzberg shows that
although maintaining outside job factors in a positive state is necessary for
reasonable satisfaction of job, their presence do not increase satisfaction level in job
absolutely.
Application of two factor model into management is very important. However,
managers must apply both two factor groups comprehensively.
1.3.3. Need theory of Atkinson and McClelland
Atkinson and MeClelland state that everyone has needs for success, power and
integration.
People having need for success like situations at moderate risk level because in that
circumstance, they can be aware of their own contribution clearly.
People having high need for power like situations in which they can gain and
maintain control over facilities, tools to impact others.
People having need for integration into society desire strongly upholding of
friendly and close relationship with others and receiving affection of others.

15


Table 1.2: Summary of theories and solutions (4)

According to

Major solutions to meet

Psychological:
Eat, drink, reside, rest,

the need

F. Herzberg

to Maslow

According to Atkison &
McClelland

Needs
According

Forms of need

Law of minimum wage,
+

-

-

unemployment pension,
health and accommodation.

Security and trust in
future:

Buy insurance, find stable

Treat to body and

job having high retirement

mentality from

+

-

-

pension in the future, law

environment around,

of allowances and injury

satisfaction of body

benefit.

needs in the future
Hygiene factor

Build social infrastructure
-

-

+

-

-

+

-

-

+

-

-

+

Co-ordination action;

+

-

-

Participation;

+

+

-

Attachment and

+

-

-

+

-

-

Policies of company;
Working conditions;
Wage;
Supervise work
Society

support
Esteem
Self-esteem;
Personal achievement;

16

and managing strategies.


Success

Justify work; attract worker
to build target and give
decision; declare their right
and authority; ensure staff
training; improve
professional competence
and knowledge.
+

-

-

+

-

-

+

-

+

+

+

+

Growth in job and
promotion in fame
ladder

+

-

-

+

-

+

Growth in personality;

-

+

+

Need of power;

-

-

+

Promotion

-

-

-

Express potential
ability;

17


CHAPTER 2: ACTUAL SITUATION ON BUSINESS ACTIVITY OF VIGLACERA
TIEN SON JOINT STOCK COMPANY AND ANALYSIS OF HUMAN
RESOURCE MANAGEMENT AT THE FIRM
2.1.

Introduction of Tien Son Viglacera Joint Stock Company

2.1.1. General information
Name : Viglacera Tien Son Joint Stock Company
Trading name: Viglacera Tien Son Joint Stock Company
Head office:
-

Tien Son industrial park, Tien Du district, Bac Ninh province

-

Mobile: 0241 3839 390

Fax: 0241 3838917

Middle region branch: the branch in Đa Nang city
-

Adress: 353 Đien Bien Phu, Thanh Khe district, Đa Nang city

-

Mobile: 0511 3659445

Fax: 0511 3659 445

Southern branch: the branch in Ho Chi Minh City
-

Address: 156 Nguyen Hong Đao, 14 precinct, Tan Binh district, Ho Chi Minh

city
-

Mobile: 08 38490289

Fax: 08 38491630

Business fields
-

Manufacture, sale Granite product, Ceramic and other construction materials;

-

Complete and decorate civil industrial projects;

-

Give advice, design, hand over construction material manufacturing technology

-

Exploit and process minerals

-

Offer goods transportation service by car

-

Deal in construction material

-

Deal in machines, equipments spare replacement parts.

Charter equity: 45.000.000.000 dong (round forty five thousand billion dong)

18


2.1.2. Summary of foundation and development process
Found under the decision number 1866/QĐ-BXD on November, 2nd, 2001, Tien
Son Granite Company is a member unit of Construction Glass and Ceramic
(Viglacera) Head of Companies.
On July, 6th, 2003, Tien Son Granite Company merged into Thang Long
Enamelled Tile Company and changed name as Thang Long - Viglacera Granite

