Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (149)

Building Business strategies for Engineering construction No.419 joint stock company CAPSTONE PROJECT REPORT “Build up business strategy for Engineering Construction no.419 joint stock company by 2020” GROUP No.6 Nguyễn Kiên Cường - Group leader Hồng Mạnh Trí - Group member Bùi Văn Phú - Group member Nguyễn Minh Hiếu - Group member Class: GaMBA 01.V03 Nghe An 2011 -1- Building Business strategies for Engineering construction No.419 joint stock company ACKNOWLEDGMENTS We sincerely thank the Board of administor, Board of Directors and departments of Engineering construction No.419 Joint stock company enthusiastically helped us in the process of providing data and advice issues related topics Besides, we would like to thank the teachers of Griggs’s training program, ETC, management board of the class and leaders of offices, Hanoi national University has provided us with the knowledge and skills in business administration during the course, thank all the member in ETC Center of Hanoi National University has accompanied and supported us in the process of learning and comleting the subject Our warmly thanks! VARIOUS AUTHORS -2- Building Business strategies for Engineering construction No.419 joint stock company COMMITMENTS We swear that the topic : “build up business strategy for Engineering Construction no.419 joint stock company by 2020” which the topic is studied by our Group All the databases are supplied by Engineering Construction no.419 joint stock company, all the results in the topic are honesty and has not been published by anyone, any topics before yet Vinh, April 2011 GROUP No.6 CONFIRMED BY: ENGINEERING CONSTRUCTION N0.419 JOIN STOCK COMPANY We realize that: all the datas are supplied by our company and we also thank the authors whom gave out business trategies for our company -3- Building Business strategies for Engineering construction No.419 joint stock company TABLE OF CONTENTS pages ACKNOWLEDGMENTS COMMITMENTS CONFIRMED BY ENGINEERING CONSTRUCTION N0.419 JOIN STOCK COMPANY PREFACE The need of topic study Study target: Study method: .8 Study scope: Scientific and realistic significances of the topic: .9 Topic structure: CHAPTER I ARGUMENTAL BASIS TO BUILD UP BUSINESS STRATEGIES FOR THE ENTERPRISE .10 I DEFINITION AND THE ROLE OF BUSINESS STRATEGIES FOR ENTERPRISE 10 Definition and the role of business strategies .10 Distinction of business strategy 10 Levels of business strategies 11 3.1 Enterprise level strategy 11 3.2 Business unit strategy 11 3.3 Functional level strategy 12 II PROCESS TO BUILD UP BUSINESS STRATEGY FOR THE ENTERPRISE Study business opportunities and prediction of market demand .12 Requirement and basis to build up business strategy 13 2.1 Requirement in building up business strategy 13 -4- Building Business strategies for Engineering construction No.419 joint stock company 2.2 Basis to build up business strategy: 14 Process to build up business strategies .15 Select and make decision on business strategies .16 4.1 Principle to appraise and evaluate business strategies 17 4.2 Standard to appraise and evaluate business strategies .17 4.3 Select and make decision on business strategy 18 Factors impact on process to build up business strategies in the enterprise .18 5.1 Global business environment .19 5.2 National economic environment 19 5.3 Sector environment (operational environment) 19 5.4 Internal factor of the enterprise 20 III CONTENTS OF APPROACH BUSINESS STRATEGY 21 Overall strategy 22 Partial strategy 23 CHAPTER II ANALYSIS OF BASIS TO BUILD UP BUSINESS STRATEGIES FOR ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY 24 I FORMATION AND DEVELOPMENT OF ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY 24 Formation and development: 21 Diagram of management machine: 25 Production process: 27 Implemented and being implemented projects 27 Mission, strategic targets and operational orientation of the company .27 5.1 Mission of the company: 27 5.2 Main targets of the company 27 5.3 Orientation of the company: 28 II ANALYSIS OF BUSINESS ENVIRONMENT -5- OF ENGINEERING Building Business strategies for Engineering construction No.419 joint stock company CONSTRUCTION NO.419 JOINT STOCK COMPANY 28 Analysis of internal environment of the company 28 1.1 Analysis of operational sector 28 1.2 Analysis of marketing capacity (advertise image and products of the company) 30 1.3 Analysis of human resource 30 1.4 Analysis of organizational structure and administration machine of No.419 Company 32 1.5 Analysis of financial capacity 33 1.6 Some other strengths of Engineering construction No.419 Joint stock company 36 1.7 General analysis of internal environment of the company 36 Analysis of external environment of the company 37 2.1 Macro environment 38 2.1.1 Economic environment: 38 2.1.2 Legal and political environment: 39 2.1.3 Scientific and technological environment 40 2.1.4 Social and cultural environment 40 2.2 Sector environment 41 2.2.1 Pressure from competitive opponents 41 2.2.2 Pressure from customers 43 2.2.3 Pressure from providers 