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CAPSTONE PROJECT REPORT BUSINESS STRATEGY BUILDING OF MITALAB CO LTD Vu Thanh Binh Mai Gia Khanh Nguyen Ba Lai Team leader Nguyen Van Viet CLASS: MBA X0409 HANOI, 2011 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY BUILDING OF MITALAB CO LTD Group Number: Student’s name:Vu Thanh Binh Mai Gia Khanh Nguyen Ba Lai Team leader Nguyen Van Viet CLASS: MBA X0409 HANOI, 2011 ACKNOWLEDGEMENT LIST OF TABLES .4 LIST OF FIGURES AND GRAPHS INTRODUCTION .6 CHAPTER I: GENERAL THEORETICAL BASIS OF BUSINESS STRATEGY OF THE COMPANY 1.1 Concept of strategy and role of business strategy 1.1.1 Concept of strategy 1.1.2 Concept of strategy administration 1.1.3 Role of business strategy 1.2 Process of business strategy building .9 1.2.1 Business environment analysis .10 1.2.1.1 PEST model analysis in macroenvironment research 10 1.2.1.2 Analyzing factors of competitive model 12 1.2.2 Internal company analysis 14 1.2.2.1 Management analysis 14 1.2.2.2 Analysis of core competencies and competitive advantages 14 1.2.2.3 SWOT model analysis: 15 1.2.3 Business strategy selection 16 1.2.3.1 Strategic plan development: 16 1.2.3.2 Strategy analysis and selection .18 1.2.3.3 Implementation .18 1.2.3.4 Evaluating strategy’s effectiveness 19 CHAPTER II: ANALYZING CURRENT SITUATION OF BUSINESS ACTIVITIES OF MITALAB CO LTD .20 2.1 Introduction about Mitalab Co Ltd 20 2.1.1 Establishment 20 2.1.2 Organizational structure of the Company 20 2.1.3 Management structure of the Company 22 2.1 The results of the company's business 23 2.2 Analyzing current situation of business activities of Mitalab Co Ltd 24 2.2.1 Analyzing external environment .24 2.2.1.1 Analyzing PEST model: 24 2.2.1.2 Analyzing factors of competitive model 28 2.2.2 Analyzing the strengths and weaknesses of competitors 31 2.2.2.1 ROCHE Firm – France 31 2.2.2.2 ABBOTT Firm (ABBOTT DIAGNOTICS): 32 2.2.3 Internal analysis within the company .32 2.2.2.1 Strengths: 40 2.2.2.2 Weaknesses: 41 2.2.3 SWOT matrix 42 CHAPTER III: SOME BUSINESS STRATEGY SOLUTIONS OF MITALAB CO LTD 45 3.1 Business goals of Mitalab Co Ltd in period 2011-2015 .45 3.2 Solutions for implementing business strategies of Mitalab Co Ltd .46 3.2.1 Business strategy proposal: .46 3.2.2 Business strategy selection 47 3.2.2.1 Selection basis 47 3.2.2.2 Business strategy determination 49 +) Strategy 1: Market development strategy 49 +) Strategy 2: Functional strategy: 50 Human strategy: 50 Low cost Strategy: .50 3.3 Strategy implementation .51 3.3.1 Human Resources Investment 51 3.3.2 Improving and raising the quality of market research and prediction 52 3.3.3 Developing and maintaining the Company's Firm 55 3.3.4 Distribution channel improvement 55 3.3.5 Defining price and product policies reasonably .57 3.3.6 Promoting capital mobilization and usage sufficiently 57 CONCLUSION 59 REFERENCE .60 ACKNOWLEDGEMENT We would like to show gratitude to all lecturers of Griggs University, USA and ETC Centre – Vietnam National University, Hanoi who have enthusiastically helped and provided us research and theoretical basis, and approaches for us to analyze current situation of business activities of an enterprise, administration methods and transformation for that enterprise to exist and develop well in global integration trend Together with leaders and managers of Mitalab Co Ltd, our group applies learned theories in the Company, gives some necessary solutions to change and improve the best business strategies for the Company in the coming years Because of limited research time, we look forward to receiving comments from lecturers and colleagues contributing to make the graduation Capstone Project Report more perfect so that Mitalab Co Ltd applies in practice in order to develop the Company the best in the coming years Thank all lecturers who have helped us to finish this Capstone Project Report LIST OF TABLES Table 2.1 The results of the company's business……………………….…pp 24 Table 2.2 Summary of some key economic indicators for the period 20052010…………………………………………………………………….…… pp 26 Table 2.3 Firms with domestic market share in 2009…………………… pp 31 Table 2.4 Balance sheet…… ………………………………………… … pp 33 Table 2.5 Analyzing financial ratios of the Company……………… … pp 34 Table 2.6 The Income Statement of Mitalab Co., Ltd……………… … pp 36 Table 2.7 The Sales of equipment and chemicals by Firm……………… pp 37 Table 2.8 Matrix to select business strategy………………… ……… … pp 42 LIST OF FIGURES AND GRAPHS Figure 2.1 The company’s organizational……………………….…… pp 20 Figure 2.2 Management structure………………….…………….