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Group - Gamba.V0110 13 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION ***** CAPSTON PROJECT REPORT *** Topic: BUSINESS STRATEGY CONSTRUCTION FOR NGHE AN TOURISM JOINT STOCK COMPANY WITHIN THE PERIOD OF 2011 – 2015 Group – Class: Gamba-V0110 Group members: Nguyễn Đức Hiển – Group leader Phạm Anh Tuấn – Group member Nguyễn Đình Thiện – Group member Võ Văn Ngọc – Group member MBA GRIGGS Group - Gamba.V0110 PREFACE We want to show our gratitude to Nghe An tourism Joint stock Company which has supported us to provide data as well as have meetings to construct business strategy for the company Besides, we also want to send gratitude to professors, doctors who have provided us skills and knowledge of business administration during the course Such knowledge is the basis for us to prepare this capston project report as well as apply into working reality Especially we want to thank theory council of Griggs University to instruct us during study process Topic: Business strategy construction for Nghe An Tourism Joint Stock Company within the period of 2011-2015 Preface CHAPTER I: ARGUMENTAL BASIS ON BUSINESS STRATEGY OF THE ENTERPRISE 1.1 Definition of business strategy 1.1.1: Definition of strategy: Definition of strategy has originated from military sector originated from the word of “strategos” which is just like the role of general in military army Nowadays, strategy is used popularly which is considered as the factor to increase capacity of success and reduce capacity of failure of enterprise - According to Fred David, trading strategy is medium to reach long term targets; trading strategy can include development of geography, diversification of activities, ownership, development of product, market penetration, cost reduction, liquidation, joint venture (Fred R David, definition of strategic administration, translation edition, Statistical Publishing House, 2006) Strategy is the collection of decisions: targets, methods, policy, resource allocation…and action plan to reach long term targets 1.1.2 Classification of business strategy MBA GRIGGS Group - Gamba.V0110 Business strategy has the important role in the existence and development of enterprise; the role of business strategy is shown by the following aspects: - Business strategy has helped enterprise to realize orientation in the future which is the operational guideline for all activities of the enterprise - Business strategy will help the enterprise to grasp and make use of business opportunities at the same time have active method to cope with threats and risks within business environment - Business strategy pays important role to orient long term activitie of the enterprise which is the firm basis for implementing operational activities The lack of strategy or unclear strategy without firm basis will make the activities of enterprise lose orientation; there are many short term problems without long term targets which cannot show the general role in activities of enterprise - Business strategy will raise operational effect of resources, increase competitive position of enterprise to ensure sustainable development for the enterprise - Business strategy can create firm basis for enterprise to create suitable decisions with the change of market; it will create firm basis for study and implementation activities, invest in development and training, personnel nurture, expand market and develop products In fact, most of mistakes in investment, technology, market are originated from constructing strategy or mistakes in defining strategic targets The success or failure of enterprise will depend on important factor which is business strategy * Business strategy classification according to strategic level When classifying strategy according to strategic level we will divide as follows: - Company level strategy (or general strategy): is constructed for the whole company in all terms that the company joins in - Business level strategy (sector): is constructed for a narrow business sector MBA GRIGGS Group - Gamba.V0110 - Functional strategy: this is the strategy of each private function in company such as finance, personnel, marketing… then we can consider functional strategy as supporting strategy for business level strategy and company level strategy * Business strategy classification according to strategy contents - Commercial strategy - Financial strategy - Human strategy - Technological and technical strategy * Business strategy classification according to strategic process According to this classification business strategy includes: - Orientation strategy - Action strategy 1.2 Business strategy construction process 1.2.1 External environmental analysis: The purpose of external environmental analysis is to realize opportunities and threats from external environment External environment includes macro environment (general environment) and sector environment (competitive environment)  Macro environment Macro environment can have much influences on many sectors, enterprises