Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (13)

CAPSTONE PROJECT REPORT FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 Group No.03: Nguyen Truong Thang Tran Thi Minh Hien Tran Thanh Tu Le Anh Tuan Class: GAMBA01.X0710 H A TABLE OF CONTENTS N O I 1 GROUP NO.03 2|Page FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 GROUP NO.03 FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 LIST OF TABLE 3|Page GROUP NO.03 FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 LIST OF FIGURES 4|Page GROUP NO.03 FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 COMMITMENT We, the research team, would like to commit that this Capstone project is our own research and has been done using various sources and real information The Capstone project is not copied from any other report We undertake any responsibility for the content of this report 5|Page GROUP NO.03 FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 ACKNOWLEDGEMENT For gaining such research results, we would like to express our thanks to Griggs University, ETC Centre and especially to all lecturers who have taught, guided and provided us with the valuable knowledge Our sincere thanks would also come to the support and assistance of all the people in VIG Trading They have spent their valuable time discussing with us the topic contents and practical situations at the company, help us create a strong connection between theory and practice, which play a pivotal role in completing the project We, Group No.03, would like to receive the continual support from lecturers and the university to help us complete the course with highest results Also, the support of VIG Trading will be an indispensable motivation for the success of the research 6|Page GROUP NO.03 7|Page FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 GROUP NO.03 FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 INTRODUCTION Vietnam's economy is gradually integrating into the region and the world economy As a result, businesses have the chance to expand their horizon but the competition pressure also becomes stiffer On one hand, many new opportunities are present but on the other hand potential risks are also greater Facing a more uncertain environment, which has been hit hard by the double-dip global recession, the issue of defining, formulating and implementing an effective business strategy for each enterprise has become not only critical but also a matter of life and death VIG Trading, a trading firm in the building material industry set up right at the start of this global economic downturn (2008), can be seen as a highlight example to illustrate the importance of strategy formulation Continuously applying a rigorous but very adaptive strategic management approach, VIG Trading has achieved outstanding results despite the difficult business climate In order for the Company to continue its success in seizing business opportunities and at the same time mitigating risks, the whole process of strategy formulation and implementation should be examined, revised and changed accordingly With the support from the Company Management Board, our group has obtained an invaluable chance to be involved in this process The research topic:” FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 20122016" was therefore selected The purpose of this research project is to help clarify some key theoretical issues on formulating and implementing business strategies of VIG Trading on the basis of analytical evaluation of the Company’s business as well as of the changes in the business environment in recent years The project comprises of three parts: Part I: Foundation of Strategic Management and Strategies Formulation Part II: VIG Trading Strategy Analysis Part III: Proposed Business Strategies and Solutions for Implementation 8|Page GROUP NO.03 FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 PART I - FOUNDATION OF STRATEGIC MANAGEMENT AND STRATEGIES FORMULATION 1.1 Strategy Concepts 1.1.1 Definition Strategies are the means by which long-term objectives will be achieved Business strategies may include geographic expansion, diversification, acquisition, product development, market penetration, retrenchment, divestiture, liquidation, and joint ventures Strategies are potential actions that require top management decisions and large amounts of the firm’s resources In addition, strategies affect an organization’s long-term prosperity, typically for at least five years, and thus are future-oriented Strategies have multifunctional or multidivisional consequences and require consideration of both the external and internal factors facing the firm 1.1.2 Types of strategies There are number of alternative strategies that an enterprise could pursue and can be categorized into 11 actions: forward integration, backward integration, horizontal integration, market penetration, market development, product development, related diversification, unrelated diversification, retrenchment, divestiture, and liquidation Each alternative strategy has countless variations Many, if not most, organizations simultaneously pursue a combination of two or more strategies, but a combination strategy can