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GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER BUSINESS ADMINITRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY OF TAN NAM CONSTRUCTION JOINT STOCK COMPANY UP TO 2020 Group No: - Gemba.v0110 Student’s name: Nguyen Van Hai Nguyen Van Phong Cao Dinh Hanh Duong Hung Cuong Glass: GaMBA0110_Group VINH, 2011 INTRODUCTION Rationale of the study Vietnam economy after 25 years (1986-2011) has made the economic renewal of the party and state, with the general economic model is to build a socialist-oriented market economy Our country got rid of economic-social crisis, created the necessary premises to move to a new development period- the period of promoting industrialization and modernization Especially after that Vietnam joins in WTO has put /make domestic businesses face many challenges in the business and production activities, the level of com petition is more fierce and drastic To help businesses survive and develop, they should have self-control in all aspects of production and business activities from investment, the use of capital and the organization of production, etc Besides, they have to make use of their strengths and advantages to take advantage of opportunities and options for their business right direction To achieve it, they have to build a business strategy If there is not a business strategy or their business strategy is not proper, their production and business activities will certainly go to failure Based on researching and collecting data on production and business activities of Tan Nam Construction joint stock Company and the knowledge trained in the period/time of taking part in MBA course International business administration of the associating program between Griggs university and training and employment under Hanoi National university, our group selected the topic “Buiding business strategy of Tan Nam construction joint stock company up to 2020” to help the company have a right production and business strategy, to make Tan Nam construction joint stock company become a strong/powerful enterprise in the construction industry Purpose of the study Glass: GaMBA0110_Group To research and systematize the theories of bulding and implemeting business strategies, to choose effective analyzing models for construction and performance of business strategies To apply theoretical basis system and models to analyze, evaluate internal and external environment in order to build a business strategy for Tan Nam construction joint stock company To propose solutions and recommendations in the implementation of business strategies to improve the business strategy the company chose Object and scope of the study Objective of the study is Tan Nam construction joint stock company with construction activities in the whole country, but mostly in Nghe An province Methodology The report largely uses quantitative method of analysis: study and analysis of the situation of Tan Nam construction joint stock company The methods of collecting data specially are listed such as interviewing experts, etc It also uses the data of financial reports, contractor capability reports, statistical reports, and information and data of the field, the secondary data of previous strategies, studies and reports of Tan Nam construction joint stock Company Structure of the study Including: - Introduction - Chapter 1: (General theoretical basis of building a business strategy.)Theoretical background to business strategy building - Chapter 2: Analysis of business environment and internal Tan Nam construction joint stock Company - Chapter 3: Options of business strategies of Tan Nam construction joint stock Company up to 2020 and implemented solutions - Conclusion - List of references and appendices Glass: GaMBA0110_Group CHAPTER I: THEORETICAL BACKGROUND TO BUSINESS STRATEGY BUILDING 1.1 Denifition and Role of a business strategy 1.1.1 Definition: Historically, the term of “strategy” is used in the military with the meaning of long-term plans, established on the basis of completely trusting/believing what the enemies can and cannot There are many definitions of strategy; each definition is more or less different depending on the author’s concept In 1962, Chandler defined “strategy” as “the identification of goals, long-term basic purposes of the enterprise and the application of a sequence of actions as well as the allocation of necessary resources to perform this objective” Chandler is one of the first people to initiate Strategic management Theory Until 1980s, when strategic management subject has become ripe, Quinn gave a more general definition: “Strategy is the pattern or plan integrating the key objectives, policies, and a sequence of actions into a closely united group.” After that, Johnson and Schole redefined strategy in the environmental conditions with a lot of rapid changes.” Strategy is the long-term direction and scope of an organization in order to gain/get competitive advantages for it through defining its resources in changing