and indirectly impact on the enterprise; macro environmental analysis will show that enterprise is coping with which problems? what is the opportunity and threat for business activities of the enterprise in the future To analyze, evaluate the influence of external environment on the enterprise, using PEST theory including evaluation of political and legal factors (P), Economic (E), Social (S) and technology (T) to find out opportunities and threats for enterprises in the activities of business environment MBA GRIGGS Group - Gamba.V0110 Figure 1- PEST model (Political) Stable politics, labor law, tax policy, legal system and legal environment (Social) Population Allocation of national income Living style Culture, people’s qualification Customs, tradition (Economics) Change of GDP Rate of economic growth rate Interest, inflate Unemployemnt Cycle of economy (Technological) Discover new technology Rate of technological transfer Governmental cost for R&D Market of technological products - Political and legal factors: MBA GRIGGS Group - Gamba.V0110 Enterprise is the cell of economy, all decisions of the enterprise will bear strong influence of political and legal environment; political and legal environmental analysis is an indispensable activity to construct business strategy of the enterprise Political environment includes State and law as well as management activities of the State It includes system of State’s policies and viewpoints, current legal system, political trends, Governmental diplomacy as well as political happenings in the nation, region and the world - Economic factor: It is the factor to impact on the enterprise which is the factor to operate the most constantly which is difficult to predict in macro factors; its operation bears opportunities and threats for enterprise; economic factor tends to operate as follows:  The trend of GDP: can impact on growth rate of the economy, on the growth rate of population’s income which can change demand of consumders, market scale, impact on supply and demand of products  Economic policies show the Governmental viewpoint in sector development  Inflate rate can impact on prediction capacity of investors  Interest rate is the factor to impact on the trend of consumption saving and investment which can increase or decrease consumption, stimulate or limit production expansion  Payment scale, exchange rate impact on market and economic relation of the enterprise - Social and cultural factors: Social cultural environment can be understood as the following factors: language, value and attitude, behaviors, customs and traditions, material factors, aesthetic, education, factors of population scale, age, gender, race and professional skill … The change of social and cultural factor is the result of long term impact of other macro factors then it can happen more slowly than other factors However MBA GRIGGS Group - Gamba.V0110 it can have long term impact rather than other factors then study of social and cultural environment is an indispensable content in studying macro environment - Technological factor: Forces to create new technology, new product and market fortune; technological environment includes: the appearance of new technology, discovery speed and application of new technology, Governmental support and encouragement for research and development; it will allow creating new products of function and outstanding quality in a short time but such changes can make existing products be outdated Then technological changes will include creation and damage to bring opportunities and threats - Besides, in the condition of global economy it requires enterprises to study related factors of natural environment and global environment: In the background of exhausted natural resources, environmental pollution, ecological balance loss…business strategy of enterprises must meet the following requirements: sustainable development, make use of natural resources effectively; promote study and development of technology to create clean products to protect environment, reduce impacts from production activities of the enterprise In the condition of global economic integration it requires to have global environmental study 1.2.2 Analysis of macro environment Analysis of enterprise can discover strengthes and weaknesses of enterprise to build up target system and suitable strategies to make maximum use of strengths and turn them into special capacity as well as limit weaknesses; The purpose of internal environmental analysis is to realize potential resources to create competitive advantage for the enterprise; we can also realize barriers in maintaining competitive advantage; activities of an enterprise will include activities of financial administration, personnel, business production, marketing study….and it must have a system of information, management, MBA GRIGGS Group - Gamba.V0110 functional divisions in each operationa sector Each enterprise has its own strengths and weakneses; define strengths and weaknesses to help the enterprise to construct and