be exceptionally risky if carried too far No organization can afford to pursue all the strategies that might benefit the firm Difficult decisions must be made Priority must be established Organizations, like individuals, have limited resources Both organizations and individuals must choose among alternative strategies and avoid excessive indebtedness Strategy Definition Forward Integration Gaining ownership or increased control over distributors or retailers Backward Integration Seeking ownership or increased control of a firm’s suppliers Horizontal Integration Seeking ownership or increased control over competitors Market Penetration Seeking increased market share for present products or services in 9|Page GROUP NO.03 Strategy FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 Definition present markets through greater marketing efforts Market Development Introducing present products or services into new geographic area Product Development Seeking increased sales by improving present products or services or developing new ones Related Diversification Adding new but related products or services Unrelated Diversification Adding new, unrelated products or services Retrenchment Regrouping through cost and asset reduction to reverse declining sales and profit Divestiture Selling a division or part of an organization Liquidation Selling all of a company’s assets, in parts, for their tangible worth 1.1.3 Levels of Strategies Strategy making is not just a task for top executives Middle and lower-level managers must be involved in the strategic-planning process to the extent possible In large firms, there are actually four levels of strategies: corporate, divisional, functional, and operational —as illustrated in diagram below However, in small firms, there are actually three levels of strategies: company, functional, and operational It is important to note that all persons responsible for strategic planning at the various levels ideally participate and understand the strategies at the other organizational levels to help ensure coordination, facilitation, and commitment while avoiding inconsistency, inefficiency, and miscommunication Plant managers, for example, need to understand and be supportive of the overall corporate strategic plan (game plan) while the president and the CEO need to be knowledgeable of strategies being employed in various sales territories and manufacturing plants Figure - Levels of Strategies 10 | P a g e FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 2.3 Main strategies combinations The slow-down of real estate sector is forecasted to be continuing at least in the next years Moreover, as presented in the earlier part, VIG Trading business relies heavily on the distributions of building materials in the projects were VIG Trading is the main investors or possess shares, and this is very risky with the development of VIG Trading in the future VIG Group is now changing it strategies, and from that, VIG Group will exit its presence in some of the companies in the Group, only transfer the relationships and connections to the member companies so that these companies will have to strike to stand alone VIG Trading is one of these companies Therefore, VIG Trading needs to set up its own strategies to adapt with the new changes both Group internally and externally Inheriting a strong financial base and a welldeveloped network, VIG Trading is able to develop its own strategies Following that, gaining control over input (Combining forward strategy) and over output (Combining forward strategy) are the first strategies must be done to develop VIG Trading’s value chain and to manage its cash flow, commercial credit policies, etc Taking advantages of the wide international networks of VIG Group, VIG Trading should look regional, look worldwide and thus, Expanding export markets strategy is also under consideration 2.3.1 Combining forward strategy Forward integration involves gaining ownership or increased control over distributors or retailers The ongoing economic downturn, though put a lot of pressure on the Company at the moment, also pose good opportunities to expand forward in taking over the distribution channel As shown in more detail in Section 3.4, as part of VIG GROUP, an entity specializing in arranging financing for various investment projects, VIG Trading can take advantage of this capability to impose their own terms on the distributors, select the best ones and gradually control them All will be done via a smart financing and investment structure ‘Being smart’ is always the Company best value Some specific forward integration 53 | P a g e FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 strategies: • Set up a strong credit policy with distributors When the money is scarce and expected to be more so next year, a smart credit policy will definitely help win the day Gradually, the distribution systems will be dependent on VIG Trading policy, which is unmatched by other competitors • With an efficient management and financial control systems, VIG Trading can save costs, thereby being able to offer deep discount to distributors Certainly, this will drive away competition pressure • Opencompany’s retail points: In cooperation with partners who have suitable place ina manner that companypay cost of goods on display, the partners pay the cost of repair or installation, sale andshareprofit together • Putproducts intothe existing distribution systemon the marketthathave not solethe company'sproducts: Provide incentive policies mainly on credit anddiscounttobring productsinto theavailable distribution system Givetheincentivepackagesin the direction the more you buy the more you are discountedto promote thesale of products 2.3.2 Combining backward strategy Backward integration is a strategy of seeking ownership or increased control of a firm’s suppliers Developstrategicpartnershipswith otherlargemanufacturing plants: • Purchasing sharesand restructurethe production-strugglingfactory: For plants which theirproducts canbe soldon the markethavingfinancialdifficulty(lack of capital to buyraw materials,have bad loansbyborrowingmoney to invest, etc.), the companycan co-operate byinvesting infactoryin the form ofdirect financialloans, then these loanscan swaptheshares,orloans throughthe provision ofinputs Sinceitcan take the initiativeonoutputwithreasonable costs, increasingproduct‘s competitivenesson the market • Supporting creditfor the plantsto exchange fordistribution right: Whenthe agencies havebulkorders, the company will prepay in part to produce, then permit them to pay late from1 to months depend on each order; so all productsandcontract of factory, including thepartnership,must be distributed throughthe company 54 | P a g e FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 2.3.3 Expandingexport markets As the market for construction materials is expected to dry up in 2012, finding new market abroad should be an appropriate strategy This would help VIG Trading diversify risks across different market and at the same time finding new opportunities The oriented marketsfor2012 – 2016period: • Malaysia and Singapore: Every year, there are tens of new projects in this area, with value summing up to billions of USD Also, this is a very potential market for sanitary ware products Moreover, due to the depreciation of Vietnam Dong, this category of luxury sanitary ware is better to export • Middle East: Middle Eastmarketisnewbutalsopotential due togrowing speed of construction Forthis market,prerequisite is passing theculture barriers The company will focus to export intermediate product ranges • LaosandCambodia: Thisis a new marketwithveryhighgrowth rate; the company will putthecheap productsinto the marketto competedirectly with China cheap products According to VIG Trading’s board of director, it has conducted research activity regarding exporting sanitary ware products to foreign countries, including Laos, Cambodia and Middle East VIG Trading currently is a large shareholder of HaoCanh JSC., one of the biggest sanitary ware factories in Thai Binh province Moreover, the Company is negotiating with a famous Spanish sanitary ware brand to OEM in Vietnam and distribute the products to the third countries In addition to sanitary ware, exporting agriculture products such as rice, pepper and cashew nuts is in preparing process owing to the good cooperation of the Company with Vietnam National Vegetable, Fruit and Agriculture Product Corporation (Vegetexco Vietnam) Diversification would help the Company increase revenue and reduce risk of concentration The Company would have chance of decreasing gradually the dependence on VIG Group as well 55 | P a g e FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 2.3.4 Enhancing financing and operation efficiency Financing efficiency Mainlyfocused onthestrategyfor cuttingfinancing costs Currentlythe loans interest rateof localbanksrange from6-7% /year(USD rate) If you canmake use of thiscredit, youwillbe able to cutbusiness costssignificantly However, tobe able to getthem youmusthaveassistance of reliable foreign partners According to themodelwhenforeignpartnersorder,theywillborrowmoney from banksat an interestrate of6% for immediate paymentto the company, this moneywill beusedforproduction purposes, thecompanywillsellat prices lower from10% to 15% thanthe normalfor customers This modelisa win-win model becauseinstead ofborrowingforproduction with interest ratesup to20% -24%, the company only discount to 10% - 15% for customers; customersonlybear6% interest rate, but they are discounted1015% additionally Operating Efficiency This refers to the reduction in operating costs including administration, human resources, reporting, monitoring etc In order to achieve this, information technology will be utilized The flow of information and reporting systems are all digitalized, thus significantly increasing operating efficiency 2.3.5 Choosing strategy on QSPM Please see next page The total score for three alternative strategies are 3.24, 3.63 and 3.38 for combining forward strategy; combining backward strategy and expanding export markets strategy, respectively The Company can apply those strategies in the next period, certainly, with a consideration of its resources The total score for three alternative strategies are 2.86; 2.81; 2.91 for combining forward