Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (212)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT THE BUSINESS STRATEGY DEVELOPMENT OF SUDICO AN KHANH COMPANY IN THE PERIOD OF 2011-2015 Class: GaMBA01.X0110 Group: 12 Vu Viet Hoan Dang Hoang Luong Ngo Trung Quan Nguyen Hong Quan HANOI 2011 LIST OF TABLES CONTENT Page Diagram 1.1: Strategy management process 11 Diagram 1.2: Diagram of the strategic planning process 14 Diagram 2.1: Organizational structure of SUDICO An Khanh 27 Table 1.1: SWOT Matrix 22 Table1.2: QSPM Matrix 24 Table 2.1: Some financial targets of SUDICO An Khanh in the first six months of 2011 29 Table 2.2: CPM Matrix of SUDICO An Khanh and two competitors 35 Table 2.3: EFE Matrix 41 Table 2.4: Statistics of SUDICO An Khanh personnel 43 Table 2.5: IFE Matrix 47 Table 3.1: Some targets of SUDICO An Khanh 52 Table 3.2: SWOT Matrix 53 Table 3.3: I.E Matrix 55 Table 3.4: Expected number of management staff in the period of 2011 56 -2015: Table 3.5: Expected turn of trained people: 57 Table 3.6: Allocation of support costs, annual sales promotion 59 Table 3.7: Roadmap for implementing the strategy of An Khanh SUDICO 61 Chart 2.1: Population density of Hanoi and Ho Chi Minh 31 TABLE OF CONTENT CONTENT Trang INTRODUCTION The necessity and importance of research The purpose of research and possibility of application Research methodology Structure of theme CHAPTER 1: GENERAL THEORY OF BUSINESS STRATEGY 1.1 The concept and features of business strategies in the enterprise 8 1.1.1 The concept of business strategy 1.1.2 Characteristics of business strategy 1.2 Business strategy management 1.2.1 Concept of strategic management 1.2.2 The necessity of strategic management in the enterprise 10 1.2.3 Strategic management process 10 1.3 Strategic planning 13 1.3.1 Concept of strategic planning 13 1.3.2 Strategic planning process 13 CHAPTER 2: STRATEGIC FACTORS ANALYSIS OF SUDICO AN 26 KHANH COMPANY 2.1 The general introduction on SUDICO An Khanh 26 2.2 Organizational model 26 2.3 The situation of production and business activities of SUDICO 28 An Khanh in five years from 2005 to 2010 2.3.1 In recent five years (2005 – 2010) 28 2.3.2 In the first six months of 2011 28 2.4 Analysis of business environment and internal force factors of 29 SUDICO AN KHANH 29 2.4.1 Analysis of macro environment 2.4.2 Analysis of sector environment 33 2.4.3 Analyzing results of external environment evaluation 40 2.4.4 Internal force analysis of SUDICO AN KHANH 42 INTRODUCTION The necessity and importance of research Our country is in the renovation period with significant economic and social development The process of urbanization is taking place strongly in all localities across the country together with the appearance and growth of a wide range of businesses including businesses of the construction sector It can be said that the fast process of urbanization is a great opportunity for businesses in the fields of construction, real estate, manufacturing and materials supply and other services related to the construction sector However, like other ones of other sectors, enterprises of construction and real estate have to face many challenges that is the shortage of capital, volatility of the market, strict demanding on technology innovation and market management skills that are increasingly competed SUDICO An Khanh is a new business in the fields of construction and real estate investment, but it has been quickly successful in the market with various products such as Nam An Khanh new urban are, expanded Nam an Khanh New Urban, new urban area in the center of Thanh Hoa province ect… , However in order to be able to survive and grow, it is necessary to have a proper business strategy in the medium and long terms That is why the group 12 has chosen the theme: "The business strategy building of SUDICO An Khanh in the period of 2011-2015" The purpose of research and possibility of application: The purpose of this research is to build up a rationale business strategy for companies SUDICO An Khanh in the period of 2011-2015 based on research on factual activities and orientation of SUDICO An Khanh company, trends of the construction and real estate market in the coming years Results of the research may be useful as references for the SUDICO Anh Khanh company in the formulation of business strategies in the future, and may be references for the student of business administration Research Methodology This thesis uses the methodology of dialectical materialism with historic and logic combinations, methods of analysis and synthesis, statistical methods, survey methods, comparison and prediction methods Structure of theme It is divided into three chapters: - Chapter 1: General theory of business strategy - Chapter 2: Analysis of the strategic elements of SUDICO An Khanh company - Chapter 3: Business strategy Proposals for SUDICO An Khanh in the period of 2011- 2015 and the solutions CHAPTER 1: GENERAL THEORY OF BUSINESS STRATEGY 1.1 The concept and features of business strategies in the enterprise 1.1.1 The concept of business strategy Business strategy is concerned by many economists in researching and giving several definitions of the term "business strategy" Each definition, more or less, is different depending on the perspective of each author Author Glueci said that "Strategy is a consistent, comprehensive and integrated plan designed to ensure that the objectives of the business will be done.” As for strategist Chandler "Strategy is the identification of basic long-term goals, purposes of the business, and applying a sequence of actions as well as the allocation of resources needed to achieve these