…… pp 22 Figure 2.3 Diagram presenting the sales of each item………………… pp 38 INTRODUCTION In recent years, our economy has gradually integrated into regional and the world economy, business environment of enterprises is expanded but competition is becoming fiercer and fiercer This creates business opportunities and at the same time contains potential risks threatening the development of enterprises Business process always moves and continuously changes under laws That movement is an objective fact due to external environment changes When external environment changes, it leads to changes in business activities of an organization However, the business process’s movement is not accidental, irregular; it is expressions of the movement of objective laws in certain conditions Therefore, the direction of movement of business activities can be also aware of the expressions of objective laws, governing the business activities of that organization Future path of an enterprise is known as its business strategy To exist and develop in business, enterprises need to establish directions for themselves It means to draw out movement trends for organizations and comply with those movement trends In fact, that process is to form business strategies, draw out future goals to reach Therefore, business strategy plays a leading role, determining the development of any business organization Without business strategies, enterprises not know how they will develop in the future, not have specific goals to make effort to reach and business process like that is spontaneous, situation response organizations need to form business strategies Because the market has many variations, omitting random elements, what determines and affects success of enterprises is to select a right direction, define a reasonable and prompt strategy However, business enterprises are all unaware of this important role of business strategy, therefore formed plans, business projects are often lack of practicality Building a reasonable business strategy requires enterprises full awareness about the role of business strategy and its implementation methods Since establishment (year 2001) up to now, Mitalab Co Ltd has tended to apply strategy administration method in business administration that practically brings about good results With the awareness of the importance of forming a business strategy in enterprises, our group bravely choose the topic “Business Strategy building of Mitalab Co Ltd” in order to bring theoretical knowledge in business practice Purpose of this topic is to contribute to clarify some theoretical matters, major methodologies in building and implementing business strategy of Mitalab Co Ltd on the basis of analyzing, evaluating business situation as well as business environment of the Company during the past time and development in the future The Capstone Project Report’s content consists of parts: Part I: General theoretical basis of business strategy Part II: Current situation of business activities of Mitalab Co Ltd Part III: Some business strategy solutions of Mitalab Co Ltd by 2015 CHAPTER I: GENERAL THEORETICAL BASIS OF BUSINESS STRATEGY OF THE COMPANY 1.1 Concept of strategy and role of business strategy 1.1.1 Concept of strategy Strategy is a military term that has different concepts “Strategy is an overall guideline and plan, determining major targets and force arrangement throughout the period of the social – political war.” [Institute of Linguistics, Vietnamese Dictionary, Hanoi – Da Nang, 2001, pp157] Because there are some pre-eminences of this concept and the awareness “market place as a battle field”, economists apply the term strategy in business activities called business strategy Business is “Organizing the production, trading, and services for the purpose of making profit” [Institute of Linguistics, Vietnamese Dictionary, Hanoi – Da Nang, 2001, pp 529] Business strategy is understood in many ways: “Is a strategy mainly related to how an enterprise can compete successfully in a certain market? It relates to strategic decisions on selecting products, meeting customer’s need, gaining competitive advantages over competitors, exploiting and creating new opportunities” [http://gomm.com.vn] “Business strategy is to define long term, basic goals and purposes of an enterprise and the application of a chain of actions as well as the distribution of necessary resources to implement these goals.” “Strategy is orientation and range of an organization in long term in order to gain competitive advantages for that organization via formatting its resources in a variable environment, to meet market needs and satisfy the expectations of related parties.” These are relatively comprehensive concepts, giving a general idea of features, connotation of making a business plan of an enterprise, accepted and applied by many economists in our country From that approach, business strategy can be understood as follows: 10 3.2 Solutions for implementing business strategies of Mitalab Co Ltd 3.2.1 Business strategy proposal: In the trend of our country's economy is gradually integrating into the world economy, globalization, and trade has become a bridge, a tool to attract external resources and turn it into the internal forces of each country or business So the market development, diversification of markets is one of the important necessary elements for business enterprises The market is always active and constantly changing Therefore no one can assert that a product can succeed on the market forever without any change When businesses keep on operating in one market sector, the possibility of being "torn" in market share is inevitable Because a market is considered attractive, the competition is always fierce, leading to reduced business efficiency, profit will be reduced and competitiveness of enterprises will decline if no immediate adjustment The most useful way to avoid it is to conduct market development strategies Proposing strategies for Mitalab Co Ltd as follows: - Market development strategy is the strategy trying to sell existing products in new markets, seeking market area on the new provincial hospitals in the North, the market of Central and Southern provinces Search new target customers: The solution involves finding a new target customer group local market right now - Low cost strategy: building up professional marketing team, forecasting demand for goods close to reality, when imported goods can always just in time deliver to customers (JIT), reduced inventory, reduced maintenance costs of storage - HR-Strategy: Attracting with experienced and technical skilled human resources from outside to work in the company Planning for training, recruitment and remuneration policy for staff and workers in long-term dedication of the company, building business ethics and absolute loyalty to the company - Competitive strategy on delivery time, the company has its headquarters in Hanoi, with large preservation and storage; near the potential market of the company facilitate the provision, the after sales service is quickly within 24 hours 48 3.2.2 Business strategy selection Any business, a firm or company can all be left behind if they not capture the market With the daily science and technology progress, companies are facing great challenges in understanding and adapting to the trend, global competition will create competitive pressures, the competitors come from all regions, creating opportunities for enterprises to dominate the market if they detect sensitive or crevice trend of the market "Continuous Development" is the goal of any business in the long term In an economy where competition is considered the "soul" of the market, though business "stall" also being considered as a regress Mitalab Co Ltd chose the strategy of "exploiting existing markets and developing new markets" are considered routine and continuous tasks 3.2.2.1 Selection basis - State continues to increase investment to promote social development of health systems and enhancing the quality of people's health care Focus on developing strong health care system and improve the quality of health services to strengthen the grassroots health network Completed construction of district hospitals, upgrade provincial hospitals and central levels Build some more specialized hospitals with high qualifications in Hanoi, Ho Chi Minh City and some areas Building a base-class health care sector To encourage all economic sectors to establish a specialized medical facility with high quality Due to demand health infrastructure development, demand for procurement of medical equipment will increase, demand for chemical testing in hospitals will increase The company will have the opportunity to develop this market in the future -Country's current population is estimated around 86 million people, more and more people's lives are improving, especially in provinces and cities Therefore, the demand for health care of people is quite large This will increase the amount of chemicals for medical tests On the other hand, the tastes of the people present when health care is very popular major hospitals, regional hospitals, this is a huge potential market, 49 companies need to take measures and policies suitable search for new targeted customers on these areas, -Company market share very large customers in the North, accounting for 80% of companies, large customers huge focus in Hanoi, and major customers are the leading diseases, diseases central institutions, such as Bach Mai Hospital, 108 Military Hospital, Vietnam-Germany Hospital you have to gain market share will have a very high reputation for the base hospitals, companies need to build a war strategy to seek new markets in the provincial hospital in Northern - Market in Centre and South: this very large market with nearly 100 big hospitals (central hospitals, the provincial hospitals ) and 500 medium-sized hospitals (district hospitals, town hospitals and regional hospitals) with relatively high demand, but a problem that companies encounter is subject to intense competition from rivals such as Luc Tinh Trading and Technical Services Company is the main distributor of ABBOTT huge market share in the Southern, the Firm Roche- France competitors directly with the MITALAB CO, LTD Currently this market tends to rise, in order to succeed, companies must have reasonable policies in personnel and marketing Despite some difficulties, the company will be able to overcome and grow further Marketing Division’s operation is not effective, but can improve by measures such as: To build the professional and experienced marketing team of good capacity, equipped with devices to collect and process information of market, analysis and understanding the needs of the customer Today the price is not the most important factors that customers care about Thus, in the period 2011 - 2015, the market will compete mainly on quality, then the price and quality are equal, the competition takes place in after-sales service Which companies having excellent and attentive after sales service (such as research, service, good customer care), they will be the winners Thus, the main method of competition at this stage is providing good quality products, maintaining its reputation with customers, rapid and timely