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CAPSTONE PROJECT REPORT BUSINESS STRATEGY PLANNING OF DHHS (VIETFOMR) DURING THE PERIOD 2011 – 2016 DU DUC HIEP HOANG ANH DUNG NGO THI KIM HUONG TA DUY SON GAMBA01.X0810 H A N O I 1 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY PLANNING OF DHHS (VIETFOMR) DURING THE PERIOD 2011 – 2016 Group Number: Student’s name: Du Duc Hiep Hoang Anh Dung Ngo Thi Kim Huong Ta Duy Son HANOI: 2011 Table of Contents INTRODUCTION .Reason for selecting the topic and the meaning of research topic Objectives and Scope of the research 2.1 Objectives of the research 2.2 Scope of the research .6 Research methodology .6 3.1 method of data collection: .6 3.2 Method of data analysis Structure of topic CHAPTER 1: RATIONALE OF COMPETITIVE STRATEGY PLANNING 1.1 .Overview of business strategy 1.1.1 Definition of strategy 1.1.2 Characteristics of business strategy 10 1.1.3 The role of business strategy with business activities 11 1.2.1 Identify mission, vision and business objectives: 12 1.2.2 Analysis business environment 13 1.2.2.1 External Environment 13 1.2.2.2 Internal environment .18 1.2.3 Business strategies 27 1.2.3.1 Cost leadership strategy 27 1.2.3.2 Differentiation strategy 27 1.2.3.3 Focus strategy 28 CHAPTER 2: ANALYSIS OF BUSINESS ENVIRONMENT AND BUSINESS BUILDING STRATEGIES FOR DHHS COMPANY 29 2.1 Overview of Company 29 2.1.1 History and development 29 2.1.2 Organizational structure and product structure of DHHS Company .31 2.2 Analysis of company business environment .34 2.2.1 Development orientation and the necessity of business strategy planning .34 2.2.1.1 Development orientation .34 2.2.1.2 Strategic demand 35 2.2.1.3 The basis for formulating strategy 36 2.2.2 Analysis of external environment .36 2.2.2.1 Macro environment 36 2.2.2.2 Micro environment .40 2.2.2.3 Analysis of External Environment by EFE Matrix .48 2.2.3 Analysis of internal environment .49 2.2.3.1 Human resource .49 2.2.3.2 Financial resource 49 2.2.3.3 Scientific and technological resource 54 2.2.3.4 Organizational culture 54 2.2.3.5 Internal Factor Evaluation Model 55 2.3.4 S, W, O, T factors Analysis 56 2.3.4.1 Strengths 56 2.3.4.3 Opportunities 60 2.3.4.4 Threats 61 Table 2.6: The competitiveness of Vietnam in 2011 and 2010 62 CHAPTER 3: SELECTION OF BUSINESS STRATEGY FOR DHHS COMPANY IN THE PERIOD 2011 – 2016 65 3.1 Developing orientation of DHHS Company in the period 2011 – 2016 65 3.1.1 Product developing orientation 65 3.1.2 Market orientation and distribution 65 3.2 Business strategic selection for DHHS Company .66 3.2.1 Strategic selection by SWOT matrix analysis 66 Table 3.1 : SWOT Matrix 66 3.2.2 Strategic selection by QSPM matrix analysis 70 3.3 Implementation planning of business strategy and development solutions during the period 2011 – 2016 73 3.3.1 Proposed solution for business strategy in DHHS Company 73 3.3.1.1 Measures of production 73 3.3.1.2 Training of human resource 74 3.3.1.3 Measures of consumer products 75 3.3.2 Roadmap for DHHS business strategy to 2016 79 CONCLUSION 81 REFERENCE .82 INTRODUCTION Reason for selecting the topic and the meaning of research topic Today, in the context of fierce competition talking place in all areas of business, financial and monetary markets, financial market meltdowns, a business to survive and thrive in the marketplace then the most important and necessary thing is monitoring company to the right path which is suitable with the frequent and sudden change of business environment to adapt highly fitness level, ensuring sustainable firm In order to achieve this, nothing more, enterprises must identify and plan an intelligent and reasonable business strategy for the business, because business strategy is the foundation, guideline of every business activity Therefore, the major problem of enterprises today, including enterprises operating in construction field – a strongly developing field due to the customer trend which is one of essential factors of human: food, accommodation and entertainment place-is building an appropriate business strategy which is suitable with its condition and capacity However, recognizing the fact from the market that enterprises operating in this sector are mainly follow a general type: supply the formed products for the entire or many construction stages or providing the material There is a need that no Vietnamese enterprise in this field has exploited That is go into production tools directly services workers In construction area, it is impossible to lack of scaffold and formwork Almost scaffold and formwork systems today are so bulky and not safety that highly affects to the “slogan” of every construction “SAFETY FIRST” Understanding this market gap and the real demand, DHHS Joint stock company has implemented in manufacture and business this typical product However, it is a brand new product of local market, hence, it is necessary to have the accurate business strategy to make need become the desired demand and consumption of customers This is the innovation of the research project “Business strategy planning of DHHS (VIETFOMR) during the period 2011 – 2016”, this research is aimed to determine the accurate way for company in this current situation Objectives and Scope of the research 2.1 Objectives of the research This topic is constructed with the purpose of research and business strategies to build and develop for DHHS stock companies in manufacturing scaffolding and formwork In addition, the implementation of business strategy research will help companies to improve the weaknesses of the current business, and help increase profits and expand markets In that spirit, the selection of the theme "Business