objectives" According to the conventional approach, the strategy is a system of long-term goals, policies and measures mainly on production and business organizations, finance and human resources that aims to lead businesses by a desired direction From the different notions of strategy, a general concept of strategy is supported by many authors are: "Strategy is a complex series of actions to mobilize resources which an organization can have in order to achieve a certain purpose" 1.1.2 Characteristics of the business strategy Although there are many concepts and different approaches to strategy, the concept of basic characteristics of business strategy is relatively agreed Those are: - Business strategy is oriented in a long time It sets out the objectives, business direction for each specific product lines and defines the basic tasks, solutions and achieves goals step by step Business strategy is flexible, built over the long term (normally, five years or ten years), and is a repeatedly continuous process from the elaboration to the stage of implementation, monitoring and evaluation - All important decisions of strategic in the process of strategy development, implementation, evaluation and control are focused on the group of senior managers to 1.2 Business Strategy Management ensure the accuracy of long-term decisions, the confidential information in competition - Business strategy ensures maximum mobilization of the resources of the business optimally combined with the exploitation and the use of resources at the present and in the future in order to promote advantage and seize the opportunity for competitive advantage in the best way - Business strategy is always of offensive to win in the market It could be said that the business strategy helps businesses orientate way towards the future by their own efforts; helps businesses to identify the basic objectives needed to achieve in each period, and needed to be thorough at all levels, all activities areas of businesses or institutions in order to exploit and utilize resources, promote the advantages and seize the opportunities for competitive advantage obtainment 1.2.1 The concept of strategic management The theory of "Strategic Management" was given later and not so popular as the theories of "strategy" And there are many different points of view on strategic management But as generalized we can understand that: "Strategic Management is a set of management decisions and actions determining the long-term performance of the company.” Strategic management includes the continual actions: environment review (both internal and external); strategy development; strategy implementation and strategy assessment and control Therefore, strategic management is taken into account in monitoring and evaluating the external opportunities and threats by the situation of internal strengths and weaknesses Strategic management analyzes effecting factors of the external environment and internal capabilities of the company Since determines, gives solutions to the strengths and weaknesses of the company to take advantage of external opportunities, and minimize the risks caused by internal problems 1.2.2 The necessity of strategic management in business The study of T.J Andersen has shown that organizations applying strategic management will achieve better performance than organizations that not The compatibility among the environment of the organization with strategy, structure and its processes will expose a positive effect on institutional performance Strategic Management helps businesses show clear goals and ways to achieve Internal those goals Strategic Management helps businesses know where they are, where they Environment input were and where they will be in the future inside Strategic Implications Strategic management process Strategic Mission The business environment is constantly changing, competition is increasingly External fierce that requires enterprises to adapt flexibly themselves to survive and grow Environme nt Strategic management requires enterprises to analyze and forecast the business environment in the future Whereby enterprises can make the smart business decision sto take advantage of opportunities, and to minimize the impact of risk Develop strategies Enforcement strategy Strategic Action Strategic management helps enterprises implement strategies in close Dynamic Groupcoordination Business with the departments for the optimal use Corporate of resources toThe achieve the level competit level management structure planned objectives strategy ion strategy and control 1.2.3 Strategic management process Strategic Results Starting a Internatio Cooper Strategic Merger nal ation In the and process of strategic management, executivesLeadership make a seriesbusiness of operations and Strateg Restructu Strategy described in the diagram below: y innovation ring Competitive strategy with above-average (Source: Slides of lecture on Strategic Management – Griggs) Feedback profit rates Diagram 1.1: Strategic Management Process 10 2.6.1.4 Prestige to customers Product quality and service are good Projects are implemented in accordance with the schedule and proposed quality creating prestige to customers The sales team is highly qualified 2.6.1.5 Technology Currently, SUDICO An Khanh uses a variety of new construction methods in construction such as the method of top-down construction to reduce construction time, the construction methods of basement, diaphragm wall, foundation, concrete technology, anti-corrosion technology of steel structures, quick construction technology without reinforcing phase reducing construction time and increasing load capacity 