Nguyen Thi Ngoc Linh-Nana-F02B - SBE Ass1 Final

Nguyen Thi Ngoc Linh-Nana
F02B
Small Business Enterprise
Table of Contents
Table of Contents...........................................................................................................................1 Executive Summary.....................................................................................................................17 Introduction..................................................................................................................................18 Vietnam tourism develops faster and faster as care of government in improving this no smoke industry. Vietnamese people proud of beautiful coast stretch out over 3.260 km with famous landscape, sights; it sure that Vietnam will become a sea travel centre in the world as well as a sea travel heaven to compete with other countries. The Vietnam balance of travel concentrates on in 2 big cities: Hanoi and Ho Chi Minh City. These are 2 gateways and also 2 main client markets that have big effect on development situation at neighboring areas and other tour routes in the country. (Tuanxipo, 2009) ..................................................................18 The report will investigate to determine how this part of industry comes to Viet Nam, analyses the performance of PYS Travel Company and they might forecast its future. Furthermore, this report helps PYS Travel business to propose improvement to solve the current problem of the business or suggest business strategy of the business. .............................................................19 This report is carried out base on the information from website of pystravel.com, interview, the experience and the research of the writer...........................................................................19 The limitation of this report is lacking of time. The writer may need more time to research the real situation of Vietnam economy and fashion industry in Vietnam. Moreover, the resources of information are also limited and there are many disadvantages of searching information about small business case so the information is not accessed conveniently.............................19 Business Profile............................................................................................................................19 Background information............................................................................................................20 The official PYS Travel Company was established on April 30th, 2010 by four young men: . 20 Mr. Vu Tuan Phong...................................................................................................................20 Mr. Tran Sy Son.........................................................................................................................20 Mr. Doan Thien and .................................................................................................................20 Mr. Vu Van Phuong. .................................................................................................................20 Head office: Number 15, alley 55, Van Ho Street, Hanoi. .......................................................20
Business Performance Review and Strategy Proposal
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PYS is a project established by young people with having tour passion, a wish bringing new and enjoyable trips, experience as well for the youth. The company is trying to provide customers with all tourism related services to their complete satisfactions and at competitive prices. PYS help customers have chance to contemplate the beauty and attraction of country as well as people in Vietnam. More specifically, with partner network from North to South of Vietnam, PYS is able to support tours or trips that have competitive price with high quality. 20 Vietnam tourism develops faster and faster as the policies of government in motivating this no smoke industry. Vietnamese people proud of beautiful coast stretch out over 3.260 km with famous landscape, sights; it sure that Vietnam will become a sea travel centre in the world as well as a sea travel heaven to compete with other countries. The Vietnam balance of travel concentrates on in 2 big cities: Hanoi and Ho Chi Minh City. These are 2 gateways and also 2 main client markets that have big effect on development situation at neighboring areas and other tour routes in the country. (Tuanxipo, 2009) ..................................................................20 Furthermore, condition of economy and social of human being is developing incessantly. It leads people have more need in entertainment area compared with the 10 years ago. After hard work hours, everyone wants to take a rest to recover their balance, have spirit for new workweek. They can be students, pupils, workers with medium revenue or businessman with high one. As the result, many types of entertainment have been born and developed. Travel service is one of them. ..............................................................................................................21 Philosophy of PYS is bringing young people the fresh, interesting trips and experience. On the first established days, PYS has made clear objectives: ............................................................21 Holding successfully tours for members, one tour per month...................................................21 Create a helpful playground and interesting activities for members in tour............................21 Making offline meetings to help members have chance to talk, discuss after tour...................21 Decreasing unnecessary procedures for customers when they register...................................21 Look for partners on hotels, restaurants constantly..................................................................21 Owning many advantages, more and more young people or families came and chose tours of PYS. On the full-fledged face-book page of PYS Travel, the number of friends comes up to 2,166 friends and 382 fans like PYS Travel fan-page. .............................................................21 PYSs service.............................................................................................................................21 The main service PYS is aiming at is tourism...........................................................................21
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Travel: holding tours with competitive price in Vietnam and Southeast Asia area include about 45 people per tour. Beside that, there are activities together with trips. After ending tour, PYS will play a role as a blackbird bridge to connect members by offline meetings.......21 With such objectives, young people are target customer that PYS is looking for at this time. The age of them is from 19 to 24. They both love to travel, discover, have an inquiring mind, make friend with everyone as well. .........................................................................................21 Strengths and successes.............................................................................................................21 The top three competitive advantages the business has over other business in the market space are:............................................................................................................................................22 First of all is of course the cost. Price is a very important competitive advantage in todays capitalism because people are always looking to buy something cheaper. Strategy PYS set up is suitable cost for every tour because lower cost suit every pocket of students or pupils.......22 The second and also very important is quality. Usually a low price is connected with lowquality and although this might not be the case in this company people will associate low price with low quality in the company as well. As a result, PYS is trying to better itself to gain belief of customers through short tour. ....................................................................................22 Last but not least is flexibility. It means how much your product can adjust the customers needs. For example if you are making boats do you have only three models in your offer or can you make boats specially by customer requests (Matt, 2009). Understanding this important factor, PYS always learn constantly aimed at improving and diversifying its service like to create a playground, such as: activities in and after tour..............................................22 As owning these 3 competitive advantages, the company has reaped the desired successes. . 22 Make difference completely compared with competitors by using website or social media.....22 Build youth travel community....................................................................................................22 Improve apparatus of leader, marketing, tour, and also after tour..........................................22 Qualifications of the business and its staff................................................................................22 In addition, PYS is a subsidiary company of O2 Travel. Therefore, it received lots of help from Mother Company in the process of constructing brand name. For example, in Da Nang 02/09 tour, customers of PYS are picked up at meeting place by buses of O2 Travel............22 Staves in company both are young people bring indulgence and enthusiasm of the youth. Therefore, they have a wide relation include friends, close relatives, colleagues. They can
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understand psychology of young people; keep with the latest information to help their companys services in accordance with their customers. Besides, staff both graduated from excellent universities in Vietnam with merit university degrees, such as: Vietnam Commercial University, Foreign Trade University, and University of Technology. They have enough knowledge to improve their work. Experience they have is also one of advantages. Some of them had ever been an employee of Rich Media, Hanoi School Business (HSB). Some of them had been a computer programmer managed and designed website. .....................................22 The selling statement.................................................................................................................23 PYS Travel Company wants you to see that: If you like to discover and travel, you do not have enough money to satisfy your desire, why would you not choose our companys services? Come and enjoy with interesting people.................................................................................23 Contact information..................................................................................................................23 Head Office of PYS Travel Co...................................................................................................23 Address: number 15, alley 55, Van Ho Str., Hanoi...................................................................23 Tel: (84-4) 224.237.68...............................................................................................................23 Email: Info@pystravel.com.......................................................................................................23 Website: pystravel.com..............................................................................................................23 ...................................................................................................................................................23 Marketing Performance............................................................................................................24 Services......................................................................................................................................24 PYS is a travel company. Its work is holding tours to famous landscape, sights in Vietnam and South Asia. They are small ones; the number of participated people is just about from 30 to 40 people per tour. ........................................................................................................................24 Although just established for 11 months, PYS still has enough power to compete other companies since unique and fresh direction. Customer market that PYS aimed at is young people who have high need but less condition in expense. Therefore, tours of PYS has own price that just spend for students or pupils...............................................................................24 Vision that PYS has proposed is Pioneer Youth Solution. Being customer of PYS, you will be serviced from accommodation to transport or special cost in tourist destination such as: entrance ticket, etc. Customers come to PYS Travel Company, take part in activities of PYS not only have chance to contemplate the beauty and attraction of country as well as people in