environment, to meet the market demands and satisfy the expectations of concerned parties.” It can be seen that all definitions of strategy appear the phrases denoting different aspects need to be included in it In the definition of Strategy with 5P, Mintzberg summarized all aspects of strategic management as follows:  Planning: A sequence of consistently planned actions/activities Glass: GaMBA0110_Group Pattern: The consistency of behavior overtime, maybe intended or not  intended  Position: Match between a organization and its environment,  Perspective: The way to aware the world  Ploy: The specific way to deceive competitors Not only including many different aspects, the definitions of strategy are different depending on the level The correct definition of strategy according to the level naturally depends on opinions It is essential to have at least levels of strategy need to be recognized: Company, business unit and business Nowadays, strategy is used popularly and is considered as the factor increasing the success possibility and reducing the failure possibility of enterprises In summary, although there are a lot of different definitions of strategy, in this study, this topic’s author thinks that “An orientated business strategy is all long-term goals, policies, and big solutions of production and business and finance, and the solution of human resource in order to make enterprise’s business develop to a higher state of quality.” 1.1.2 Roles of a business strategy to an enterprise A business strategy plays an important role for the survival and development of each enterprise A correct business strategy will create a good direction for enterprises; it can be considered as a guideline guiding for enterprises in the right direction The importance of a business strategy is shown in the following aspects: - It helps enterprises have a guideline for their activities in the future through analysis and forecast business environment - It helps enterprises grasp/get opportunities as well as forecast all risks for the development of their resources; it helps them exploit and use properly resources, promote their strength - It creates an orbit of activities for enterprises; help them associate with individuals with other benefits together towards a common goal, and developing business/enterprises Glass: GaMBA0110_Group - It is an effectively competitive tool of enterprises 1.1.3 Basic features of business strategy The strategy to define the basic targets of business direction must be figure out in each specific period and be fully aware in every management field of the organization The purpose of the strategy orientation is to assure the continuous and sustainable development in continuously flexible business environment The business strategy only sets out operation orientation in the long term and operation frame of the organization in the future It is only theoretical while actually, the business activities requires to combine both strategic target and economic target, to consider rationality and adjust to be suitable for the business environment and condition to assure business efficiency and overcome mistake caused by strategy orientation The stratrgy is built up on the competititve advantages of the organization to assure mobilizing resources and to take advantage and use of the resource Business strategies are shown in a long period of building the organization, working, assessing, examining and adjusting the strategies of the organization 1.2 Process to build up a business strategy 1.2.1 Assessment of external and internal environment of the company 1.2.1.1 Assessment of external environment of the company The analysis of external environment is to realize clearly opportunities and challenges threatening business activities of enterprises a Macro environment - Economic factors: The growth of the economy gives more new demands for the developments of economic fields; the rate of inflation affects interest rates, the proportion of investment interest rates; the rate of unemployment affects the recruitment and dismissal; exchange rates affect bank rates, financial policies, labor cost control and balance pf payments - The political factors: Glass: GaMBA0110_Group This group of factors is more important, including: The stability of the government, the rules of tax, fees, regulations on hiring and firing workers, the regulations of safety and environmental protection - The social factors: Living quality, manners and customs, regional culture, the rate of population growth - The natural factors: Natural resources, environmental pollution, lack of energy… - The technological factors: This factor has big and direct influence on the business strategy of enterprises Because in the age of rushing development of technology as today, the appearance and change of new technologies always create opportunities but also have other potential risks to the existence and development of an enterprise Therefore, it is essential for enterprises to have strategies of applying technology flexibly, avoiding