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GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING INSTALLATION AND CONSTRUCTION BUSINESS STRATEGY FOR BACH DANG CONSTRUCTION CORPORATION (BDCC) 2012-2015 Group Student :3 : Luu Hong Giang (Group’s leader) Tran Ngoc Anh Nguyen Ngoc Lan Chu Anh Tuan HANOI 2012 CONTENTs TABLE OF CONTENTS COMMITMENT ACKNOLEDGEMENT LIST OF ABBREVIATIONS LIST OF FIGURES AND TABLES INTRODUCTION CHAPTER 1: THEORETICAL BACKGROUND ON CORPORATE STRATEGY FORMULATION 1.1 Corporate business strategy 1.1.1 Viewpoints on strategy 11 11 11 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 1.1.2 Basic characteristics of strategy 12 1.1.3 Role of strategy 13 1.2 Types of business strategies 13 1.3 Strategy formulation process 14 1.3.1 Defining mission of the organization 15 1.3.2 Determining objectives of business strategy 15 1.3.3 External environment analysis 15 1.3.3.1 Macro-environment 15 1.3.3.2 Industry environment 18 1.3.4 Enterprise’s internal environment analysis 21 1.3.4.1 Production and technology 22 1.3.4.2 Research & development 22 1.3.4.3 Finance 23 1.3.4.4 Human resources and organizational structure 23 1.3.4.5 Marketing and sales 24 1.3.4.6 Determining sustainable competitive advantages 24 1.3.5 Strategy selection 25 1.4 Techniques of strategy analysis 26 CHAPTER 2: ANALYZING BASES FOR INSTALLATION AND CONSTRUCTION BUSINESS STRATEGY FORMULATION OF BDCC 2.1 2.1.1 2.1.2 2.2 2.2.1 2.2.1.1 2.2.1.2 2.2.1.3 2.2.1.4 2.2.1.5 2.2.2 2.2.2.1 2.2.2.2 2.2.2.3 2.2.3 2.3 2.3.1 2.3.2 2.3.3 Overview of BDCC Establishment and development Vision, mission and core value External environment analysis Macro-environment analysis Economic factor Technological factors Socio-cultural factors Legal-political factors Global factors Industry environment analysis Overview on Vietnam Construction Sector in 2010 and Forecast up to 2015 Five Forces Model analysis of BDCC Opportunities and threats to business environment of construction sector External Factor Evaluation (EFE) Matrix Internal environment analysis of the BDCC Financial potential analysis Physical resource analysis Human resource analysis 28 28 28 30 30 30 30 32 33 33 35 36 36 37 40 41 42 42 43 44 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 2.3.4 2.3.5 2.3.6 2.4 Brand Marketing qualification Internal Factor Evaluation (IFE) Matrix SWOT analysis of BDCC 45 45 45 46 CHAPTER 3: SELECTING INSTALLATION AND CONSTRUCTIONBUSINESS STRATEGY & SOLUTIONS ON IMPLEMENTATION FOR BDCC IN 2012 – 2015 PERIOD 3.1 Development orientation of BDCC in 2012-2015 period 3.2 Business strategy alternatives selected for 2012-2015 period 3.3 Strategic solutions 3.3.1 Solutions on technology 3.3.2 Solutions on human resources 3.3.3 Solutions on capital 3.3.4 Solution on marketing 3.3.5 Product restructuring 3.4 Roadmap for strategy implementation 3.5 Budget for the proposed strategy 3.6 Recommendations 3.6.1 Improving the Corporation’s structure 3.6.2 Evaluating and allocating human resources 3.6.3 Investing and renovating technology CONCLUSION REFERENCES APPENDIX 50 50 52 52 52 53 54 55 56 56 56 56 56 57 58 59 60 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn COMMITEMENT We would like to commit that the research results are the efforts of the whole group All the data and results in this study are authentic We also would like to guarantee that the analysis in this study is selected carefully from the references and learned theories ACKNOWLEDGEMENT We would like to express our sincere thanks to cadres and staffs at Bach Dang Construction Corporation for having enthusiastically supported, supply data to us, as well as arranged meetings to discuss about business strategy of the Corporation In addition, we are also grateful for professors and doctors for equipping us with knowledge and skills on corporate management during the course These are necessary based for research as well as useful experiences for practice We also would like to express our special gratitude to ETC Center – Vietnam National University, Hanoi and Griggs University for their support during the completion of this study AUTHORS Luu Hong Giang (Group’s leaders) Tran Ngoc Anh Nguyen Ngoc Lan Chu Anh Tuan GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn BDCC SWOT GDP PEST HUD LIST OF ABBREVIATIONS Bach Dang Corporation Strengths, Weakness, Opportunities, Threats Gross Domestic Product Political, Economics, Socio-cultrural, Technological Housing and Urban Development Holdings LIST OF FIGURES AND TABLES FIGURE Figure 1.1 – Strategy formulation process Figure 1.2 – PEST model in macro-environment analysis Figure 1.3 – Five Forces Model by Michael Porter Figure 1.4 – Value chain of an organization TABLES Table 1.1 – Process of recognizing sustainable competitive advantages Table 1.2 – Changes in concentrated growth strategy Table 1.3 – Changes in integrated growth strategy