strategy; combining backward strategy and cutting cost strategy, respectively The scores are all pretty high and this implies that we can apply those strategies in the next period, certainly, with a consideration of the Company’s resources Table 11 – QSPM Matrix (Please see next page) 56 | P a g e FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 Strategies Alternatives A QSPM FOR VIG TRADING 57 | P a g e Combin ing Forwar d Strateg y Combin ing Backwa rd Strateg y Expandin g Export Markets FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 - Opportunities WTO membership has given Vietnam access to both foreign markets and capital The government will in spite of the current macroeconomic woes, continue to move forward with market reforms Urban population to rise from 29% of the population to more than 50% by the early 2040s Vietnam is increasingly attracting investment from key Asian economies, such as Japan, South Korea and Taiwan Vietnam is pressing ahead with the privatization of state- owned enterprises and the liberalization of the banking sector With more than 90 million populations, half of which are in working forces, demands for goods and services in Vietnam are predicted to be on steady growth for the next 10-15 years No domestic competitor has the capability to manipulate the market VIG Trading can choose from a variety of suppliers and impose its own trading terms - Threats The economy vulnerable to global economic uncertainties - in 2011 due to substantial trade, current account and fiscal deficits Heavily-managed and weak Dong currency reduces - incentives to improve quality of exports, and also serves to keep import costs high Advances in technology also pose threat for those that are slow to adapt the latest ones and therefore left behind Loopholes and discrepancies in the integration as well as in - the enforcement of laws remain a big obstacle to doing business in Vietnam the construction industry’s real growth is anticipated to be - 4.5% in 2011, and the construction sector would reach an average growth of 5.9% y-o-y between 2011 and 2015 Competition from the foreign companies puts significant - pressure on VIG Trading Imported products from China, Thailand, Malaysia, etc The pressure from customers, most of which are dealers and distributors, on VIG Trading is on the high Many construction projects were halted because of economy recession, causing difficulties in consumption Weig ht A S TA S A S TA S AS TA S 0.08 00 16 00 16 00 24 - 00 21 - 00 21 00 07 - - - - - - - - - - - - 00 27 00 27 00 09 00 00 18 08 00 00 18 0.2 00 00 06 24 00 10 00 0.1 00 15 - - - - - - - - - - - - - - - - - - 0.05 00 15 00 0.1 00 05 0.08 00 16 00 0.0 00 24 00 00 08 10 00 00 0.2 0.2 00 00 24 30 0.05 0.07 0.05 0.05 0.09 0.06 0.08 0.05 0.03 0.05 0.03 0.08 0.1 1.00 58 | P a g e FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 - Strengths Collect data quickly to make necessary reports for business thanks to a good management system Good history of credit activity with banks owing to good business result and stable liquidity ratios Good partner relation-ship with many major manufacturers, can provide good discount policies to distributors Good international relationships and trading relationship with main suppliers The directors and head of departments can keep track the changing data daily Weaknesses Cannot take the initiative in product resources, still depends on suppliers - Financial capacity reduction due to economy recession There are not many PR and advertisement activities run by - the Company, mostly depending on available program of the manufacturers Solely focus on selling products to projects, not grasp opportunities in retail market - Be dependent on domestic market, no export activity 0.05 0.05 0.25 0.1 0.1 0.1 0.15 0.1 0.05 0.05 1.00 59 | P a g e - 15 50 10 30 - 00 00 00 00 00 00 00 00 0.1 0.7 20 30 00 00 00 00 10 75 20 20 00 30 00 10 00 10 - - - - - - 00 30 00 10 00 10 00 00 05 05 3.2 00 00 0.1 05 3.6 00 00 10 15 3.38 GROUP FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 2.4 Solutions for strategy implementation 2.4.1 Financing/credit Finance/accounting concepts considered to be central to strategy implementation: acquiring needed capital, developing projected financial statements, preparing financial budgets, and evaluating the worth of a business Some examples of decisions that may require finance/accounting policies are these: • To raise capital with short-term debt, long-term debt, preferred stock, or common stock • To lease or buy fixed assets • To determine an appropriate dividend payout ratio • To use LIFO (Last-in, First-out), FIFO (First-in, First-out), or a market-value accounting approach • To extend the time of accounts receivable; • To establish a certain percentage discount on accounts within a specified period of time • To determine the amount of cash that should be kept on hand; Some solutions that VIG Trading is about to implement in order to match with the strategies direction are as below: • Set credit limits with domestic banks for short-term working capital to finance suppliers (for material purchasing) and customers (for late payments) • Open branches or