select suitable business strategy To analyze sector’s environment then we can use five-force model of Michael Porter Such model has mentioned forces to bring opportunities or threatens ina sector including (1) providers, (2) current competitive opponents, (3) potential competitive opponents , (4) customers, (5) replaced products One of five forces can bear influence from other factors which must be studied to create a full picture of sector’s competition Mutual impact among forces can create opportunities and threatens for enterprises within the sector which is shown in the following diagram Newly participated person Threatens of newly participated person Providers Bargain capacity of provider Competitive opponents Competitive intensity Bargain capacity of buyer Buyers Replaced threatens Replaced products MBA GRIGGS Group - Gamba.V0110 Figure 1.3 five-force model of M.Porter Competitive opponents in the sector : When mentioning competition among enterprises, we must consider the level of competition among enterprises in the sector; a sector with high competitive level then capacity to reduce competitive price is very high which can lead to profit reduction threatening to enterprises; factors to decide competitive level of a sector can include sector’s growth rate, quantity of enterprises and their relative scale, the height of sector’s barriers, different products among enterprises Threatens of newly participated members: Such threatens are defined by “the height of participation’s barriers”; if participation’s barriers are high then the power to threaten from potential opponents can reduce and more opportunities will be given to enterprises; Decisive factors of participation’s barriers including economic scale, difference of products and faithfulness with label, distribution channels, absolutely advantageous cost Power of buyers (customers): MBA GRIGGS Group - Gamba.V0110 In the correlation between enterprises and customers, if customers are “weak” then enterprises can increase price to increase profit; on the contrary, customers can be “stronger” than enterprise Power of providers: Providers have capacity to require price increase or reduction of product quality which is stronger than enterprise; providers can be stronger in cases when providers not have many replaced product within market of industrial commodity which forces enterprises to choose them; when trading sector of enterprise is not important to providers; when providers have advantage in specializing products which make enterprises difficult to choose a replaced provider; when providers can join in trading sector of enterprise to compete directly with enterprises Threatens from replaced products According to M Porter, replaced products are products of competitive opponents in the trading sectors which can have the same function to meet the similar demand of consumption of customers Existence of products out of product boundary can increase common trend of customers to change into other alternatives such as: trend for buyers to replace; relative price of replaced products; realization level of different products, available products within the market There are many methods to analyze internal environment of the enterprise including resource analysis method as follows: - Human resource: people are the most valuable asset of enterprise; in case of good recruitment and maintenance of talented people then enterprise will have big advantages to win competitive opponents; human resource of enterprise can be divided into three different levels: high ranking, intermediate level and low level; human resource evaluation is a general task including many factors such as 10 MBA GRIGGS Group - Gamba.V0110 NATOUR From the position of NATOUR in IE matrix, we can define that enterprise is in the zone with good condition for investment and development; combined with SWOT matrix, selected strategic zone will be SO 3.3 Business strategy selection of Nghe An tourism JSC within the period of 2011 – 2015 and vision by 2020 3.3.1 Growth strategy by breakthroughs and diversification of tourism products and services To exploit potential, advantages of opportunities, market and advantages from internal environment within the period of 2011 -2015, NATOUR has selected growth strategy for related sectors by investing to expand accommodations including: construct and put into exploiting Muong Thanh – 58 MBA GRIGGS Group - Gamba.V0110 Song Lam hotel with 32 floors, 350 bedrooms and modern equipments with fivestar standards which is the biggest hotel of Central area located in Vinh city in 2014 This is the important duty of the company within the period of 2011-2015 which requires leading board of the company to focus on effective method to meet requirements and progress Construct new investment in high quality Resort in Cua Lo to focus on exploiting internal tourists as well as international tourists because in Cua Lo accommodations are plentiful but there is no high quality accommodations to receive and meet demand of such tourists Investment in