Table 1.4 – SWOT Matrix Table 2.1 – GDP growth by year Table 2.2 – Corporations with the same business line in Vietnam Table 2.3 – Competitive Profile Matrix (CPM) Table 2.4 – External Factor Evaluation (EFE) Matrix Table 2.5 – Some main financial items in 2008, 2009 and 2010 Table 2.6 – Some main financial items for installation & construction sector Table 2.7 – Human resource of BDCC in 2011 Table 2.8 – Internal Factor Evaluation (IFE) Matrix Table 2.9 – SWOT Matrix Table 3.1 – Quantitative Strategic Planning Matrix (QSPM) Table 3.2 – Structure of products in 2012 – 2015 period Table 3.3 – Basic targets for 2012 – 2015 period Table 3.4 – Roadmap for strategy implementation GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn INTRODUCTION After studying at Global Advanced Master of Business Administration Program co-organized by Center for Educational Technology and Career Development - Vietnam National University, Hanoi and Griggs University – USA in Vietnam Members of group 03 agreed on selecting the topic: “Formulating installation and construction business strategy for Bach Dang Construction Corporation in 2012 – 2015 period" With the expectation to formulate business strategy for the Corporation so as to find out solution to enhance its business and production efficiency in 2012 – 2015 period The necessity of the study Over the past years, Vietnam’s construction sector has developed in both horizontal and vertical directions However, the world economic integration of Vietnam has posed a lot of challenges to Vietnam’s economy in general and construction sector in particular The increase in number of foreign construction corporations from Asian countries like Japan, South Korea, China, etc showed that competition has become tougher The increasing entry of both domestic and foreign construction enterprises brings about both opportunities and threats for construction enterprises in integration process To overcome challenges and utilize opportunities, construction enterprises are required to determine their strengths as well as weaknesses; and formulate appropriate business strategies for each period and each market under the principle of ensuring efficient business and production, making contribution to the development of construction sector and the country’s economy Bach Dang Construction Corporation (BDCC), under Housing and Urban Development (HUD) – Ministry of Construction, is mainly operated in the fields of constructing industrial and civil projects With the history of above 53 years for construction and development, BDCC has constructed many big projects in Vietnam However, after investigating business situation of the Corporation, we realize that there are still some shortcomings in the Corporation’s business and production activities despite its optimistic level of profit in recent years Besides, the Corporation has not been able to make full use of its strengths to overcome other enterprises in the industry To develop the business and production situation of GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn BDCC sustainably, there must the formulation of a business strategy to help it follow a right track on the integration roadmap Owing to the necessity and importance of business strategy formulation for the Corporation in particular and construction industry in general, we have selected the topic: “Formulating installation and construction business strategy for Bach Dang Construction Corporation in 2012 – 2015.” Practical bases Along with the development of the world and International integration trend, Vietnam is renovating, stepping into the age of industrialization and modernization, constructing infrastructure, and developing the country’s economy At present, Vietnam is building plants, industrial parks, new urban areas, etc; therefore, construction industry plays a very important role in the country’s development process Previously, construction enterprises only bore the competition of domestic and joint-venture companies; afterwards, competition has become tougher and tougher with the occurrence of experienced foreign construction groups with management experience, high technological level and strong financial capacity This has alerted the threat of contracting the market for Vietnam’s construction enterprises GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn The world economic is changing complicated and tends to fall into a new crisis, especially the debt crisis in Greece and some European countries have not been improved In domestic, inflation rate, exchange rate and prices of goods are raising high, having significant impact on business and production in general and construction enterprises in particular Therefore, each construction enterprise must have wise and appropriate business strategy for each period Business strategy plays a very important role in doing