limited companies in Malaysia and Singapore to take the initiative in raising funds in foreign markets • Mobilize loans with deferred payment from other financial institutions • Shorten the circulation time of working capital for efficiency using of fund resources 2.4.2 Budget and Control Budgets are integrating methods to translate strategic plans into current actions They are the guides to action and set standards for coordinating actions to provide a basis for 60 | P a g e GROUP FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 controlling performance to see that it is in conformance with the plans Budgets are financial plans of some future periods It is common to distinguish them aseither long-term or short-term Short-term budgets normally cover a period of one year, although any other periods up to three years can be classified short-term The essence of budgeting is to put a dollar sign on an activity and freeze it But frozen budget is not practical as environment changes, which in turn affects business performance On the other hand, constant revision to budgets is not acceptable, because of the cost, effort, time and confusion involved An answer has therefore to be found to solve this problem There are four methods generally used in industry Supplementary budgets: This method is usually for budgets that cap expenditure If a department found that the original budget is insufficient, it can apply for a supplement, perhaps giving a reason to justify the request Alternative budgets: This method requires a few budgets to be done at the outset, with the most probable one being used as the operating budget The other ‘shadow’ budgets can be constructed as probable variations to the operating budget, for example: 10% below budget, and 5% above budget Flexible budgets: In this method, the original budget is used as a guide Overruns are allowed but will be considered for appraisal of management performance This form of budgeting is very common in commercial organizations Variable budgets: This is a rather complicated method Fixed, semi variable and variable costs have to be first worked out Constant changes to the budget figures are needed based on the actual results obtained 2.4.3 Marketing Countless marketing variables affect the success or failure of strategy implementation; some marketing decisions that may require to be looked at are as follows: • To use exclusive dealerships or multiple channels of distribution • To use heavy, light, or no TV advertising • To limit (or not) the share of business done with a single customer • To be a price leader or a price follower 61 | P a g e GROUP FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 • To offer a complete or limited warranty • To reward salespeople based on straight salary, straight commission, or a combination salary/commission • To advertise online or not Some solutions that VIG Trading is about to implement in order to match with the strategies direction are as below: • Change the payment terms for dealers: Allows dealers for deferred payment in to months if they accept to reduce sales discounts • Develop a showroom system for product display and increasing sales channels • Establish market research teams for each segment The market research department has to have professional expertise to understand clearly market characteristics This department should link to other departments such as manufacturing, finance and strategic planning departments to propose suitable order planning in time • Staff of business development department will take care of expanding market actions 2.4.4 Products – manufacturer • Chang the payment terms for manufacturers: Credit support for manufacturers in case dealers cannot afford payment in accordance with contract terms When dealers ask for deferred payment but manufacturers ask for payment upon delivery, company will pay for manufacturers in advance and allow dealers for deferred payment • Define reasonable product structure consistent with market demand • Research and development new high quality products • Support manufacturers in managing raw materials and inputs Recommend and supply high quality materials with reasonable price for manufacturers 2.4.5 Pricing • Promotion programs for customer’s large volume orders or periodic discount programs • Provide a price not only match the cost of the business but also match the prices of competitors 62 | P a g e GROUP FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 2.4.6 Human resources management • Plan HR needs in the short and medium term to implement the proposed strategy Focus on recruiting quality young workforce in addition to personnel training to meet the requirements of the development process • Improve employee evaluation system as a result of assignment completion for each position • Develop adequate remuneration for employees those who have ability to encourage their flexibility and creativeness with business rewards such as turnover bonuses, salary increase before periodic term, regarding promotion and named in company monthly honor golden list 2.4.7 Management Information Systems (MIS) establishment Firms that gather, assimilate, and evaluate