the future of armstrong component parts 1

38 Pages·2012·0.3 MB·English

THE FUTURE OF AAARRRMMMSSSTTTRRROOONNNGGG CCCOOOMMMPPPOOONNNEEENNNTTT PPPAAARRRTTTSSS (((VVVIIIEEETTTNNNAAAMMM))) CCCOOO...,,, LLLTTTDDD.
IINN TTHHEE SSPPOOKKEE,, NIPPLE AND RIM MARKETS
IN VIETNAM

EEVVAANNSS LLEEOONNGG (P-EM0126/07)

UUNNIIVVEERRSSIITTII SSAAIINNSS MALAYSIA
GGRRAADDUUAATTEE SSCCHHOOOOLL OOFF BBUUSSIINNEESSSS
MMaasstteerr ooff BBuussiinneessss AAddmmiinniissttrraattiioonn
ARMSTRONG COMPONENT PARTS (VIETNAM) CO., LTD.
IN THE SPOKE, NIPPLE AND RIM MARKETS
IN VIETNAM

EVANS LEONG (P-EM0126/07)

RESEARCH REPORT IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF
MBA(IB)
YEAR 2009
DECLARATION

I hereby declare that the project is based on my original work except for quotations and citations
which have been duly acknowledged. I also declare that it has not been previously or
concurrently submitted for any other degree at USM or any other institutions.

___________________________
(Signature)
NAME: EVANS LEONG
DATE: 12th June 2009
ACKNOWLEDGEMENTS

First of all, I would to express my sincere gratitude to my supervisor, Associate Professor
Dr. Zainal Ariffin Ahmad for his intelligent guidance and helpful advice, which has encouraged
me throughout the process of writing this thesis.
Furthermore, I greatly appreciate the assistance of Professor Hasnah Hj. Haron and Dr.
Sofri Yahya for their effort in helping me getting an attachment to Armstrong Component Parts
(Vietnam) Co., Ltd. for my study.
I would also like to show my upmost appreciation to Mr. Ang Yue Lai (ACPV’s Plant
Manager), Mr. Robert Chew (ACPV’s Production Manager), Ms. N.T.P. Thuy (ACPV’s Finance
and Administration Assistant Manager, Mr. T.H. Trung (ACPV’s Production Superintendent)
and everyone who have made me feel very welcome during my stay in Vietnam. Their
contributions to the study have been invaluable.
Finally, special thanks to my family, friends and course mates for their advices and
support throughout the process.

Evans Leong
June 12, 2009

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TABLE OF CONTENTS
ACKNOWLEDGEMENTS i
TABLE OF CONTENTS ii
LIST OF TABLES vi
LIST OF FIGURES vii
ABSTRAK viii
ABSTRACT ix
EXECUTIVE SUMMARY x
CHAPTER 1 INTRODUCTION 1
1.1 Background of the Case 1
1.2 Problem Statement 3
1.3 Research Questions 3
1.4 Overview of the Chapters 4
CHAPTER 2 LITERATURE REVIEW 5
2.1 Industry Profile 5
2.1.1 Vietnam’s Motorcycle Industry 5
2.1.1.1 The Development of the Vietnamese Motorcycle Industry 5
2.1.1.2 The Motorcycle Industry 8
2.1.1.3 The Product 9
2.1.1.4 The Supporting Industries 9
2.1.1.5 The Government 10
2.1.1.6 The Market 11
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2.1.1.7 The Forecast 13
2.2 Company Profile 14
2.2.1 Origins and Objectives 14
2.2.2 Customers 15
2.2.3 Suppliers 18
2.3 Literature Review 19
2.3.1 Strategic Management 19
2.3.2 Generic Competitive Strategies 21
2.4 Summary 23
CHAPTER 3 COUNTRY PROFILE 24
CHAPTER 4 METHODOLOGY 29
4.1 Research Approach 29
4.1.1 Qualitative Approach 29
4.2 Research Strategy 29
4.2.1 Case Method 29
4.3 Data Collection 30
4.4 Case Analysis 35
4.5 Environmental Analysis (PESTLE Analysis) 38
4.6 Industry Analysis (Porter’s Five Forces Model) 40
4.7 SWOT Analysis/ TOWS Matrix 43
4.8 Summary 45
CHAPTER 5 CASE WRITE-UP 47
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CHAPTER 6 CASE ANALYSIS 78
6.1 Vietnam’s Macro Environment 80
6.1.1 Political and Legal Environment 80
6.1.2 Economic Environment 85
6.1.3 Socio-cultural Environment 87
6.1.4 Technological Environment 90
6.1.5 Environmental 90
6.1.6 PESTLE Summary 91
6.2 Vietnam’s Motorcycle Industry Environment 94
6.2.1 ACPV’s Competitiveness in the Industry 94
6.2.2.1 Threats of New Entrants 94
6.2.2.2 Threats of Substitute Products 96
6.2.2.3 Bargaining Power of Buyers 96
6.2.2.4 Bargaining Power of Suppliers 98
6.2.2.5 Rivalry among Competitors 98
6.3 The Internal Organization 103
6.3.1 ACPV’s Current Operations 103
6.3.2 ACPV’s SWOT Analysis 108
6.4 TOWS Matrix 115
6.5 Summary 121

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CHAPTER 7 CONCLUSION 123
7.1 Recapitulation of the Case 123
7.2 Recommendation 124
7.1 Conclusion 130
REFERENCES
APPENDIX (ES)

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LIST OF TABLES
Table 1: Foreign-invested Motorcycle Manufacturers in Vietnam 6
Table 2: The Market Share of Motorcycle Manufacturers in Vietnam 7
Table 3: Motorcycles Revenue, Export and Import Values in Vietnam 9
Table 4: Statistics of Motorcycles and Automobiles in Vietnam 12
Table 5: Production Capability Forecast of Manuafacturers in Vietnam 13
Table 6: Minimum Monthly Wage in Vietnam 53
Table 7: Profit and Loss Account Year Ended December 31, 2003-2007 73
Table 8: Balance Sheet Year Ended December 31, 2003-2007 74
Table 9: Steel Rim and Aluminium Rim Market . 102
Table 10: Key Financial Ratios of ACPV 106
Table 11: Summary of ACPV’s SWOT 114

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LIST OF FIGURES
Figure 1. Outline of the framework and tools used to solve the research questions. 38
Figure 2. Porter's five forces model. 41
Figure 3. SWOT Analysis. 43
Figure 4. TOWS Matrix. 45
Figure 5. The market share trend of motorcycle manufacturers in Vietnam. 54
Figure 6. Motorcycle registration in Vietnam. 57
Figure 7. Vietnamese motorcycle industry growth rate trend. 58
Figure 8. Governance indicators of Vietnam in 1998, 2003, 2007 82
Figure 9. Governance indicators of selected countries in 2007 83
Figure 10. Market share of ACPV vis-a-vis the competitors in the steel rim market. 100
Figure 11. Indentifying the key components of a single-business company’s strategy. 103

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