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Vietnam but also being communicated, inquired, and set up many relations as an intermediary role of PYS. ...............................................................................................................................24 Pricing Strategy.........................................................................................................................24 In integration and development times as nowadays, PYS has many competitors both in and out of country. PYS chose an own strategy of competition about price and customer target. Because customers are students who have high demand about entertainment, travel but has not yet revenue, still depend on family in spending, cost of travel service of PYS also differ from its competitors. ..............................................................................................................24 When comparing price of tours of PYS with other companies, you will see a quite difference. For instance, with Hanoi - Sapa tour, price of PYS for trip is VND890,000 one person including fee of petrol, hiring room, bus and motorbike to move, 2 breakfast meal, lunch and dinner, train ticket, ticket for tourist destination. Whilst, price of Dulichtrongoi for this tour is VND1.200.000 one person including all information is mentioned above (dulichtrongoi.com, n.d). ...........................................................................................................................................25 Sales and Distribution...............................................................................................................25 For customers that took part in PYSs tour, they will receive information of new tours through social media, like: facebook, website, etc. And for all the rest, a letter of invitation will be sent to their mailbox. It means that PYS choose a direct distribution channel; the service goes directly from the manufacturer to the customer. .....................................................................25 Everyone likes PYS Travel Company because of its guideline of activity Fast User-friendly Tidy even in methods of payment. Customers that would participate in tour could go directly to the company, or pay money in offline meeting, or transfer money through bank account. If until date of departure, anyone can not participate in tour, the company will return whole of money that customer paid. There are no any ties between the company and that customer. With each member, PYS will buy insurance for them in tour...................................25 After sales support - a term used to describe the ongoing relationship between the company and customer where services are rendered to the customer throughout the product life cycle to the end of life. This type of support typically includes warranty, upgrade and repair services (webopedia, n.d). In this situation being a customer of PYS, you enjoy an after sales support extremely interesting. They are created a relationship between them and other members, have
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chance to take part in events, offline meeting PYS hold. They are also taken interest in usually by an e-mail as a greeting card.................................................................................................25 When you are in business for yourself, it is imperative not only to pay attention to your website and monetizing it, but also to ensure that your customers are satisfied. One way to do this is to listen to you customer feedback (Sean, R., 2009). Ending each tour, members both receive a survey, in this they can express their opinions as emotion whether they are satisfied with PYSs service or not. As these feedbacks, the company can satisfy customers as well as make money. Without customers, your business will lose repeat sales and your reputation will be damaged (Sean, R., 2009).....................................................................................................26 Advertising and Promotion.......................................................................................................26 Management Performance........................................................................................................27 Ownership Structure..................................................................................................................27 Deriving for some good reasons, PYS has established by four people: Phong, Son, Thien and Phuong. They contributed money for PYS together and have responsibility for the success or failure of business. It is a type of partnership. If the firm had to close, responsibility would be divided equally for those people, such as the companys profits and losses, and its debts and liabilities....................................................................................................................................27 Internal Management Team......................................................................................................27 Phong and Son are factors creating success in this business. Son supports as a marketing manager, also an accountant and is the main management in the firm, whereas, Phong takes responsibility for travel tours. There are lots of advantages of partnership, like more financial resources than a proprietorship, additional management skills despite the liability that does exist if the business fails............................................................................................................27 In a position of Son, he must manage his staff. The company employs 8 people in total. Apart from 4 people in management team, the business has 4 people left: two tour guides, two computer programmers. There is a particular point in PYS Travel Company. That is one person can work in various position. Take Phong as an example. He is the leader of tour team and also a member in after-sale service....................................................................................27 ...................................................................................................................................................27 Chart 1: The organization of PYS Travel Company.................................................................27 The following will list CVs of each member in the management team:....................................28
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Nguyen Thi Ngoc Linh-Nana Mr. Tran Sy Son (1984):
F02B
Small Business Enterprise ........................................................................28
Language: English, Vietnamese................................................................................................28 Graduated in Commercial University, Marketing Field (2005 - 2009)....................................28 Worked in marketing department of SJ Vietnam Company 3 years ago (from 2006 to 2009). 28 Being worked at HSB: Hanoi School Business at this time......................................................28 ...................................................................................................................................................28 Mr. Vu Tuan Phong (1984).......................................................................................................28 Language: English, Vietnamese................................................................................................28 Graduated in Foreign Trade University Business Management Field (2003 - 2007)...........28 Worked as an assistant vice-director in Construction Company from 2006 to 2007...............28 Often hold tour for volunteer team: BC club (for 10 tours until now)......................................28 Being worked for The Garden at the eating and drinking floor................................................28 ...................................................................................................................................................28 Mr. Doan Thien (1981).............................................................................................................28 Language: English, Vietnamese................................................................................................28 Graduated in Foreign Trade University Marketing Field (2002 - 2006)..............................28 Hold events and work in marketing department of Rich Media for 2 years.............................28 ...................................................................................................................................................28 Mr. Vu Van Phuong (1985).......................................................................................................28 Language: English, Vietnamese................................................................................................28 Graduated from Commercial University Financial Management Field (2001 - 2005).........28 Being worked as a vice-business director, to be responsible for marketing HaPra Invest Company for 3 years (from 2007 to 2010)................................................................................29 According to CVs of management team, we can see that both of them had graduated universities in Marketing, Financial Management, and Business Management Field. Some of them have many years experience in management. Others have experience in marketing. All of them are young people have dream and demand to follow their dream. They also have flexibility to be conformable to environment. In particular, taste of customer always changes according to time. Because there is this advantage, the company may avoid risk in business.29 Human Resources/Employees...................................................................................................29
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The company has 9 employees in total. Apart from 4 people above, there are 4 people left. Those are 2 computer programmers and 2 tour guides. ..........................................................29 Minh Fire and Minh Mend support as the computer programmer in company. They both have been studying in Hanoi Technology University. Moreover, Minh Five designed and program website for BC club, PYS Travel Company, I3 Vietnam, HaPra Invest, etc. Minh Mend is the person who makes plan marketing and holding events. ...........................................................29 Huy and Long play roles as tour guides for trip. They are enthusiastic, aggressive and communicate well. Huy can play guitar and Long has a good singing voice, so they really suit to guide everyone in each tour..................................................................................................29 The salary of each employee will be deducted 20% from selling revenue. They are satisfied with the management because the most important that they receive are experience and a wide relation with people. They also get joy and fun from each tour................................................29 Operation Performance.............................................................................................................30 Operation...................................................................................................................................30 PYS is a project established by the youth with having tour passion, a wish bringing new and enjoyable trips, experience as well for all young people. The company is trying to provide customers with all tourism related services to their complete satisfactions and at competitive prices. PYS help customers have chance to contemplate the beauty and attraction of country as well as people in Vietnam. More specifically, with partner net from North to South of Vietnam, PYS is able to support tours or trips that have competitive price with high quality. 30 Tours of PYS are hold once a month and it just extends about 3 days in one week. The service process of PYS has follow steps:...............................................................................................30 Make a plan within 2 weeks includes surveying and ordering..................................................30 Advertising for tour and holding a offline meeting for members before tour within 3 weeks...30 Running tour in 3 days..............................................................................................................30 Using after-sale and holding offline meeting after tour............................................................30 General......................................................................................................................................30 There always is a staff to be on guard in company. And toward other staves, there is a meeting on Tuesday every week at the office from 7.00 9.00 pm to discuss objectives and mission for everyone in the next time aimed at improving company...........................................................30 Assets.........................................................................................................................................30
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The business has both tangible resources: the office, work instruments and intangible ones: exclusive software interface, host. ............................................................................................30 Cost............................................................................................................................................30 PYS just spend for fact-finding trip about VND600,000 2,000,000 depend on each famous landscape and sights, for insurance of customers in tour, and miscellaneous items, such as: print out itinerary list................................................................................................................30 Financial Performance .............................................................................................................30 The Income Statement...............................................................................................................31 PYS Travel Company.................................................................................................................31 Income Statement......................................................................................................................31 For the month ended 30 September 2010..................................................................................31 The Balance Sheet.....................................................................................................................31 Comparing performance with its competitor: Dulichtrongoi...................................................33 Financial Performance..............................................................................................................33 In the financial of any business, the sale and the profit review some aspects of the financial performance. Firstly, about the price, PYS has a cheap cost in almost tours compared with Dulichtrongoi Company. For instance, with Hanoi - Sapa tour, price of PYS for trip is VND890,000 one person including fee of petrol, hiring room, bus and motorbike to move, 2 breakfast meal, lunch and dinner, train ticket, ticket for tourist destination. Whilst, price of Dulichtrongoi for this tour is VND1.200.000 one person including all information is mentioned above (dulichtrongoi.com, n.d)................................................................................33 Marketing Performance............................................................................................................33 Marketing is a broad topic that covers a range of aspects, including advertising, public relations, sales and promotions. Without a marketing strategy, businesses cannot develop in market nowadays. PYS has an advantage; that is centering round its customers needs, and then develop its services. ..........................................................................................................33 PYS provide easier access and greater visibility than allowed by their present space. Before sale, PYS has website and face-book or fan-page to popularize its image as well as information of each trip about time, place, activities in tour, etc. Customers that would participate in tour could go directly to the company, or pay money in offline meeting, or transfer money through bank account. If until date of departure, anyone can not participate in