external and internal information most effectively are gaining competitive advantages over other firms VIG Trading should build an effective management information system (MIS), and this is the most important factor in differentiating successful from unsuccessful firms The process of strategic management is facilitated immensely in firms that have an effective information system Information collection, retrieval, and storage can be used to create competitive advantages in ways such as cross-selling to customers, monitoring suppliers, keeping managers and employees informed, coordinating activities among divisions, and managing funds Like inventory and human resources, information is now recognized as a valuable organizational asset that can be controlled and managed Firms that implement strategies using the best information will reap competitive advantages in the twenty-first century A good information system can allow a firm to reduce costs For example, online orders from salespersons to production facilities can shorten materials ordering time and reduce inventory costs Direct communications between suppliers, manufacturers, marketers, and customers can link together elements of the value chain as though they were one organization Improved quality and service often result from an improved information system 2.4.8 Enhancing financing and operation efficiency Financing efficiency Currentlythe loans interest rateof localbanksrange from6-7% /year(USD rate) If you canmake use of thiscredit, youwillbe able to cutbusiness costssignificantly However, tobe 63 | P a g e GROUP FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 able to getthem youmusthaveassistance of reliable foreign partners According to themodelwhenforeignpartnersorder,theywillborrowmoney from banksat an interestrate of6% for immediate paymentto the company, this moneywill beusedforproduction purposes, thecompanywillsellat prices lower from10% to 15% thanthe normalfor customers This modelisa win-win model becauseinstead ofborrowingforproduction with interest ratesup to20% -24%, the company only discount to 10% - 15% for customers; customersonlybear6% interest rate, but they are discounted1015% additionally Operating Efficiency This refers to the reduction in operating costs including administration, human resources, reporting, monitoring etc In order to achieve this, information technology will be utilized The flow of information and reporting systems are all digitalized, thus significantly increasing operating efficiency 2.5 Suggested timeline for implementation of VIG Trading strategies (Please see next page) 64 | P a g e GROUP FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 Figure 10– Implementation Roadmap 65 | P a g e GROUP FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 CONCLUDING REMARKS Conclusions and recommendations Theory and practice have proven business strategy has a key role in the operation of enterprises in the modern economy A proper strategy is essential for VIG Trading Company on the path of integration It will help the company cope in a flexible, timely and track the changes of business environment Through business development strategy, the company will determine the correct targets, policies and measures to implement in the future Applying the actual strategy of the company's business in the coming period will be a very important task requires the commitment and contribution of all staff Limitations In terms of time restrictions, conditions and ability to study itself is limited, subject is inevitable shortcomings: • In this topic, the team does not include the fluctuations in the exchange rate between the US dollar and the Vietnam dong for implementation solutions to reduce the financial cost of capital • In this topic, the team is not considering the possibility of a price war between company’s products and the similar products imported from China • This topic does not include the possibility of financial market collapse, leading to banks cannot afford credit financing for the company 66 | P a g e GROUP FORMULATION OF BUSINESS STRATEGIES FOR VIG TRADING IN THE PERIOD OF 2012-2016 REFERENCES Strategic Management – Concepts and Cases – Thirteenth Edition (Fred R David) Nag, R.; Hambrick, D C.; Chen, M.-J,What is strategic management, really? Inductive derivation of a consensus definition of the field Strategic Management Journal Volume 28, Issue 9, pages 935–955, September 2007 Chaffee, E “Three models of strategy”, Academy of Management Review, vol 10, no 1, 1985 Lamb, Robert, Boyden Competitive strategic management, Englewood Cliffs, NJ: Prentice-Hall, 1984 Barney, J (1991) “Firm Resources and Sustainable Competitive Advantage”, Journal of Management, vol 17, no 1, 1991 Boston Consulting Group, Perspectives on Experience (Boston, MA: The Boston Consulting Group, 1974) STRATEGIC MANAGEMENT FOR SMALL AND MEDIUM ENTERPRISES By Chiew Ming Chak, MBA http://en.wikipedia.org/wiki/Strategic_management http://www.maxi-edia.com/SPACE+matrix+model+strategic+management+method 10 VIG Trading Financial Statements 2009 – 2011 11 BMI Report on Vietnam Infrastructure Q3/2011 12 StoxPlus Data on rivals companies 67 | P a g e