business, providing enterprise a proper orientation to gain their set targets Objectives of the study  Systemizing knowledge and basic theories on business strategy formulation  Analyzing the basis to form business strategy for BDCC  Giving out solutions to implement the business strategy of BDCC in 2012– 2015 period Object and scope of the study  Object: Formulating business strategy for Bach Dang Construction     Corporation Scope of the study: Vietnam’s construction market in 2012- 2015 period Methodology of the study Data supplied by BDCC Information about construction market collected from the mass media Method of studying available document to consider the scale, structure and movement trend of the market  Comparison: Considering each criterion in both absolute and relative ways, following both movement of time and space  Particular assessment method: When analyzing each issue, criterion and phenomenon to evaluate the nature of the issue  Comprehensive assessment method: giving general evaluation on all aspects of operations of construction sector  Reason for selecting these research methodologies: Being able to reflect business situation at construction and installation unit in 2012-2015 period Structure of the study: Main content of the study consists of three chapters:  Chapter 1: Theoretical background on corporate business strategy  Chapter 2: Analysis on the bases for formulating strategy of BDCC  Chapter 3: Selecting business strategy and solutions for implementation of BDCC in 2012 – 2015 period GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Allocating tasks for the group’s members Member 1.Luu Hong Giang (Group’s leader) Tran Ngoc Anh Nguyen Ngoc Lan Chu Anh Tuan Chapter Introduction Chapter Chapter Conclusion Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Slides Item 2.1; 2.3 3.1; 3.4 1.4 2.2 3.2 1.3 2.4 3.3 1.1; 1.2 3.5 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CHAPTER I: THEORECTICAL BACKGROUND ON CORPORATE BUSINESS STRATEGY FORMULATION 1.1 Corporate business strategy 1.1.1 Viewpoints on strategy According to traditional viewpoint, “Strategy is studying and finding out a suitable competitive position in an industry, a major scope of operation in which there are competitive activities” – Micheal Porter According to this definition, strategy stresses on the aspect of competition Meanwhile, according to Alfred Chandler “The determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.” James Quinn, at Dar mouth University defined “a strategy is the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.” Meanwhile, as defined by Willam F.Gluck “Strategy is a consistent, comprehensive and coordinative plan designed to ensure that the basic objectives of the enterprises are successfully implemented” The development trend of strategy based on planning has been no longer popular The reality has proved that well-established plans are sometime ineffective, while random plans are sometime essential some operations of enterprises In short, traditional viewpoints have exposed their weaknesses Nowadays, modern viewpoints on strategy have gradually replaced traditional ones These viewpoints not stress on the calculation, planning, but on the selection of suitable strategy with the objectives set by the organization In general, modern viewpoints on strategy have tried to return to the nature of the term “strategy”, at the same time, ensure the adaptation of this term to the changing business environment It is not easy to give out clear and accurate definition on strategy This issue can be solved if we care about factors of strategies that have significant implication to every organization Under any circumstance and context, these factors much depend on current situation of enterprises, members in the organization as well as 10 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn of investor, nuclear issue, Research & Development war, and food deficit (W5, T3, T4) Macro-economic problems Improve equipment and having not been settled such new technology (W1, T4, as macro-economic stability, T5) growth, economic restructuring and inflation control Complicated weather changes cause damage in terms of people and property affecting the progress of projects New construction technology is applied, but cannot avoid competition There are many construction enterprises from other countries like Japan, South Korea, China, etc In this chapter, affecting factors to BDCC’s business strategy include internal and external environment, and general analysis on strengths, weaknesses, opportunities and threats As analyzed above, at present, BDCC is one of the leading corporations in the field of installation and construction in Vietnam The Corporation’s scope of operation is quite large compared to other corporations in the same sector Besides, financial situation of the Corporation is quite stable; management