Diploma in Business (PDF)

ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 32: Business Strategy (574)
Submission date 18/06/2021 Date received (1st submission)
Re-submission date Date received (2nd submission)
Student name NGO HOANG ANH Student ID GBH190038
Class GBH0904 Assessor name DO THACH ANH
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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand
that making a false declaration is a form of malpractice.
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Anh
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Table of Contents
I. Introduction.........................................................................................................................................4
II. Identify the strategic capabilities of Binh Minh Plastic Joint Stock Company by using benchmarking,
the value chain & the value system.............................................................................................................4
1. Strategic Capabilities.......................................................................................................................4
1.1. Definition.................................................................................................................................4
1.2. The capabilities of Binh Minh Plastic Joint Stock Company.....................................................6
2. Benchmarking analysis....................................................................................................................8
3. Value chain analysis.......................................................................................................................15
3.1. Primary activities...................................................................................................................16
3.2. Support activities...................................................................................................................24
III. Carry out the strategic capability analysis by using VRIO framework............................................29
1. Strong and sustainable financial resources....................................................................................31
2. Production process........................................................................................................................32
3. Distribution network......................................................................................................................33
IV. Identify and analyze the main strengths and weaknesses that the Binh Minh Plastic Joint Stock
Company is currently having.....................................................................................................................34
1. Strengths.......................................................................................................................................34
2. Weaknesses...................................................................................................................................37
V. Inconclusion.......................................................................................................................................39
Bibliography...............................................................................................................................................40

I. Introduction
The market constantly appears new companies and changes business trends which making
businesses always have to innovate and create. A business strategy is built up not only for the
purpose of capturing markets and customers, but also to be competitive with competitors.To
build an appropriate business strategy, businesses need to understand the company's resources
to assign and allocate human and financial resources to implement specific tactics. Therefore,
this report will focus on analyzing the internal factors of Binh Minh Plastic Joint Stock
Company. The data and information will be updated from reliable sources and divided into 3
main parts: Outline of strategic capabilities, Analysis of strategic capabilities and Analysis of
strengths and weaknesses.
II. Identify the strategic capabilities of Binh Minh Plastic Joint Stock
Company by using benchmarking, the value chain & the value
system
1. Strategic Capabilities
1.1. Definition
Strategic capability includes resources and competences that a firm utilises to contribute to
its long-term survival and compete in its business environment. It can therefore constitute a
firm’s strengths and weaknesses, and be a source of competitive advantage or disadvantage
over its rivals (Whittington et al., 2017).
Certain assets are used by the organization's activities and processes. These assets are
referred to as resources. Within the organization, these resources can be created. These
generated resources are unique to each organization. Otherwise, they could be
obtained from external suppliers in the resource markets. Also resources can be broadly

classified as tangible and intangible. The physical assets that an organization possesses
are called tangible resources. The physical resources, human resources and final
resources come under this category. The intellectual resources, technological resources
and the organizational reputation together form the intangible resources (Prachi, 2015).
An organization should posses some good characteristics in order to have the ability to
compete with other organizations in the market place. These characteristics form the
competencies of the organization. For any organization to survive in an industry
competencies are must. At the same time competencies cannot be useful to an
organization when they stand alone. It is when they combine together in the right
combination that they help the organization to attain competitive advant age (Prachi,
2015).
There are various definitions of dynamic capabilities from various authors, each with their
own point of view. Teece et al. define dynamic capabilities as a firm's ability to integrate,
build, and reconfigure internal and external competencies in response to rapidly changing
environments. Processes within the firm that use resources – specifically, processes to
integrate, reconfigure, gain, and release resources – to match or even create market change
(Teece, Pisano and Shuen, 1997). In a nutshell, dynamic capability is an organization's ability
to renew and recreate its strategic capabilities in response to changing environments.
Threshold capabilities are the minimum capabilities needed for the organisation to be able
to compete in a given market .
An organization’s resources which are critical in imparting it with competitive advantage are
called distinctive capabilities. When the capabilities originate from an attribute which other
firms do not have then they form an organization’s distinctive capabilities. In addition to
having a distinctive characteristic it should also be sustainable and appropriable (Prachi,
2015). Competitive advantage is explained by the distinctiveness of capabilities:
Distinctive resources are indispensible element of organization to create competitive
advantage. These unique resources should be hard to imitate or obtain. A powerful

brand can be seen as a distinctive resource for organization as it cannot be imitated
easily (Johnson, Scholes and Whittington, 2008). A powerful brand related to a long
term development of culture and history of organization.
Distinctive competences are the ways of doing things that are unique to that
organization and effectively utilized so as to be valuable to customers and difficult for
competitors to obtain or imitate.
Core competences refers to a firm’s know-how that allows it to integrate its skills, activities
and resources to offer its best services, processes and products to customers, thus
obtaining competitive advantage and potentially, can be extended and developed as
markets change or new opportunities (Enginoğlu and Arikan, 2016).
1.2. The capabilities of Binh Minh Plastic Joint Stock Company
ResourcesCompetences
Number of employees over
1.400 people 47% of employees have vocational
certificates and higher
Dynamic
capabiliti
es
Production infrastructure BMP owns 2 representative offices
and 4 large production factories.
BMP's infrastructure capacity is
relatively solid
Product quality - BMP's products are always
improved and more diverse than the
market.
- In 2018, BMP's products were
awarded the Asia - Pacific
International Quality Award
- BMP is awarded the National

Quality Gold Award in 2017.
New management system - The system is optimized for
information technology.
- BMP uses the overall management
of enterprises ERP - the system
selected based on the technology
platform of Oracle EBS solution, one
of the leading solutions in the world
today.
- BMP uses intelligent reporting
system to serve leaders.
Threshold
capabiliti
es
Administration apparatus BMP is run by talented
administrators. Headed by the
General Director - Nguyen Hoang
Ngan, who was voted as the Typical
Young Enterprise of Ho Chi Minh
City in 2002, was repeatedly
selected by the Ministry of Industry
and Trade as an emulation soldier,
and in 2012 was awarded a
certificate of merit by the Prime
Minister.
Organizational structure BMP has a full range of functional
departments to facilitate
development, work processing, and
maximum efficiency in production.
Distinctiv
Production process - BMP became the first and only
manufacturer in Vietnam certified

e
capabiliti
es
by WRAS to successfully apply the
latest additive system.
- BMP has introduced 13 automatic
manipulators into the production
process (robots) on the injection
molding machine and is expected to
add 50 robots in 2021.
Long-standing brand
reputation
- BMP has been operating for over
40 years.
- BMP achieved many great
achievements such as the Labor
Medal, the Independence Medal, ...
- For the 5th time in a row, BMP was
honored in the List of 50 Leading
Brands organized by Forbes
Vietnam.
Strong and sustainable
financial resources.
- Revenue and profit increase
steadily every year.
- Low loan rate.
- High payment capacity.
- Financial resources focus more on
development investment.
(BMP, 2021).
2. Benchmarking analysis
With a fast development speed, the plastic industry is being considered as a dynamic
industry in the Vietnamese economy. That growth comes from a large, potential market.
According to statistics of the Vietnam Plastics Association (VPA), currently the plastic
industry is close to 4.000 enterprises, of which the number of enterprises in the
construction plastic segment is smaller but generates the highest revenue scale – as of 2019