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Business strategy Viglacera AAC joint stock company stage 2011-2015 Dang Minh Tam- Team leader Vu Thanh Nhung Le Thi Hoai Thu Nguyen Trong Nghi Page Business strategy Viglacera AAC joint stock company stage 2011-2015 GRIGGS UNIVERSITY GOLBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Business strategy of Viglacera Autoclaved Aerated Concrete joint stock company stage 2011 to 2015 Dang Minh Tam- Team leader Vu Thanh Nhung Le Thi Hoai Thu Nguyen Trong Nghi HANOI, 2011 Page Business strategy Viglacera AAC joint stock company stage 2011-2015 Acknowledgement We owe profound indebtedness to many people for their invaluable help during the conduct of our research Initially, We would like to express our deepest gratitude to our supervisors from Griggs University and Vietnamese Universities for their helpful lectures and guidance Owing to them, we have gained a lot of precious knowledge during our study at Grigg University As well, we send our sincere thanks to examination committee for their practical recommendations to the thesis Last but not least, we are grateful to our leaders and collegues at Viglacera Autoclaved Aerated Concrete Joint Stock Company as well as our classemates for their support , helpful suggestion and constant encouragement during our data collection Without their help, we could not complete this paper Page Business strategy Viglacera AAC joint stock company stage 2011-2015 TABLE OF CONTENT VERIFICATION AND ASSESSMENT OF VIGACC ACKNOWLEDGEMENT TABLE CONTENT LIST OF TABLES AND DIAGRAMS INTRODUCTION Overview and importance of the study Objectives and scope of the study Methodology of the study Structure of the study CHAPTER THEORETICAL BACKGROUND ON THE Page 3 11 11 12 13 13 DEVELOPMENT OF THE BUSINESS STRATEGY 1.1 KEY CONCEPTS 1.1.1 Theories on business strategy 1.1.1.1 ”Strategy” definition 1.1.1.2 Principles of a strategy 1.1.1.3 Roles of business strategy 1.1.1.4 Types of business strategy 1.2 THE PROCESS OF PLANNING BUSINESS STRATEGIES 1.2.1 Analysis of effects from external factors 1.2.1.1 Macro-environmental analysis –PEST model 1.2.1.1.1 Polictical and legal factors 1.2.1.1.2 Economical factors 1.2.1.1.3 Socio-cutural factors 1.2.1.1.4 Technological factors 1.2.1.1.5 Geographic factors 1.2.1.2 Micro-environmental analysis-Micheal Porter’s five 1.2.3 forces model 1.2.1.2.1 Vendor's pressure analyst 1.2.1.2.2 Threats of substitutes 1.2.1.2.3 Threats of new entrants 1.2.1.2.4 power of customers 1.2.1.2.5 Intensity of competitive rivalry Analysis of internal factors 1.2.3.1 Inter-enterprise environment 14 14 14 14 14 15 15 17 17 17 18 18 19 20 20 20 21 21 21 22 22 23 23 Page Business strategy Viglacera AAC joint stock company stage 2011-2015 1.2.3.1.1 Analysis of production performance and technological capacity 1.2.3.1.2 Analysis of Marketing competence Analysis of human resources of Viglacera AAC, 1.2.3.1.3 JSC 1.2.3.2 Enterprise Financial capacity 1.2.3.2.1 Solvency 1.2.3.2.2 Asset structure and financial resources 1.2.3.2.2 Finacial management and allocation 1.3 TOOLS TO DEVELOP A STRATEGY 1.3.1 External Factor Evaluation Matrix (EFE) 1.3.2 Internal Factor Evaluation Matrix (IFE) 1.3.3 External-Internal Matrix (IE) 1.3.4 Competitive Profile Matrix (CPM) 1.3.5 SWOT Matrix 1.3.6 Quantitative strategic planning matrix (QSPM) CHAPTER 2: ANALYSIS OF BUSSINESS ENVIRONMENT OF VIGLACERA AAC, JSC 2.1 GENERAL INTRODUCTION ABOUT VIGLACERA AAC, JSC 2.1.1 The process of formation and development of the company 2.1.2 The organizational structure of the Company 2.1.3 Vision, mission, core values of the Company 2.1.4 The functions and business tasks 2.1.5 The process of manufacturing technologies 2.1.6 Characteristics of business activities 2.2 ANALYSIS OF EFFECTS FROM EXTERNAL FACTORS 2.2.1 Macro-environment (PEST model) 2.2.1.1 Analyzing the impact of political- law factors 2.2.1.2 Analyzing the impact of economic factors 2.2.1.3 Analyzing the impact of sociocultural factors 2.2.1.4 Parse technology element's impact 2.2.1.5 Parse geographic factor's impact Conclusion 2.2.2 Micro-Environment (Michael E Porter’s five forces model ) 2.2.2.1 Analyze the Power of supplier Page 23 24 24 24 24 24 24 25 26 26 27 28 29 30 32 32 32 32 32 32 34 36 38 38 38 39 39 40 40 41 42 42 Business strategy Viglacera AAC joint stock company stage 2011-2015 2.2.2.2 2.2.2.3 2.2.2.4 2.2.2.5 2.3 Analyze the Threats of subsitute products Analyze the Threats of new entrants Analyze the Power of customers Analyze the Intensity of competitive rivalry Conclusion External Factor Evaluation Matrix (EFE) ANALYSIS OF EFFECTS FROM EXTERNAL FACTORS 2.3.1 Analysis of the internal environment of Viglacera AAC, JSC Analysis of production performance and technological 2.3.1.1 capacity 2.3.1.2 Analysis of Marketing competence 2.3.1.3 Analysis of human resources 2.3.2 Analysis of financial capacity of Viglacera AAC, JSC 2.3.2 Solvency 2.3.2.2 2.3.2.3 Asset structure and financial