being passive and lagging behind b Industry environment: Working environment includes factors in the industry and is the external factor to enterprises, determines levels and competition in that field There are basic factors (5 market forces) are: - Bargaining power of Customer - Bargaining power of Suppliers - Availability of Substitute products - Existing competitors - Potential competitors Enterprises have to analyze these factors to realize opportunities and risks that they face 1.2.1.2 Analysis of internal environment Analysis of internal environment situation of an enterprises is analyzing the internal factors (internal company) to realize strengths as well as weaknesses, and Glass: GaMBA0110_Group have solutions to promote strengths and overcome weaknesses The analysis focuses on the following issues: a Financial analysis: Analysis of financial status is the process of reviewing, testing, and comparing the current financial data with the past one, then, it can be made comments the efficiency of business and the potentialities as well as risks of enterprises in the future Through analysis of financial situation, administrators and interested individuals have an overall and comprehensive view of assets, debts, and capital sources, business activities of enterprises to make plans, business strategies, and financial protection solutions effectively b Aanalysis of human resources: - Human resources: including teams of senior administrators, teams of executive administrators and staff When analyzing human resources, it needs to be paid attention to: + The leadership + The staff’s skills, ethnics + The ability to adapt to the changes… c Analysis of facility and technology - Financial resources: Focusing on issues such as the state of allocating capital, the effectiveness of using capital, and financial indicators - Equipment technology resources: Including factories, system of warehouses, yards, roads, and transporting means, machines and equipments d Analysis of marketing: - This is a very important content in analyzing internal company; it allows enterprises to assess the ability to meet the market demands, focusing on issues: Categories of products, product quality, market share, price, customers; confidence e Analysis of enterprises’ competitiveness Glass: GaMBA0110_Group - Enterprises’ competitiveness is the capacity which enterprises can maintain their positions on the market stably and meaningfully The factors affect enterprises’ competitiveness - Working atmosphere within an enterprise - The profitability of investment capital - Labor productivity - Product’s price, the possibility to reduce price - Business experience in the marketplace - The flexibility and responsiveness of the leadership of enterprises - Quality of service products 1.2.2 Building Matrix of internal and external factor to select the strategy 1.2.2.1 General matrix of external factors From analysis of the factors, we can summarize general matrix of external factors Enterprises often have 10 external factors and analyze step by step and we give the basic factors (Calculated based on 4) - Step 1: Make a list of factors that play a decisive role for the success of enterprises - Step 2: Identify the importance from 0.0 (not important) to 1.0 (very important) for each factor Total classification level is 1.0 - Step 3: Classify from to for each factor to realize the way how the current strategies of an enterprise response to this factor, including is the best respond, above average, 2-average, 1-the least - Step 4: Multiply the two criteria of importance of each factor with the classification of the factors to determine the points of importance - Step 5: Add all points of importance of the factors to determine total point of importance of each enterprise The highest total score is and the lowest 1, and average 2.5 The higher points show that enterprises have a good respond to external factors 1.2.2.2 General matrix of internal factors Glass: GaMBA0110_Group Using matrix of internal factor evaluation to summarize analysis, assessments of strengths, and weaknesses of the factors governing inner activities of enterprises The process to develop a matrix of internal factors is similar to a matrix of external factors, except the 3rd step: we classify that 1- the biggest weakness, 2- the smallest weakness, 3-the smallest strength, 4-the biggest strength No matter how many factors in IFE matrix, the total important point can be classified from lowest to highest is 1.0 to 4.0 Total important point below 2.5 point shows that enterprises’ competitiveness is weak and above 2.5 point shows that enterprises’ competitiveness is strong 1.2.2.3 General matrix of internal and external factors IE Based on general matrix IE, we identify the center of the circle and determine the circle reflecting the scale, if the center is green light: a growth area, the yellow light is to maintain stably, and the red light is dangerous so withdrawing gradually Therefore, depending on the position of each enterprise, we choose