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tour, the company will return whole of money that customer paid. There are no any ties between the company and that customer. With each member, PYS will buy insurance for them in tour. And about after-sale, aimed at maintaining loyal customers, connecting members together, PYS also form associations for everyone. Holding events, offline meeting are taken place more usual. .....................................................................................................................34 Whereas, Dulichtrongoi invested more about advertising in cosmetic web like: enbac.com, muare.vn, etc. Those are popular website that has many visitors come to everyday. Therefore, it is very useful in helping Dulichtrongoi attract more customers and build image of Dulichtrongoi. It leads to turnover of Dulichtrongoi is higher than PYS.................................34 As a result, PYS should focus on improving service to satisfy customers. If customer meets fully service of PYS, they will recommend for their friends as well as relative if they have demand. So the best way to market the business is to satisfy clients........................................34 Management Performance........................................................................................................34 Operations.................................................................................................................................34 Location of PYS business is in alley, so it is a disadvantage in operating. It may create a difficult for customer in finding head office of company. In contrast, dulichtrongois office is at Hoan Kiem District one of center of Hanoi. If a company has a good location, it will attract more customers than others. .........................................................................................35 Both PYS and its competitor Dulichtrongoi have a representative in office. This person has responsibility in explaining customers questions, check order of customers, collect money if they come to pay as well............................................................................................................35 SWOT Analysis..........................................................................................................................35 Strengths....................................................................................................................................35 Staff both is young, friendly, and has good communication skill. Both of them are students have just graduated university, they are aggressive and have enthusiasm if creative labor. . 35 Procedure in registering is very fast and handy. Customers will really pleasure with procedure in registering of PYS. They can order first before paying cash. In addition they could transfer money to bank account of tour leader instead of going to the company. .........35 Take full advantage of technology information in advertising and improving work. It is cheap and very convenient. A number of viewers are also high. .......................................................36
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Cost of tour is cheap suitable with students or pupils. Along quality of service, price is a problem customers care about. Use of service of PYS, they can enjoy not lower cost but also good quality. .............................................................................................................................36 The relationship which PYS builds with its customer is the key of earning profit. Customers come to PYS Travel Company not only for its services but also to chat and make friends with others, thus, it considers the former advantage of this company..............................................36 Weaknesses................................................................................................................................35 Have a difficult in gaining funds. Because PYS is a small business, although they have much strength, they also meet this weakness......................................................................................35 Do not use mass media in advertising or promotion. Marketing strategy is not diversity. They just use Internet, social network to diffuse image of company..................................................35 Tour guides have not yet been professional. People who play as tour guides are not student of Tourism University. ..................................................................................................................35 Opportunities.............................................................................................................................36 PYSs target market has a big number. Those are young people who are aggressive, like to travel and discover as well as make friend with other friend. .................................................36 Condition of social gets better and better, thus traveling need increase incessantly. Human being nowadays works harder and harder, thus, after working hour, they need time to relax and need a place to entertain. Forms of services also increase because of this reason...........36 Tourism received the care of Government in growing as well as expanding market by constructing developing strategy. Recognizing advantages of this non-smoke industry, Government support VND750 billions for 59 provinces and cities to improve infrastructure from 2001 until now (Ha, N., 2008). ........................................................................................36 Vietnam entered WTO, friendly relations are also enlarged compared with in the past. In 2007, the number of traveler came to Vietnam is about 4,171,564 people; it went up 16.0% compared with in 2006. In 2008, that number increased to 4,253,740 people (vietnamtourism.gov.vn, 2009)..................................................................................................37 Threats.......................................................................................................................................36 The number of competitors is not small. Competitors of PYS at this time are not only local businesses but also foreign firms since entering WTO of Vietnam. .........................................36
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Unstable politics, fluctuation of exchange rate, natural calamity, etc are latent threats for developing tourism. Price and money are always the first anxiety of customer. At present, nations overcame crisis period and threats were stabilized. ...................................................36 After defining strengths, weaknesses of company, directions as well as objectives to overcome weaknesses and maintain strengths are really necessary. .......................................................37 Recommendation & suggest solution overcome the weakness..................................................37 PYS Travel Company must appropriate actions to defeat the disadvantages and improve the advantages that company currently has. ..................................................................................37 The first weak point is about fund. The business needs a strategy because is necessary for every institution that wishes to achieve its goals, or for successfully completing a specific project. A strategy can be used to increase the probability of a project's success and to overcome resistance to change(erc.msh, n.d). Resolving this problem has many ways, but to have effect, PYS should follow these steps: ..............................................................................37 Invest time to make plan: did we use fund effectively and reasonable? If it was wrong, we should fix it in this fund scale. Then think that what should be invested much more, what should be invested less. Discuss and decide a specific plan for each part...............................37 Research and inquire the other company in same field. ..........................................................38 Choose suitable funding channel: it depends on when is its deadline? How much is interest rate? Towards small business enterprises, PYS should choose banks for lending with 8% interest rate and deadline within 1 year....................................................................................38 After borrowing with interest, PYS also need to think: how to mitigate financial trouble such as reducing debt and increasing sales as much as possible......................................................38 The second one related on marketing strategy. The Vision is created because it set up the desired future of the institution, integrating the needs of both staff and users (erc.msh, n.d). By using SWOT analysis, PYS has a clear look about the situation of its business and the common market; also find a target market of the business. PYS did not focus on traditional advertising methods, such as: advertising on TV, radio, newspaper, etc. Beside that, PYS choose non-traditional one be its marketing strategy because its target market is young people who use Internet frequently. Therefore, PYS should exploit and make full advantage of this field. There are many ways for PYS to make choice and refer to. Those are using Internet
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technology, word of mouth, stickers, pop-up ads, peer marketing, and so on. Both of them have advantages like flexible, low cost, targeted and simple. ..................................................38 To apply in situation of PYS, before-sale, PYS has website and face-book or fan-page to popularize its image as well as information of each trip about time, place, activities in tour, etc. And about after-sale, aimed at maintaining loyal customers, connecting members together, PYS also form associations for everyone. Holding events, offline meeting are taken place more usual. As a consultant, PYS should have compliments, happy birthday, and so on for members or old customers through e-mails by using CRM software. As a result, customers would love PYS more than.........................................................................................................38 The last one is about human resources of PYS Travel Company. To better employees, PYS should provide training course strategies for them. Through the training courses, they will be creating dynamic, creative, innovative in process of working and flexible in doing their jobs. With the high levels of education, workers can apply their knowledge to make their job more efficiency and effectively. During the working process, the problem of fixing and causes will be found quickly base on the Maslows hierarchy of needs......................................................39 ...................................................................................................................................................39 Figure 1: Maslows Hierarchy of Needs (original five-stage model).......................................39 According to the establishing process, PYS has made satisfied employees with Physiological needs. PYS provided them job, stable salary, safety needs, buy insurances, etc. And now, the company should satisfy their self-esteem needs and self-actualization needs to workers. Training strategies are to make employees have more knowledge, skills and experiences to deal with competitive environment. ..........................................................................................39 Staff should be trained by to register an extra-class about tourism or invite a teacher to come to teach. Using that way the company has to motivate employees positively. As a result, PYS will attract more people apply, especially about young ages because they usually like a new environment and new working style. More over, knowledge and good communication that tour guide own will even pleasure strict customers. By this way, everyone feel happy in choosing service of PYS. Apart from that way, PYS can encourage employees by fact-finding trips aimed at gaining knowledge about nature, nation as well as people in Vietnam and SouthAsia, improve their faculty of exchange....................................................................................39 The ways in which existing performance could be maintained and strengthened....................40