44 2.2.4 Pressure from potential competitive opponents .44 2.2.5 Pressure from replaced products 45 2.3 General analysis of external business environment 46 Formation and selection of strategy 47 CHAPTER III SOLUTIONS TO IMPLEMENT -6- BUSINESS STRATEGIES IN Building Business strategies for Engineering construction No.419 joint stock company ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY 50 I CONTENTS OF SELECTED BUSINESS STRATGY IN ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY 50 Bidding strategy: .50 1.1 Advantage and price –based bidding 50 1.2 Technique and technology based bidding 50 1.3 Financial capacity based bidding 51 1.4 Non-economic advantage based bidding 51 Human resource development strategy: 51 Capital mobilization strategy: 52 II SOLUTIONS TO IMPLEMENT BUSINESS STRATEGIES IN ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY 52 Solutions for bidding strategy: 52 1.1 Solutions for advantage and price –based bidding: 52 1.2 Technique and technology based bidding: 53 1.3 Financial capacity based bidding: .53 1.4 Non-economic advantage based bidding 53 Solutions for human resource development strategy: 53 Solutions for capital mobilization strategy: III CONDITIONS AND ROUTE OF IMPLEMENTATION AND SOME RECOMMENDATIONS .54 Implementation conditions 54 1.1 Conditions of validity and effect of business strategies 55 1.2 Conditions of human factor 55 Route of implementation 55 Some recommendations 57 CONCLUSIONS 58 REFERENCES .59 -7- Building Business strategies for Engineering construction No.419 joint stock company PREFACE The need of topic study In recent years, Vietnamese market economy with the appearance of many economic sectors has got many positive changes in which economic growth rate is rather high, State’s policy has been gradually improved, business environment has been more and more in equality that creates many good condition for enterprises In global economic integration, Vietnamese enterprises must cope with many opportunities as well as new, complex and risky business environment During the time when studying Global executive Master of business administration in Viet Nam organized by Griggs University, we have approached many theories of business administration in enterprise; approaching theory without applying into reality will not bring good results, which has impacted on our ideas on this capston project report With such significance, we are bold to choose the following topic “build up business strategy for Engineering Construction no.419 joint stock company by 2020” as the topic for our report Study target: This topic has the target which is to construct a business strategy to promote the development of Engineering Construction no.419 joint stock Company within 2011 -2020 Study method: We have used the following methods: applying theory of system, prediction, general analysis (qualitative and quantitative), statistics and comparison Secondary data are collected in Engineering construction no.419 joint stock Company (abbreviated name: EC NO.419 JSCO) and some directly competitive companies, opponents of no.419 traffic project construction joint stock Company Besides, there are also some financial data, economic data via papers, Websites… Study scope: This topic is done in correlation with many different scientific sectors such as -8- Building Business strategies for Engineering construction No.419 joint stock company economy, finance, law, problems of global economic integration, updated news….However the topic is just within the study scope on business activities of EC NO.419 JSCO and enterprises of the same sector with the consideration of general situation of transportation sector in current period and in the coming time Scientific and realistic significance of the topic: - The topic can help managers and administrators of EC NO.419 JSCO to have a general view on business strategy of enterprise, consolidate knowledge and skills to construct and present business strategy of the enterprise - The topic provides the company with a plentiful references and concrete business strategy within 2011 -2020, which is a significant period for development strategy of the company as well as transportation sector - The topic can raise the importance and significance in analyzing and predicting business environment of the enterprise, quantified problem of influence level of environmental factors (internal factors– external factors) in constructing and analyzing matrix in analysis frame of strategy formation Topic structure: The main structure of the topic includes chapters (preface and conclusion) Chapter 1: Argumental basis on business strategy of enterprise Chapter 2: Content to construct business strategy of Engineering construction no.419 joint stock Company Chapter 3: Methods to implement business strategies of Engineering construction no.419 joint stock Company During the time to study and finish the topic, our group has received great help from lecturers and teachers of Griggs’s training program, ETC, management board of the class and leaders of offices, divisions of Engineering