Company member of Construction Glass and Ceramic Head of Companies.
On January, 19th, 2004, Thang Long - Viglacera Granite Company moved its head
office from place in Phuc Thang commune, Me Linh district, Vinh Phuc province
to one in Tien Son industrial park, Tien Du district, Bac Ninh province.
On November, 23rd, 2005, Thang Long - Viglacera Granite Company changed its
name again into Tien Son – Viglacera Granite Company.
On January, 23rd, 2007, Tien Son – Viglacera Granite Company changed its name
again into Viglacera Tien Son Granite Company.
On October, 19th, 2007, Viglacera Tien Son Granite Company, unit of
Construction Glass and Ceramic (Viglacera) Head of Companies changed into
Viglacera Tien Son Joint Stock Company under the decision number 1309/QĐBXD on October, 19th, 2007 by Minister of Ministry of Construction.
On November, 1st, 2007, Viglacera Tien Son Joint Stock Company officially came
out in the form of a joint stock company according to business registration
certificate of joint stock company number 21.03.000297 issued by Bac Ninh
Planning and Investment Department.

19


2.1.3. Management structure of the company
Diagram 2.1: Management structure

(Source: Viglacera Tien Son Joint Stock Company)

20


2.1.4. Personnel structure
Up to the moment of 01/10/2009, the total number of workers in the company is
529 persons, includes:

Table 2.1: Personnel structure
Number
1

Qualificaiton

(Source: Viglacera Tien Son Joint Stock Company)
Amount (person)
Ratio(%)

University and post
university

8,1

2

College

46

8,7

3

Intermediate

325

61,4

4

Other

115

21,7

529

100

Total
2.2.

43

Actual situation on business activity of Viglacera Tien Son Joint Stock
Company

2.2.1. The main product and service
The main product of the company is granite. This product has compression
resistance intensity double than that of ceramic tile, nearly zero absorbency level. It
is formed from homogeneous materials. The product is manufactured with
synchronous and modern technology supplied by Sacmi – Italia company in a lot of
kinds, colors and sizes.
The product is used mainly in modern projects having high demand of aestheticism
and durability such as private houses, hospitals, schools, shopping malls, office
buildings, airports, hotels...

Made-to-order product has size (mm) of 400 x 400, 500 x 500, 600 x 600
manufactured on Italia production line number 1 with capacity of 3,0 million
m2/year.
By putting line 2 into run in March/2009, a new product was manufactured in size
of 800 x800. Strong points of this product line are large size, diversified model,
international quality with nearly zero absorbency level; super-shine, anti dust stick,

21


anti abrasion surface. This product line is suitable to high-class, luxurious, large
projects.
2.2.2. Consumption market
Product of the company is consumed all over the country and exported. In domestic
market, distribution of product is carried out through nationwide system of agents.
In foreign market, the company distributes through big trade organizations.
Table 2.2: Revenue structure
Market

2008
Revenue
(million dong)

The first 6 months of 2009
Revenue

Density (%)

Density (%)
(million dong)

Domestic

186.846

71,5

118.578

92,8

Foreign

74.428

28,5

9.146

7,2

Total

261.274

100

127.724

100

(Source: Viglacera Tien Son Joint Stock Company )
2.2.3. Distribution system
In domestic market, the company distributes through nationwide system of 41
agents. In northern, the company sells product directly through 30 agents. In middle
region, the branch in Đa Nang city takes charge of dealing with 3 agents in Hue
city, Quang Tri province and Quang Binh province; in southern, the branch in Ho
Chi Minh city distributes to 8 agents in 8 different provinces. Sale contracts are
mostly signed with agents, except for a few big projects signed directly with the
company on clients’ demand. This distribution system takes full advantage of
strong points of agents such as good financial ability, wide retail system, thorough
knowledge of market and fast grasp of its demand and change; besides, decrease
managing and debt collecting cost.
In foreign market such as Taiwan, Turkey, France, and Japan..., the company
distributes through big trade distributors.
2.2.4. Technology
Presently, the company has 2 production lines, line 1 which was invested in 2001,
is a automatic, modern line supplied by SACMI company (Italia) with design
capacity of 3 million m2/year; manufacture product in size of 300mmx300mm. In