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Staff both is young, friendly, and has good communication skill. ............................................40 As mentioned above, PYS should focus on training their employees through training strategy based on Maslows hierarchy of needs. More specifically, we will base on a series of 5 tests for valuable resource of Collin and Montgomery. However, with this situation, PYS should apply 2 tests for valuable resources as in the following...........................................................40 Inimitability: It is difficult for other company to copy skill, ability of each employee. PYS should keep talent staff or training them by studying through fact-finding trips. Therefore, they can both travel and learn about country and human in Vietnam or other countries in South-Asia. ...............................................................................................................................40 Durability of resources: PYS should build a team spirit in the company. It would help increase the chance of successful performance and winning of work as a team. There are 4 factors of team spirit, like: the combination of trust, respect, interconnected and enjoyment, feeling of loyalty, desires to work as a team and dedication of individual (BBP Professional Education, 2004, p.26). The leader should point out each member the responsibility for objectives, competences and resources needed to realize their shared vision clearly. As a result, PYS can create loyal member by signing long-term contract instead of temporary one. Furthermore, it will make a security for staff to work without stress.................................................................40 There are several ways to keep employee and promote their spirit. Build your brand is one of those ways. PYS is a company facing the customer directly; so having a dress code where all employees wear corporate logo shirts is a great way for employees to literally wear their pride. Not only do corporate logo shirts promote the company from within, but when employees go out, they could promote your business to the outside world as well (Andrew, R., 2008)..........................................................................................................................................40 Procedure in registering is very fast and handy. .....................................................................40 Take full advantage of technology information in advertising and improving work. .............40 The relationship which PYS builds with its customer is the key of earning profit. ..................40 These 3 strengths might be added up to maintain and improve together because the registering procedure depend on technology and the relationship between PYS and customer may also bettered by technology. .............................................................................................41 The consumer target theory provides that consumer branding strategy and marketing strategy will focus on the use of resources to targeted customers. Customer segmentation
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theory' through customer segmentation and allow enterprises to understand who is the target customers, target customers of the consumption patterns, to focus resources on the target customers for marketing (hi138, n.d)......................................................................................41 Hence, this part just focuses on applying technology effectively. As mentioned above, playing as a consultant of PYS, I recommended using CRM software. CRM, or Customer Relationship Management, is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time (destinationcrm.com, 2010). It helps the company keep contact with customer by sending Happy birthday or Happy new year card, etc to develop stronger relationship with them................................41 ...................................................................................................................................................42 About procedure in registering, customers can order first before paying cash. In addition they could transfer money to bank account of tour leader instead of going to the company. Now, there should be many ways to order like sending message, making a call, or using Internet. Providing a survey or collecting feedback is also an important factor in making customers satisfy with services of company. ...........................................................................................42 Cost of tour is cheap suitable with students or pupils...............................................................42 When customers have pleasure with price of service, PYS should care about input of the company. That is partners like hotels, restaurants, etc. PYS should apply The Five Forces Analysis to gain the best quality of benefits. It is about:...........................................................42 The threat of new entrants into the industry..............................................................................42 The threat of substitute products or services.............................................................................42 The bargaining power of customers..........................................................................................42 The bargaining power of suppliers...........................................................................................42 The rivalry amongst current competition in the industry..........................................................42 (BPP Professional Education, 2004, p.35)...............................................................................43 ...................................................................................................................................................43 Figure 2: The five competitive forces........................................................................................43 At this time, situation of economy has many changes: price of gold increase highly, price of petroleum also go up constantly. For example, on 11 November 2010, gold was sold 36
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million a tael, however, on the following morning, golden price decrease by 35 million a tael. It is still consider as a record in golden price in the past years. This is a reason that makes suppliers increase their price. More important, household expenses are brought about. People have to tighten their wallet, especially students, the main target market of PYS.....................43 Face the worry of losing customer as well as the increase in services price, PYS has to have policy to keep customers. More promotion for each tour is brought out constantly is also a method aimed at decreasing Price fever, increase competition between other service at the same time. For example, discount 40% for a 4-people group; attractive awards for activity in each tour by cash or voyage. In addition, PYS cannot but care about long-term relation with suppliers so that they can supply suitable expense for each tour, which creates an interest for 3 parties: customer can have service with competed price, supplier and distribution both sell product.......................................................................................................................................43 ..................................................................................................................................................44 Suggest new areas for expansion with justifying suggestions...................................................44 The current situation of business...............................................................................................45 PYS Travel Company is just a small business, so it must try more to compete with other travel company. About human resources, PYS should recruit more people for tour guide position. With the resource of cheap, quality and reliability labor, PYS should make the choice carefully and recruit staves that have enough conditions as in following: good communicate, good appearance, can speak English fluently...........................................................................45 Conclusion....................................................................................................................................46 Based on information analyzed and investigated above, it is believed that PYS Travel Company is a successful business with quality service. However, PYS is just a small business, so it has not enough fund in investing service and products.....................................................46 PYS must appropriate actions to overcome the weakness such as lack of talent, lack of marketing plan, and lack of fund. Each action must be analyzed advantage and disadvantage affect to its business...................................................................................................................46 References.....................................................................................................................................47 Destinationcrm, (2010), what is CRM?, [online] Available at:
[http://www.destinationcrm.com/Articles/CRM-News/Daily-News/What-Is-CRM-46033.aspx] [accessed on 14 November 2010].............................................................................................48 Business Performance Review and Strategy Proposal - 16 -
Nguyen Thi Ngoc Linh-Nana Dulichtrongoi, En.wikipedia, (n.d), (n.d), Hanoi
F02B Sapa Hanoi Tour,
Small Business Enterprise [online] Available Available at: at:
[http://www.dulichtrongoi.com/index.php] [accessed on 14 November 2010]........................48 Promotion marketing, [online] [http://en.wikipedia.org/wiki/Promotion_%28marketing%29] [accessed on 15 November 2010].........................................................................................................................................48 Webopedia, (n.d), After sales support, [online] Available at: [http://www.webopedia.com/TERM/A/after_sales_support.html] [accessed on 15 November 2010].........................................................................................................................................49
Executive Summary
The adviser has been given a task to suggest strategies for further improvement of PYS Travel Company. To start, this report analyzes the current business performance. Then, plans for further improvement will be presented. Specifically, it evaluates the following: The profile of the small business (PYS Travel Company), like summary of the business background information, its service, strengths and successes, qualifications of the business and its staff, its selling statement combine contact information. The performance of the No. 31 Hair and Beauty business is not good The strengths, weaknesses, opportunity, threat and also recommendation appropriate actions required to overcome the weaknesses identified
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The ways in which existing performance could be maintained and strengthened, as well as improve its weaknesses. In this report, it also suggest new areas for expansion with justifying suggestions
It is not quite easy to make a good plan to maintained and strengthened and also expansion stage. The consultant must invest time to research, analysis and solving problem for every plan. Going global is harder, but its the inevitable way to expand the company, PYS business has no exception. In the development of Vietnamese economic, to expand company is suitable solution to develop. To expand the company with some opportunities and threats, PYS should make a clear plan and logical solution to overcome weakness and improving the strength that company currently has.
Introduction
Vietnam tourism develops faster and faster as care of government in improving this no smoke industry. Vietnamese people proud of beautiful coast stretch out over 3.260 km with famous landscape, sights; it sure that Vietnam will become a sea travel centre in the world as well as a sea travel heaven to compete with other countries. The Vietnam balance of travel concentrates on in 2 big cities: Hanoi and Ho Chi Minh City. These are 2 gateways and also 2 main client markets that have big effect on development situation at neighboring areas and other tour routes in the country. (Tuanxipo, 2009) The report will investigate to determine how this part of industry comes to Viet Nam, analyses the performance of PYS Travel Company and they might forecast its future. Furthermore,
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this report helps PYS Travel business to propose improvement to solve the current problem of the business or suggest business strategy of the business. This report is carried out base on the information from website of pystravel.com, interview, the experience and the research of the writer. The limitation of this report is lacking of time. The writer may need more time to research the real situation of Vietnam economy and fashion industry in Vietnam. Moreover, the resources of information are also limited and there are many disadvantages of searching information about small business case so the information is not accessed conveniently
Business Profile PYS Travel Company (Pioneer Youth Solutions)
Background information
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The official PYS Travel Company was established on April 30th, 2010 by four young men: Mr. Vu Tuan Phong Mr. Tran Sy Son Mr. Doan Thien and Mr. Vu Van Phuong. Head office: Number 15, alley 55, Van Ho Street, Hanoi. PYS is a project established by young people with having tour passion, a wish bringing new and enjoyable trips, experience as well for the youth. The company is trying to provide customers with all tourism related services to their complete satisfactions and at competitive prices. PYS help customers have chance to contemplate the beauty and attraction of country as well as people in Vietnam. More specifically, with partner network from North to South of Vietnam, PYS is able to support tours or trips that have competitive price with high quality. Vietnam tourism develops faster and faster as the policies of government in motivating this no smoke industry. Vietnamese people proud of beautiful coast stretch out over 3.260 km with famous landscape, sights; it sure that Vietnam will become a sea travel centre in the world as well as a sea travel heaven to compete with other countries. The Vietnam balance of travel concentrates on in 2 big cities: Hanoi and Ho Chi Minh City. These are 2 gateways and also 2 main client markets that have big effect on development situation at neighboring areas and other tour routes in the country. (Tuanxipo, 2009) Furthermore, condition of economy and social of human being is developing incessantly. It leads people have more need in entertainment area compared with the 10 years ago. After hard work hours, everyone wants to take a rest to recover their balance, have spirit for new workweek. They can be students, pupils, workers with medium revenue or businessman with high one. As the result, many types of entertainment have been born and developed. Travel service is one of them.