strategy planning of DHHS (VIETFOMR) during the period 2011 – 2016" is in order to achieve the following objectives: - Analyze the impact of environmental factors to the business activities of DHHS Joint Stock Company - Identify strengths, weaknesses, opportunities, and threats from the environment - Develop an appropriate strategy for the business activities of DHHS Joint Stock Company during the period 2011 - 2016, on a limited basis, to overcome weaknesses and develop the existing strengths to improve the efficiency that the company has achieved today in order to maintain a continuous development and sustainability 2.2 Scope of the research The internal and external factors affecting business strategy of DHHS Joint Stock Company Study period: the period of 2011 – 2016 Research area: DHHS Joint Stock Company Research methodology 3.1 method of data collection: Elementary data collection: Using these methods - Methods for direct observation of activities that occur daily in the company, mainly working process, contacting with partners of the employee in the company - Interviews with leaders and employees in the company (Sales, Accounting and Administration) to understand the customers, suppliers, other partners involved in economic activities company's business and personnel policies that the company is implementing Also, can interview immediately the company's workers to understand their attitude to the company today - Interview with competitors: The sample size (because the subject was limited and analysis identified only two typical competitors of DHHS); the sampling method is convenient method - a simple sampling method based on ease of access to interview subjects) In particular, the subjects were interviewed mostly department managers and employees of the company management - Interview customers: With an average sample size (still selected by convenient method), the number of samples are distributed to customers who purchased the company's products Collect secondary data: By showing from the following sources: - The report documents the DHHS and the competitors of the company The departments provide including: Planning, Sales, Marketing Manager and Accounting office of the Company - Report of business activity in 2008 to 2010, a detailed report on factors related to the financial ratios, such as asset structure, capital structure (Accounting) - Documents on the company's partners, including suppliers, customers, lenders (Business Department) - Refer to the documentation books, textbooks as well as previous studies on the Internet 3.2 Method of data analysis Comparison and synthesis method: Comparison of achieved targets of company with achieved targets of competitors in the same condition as follow: space, time, economic contents, measurement unit, calculation method, and scale and business conditions Inductive method: Assessment of small problems, then go to more general conclusions of the issues to be analyzed SWOT analysis method: the method of key business strategies in order to find out the strengths and weaknesses within the business as well as the opportunities, risks attached to the external environment but have a strong influence to business In addition, analytical methods are also used in other matrices such as matrix main strategy These methods will be presented in the theoretical part of the development strategy for the enterprise Structure of topic The research includes chapters:  Chapter 1: Rationale of competitive strategy planning  Chapter 2: Analysis of business environment and business building strategies for DHHS company  Chapter 3: Selection of business strategy for DHHS company in the period 2011 – 2016 CHAPTER 1: RATIONALE OF COMPETITIVE STRATEGY PLANNING 1.1 Overview of business strategy 1.1.1 Definition of strategy Today there are many different definitions of strategy, underlying cause is the different conceptual system about organization in general and different approaches to strategy of organization in particular According to Johnson and Scholes, strategy is defined: “Strategy is the determination of orientation and scope of an organization in a long period, in which organization must gain advantages by combination resources in a challenging environment, to satisfy best the market demand and meet the expectation of factors involved in the organization.”  Hence, strategy of an enterprise is formed by these following questions:  Where business activity will take place in a long period? (orientation)  Which market the business activity will compete and its scope? (market, scope)  How can business activity be conducted better than the competitor? (advantage)  Which resources (skill, assets, finance, human, technology, brand …) are necessary to make competitive advantages? (resource)  What are the external factors affecting the competitive ability of enterprise? (environment) According to Michael Porter (1996), “Strategy is the creation of balance among activities of a company The success of strategy is mainly based on the implementation and combination of works The core of strategy is “choose what has not been done” Under this approach, strategy is to create the difference in competition, find and conduct what has not been done The essence of strategy is to build competitive advantage; strategy only exists in the unique activities Strategy is to build a unique position and impact a group of different activities 1.1.2 Characteristics of business strategy Together with the movement of business, strategy perspective always moves and changes to enhance its conformity with the business environment However, at any angle, in any stage, strategy still has the certain features, which