2.6.2 Some comments on the current strategy of SUDICO An Khanh 2.6.2.1 The obtained results With its strategy, SUDICO An Khanh has achieved some results: - Total value of management and investment in the period of 2006-2010 is estimated at 1,528.966 billion dong - Being assigned to several projects such as Nam An Khanh New Urban project, expanded Nam An Khanh project, Chau Giang new urban area project – GREENPEARL of Hanam province, the new urban area project in the center of Thanh Hoa city Co-invest with SUDICO implementing CT1 project that belongs to Van La - Van Khe new urban area, Hanoi city and propose to allocate CT1 project of Nam An Khanh new urban area for the secondary investors - Regarding construction: SUDICO An Khanh applies new technology in construction, project investment time is shortened and accelerates the cycle of investment capital 48 2.6.2.2 Shortcomings The company does not have long-term plans for developing human resources in the future There are no good treatment policy for officers and employees such as: house purchasing, sending them for higher education therefore they not have close attachment with the company SUDICO An Khanh has not had its own website to give information to customers, partners about projects as well as development orientation, operational motto, commitment to customers, etc…that causes not less impact on its brand and business The company is much subject to the parent company in term of policies of capital management, markeet and product distribution, etc… 49 CHAPTER 3: STRATEGIC BUSINESS PROPOSAL FOR AN KHANH SUDICO IN THE PERIOD OF 2011-2015 AND IMPLEMENTATION MEASURES 3.1 The basis for strategy developing 3.1.1 Mission Develop SUDICO An Khanh into a strong company in the field of real estate, industrial zone, etc Construct and develop the company into a public company and a strong comprehensive unit, ensuring annual profit and sustainable development Besides the construction sector and real estate which are the main areas of development, the company will develop new business areas with high economic efficiency and financial investment, production and construction materials business 3.1.2 Vision Focus on developing key sectors of the company in five years (2011-2015) those are business and construction investment in housing and the urban technical infrastructure (accounting for 95%) Besides research, development investment for technical infrastructure of industrial zone serving for product diversification towards sustainability Business on other services: step by step search for new forms of business which are efficient, cooperate with partnerships partners to develop new sectors: business on education services, health, tourism, etc 3.1.3 Strategic Objectives The company strives in the period of 2011-2015 to achieve the average growth rate of 20% 50 Table 3.1 Some targets of SUDICO An Khánh Targets Plan Expected value of investment 4.014 billion dong Total value of production and 5.360 billion dong business Revenue 3.577 billion dong Profit 892 billion dong Payments for the State 29 billion dong (Source: SUDICO An Khanh) 3.1.4 The social needs for services of SUDICO An Khanh 3.1.4.1 The field of real estate investment and business Together with economic development, urbanization process is strongly taken place, population density is high, population growth in big cities is high that makes demand for construction as well as the demand for housing, offices, premises for rent increases also On the other hand, joining into WTO also creates opportunities for enterprises to innovate technology, increase funding raising as well as foreign investment It can be said the construction sector and real estate investment is still a promising area for SUDICO An Khanh in particular and other enterprises of the same sector in general The apartment buildings having small and medium area that are at affordability of most middle-class buyers are and will be the trend of consumers in the future 3.1.4.2 Financial investment sectors In addition to the field of construction and real estate investment, SUDICO An Khanh is implementing activities in the field of financial investment 51 3.2 Business strategy proposals and implementation solutions for SUDICO AN KHANH in the period from 2011 to 2015 3.1.4.3 The construction products and building materials manufacturing business To achieve product quality (longevity, aesthetics, etc ), it is required that the materials are of quality SUDICO An Khanh always research and innovates models and types of materials in construction therefore the company's products quality meet the majority of customer requirements 3.2.1 Strategic plans Analysis of SWOT matrix to SUDICO An Khanh: Table 3.2: SWOT Matrix SWOT Matrix Opportunities (O) Political economic Threats (T) stability, Legal systems are not development, synchronized state policies encourage business investment in real estate, legal system of construction and real estate is gradually being Credit crunch makes it difficult for the mobilization of investment capital Competitive pressure is improved Increased demand for housing Development opportunities for growing, especially with the competitive pressure of foreign enterprises real Financial markets and estate business to attract monetary instability foreign investment 52 Increasingly scarce land Development of Funds information technology use of new technology in construction Strategies SO Strengths (S) Strong financial capacity Good quality of works High-value projects Experienced qualified and resources Having a strong brand and have good relations with local suppliers authorities, and Expanding Strategies ST the