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Philosophy of PYS is bringing young people the fresh, interesting trips and experience. On the first established days, PYS has made clear objectives: Holding successfully tours for members, one tour per month. Create a helpful playground and interesting activities for members in tour. Making offline meetings to help members have chance to talk, discuss after tour. Decreasing unnecessary procedures for customers when they register Look for partners on hotels, restaurants constantly. Owning many advantages, more and more young people or families came and chose tours of PYS. On the full-fledged face-book page of PYS Travel, the number of friends comes up to 2,166 friends and 382 fans like PYS Travel fan-page. PYSs service The main service PYS is aiming at is tourism. Travel: holding tours with competitive price in Vietnam and Southeast Asia area include about 45 people per tour. Beside that, there are activities together with trips. After ending tour, PYS will play a role as a blackbird bridge to connect members by offline meetings. With such objectives, young people are target customer that PYS is looking for at this time. The age of them is from 19 to 24. They both love to travel, discover, have an inquiring mind, make friend with everyone as well. Strengths and successes The top three competitive advantages the business has over other business in the market space are: First of all is of course the cost. Price is a very important competitive advantage in todays capitalism because people are always looking to buy something cheaper. Strategy PYS set up is suitable cost for every tour because lower cost suit every pocket of students or pupils. The second and also very important is quality. Usually a low price is connected with low-quality and although this might not be the case in this company people will associate low price with low quality in the company as well. As a result, PYS is trying to better itself to gain belief of customers through short tour.
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Last but not least is flexibility. It means how much your product can adjust the customers needs. For example if you are making boats do you have only three models in your offer or can you make boats specially by customer requests (Matt, 2009). Understanding this important factor, PYS always learn constantly aimed at improving and diversifying its service like to create a playground, such as: activities in and after tour. As owning these 3 competitive advantages, the company has reaped the desired successes. Make difference completely compared with competitors by using website or social media. Build youth travel community. Improve apparatus of leader, marketing, tour, and also after tour. Qualifications of the business and its staff In addition, PYS is a subsidiary company of O2 Travel. Therefore, it received lots of help from Mother Company in the process of constructing brand name. For example, in Da Nang 02/09 tour, customers of PYS are picked up at meeting place by buses of O2 Travel. Staves in company both are young people bring indulgence and enthusiasm of the youth. Therefore, they have a wide relation include friends, close relatives, colleagues. They can understand psychology of young people; keep with the latest information to help their companys services in accordance with their customers. Besides, staff both graduated from excellent universities in Vietnam with merit university degrees, such as: Vietnam Commercial University, Foreign Trade University, and University of Technology. They have enough knowledge to improve their work. Experience they have is also one of advantages. Some of them had ever been an employee of Rich Media, Hanoi School Business (HSB). Some of them had been a computer programmer managed and designed website. The selling statement PYS Travel Company wants you to see that: If you like to discover and travel, you do not have enough money to satisfy your desire, why would you not choose our companys services? Come and enjoy with interesting people. Contact information
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Head Office of PYS Travel Co.

Address: number 15, alley 55, Van Ho Str., Hanoi Tel: (84-4) 224.237.68 Email: Info@pystravel.com Website: pystravel.com
Marketing Performance
Services PYS is a travel company. Its work is holding tours to famous landscape, sights in Vietnam and South Asia. They are small ones; the number of participated people is just about from 30 to 40 people per tour. Although just established for 11 months, PYS still has enough power to compete other companies since unique and fresh direction. Customer market that PYS aimed at is young people who have high need but less condition in expense. Therefore, tours of PYS has own price that just spend for students or pupils.
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Vision that PYS has proposed is Pioneer Youth Solution. Being customer of PYS, you will be serviced from accommodation to transport or special cost in tourist destination such as: entrance ticket, etc. Customers come to PYS Travel Company, take part in activities of PYS not only have chance to contemplate the beauty and attraction of country as well as people in Vietnam but also being communicated, inquired, and set up many relations as an intermediary role of PYS.
Price, activities in tour and after-sale support both set PYSs service apart from all the rest. PYS often hold contests aimed at rising spirit of members, helping everyone have unforgettable emotion as well as memory in each tour. For example, Sapa a moment is one of contest that PYS carried out in the last September. All members of Sapa Harvesting season tour in September 17th could send maximum 3 pictures they feel the best to PYS. They were the most wonderful moments members caught in the tour (pystravel.com, n.d). After tour, PYS also help member keep contact together through offline meeting, group on facebook. That is the difference between PYS and other company. Pricing Strategy In integration and development times as nowadays, PYS has many competitors both in and out of country. PYS chose an own strategy of competition about price and customer target. Because customers are students who have high demand about entertainment, travel but has not yet revenue, still depend on family in spending, cost of travel service of PYS also differ from its competitors. When comparing price of tours of PYS with other companies, you will see a quite difference. For instance, with Hanoi - Sapa tour, price of PYS for trip is VND890,000 one person including fee of petrol, hiring room, bus and motorbike to move, 2 breakfast meal, lunch and dinner, train ticket, ticket for tourist destination. Whilst, price of Dulichtrongoi for this tour is VND1.200.000 one person including all information is mentioned above (dulichtrongoi.com, n.d). Sales and Distribution
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For customers that took part in PYSs tour, they will receive information of new tours through social media, like: facebook, website, etc. And for all the rest, a letter of invitation will be sent to their mailbox. It means that PYS choose a direct distribution channel; the service goes directly from the manufacturer to the customer. Everyone likes PYS Travel Company because of its guideline of activity Fast Userfriendly Tidy even in methods of payment. Customers that would participate in tour could go directly to the company, or pay money in offline meeting, or transfer money through bank account. If until date of departure, anyone can not participate in tour, the company will return whole of money that customer paid. There are no any ties between the company and that customer. With each member, PYS will buy insurance for them in tour. After sales support - a term used to describe the ongoing relationship between the company and customer where services are rendered to the customer throughout the product life cycle to the end of life. This type of support typically includes warranty, upgrade and repair services (webopedia, n.d). In this situation being a customer of PYS, you enjoy an after sales support extremely interesting. They are created a relationship between them and other members, have chance to take part in events, offline meeting PYS hold. They are also taken interest in usually by an e-mail as a greeting card. When you are in business for yourself, it is imperative not only to pay attention to your website and monetizing it, but also to ensure that your customers are satisfied. One way to do this is to listen to you customer feedback (Sean, R., 2009). Ending each tour, members both receive a survey, in this they can express their opinions as emotion whether they are satisfied with PYSs service or not. As these feedbacks, the company can satisfy customers as well as make money. Without customers, your business will lose repeat sales and your reputation will be damaged (Sean, R., 2009). Advertising and Promotion
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The marketing strategy of the business is not invested more in traditional advertising, such as: television, radio, newspaper, magazines, etc because PYS is just a small firm, established for more 11 months. Therefore, PYS has not yet had enough condition to invest in this field. However, in current sales, PYS still reached the satisfactory number of customers. All depend on advertising strategy and sales promotion of PYS. Social media, particularly social network is applied absolutely in marketing strategy. PYS has built a website to supply information of company as well as of tours for viewers. Always updates news and reply on the facebook or fanpage. Promotion is one of the four elements of marketing mix (product, price, promotion, distribution). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyers purchasing decision (en.wikipedia, n.d). Applying in this case, PYS offered a 50% discount for a group 4 people. PYS also gave attractive awards for contests or activities in tour for members, such as: VND500,000 for the best picture in Sapa A moment contest. So, by using the world of mouth and use a lot of promotion like discount price, etc, it is the way of promotion in marketing strategy.
Management Performance
Ownership Structure Deriving for some good reasons, PYS has established by four people: Phong, Son, Thien and Phuong. They contributed money for PYS together and have responsibility for the success or failure of business. It is a type of partnership. If the firm had to close, responsibility would be divided equally for those people, such as the companys profits and losses, and its debts and liabilities. Internal Management Team Phong and Son are factors creating success in this business. Son supports as a marketing manager, also an accountant and is the main management in the firm, whereas, Phong takes responsibility for travel tours. There are lots of advantages of partnership, like more
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financial resources than a proprietorship, additional management skills despite the liability that does exist if the business fails. In a position of Son, he must manage his staff. The company employs 8 people in total. Apart from 4 people in management team, the business has 4 people left: two tour guides, two computer programmers. There is a particular point in PYS Travel Company. That is one person can work in various position. Take Phong as an example. He is the leader of tour team and also a member in after-sale service.