expanding to create a series of tourism destinations for tourists from two tourism centers of the company at the same time exploit potential customers from regional tourists especially tourists of MICE Ha Noội, Sai gon, Thai lan and international tourists This will connect with strategy of integration growth to promote values because of sharing resources and transferring capacity among existing hotels Diversified growth strategy of this related sector can also create values via internal administration, promote economic quality in term of scope and strategy supporting 3.3.2 Differentiality strategy In the background of market with a big quantity of competitive opponents, to consolidate and develop the company must improve to create difference for provided products and services; at the same time in front of challenges of the market, due to high GDP growth and active economic development together with suitable policies for investment attraction then competitive opponents will be ready to integrate into the market which will require the company to have active solutions to create difference to increase competitive advantages with potential opponents NATOUR has selected strategy of differentiality by connecting cultural factors with provided products and services such as Nghe An folk songs, local music to all tourists who have come to the hotels, resorts to create good 59 MBA GRIGGS Group - Gamba.V0110 impression for tourists; tourists when coming to the Resort will not only be satisfied with resting demand but also harmonize with nature and feel traditional custom of Nghe An people Natour organizes useful facilities such as selling air tickets of VN-AirLine, JET-STAR, MEKONG Aỉline, tourism serices, coaches for receiving VIP toursist, medical healthcare and Spa & sauna, let tourists enjoy Nghe An folk songs…All of supporting services will increase values of facility and comfort for customers to create difference to increase competitive advantage At the same time to increase difference in professional skill and serving style, NATOUR will focus on training an official personnel with good foreign language to meet demands of standards and higher requirements of tourism markets Natour implements the technology of booking, diversified payment forms to create good condition for customers such as Master Card, Visa Card Credit Card 3.3.2 Focused strategy NATOUR must select focused strategy for market segmentation to define each suitable target customers for each hotel and Resort: Muong Thanh – Song Lam hotel has reached five star standards to combine classical style of France with deluxe equipments which will officially go into operation in August of 2013 to receive the market of international tourists, focus on international tourists according to tour and hundreds of foreign experts to stay and work in big projects of industrial zones in and out of the province because Vinh city is trying to become a center of economy, culture and services of Northern Central area in the near future Especially with regard to such market segmentation, the company will focus on the key trading sectors of services trading in European and Thailand’s restaurants because this will be a new direction in Nghe An market that current opponents cannot implement effectively 60 MBA GRIGGS Group - Gamba.V0110 Bong Sen hotel is invested with modern style reaching three star standards located in the center of Vinh city; the company will focus on providing common facilities for the whole system such as air tickets office, foreign currency exchange serices, tourism coach leasing to orient to traditional customers of the company The main customers of Cua Lo resort are MIC tourists, tourists of weekend, rehabilitation tourists; together with hotel system, Cua Lo resort has created a series of ideal destinations for tourists 3.4 Solutions to well implement given strategies 3.4.1 Financial and investment solutions First of all NATOUR will promote the progress to construct Muong Thanh – Song Lam hotel to reach five star standards; upgrade system of existing hotels such as Bong Sen hotel to reach three star standards together with commercial center in Vinh city; promote construction of Cua LO resort; upgrade and buy some tourism 12 to 45 seat coaches with high quality From demand of expected capital the company will mobilize 70% capital from shareholders, 30% remaining capital of the company has got plan to mobilize capital from banking credit source; balance of short term capital to be suitable to asset situation to ensure balance, safety and limit risks 3.4.2 Solution of human resource Human resource is the decisive factor then to meet demand of human resource is very important for using demand in five star hotel and Resort, then the company must make recruitment plan for employees effectively; to use effectively existing human resources, the company must recruit new labors, classify and arrange organizational models, construct and implement human resource training and development plan, care for nurturing, training to raise