Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (36)

89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM COMMITTMENT Our group would like to commit that content of graduation report (Capstone Project) presented in this research is research work of our group, absolutely not transcribed from other’s, data used in this research is truthfulness compared with the original, if there is any false we would absolutely take responsibility Members of the group 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM ACKNOWLEDGEMENT Thank for assistance of teachers helping us study theory and analyze business strategy of Song Da Urban & Industrial Zone Investment and Development Joint Stock Company (SUDICO), our group proposed some solutions either in respect of macro aspect or micro aspect These solutions concentrated on the necessity to change and complete business strategy of the Company However due to restriction of qualification and these are our personal opinions, graduation thesis can not avoid from mistakes We look forward to receiving suggestions of teachers to make the thesis better Sincerely thank you for teachers helping our group complete this graduation thesis 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM TABLE OF CONTENTS CONTENT INTRODUCTION PAGE CHAPTER BASIC THEORY ON MAKING STRATEGY 10 Mission and major objectives 10 Strategy making process 10 External environment analysis 11 3.1 Marco environment analysis 11 3.1.1 Political– Legal 11 3.1.2 Economic 11 3.1.3 Cultural - Society 11 3.1.4 Technological 12 3.1.5 Demographic 12 3.2 Industry environment analysis 12 The Five Forces of Compettition Model 3.2.1 Buyers 13 3.2.2 Suppliers 13 3.2.3 Potential Entrants 14 3.2.4 Substitutes 14 3.2.5 Industry competitors 14 Internal environment of the enterprise 14 4.1 Resource 15 4.2 Financial capacity 15 4.3 Enterprise management 15 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Business strategy selection 5.1 SWOT matrix 15 16 5.2 Establishment of summary table of internalexternal factors (IE) 17 5.2.1 External Factor Evaluation (EFE) matrix 18 5.2.2 Internal Factor Evaluation (IFE) matrix 19 5.2.3 External Evaluation (I.E) matrix 20 5.3 Strategy selection CHAPTER II BUSINESS ENVIRONMENT ANALYSIS OF 21 SONG DA URBAN & INDUSTRIAL ZONE INVESTMENT AND DEVELOPMENT JOINT STOCK COMPANY (SUDICO) I 21 Introduction Vision 21 Business line 22 Organizational structure of the company 22 II SUDICO’s external environment analysis 23 23 Macro environment analysis: 1.1 Analyze effects of Political – Legal 23 1.2 Analyze effects of Economic factor 26 1.3 Analyze effects Culture Societyfactor 31 1.4 Analyze effects of Technological 34 Analyze industry environment of SUDICO 35 2.1 Trend of real estate market in period of 2011-2015 2.2 Analyze business environment of SUDICO 35 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Assessing influence of outside environment on SUDICO III 38 3.1 Summary of Opportunity and Challenge 48 3.2 Matrix of External Factor Evaluation (EFE) 49 Analyze internal environment of SUDICO 51 Analyze strength and weakness of SUDICO 51 1.1 Financial ability of Company 51 1.2 Value of projects held by SUDICO 55 1.3 Analyze advantage of SUDICO’s brand 56 1.4 Human resources and management ability 57 Analyze internal environment of SUDICO 58 2.1 Analyze strength and weakness of SUDICO 58 2.2 Internal environment evaluation Matrix (IFE) 59 CHAPTER III SELECTION BUSINESS STRATEGY OF 61 SUDICO IN THE PERIOD 2011 – 2015 I SUDICO’s objectives for period of 2011-2015 61 SUDICO’s mission 61 Main economic targets in years from 2011 to 2015 61 Structure of business 62 Main duty 62 II Strategy of SUDICO in period of 20112015 63 63 SWOT Matrix Analysis IE Matrix Analysis SUDICO’s strategy selection for period of 2011 - 2015 67 68 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM III STRATEGY SOLUTIONS IN PERIOD 2011-2015 68 Market solution 68 Solutions of Enterprise organization 69 Solution of investment 70 Finance solution 71 Solutions of managing products’ quality 71 Solutions of training and developing human resource 72 CONCLUSION 73 REFERENCE MATERIAL 74 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM LIST OF FIGURES - TABLES Figure Chapter Figure 1.1 Table 1.2 Table 1.3 Chapter Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Name Page M.Porter’s Five Forces of Competition Model SWOT Matrix I.E Matrix 13 16 19 Vietnamese economy overview Stock Exchange 2010 Gold Market Population in 2009 with local area Vietnam’s population density in comparison with United Nations’ standard and China Table 2.6 Population density in Hanoi and Ho Chi Minh city Table 2.7 Summarize comparing advantages of SUDICO with HUD and BITEXCO