Management Team (4 people)
Tour Team
(4 people)
Marketing
(4 people)
After-sale service
(2 people)
Design and administer website

(1 person)
Chart 1: The organization of PYS Travel Company The following will list CVs of each member in the management team:
Mr. Tran Sy Son (1984):

Language: English, Vietnamese Graduated in Commercial University, Marketing Field (2005 - 2009) Worked in marketing department of SJ Vietnam Company 3 years ago (from 2006 to 2009) Being worked at HSB: Hanoi School Business at this time
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Mr. Vu Tuan Phong (1984)

Language: English, Vietnamese Graduated in Foreign Trade University Business Management Field (2003 - 2007) Worked as an assistant vice-director in Construction Company from 2006 to 2007 Often hold tour for volunteer team: BC club (for 10 tours until now) Being worked for The Garden at the eating and drinking floor
Mr. Doan Thien (1981)

Language: English, Vietnamese Graduated in Foreign Trade University Marketing Field (2002 - 2006) Hold events and work in marketing department of Rich Media for 2 years
Mr. Vu Van Phuong (1985)
Language: English, Vietnamese Graduated from Commercial University Financial Management Field (2001 - 2005) Being worked as a vice-business director, to be responsible for marketing HaPra Invest Company for 3 years (from 2007 to 2010) According to CVs of management team, we can see that both of them had graduated universities in Marketing, Financial Management, and Business Management Field. Some of them have many years experience in management. Others have experience in marketing. All of them are young people have dream and demand to follow their dream.
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They also have flexibility to be conformable to environment. In particular, taste of customer always changes according to time. Because there is this advantage, the company may avoid risk in business. Human Resources/Employees The company has 9 employees in total. Apart from 4 people above, there are 4 people left. Those are 2 computer programmers and 2 tour guides. Minh Fire and Minh Mend support as the computer programmer in company. They both have been studying in Hanoi Technology University. Moreover, Minh Five designed and program website for BC club, PYS Travel Company, I3 Vietnam, HaPra Invest, etc. Minh Mend is the person who makes plan marketing and holding events. Huy and Long play roles as tour guides for trip. They are enthusiastic, aggressive and communicate well. Huy can play guitar and Long has a good singing voice, so they really suit to guide everyone in each tour. The salary of each employee will be deducted 20% from selling revenue. They are satisfied with the management because the most important that they receive are experience and a wide relation with people. They also get joy and fun from each tour.
Operation Performance
Operation PYS is a project established by the youth with having tour passion, a wish bringing new and enjoyable trips, experience as well for all young people. The company is trying to provide customers with all tourism related services to their complete satisfactions and at competitive prices. PYS help customers have chance to contemplate the beauty and attraction of country as well as people in Vietnam. More specifically, with partner net
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from North to South of Vietnam, PYS is able to support tours or trips that have competitive price with high quality. Tours of PYS are hold once a month and it just extends about 3 days in one week. The service process of PYS has follow steps: Make a plan within 2 weeks includes surveying and ordering. Advertising for tour and holding a offline meeting for members before tour within 3 weeks Running tour in 3 days Using after-sale and holding offline meeting after tour General There always is a staff to be on guard in company. And toward other staves, there is a meeting on Tuesday every week at the office from 7.00 9.00 pm to discuss objectives and mission for everyone in the next time aimed at improving company. Assets The business has both tangible resources: the office, work instruments and intangible ones: exclusive software interface, host. Cost PYS just spend for fact-finding trip about VND600,000 2,000,000 depend on each famous landscape and sights, for insurance of customers in tour, and miscellaneous items, such as: print out itinerary list.
Financial Performance
The Income Statement PYS Travel Company Income Statement For the month ended 30 September 2010 Week Sales Cost of Sales Opening inventory Week 1 VND 0 0 Week 2 VND 0 0 Week 3 VND 35,700,000 0 Week 4 VND 0 0 Total VND 35,700,000 0
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Nguyen Thi Ngoc Linh-Nana Purchases Ending inventory Gross profit Expenses Salaries Insurance Rent leases Telephone and utilities Tour Expense Survey Total expenses Income Income taxes Net income
F02B 0 0 0 0 0 500,000 0 0 600,000 1,100,000 -1,100,000 0 -1,100,000 0 0 0 0 0 500,000 0 0 0 500,000 -500,000 0 -500,000
Small Business Enterprise 0 0 0 0 3,000,000 500,000 0 19,000,000 0 22,500,000 13,200,000 0 13,200,000 0 0 0 5,200,000 0 500,000 0 0 0 5,700,000 -5,700,000 0 -5,700,000 0 0 0 3,200,000 3,000,000 2,000,000 0 19,000,000 6,000,000 29,800,000 5,900,000 0 5,900,000
The income statement of PYS Travel Company for the month ended 30 September 2010 shows that the shop was run successfully in September. The total gross profit is 0 VND and the net income for the month is VND 5,900,000. This is a good sign in the operation of the shop. This means the business strategy the owner caring out is definitely effective. The reason is PYS enhanced promotional activities for harvest season in Sapa at the end of the month. Therefore, it is a sufficient method for the business. Based on this income statement, it is predicted that PYS will break-even in the next months of the year. The Balance Sheet PYS Travel Company Balance sheet For the month ended 30 September 2010 ASSETS Current assets Cash Account receivable Inventory Fixed assets Delivery vehicle Equipment Business Performance Review and Strategy Proposal 0 10,000,000 - 31 VND 39,000,000 45,000,000 0 84,000,000
Nguyen Thi Ngoc Linh-Nana Less: Accumulated depreciation Total assets Liabilities Current liabilities Account payable Income taxes payable
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Small Business Enterprise 4,000,000 6,000,000 90,000,000
0 0 0 150,000,000 6,020,000 5,900,000 11,920,000 173,840,000 173,840,000
Equity Owners Equity Capital Retained earnings Balance, beginning of the month Net income Balance, end of month Total equity Total liabilities and equity
At the balance sheet date, PYS is in a strong financial position with 39,000,000 VND in cash, 45,000,000 VND of account receivable and current liabilities of 0 VND. Furthermore, the inventory at the end of the month amounted to 0 VND. It will be carefully managed to ensure that the shop has the right amount of inventory to fill customer orders and minimize product spoilage.
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Comparing performance with its competitor: Dulichtrongoi

Financial Performance
In the financial of any business, the sale and the profit review some aspects of the financial performance. Firstly, about the price, PYS has a cheap cost in almost tours compared with Dulichtrongoi Company. For instance, with Hanoi - Sapa tour, price of PYS for trip is VND890,000 one person including fee of petrol, hiring room, bus and motorbike to move, 2 breakfast meal, lunch and dinner, train ticket, ticket for tourist destination. Whilst, price of Dulichtrongoi for this tour is VND1.200.000 one person including all information is mentioned above (dulichtrongoi.com, n.d).
Marketing Performance
Marketing is a broad topic that covers a range of aspects, including advertising, public relations, sales and promotions. Without a marketing strategy, businesses cannot develop in market nowadays. PYS has an advantage; that is centering round its customers needs, and then develop its services. PYS provide easier access and greater visibility than allowed by their present space. Before sale, PYS has website and face-book or fan-page to popularize its image as well as information of each trip about time, place, activities in tour, etc. Customers that would participate in tour could go directly to the company, or pay money in offline meeting, or transfer money through bank account. If until date of departure, anyone can not participate in tour, the company will return whole of money that customer paid. There are no any ties between the company and that customer. With each member, PYS will buy
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insurance for them in tour. And about after-sale, aimed at maintaining loyal customers, connecting members together, PYS also form associations for everyone. Holding events, offline meeting are taken place more usual. Whereas, Dulichtrongoi invested more about advertising in cosmetic web like: enbac.com, muare.vn, etc. Those are popular website that has many visitors come to everyday. Therefore, it is very useful in helping Dulichtrongoi attract more customers and build image of Dulichtrongoi. It leads to turnover of Dulichtrongoi is higher than PYS. As a result, PYS should focus on improving service to satisfy customers. If customer meets fully service of PYS, they will recommend for their friends as well as relative if they have demand. So the best way to market the business is to satisfy clients.
Management Performance
There are not any methods of encouraging team members to develop roles during team assignments and promote team spirit to motivate and provide support to team members in PYS Travel Company. Whereas with Dulichtrongoi business, the owner have method to promote or motivate team spirit and provide support to team members like usually organizing extra-curricular activities. That is a weakness of PYS Travel Company; it leads to the low performance in business and so to lead a not high income.