delivery to best meet the requirements and expectations of customers 50 Human resources plays a very important role in developing businesses, so companies should focus on attracting talents, recruiting , training and development qualifications 3.2.2.2 Business strategy determination Mitalab Co Ltd is an enterprise specialized in importing all laboratory equipment used in biological; immunology and hematology, together with the respective chemicals, supplying to customers, mainly hospitals, health centers then, and the company selected the following strategy +) Strategy 1: Market development strategy Market development strategy is the strategy trying to sell existing products in new markets, search on the local market is the Northern provincial hospitals, markets of Central and South Search new target customers: The solution involves finding a new target customer group local market right now Objectives: - Search the market on new areas of provincial hospitals in the North, the developing markets of Central and South based on the resources available at the branch in Ho Chi Minh Search new target customers in the city of Hanoi, where the focus of many large hospitals and potential customers -Dominated product-development goals: OLYMPUS, SIEMENS in traditional markets and new markets - Increase capacity of winning the contract to supply equipment for the projects Contents of the strategy: * Market research and access: of research and market analysis, which is assigned to the Marketing Department and direct sales staff as they communicate with customers directly 51 Implementation method: collect information directly from customers, like result from the sale Collect information indirectly through the results of statistical departments and agencies *Market segmentation: Market segments by region: Top hospitals (central hospital, the specialized hospital, the provincial hospital ) Medium-sized hospital (districts hospital and regional hospitals) Based on the characteristics and budget to provide reasonable products and prices *Market Development Search for the right target customer local market in Hanoi Search the market for the Northern provincial hospitals, markets and Central and South Market development in the direction of the company's performance dominates the northern market, penetrate the market further into Central and South Continued focus on market segments not yet penetrated Aims to focus development, emphasis on the products, market segments which are the strength of companies that meet specific market requirements +) Strategy 2: Functional strategy: Human strategy: Planning and training, recruitment of professional marketing team, attracting human resources with experience and technical skills from outside to work in the company Building preferential policies for staff and workers in long-term dedication of the company, building business ethics and absolute loyalty to the company Low cost Strategy: Predicted order quantity and delivery time close to reality, greatly reduce storage costs, reduce maintenance costs due to stringent requirements as a condition of storage for 280 C 52 3.3 Strategy implementation 3.3.1 Human Resources Investment Human resources are valuable assets of the company Thus, companies need to focus on a reasonable investment, creating strong incentives to promote the development of the company * Training policy making Encourage staff and workers themselves to improve their knowledge and skills for themselves, to meet the job requirements Costs for knowledge-skills retraining are deducted from revenue; the company needs to increase investment in human resource Creating atmosphere, friendly working environment, the ability to work hard, the company always creates opportunities for promotion, for every person in the company In order to really grow and expand markets, companies need a skilled workforce with professional enthusiasm, sense of self discipline, co-united independent and creative working style because of long-term goals of the company Regular monthly job performance evaluation, training professional, testing and personnel awards for high scores, to encourage human resources with high achievement * Focus to train human resources in professionalization orientation - Need to identify expertise of each department in order to have effective training - Focusing on the engineering staff to installation, operation and repair subjecting to professional manner More emphasis on the quality of sale staffs, deserve to pay remuneration with timely encourage - For leaders: Especially leaders in the field of active market, trading, import and export, market analysis Companies need to choose carefully in the recruitment, staffs can be sent at prestigious universities, centers of economic training to focus on qualifications, technical skills, ability sensitive to markets, flexible response to market changes, fast analysis speed and accuracy from which to search for more business 53 opportunities for the company, to increase control and boost capacity market development For marketing staff: Marketing staff must be qualified, experienced, skilled, professional and knowledgeable about the product market They need to have the skills to analyze and assess the market, have good communication skills, persuasive