Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (175)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT FORMULATION OF THE BUSINESS STRATEGY FOR VIGLACERA DONG TRIEU JOINT – STOCK COMPANY IN THE PERIOD OF 2010 - 2020 GROUP No - CLASS GAMBA01.X01 Đoan Van sinh – LEADER Pham Binh Minh Nguyen Manh Hung (13/01/1978) Nguyen Huu Dung Luu Thi Thu Huong HANOI 2010 ` ACKNOWLEDGEMENTS First of all, the Group No.8-Class GaMBA01.x01 would like to express our sincere thanks for the Master of Business Administration Program, the Affiliate Programs between Griggs University, USA and Center for Education Technology and Career Development, Vietnam University Hanoi for organize MBA course in Vietnam and facilitating our Capstone Project Report Secondly, we would like to express our sincere thanks to VIGLACERA DONG TRIEU JOINT – STOCK COMPANY management and staffs who have fully supported our team in providing valuable input information for this Capstone Project Report Although our group has tried our best to perform this Capstone Project Report within our capacities but it definitely will have unavoidable deficiencies We are thus hope that we will continuously receive more valuable comments from all of you to complete this report and make it be really useful for both of the Group and the Company Once again, thank you very much! Hanoi, July, 2010 The Group No.8-Class GaMBA01.X01 ` CONTENT Order 1.1 1.1.1 1.1.2 1.1.3 1.2 1.2.1 1.2.2 1.2.2.1 1.2.2.2 1.2.3 1.2.3.1 1.2.3.2 1.2.3.3 1.2.3.4 1.2.3.5 1.2.4 1.2.4.1 1.2.4.2 2.1 2.1.1 2.1.2 2.1.3 2.2 ` Content Introduction The necessity of the research The purpose of the research The subject of the research The methodology of the research The structure of the capstone project report Chapter I: Theoretical Background on Strategy Page 7 8 10 Formulation Concepts Concept of business strategy Role of business strategy Types of business strategy The process of business strategy formulation Mission and objectives of the enterprise Analysis and assessment of the external environment Macro Environment Micro Environment Analysis and assessment of the internal environment Human resources Financial capability Production and operations Marketing activities Management activities Strategic Analysis Tools SWOT Matrix IE Matrix Chapter II : Analysis of the reality of the business 10 10 11 12 13 13 13 14 16 20 20 21 21 21 22 23 23 24 environment of Viglacera Dong Trieu Joint stock 26 company Brief Introduction of the company History of establishment and development Name, location and address of the company Fields of business Analysis of the external environment 26 26 27 27 28 2.2.1 2.2.1.1 a b c d 2.2.1.2 a b c d g f 2.2.2 2.2.2.1 2.2.2.2 2.2.2.3 2.2.2.4 2.2.2.5 2.2.2.6 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.4.1 2.3.4.2 2.3.5 2.3.5.1 2.3.5.2 Macro Environment Economic Environment Economic Growth rate Inflation rate Exchange rates and banks’ lending interest rates Salary and income Social-cultural Environment Population Culture Political and Legal Environment Technological-scientific Environment Natural Factors Global environment and integration Micro Environment Analysis of market and customer conditions Analysis of Suppliers conditions Analysis of potential competitors Analysis of the intensity of rivalry in the industry Analysis of substitute products Matrix to evaluate the external environment Analysis of the Internal Environment Financial Capability Human Resources Marketing Activities Production and Operation Scale of technological lines and capacity of factories Product quality Evaluation of management activities Organizational Structure The system of planning, implementation and supervision, control 2.3.5.3 Qualification and expertise of the company’s leadership 2.3.6 Matrix to evaluate the internal factors of the company Chapter III: Selection of business strategies for 3.1 3.2 3.3 ` Viglacera Dong Trieu in the period of 2010-2020 Orientation for Development Specific Objectives Selection of business strategies for Viglacera Dong 28 29 29 30 31 32 33 33 34 35 37 38 39 39 39 41 42 43 49 49 51 51 58 59 61 61 62 62 62 64 66 67 70 70 70 71 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6 3.3.7 3.4 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5 3.5 3.6 3.7 Trieu in the period of 2010-2020 Differentiation Strategy Market Development Strategies Product Development Strategies Competitiveness Enhancement Strategies Joint-venture, Alliance Strategies Business Diversification Strategies Selection of Business Strategies Solutions Solutions on human resources Solutions on Investment Solutions on Finance Solutions on Production Solutions on Marketing Organization and implementation of the selected strategies Some risks may be faced in the implementation of the selected strategies and specific solutions Recommendations Conclusion Referrence 74 74 75 75 75 76 76 77 78 78 79 79 79 80 89 90 91 92 LIST OF TABLES TABLES ` Page Table I.1 : Competitive Profile Matrix Table II.1:Competitor’s capability Table II.2: Competitor's performance comparison year of 2009 Table II.3: Competitor;s revenue comparison Table II.4:Comparison between Gieng Day JSC and Dong trieu JSC Table II.5: Compatitive profile matrix between Gieng Day and Dong trieu Table II.6: External Factor Evaluation Matrix (EFE Matrix) Table II.7: Ballance sheet 2008-2009-2010 Q1 Table II.8:Income statement year 2008-2009 Table II.9: Key financial indicators 2008-2009 Table II.10: Internal Factor Evaluation Matrix (IFE Matrix) Table III.1 SWOT matrix and strategy formation Table III.2: Quantitative evaluation for strategies Table III.2: Quantitative evaluation for strategies FIGURES Figure I.1: The model of five forces of competition Figure I.2: Effect from External environment to competition Figure I.3: Process of building EFE matrix Figure I.4: Process of building IFE matrix Figure I.5: SWOT Matix Figure I.6: IE matrix Figure II.1: Dong trieu Vigracera 's Product distribution system Figure II.2: The organizational structure of Dong Trieu Viglacera Figure III.3: Time schedule of strategies implementation Figure III.4: The company’s future organization model ` 16 41 44 45 47 48 49 52 55 56 68 72 76 78 Page 15 18 19 21 22 23 59 64 69 81 88 PREFACE The necessity of the research project Nowadays, the trend