Construction no.419 joint stock Company Then on behalf of group 6, I want to show my great gratitude to all of you! -9- Building Business strategies for Engineering construction No.419 joint stock company CHAPTER I ARGUMENTAL FOUNDATION TO BUILD UP BUSINESS STRATEGY FOR THE ENTERPRISE I DEFINITION AND THE ROLE OF BUSINESS STRATEGY FOR THE ENTERPRISE Definition and the role of business strategy Since 1950s of twentieth century, business strategy has been applied rather widely in management and strategic administration has been proved as an effective management method which has been widely applied in enterprises of developed nations Within any scope of management, strategy can still prove its own advantage on all following aspects: - Orient long term activities and be the strong basis for implementing operational activities - Create firm foundation to study, implement, invest, develop, and train human resource - Create foundation for enterprise to be active in developing business orientation suitable to the environment based on exploiting opportunities, promoting advantages of enterprises in business - Improve situation, position of a company, sector and locality; profits in term of finance and non-finance Currently, there are many different definitions on business strategy “Business strategy is a series of commitment and action that a company can use to get a competitive advantage by exploiting core capacity in a defined market " Currently popular approach defines: “Business strategy is total long term targets, financial policies and big solutions of production – business, finance and solving human factor to bring business activities of an enterprise to a higher qualitative development” - 10 - Building Business strategies for Engineering construction No.419 joint stock company for the traffic increasingly, the amount of investment capital to build huge barriers to entry of private enterprises is very large so that the orientation of the Company is focused on the bidding Also when a combination of factors in the model for our SWOT we have option 1: S1, S2, S3, S4 O1, O2 (make use of advantage and grasp business opportunities) and option 2: S 4, S5,O2, O3, (based on prestige and relation to exploit and expand market and look for customers), besides factors (S.T) option 1: S1, S4, S6, T1 show that the unit must promote competitive advantage to promote the task of looking for job, especially make use of advantage to expand bidding task; then within this scope we want to recommend to construct strategy by 2020: Bidding strategy - Combine strengths and opportunities (S.O) we know that, the company has great potential in human resources, based on the chart of human resoure, the level of human resources staff force of skilled engineers is very large, experienced engineers, senior management, in addition to Industry development trend of traffic generated for the company shifted the flow of labor in the long run so that the company should have a plan to develop quality human resources Combine (S.O) we have option 3: S2, S3, O5 develop human resource based on available human resource; the core capacity of the company is to own a skilled managing cadres and workers with high quantity This personnel has directly participated into implementing many big projects then they have many experiences in construction sector With such strength the company will have big opportunities in perceiving and exploiting new technology in construction to bring difference and effect in production; human resource is the valuable resource for long term development then comprehensive human resource development means the company has limited weaknesses in the future Then within this scope we recommend strategy construction by 2020: Strategy of human resource development - With regard to basic construction sector, especially traffic sector then a project that has value of hundreds billion dong is the natural thing such as Sua Sot - 48 - Building Business strategies for Engineering construction No.419 joint stock company Bridge of 70 billion dong, Ro Bridge – Nam Dan of 120 billion, Gie Bridge highway –Ninh Binh of 145 billion dong … The fact that investors arrange capital and pay capital is also slow especially for the coming time due to national economic situation such as inflate rate, increased price, reduced ODA from England and japan … then demand of capital for timely implementation is very difficult; to avoid the situation of delayed implementation due to lack of capital then the company must have right policy to adjust such above situation In the current time, Company's capital always supported by credit, The banks that are providing capital for our company are: BIDV, Vietcombank, if the difficult in capital trend increasingly so the search extended from the capital is very important Based on the company's reputation, good relationships with partners, especially the banks and investors the company will set out more specific content to overcome the lack of production capital Based on the combination among (W.O) W1, W3, W4, O1 we have option 2: exploit