Improvement in service quality of Duc Viet cargoteam forward to the international intergration trend

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STATEMENT OF AUTHENTICATION

We declare that all materials presented to Solvay Brussels School of Economics

and Management are our own work, gathered, and utilized especially to fulfill the

purposes and objectives of this study and specifically acknowledged wherever

adapted from other sources.

We understand that if at any time it is shown that we have significantly

misrepresented materials presented to Solvay Brussels School of Economics and

Management, any degree or credit awarded to us on the basis of that material may

be revoked.

Academic Tutor : Asso. Professor NGUYEN MINH HA

Practicing tutor : Mr. HUYNH MINH NHUT

Class : MMCoM9

Students :

DANG THU LIEN BUI TRINH THAO NGUYEN

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ACKNOWLEDGEMENTS

Firstly, we would like to use this opportunity to send our sincere thanks to all of our

Professors from Solvay Brussels School Economics and Management who teach

us very dedicatedly and enthusiastically during the time we study in MMCoM9.

Secondly, we would like to express our deep gratitude to our advisor - Professor

MARIANNE CLAES, the Academic Tutor – Asso. Professor NGUYEN MINH HA

and the Practicing Tutor - Mr. HUYNH MINH NHUT for their conscientious

guidance and very detailed instruction.

We also would like to show our gratefulness to the Board of Director, colleagues

and staffs in DUC VIET CARGOTEAM who assist and allow us to use all

materials, documents, data, statistics, images and information of the company for

this project

We are especially thankful to our families for their great support us from the

beginning to the end of the course.

Finally, thanks a lot for the kind contributions from all of the administration people

in Solvay Ho Chi Minh, the MMCoM9 classmates and friends who discuss and

share the valuable ideas with us as well as encourage us to finish this project.

Once again, thank you very much for all your nice assistance, we always keep all

in our heart.

DANG THU LIEN

BUI TRINH THAO NGUYEN

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EXECUTIVE SUMMARY

The economy of Viet Nam now is integrated internationally. Particularly for

logistics industry, this trend creates opportunities for businesses to export and

import goods with low barriers to entry. However, this leads to the establishment of

new freight forwarders and foreign companies enter Viet Nam’s market easily.

Therefore, the market competition becomes fiercer and Cargoteam has to improve

the service quality forward to the international integration trend to win the market.

This project will investigate the problems that Cargoteam is facing internally and

externally by evaluating the primary data and the secondary data, PEST analysis,

SWOT analysis and Servuction system. On the other hand, five dimensions of

Servqual model will be emphasized during the project to measure the difference

between customers’ expectation and their perception after using service. Basing

on the analysis of these details, there are some problems as followings:

- High competition in the market: customers have various choices in service.

- Employee performance: employee’s knowledge does not meet customers’

expectation.

- Customer turnover: the number of customers left Cargoteam was high.

- Mistakes occurred in working process.

According to the stated problems, the project points out two main solutions and a

recommendation to improve the service quality for Cargoteam:

- Improve employee performance internally and externally: open training courses,

create KPI and quarterly examination to track employee’s knowledge.

- Apply high technology (management software): avoid manual mistakes and

make the working process more accurate and faster.

- Establish an additional service: the consultancy service, specializing in

EVFTA/TPP.

These solutions may take a certain period to come to practical actions because

Cargoteam does need the specific time for training staffs and Cargoteam has to

build the KPI carefully. Moreover, the management software will require the

creators having excellent understanding about the working process of Cargoteam.

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TABLE OF CONTENTS

STATEMENT OF AUTHENTICATION........................................................................................ 1

ACKNOWLEDGEMENTS.............................................................................................................. 2

EXECUTIVE SUMMARY ............................................................................................................... 3

TABLE OF CONTENTS................................................................................................................. 4

CHAPTER 1: INTRODUCTION.................................................................................................... 6

I. COMPANY OVERVIEW.................................................................................................... 6

1. Cargoteam’s background information..................................................................... 6

2. Mission, Objective and Goal ...................................................................................... 7

3. Milestone ......................................................................................................................... 7

4. Services availability...................................................................................................... 7

5. Market Share................................................................................................................... 8

6. Cargoteam’s competitor analysis............................................................................. 8

7. Financial analysis ......................................................................................................... 9

II. PROJECT FOR THE IMPROVEMENT IN SERVICE QUALITY OF CARGOTEAM

FORWARD TO INTERNATIONAL INTEGRATION TREND ............................................. 10

1. Reasons for Proposing the Project........................................................................ 10

2. Project Objective......................................................................................................... 10

3. Research methodology.............................................................................................. 11

4. Project limitation ......................................................................................................... 11

5. Project structure.......................................................................................................... 11

CHAPTER 2: LITERATURE REVIEW ...................................................................................... 12

I. SERVICE QUALITY DEFINITIONS .............................................................................. 12

II. SERVQUAL MODEL....................................................................................................... 12

III. ANALYTICAL METHODS .............................................................................................. 14

1. PEST Analysis.............................................................................................................. 14

2. SWOT Analysis ............................................................................................................ 14

3. Consumer Decision Making Process..................................................................... 15

CHAPTER 3: ANALYSE THE SERVICE QUALITY OF CARGOTEAM ............................. 17

I. RESEARCH METHODOLOGY...................................................................................... 17

1. Secondary Data ........................................................................................................... 17

2. Primary Data................................................................................................................. 17

II. PEST ANALYSIS............................................................................................................. 23

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1. Political .......................................................................................................................... 23

2. Economic....................................................................................................................... 24

3. Social.............................................................................................................................. 24

4. Technology ................................................................................................................... 25

III. SWOT ANALYSIS............................................................................................................ 25

1. Strengths....................................................................................................................... 25

2. Weaknesses.................................................................................................................. 27

3. Opportunities ............................................................................................................... 28

4. Threats ........................................................................................................................... 28

IV. SERVUCTION SYSTEM ................................................................................................. 29

1. Front stage.................................................................................................................... 30

2. Back stage..................................................................................................................... 30

V. SUMMARY OF PROBLEMS THE COMPANY IS FACING...................................... 31

CHAPTER 4: SOLUTIONS TO IMPROVE SERVICE QUALITY OF CARGOTEAM ........ 33

I. EMPLOYEE PERFORMANCE IMPROVEMENT ....................................................... 33

II. INFORMATION TECHNOLOGY ADAPTATION ........................................................ 34

III. OPEN THE CONSULTANCY SERVICE...................................................................... 34

1. Strategy to run consultancy service for Cargoteam.......................................... 35

2. Key Performance Indicator....................................................................................... 36

3. Business Model Canvas for Consultant Service of Cargoteam...................... 37

4. Key HRM Strategies.................................................................................................... 38

CHAPTER 5: CONCLUSION...................................................................................................... 39

APPENDIX ..................................................................................................................................... 40

Appendix A. Survey questionnaire..................................................................................... 40

Appendix B. The survey’s results....................................................................................... 42

Appendix C. Income Statements of Cargoteam 2012 - 2014 ....................................... 44

Appendix D. Information about EVFTA AND TPP........................................................... 46

REFERENCE................................................................................................................................. 52