of globalization with the strong development of science and technology has been followed by the increasing scarcity of resources The business environment of enterprises is subject to heavy influence of domestic and international economic, political, cultural, social developments Since Vietnam’s entry in the World Trade Organization (WTO), Vietnam’s enterprises have been facing new opportunities to build and develop their own businesses to a new level on the international playing field However, Vietnam’s enterprises have been also coping with new challenges They have to face with fierce competition from corporations, multinational companies that have been established and developed for hundreds of years with modern technologies, advanced management levels and large capital resources In order to survive and develop, each business should study, analyze, and assess the external and internal business environment to be able to grasp opportunities, identify threats, promote strengths and limit weaknesses, thereby developing business strategies that are fit in their businesses to achieve stable and sustainable development Therefore, it is essential to develop appropriate business strategies in current situations (The fact has proved that the businesses that have wrong business strategies or without business strategy will inevitably fail) Business strategies help businesses to map out the appropriate direction, to make appropriate decisions, to concentrate resources to limit threats to overcome difficulties and gain victory Along with the guidelines of the Party and State on industrialization, modernization of the country, with the explosion of urban areas, the demand for construction materials has been on significant increase in recent years However, enterprises doing business in the field of construction materials are also facing fierce competition from foreign ` products, local enterprises manufacturing construction materials and domestic policies on natural resources and environment These issues have become more challenging especially for enterprises doing business in construction materials from burned clay Therefore, it is essential to build business strategies for the enterprise in the coming period The purpose of the research Based on the theories of strategic management and the analysis of the reality of the business environment of Viglacera Dong Trieu Joint-stock company (hereinafter referred as the Company or the enterprise), we formulate the business strategy for the company in the period of 2010 -2020 The subject and scope of the research + The subject of the research and analysis is Viglacera Dong Trieu Joint-stock company + The scope of the research: analysis of the business and production environment of construction materials from burned clay of Viglacera - Dong Trieu Joint-stock company to serve as the basis for the formulation of business strategy for the company in this field in the period of 2010 to 2020 Research Methods + Use direct research methods: Collect and gather information from newspapers, magazines, Internet sources; statistic data from published documents, financial statements, balance sheets, income statements of 2008, 2009 and early 2010, the internal rules and regulations of Viglacera - Dong Trieu Joint-stock company + Use analysis tools and methods to analyze the internal and external factors influencing the business and production operations of Viglacera-Dong Trieu Joint-stock company + Use expert methods to forecast the future business environment of Viglacera Dong-Trieu Company ` + Use comparative methods to analyze the competitors of Viglacera Dong-Trieu Company + Use synthesis methods to synthesize opportunities, threats, strengths and weakness affecting Viglacera Dong-Trieu Company + Use analysis techniques and models such as IE Matrix, SWOT Matrix to build and select the optimal business strategy for Viglacera Dong-Trieu Joint-Stock Company in the period of 2010-2020 The structure of the capstone project report Our capstone project report is structured as follows: Preface Chapter I: Theoretical background on strategy formulation Chapter II: Analysis of the reality of the business environment of Viglacera - Dong Trieu Joint-stock company Chapter III: Selection of business strategies for Viglacera - Dong Trieu Joint-stock company in the period of 2010 - 2020 Conclusion ` CHAPTER I THEORETICAL BACKGROUND ON STRATEGY FORMULATION 1.1 / The concept of business strategy 1.1 / The concept of business strategy 1 1.1 / Strategy There are many different definitions on strategy, but the most popular definition is "Strategy is a series of complex actions to mobilize the resources of an organization to achieve a certain goal." – Text book of “Strategic Management”- Global Advanced Master of Business Administration, Hanoi, 2010 Previously, people widely viewed strategy as the science and art of military command However since the '60s decade (the 20 th century), strategy has been applied in business areas, and since then the concept of "business strategy" has come into being 1.1.1.2 / Business strategy Under the traditional approach, the strategy is the determination of the basic long-term goals of the enterprise, and the implementation of action plans to allocate resources to achieve identified set goals of the enterprise Business strategy can also be defines as "An integrated and coordinated set of commitments and actions that the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets." – Text book of “Strategic Management”- Global Advanced Master of Business Administration, Hanoi, 2010 We also can say that business strategy is the way that businesses use to direct its future to achieve and sustain its development ` 10 ...ACKNOWLEDGEMENTS First of all, the Group No.8-Class GaMBA01.x01 would like to express our sincere thanks for the Master of Business Administration Program,... and Center for Education Technology and Career Development, Vietnam University Hanoi for organize MBA course in Vietnam and facilitating our Capstone Project Report Secondly, we would like to express... Group and the Company Once again, thank you very much! Hanoi, July, 2010 The Group No.8-Class GaMBA01.X01 ` CONTENT Order 1.1 1.1.1 1.1.2 1.1.3 1.2 1.2.1 1.2.2 1.2.2.1 1.2.2.2 1.2.3 1.2.3.1 1.2.3.2