all capital to adjust the lack of capital; then to have stable and long term development plan we recommend the following strategy: Capital mobilization Formed strategy:  Bidding strategy  Human resource development strategy  Capital mobilization - 49 - Building Business strategies for Engineering construction No.419 joint stock company CHAPTER III SOLUTIONS TO IMPLEMENT BUSINESS STRATEGY OF ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY I THE CONTENT OF SELECTED BUSINESS STRATEGY OF ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY Bidding strategy: Bidding and winning bidding to occupy contract are the indispensable factors of no.419 traffic project construction joint stock Company as well as other construction units Previously, EC NO.419 JSCO was often subcontractor as well as joint venture contractor due to lack of capacity however recently the company has many innovation; project quality is increased, progress is ensured, personnel has high qualification….then the company has been the main contractor with many valuable contracts The trend of globalization and diversification of enterprise types has created chances, equal playground for all construction contractors including domestic, foreign contractors, state-owned enterprise, Joint Stock Company, ltd.company… Therefore, to occupy construction market and get many contracts then the company must focus on bidding strategy as follows: 1.1 Advantage and price-based bidding strategy The company should select this strategy because currently bidding is publicized, - 50 - Building Business strategies for Engineering construction No.419 joint stock company apart from technical factors and capacity, finance, human resources, machinery and equipment then price is the basis to win tender 1.2 Technology and technique-based bidding strategy In the period of competition among contractors then technological and technical factors are very important to win tender; if we mention executive units then we must mention technology of SuperT, Day Vang bridge, Cap Treo bridge… then investor will realize is as a good unit to construct bridge, have experience in construction The company has advantage of constructing traffic projects, bridge, drainage then this will be a rather big advantage for the company to bidding better 1.3 Financial capacity-based bidding strategy Via analyzing financial norms, in recent time the company has rather suitable financial mechanism, debt safety, using capital as leverage then in the coming time the company should promote it stronger 1.4 Non-economic advantage based bidding Such strategy is mainly applied in case of direct contracting for a certain project Concrete advantages are: + Relations of the company with project owner in long term cooperation + Trust in project quality, construction progress, labor safety Human resource development strategy: Business strategy is made and implemented by cadres of the company We can say that strategy and effect depend on personnel of the company Then in defining business strategy personnel strategy must be penetrated through implementation process Constructing human resource development strategy is the foundation for the company to: + Create activeness in trading, adapt with the change of market, avoid risks in trading and grasp useful business opportunities + Perceive modern production technology provided by foreign provider; it is - 51 - Building Business strategies for Engineering construction No.419 joint stock company expected that in the future the company will associate with foreign investors in construction sector especially when Viet Nam joins AFTA + Raise prestige of the company with partners; when qualification of the cadres is raised, the task of quality management and monitoring will be done more effectively Current situation shows that labor of the company is lacked that has weak qualification and knowledge then cannot meet requirements of the company in variable business environment; in short as well as long term personnel of the company must meet the following requirements: - Clear viewpoints and attitude with the profit of the company; good discipline - Capacity and professional qualification can meet requirements of market economy to fulfill all duty and target of the company - Morality in business, management and relation with the whole labors in the company Capital mobilization strategy: Capital of the unit is shown by cash of the whole fixed asset and mobile asset of the company; capital of the company is formed from stock capital and mobilized capital; mobilized resource is mainly from payment capital, deposit capital, credit capital and other mobilization With regard to construction sector then loan occupies high density compared to charter capital of the company; to implement many projects, meet demand of production then the company must build up a clearer and more stable plan to mobilize capital Compared to units of the same sector, the company has limited capital II SOLUTIONS TO IMPLEMENT BUSINESS STRATEGY IN ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY Solution for bidding