area, - Using the relationships and reputation of An business development, Khanh SUDICO to create resources for accelerate, improve the efficiency of investment sustainable growth projects - Expansion of investment - Maintaining a sound financial background and project acquisition, Mobilization of external competitor takeover funding for investment and development - Developing all resources other to maximize product value, partners business efficiency Weaknesses (W) Strategies W0 Strategies WT Chưa có sách xây - Development of human - Develop and create a strong and stable dựng phát triển nguồn resources, focusing on workforce as the key nhân lực dài hạn training to improve factor to overcome the crisis and the challenges professionalism, science Hoạt động SXKD bị from the external phụ thuộc vào chế quản and technology, creating a environment lý phần vốn Cổ đông healthy environment lớn công ty SUDICO Hoạt động marketing chưa trọng working - Improve the quality of marketing to reach potential customers, expand market share 53 3.2.2 Analysis of I.E Matrix to SUDICO An Khanh Based on the environmental factors as well as internal resources of the enterprise, we analyze the I.E matrix to SUDICO An Khanh as follows: Table 3.3: I.E Matrix Good Scores EFE Growth I Medium And II 3,14 Bad Development high III Hold and Maintain IV V VI Harvest Or Reorientation VII VIII Medium Low IX 3,15 Scores IFE According to the IE Matrix, SUDICO have intersection in cell number I Thus SUDICO An Khanh should apply a growth strategy 3.2.3 Business strategy proposals and implementing solutions to SUDICO An Khanh in the period from 2011 to 2015 Combining both the SWOT matrix and IE matrix, business strategy selection group for SUDICO An Khanh is SO strategy group: make use of strengths to exploit opportunities to achieve planned goals in the period of 2011 - 2015: - Maximize the advantages of reputation, brand SUDICO, and seize opportunities, promotion of investment projects to expand new areas, business development, creating resources for sustainable growth 54 3.3 The function strategies - Search opportunities, leveraging the financial strength of SUDICO to expand cooperation and investment, project acquisition to increase, add business land, expand market share of SUDICO An Khanh in the real estate market - To promote the collective wisdom, creativity of staff personnel, improve professionalism, accelerate the application of new technologies into production and innovate customer approach to maximize value of products, maximize business efficiency 3.3.1 Human resource development strategy Perfect models of advanced management, establish active, capable and highly qualified management staff, technical staff as the trend of integration to ensure the comprehensive development and enhance reputation of company in the market Table 3.4 Expected number of staff in the period of 2011 -2015: Qualification Number Doctor Master 35 University 80 College 30 Total 150 (Source: Proposals of Group 12) Establishing industrial working style for all employees, ensuring the proper quality control and standards Building better treatment regimes, facilitate training and retraining workers Arranging working forces to fit work by capacity , have measures to strictly handle the work not skilled force which does not match the job requirements 55 Human resource training and development: Table 3.5 Expected turns of trained people Subjective Unit 2011-2015 Staff, workers needed to be turn 500 trained (Source: Proposal of group 12) Skills and qualifications needed to be trained: - Continue training for employees professional skills, techniques and skills of senior management - Skills training for skilled technical workers The training methods that will be implemented: - Long-term training: Send labors to attend training courses implemented by training organizations, organize training courses of high qualification and skill Use a part of training fees for excellent students of universities to attract them after their graduation to work for SUDICO An Khanh - Retraining (Foster and improve professional expertise and skills) Using workers of high qualification and technical skill, training workers at the working places; hire experts and technicians to guild and train workers of the company; appoint labors to train at multinational companies of high management systems, professional qualifications and technical skills - Training new (update knowledge, business, new job) 3.3.2 Chiến lược Marketing Closely apply policies and legislation of the state especially in the areas of economy, finance, investment, real estate, planning 56 in order to make specific marketing policies, strategies 3.3.2.1 Product strategy: To further promote the diversification of traditional products and services including: construction implementation, real estate business investment and construction technology Towards the products such as adjacent houses, villas and tall apartment buildings by the model design Create additional facilities associated with the providing product There is policy of promotion, more services offered to customers who buy apartment, villa, adjacent house 3.3.2.2 Pricing strategy: Products are mainly invested in high market segment, product price is high therefore should reduce the price to be beneficial in the production, business and competition with competitors: - Apply new technology in construction and management in order to shorten construction time, improve the efficiency of capital use - Establish Center for Real Estate transactions in all the localities where there are projects of the company to reduce intermediaries, product distribution - Strengthening