reflects the nature of business strategy of enterprise The most basic features are: - Business strategy must clearly define the basic objectives should be achieved in each period and thorough in all aspects, all levels of production and business activities of enterprises - Business strategy must ensure the maximum mobilization and promotion of optimal exploitation and utilization of resources in the business (labor, capital, technique, technology…), promote advantages, and grasp the opportunity to take the competitive edge in the market - Strategy is a tool for setting up long-term goals of the business - Business strategy always has idea for successful attack on the market Strategies are planed and implemented based on the detection and use of business opportunities, the comparative advantage of the business to achieve higher economic efficiency - Business strategy clearly defined scope of business competition - Business strategy establishes a mutual relationship with the opportunities and challenges outside the company, the strengths and weaknesses of the company which created the company’s competitive edge - Business strategy is a clearly defined contribution to economical or noneconomic that the company intends to bring its shareholders In recent years, the term shareholders have actually played an important role in business strategy of each company This term includes all those who have a relationship directly or indirectly to the process of distributing the profits of the company as capital contribution to maintain the company’s operations 1.1.3 The role of business strategy with business activities Characteristic of the business environment has a large impact on the survival and development of enterprises It has created opportunities for businesses but also put the business before the new challenge It forces the business if want to survive must find a new management approach, which is the Strategic Management In 10 Construction does not need skilled workers Save the storage space, transportation fee Easy control the detail quantity quick, safe and accurate installation quick, safe and accurate installation High durability by thermal hot zinc, tube is vortexed from imported coils and welded by Robot manipulator Changeable size due to the requirement of investor From these above analysis, it is clear that the strategy that DHHS should follow in the period 2011 – 2016 is the SO strategy, make the most advantage of market to maximize the strengths which leads the cost is the focus strategy Cost is the most concern problem in the crisis period of finance Furthermore, together with the advantages of raw material, technology, DHHS has the leading factor of expense will help company reach the objective in quantity as well as revenue in the next period In order to achieve this goal, DHHS offers these following routes: Implement sale and production due to the orders to avoid over-production, costs are incurred Marketing department collects the orders of distribution in the 20th each month to set the production plan for the following month Company will be based on the order, raw material status to manufacture and deliver product for customer During the implementation, if there are any (increase or decrease) in demand, it is possible to adjust (up or down) orders of month to suit the customer needs Maintain the reasonable inventories, ensure the adequate and timely supply for market demands to avoid excessive inventory increases the capital budget and lower-quality steel Strengthen control and lower input raw material cost by seeking the traditional and reputable suppliers capable of supplying input material with competitive prices The plan to import raw materials in accordance with operational 68 production plans to ensure reserve materials reasonable, without affecting the quality of inputs, and avoiding inventory costs incurred material 3.2.2 Strategic selection by QSPM matrix analysis QSPM Matrix uses the input data from the analysis of the above steps to help the strategist decide objectively which strategy among the alternative strategies is the most attractive and worthy strategy for enterprise to chase and implement successfully to get its objectives bas e The selection strategy Criteria Weigh t Strategy SO Point Strategy ST Score Point Strategy WO Score Point Strategy WT Score Point Score The elements external Stable political environment 4 16 12 16 Industrial environment 3 12 4 3 2 1 2 6 6 Level of competition 3 9 Customer trust 2 4 8 Potential competition 2 2 3 4 Replacing product 2 4 Technology development 3 3 2 4 Supporting industry 6 GDP increase together with demand increase Global economic integration and challenges Global economic integration and strengths 69 4 Qualified and experienced leadership 8 Manufacturing process 2 Market forecast ability 3 1 1 1 Capacity 3 2 1 3 Technology 4 The active in raw material exploitation Revenue increase 4 Brand 2 Capital 3 3 2 4 Expense management ability 3 2 3 3 Service quality 12 16 12 12 Marketing activity 6 The science of organization 12 3 Qualification and experience of staff 3 12 Price advantage The elements inside Total 166   139 Based on the results of the evaluation, the preferred strategic option is: Strategy (SO): Make the most effective production capacity to lower cost of production This is leading cost strategy Improving the productivity of machinery, skilled workers will increase significantly the production of DHHS that leads the production costs per unit reduction Pursuing this strategy, DHHS can lower the production cost than competitors to create the competitive advantage in the field of production engineering construction 70 By the method