strategies suitable for the matrix and this helps us to know the position of strategies of enterprises 1.2.2.4 Matrix of competitive image This kind of matrix defines the key rivals of the company It is the extended version of EFE matrix with the degree of importance of the elements, point of each element and the total point of degree of importance with the same meaning The matrix of competitive image is different from EFE matrix in: some EXternal factors with decisive importance are compared The total mark of assessment of the rivals will be compared for the company to select as sample 1.2.2.5 SWOT matrix Analysis of SWOT matrix is to analyze strengths and weaknesses, opportunities and challenges (Threats) From the analysis of external factors, we can synthesize opportunities and challenges, and the analysis of inner enterprise will help us realize weaknesses and strengths; the analysis of investment lists, and core competence, we have to point out the competitiveness, and advantages 10 Glass: GaMBA0110_Group 10 Quality management system (do not have ISO 6 4 16 12 16 3 6 3 3 3 3 3 3 12 12 12 12 9 6 3 2 2 3 9 3 9 process) External factors International economic integration increase competitive competence Changes of policies Increasing demand for building traffict and water Stable political condition work Quick development of technology and science Competition pressure from new rivals Integration increase bankrupcy posibilitiy of Increase of substitute products Increase of input price due to inflation 10 Natural condition Total attractive point 169 141 155 - AS is attractive point, TAS is total attractive point From the QSPM matrix, we can choose to priortize the SO strategy group, with highest TAS = 169 The next is financial improvement strategy of WO group with TAS = 155 3.2.2 Chosen business strategy 48 Glass: GaMBA0110_Group After synthesizing all analyzed and evaluated information above, author group recommend strategies which should be prioritized at Tan Nam Construction JSC until 2020: - WO strategy: With the pressure of competition, Tan Nam Construction JSC should overcome weaknesses, creating a system with modern building equipment, high qualified human resources Improving Marketing section,… creating a new stature for the company, enhancing branding of Tan Nam Company up to a new level - SO strategy Take advantage of being a company, the potential of financial situation, reputation and branding, the company should improve image in constructing transportation and irrigation works, especially in time that demanding for constructing infrastructure is becoming urgent and invested more and more currently 3.3 The strategic solutions 3.3.1 Marketing Solution - Regularly research and predict status of market, customers ‘need and behavior of direct or indirect opponents in regional and national market ( or hire services of professional service providers if necessary) Monthly intensive researching and predicting reports on every group of products or business fields of the company as well as its units should be distributed to all of its departments for reference and making decision in its operations - Company should set up a department which is responsible for updating and processing foreign affair information This is centre of receiving hot news from other parts or units of company 49 Glass: GaMBA0110_Group - Establish departments of supporting mobile trade promotion of the company which work directly with manufacturing companies These departments support businesses in terms of foreign affair relations, trade promotion so that they can focus on manufacturing - Deploy forms of mobile trade promotion: The company should prepare abundant product designs meeting taste of a number of adjacent markets in the region to display at fairs and exhibitions of public products - Deploy chain of showrooms in operating area of the company then expand into regional and nationwide markets - Diversify forms of distribution to meet the needs of different customers Beside the traditional forms of distribution such as retailing and wholesale at shopping centers, supermarket and convenience store, the company should soon deploy the form of online distribution through online distribution companies Also consider investing in sales system 3.3.2 Investment solutions - In order to meet the set-up strategic tasks, the company should have intensive investment in construction sector to increase quality and progress of the construction packages - Pay attention to mining at Dien Tho land mine in the near future to take initiative in material for manufacturing and business - Prioritize resources to construction sector, especially transport and irrigation works, industrial and civil use - Complete projects of expanding capacity of equipment to serve timely for construction work in order as planned and complete the signed construction contract 3.3.3 Technology Solutions - Step by step changing technology lines in a synchronous and automatic way to ensure high productivity, good quality, and overcome pollution