in the art of negotiations with customers Marketing staff professionalization, specialization by market and by product line, tasks division and assignment, market segment and company's products dividing are all essential Professionalize the marketing division informing with sales process will expand market more and more 3.3.2 Improving and raising the quality of market research and prediction Any strategy of any business must also focus leading on "must sell what the customer needs rather than sell what we have” Thus, companies need to research and forecast the market, which enables them to capture business opportunities in a timely manner To carry out research and market forecast well, as follows: Marketing department to undertake tasks such as market surveys, collect market and customer information, deep market research and understanding, correct market analysis to consult director board the most efficient method to market penetration and domination To propose effective sale plan, sales promotions and Firming programs, forecast goods demand Professional staff will identify properly forecast to plan the annual consumption, creating an initial step for forecast environment, building long-term development strategy to enable the company with further vision Current socio-economic situation has developed upon the trend of international integration, economic life is being lifted, and demand for health care is being seriously paid much attention, medical treatment demand is growing; the company cannot miss this opportunity In order to have the exact collection of information and market research, companies need to enhance research and understanding of market demand, determine the structure of commodity trading in the coming period and accelerate market research, search for new customers, expand markets 54 Increase market share by some old customers based on comparative advantage such as pricing, shipping services or after-sales service Establish relationships with new customers, which the company has not paid attention, in fact, this activity is not highly effective Hence, the company's product to penetrate new markets is difficult But with the province that the company has penetrated, the consumption remains small Besides, the company needs to split the market into regional segment, according to the central, provincial, district and town For each area of market research, staff should understand living standards, the type of illness, as well as the customs of each region to provide products that meet the demand, and have suitable prices to each region Herein are some methods of gathering information, surveys, market research company may apply: - Gather information on market, practical medical journals, magazines of testing, website of the medical department - Ministry of Health, from the branches and customer information There are forms of monitoring, categories statistics, goods sold in each season, each stage in different areas to direct marketing of products for each season and each period, each period according to market demand, reducing inventory - Gather information about categories of businesses are selling by rival in the market Determine price, quality product, handle the sales of such goods - Gather information about the method of sales, customer service form of the competitors to compare and choose the most appropriate method of the company - Organize annual customer conference, seminars opinions of customers and propose measures to resolve customer support to remove difficulties Based on the information in the course of survey and market research, combing information collected from customers, the market research department uses statistical methods to determine categories of consumption, slow in consumption each season, each stage, from which the proposed strategic direction is worked out in line with business practices, which enable company to respond quickly to market, giving out category of goods, setting reasonable price for the market to promote the consumption 55 Detailed market information will be the advantages to negotiate, to help companies find ways to solve difficult negotiations In addition, the company having sufficient information about the market will have more new customers On the market for products the company will face many competitors such as Abbott, Roche,…in sales, quality and price of goods and services Companies cannot have information on markets and on commodity prices, after sales service of rivals Understanding the market, said market analysts and proposed measures, specific directions for each market are extremely important task of market research division of the company * Training staff working on forecasting Having exact collecting, processing and analyzing information on market and customers, thereby forecasting the demand and expectations of customers on the company's products Human resources are the most important factors determining accuracy of the information Therefore, training tem is needed * Equipping with computer systems serving the market analysis Equipment and systems are efficient tools to cater to the market forecast as it saves time Computer system will effectively support the work Today the computer system has been processing the data and for accurate results