strategy: Currently the bidding is through two main forms: the wide bid and appointed bidder Pursuant to Decree 85/2009/ND-CP dated 15/10/2009 Procurement - 52 - Building Business strategies for Engineering construction No.419 joint stock company Regulations are not required in any proportion, base on the article 33 of the Decree specifies that the package is valued at less than billion VND the contractor will be appointed if they meet the conditions of the Decree, in addition to a number of works have special properties, special forms may be requested appointment as quality, time So, before the company requested that should make specific strategies for the bidding To well implement bidding strategy in business strategy of the unit, the company must have the following steps: 1.1 Solutions for price-based bidding strategy: - Arrange personnel, machine to be suitable with projects, avoid cost in transporting and transferring - Make use of depreciated equipments to reduce depreciated cost of fixed asset - Active to offer price to many material providers - Use simple labors of the society - Joint venture, associate with domestic and foreign partners with advantage of equipments or database - Construct optimal executive method to reduce cost 1.2 Technology and technique based bidding strategy: - Continue training young and qualified engineer - Invest in modern executive equipments 1.3 Financial capacity based bidding strategy - Use deposit capital of each project to ensure such capital not to be free and ineffectively used (with regard to traffic projects, deposit contract from – 20% contract value) - Capital mobilization policy within the company, from joint venture and associated partners with strong financial capacity and capacity to penetrate into market, the policy to use banking loan 1.4 Non-economic advantage based bidding - Create trusted relations with management agencies, project investors - 53 - Building Business strategies for Engineering construction No.419 joint stock company - Join in social activities such as supporting locality to construct some small projects, charity activities Solutions for human resource development strategy: - Construct plan for human development by the year 2020; such plan must be connected with comprehensive company development strategy - Diversify forms and methods of training: new training, re-training, selftraining, new recruitment; attach professional training with political training and foreign language - Set up encouraging mechanism in term of material and spirit for cadres to raise capacity, qualification, economic and technical knowledge via short term courses - Recruit experienced cadres and employees with knowledge in constructing strategy - Organize and arrange personnel in suitable way make use of capacity of each employee, specialized tasks - Annually the company must have plan and cost for raising modern management task for managing cadres - Organize to use personnel according to defined strategic options to exploit intelligence and effort of workers, officers to use labor factor effectively - Create economic motivation such as suitable labor payment, clear salary and bonus regulation - Create spiritual motivation such as appreciate self-respecting, morality, construct healthy atmosphere to increase production activities Solutions for capital mobilization: Determined from 2011 until 2013 was a challenging period for the transport sector, Decree 11/ND-CP born with solutions to curb inflation has cut the tempo and stretching some of the traffic, capital is limited and involves the acceptance of payment of capital of the Company faced many difficulties, the company's work is delayed tempoly as: Extending 1A Project, Linh Cam bridge Project, Ha Tinh - 54 - Building Business strategies for Engineering construction No.419 joint stock company Widening 8A Project Implementation of Decree No 48/2010/ND-CP dated 05/5/2010 of the Government on contracts in the construction field, in Section and Section of Article 17 of Decree clearly advance the contract up after signing a minimum contract: the contract price is 10% to 50 billion package over 15% of the contract price for the package of 10 billion to 50 billion, 20% of the contract price for the package under 10 billion bid And a maximum of 50% in special cases, they must be allowed by investors With advantages such as contractors have over 40 years of operational experience and prestige available to investors, the PMU, the increased rate of advance of 50% to a maximum contract value could be , This will be the main sources for the construction period of high inflation economy Special cases need to bank loans, reputable companies utilize available to banks as long as customer relationships in work, in the course of MBA with the directors, chief accountant of banks to negotiate the lowest interest rate Therefore to overcome the difficulties which arise from the strength in the future on the Company: - Check, take over and payment for projects with clear capital - Implement the task of contract deposit after signing executive contracts - Promote the task of debt withdrawal - Apart from two traditional banks that the company has credit relation (BIDV, Vietcombank) then expand to approach capital supply with other banks: VIBank, Eximbank - Mobilize loans by loan contract with cadres inside and outside the company with higher interest rate than deposit interest and lower interest rate than banking interest - Register route with corporation on issuing stock to increase charter capital, compared to units within the corporation then density of charter capital of the company is low - Promote the task of posting stocks of the company on HASTC to be favorable - 55 - Building Business strategies for Engineering construction No.419 joint stock company in mobilizing capital for long time III IMPLEMENTATION CONDITIONS AND SOME RECOMMENDATIONS Implementation conditions To exist, adapt and develop in market economy then definers always improve the task of constructing business strategy to create firm position for their own companies; improvement requires the company to reach two following main conditions: 1.1 Conditions of validity and effect of business strategy Business strategy is formed from scientific basis which is comprehensively organized based on the coordination among divisions and promoting all resources of the company then such strategic product must be valid to bring high effect in business and production activities of the company Validity of business strategy requires implementation or organization of business activities according to given strategy to increase competitiveness of the company and position of the company The effect of business strategy requires the process to construct business strategy to create a high quality basis but not at all cost because with a high construction cost it will increase management cost leading to the increase product price which is contrary to the expectation from constructing business strategy Then the effect requires the task to construct business strategy must create a high quality strategy with a suitable cost and the implementation of such strategy must bring effect for business activities of the company Business effect will raise capacity of the company to ensure operational orientation of business strategy for all activities of the company 1.2 Condition of human factor Construction organization and strategy implementation are not only done by strategy definers but also need to have close coordination of all divisions, members of the company to promote initiatives of all individuals and collective solidarity - 56 - Building Business strategies for Engineering construction No.419 joint stock company Therefore, business strategy of the company and strategic targets must be widely known by all people in organization to implement duty and adjust behaviors of the division according to given orientation This will make coordination among activities natural to ensure good condition for implementing strategy Then there must be close coordination of all divisions in the company to ensure comprehensiveness and suitability in strategy implementation Route of implementation The route of implementation is shown by following chart - 57 - Building Business strategies for Engineering construction No.419 joint stock company Route of implementation TABLE 3.1: CRITICAL PATH MODEL OF STRATEGIC IMPLEMENTION ROADMAP OF ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY BY 2020 No Contents of strategy Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Results - Fully capable of bidding competition by cost savings, improved productivity Bidding - Technical capacity and human resources to strategy ensure high bid wins - Financial health, creating a good relationship Human with investors - Proportion of University staff, graduate resource education: 30%, intermediate level: 24%, high- development tech workers: 20%, 26% unskilled workers strategy - Equitable work environment, advancement - From 2012-2014 to expand the search for capital from other banks Capital - 2014-2017 : Additional capital success mobilization - Listed securities on the stock market strategy - 2017-1019 consolidate the management and efficient use of capital - 58 - Building Business strategies for Engineering construction No.419 joint stock company Our company positions by 2020: Table 3.2: Company positions by 2020 % increase Content Year 2011 Output 200 7% > 600 Revenue 180 7% > 500 Profit 7% > 12,8 Average labor 5.200.000 7% 13.000.000 million vnd income million vnd prediction Results by 2020 /per/mth /per/mth Fix assets 75 > 120 Charter capital 20 > 35 Labour level Proportion of University staff, graduate education: 30%, intermediate level: 24%, high-tech workers: 20%, 26% unskilled workers With the goal of sustainable development, quality and efficiency of the strategies that companies put forward, we expect that by 2020 the company basically achieve the targets set, every year winning the works with great value, healthy financial capacity, skilled employees, the acceptance of payments and fund raising is always guaranteed About the position, we believe that