22


recent years, because of consumer passion for tile product in big size, the company
has invested, raised manufacturing capacity, made products in diversified size such
as: 500mmx500mm, 600mmx600mm
To meet the demand of market, in the beginning of 2009 the company has
expanded manufacturing for the second period with capacity of 1,5 million
m2/year, focused on products having big size from 600 x 600, 800 x 800 to 1000 x
1000. Especially, squeezer of the company able to work with the maximum amount

of 6.200 ton, supplied by Sacmi-Italia, is the largest squeezer in area and all over
the world, allows squeezing product having big size of 1.200 x 1.200. Strategy of
the company when expanding production for the second period concentrates on
grinded and polished product, which using nano technology; having super-shine,
anti dust stick surface, nearly zero absorbency level, big size, European quality. It is
mostly exported or used in domestic, high-class projects. With constant attempt, in
5/2009, from this line the company launched the first product batch in big size of
800 x 800 into market and a memorandum of understanding was signed with
Taiwanese partner for 11,2 billion dong order in 2009 for this product. With this
contract, the company is considered as the first domestic manufacturer in northern
region successful in manufacturing granite in big size of 800x800.

23


2.2.5. Business result of the company in three recent years
Table 2.3: Business result of the company in three recent years
Target
Production output
(m2)
Revenue (million
dong)
Profit (billion dong)
The number of
workers (person)
Average income
(million dong)
Pay budget (billion
dong)

The first 9

2006

2007

2008

1.516.000

2.025.000

2.459.000

2.214.400

148.671

218.000

265.000

230.618

6,8

9,1

8,0

11,055

375

350

430

529

1,7

2,723

3,054

3,266

4,7

9,5

16,4

-

months of 2009

(Source: Viglacera Tien Son Joint Stock Company)
Production output: The company maintains annual growth of output level at 20%

more than in former year. However, the output of 2008 only gained 82% of
designed capacity. In 2009, a new line with 1,5 million m2/ year capacity has been
put into operation, raised capacity to 4,5 million m2/year, production output is
expected at 70% level of design capacity
Product quality: Product in A1 quality occupies 85% of output, the rest 15% of
output belong to product of A2 quality.
Profit in the first 9 months of 2009: in spite of the world economy crisis, the
company makes profit of 11.055 million dong on charter capital of 45.000 million
dong, a quite high ratio in this industry. This achievement is the result of orienting
consumer to grinded and polished product in big size, which having great value and
being advantage of the company. Workers’ income is relatively stable.

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2.3.

Business strategies of Viglacera Tien Son Joint Stock Company

2.3.1. The main business strategies
2.3.1.1. Product differentiation strategy
One of the main business strategies the firm pursues from 2010 to 2015 is product
differentiation strategy. Viglacera Tien Son Joint Stock Company is presently the
only domestic manufacturer of Granite product in big size of 800 x 800. In the past,
all of Granite product in this size must be imported. This kind of product,
manufactured by Viglacera Tien Son Company, satisfies absolutely international
standards with nearly zero absorbency level; super-shine, anti dust stick, anti
abrasion surface. In the recent future, the firm will put on test manufacturing
Granite product in big size of 1000 x 1000 and 1200 x 1200, building Tien Son
Granite brand as a famous strong and innovative brand in domestic as well as

foreign market. The firm only manufactures high - class granite product, in top of
style to meet higher and higher need of domestic as well as foreign consumer,
under motto “manufacture product to export and replace imported product”.
2.3.1.2. Cost leadership strategy
Cost leadership strategy is support and supplement of product differentiation
strategy. Now, the firm is the only manufacturer of Granite product in big size of
800 x 800 up to, but in the future, this advantage may disappear when other
competitors change their technology, manufacture product in big size to catch up
with the firm. Therefore, from the beginning, Viglacera Tien Son Company applied
cost leadership strategy for strategic products of the firm, with aim of preventing
competitors from joining this market segment, protecting competitive advantage.
Price of this kind of product is lower than imported products in order to replace
imported products. The firm applied standardized process minimizing failure rate;
reduced financial cost unnecessary; reduced transportation cost through
synchronous distribution system from seller to buyer.
2.3.2. Specific functional strategies
2.3.2.1. Quality
Define quality as vital factor of the company, product made must meet international
standards as well as the demand of high class projects in the future.

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