Table 2.8 Matrix of competitive graphic 26 29 30 32 Table 2.9 Power of pressures Table 2.10 Summary of Oppopunity and Challenge Table 2.11 EFE Matrix Diagram 2.12 Structure of Ownership capital of SUDICO Table 2.13 Details of SUDICO’s ownership invesment capital Table 2.14 Comparison of financial indicators in 2009 of SUDICO and some enterprises in branch Table 2.15 Payment ability of SUDICO Table 2.16 Some typical projects of SUDICO Table 2.17 Summary strength and weakness of SUDICO Table 2.18 IFE matrix Chapter Table 3.1 Main economic targets in years from 2011 to 2015 Table 3.2 SWOT Matrix Table 3.3 I.E matrix 33 33 39 42 48 48 50 51 52 53 54 55 58 59 61 63 67 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM INTRODUCTION Real estate market in Vietnam has been officially formed since 1993, after Land Law allows transfer of land use right It is likely to confirm that real estate economics is a key component, accounting considerable proportion in the economy of developed countries Real estate market takes the role in initial financial accumulation of the industrialization process of the country It is demonstrated in practice of countries and territory region such as Singapore, Korea, Taiwan, Hong Kong In Vietnam, this market attracted the more and more capital resources in the society and contributed considerably for the economic growth In the context of recent global real estate investment, Vietnam’s real estate market has proved its attraction from the domestic demand and recovery ability of the economy, supported by elements such as economic growth, fast urbanization process and forming of a new middle class Although investment environment remains a lot of challenges, Vietnam’s real estate market has been attracting interest of global investment organizations Since the recession of the year 2008, there have been many projects starting in all fields, with the increase of supply source especially in markets and offices in Hanoi and Ho Chi Minh city, as well as housing and resort area Since the beginning of 2010, Vietnam’s real estate market has been gradually improved; it means continuously expanding the economy because domestic market’s orbit is connected to the economy With domestic and foreign economy’s prospect, Vietnam’s commercial real estate and housing has positive momentum of development Infact, enterprises participating in Vietnam’s real estate market are required to have specific, methodical business strategies and define business objective in proper Nowadays business environment has been changing rapidly, global 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM competitiveness requires each enterprise to take initiative, creative and adapt to the daily and hourly change Object and scope of research Song Da Urban & Industrial Zone Investment and Development Joint Stock Company (SUDICO) is a company trading in real estate, owns big projects, bringing a lot of profits to shareholders The company’s objective is to become one of the leading company trading real estate, urban investment and development and industrial zone of Vietnam Therefore, research content should be focused on analyzing SUDICO’s environment making and selecting business strategy in the next few years Research method Using strategy analyzing techniques, SWOT matrix On the basis of collecting primary and secondary data, using direct investigation method, statistic method and economic analysis and using SWOT matrix, I.E matrix analyzes SUDICO’s strategy Thesis lay-out The thesis shall be structured as follows: Introduction Chapter I BASIC THEORY ON MAKING STRATEGY Chapter II BUSINESS ENVIRONMENT ANALYSIS OF SONG DA URBAN & INDUSTRIAL ZONE INVESTMENT AND DEVELOPMENT JOINT STOCK COMPANY (SUDICO) Chapter III SELECTION BUSINESS STRATEGY OF SUDICO AND STRATEGIC SOLUTION Conclusion 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CHAPTER BASIC THEORY ON MAKING STRATEGY In the competitive business world, sometimes people raise themselves question why some companies are successful but some others is unsuccessful? Each enterprise has its own way to survive and develop It is not imperative that all enterprises must compete against other enterprises while serving for a group of customers in a manner or must action in the same manner with attempt to satisfy changes affecting its operation “Strategy is orientation and scope of an organization in the long-term with attempt to achieve competitive advantages for the organization through formatting its resources in a changed environment, in order to meet market’s demand and satisfy related parties’ expectation” Johnson, G Scholes K(1999) Exploring Corporate Strategy, 5th Ed Prentice Hall Europe Mission and major objectives : Mission and major objectives is for companies to make strategy Mission given shows reason of existence and duties of a company Major objectives determine what a company hopes to satisfy in the long-term Strategy making process Strategy is result of a planning process from senior executive levels of the company Consideration of planning process is deemed as a starting-point Strategy planning process can be divided into the major steps as follows: - Select mission and major objectives of the company - Analyze external environment in order to identify opportunities and challenges of the company - Analyze internal environment in order to point out strengths and weaknesses of the company 10 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM REFERENCE MATERIAL Vietnamese: Le The gioi - Nguyen Thanh Liem - Tran Huu Hai (2007), Strategy Ministration, Statistics Publisher, Hanoi Vu Trong Khai (chief editor), Lam Ngoc Diep (1996), Company organization and administration, Statistics Publisher, Hanoi Song Da Urban and Industrial Zone Development Investment Joint Stock Company Audited reports in 2007, 2008, 2009, Ha Noi Sao Viet Stock Company (2010), Financial report of Song Da Urban and Industrial Zone Development Investment Joint Stock Company (SJS) Ha Noi Reports of CB Richard Ellis Company (2011) Website of Song Da Urban and Industrial Zone Development Investment Joint Stock Company www.sudicosd.com.vn Proposal of SUDICO’s management model on January 20th 2011 of Ernst & Young Website General Statistics http://www.gso.gov.vn English: Chandler, A (1962), Strategy and Structure Cambrige, Masacchusettes MIT Press Charles, Hill Garth, Jone (1995), Strategic Management, Washington J David Hunger & Thomas L.Wheelen (2001), Essentials of Strategic management M.E Porter (1980), Competitive Strategy, Free Press New York 75 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Addendum : INTRODUCE SOME PROJECTS OF SUDICO AND COMPETITIVE OPPONENTS SUDICO Project of My dinh – Metri new urban area With total investment capital over 2.000 billion dong on area of 36 ha, My dinh 76 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM – Metri urban area – area with European architecture – is built synchronously and modernly including green park, offices, schools, kindergartens, entertainment places, swimming pools, tennis yards…It has multiform projects for different demands of customers like residential region, high building region, high-grade villa region Urban area is the first significant product of SUDICO on real estate market It helps SUDICO become a trademark that customers love Project of Nam An Khanh – Hanoi new urban area 77 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Nam An Khanh – Hanoi new urban area locates in Western Hanoi with size of 288.8 and investment capital of 15.000 billion It is a high-grade new urban area with open space and modern architecture view including modern garden villa region with system of air-conditioning lake in centre of projects Based on idea of design for public, Nam Anh Khanh new urban area is built with model of a complex of villas, high buildings, offices area, commercial centers, supermarkets and entertainment places equipped modernly and arranged harmoniously for users The project has nice position on Thang Long Boulevard axis – an actively developed area of capital Beside nice view and friendly design with environment, good supply and satisfaction of all necessary services for inhabitants living and working in urban area contribute to making a harmonious, preeminent and typical Nam An Khanh urban area in Vietnam Until now, SUDICO has traded about 30% of area and it bring high profit to SUDICO Completed projects will provide SUDICO with strong financial source for its development plan Tien Xuan – Hanoi new urban area 78 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Size: 1.400 ha, place: Quoc Oai, Hanoi Total planned investment: 20.000 billion dong Tien Xuan urban area has new style of Vietnam It takes full advantages of terrian, beautiful natural view and position of Hanoi’s affected place Therefore, the key development aim is developing comfortable services, entertainment services, tourism services, sports, relaxation While new urban areas in Vietnam develop houses and work serving living block, Tien Xuan urban area is invested to be suitable for around convenience, to make the best of natural view, big land fund and to develop friendly high grade houses with environment as a priority Tien Xuan new urban area is in genenral plan of Hoa Lac high technological region and in main development region With such good position completed project will create an important statellite urban area of Hanoi Tien