the EC N0.419JSCO will be a unit leading members of the Civil engineering constrction Corporation No.4 (Cienco4) in Nghe An, and is a strong company with a range of system construction companies Transport – Ministry of Transport Some recommendations * Business strategy construction and definition for enterprise development in EC NO.419 JSCO is still new which is not paid much attention due to not having accurate knowledge of strategy and staffs to implement Then to define and well - 59 - Building Business strategies for Engineering construction No.419 joint stock company implement business strategy in the company then leading board will be the beginner for implementing comprehensive strategic management Director board must discuss and show the determination to operate activities of the company effectively Long term targets in business strategy must be constructed and disseminated to each employee in the company to have the support and joint effort to reduce business cost * Currently, the task of business consultancy has been developed even in construction sector; many companies have established construction consultancy companies Via such consultancy companies customers will have conditions to learn to know contractors and choose carefully when signing construction contracts Therefore, the company should gradually construct relation with consultancy companies to make the image and prestige of the company come to customers - 60 - Building Business strategies for Engineering construction No.419 joint stock company CONCLUSION Business strategy is a new definition for our national enterprises Although we cannot deny important role of business strategy, in fact the process to construct business strategy of Vietnamese enterprises is very weak During the time to study and survey data collection, realistic situation at EC NO.419 JSCO, we have realized strengths and weaknesses of the company in production and business activities Based on combining with grasping opportunities, avoiding threats in business activities together with applying theories of business strategy, we are bold to recommend some problems of business strategy construction in EC NO.419 JSCO based on given purposes, and then such topic has solved some following problems: Systemize and develop knowledge on constructing business strategy of enterprises in market economy - Analyze, assess strengths and weaknesses of the company together with threats and opportunities from business environment to form some suitable strategic model for the company - Find out some solutions and recommendation, conditions to well implement business strategy of the company - However, this is a large topic of reality which is rather new when applying into administration activities of Vietnamese enterprises in general and EC NO.419 JSCO in particular Moreover, business strategy is an administration tool then norms and targets are difficult to quantify Therefore, although such solutions have high theory and reality basis to suggest some methods to solve then the company should focus on improving the task of business strategy construction without avoiding the concretizing some norms of cost and profit from each solutions; this is the problem to require projects to be verified and adjusted in reality to have accurate numbers with high feasibility and business effect With limited realistic knowledge, limited study time, drafting and presenting this writing cannot avoid mistakes; then we are looking forward to the comments from teachers, lecturers, council and ETC to make the topic better done! On behalf of group 6, thanks for your attention! - 61 - Building Business strategies for Engineering construction No.419 joint stock company REFERENCES Manual book of strategic administration –Griggs University Manual book of human resource administration – Griggs University Manual book of operational administration – Griggs University Business policy - Gary D.Simth, Danny R.Anold, Bobby G.Bizell – Dong Nai Publishing House 1996 Management and business strategy - Philppe Lauserre, Joseph Putti Definition of strategic administration - Fred David – Statistical Publishing House Business strategy of enterprise in market economy – Deputy Doctor Đào Hữu Huân Educational Publishing House Business administration – theory and reality in Viet Nam – Professor, deputy doctor Nguyễn Đình Phan 10 Jack W Calhoun (2004) Fundamentals of financial management, 10th Thomson 11 Lawrence R Jauch and William F Gluek(1989)Business Policy and Strategic Management 12 M.E Porter, Competitive Strategy (New York: Free, Press, 1980) 13 Porter,M.E (1981) The contribution of Industrial Organization to Strategic Management New York: Wiley 14 Richard Hall,(1992), The Strategic Analysis of Intangible Resources, page 135-144, John wiley and Sons 15 Anual Financial report 2008, 2009, 2010 of EC NO.419 JSCO 16 Websites, professional magazines - 62 - ... always supported by credit, The banks that are providing capital for our company are: BIDV, Vietcombank, if the difficult in capital trend increasingly so the search extended from the capital is