in producing process with a target of sustainable development 50 Glass: GaMBA0110_Group - A strategy that companies should immediately apply is information technology in business management In order to achieve this strategy, the company should set up an Internet network; more importantly, it should open courses to instruct staff using Internet The effect that information technology gives to the company would be great - Well manage synchronous quality in all parts involved in the entire company; apply the system of international quality standard ISO in order to reach the leading position in terms of product quality in construction sector of the region and country 3.3.4 Human resource organizing solutions - Set up salary and bonus scheme for staff depending on skills and contribution of each staff to promote and take advantage of labor productivity, to ensure fairness for staffs and retain qualified personnel - Cooperate with universities to find new human resources, invest in higher education and commit a long term corporation Simultaneously, invite qualified scientific officers to cooperate in researching a number of areas which companies are concerned - Recruitment: For those who have real ability from other units, based on the real needs of the company to recruit them to work with the position and treatment they deserve Absolutely eliminate relationship-based recruitment There should be a policy to support and attract top students from universities which train major that the company needs - Restructure management and administration at the company’s office to enhance skills of staff, meeting the company’s need of development according to new request At the same time, rearrange and improve capacity of management and administration system of the construction units - Implement programs of training and retraining of profession skill, receive and transfer of knowledge, management skills, marketing skills, customer care service in accordance with modern international standards for staff, in which managers at strategic level such as Director, Chairman and Managing Representative of units or 51 Glass: GaMBA0110_Group staff who directly manages business, market establishment, and directly contact customers should be prioritized - Open program of training director of the enterprise soon Select and appoint staff who are qualified at management and have business ethics to manage the capital of the Company, of the units - Establish and apply rules and regulations of deserved promotion and reward as well as form of strict discipline to encourage staff to work hard and promote the creativity, dedicate for the development of the company - Continue to organize skill competition and increase salary for workers in each unit Organize course of Economic Management for staff from the head of producing and up Well implement the steps in occupational health and safety -not to cause serious accidents - Speed up the movement of improving construction work quality, in occupational health and safety; build a civilized lifestyle and new cultural family Strengthen activities of entertainment and sports widespread in the company, contributing to enhance the spiritual life for employees 3.3.5 Financial Solutions - With this strategy, the company should focus on quality of producing, reduce cost as low as possible in comparison to competitors in the target markets and the selling price should be the same as or lower than that of the oppenent in order to increase profit, power in the market and overcome risks in competition The elements that the Company should focus on to reduce costs are: - The cost of raw material and fuel per unit of product: - Reduce costs by well preparing sources of raw materials, having solutions to ensure that material is frequently enough for production Improve labor productivity, reorganize managing apparatus into a neat and effective one, reduce the number and improve the quality of labor To improve labor productivity, the company needs to rearrange the structure of staff, choose those who have right qualifications and health Improved salary scheme encourages employees to work 52 Glass: GaMBA0110_Group responsibly and productively As for surplus labor, the company should implement the following measures: accelerate its sales to expand production, spend a significant part of budget to solve the leave matter under the regulation for staff who have weak health or are close to the age of retirement At the present, management cost is holding a high rate compared to the total cost, in order to reduce costs of management, strive to lower management cost - To implement these strategies, the company should closely examine the costs, report regularly and continuously The apparatus must be structural and responsibilities must be divided clearly, reward and punishment are also serious Set up economic and technical norms to strive to implement Motivate enthusiasm of staff so that they work harder, more productive, responsible and effective - To mobilizing capital for expansion of business