of calculation, experts: Through analyzing and evaluating the opportunities, challenges, strengths and weaknesses of the DHHS in the current period and based on strategic goals of the company during 2011 -2016; after consulting with experts in the industry, with agencies manage some departments, functions and corporate leaders, authors selected by calculating some of the following strategies: SO - 1, SO - 2, ST - 1, ST - and WO selected for analysis Using quantitative GREAT matrix to select the optimal strategy for the company: Table 3.2: DHHS strategic selection – GREAT Matrix SO – Point Criteria Score Strategies ST – SO – Point Score Point Score ST – Point Score WO Point Score Weight 4=2x Benefit 0,3 50 15 40 12 20 40 (G) Risk (R) Expense 0,2 30 30 40 0,3 30 40 12 30 0,1 50 50 0,1 40 30 8=2x 3 6=2x 10=2x 11 12=2x11 12 20 30 40 12 40 40 12 30 40 30 30 30 20 9 Growing (E) Ability (A) Time (T) Total 39 38 32 35 31 Score is calculated by scoring from 10 to 50, the highest is 50 lowest is 10 (good, fair, pretty average, average and low) Based on the results of the evaluation, the preferred strategic option is: Strategy (SO-1): Make the most effective production capacity to lower cost of steel production This is leading cost strategy Improving the productivity of machinery, skilled workers will increase significantly the production of DHHS that leads the production costs per unit reduction Pursuing this strategy, DHHS can lower the production cost than competitors to create the competitive advantage in the field of production engineering construction 71 SO-2 strategy: concentrate in high quality smart scaffold production field, invest factory, expand manufacturing scale This is the centralized strategy, focus directly on serving the demand of mechanical construction products for the industrialization of Vietnam Pursuing this strategy, DHHS will enlarge the market share in production and business field of scaffold product 3.3 Implementation planning of business strategy and development solutions during the period 2011 – 2016 3.3.1 Proposed solution for business strategy in DHHS Company 3.3.1.1 Measures of production Improving access to the stable raw material extraction with reasonable prices With the input source is billet, company needs to determine the reasonable partners capable of supplying raw material with reasonable and stable price especially in the current business situation, local steel production and importing are meeting many difficulties Improve quality and diversity of products When purchasing a product or service, apart from the desired product or service satisfies an identified demand, consumers also want it to have reliability, safety and cost to meet demand less than the same products So raising the product quality is an important factor leading to the existence and development of the company Based on the inherent strengths of production technology is advanced scaffolding, company needs to maximize strengths and improve the line capacity to ensure increasing product quantity and quality Focus on technology to promote the highest possible efficiency of the strategy and lead the production costs of new product categories with high economic value Implement joint venture strategy in production with other production units to create competitive advantages, long-term development Associate to major corporations such as EFFCO, DOKA, IFS, and ZUNLIN 72 In addition, to ensure product quality right from selecting suppliers, the company must select reputable suppliers Since checking the quality of raw materials in a comprehensive way is difficult, in use only the quality of materials have qualified or not In addition, the company must focus right from product design, process planning in manufacturing, because the quality of products formed during the preparation process, production and warehousing of finished products according to the designed standards So in the production process, the company needs to implement operational measures to check product quality as well as full implementation of the steps of the production stages, at each stage of production should be a subject responsibility for the finished products Since then, the quality of the product ensures the company will be increasingly enhanced 3.3.1.2 Training of human resource Human resource is always a core issue in every area For who set out strategy, objective, operational plan, implementation and testing, control objectives and strategies Hence, in order to exploit and effectively use the human resource of company, it is necessary to build a training program The training method can be accompanied in production, operated classes in company or support staff to take the formal training classes In addition, to improve employee’s skill, company should organize seminars to exchange experiences, technical exchange seminars, continue the movement of production along with professional training, the company should implement policies to encourage and reward such as reward initiatives; enjoy savings of materials; rewards fulfill the production plan, sales plan income for the employee to motivate them to work The improvement of leadership team, managers is the key factor leading to the improvement of competitiveness This management team is involved in all business activities and impacts significantly to the efficiency of company performance The administrator must know the ingenious combination between member’s interests with Company’s interests 73 Moreover, it is necessary to plan and attract the high quality human resource: human resource planning involves forecasting the demand of company in the future of human resource and staffing to ensure the Company