professional qualification, management skill such as appoint some cadres to go on professional training in Ho Chi Minh city tourism school; check and select 61 MBA GRIGGS Group - Gamba.V0110 some cadres to be on training in Singapore to meet demand of management and service in five star hotels and resorts To well prepare human resource to meet demand of resorts and hotels the company will coordinate with tourism centers with policies to support learning fees for good learners to work in locality to reduce retraining cost Besides to solve the situation in which labor force is rather older than the serving age in tourism sector the company must find out policies to make staffs younger by deep training for elder objects working for a long time in the company then have suitable arrangement of personnel All of personnel working in the company will be trained on private cultural feature of NATOUR, construct a private cultural style for enterprise to limit the situation in which employees will transfer to other working place Coordinate with center of foreign languages to sign contracts of periodic courses on communication English in restaurants, hotels and tourism sector; to promote creation and encouragement of labors to work harder, the company organizes contests of professional skills, behavioral culture to educate thinkings with professional morality At the same time working process combined with evaluation results via contests personnel office will design a ranking system for individuals in each divisions; excellent ranking will be complimented in income structure of employees; at the same time it can design a marking system of working discipline for employees 3.4.3 Market solutions * Firstly strategy of products and services: + Diversify and raise quality of products and services that the company are providing: Well organize tours of MICE (tourism combined with complimenting of workshops organization) together with organize for customers to enjoy and visit tourism points in the province and neighboring areas Develop services of restaurants, wedding technology, Buffeet party, fast 62 MBA GRIGGS Group - Gamba.V0110 food, coffee drinking, Bartender, masage, spa in the system of restaurants and hotels; implement supporting services for customers such as selling air tickets, foreign currency exchange, tourism bus leasing… + Create different products and services : Put folk Songs of Nghe Tinh into cusine culture to create a cultural environment for tourists coming to the system of restaunrants, hotels of the company; create professional style to become a private cultural distinction * Secondly price strategy : + Distinguishing price strategy: Create policy of deduction and price reduction from 5% - 10% for target customers, traditional customers; domestic and foreign tourists; especially in the opening ceremony it will set high price to advertise brand name but then reduce price to attract tourists * Thirdly brand name strategy : + Advertise image, sevices, infrastructure of the company especially five star hotel on airplanes of domestic and foreign airways + TV advertisement Coordinate with broadcasting and VTV to construct news on development process of NATOUR to advertise and prove its own brand name within the market; support some events to connect LOGO of the company to advertise brand name + direct Marketing to customers : Train professional marketing employees to study market, product and service marketing, sale promotion, customers’ services by granting invitation to use services in the opening time of new services; deliver leaflets, design questionnaires or direct interview on opinions of customers on products and services to promote sale and raise satisfaction of customers; invite some international tourists to survey quality of service and infrastructure of hotel system of NATOUR 63 MBA GRIGGS Group - Gamba.V0110 Together with tourism promotion center – Department of culture, sport and tourism to receive tourists of Famtrip,Presstour to advertise brand name, service quality of NATOUR + Solutions to attract domestic and foreign customers for NATOUR: - Focus on market of Thai Land and Laos (via road: bordergate n.8, no.9, no.7) via tourism center of NATOUR to associate with international tourism centers in Laos and Thailand to bring customers to Muong Thanh - Song Lam hotel, Bong Sen and Cua Lo resort; sign contract with enterprises in Laos: Cham pa TOUR, Phou doi TOUR(Vientanne), Mekong TOUR ( Savanakhet); Thailand: Nakhon tour, khon ken tour However, with regard to this tours, Natour must craete difference compared to other competitive opponents such as: exploit routes, new tourism centers, quality of tour guide must be raised from careful serving attitude, professional qualification to attract tourists - Set relations with international tourism centers in Ha Noi, Ho Chi Minh city, Hue, Da Nang, Quang Tri, Nghe An…bring Asian and European customers to stay in the hotel and resort of Natour - Develop tourist quantity from Ha Noi, Ho Chi Minh city and some big tourism centers