Xuan new urban area is a next project of Anh Khanh new urban area to serve long-term plans of SUDICO Progress rate of project implementation: 2007 - 2020 Project of Van La – Van Khe new urban area 79 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM With total investment over 700 billion dong and area of 12 ha, Van La – Van Khe urban area locates in centre of Ha Dong district in general urban plan Land area has favourable traffic position (on Quang Trung main line of Ha Dong district – highway No.6 – the life-line connecting Hanoi with northwestern Hanoi provinces) with high urbanization speed and series of key projects of administration, urban, trade, finance and service such as: administrative centre of Ha Dong district, Van Phu new urban area near Hanoi above railway, Ha Dong Series of such above projects create a tight group of new urban areas with synchronous infrastructure and perfect social structure The project with European architecture is buit modernly including green park, agencies, offices, schools, play places, entertainment places, tennis yards and other public services Project of SUDICO – SPM residential area 80 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM SUDICO – SPM residential area is in Truong Luu residential area, Long Truong ward, District 9, Ho Chi Minh city The residential area is built on flat terrain, comfortable position and relation: the East borders highway of belt 3, the South borders Ho Chi MInh – Long Thanh highway, the North and the West borders new residential area and one part of Truong Luu road Total investment is 2.300 billion dong Size of planned 18.9 includes high-grade villas, high building, commercial service centre, sport area, kindergartens, green park, lake SUDICO – SPM residential area locates in region with high urbanization speed of Ho Chi Minh SUDICO is going to build a model urban area here with modern and friendly architecture, synchronous infra-and social structure contributing to city industrialization and modernization Project of Northern urban area on centre axis of Southern urban area, highway - Pho Noi – Hung Yen 81 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Place: Lieu Xa commune, Yen My distict, Hung Yen province Total investment of infrastructure: 760 billion dong Project of Northern urban area on centre axis of Southern urban area, highway - at Pho Noi – Hung Yen urban area has land area of 101.455 With advantage of about 30 km far from Hanoi, near highway and 5B it meets demands of people living and working in Hanoi, Hung yen and neighboring places Total investment of infrastructure: 761.779.290.000 dong Pho Noi – Hung Yen urban area is synchronously built including high-grade villas, next houses, apartment building, commercial centre to maximine comfortability for users Vietnam House and Urban Development Corporation (HUD) Vietnamese name: VIETNAM HOUSE AND URBAN DEVELOPMENT CORPORATION (HUD) Head of office: 5th and 6th floor, M5 building, 91 Nguyen Chi Thanh, Lang Ha ward, Dong Da district, Hanoi 82 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Charter capital: 4.922 billion dong Vietnam House and Urban Development Corporation (HUD) was signed Decision of approving modeled projects of establishment from model of parent company – subsidiary company by Prime Minister (based on reorganizing system of Corporation of House and Urban Development Investment) and enterprises who are Hanoi Construction Corporation, Construction Pottery and Glass, Bach Dang Construction Corporation and VIWASEEN Corporation Vietnam House and Urban Development Corporation (HUD) is the core for building Corporation Corporation was established in 2000, forerunner was House and Urban Development Company (established in 1989) Through 20 operation years, position of Corporation has been improved and developed more in inland and foreign market with trademark “HUD” – one of top trademarks of Vietnam in field of house and new urban development – contributing in process of industrialization and modernization in passing years Corporation includes 20 member companies who are subsidiary companies, associating companies, one-member company limited in field of investment, assembling, design consultancy, production of construction materials, urban service and entertainment service with main duty of developing projects of new urban and houses Member companies are joint stock companies operating in main places, cities and urban of whole country The relationship between parent company – Corporation - and subsidiary companies is equalitarian based on regulation of cooperation together for implementing general development of Corporation Typical projects Linh dam urban area 83 