Operations
Location of PYS business is in alley, so it is a disadvantage in operating. It may create a difficult for customer in finding head office of company. In contrast, dulichtrongois office is at Hoan Kiem District one of center of Hanoi. If a company has a good location, it will attract more customers than others. Both PYS and its competitor Dulichtrongoi have a representative in office. This person has responsibility in explaining customers questions, check order of customers, collect money if they come to pay as well.
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SWOT Analysis
Strengths Staff both is young, friendly, and has good communication skill. Both of them are students have just graduated university, they are aggressive and have enthusiasm if creative labor. Procedure in registering is very fast and handy. Customers will really pleasure with procedure in registering of PYS. In addition they could transfer money to bank account of tour leader instead of going to the company. Take full advantage of technology information in advertising and improving work. It is cheap and very convenient. A number of viewers are also high. Cost of tour is cheap suitable with students or pupils. Along quality of service, price is a problem customers care about. Use of service of PYS, they can enjoy not lower cost but also good quality. Business Performance Review and Strategy Proposal - 35 Weaknesses Have a difficult in gaining funds. Because PYS is a small business, although they have much strength, they also meet this weakness. Do not use mass media in advertising or promotion. Marketing strategy is not diversity. They just use Internet, social network to diffuse image of company. People who play as tour guides are not student of Tourism University.
They can order first before paying cash. Tour guides have not yet been professional.
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The relationship which PYS builds with its customer is the key of earning profit. Customers come to PYS Travel Company not only for its services but also to chat and make friends with others, thus, it considers the former advantage of this company. Opportunities are young people who are aggressive, like to travel and discover as well as make friend with other friend. traveling need increase incessantly. Threats Competitors of PYS at this time are not only local businesses but also foreign firms since entering WTO of Vietnam. rate, natural calamity, etc are latent threats for developing tourism. Price and money are always the first anxiety of customer. At present, nations overcame crisis period and threats were stabilized.
PYSs target market has a big number. Those The number of competitors is not small.
Condition of social gets better and better, thus Unstable politics, fluctuation of exchange Human being nowadays works harder and harder, thus, after working hour, they need time to relax and need a place to entertain. Forms of services also increase because of this reason. Tourism received the care of Government in growing as well as expanding market by constructing developing strategy. Recognizing advantages of this nonsmoke industry, Government support VND750 billions for 59 provinces and cities to improve infrastructure from 2001 until now (Ha, N., 2008). Vietnam entered WTO, friendly relations are also enlarged compared with in the past. In 2007, the number of traveler came to
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Vietnam is about 4,171,564 people; it went up 16.0% compared with in 2006. In 2008, that number increased to 4,253,740 (vietnamtourism.gov.vn, 2009). people
After defining strengths, weaknesses of company, directions as well as objectives to overcome weaknesses and maintain strengths are really necessary.
Recommendation & suggest solution overcome the weakness

PYS Travel Company must appropriate actions to defeat the disadvantages and improve the advantages that company currently has. The first weak point is about fund. The business needs a strategy because is necessary for every institution that wishes to achieve its goals, or for successfully completing a specific project. A strategy can be used to increase the probability of a project's success and to overcome resistance to change(erc.msh, n.d). Resolving this problem has many ways, but to have effect, PYS should follow these steps: Invest time to make plan: did we use fund effectively and reasonable? If it was wrong, we should fix it in this fund scale. Then think that what should be invested much more, what should be invested less. Discuss and decide a specific plan for each part. Research and inquire the other company in same field. Choose suitable funding channel: it depends on when is its deadline? How much is interest rate? Towards small business enterprises, PYS should choose banks for lending with 8% interest rate and deadline within 1 year. After borrowing with interest, PYS also need to think: how to mitigate financial trouble such as reducing debt and increasing sales as much as possible. Record financial information annually, feedback from employees monthly is the good solution of getting rid from trouble and making future plan. Always understand how good
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company is, what weakness should be fix are the benefit of often recording information. After that, forecasting technique will be useful for expand PYS Travel. The second one related on marketing strategy. The Vision is created because it set up the desired future of the institution, integrating the needs of both staff and users (erc.msh, n.d). By using SWOT analysis, PYS has a clear look about the situation of its business and the common market; also find a target market of the business. PYS did not focus on traditional advertising methods, such as: advertising on TV, radio, newspaper, etc. Beside that, PYS choose non-traditional one be its marketing strategy because its target market is young people who use Internet frequently. Therefore, PYS should exploit and make full advantage of this field. There are many ways for PYS to make choice and refer to. Those are using Internet technology, word of mouth, stickers, pop-up ads, peer marketing, and so on. Both of them have advantages like flexible, low cost, targeted and simple. To apply in situation of PYS, before-sale, PYS has website and face-book or fan-page to popularize its image as well as information of each trip about time, place, activities in tour, etc. And about after-sale, aimed at maintaining loyal customers, connecting members together, PYS also form associations for everyone. Holding events, offline meeting are taken place more usual. As a consultant, PYS should have compliments, happy birthday, and so on for members or old customers through e-mails by using CRM software. As a result, customers would love PYS more than. The last one is about human resources of PYS Travel Company. To better employees, PYS should provide training course strategies for them. Through the training courses, they will be creating dynamic, creative, innovative in process of working and flexible in doing their jobs. With the high levels of education, workers can apply their knowledge to make their job more efficiency and effectively. During the working process, the problem of fixing and causes will be found quickly base on the Maslows hierarchy of needs.
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Figure 1: Maslows Hierarchy of Needs (original five-stage model) According to the establishing process, PYS has made satisfied employees with Physiological needs. PYS provided them job, stable salary, safety needs, buy insurances, etc. And now, the company should satisfy their self-esteem needs and self-actualization needs to workers. Training strategies are to make employees have more knowledge, skills and experiences to deal with competitive environment. Staff should be trained by to register an extra-class about tourism or invite a teacher to come to teach. Using that way the company has to motivate employees positively. As a result, PYS will attract more people apply, especially about young ages because they usually like a new environment and new working style. More over, knowledge and good communication that tour guide own will even pleasure strict customers. By this way, everyone feel happy in choosing service of PYS. Apart from that way, PYS can encourage employees by factfinding trips aimed at gaining knowledge about nature, nation as well as people in Vietnam and South-Asia, improve their faculty of exchange. The ways in which existing performance could be maintained and strengthened Staff both is young, friendly, and has good communication skill. As mentioned above, PYS should focus on training their employees through training strategy based on Maslows hierarchy of needs. More specifically, we will base on a series of 5 tests for valuable resource of Collin and Montgomery. However, with this situation, PYS should apply 2 tests for valuable resources as in the following.
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Inimitability: It is difficult for other company to copy skill, ability of each employee. PYS should keep talent staff or training them by studying through fact-finding trips. Therefore, they can both travel and learn about country and human in Vietnam or other countries in South-Asia. Durability of resources: PYS should build a team spirit in the company. It would help increase the chance of successful performance and winning of work as a team. There are 4 factors of team spirit, like: the combination of trust, respect, interconnected and enjoyment, feeling of loyalty, desires to work as a team and dedication of individual (BBP Professional Education, 2004, p.26). The leader should point out each member the responsibility for objectives, competences and resources needed to realize their shared vision clearly. As a result, PYS can create loyal member by signing long-term contract instead of temporary one. Furthermore, it will make a security for staff to work without stress. There are several ways to keep employee and promote their spirit. Build your brand is one of those ways. PYS is a company facing the customer directly; so having a dress code where all employees wear corporate logo shirts is a great way for employees to literally wear their pride. Not only do corporate logo shirts promote the company from within, but when employees go out, they could promote your business to the outside world as well (Andrew, R., 2008). Procedure in registering is very fast and handy. Take full advantage of technology information in advertising and improving work. The relationship which PYS builds with its customer is the key of earning profit. These 3 strengths might be added up to maintain and improve together because the registering procedure depend on technology and the relationship between PYS and customer may also bettered by technology. The consumer target theory provides that consumer branding strategy and marketing strategy will focus on the use of resources to targeted customers. Customer segmentation
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theory' through customer segmentation and allow enterprises to understand who is the target customers, target customers of the consumption patterns, to focus resources on the target customers for marketing (hi138, n.d) Hence, this part just focuses on applying technology effectively. As mentioned above, playing as a consultant of PYS, I recommended using CRM software. CRM, or Customer Relationship Management, is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time (destinationcrm.com, 2010). It helps the company keep contact with customer by sending Happy birthday or Happy new year card, etc to develop stronger relationship with them.