will have the adequate staff in time, which should be held:  Re-evaluation of the existing human resource of company  Systemization of work, analysis of each duty  Building the work and staff evaluating system  Review and codify specifically the recruitment process Develop training plan and human resource development Training process is done by these following training steps: Step 1: Identify the training needs Step 2: Plan for training Step 3: Implement training Step 4: Evaluate training 3.3.1.3 Measures of consumer products Distribution System With the goal of smart scaffolds produced by new technological process have their advantages than the old scaffolding system, company needs to build a modern distributed systems to ensure stable and sustainable development, active in the consumption based on the development of 05 distribution channels, including branch system; agent; distributor; works and export The operation mode of branch: Based on the general direction of company, branches make the task of managing local consumption, construction and development of large, loyalty customers Target customers are the joint venture construction companies, foreign construction companies and large companies Vietnam Each local establishment of the market (market surveillance) in charge of specialized areas, development of sales network and collect and analyze information In the implementation process, step by step transfer model activities of the branch to form trade monitoring service, 74 performing marketing, delivery, monitoring of sales activities in assigned market management step by step to diversify the types of activities of branches on the basis of promoting the strengths of the current branch as location, business advantage, man infrastructure investment and business trade and services Operation mode of dealers: Sale price by the company provision, on commission by selling volume, committed monthly consumption Targets are big customers with the private consuming system due to the specific products Implement this method with the dealer achieved the big average consumption, ensured the finance and non-commercial of any other product Beside the current dealers, construct others in some areas, center of potential regions with the high density of construction Join ventures with local investors in the implementation of the project wholesale markets to provide extensive product and more efficient Distributors: Select the customer with great average consumption Build each site from 01 to 02 distributors; ensure to dominate the site market The distribution mechanism built on the principle of equality with the other distribution channels; stable policies associated long-term interests of customers with the Company on the principle of mutual development 3.3.1.4 Marketing solutions Promotion in the media :Advertise in the Central Television, Hanoi Television, digital television and some local televisions Advertising time focuses on: Chinese New Year, big holidays, special events … Design PSAs on television, update and change information, new messages: design a 30-minute PSAs and introducing clip of company Make some television and radio reports with the DHHS image promotion content, focus primarily on the strengths of DHHS scaffold, company position and development scale of DHHS when completing the second investing project 75 Make television report with the topic of quality development, integration and brand protection of DHHS to broadcast on television of Hanoi and locals to promote the brand Advertise in newspapers, magazines, websites and tours: Newspaper advertising: focus primarily on big newspapers with the large readers in line with the industry sector of company to timely supply information, articles about the nature of production and business of company Advertise in local newspapers for distributors Advertise in magazines specializing in the construction field, associations, construction contractors, consumer guides, shopping and yellow pages directory, contacts and integrated quality Develop website to match the trend, ensure the e - commercial application on the company website Advertising logo, brand positively on the e-newspapers with the large view like vietnamnet, thoibaokinhte, laodong, thuongmaidientu, dantri … Billboards: Huge billboards at the top intersections, concentrates passerby The signage for the stores, agencies: supply free signage for stores, dealers, and branches Develop additional types of advertising signs at central station such as airport, train station, North-south train … Place billboards in projects under construction with content: DHHS scaffold was used (provided) for this construction This is a form of advertising offer high efficiency; confirm the reputation of DHHS scaffold products Donations and other forms of advertisements: Financial support for sport activity such as: soccer, tennis, golf, badminton, volley ball … Besides, collaboration with Hanoi University of Science and Technology as well as university of construction sector in funding for training students of the metallurgy, mechanical faculty having the aspiration and are committed to work in Company after graduation 76 Join some on air programs are audience favorites such as direct dialogue, business forum … 3.3.1.5 Solutions on financial and budget to implement strategy  Choose a reasonable depreciation form for suitable depreciation costs /product    - unit Control and reduce indirectly management costs by: Rebuilding the payroll, work norms and redundant labour Improving labor productivity in the whole company Set up plan for bonus basing on sales turnover Outsourcing unimportant work is an indirect way to increase