Information technology is applied thoroughly; who works market forecast should also have the capacity, skills on the computer, the software applications of market analysis, which needs to be invested * Setting reasonable reward Reasonably, reward and discipline are always effective method to mobilize and manage staffs To promote market research forecasts, the need to motivate them in the form of reasonable and timely reward that shall be deducted from the reward fund Reward value of income, or according to productivity, if you know the right person and right job, the reward is effective Mitalab Co Ltd should have a reasonable reward for staff working on market forecasts, simultaneously with the setting up the marketing, research and development forecasting of customer demand for each product on the target market 56 In the period of 2011 – 2015, company focuses to recruit and attract professional marketing staff, which promotes consumption of products, after sale services and reducing storage cost * Recruiting the professional Marketing staff Along with the training, the recruitment to select professionals will help the company take advantage of time to conduct marketing programs Currently, the company has six employees responsible for all marketing jobs such as collecting market information and find new customers, thus the efficiency of their work is not high, so the company recommends to recruit six more employees and assigned them to collect information from the market and customers through observation, newspapers, and Internet, from which analysis and trend assessment would be worked out with decision from leadership for long term development In the period 2011 - 2015, the company should focus on recruiting, marketing to attract professional staff with experience Marketing is important to promote consuming products, after sales service, customer care with the purpose is to reduce inventory costs 3.3.3 Developing and maintaining the Company's Firm Mitalab Co Ltd needs a long-term strategy of the Firm, it is associated with business operations of the company, in the period 2011 - 2015, Director is the person steering the boat of branch, who is really responsible and flexible The company's Firm contains a culture reflected in the behavior, sense of people working in the company, the working environment, work processes Corporate Firm in terms of market means that they must have company name in the market place, the good image of the company are kept, existing in the minds of customers 3.3.4 Distribution channel improvement * Market development: Search new target customers, Search market in the area surrounding the city of Hanoi, provincial hospitals and the North, the market of Central and South 57 - In the North: includes 25 provinces, about 90 major hospitals, and about 400 regional hospitals and district towns, where most of the major hospital hospitals, central hospitals located in the city Hanoi, this is the main market companies need to continue the search target customers, maintain the customer service and support after sales efficiency, at this stage the company needs to market is now looking for new areas trendier the district hospital, the hospital vicinity of Hanoi, then gradually expanding across the North supplied to hospitals and regional medical center and remote areas of the northern provinces such as Lai Chau, Dien Bien, Lao Cai, Cao Bang, Bac Can , which has been approved by decision No 139 of the government to provide health services for the poor and upgrade projects, provide medical equipment , the project was implemented from January 9, 2008 to 2014, during this period the company needs to immediately and effectively exploit market district hospitals, regional hospitals nearby city of Hanoi, then gradually expanding across the North - To further strengthen the effective operation of the branch in Ho Chi Minh City, to expand marketing and development of additional supply for 30 hospitals nearby Ho Chi Minh city and provincial level in the South, 10 provincial Hospital of Central and 30 districts’ Currently the company only supplied 272 hospitals of total 1036 national hospitals, (Source: Marketing Department - Mitalab Co Ltd) * Strengthening trade promotion Currently the communication and promotion is still very weak, the budget for this activity is very low Meanwhile, other companies as Luc Tinh Company This stage is focused and annual budget of nearly 10% of sales Thus, companies need to consider a proposed budget in line with this activity The company should perform the following activities next time: - Company should have the advertising activities of mass communication such as via Medical Journal, panels, posters in order to help clients have better understanding of the company and the company's products, stipulating purchase choice and competition in the market On the other hand, targeted advertising to increase sales, occupying and expanding markets also developed the company's reputation 58 In addition, to support sales, companies must also implement measures to promote sales - For sales promotion, companies should focus on building relationships with the public in the form of customer conference, seminars, and gifts giving - After-sales service has to be through in warranty their products, to