in using MICE tourism of Natour in Nghe An (Vinh, Cua Lo) by organizing high quality MICe and provide some most different products and services for MICE customers such as: visiting Uncle Ho’c hometown, Ngu Island visiting, boat on Lam river, enjoy cultural products of Nghe An province + Advertise image and sale promotion on internet Construct webside to advertise image of the company, products and services; connecting with tourism website of Viet Nam to advertise to international market; tourism route will have the function of contact or sale, provide online services + Technological solutions; 64 MBA GRIGGS Group - Gamba.V0110 Hotel system has big and modern scale then it needs solution of high tech to meet demand of management and safety for tourists and hotel: - Apply management software of Smay into hotel system - Invest in network system to ensure all hotels to use services of internet, wifi… - Assemble system of INBUILDING in big hotel - Promote PR, advertisement of brand name via constructing a general website for NATOURR - Assemble system of Camera at hotels - Assemble automatic system of power equipment in hotel - Assemble system of power and internal telephone network in hotels 3.5 Implementation route 3.5.1 Time * Period of 2011 - 2013 1/ Construct and complete Muong Thanh – Song Lam hotel to become a five star hotel 2/ Upgrade Bong sen Hotel to three star and commercial center 3/ Upgrade and invest in tourism buses of NATOUR 4/ Improve services * period of 2013 - 2014 1/ Investment in constructing high quality rehabilitation resort in Cua Lo * Period of 2014 - 2015 1/ Improve projects of Cua Lo resort to be put into using 3.5.2 Implementation expenditure Table 3.4: investment expenditure within the period of 2014-2015 Unit: billion VNĐ Investment Investment item form Muong Thanh – New 20102011 150 2012 2013 2014 2015 Total 140 160 - - 450 65 MBA GRIGGS Group - Gamba.V0110 Song Lam hotel construction Bong Sen hotel Upgrade 20 30 30 - - 80 10 20 30 40 100 172 183 212 30 40 637 commercial center Tourism bus Cua Lo Resort Upgrade New construction Total 3.5.3 Implementation human resource To implement given strategy it needs to have support from functional offices, member units together with professional divisions of the branch within the whole company + With regard to co-centre growth strategy, investment in new construction and upgrading to repair hotels, resorts will be granted to member companies to coordinate with basic construction board of the hotels to monitor implementation, implementation progress after approving investment option + Integration growth strategy, focused strategy, leading cost strategy and differentiality strategy will be granted to marketing office, accounting office, two tourism centers coordinating with branches to implement 3.5.4 Evaluation of risks and find out solutions Growth strategy by investing in Muong Thanh – Song Lam hotel, Bong Sen hotel and commercial center in Vinh city, Cua Lo resort will bring economic value in term of scope because it can create a series of destination for tourists coming to Nghe An On the other hand, the development of industrial zones, Dong Nam economic zone, Dong Hoi economic zone, Western economic zone will lead to strong development of tourism service sector; then feasibility and progress of project implementation will strongly impact on the success or failure of such investment strategy To cope with risks of investment when conditions are not favorable for project implementation then NATOUR must have 66 MBA GRIGGS Group - Gamba.V0110 investmtion option of above projects according to many periods, items and then implementation bidding package will depend on demand of market under the influences of projects and regional socio-economic development CONCLUSION In business activities of each enterprise, business strategy has an important role which can impact on the success and failure of enterprise; business activities of NATOUR is not an exception; business strategy is always cared by leading board of NATOUR We hope that the topic “business strategy construction within the period of 2011-2015” will be applied into reality of NATOUR to maintain its own position in tourism sector in the province, region, nation and integrate into the world to reach the purpose to become a leading enterprise in tourism sector of Centralarea During the process of topic completion investment time and experiences of the group are limited then we cannot avoid making mistakes then we are looking forward to receiving comments from theory council to make the topic be applied into reality Group wants to show our gratitude to leading board, cadres, employees of NATOUR, Nghe An department of culture, sport and tourism to help us to complete the topic 67 MBA GRIGGS Group - Gamba.V0110 REFERENCES Books: Deputy professor, doctor Lê Thế Giới (2009), Strategic administration, statistical publishing house, Ho ChiMinh city Deputy professor, doctor Ngô Kim Thanh - 2011, Strategic administration, National economic university publishing house, Ha