VIETNAM NATIONAL UNIVERSITY, HANOI
SCHOOL OF BUSINESS
LE THI PHUONG NHI BUSINESS PLAN: QUALITY INSPECTION
CERTIFICATION SERVICE FOR USED CAR
IN HO CHI MINH CITY (2014-2023) Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr. Vu Anh Dung Ha Noi, 2012
vii

TABLE OF CONTENTS ACKNOWLEDGEMENTS i
ABSTRACT iii
TABLE OF CONTENTS vii

2.2.5. Business Model of Used-car Quality Certification service 23
2.3. MARKET ANALYSIS 23
2.3.1. Target customers 23
2.3.2. Market identification and segmentation 24
2.3.3. Competition Analysis 28
2.4. MARKETING ACTIVITIES 31
2.4.1. Service’s substitutes? 31
2.4.2. Pricing 31
2.4.3. Promotion and Brand Development 32
2.4.4. Marketing budget planning 37
2.5. DEVELOPING SALES CHANNELS 38
2.5.1. Direct sales team 39
2.5.2. Strategic sales distributors 41
2.6. MANUFACTURING PLAN 42
2.6.1. Licensed with top used-car certification service company 42
2.6.2. Service procedures 42
2.6.3. Facilities and Equipment required 46
2.7. DEVELOPING HUMAN RESOURCE AND MANAGEMENT 52
2.7.1. Funtional and organizational structure 52
2.7.2. Headcount planning 55
2.7.3. Recruitment and Training 56
2.7.4. Salary and bonus scheme 57
2.8. FINANCIAL ANALYSIS AND PROJECTION 58
2.8.1. Assumption 58
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2.8.2. Cost calculation and funding plan 62
2.8.3. Revenue Projection 64
2.8.4. Profit and Loss (P&L) Forecast 66
2.8.4. Cash Flow Analysis 68

Table 2.8. Technical equipments required 50
Table 2.9. Office equipments and furniture 52
Table 2.10. Scope of work of functional divisions 53
Table 2.11. Headcount plan (2014 – 2023) 55
Table 2.12. Base salary scheme for key accounts (2014) 57
Table 2.13. Financial Assumptions 58
Table 2.14. Assumption on basic fixed cost 59
Table 2.15. Assumptions on cost associated with manpower 61
Table 2.16. Assumptions on other operations fee and contingency fee 61
Table 2.17.Cost of the first 3 years (2013-2015) 62
Table 2.18. Capital funding plan 63
Table 2.19. Revenue Projection (2014-2023) 64
Table 2.20. Productivity management and Sales target (2014-2023) 65
Table 2.21. Projected Profit and Lost (2014-2023) 66
Table 2.22. Analysis of cash flow, NPV, IRR and break-even time 68
Table 2.23. Sensitive analysis of IRR vs. Construction Unit Price and Sales Price 70
Table 2.24. Sensitive analysis of IRR vs. Annual Salary Growth Rate and
Sales Price 72
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Table 2.25. Sensitive analysis of NPV vs. Annual Salary Growth Rate and
Sales Price 74
Table 2.26. Sensitive analysis of IRR vs. Annual Salary Growth Rate and
Sales Price 75

xiii LIST OF FIGURES
Figure 2.1 : Business model of used car quality inspection certification 23

Taking the development trend of developed countries as well as emerging
markets in Asia as a benchmark, it is no doubt that motorbikes will be
constantly replaced by cars and public transportation towards the
development of the socio-economy of the nation.
The Vietnam’s car market, with its recent increase in demand and supply
regardless of economics down-turn, also re-emphasize this trend. Going in
parallel with this development is the business transactions of used-cars. And
one of the key concerns when people buy used car is the reflection of the true
value and the true picture of its quality behind while the sellers tends to hide
the defects or damages of the car. Therefore, used-car quality inspection
service provider as a reliable third-party can help connecting the buyers and
sellers via TRUST and, more importantly, to reduce unexpected accidents/
damages due to insufficient understanding or mistakes on the quality of the
used car.
The idea of used car qualily inspection certification service comes from the
demand of using good-quality used car. So far there is no one in Vietnam
provides this service yet. Used Car Certificate (UCC) Company will be set up
in Q4-2013 to service this untapped market demand. And it is critical to have
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a business plan with which serves as an essential roadmap for UCC to break
into the target market in near term, gain sustainable foundation for business
success in the next 10 years (2014 – 2023) and earn good return on
investment.
In order to work out the business plan for UCC in the period of 2014-2023,
the author has studied and summarized the literature review of business plan,
analyzed the market of this service, worked out the sales and marketing plan,
manufacturing and human resource planning and management, as well as
financial analysis and projection.
The analyzed statistics are collected from a number of sources. The primary