staff has high qualification and a lot of experience; human resources are stable; and construction facilities have been improved 47 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn However, SWOT analysis of the Corporation also shows strengths, weaknesses, opportunities and threats of BDCC In general, SWOT Matrix shows that weaknesses and threats are overwhelming opportunities and strengths of Therefore, the Corporation is recommended to find out strategic solutions as mentioned above to minimize weaknesses and improve business and production situation 48 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CHAPTER 3: SELECTING INSTALLATION AND CONSTRUCTION BUSINESS STRATEGY & SOLUTIONS ON IMPLEMENTATION FOR BDCC IN 2012 – 2015 PERIOD 3.1 Development orientation of BDCC in 2012-2015 period Installation and construction field is the center in development strategy of the Corporation Besides, the Corporation will continue to sustain and develop projects on manufacturing construction materials; investigate to produce new environmentfriendly material such as gypsum, non-baked bricks, etc; invest in real estate projects that are suitable with financial capacity of the Corporation and have high economic efficiency; enhance the field of consultancy and design to meet the increasingly strict requirements of construction projects 3.2 Business strategy alternative selected for 2012-2015 period Based on the analysis on related environment conditions, core capacity and results have been carefully considered in the combination of suitable criteria of BDCC in SWOT analysis in Chapter II The Corporation selects first strategy of SO strategies - Market Expansion Strategy (the strategy with higher score) in 2012 – 2015 period via the following tables: 49 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Table 3.1 The Quantitative Strategic Planning Matrix (QSPM) Strategic Alternatives Key Factors Weight Market Expansion Improve Product Quality AS TAS AS TAS 0.60 0.30 0.10 0.10 0.20 0.30 0.10 0.20 0.08 0.08 0.08 0.06 0.06 0.24 0.15 0.30 0.30 0.11 0.12 1 0.11 0.12 0.11 0.24 0.05 0.05 0.10 The number of enterprises in the field of construction is quite significant 0.08 0.16 0.08 Strengths Healthy financial situation Strong brand in domestic market Constructing many key projects of 0.15 0.20 3 0.45 0.60 0.30 0.20 0.05 0.10 0.05 0.30 0.20 0.15 0.30 0.10 0.30 0.20 0.15 Opportunities Big projects have drawn great attention of the Government Macro-economy from 2012 will be better Global economic integration Prices of construction materials have been stabilized gradually Legal frameworks on construction works have been enacted Threats Bank interest rate remains quite high Inflation rate is high Technology development Construction planning has not been timely and adequate the country Having experienced staff of 0.15 1.00 managers and engineers Owing many modern machine and 0.10 equipment Weaknesses Unskilled workers Having not constructed many 0.15 0.10 0.15 50 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn projects in the South Lacking experience in bidding for big projects outside the country Total 0.10 1.00 (Source: Formed by the Group) 0.20 3.98 0.10 3.45 Notes: Attractiveness Scores (AS), Total Attractiveness Scores (TAS) 3.3 Strategic solutions 3.3.1 Solutions on technology To become a strong corporation, BDCC needs to further strengthen the application of modern construction technology in constructing works such as C-deck empty floor technology, the method of reinforced soil Top-base, lightweight concrete panel technology, steel frame house technology, heat-proof roof by using bubble concrete, using adobe bricks, etc., gradually replacing old and backward equipment with new equipment with modern features Improving the capacity of machinery and equipment and renovating manufacturing technologies make contribution to ensuring high quality of products, and raising the position and reputation of the Corporation 3.3.2 Solutions on human resources Human resource is a very important factor; this factor has impacts on all other factors in the business Thus, the BDCC should always pay attention to its employees Owing to the characteristic of the construction industry, officials and employees often have to work far from their house and work in severe weather environment, so the Corporation should have to pay more attention to policies on welfare, reward and training so that the employees are engaged and devoted to the Corporation In addition to the welfare policy, BDCC also should pay attention to training staffs in terms of professional qualification as well as knowledge of society and communication Therefore, the staff is being more and more improved Improving capacity and professional qualification of the staff and leaders is an objective demand Although the professional qualification of the staff is