salary Strengthening financial analysis and control of bad debts Improve fund using efficiency by: Find low-cost fund to reduce costs Restructuring to increase equity/ total assets Enhanced debts recovery and reduce inventory costs Use effectively the operating leverage: Research, evaluate and implement the system by increasing fixed assets - rate/total assets Analyze and evaluate the operations and profitability during the period to adjust in time Implementing budget strategy: To own fund for strategy implementation, DHHS announced plans to increase its charter capital in order to improve financial capability as follows: - In 2011: increase charter capital from VND 70 billion to VND 150 billion Of which, funds to invest in factories, machinery and technological equipment is VND 30 billion The remaining fund aims for production and business activities, expanding distribution network, marketing, branding and human resource training - In 2012: increase chartered capital from VND 150 billion to VND 250 billion Of which, fund to invest in factories, machinery and technological equipments is VND 50 billion The remaining aims for production and business activities, expanding distribution network, marketing, branding promotion and human resource training - It is expected that DHHS’ equity will be VND 400 billion by the end of 2015 77 3.3.2 Roadmap for DHHS business strategy to 2016 Review the DHHS strategies during the period 2011 – 2016 with three major goals: - Development of business activities in both width and depth - Expand market share and profitability - Training of human resources In order to achieve these above objectives, DHHS selection of appropriate strategies is leading cost strategy combining with the growth, integration and product diversification strategy From the result of QSPM matrix , DHHS needs to take advantages of strengths, exploit the outside opportunities to limit the threats in business and achieve the basic objectives To achieve these above objectives, DHHS need a specific roadmap including the clear function, purpose definition of each department, cost and duration of the proposed strategy Roadmap that can be summarized by the following table: Implementation time Road map Potential cost (billion VND) 1- 6- 6/2012 12/2012 Increasing chartered capital Initiative of 102.12 material Renew 320.40 technological equipment Train human 3.15 resource 78 ………… 1- 6- 6/2015 12/2015 Expand 145.20 distribution system Improve 102.40 promotion Table 3.3: DHHS Strategies roadmap The roadmap presents the most general way of strategic solutions of DHHS for each department Beside, departments is necessary to set the detail plans to implement their duties in the strategic period 2011 – 2016 CONCLUSION The theory of strategy and strategic management is really a practical model in applying analysis and determination of business strategy for DHHS Company is the period 2011 – 2016 Through the application of the canonical model of strategic management theories such as the PEST model, model year competitive forces, SWOT matrix, QSPM or the analysis of the business environment have shown the weaknesses, strengths and opportunities and challenges that DHHS will encounter during the period of this strategy From the results of qualitative and quantitative analysis, the project showed the general strategy along with implementing roadmap specifics for each stage to help DHHS determine directions to achieve the objectives of the period 2011-2016 Project also offers some forecasts about the market development in the following year as the basis for strategic planning of DHHS in particular and companies in industry in general In order to implement the long term developing strategies, the strategy that DHHS is essential to apply to stay ahead of cost, strengths, ready to take advantages of market opportunities to expand market share and profit 79 Topic gave an overview of the overall strategy of the DHHS in the period 2011-2016 This general strategy focuses on activity of the entire company from human resource training, technology innovation to improvement of marketing activity quality To have the specific vision of strategic program of each department, individuals need to have the specific project to analyze the features as well as the steps of each department in company That is the new research topic that the project figured out Along with the micro-program activities for each section, the topic “Business strategy planning of DHHS (VIETFOMR) during the period 2011 – 2016” brings the accurate strategies, programs for DHHS and is the reference for other companies inside the industry REFERENCE Vietnamese document: DHHS JSC: Report of 2008 – 2010 business years DHHS JSC: Business situation Le Van Tam, Ngo Kim Thanh, strategic management textbook, National economics university Publisher, Hanoi 2009 Nguyen Hoang Viet, strategy management textbook, The University of Commerce, 2008 Pham Vu Luan, commercial business management, Hanoi National University Publisher, 2001 Pham Cong Doan, commercial business economy, Hanoi National University Publisher, 1991 Nguyen Ngoc Hien, Business management, Labor Publisher, 2003 Pham Lan Anh, strategic management, Science and Technology publisher, 2003 Pham Thi Thu Huong, strategic management in the global economy, , Science and Technology publisher, 2002 80 10 Rudolf Gruning (2003), strategic process planning, Science and Technology publisher, 2003 11 Fred R.David, Concept review of strategic management, Statistics Publisher, 1995 12 Garry D.Smith (1994), Strategy and business strategy, Statistics Publisher, 1994 13 Micheal E.Porter, Competitive strategy - Science and Technology publisher, 1996 81