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About procedure in registering, customers can order first before paying cash. In addition they could transfer money to bank account of tour leader instead of going to the company. Now, there should be many ways to order like sending message, making a call, or using Internet. Providing a survey or collecting feedback is also an important factor in making customers satisfy with services of company. Cost of tour is cheap suitable with students or pupils. When customers have pleasure with price of service, PYS should care about input of the company. That is partners like hotels, restaurants, etc. PYS should apply The Five Forces Analysis to gain the best quality of benefits. It is about: The threat of new entrants into the industry The threat of substitute products or services The bargaining power of customers The bargaining power of suppliers The rivalry amongst current competition in the industry (BPP Professional Education, 2004, p.35)
Figure 2: The five competitive forces
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At this time, situation of economy has many changes: price of gold increase highly, price of petroleum also go up constantly. For example, on 11 November 2010, gold was sold 36 million a tael, however, on the following morning, golden price decrease by 35 million a tael. It is still consider as a record in golden price in the past years. This is a reason that makes suppliers increase their price. More important, household expenses are brought about. People have to tighten their wallet, especially students, the main target market of PYS. Face the worry of losing customer as well as the increase in services price, PYS has to have policy to keep customers. More promotion for each tour is brought out constantly is also a method aimed at decreasing Price fever, increase competition between other service at the same time. For example, discount 40% for a 4-people group; attractive awards for activity in each tour by cash or voyage. In addition, PYS cannot but care about long-term relation with suppliers so that they can supply suitable expense for each tour, which creates an interest for 3 parties: customer can have service with competed price, supplier and distribution both sell product.
Suggest new areas for expansion with justifying suggestions

Be able to develop in the travel market, PYS need to bring out another service. As a consultant of the business, I suggest PYS hold exchanges combination with travel for foreign friends from South Asia countries. More particular, making a schedule and inviting guests from everywhere in the world, such as: Thailand, Laos, etc to communicate and exchange culture aimed at connecting young people. For instance, the company can invite foreign friends to Business Performance Review and Strategy Proposal - 43 -
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discuss about Buddhism with topic Buddhism and Business by visiting pagodas or Buddhist temples in Vietnam. The development and expansion plan and all strategies for the new opening service need to be mentioned given suggestions in order to get the most effectiveness. It includes advertising, promotion, design, rent expenses, etc. The Ansoff Growth Matrix is a tool that helps businesses decides their product and market growth strategy. It suggests that a business attempts to grow depend on whether it markets new or existing products in new or existing markets (tutor2u, n.d). In the above parts, it is mentioned about improve existing products in existing markets. Therefore, in this part, it is just analyzed new products in existing markets and new markets or existing products in new markets. However, to reduce risk in market, PYS should just apply new products into existing market. It means Product Development. Business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets (tutor2u, n.d). Luckily, this new service of PYS is very unique in the market: holding tours for foreign students to visit culture and people in Vietnam. It still keeps nature of PYSs service: fast tidy saving. Customer object PYS aimed at is young people, their age about from 20 to 25 years old. Joining this service, young friends can experience manners and customs, taste traditional foods of Vietnamese. The trip may extend in about one week for tourist has enough time to enjoy. Furthermore, PYS create a chance for young friends in Vietnam to try the strength of being a tour guide. They will participate in and discuss with foreign friends together. This is a good chance for people who want to improve their communication as well as their language. With the advantages above, if the firm applies this new service, it is believed that young people in both Vietnam and South Asia nations will give a warm welcome towards trips.
The current situation of business

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PYS Travel Company is just a small business, so it must try more to compete with other travel company. About human resources, PYS should recruit more people for tour guide position. With the resource of cheap, quality and reliability labor, PYS should make the choice carefully and recruit staves that have enough conditions as in following: good communicate, good appearance, can speak English fluently. In the first one year, PYS can use the psychological and safety needs in the Maslows hierarchy of needs to satisfy the basic demands of employees. Their salaries must be stable according to the average of business. Owning a stable salary, staves will not be worried and concentrated on their work. If they have problems, they can spend according to their means, and the company will help based on policies of employees. Moreover, there is also the policy to reward for ones who perform their work well aimed at encouraging them work harder and PYS Travel can get the big sale contract with customers.
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Conclusion
Based on information analyzed and investigated above, it is believed that PYS Travel Company is a successful business with quality service. However, PYS is just a small business, so it has not enough fund in investing service and products. PYS must appropriate actions to overcome the weakness such as lack of talent, lack of marketing plan, and lack of fund. Each action must be analyzed advantage and disadvantage affect to its business. On the other hands, the right advice, loan or grant at the right time can help a company deal with tough problems. Solution for PYS is logical strategy help for companies to maintain current position and strengthening. The PYS should be use resource-based strategy to manage human resource efficiency is training employee. Furthermore, PYS should survey and collect information of other companies in tourism. Lastly, this firm should be use marketing strategy: guerrilla marketing absolutely at present to save money and time. In addition, PYS should be suggested for new areas for expansion. PYS should bring out more service such exchange combine with travel in exist market. Furthermore, PYS have to deploy a human resources evaluation about performance of employee to motivate them in working. Lastly, PYS also need to prevent preventing the cash flow confusion and increase turnover by marketing but improve minimize the unnecessary costs for PYS travel company.
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References
1. Andrew, R. (2008). How Encouraging and Motivation of Team Members Increase Performance. Retrieved April 8, 2009, from http://ezinearticles.com/?How-EncouragingAnd-Motivation-Of-Team-Members-Increase-Performance&id=928259 [ accessed 08 April 2009]. 2. BPP (2004) Working with leading people, 1st, ed, published in London, printed in WMP. 3. BPP professional education, (2004). Business Strategy, 1st, ed, published in London, printed in WMP. 4. Collis, David J.; Montgomery, Cynthia A. "Competing on resources: strategy in the 1990s", Harvard Business Review, v73, n4 (July-August, 1995):118 (11 pages). Destinationcrm, (2010), what is CRM?, [online] Available at: [http://www.destinationcrm.com/Articles/CRM-News/Daily-News/What-Is-CRM46033.aspx] [accessed on 14 November 2010]. Dulichtrongoi, En.wikipedia, (n.d), (n.d), Hanoi Sapa Hanoi Tour, [online] Available Available [accessed on at: at: 15 [http://www.dulichtrongoi.com/index.php] [accessed on 14 November 2010]. Promotion marketing, [online] [http://en.wikipedia.org/wiki/Promotion_%28marketing%29] November 2010]. 5. Eng.hi138, (2004), Customer segmentation theory, both negative and positive view of, [online] Available at: [http://eng.hi138.com/?i192075] [accessed on 15 November 2010]. 6. Erc.msh, (n.d), Marketing change, [online] Available at: [http://erc.msh.org/quality/mktchng.cfm] [accessed on 15 November 2010]. 7. Ha, N., (2008), Du lch ngnh cng nghip khng khi: Tim nng khng gii hn, Tourism non smoke industry: Unlimited potentiality, [online] Available at: [http://taichinh.saga.vn/kinhte/dautu/7200.asset] [accessed on 13 November 2010]. 8. Matt, (2009), Competitive Advantage Example, [online] Available on at: 10 [http://www.sayeconomy.com/competitive-advantage-examples/] November 2010]. Business Performance Review and Strategy Proposal - 47 [accessed
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9. Sean, R.,, (2009), Using Customer feedback to your advantage, [online] Available at: [http://seanseo.com/internet-business/using-customer-feedback-to-your-advantage/] [accessed on 15 November 2010]. 10. Tuanxipo, (2009), Ngnh Du lch Vit Nam c nhiu trin vng pht trin, Vietnam Tourism has many chances to develop, [online] Available at: [http://tuanxipo.wordpress.com/2009/07/14/nganh-du-l%E1%BB%8Bch-vi%E1%BB %87t-nam-co-nhi%E1%BB%81u-tri%E1%BB%83n-v%E1%BB%8Dng-phat-tri %E1%BB%83n/] [accessed on 15 November 2010]. 11. Tutor2u, 2010]. 12. Vietnamtourism.gov.vn, (2009), So lieu nam 2008, Data in 2008, [online] Available at: [http://www.vietnamtourism.gov.vn/index.php?cat=202025&itemid=5824] [accessed on 13 November 2010]. Webopedia, (n.d), After sales support, [online] Available [accessed on at: 15 [http://www.webopedia.com/TERM/A/after_sales_support.html] November 2010]. (n.d), Ansoffs market/product matrix, [online] Available at: [http://tutor2u.net/business/strategy/ansoff_matrix.htm] [accessed on 15 November
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Small Business Enterprise

Business Performance Review and Strategy Proposal