personal paper 2

8/4/2019 Personal Paper 2

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Student name: Nguyen Tuan Trung

Student ID: CQ511024

Student email: [email protected]

Lecturer: Dr. Noel Jones, PhD

Course title: Operations Management

Date: August 22th, 2011

Topic 1: Service Partnership

Nh Bn (Your house) is an interior designing consulting firm which runs business on the fieldof consulting about designing, producing and distributing interior goods. Business owner, Mr.Nguyen Van Thien started his business in order to keep up studying in Ho Chi Minh City. Fromalmost nothing, he has built up a successful interior firm in Da Nang.

From 1994, Mr. Nguyen Van Thien started the job of designing hoarding and billboard for thecoffee shop he had worked before. Many people praised him and willing to pay him to designand make the billboard for them. Since there were too many people hired him that made himrealized that this is a good opportunity for him to start his own business. He rented a small housewith only 50m2 in 1995 and made his first step in his successful business in both manufacturingand service. The first 3 employees are his friend studied with him when he was in college.Fortunately, advertising was a new concept for many people in Vietnam at that time. Therefore,there were only a few competitors and they did not focus on small orders. As a result, the

average annual turnover in this period is 600 million VND with the net profit of about 250million VND (ADB bank 2006, p. 39). In the period of 1997 to 1999, Mr. Thien hired a biggerplace to expand his business. At first, he focused on designing interiors and furniture for theclients. However, he found out that the clients want an all-in service package of designing,executing and decorating the house which can create a unique architecture style and interiordecoration. Therefore, Mr. Thien decided to provide an in-house construction service andemployed more workers. The average net profit of his business in this period is estimated 500million VND. In 2000, Mr. Thien moved his business in Ho Chi Minh City to Da Nang and heopened an interior manufactory and 2 interior stores since the clients claimed that they want tohave the decoration inside the house to be unique with unique furniture which is made only forthem. He said he want to provide a total package service, therefore a manufactory is necessary in

order to provide a product which suits the idea of the designer.Nha Ban is an interior design consulting firm that can be listed as Service Partnership Companybecause the services provided is highly customized as the clients ordered and the process ofdesigning and consulting need to have a high customer involvements to evaluate the finalproduct they will get.
mailto:[email protected]:[email protected]


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Topic 2: Location

Highlands Coffee

Founded by Mr. David Thai, Highlands Coffee, a brand of Viet Thai corporation, has becomeone of the most popular and successful chain - coffee shop in Vietnam in recent years. Mr. Thaiis born in 1972 and he moved to Seattle in 1978. He witnessed the success of Star Buck Coffeewhich made him decide to come back to Vietnam and start his business. In 1996, he opened acoffee shop named Au Lac and started studying Vietnamese (he is an overseas Vietnamese)and Vietnamese culture in order to open a coffee shop with the hope of bringing Western cultureto Vietnamese people. In 2000, Highlands coffee became the first private Company registered asjoint stock Company in Vietnam. At this time, the company launched the roasted and groundcoffee package to the market through the high standard hotels and supermarkets. In 2002, thefirst coffee shop is opened in Ho Chi Minh City which marked the continuous grow of thecompany. In 9 years, from only 2 coffee shops in HCM city and Ha Noi, Highlands coffee hasnow grown to nearly 100 coffee shops all over Vietnam.

There are nearly 30 Highlands coffee shops in many big building in and crowded streets in HaNoi such as Ha Noi Tower on Hai Ba Trung Street, Vincom Tower on Ba Trieu Street, 34 ThanhNien Street or Highlands coffee shop near Ha Noi opera house. The key of Highlands success isa good location strategy applied for all the coffee shops. In 2002, at the time Highlands coffeefirst introduced in the market, there was a chain coffee shops named Paloma which havetargeted customers are business men with the need of a formal and quite place to discuss and talkbusiness. However, after moving to Vincom tower, Palomas reputation was fading away. Onthis occasion, Highlands moved a big step and tried to earn reputation by targeting not onlybusiness men but also office workers and staffs who also need a quite place to relax afterworking time (Thuy Lan 2009). Therefore, Highlands Coffee shop in Vincom and Ha Noi Towerwas opened and this decision was a brilliant move of Viet Thai corp. Vincom Tower is the most

popular shopping mall in Ha Noi while Ha Noi Tower has a huge number of offices from many big company and organizations in Vietnam with high purchasing power. Both of the twobuilding are located in the centre of Ha Noi which is an ideal location for customers to come andenjoy a cup of coffee with variety of food and other drinks. After the success of two coffee shopsin Vincom and Ha Noi Tower, Highlands decided to expand the business by targeting thecustomers who are neither business men nor office staffs but they still need a place to refreshthemselves. Therefore, Highlands Coffee needs to find a place which is also quite and have agood view. Consequently, Highlands on Thanh Nien Street was opened and it is an ideal placefor customers who seek for romantic and peaceful place. Highlands coffee shops is also veryattractive for customers due to the convenient of the location even though the cost of renting isvery high which can also make the price of service higher.