and production by issuing share and bonds - Through relationship with financial institutions, mobilizing medium and long-term capital with favourable rate for the expansion of business and production 3.4 Recommendations Recommend People's Committee of Nghe An province to permit the company to exploit land mind at Dien Tho commune, Dien Chau district, so that the company have a material source to flatten Tho Loc Industrial area and some other works Recommend People's Committee of Nghe An province and the representative of Vietnam chamber of commerce and industry in Nghe An to held annually several talks with businesses in order to solve the difficulties in procedures and policies… for businesses Timely disburse for construction works which have a complete file of balancing in accordance with regulation to solve the current funding problem of the business 53 Glass: GaMBA0110_Group Recommend People's Committee of Nghe An province to guide departments and agency to continue to reform administrative procedures, particularly tax procedures, land clearance 3.5 Roadmap To implement business strategy until 2020: Concentric Diversification at the enterprise level and the application of specific strategies for each type of product of the Tan Nam company should be followed this roadmap: 2012: Build business strategy to maintain and confirm the No in construction of Nghe An province and the region.Continue to invest in other operating field of the Company 2013: Research and develop Construction products to create differentiation in the market 2015: Construct a system of quality management as ISO standard and other construction products 2020: Complete business strategy until 2020 to achieve good results CONCLUSION In market economy, business strategy is essential and indispensable in production and business activities of enterprises, as well as their existence and development So is it as for Tan Nam Construction JSC Business strategy always plays a very important part in deciding the survival, thrive or decay of the company Indentify and draw a overall picture on manners and methods that the company will apply in the future through the system of key strategic target models At the present, with the rapid development of science and technology, the outbreak of information along with the sudden elements which occur continuously in each national economy, especially in the current period of crisis of the global economy 54 Glass: GaMBA0110_Group with unpredictable happenings, business strategy is appropriate and necessary Therefore, the construction industry as well as other sectors of national economy should also have the appropriate business strategies with each period of development Moreover, it should always add and complete them Through the business strategy, construction companies should set up a scientific process, anticipate opportunities and risks to work out appropriate solutions.Especially for Tan Nam Construction Joint Stock Company whose business field is construction, risks are great, when there is a complete business strategy, it will help the company be able to cope with any situation in market and vice versa The results of this research topic will hopefully help the leadership of Tan Nam Construction Joint stock company have a vision, capture and maximize opportunities as well as minimize risks in the competitive integration environment in the coming period, contributing to the successful implementation of development mission and objectives of the company until 2020 Despite many efforts to complete this exercise in the research process, the group of authors has limited knowledge, timeline, and source of information Therefore, the authors would like to receive more advice from scientists, teachers, friends and colleagues so that we can continue to complete it and hope that it will be finalized for inclusion in sustainable development Strategy of Tan Nam Construction Joint stock company Group would like to thank the Department of Economics – Tan Nam JSC and the teachers who helped the group in learning and writing this report / 55 Glass: GaMBA0110_Group REFERENCES Rudolf Griinig, RichardKiihn (translator Phạm Ngoc Thuy, Vo Van Huy, Le Thanh Long): Defining strategy according to process Scientific and technical Publishing House, November 2007 Stephen E Heiman – Diane Sanchez - TadTuleja: The new Strategic Selling Culture and Information Publishing House, 2004 Le Bac Son (Chief Editor):Analysys of business strategy National Political Publishing House 2001 56 Glass: GaMBA0110_Group Strategic Management Textbook, Marketing Management Textbook (Master Program of Griggs University) Business Performance Report of Tan Nam Construction Joint Stock Company in the period of 2008 – 2010 Financial report of Tan Nam Construction Joint Stock Company in the period of 2008 – 2010 and annual business plan reports Other internal documents of Tan Nam Construction Joint Stock Company APPENDIX Interview some key officers of Tan Nam Construction Joint Stock Company Objects of the interview  Manager