bear all costs for customers In addition to advertising on mass media and Website, the participation into seminar to introduce products with trade promotion organizations and relevant ministries is also an effective form of advertising Companies can also compose e-mail sent to customers to introduce products, invite contracts for product supply 3.3.5 Defining price and product policies reasonably To be able to implement consistent product prices policies in the new period, the company should adopt measures to reduce costs: Forecast demand for goods close to reality, just in time delivery is always possible for customers (JIT), reduced inventory and storage costs Along with quality products and support services during and after the sale, the price will be the method used to compete quite effectively with competitors Reasonable prices are the major factor affecting the ability of the consumer Therefore, companies should always look for ways to build affordable plans to achieve maximum sales, business development, and to have the lowest cost to have profit 3.3.6 Promoting capital mobilization and usage sufficiently Currently the company's capital is too limited to expand markets, capital turnover is due to slow business customers are mainly state hospitals with payment for goods for most companies are slow compared with the contract, when the state budget had barely moved to the hospital and mostly in cash waiting for insurance payments, so payments are slower than the contractual provisions of the bidding documents The lack of capital is a problem causes many difficulties in expanding markets Business capital of the company are mostly bank loans, the interest rate is too high to pay for the bank making the price of the company's products increases, less 59 competition in the market, profits have to pay major interest should not be So companies need to make better use of capital measures as effective as: - Spin-up capital by reducing supplies, reduce inventory, not much good in stock - To mobilize and to fully exploit the capital sources with low interest rate - To enhance the payment after the sale, reducing the volume of goods sold on credit by consumers, encouraging sales paid immediately in cash Only allow clients with truly difficult issues to pay, then the company can delay payment, but must commit to a payment in the shortest period - Motivating staffs and employees in the company to contribute capital or give company loan with interest rate accordingly In the period 2011 - 2015, diversification strategy will lead to distributed capital investment; therefore, company should focus on efficient investment, market access, and deployment of new products Product quality will be the key elements to create customer confidence Thus, the diversification of the product is essential for Mitalab Co Ltd However, in the period 2011 - 2015 the company should focus on equipment used to testing and expanding installation of the software managing testing 60 CONCLUSION Today in the trend of international economic integration, the world became larger common market, many institutions appear commercially freedom This competition environment is more and more fierce and intense Open markets create many opportunities and challenges for businesses To survival and development, each company is required to find out correct direction, adapting to environmental changes The success of the company is not separate from meeting the needs and demands of customers Mitalab Co Ltd also needs to determine the right direction in the period of 2011 - 2015, creates an advantage for itself, winning the competition thanks to ahead steps in market expansion development Recognizing the important role of developing markets in the future period from 2011 to 2015, in this article, by learned knowledge and analytical skills, our team has built a strategic market development for Mitalab Co Ltd in the period of 2011 - 2015, this essay will have practical significance and contribution to the development of the company in the future We highly appreciate the useful help from Ms Nguyen Thanh Van- Director, Mr Doan Thanh Son -Vice Sales director, Mr Giang Thanh Binh - Vice Marketing Director, with other officials of Department of Organization and Administration of Mitalab Co Ltd helping us to finish this Capstone Project Report 61 REFERENCE Institute of Linguistics (2001), Vietnamese Dictionary, Hanoi – Da Nang, 2001, pp157, pp 529 Dong Thi Thanh Phuong (2010), Production and Service Administration, Labour – Social Publishing House Fred R David, Strategic Management Concepts and Cases – Twelfth Edition, Le The Gioi & Nguyen Thanh Liem & Tran Huu Hai (2009), Strategy Management, Statistical Publishing House Nguyen Huu Than (2010), Personnel Administration, Labor – Social Publishing House Ngo Kim Thanh & Le Van Tam (2009), Strategy Administration Textbook, National Economics University Publishing House Nguyen Huu Than (2010), Personnel Administration, Labor – Social Publishing House Pham Thi Thu Huong (2001), Strategy Administration in the Global Economy, National Political Publishing House 62 ... Number: Student’s name:Vu Thanh Binh Mai Gia Khanh Nguyen Ba Lai Team leader Nguyen Van Viet CLASS: MBA X0409 HANOI, 2011 ACKNOWLEDGEMENT LIST OF TABLES .4 LIST OF FIGURES