Intimex

Intimex is one of the most successful supermarket chains in Vietnam. Intimex brand name hastaken its position in the field of import-export and supermarket after 32 years operating.However, success cannot be easily attained.


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It can be said that supermarket business is the most successful operation area of IntimexCorporation in which most of the corporations reputation is gained with the total of 5supermarkets in Ha Noi and other 9 supermarkets located in different cities in Vietnam. IntimexDinh Cong supermarket is one of the 5 supermarkets of Intimex supermarkets chain in Hanoi butit cannot be as successful as expected.

Located in Dinh Cong Street with the high level of population density, Intimex Dinh Congsupermarket lies near many new resident areas such as Dinh Cong, Linh Dam, Dai kim, andexpected to be as successful as other Intimex supermarkets. However, the location decisions andstrategies are not effective. At the time Intimex Dinh Cong was opened, the second floor of 96Dinh Cong building is rented with the total area of 1500m 2. However, after only 2 yearsoperating, the supermarket had to move to the ground floor of the building and reduced the usingarea to only a half because the number of customers comes to the supermarket did not meet thesales target. Therefore, the supermarkets scale is reduced. Intimex Dinh Congs locationstrategy is not well designed that they did not know the true purchasing power of people living inthat area. Customers are used to go to the private shops and stores which are more informal andcheaper in price of goods. Moreover, the power of the competitors is not well defined. The pricefor the same goods in other supermarkets is cheaper and they offer more promotions. IntimexDinh Cong can be considered as the typical example of poor location strategies have been made.

Topic 3: Layout strategies

Kichi kichi hot pot vs Gia Khanh mushroom hot pot

Kichi kichi hot pot and Gia Khanh mushroom hot pot are the two famous brand of hot potrestaurant in Vietnam. However, there are many differences in the way they do business and the

value the two restaurants want to bring to their customers. The biggest and obvious difference isthe layout strategy used to make these two competitors have competitive advantages over eachother.

Kichi kichi is the first chain hot pot conveyor restaurant in Vietnam which earned its reputationby differentiating with other hot pot restaurant in the market. The first Kichi kichi restaurant wasopened in February 2009 and the number of Kichi kichi restaurant available in Vietnam is 11 atthe moment. It brings to customers new experience about being served traditional Vietnameseand Japanese food. The customers can enjoy 6 different kinds of hot pot bouillon and over 100kinds of food which are preliminary processed before being served. The layout of Kichi kichi is

conveyor. Customers can choose the hot pot bouillon they want and then choose which food theywant to eat when it is brought by the conveyor belt to them. The advantage of this kind of layoutis the bigger number of customers can be served. Moreover, customers have more options inchoosing the variety of food they want to eat which is not depend on the menu from thetraditional kind of layout. However, this type of layout also has disadvantages. When customersknowing each other come together, it is hard for them to have a talk with other people. Anotherdisadvantage is that the nearer the customers sit to the cook, the better of food they will get.Customers who sit far from the cook may not possible to eat the food they like.


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Nh hng lu nm Gia Khnh l mt trong nhng nh hng lu ni ting nht Vit Nam ti thiim hin ti. Lu nm Gia Khnh b tr v sp t gh ngi theo kiu truyn thng, tc l lngkhch n vi nh hng s ngi ti mt bn vi s lng ngi nht nh (thng thng s l 6ngi/bn) v s chn loi lu m tt c mi ngi u ng . Khch hng thng thc lu tinh hng c th d dng ni chuyn, trao i vi nhau v tt c mi ngi u ngi trong mt

khng gian hp hn. Tuy nhin hnh thc b tr ny li mang ti s g b nht nh i vikhch hng ng thi khng th hin mt s tin dng v a ging trong chng loi thc n vphong cch phc v ging nh kiu ngi bng chuyn ca nh hng Kichi kichi. Kh c th nic rng kiu b tr no tt hn bi c hai nh hng Kichi kichi v lu nm Gia Khnh u t c s thnh cng nht nh.

Gia Khanh mushroom hot pot is now one of the most famous hot pot restaurants in Viet Nam. Ithas table arrangement following the tradition way, it means that the customers come the therestaurant will sit in the table with a constant number of people ( normally 6 people per table)and will choose the type of hot pot that everyone agree. Customers can easily talk to each other because everybody sits in a narrower space. However, this arrangement may causeuncomfortable feeling to the customer and it can not offer variety of food like the Kichi kichi hotpot. It is hard to say which one is better because both of the restaurants have been achieving acertain success.


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Reference:

ADB bank, 2006. Con duong doanh nhan (business man path). Hanoi: ADB bank

Thuy Lan 2009, David Thi v Highlands Coffee (David Thai and HighlandsCoffee), VnEconomy, retrieved August 26th 2011 via
http://vneconomy.vn/2009061502309198P0C5/david-thai-va-highlands-coffee.htmhttp://vneconomy.vn/2009061502309198P0C5/david-thai-va-highlands-coffee.htm

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