currently paid 51 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn attention to be improved, it has not been adequate and met the requirements compared with the requirements of business development in the integration BDCC should continue to invest more in training Some specific solutions are as follows: - Concentrating on suitably arrange personnel of the departments or divisions of the Corporation - Developing a personnel management system and evaluation program to improve labor productivity - Developing professional, friendly and cohesive working environment, motivating employees to work - Developing a policy on wage and reward based on the work performance - Regularly training employees on professional knowledge and concentrating on training staffs taking care of customers who are strategic and big partners 3.3.3 Solutions on capital Capital is considered one of key factors, opening the door for enterprises to access investment and business activities BDCC's capital has not been utilized efficiently for the past few years In addition, expanding business lines into other field will require more capital in the coming years To improve the capital as well as strengthen the financial resources, the Corporation needs to attract both internal and external resources - External resource: The Corporations needs to mobilize capital by issuing shares to raise its charter capital, increase productivity, reduce production costs, improve economic efficiency, accumulate and develop equity In addition, BDCC needs sign documents on comprehensive cooperation with some credit institutions to gain initiative in credit loans At the same time, the Corporation also needs to actively carry out research on opportunities for cooperation with partners at home and abroad to seek funds - Internal resource: The Corporation can mobilize capital from their employees and other investors to deploy new projects, especially on-going projects 3.3.4 Solutions on marketing 52 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Marketing strategy is an independent one which is mixed with other strategies It plays a role as a key to open the door for new products Marketing Department needs have functions as follows: - Establish market profile and make revenue forecast: Based on the statistics on the rivals, Marketing Department should carry out surveys on customers of sectors and make an estimate on detail income of the whole market Thereby, it defines the market share which BDCC is able to achieve The Corporation is able to take full advantage of available researches on the issue of authorizes and research institutes - Studying customers’ behavior Construction market is a market of large organizations and long-term cooperation The bidding decisions are carefully considered The leader of the Corporation needs to know the information about its customers and assign different groups to take care of the customers The leader of each group needs to understand the behavior and attitude of customers and the understanding of customers about BDCC - Market segmentation and positioning: At present, construction investors as well as enterprise have demand for consultancy to designing and constructing activities as well as selling products under various forms and different types Depending on each market segment and partner, types and different levels of service fee can be applied to meet every demand of customers Above-mentioned contents are all the strategic solutions used to support the mixed strategy The successful implementation of these solutions requires high determination and ingenious capacity management In addition, it is necessary to improve the structure of the Corporation, allocate resources efficiently, strengthen the information system including strict supervision of training and investment in technology, increase good employees with knowledge and morals; ultimately develop distinctive characteristic to the Corporation through the implementation of the strategy This is a business secret, helping maintain the reputation of the Corporation 53 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 3.3.5 Product restructuring Restructuring products is a part of strategy to reduce scale of some certain products and promote other products to raise business and production efficiency Table 3.2 Structure of products in 2012 – 2015 period No Group of products Proportion in Proportion in 2011 (%) 80 2015 (%) 75 - Industrial construction 55 60 - Civil construction 15 10 - Technical infrastructure construction 07 04 - Other construction 03 01 Field of investment Other fields: 15 05 20 05 - Manufacturing construction materials 04 04 Fields of construction: - Consulting, designing 01 (Source:The five-year (2011 -2015) plan of BDCC) 01 According to the above table, the proportion of constructions sector will be kept unchanged according to the new