Corporate strategy for Vietnam Textile and Garment Corporation

Date of Publication

1999

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Thesis Adviser

Nick Fontanilla

Abstract/Summary

Vietnam Textile and Garment Corporation (VINATEX) is one of the big Corporations of Ministry of Industries in Vietnam. Together with Crude Oil Corporation, Vietnam Textile & Garment Corporation has been contributing more and more its obligation to the government budget in recent years. Vietnam Textile-Garment Corporation is a leading Corporation of Vietnam Textile & Garment Industry in terms of production and market size. It is now reflecting the key role of its operation in the economic development of the country.

VIINATEX is a State-owned corporation, acting in area of manufacture, trade, planning, training, investment, capital maintenance and development etc of the Textile & Garment Industry in the whole country. In the scope of this study, we will focus on the manufacturing and trading of Textile & Garment products because this is major activity of the corporation.

The methodology of the study is based on the theories and concepts of strategic management, combining with the practice of the corporation in order to provide the appropriate strategies and policies for VINATEX in the current circumstance and in the future of its business.

Because new establishment of VINATEX since 1995, the related data are gathered from 1995 up to now, and the projection based on the practice of Vietnam Textile & Garment Industry as well as the global integration process in the World.

Opening and integration in to the World community is an indispensable trend of every developing and developed country. Joining the ASEAN, participating in the AFTA and making ready for joining the WTO Vietnam is getting many new opportunities for rapid growth, but is also makes much new challenges for every economic sector, including Vietnam Textile and Garment Corporation. It needs to mobilize all resources for investment in transfer of technology, shifting product structure, and raising quality of the products. Above all, that is appropriate strategy for its development. In such a way, planned targets can be met.

A strategic vision provides a big picture perspective of who we are, what we do, and where we are headed. It leaves no doubt about the corporations long term direction and where management in tends to take the corporation. A well-conceived strategic vision is prerequisite to effective strategic leadership. The board of management has been drawing a future picture of corporation as a Textile & Garment product supplier at the same level of other countries in ASEAN and getting a good position as a strongest corporation of the Vietnam industry.

As a big State-owned Corporation, the management clearly defined the mission of VINATEX as leading role in Textile and Garment Industry, its obligation to the development of society and economy of the country. This is also a fundamental for creating objectives and performance targets.

The management of VINATEX also creates several major strategies to exploit the favorable internal and external factors that help corporation to achieve desired results. This is the third task of strategic management. It provide a good way how to achieve objectives and hot to pursue the corporations mission.

Based on the present strategies of the VINATEX, it reflects a sizable and sustainable competitive advantage. Therefore, the corporations strategies are powerful and aggressive to direct challenge to competitors market positions. The primary role of functional strategies is to support the VINATEXs overall business strategy and competitive approach.

For the proposed strategies, aside from the supplement to key functional strategies which concentrate on technology strategy, marketing strategy, finance strategy, and human resources strategy, the corporation has to implement other strategies for handling daily operating tasks of head office and member enterprises with the role of management strategy and information strategy.

The implementation of VINATEXs strategy is to specify the tasks of each department together with the appropriate policies in order to achieve its goals. The implementation process based on actual experience, changing conditions, new ideas, and new opportunities. VINATEX was creating appropriate policies, which is dealing with current situation of the corporation such as materials, human resource, investment and information system.

Pursuing a low-cost leadership strategy, it reflects the expectation of the management to be the industrys overall low cost provider. The aim is to open up a sustainable cost advantage over competitors for gaining market share at the corporation expenses and earning a higher profit margin in the Textile & Garment Industry.

However, the Corporation should have intensive investment for all textile & garment enterprises in order to increase the capacities of production as well as quality of its product. To mobilize all financial resources for modernization of equipment, implementing marketing mix, promoting R&D activities, developing the human resource, increasing the role of information strategy in the management process, and encouraging to produce material in the local resources as well as environmental preservation.

Survive and development is basic targets of every business, and doing best business is not simple work. This study shall attempt to provide answers and even give a cross section analysis of the characteristics of the Vietnam Textile Garment Corporation in the process of integration, competition in to the World community and business environment among the players of business game.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE0153

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

108 leaves ; 28 cm.

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