people will search on Internet or advertisements, and then ask their friends
who are knowledgable enough about car to help identify its quality.
It is also important to note down that one of the key concerns when people
buy used car is the reflection of the true value and the true picture of its
quality behind while the sellers tends to hide the defects or damages of the
car. Therefore, used-car quality inspection service as a reliable third-party can
help connecting the buyers and sellers via TRUST and, more importantly, to
reduce unexpected accidents/ damages due to insufficient understanding or
mistakes on the quality of the used car.
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Problem identification
Since the car sellers tend to hide defects or damages of the car, most of the
buyers do not trust the sellers if they don’t have any connections/
relationships with them. In other words, identifying the current status and
quality of the used car is important to the buyers. With a trusted car quality
investigation service, bow the buyers are able to qualify the used car before
before making decision on a considerable deal in terms of value, and more
importantly safety requirement. To a broader view, it also helps to avoid
unexpected accident/damages due to insufficient understanding or mistakes
on the true quality of the used car and its components’ replacement
requirements.
Towards such a fact, from business perspectives, there are two key issues that
need to be addressed. Firstly, there is a need of having a third-party who is
capable and reputable to certify on the quality of used car. As foresaid, this
can help the buyers and sellers gain more confidence on each other. Secondly,
there is a need of an effective online used-car market where buyers and sellers
can easily find each other and trust each other via a network of used-cars
which are certified in terms of origin and quality.
From social perspectives, it is important to note that the project Quality

- Statistical analysis
- Systematic analysis
- Benchmarking
- Qualitative research via in-depth interviews with experts in car
industry and potential customers of this project.
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o Target audience: those who are decision-makers on buying
used cars and those who are car dealers in Ho Chi Minh City.
o Sample size: 10 in-depth interviews
o Response rate: 100%
o Interview method: face-to-face/ site visit
o Expected Outcomes:
 Pain-points when finding a good used car
 Significant criteria when choosing a used car
 Price sensitiveness
Structure of the Research
The research includes two chapters as follows:
Chapter 1: THEORATICAL OF BUSINESS PLANNING
This Chapter introduces key steps of a business plan which sets the
foundation and structure of the following chapter on business planning of
used car quality inspection certification service.
Chapter 2: BUSINESS PLAN OF USED CAR QUALITY INSPECTION
CERTIFICATION SERVICE
This Chapter develops a strategic business plan for this typical
entrepreneurship project – the used car quality inspection certification service,
which includes:
- Section 2.1: Overview of the company
- Section 2.2: Introduction of the service
- Section 2.3: Market analysis

1.3. The importance of a Business Plan
A Business Plan helps to [1]:
* Prevent mistakes
* Identify strengths and weaknesses/challenges
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* Spot and correct errors before they occur * Communicate your ideas to
investors and lenders
* Clarify your product or service
* Establish the break even point of the business and prepare cash flow
forecasts
* Identify any other requirements or needs such as training and finance
* Identify objectives for the upcoming year
* Reveal the timing and location of business development
* Guide the start up of the business
* Evaluate the progress of the business
* Build the entrepreneur’s confidence
* Redirect the entrepreneur to new and or better ideas
* Identify potential customers and strategies to communicate with them
1.4. What are the key aspects of a Business Plan?
Business Plans may differ in the sections that are included. However, there
are some general sections that are required. These include [1, 2, 3, 4]:
- An Executive summary: This is a summary of the information included in
the business plan.
- Company Description: Legal establishment, history, start-up plans, etc.
- Description of the Product/Service: Describe what you are selling. Focus on
customer benefits
- Market Analysis: You need to know your market, customer needs, where
they are, how to reach them, etc.
- Developing Marketing activities: Includes an outline of the marketing plan