strategy; however, the proportion of industrial project construction increases by 10%; while that of civil projects decreases by 5% Although the Corporation is a member of HUD, with the current frozen real estate market and unstable macro-economy, the growth target of 5% in the field of real estate investment is unreasonable Table 3.3 Basic targets for 2012 – 2015 period No Major targets Annual business and production growth Total business and production value Total revenue Invested value Equity 54 Unit % VND billion VND billion VND billion VND billion 2015 13 5.200 4.800 960 1.000 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn VND million Average income/person/month (Source:The five-year (2011 -2015) plan of BDCC) 3.4 Roadmap for strategy implementation To implement strategic solutions effective, BDCC has formed following roadmap: Table 3.4 Roadmap for strategy implementation No Solution Solutions on technology Solutions on human resources Solutions on capital Solutions on market Solutions on product structure 2012 2013 2014 2015 (Source:The five-year (2011 - 2015) plan of BDCC) 3.5 Budget for the proposed strategy Total budget for the proposed strategy is 200 VND billion in 2012 – 2015 period 3.6 Recommendations 3.6.1 Improving the Corporation’s structure To catch up with the new trends such as specialization in a large scale, raise efficiency and optimize profit, BDCC needs to determine the missions and functions for each board, department and unit to make the implementation more effective Specifically, the Corporation is recommended to improve competencies and decision-making capacity of boards, departments and units; at the same time, reduce unnecessary divisions The Corporation is recommended to let employees clearly understand the vital implication of business strategy to the Corporation in the context of fierce competition 3.6.2 Assessment and allocation of human resources To implement the strategy successfully, the Corporation should evaluate and mobilize resources Human resource Department is responsible for coordinating with other departments or divisions When recognizing the likelihood of success will start allocating finance, manpower and time 55 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Currently, the Corporation also has thorough processes on recruitment and paying wage Although the staffs have been developed in terms of qualification, quantity and structure, policy on drawing the talent of the corporation has not been paid a proper attention Therefore, in some coming years, this policy should be done carefully and systematically Specifically, the Corporation should have a strategy to develop human resources in the next five years and balance the budget plan for this activity In particular, recruitment, training and retraining should be implemented seriously and regularly 3.6.3 Investment in technology renovation Technology is one of the three keys for the process of improvement Therefore, the mixed strategy, the Corporation should continue to apply the quality control system ISO 9001-2008 In addition, the Corporation needs to apply software and advanced computer programs to its operation and management activities It is also useful for the study and application of technologies in the design and construction to minimize production cost and maximize profit CONCLUSION With over 53-year experience in constructing works, Bach Dang Construction Corporation has made significant contribution to GDP growth and income generation for the country, and it is a leader in the field of constructing works Analyses on all aspects of the Corporation for the past few years have reflected the strength of the Corporation in terms of its stable financial position, big market share and outstanding core competencies However, the global economic crisis took place in 2008 and its aftermath has made the world economy unstable up to now Capital reduction, macroeconomic 56 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn imbalance, inflation and volatile materials market have hindered the development of the Corporation In addition, in the context of integration trend and fierce competition of the products and potential markets, the strategies and entry barriers of the Corporation have become obsolete With the application of analytical methods on modern strategy models using updated statistical data collected from the construction industry and Corporations, the study on "Building business strategy in construction and installation for Bach Dang Construction Corporation in 2012-2015 period" has partly stressed the need for the study in the current context to help BDCC become the leading construction Corporation in terms of quality and market share in the industry Furthermore, this study has paved the way for a new method of analysis on business strategy of the Corporation, depending on the crystallized