Noi Fred R David (2009), Strategic Management, Pearson Education International, Canada Charles W.L Hill, Gareth R Joines (2002), Strategic Management: An Integrated Approach, 5th, Ed Houghton Mifflin David A Secenzo, Stephen P Robbins (2002), Human Resource Management, 7th John Wiley & Son, Inc Resolution of party’s congress legislature XI , resolution of provincial party’s congress legislature XVII, Resolution No 12 of provincial party’s committee in term of Nghe An tourism within the period of 2002-2010 and draft of resolution of standing committee of provincial aprty’s committee in term of Nghe An tourism development within 2011-2020 Website: http://www.phapluatvn.vn/kinhte/201012/Kinh-te-Viet-Nam-hap-dan-nho-chinhtri-on-dinh-2020894/ http://www.vietnamtourism.gov.vn/index.php?cat=2025&itemid=617 http://dulichnghean.org 68 MBA GRIGGS Group - Gamba.V0110 http://vovnews.vn/Home/On-dinh-chinh-tri-la-mot-loi-the-cua-VietNam/20105/142773.vov APPENDIX CHAPTER I: ARGUMENTAL BASIS ON CONSTRUCTING BUSINESS STRATEGY FOR THE ENTERPRISE 1.1 Definition of business strategy 1.1.1: Definition of strategy: 1.1.2 Business strategy classification 1.2 Business strategy construction process 1.2.1 external environmental analysis: 1.2.2 Micro environment analysis 1.2.3 Business strategy formation and selection: 10 1.3 Businesss strategy analysis tools 11 1.3.1 Matrix for external environmental factors 12 1.3.2 Matrix for internal environmental factors 12 1.3.3 Matrix for external and internal environmental 13 factors 13 1.3.4 SWOT matrix 14 CHAPTER II: BUSINESS ENVIRONMENT ANALYSIS OF NATOUR 2.1 General introduction of Nghe An tourism JSC NATOUR) 17 2.1.1 general 27 introduction 18 2.1.2 Formation and development of NATOUR 20 2.1.3 Vision, mission and core values of NATOUR 22 2.2 External environmental analysis of NATOUR 22 24 69 MBA GRIGGS Group - Gamba.V0110 2.2.1 Economic factor: 26 2.2.2 Political and legal factor 26 2.2.3 Improvement of tourism law of Viet Nam 28 2.2.4 Socio cultural factor 29 2.2.5 Natural factor 31 2.2.6 Technological factor 31 2.3 Sector environment of Natour: 34 2.3.1 Market prospect : 35 2.3.2 Analysis of competitive intensity of opponents 36 2.3.3 Threats from potential 39 opponents 2.3.4 Analysis of 38 pressure from customer 40 49 2.3.5 Analysis of pressure from providers 2.3.6 Analysis of threats from replaced products 49 2.3.7 External factor synthesis of NATOUR 2.4 Internal environmental analysis of NATOUR 49 2.4.1 Capacity evaluation of NATOUR 49 2.4.2, Synthesis of internal factors analysis 50 CHAPTER III: BUSINESS STRATEGY SELECTION OF NGHE AN TOURISM JOINT STOCK COMPANY - NATOUR WITHIN THE PERIOD OF 2011–2015 AND IMPLEMENTATION SOLUTIONS 53 53 3.1 Strategic targets of NATOUR : 54 3.2 Business strategy selection of NATOUR : 54 3.2.1 Approach of SWOT 55 3.2.2 Approach of IE 56 3.3 Business strategy selection of NATOUR within the period of 2011 – 56 2015 and vision by 2020 70 MBA GRIGGS 3.3.1 Group - Gamba.V0110 Growth strategy by breakthroughs and product diversification 3.3.2 Differential strategy 3.3.3 Focused strategy 3.4 Solutions for effective implementation of given strategy 57 3.4.1 Solution of investment and finance 58 3.4.2 Solution of personnel 60 3.4.3 Solution of market 60 3.5 Implementation route 60 3.5.1 Time 60 3.5.2 61 Implementation 61 expenditure 62 3.5.3.Personnel 63 3.5.4 Risk evaluation and solutions 63 CONCLUSION REFERENCES TABLE OF CONTENTS LIST OF ABBREVIATIONS NATOUR SWOT Nghe AN tourism JSC Strength, weakness, threats, opportunities HĐLD CBCNV US GDP Labor contract Cadres, employees America Gross domestic products LIST OF TABLES 71 MBA GRIGGS Group - Gamba.V0110 Table 2.1: statistical table of Nghe An tourism sector Table 2.2: External factor evaluation E.F.E Table 2.3: Structure of qualification of cadres in NATOUR by December 35 41 Of the year 2010 Table 2.4: Balance sheet within recent years Table 2.5: Business results report Table 2.6 Internal factor evaluation I.F.E Table 3.1: market targets of NATOUR Table 3.2: Human resource targets of NATOUR 44 45 45 48 49 49 Table 3.3: Financial norms of NATOUR Table 3.4: Investment expenditure within the period of 2014-2015 50 60 LIST OF FIGURES : Figure 1.1: PEST model Figure 1.2: five force model of Michael Porter Figure 1.3: IE matrix Figure 2.1 :organizational structure of NATOUR Figure 2.2 : Five competitive force of Michael Porter Figure 3.1 : IE matrix of NATOUR 14 18 33 53 72 ... 2,1 MBA GRIGGS Group - Gamba.V0110 According to statistical data of Nghe An department of culture, sport and tourism, synthesis of data within the period of 2005 -2010, we have: 36 Group - Gamba.V0110... allocation…and action plan to reach long term targets 1.1.2 Classification of business strategy MBA GRIGGS Group - Gamba.V0110 Business strategy has the important role in the existence and development of... joins in - Business level strategy (sector): is constructed for a narrow business sector MBA GRIGGS Group - Gamba.V0110 - Functional strategy: this is the strategy of each private function in company