o Any contracts in place that might guarantee the revenue stream is
more than just a forecast.
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For a new venture, the executive summary might contain:
 Company information: name of company, proposed legal structure,
current legal structure, minority and majority investors.
 Amount of investment requested
 Expected terminal value
 Description of market opportunity
 Objective reasons why the market opportunity can be exploited by this
particular team
For an internal project plan, the executive summary might look like this:
 Company information: not applicable
 Description of project
 Project mandate: who requested the proposal, who is being assigned to
carry it out
 Strategic, tactical and financial justifications
 Summary of resources needed: staff, funds, facilities
In some cases information will overlap. For example, some of the reasons
why a loan is likely to be repaid might equally as well be used as justification
for the kind of extraordinary return expected by venture capitalists.
In some cases the business plan as a whole contains similar information, but
for one type of plan it is mere detail and for another it is a key decision
making factor. For instance, both start-ups and internal projects need staff and
facilities. However the staffing and facilities needs are considered details in a
plan for start-up financing. In a plan for internal projects they are key
elements and, in fact, may be the only resources needed.
1.4.2. Organizational background
In a written plan, information may appear in a separate section, an appendix,

If the product is a new product with no existing market, one must
identify all substitute products. For each significant substitute product
one must explain:
 Name, features, why substitute, why proposed product better
 Switching costs and why new product justifies switching
 Expected adoption dynamics
 Expected role once market begins to develop (see above for existing
products)
b. Pricing
 Chosen Price points
 Proposed Pricing strategy
c. Demand management
In economics, demand management is the art or science of controlling
economic demand to avoid a recession. The term is also used to refer to
management of the distribution of, and access to goods and services on the
basic of needs. An example is social security and welfare services. Rather
than increasing budgets for these things, governments may develop policies
that allocate existing resources according to a hierarchy of need.
d. Distribution/Positioning
 Distribution strategy
 List of major distributors
 Current status of negotiations
e. Promotion and brand development
 Promotion strategy
1.4.4. Operational plan
The plan outlines how one would service their clients cost effectively.
a. Manufacturing/deployment plan
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 Supply chain requirements

capability to deliver these objectives and understanding of the current
capacity and capability of the organisation. Simple question to ask to assess
the appropriateness of the training - as a result of the training how much
better will the organization be at delivering its objectives. Remember that
training covers a wide range of activities from project work and on the job
training to professional qualifications. Most learning takes place outside of
formal training activities.
e. Intellectual property plan
 Intellectual property inventory
 Portfolio development plan
f. Acquisition plan
Some business plans gain competitive advantage by buying companies up and
down the value chain. Some gain competitive advantage by buying up
companies and consolidating them. Sometimes a business plan will seek to
earn a superior return by adding superior management talent to an existing
weak company.
When acquisitions form a major part of the business strategy, the acquisition
plan needs to be included in the business plan.
 Acquisition strategy
 Proposed acquisition targets
 Effect on market structure (if consolidation plan is being proposed)
g. Organizational learning plan
The organizational learning plan discusses what lessons will be learned from
the marketing, operational, and finance plans and how those lessons will be
consolidated to gain strategic advantage.
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 Market sensing - organization's method for collecting information
about customers (George Day)
 Strategic Staircase - the accumulation of future competencies by

 Annual, quarterly, and monthly versions should be provided
 Graphs of key values often helpful: gross revenue, EBITDA, NPV, etc.
 Financial portions of the marketing, asset development, and operations
are often placed in this section rather than in the section discussing the
plan. They are viewed as elaboration on the various line items in the
pro-formas.
d. Risk analysis and Risk evaluation
Parts of this section are from an analysis of a business plan
 Market risks - lack of surgeons; large geographical area so that we don't
compete against our own clients;
o New entrants to market
 Ease of entry
 Potential threat to market share- advertising companies
o Slower than expected adoption
 Operational risks
 Staffing risks- imbedding the right candidate for the right surgeon
o Availability of skilled workforce- x-pharma reps, x-equipment
reps
o Union issues
 Financing risks
o Liabilities
o Poorly worded investor contracts at risk for litigation
o Investor pull-out