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM The project has size of 200 including three composition projects: Housing area in North Linh Dam, Housing area in Linh Dam Peninsula and widened Linh Dam housing area This is the first new urban area modeled by Corporation Success of project creates premises for series of widened new urban areas in whole country · Size: 200 (including 74 of airconding lake Position: Hoang Mai district, Hanoi, 7km far from Hanoi centre · Population size: 25.000 people · Total ground area for using: 990.000 m2 Start time: 1997 Completing time: 2008 Started building in 1997, in the past Linh Dam was a bog and sunken field, it changed its look into Linh Dam new urban area with modern and spacious architecture intermixing with green landscape It creates motive power for development of whole gateway in the South Hanoi On 22/1/2009 Minister of Construction officially signed Decision No.74/QD-BXD on recognizing Linh Dam new urban area as a model new urban area 84 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Dinh Cong new urban area: Built in same time with Linh Dam new urban area, Dinh Cong new urban area rapidly contributes a big house fund for program of house development of Hanoi Beside synchronous infrastructure system, the project has full social work for inhabitants’ life like schools, kindergartens, supermarkets, markets, hospitals and entertainment places such as: green parks, tennis yards, swimming pools, clubs… · Size: 35 · Population size: 16.520 people · Total ground area for using: 297.000 m2 Start time: 1999 Completing time: 2007 Van Canh new urban area 85 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM The project locates in high urbanization area with built new urban like My dinh, Xuan Phuong new urban area and connects closely with traffic lines which are being built such as Le Trong Tan lines connects Lang – Hoa Lac road with highway 32, My dinh – Xuan Phuong line Beside modern infrastructure system, housing work is designed and built based on synchronous plan and design to make urban scenery in harmony with public work, service, trade, green tress and water · Size: 68.5 · Population size: 13.190 people · Total ground area for using: 306.000 m2 · Start time: 2008, Investment is being implemented Binh Minh Import Trade and Export Company Limited (BITEXCO) Name of company: BINH MINH IMPORT TRADE AND EXPORT COMPANY LIMITED (BITEXCO Co.,Ltd ) Address: Km 2, Quang Trung street, Quang Trung ward, Thai Binh city, Thai Binh province Charter capital: 661.732.620.000 dong From establishment time of 1993 to now, BITEXCO Corporation has become top interdisciplinary economy corporation of Vietnam Bitexco achieved big successes in almost business branches like: textile, producing Vital mineral water, investing in building real estate – trading property, investing in buildin 86 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM hydroelectric plants, financial/bank investment, investment in building traffic infrastructure/high way In above branches, property is strong point of Bitexco with big projects such as commercial centers, the most modern and unique highgrade building in Vietnam like: The Manor, The Financial Tower, The Garden Officetel, Ben Thanh Twin Towers … Typical projects Project of The Manor high-grade building apartment in Hanoi The Manor Hà Nội, Mỹ Đình, Từ Liêm Name of the project: The Manor Type: high quality villas and buildings Address: Tu liem district, Hanoi Total investment level: 1000 billion dong The Manor has luxurious villas, shopping places, fashionable shops with famous trade mark over the world, entertainment centers, modern cinemas and luxurious restaurants with dish over the world Next to The Garden shopping area is The Officetel, a building of apartments, offices and commercial transaction centre for administrative work The most unique feature of the Officetel – The Garden is shopping centre with luxurious hotels, offices, restaurants and cinemas arranged in open space with nature 87 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Project of Financial service and trade centre Bitexco financial Tower • Type: Office building • Area: 5.678,9 m2 • Total ground area for using: 117.667m2; • No of floors: ground floors and 65 floors, height of 269 m Total of investment level: billion USD • Execution time: 2006-2010 Bitexco Financial Tower was inaugurated in 10/2010, at the moment it is the highest building of Vietnam to be exploited The building provides market with 38.000 m2 for offices at A+ level with international standard and 8.000 m2 of 88 89 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM floors for trade centre to meet working demand of nearly 10.000 people in the building 89