knowledge and human resources after pursuing the strategy for years REFERENCES Books Charles W.L Hill, Gareth R Joines (2002), Strategic Management: An Integrated Approach, 5th edition Houghton Mifflin Fred R.David (2011), Strategic Management Concepts & Cases, 13th edition, Pearson Education Limited, England Harvard Business Essentials, Effective business strategies (2006), Ho Chi Minh City General Publishing House David A Secenzo, Stephen P Robbins (2002), Human resources Management, 7th edition, John Wiley & Son, Inc Jack W Calhoun (2004) Financial Management Principles, 10th edition, Thomson Ass Prof Dr Le The Gioi, (2007), Strategic Management, p 166, Statistical Publishing House 57 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn M.E Porter, Competitive strategies (New York: Free, Press, 1980) Rap and Tom Collins, Maxi Marketing, New York: Mc Graw-Hill, 1987 Other publications Annual reports in 2008, 2009 and 2010 of Bach Dang Construction Corporation Ministry of Construction (2011) Report on the implementation of plans in 2010; orientation and basic missions of construction sector in 2011, Hanoi: Website of the Ministry of Construction Report from Vietnam’s General Statistics Office (2010) Websites http://www.moc.gov.vn http://www.strategy-business.com 58 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn APPENDIX Appendix 1: List of some typical projects being already completed or in progress of BDCC NO Project Investor Value (VND billion) Note Scale/capacity 1.200 MW PetroVietnam 1.300 In progress I Thermal power plants Vung Ang Thermal Power Plant (Ha Tinh) Pha Lai Thermal Power Plant (Hai Duong) 600 MW EVN 55 Completed Uong Bi Thermal Power Plant (Quang Ninh) 600 MW EVN 75 Completed Son Dong Thermal Power Plant – Bac Giang 300 MW EVN 144 Completed II Cement plants Holcim Viet Nam Cement Plant (Kiên Giang) million tons/year Vietnam Cement Corporation (Vicem) 300 Completed Hoang Thach Cement Plant (Hai Duong) million tons/year ViCem 555 Completed Phuc Son Cement Plant (Hai Duong) million tons/year ViCem 135 Completed Chinfon Cement Plant (Hai Phong) million tons/year Chinfon 467 Completed Hai Phong Cement 4million tons/year ViCem 250 Completed Hoang Mai Cement Plant (Nghe An) million tons/year ViCem 120 Completed But Son Cement Plant (Ha Nam) million tons/year ViCem 152 Completed Bim Son Cement Plant (Thanh Hoa) million tons/year ViCem 180 Completed Tam Diep Cement Plant (Ninh Binh) million tons/year ViCem 125 Completed 10 Ninh Thuy Cement Plant (Nha Trang) Factories Bach Dang Ship Building Factory (Hai Phong) Cai Lan Ship Industry Plant (Quang Ninh) Yanagawa Seko Factory ( Hai Phong) Honda Factory 1.4 million tons/year Nghi Son Cement Company 237 Completed 60 Completed 68 Completed 61 Completed 125 Completed III Bachdang Shipbuilding Industry Corporation Cai Lan Ship Industrial Company 39.000 m2 40.000 m2 43.000 m2 50.000 m Yanagawa Seko Vietnam Honda Vietnam 59 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn IV (Vinh Phuc) Yazaki Factory (Hai Phong) Canon Factories (Vinh Phuc, Bac Ninh) Youngone Textile Factory (Nam Dinh) Sunidenso Factory (Hai Duong) Other projects Thach Ban Apartment Building (Hanoi) Hai Phong irrigation system National Road No 18 (Bac Ninh) 80.000 m2 Yazaki Vietnam 150 Completed 65.000 m2 Canon Vietnam 190 Completed 140.000 m2 Youngone Vietnam 350 Completed 32.000 m2 Sumidenso Vietnam 56 Completed 267 In progress 487 In progress 300 Completed Berjaya – Handico 12 Co.Ltd Management Board of project environment and irrigation project in Hai Phong Ministry of Transport of Vietnam 28.000 m2 30 Km Appendix 2: Projects have been being invested Material manufacturing plants in operation No Plan Bach Dang Brick Manufacturing Plant Pile and Prestressed Centrifugal Concrete Electrical Pole Manufacturing Plan Steel Structure Manufacturing Plant Location Kim Thanh – Hai Duong Hai An – Hai Phong An Lao – Hai Phong Total investment (VND billion) 50 100 80 Real estate projects being invested No Project Location Service, Commerce and Apartment Building Service, Commerce and Apartment Building No.7, Tran Phu, Ha Dong, Hanoi No.89 Nguyen Chanh, Ha Dong, Hanoi Nui Deo Town, Thuy Nguyen, Hai Phong No.97 Bach Dang, Hong Bang, Hai Phong No.266 Tran Nguyen Han, Le Chan, Hai Phong Nhon Trach District, Dong Nai Go Gai Residential area Apartment Building and service projects Low-rise housing area Phuoc An Urban area 60 Total investment (VND billion) 300 250 600 200 120 150 ... Feedback (Source: Strategic Management – GaMBA Program) 13 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 1.3.1 Defining mission... 44 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 2.3.4 2.3.5 2.3.6 2.4 Brand Marketing qualification Internal Factor Evaluation... 60 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn COMMITEMENT We would like to commit that the research results are the efforts