of the company  Vice production manager  Manager of Finance Department and Plan Department Time of interview: September 2011 57 Glass: GaMBA0110_Group Content of the interview 3.1 The situation of production and business The general assessment about production and business of Tan Nam Construction Joint Stock Company within the period, focusing on the following items: • Equipment and production technique • Production competency of the company • The competency to develop and expand market of the company 3.2 Ability of the labor forces  Full-experience and enthusiastic in working  The company still doesn’t attract the high quality labor 3.3 Human resource development policy  Human resource development policy  Salary, bonus policy has not been satisfactory 3.3 Development orientation of the company in the future  Development orientation of the company in the future is appropriate with general orientation of Vietnam construction sector 3.4 Quality of the products  Construction products of the company is up to standard TABLE OF CONTENTS Heading Content Cover page Confirmation of the Head of Tan Nam 58 Page Glass: GaMBA0110_Group Construction Joint Stock Company List of abbreviation External Factor Evaluation Matrix EFE Internal Factor Evaluation Matrix IFE General Matrix of Internal and External factor IE Strength – weakness – opportunity – threat matrix SWOT Quantitative strategy planning matrix QSPM List of Tables Table 1.1 Table 2.1 Table 2.2 SWOT matrix 10 Organization Chart of Tan Nam Construction Joint Stock Company Production and Business Performance in 20082010 15 17 Table 2.3 List of some work 18 Table 2.4 Competence of staff and technique of the company 30 Table 2.5 Table 2.6 Table 2.7 Balance Sheet in December 31, 2010 of Tan Nam Construction Joint Stock Company Some financial norms of Tan Nam Construction Joint Stock Company List of some machines and equipment of Tan Nam Construction Joint Stock Company 31 33 34 Table 2.8 Competition image matrix 36 Table 2.9 General External Factor Matrix 37 Table 2.10 General Internal Factor Matrix 38 Table 3.1 Summary of SWOT matrix of Tan Nam Company 59 44 Glass: GaMBA0110_Group Table 3.2 QSPM Matrix 47 List of charts Heading Content Page INTRODUCTION 1 Rationale of the study Purpose of the study Object and scope of the study Methodology Structure of the study THEORETICAL BACKGROUND TO Chapter BUSINESS STRATEGY BUILDING 1.1 Definition and role of business strategy 1.1.1 Definition of business strategy 1.1.2 Roles of business strategy to corporates 1.1.3 Basic feature of business strategy Process to build up business strategy 1.2 1.2.1 Assessment of external and internal environment of the company 1.2.1.1 Analysis of external environment 1.2.1.2 Analysis of internal environment 1.2.2 Building matrix to select strategy 1.2.2.1 Matrix of external factors EFE 1.2.2.2 Matrix of internal factors IFE 60 Glass: GaMBA0110_Group 1.2.2.3 Matrix of General internal and external factor IE 1.2.2.4 Competitive image matrix 1.2.2.5 SWOT Matrix 1.2.2.6 QSPM Matrix 11 1.2.3 Chapter Selection of business strategy 11 ANALYSIS OF BUSINESS ENVIRONMENT 13 AND INTERNAL ENVIRONMENT OF TAN NAM COMPANY Introduction to Tan Nam Construction Joint 2.1 Stock Company 13 2.1.1 Establishment and development 13 2.1.2 Functions and missions 14 2.1.3 Human resource organization 15 2.1.4 Development orientation of the company 16 2.1.5 2.2 2.2.1 Production and business performance of the company within the period (2008 – 2010) Analysis of company’s business environment 26 Analysis of external environment 26 2.2.1.1 Analysis of micro environment 2.2.1.2 2.2.2 17 Analysis of sector environment and competitive environment Analysis of internal environment 26 28 30 2.2.2.1 Analysis of resources 30 2.2.2.2 Analysis of competitive competence 35 61 Glass: GaMBA0110_Group 2.2.3 Matrix of strategy selection 37 2.2.3.1 General Matrix of internal and external factors 37 2.2.3.2 SWOT Matrix 39 SELECTION OF BUSINESS STRATEGY TO Chapter 2020 AND SOLUTION TO ACHIEVE 42 TARGET OF TAM NAM CONSTRUCTION JOINT STOCK COMPANY Development strategy in the following period of 3.1 the company Selecting the business strategy of Tan Nam 3.2 Construction Joint Stock Company 42 43 3.2.1 Options 44 3.2.2 Chosen business strategy 49 Strategy solutions 50 3.3.1 Marketing solution 50 3.3.2 Investment solution 50 3.3.3 Technique solution 51 3.3.4 Human resource organization solution 51 3.3.5 Finance solution 52 3.4 Recommendations 54 3.5 Itinerary 54 CONCLUSION 55 REFERENCES 57 APPENDIX 58 3.3 62 ...Glass: GaMBA0110_Group VINH, 2011 INTRODUCTION Rationale of the study Vietnam economy after 25 years (1986-2011)... Construction joint stock Company and the knowledge trained in the period/time of taking part in MBA course International business administration of the associating program between Griggs university... become a strong/powerful enterprise in the construction industry Purpose of the study Glass: GaMBA0110_Group To research and systematize the theories of bulding and implemeting business strategies,