supervision - Set a lower initial price than that of market and prices are pushed up by the short-term investors that leads to higher profits 3.3.2.3 Distribution strategy Combine multiple distribution channels: 57 - The joint venture companies - The short-term investors - The real estate trading floor Train sales team who are professional and able to understand the market and able to orientate for customers 3.3.2.4 Promotion strategy There are regularly charitable activities and donations Take advantage of political relations which are available to create and implement large projects Strengthen relations with local authorities such as Hanoi, Hung Yen, Vinh Phuc, Hai Duong, Quang Ninh to search for new projects Join the brand prizes, advertise projects on the mass media (Internet, radio, television, newspapers, etc ) Marketing expenses and sales promotion are allocated about 5% of annual revenues by the company to implement the marketing policies, sales support, promotion, program making and events to support sales Sale expenses are allocated as follows: Table 3.6: Allocation of support costs, annual sales promotion Advertising 65% Fair, exhibition 10% 58 Sponsor, event 25% Total 100% 3.3.3 Technology innovation strategy Renew and improve the quality of design Strictly implement the provisions of technical management, good organization, close supervision of the management of construction quality Well manage and organize the total goods, implement construction of works to improve the quality, progress and efficiency Gradually use high technology into production through the forms of cooperation such as joint venture projects, associated with the units whose strength of modern and advanced construction machinery and equipment originating from groups of nations of highly developed science and technology level Then execute the transfer of technology and gradually master the technology to operate fluently Use software improving the quality of management to ensure the highest efficiency in the administration, management, fastest update related information channels, save time Application of E-commerce on the production and business processes is an important weapon which helps enterprise enhance business capability in the market 3.4 Strategic implementing roadmap On the basis of needs and existing capabilities of SUDICO An Khanh, group 12 proposes strategic implementing roadmap of the SUDICO in the period of 20112015, as follows: 59 Table 3.7: Roadmap for implementing the strategy of An Khanh SUDICO No Do Content research 2011 2012 on market Expand area Expand cooperation, investment, project acquisition, competitor takeover Complete marketing activities, sales 60 2013 2014 2015 CONCLUSION SUDICO An Khanh is a newly established company in the field of construction and real estate As a subsidiary of a reputable construction and real estate group - SUDICO Da River, the company has inherited many advantages from the parent company such as capital, technology, managerial qualification and experience, relation of customers - partners Thanks to this legacy, together with the ongoing efforts of the leaders team and employees, SUDICO An Khanh has achieved many successes in its activity: successfully construct Nam An Khanh new urban area and expanded Nam An Khanh of Hoai Duc district, Hanoi city, has many valuable projects which have not been implemented yet such as the project of new urban in the center of Thanh Hoa city, Chau Giang new Urban Area - Green Pearl in Ha Nam province These are the successes that very few new construction companies can achieve, however SUDICO An Khanh can Besides the successes, advantages, like other construction and real estate companies SUDICO An Khanh also has to face various challenges due to changes of macroeconomic environment and due to due to internal difficulties of enterprise Within the theme " The business strategy development of the SUDICO Da River in the period of 2011 - 2015," the group of authors have tried to analyze deeply the environmental as well as internal factors of the enterprise, find out difficulties, opportunities, strengths and weaknesses of the company Based on a comprehensive evaluation, the authors make the business strategy of SUDICO An Khanh company of the same comprehensive system of measures to carry out the proposed strategy With limitations on time of study and understanding of the author group, shortcomings of this theme is still inevitable, we look forward to receiving the contribution of the assessment Board and our readers The Author Group 61 REFERENCES Vietnamese: http://www.bayvut.com.au Le The Gioi - Nguyen Thanh Liem - Tran Huu Hai (2007), Strategic Management, Statistical Publishing House, Hanoi Vu Trong Khai (editor), Lam Ngoc Diep (1996), Company Organization and Management, Statistics Publishing House, Hanoi Audited report of SUDICO An Khanh in 2006, 2007, 2008, 2009 Website of the Development and Investment Company for Da River Urban area and Industrial Zone: www.sudicosd.com.vn Website of the General Statistics Office http://www.gso.gov.vn Reports and business plans for the company within 05 years of 2011-2015 SUDICO AnKhanh English: Chandler, A (1962), Strategy and Structure Cambridge, Masacchusettes MIT Press Charles, and Garth Hill, Jones (1995), Strategic Management, Washington J Wheelen David Hunger & Thomas L (2001), Essentials of Strategic management M.E Porter (1980), Competitive Strategy, Free Press, New York 62 ... 25 meeting of shareholders CONTROL BOARD board QUẢN TRỊ DIRECTORS DEPUTY DIRECTOR ADMINISTRATIV E DEPARTMENT ACCOUNTING DEPARTMENT PROJECT BAN QUẢN MANAGEMENT LÝ DỰ ÁN HA NAM HÀ NAM DEPUTY DIRECTOR