resources Finacial management and allocation Conclusion Internal Factor Evaluation Matrix (IFE) Internal-External Matrix (IE) Competitive Profile Matrix ( CPM) CHAPTER 3: SELECTION OF STRATEGIC SOLUTIONS FOR VIGLACERA AAC, JSC STAGE 2011 TO 2015 3.1 STRATEGY AND VISION OF THE COMPANY 3.1.1 Vision 3.1.2 Strategy 3.2 SWOT MATRIX FOR VIGLACERA AAC, JSC 42 43 43 44 47 48 51 51 51 54 63 64 67 68 68 68 71 72 72 73 73 73 73 73 3.2.1 3.2.2 3.3 Summary of SWOT matrix for the company Formation of options SELECTION OF STRATEGIC OPTIONS FOR THE 73 76 3.4 COMPANY 3.3.1 Selection of strategic options through QSPM Matrix 3.3.2 The schedule on implementing strategic options STRATEGIC SOLUTIONS OF VIGLACERA AAC, JSC Page 78 78 80 80 Business strategy Viglacera AAC joint stock company stage 2011-2015 3.4.1 Project sales 3.4.2 Adversting 3.4.3 Joint venture 3.5 RECOMMENDATIONS AND SOLUTIONS Conclusion Reference list 80 80 81 81 82 83 LIST OF TABLES AND DIAGRAMS No Names of tables and diagrams Page Page Business strategy Viglacera AAC joint stock company stage 2011-2015 Figure 1.1: The process of planning a strategy Figure 1.2: P.E.S.T Model Figure 1.3: Analysis of M Porter’s five forces Model Figure 1.4: Model of developing a strategy Figure 1.5: Diagram of Internal-external Matrix Figure 2.1: A picture of Viglacera AAC, JSC Table 2.2: The structure of joint-stock capitals at 31/12/2010 Figure 2.3: Outline of production technology Figure 2.4: Approximate analysis of ingredients 17 18 21 25 28 32 34 35 36 10 Figure 2.5: Management apparatus map 37 11 12 Figure 2.6: Personnel apparatus Table 2.7: Output of building materials from 2010 to 2020 Table 2.8: OEvaluate on opportunities and threats of macro 38 40 13 14 15 16 17 18 19 20 21 22 23 24 25 26 environment.Opportunities- Threat Table 2.9: Companies with the same products in Vietnam Table 2.10: Producers of Autoclaved Aerated Concrete in Hanoi and nearby provinces Table 2.11: Evaluation on five forces Table 2.12: OEvaluate on opportunities and threats of micro environment.Evaluation on opportunities and threat Table 2.13: EFE Matrix Table 2.14: Production output of the company in two years 2010 and 2011 Table 2.15: Types of products Figure 2.16: The image of the product Figure 2.17: Image of the products used in Coteccons – Cau Giay Table 2.18: System of distributors of Viglacera AAC JSC Table 2.19: Summary table to compare AAC and burntbrick Table 2.20: Summary table to compare the cost when using AAC and burnt brick Table 2.21: Summary on the use of AAC in regions in Viet Nam Page 41 45 46 47 47 48 51 52 53 54 56 58 59 61 Business strategy Viglacera AAC joint stock company stage 2011-2015 27 28 29 30 31 32 33 34 35 36 Table 2.22: Forecast about demands for AAC from 2010 to 2020 Table 2.23: Summary table of AAC usage at present Table 2.24: Balance sheet of Viglacera AAC, JSC in the first and second quarters of 2011 Table 2.25: Business results of Viglacera AAC, JSC in the first and second quarters of 2011 Table 2.26: Financial indicators of Viglacera AAC, JSC Table 2.27: Internal factor eveluation Matrix IFE Table 2.28: Internal-external matrix IE Table 2.29: Competitive profile Matrix CPM Table 3.1 : Summary table of SWOT Matrix Table 3.2: QSPM Matrix 62 62 63 66 67 71 72 72 73 79 GENERAL INTRODUCTION Overview and importance of the study: On the way to realize its pledge from World Trade Organization entry, Việt Nam has opened retail outlets Therefore, the country needs to develop and consolidate its commercial infrastructure appropriately as well as promote competitive advantages and ability for enterprises The development of Vietnamese building materials has met the increasing demands of society Experts define that it is high time for the field to develop sharply as the needs for building materials will raise rapidly in the next few years Moreover, manufacturing expansion of baked materials will encounter obstacles such as Government policy on production restriction and shortage of lands Page Business strategy Viglacera AAC joint stock company stage 2011-2015 The latest production technologies have been greatly advanced, which enables producers to make light materials with ratio 0.3-1.2, foamed concrete and aerated concrete with compressive strength 4-10 MPA These products are popularly applied in multi-storeyed construction projects because of their features such as lightness, durability and good appearance Decision No 121/2008/QĐ-TTg on 29/8/2008 about approval of General planning the development of Vietnamese building materials until 2010 stated a route: the production volumes of non-baked materials as a replacement for baked ones would occupy 10-15 % in 2010; 20-25% in 2015 and 30-40% by 2020 Some strong points of aerated concrete: - Light weight - Good sound-proof - Good heat insulation and energy saving - High accuracy - High rigidity - Resistance against many insects - Environment friendly Due to the global economic recession and crisis which greatly affected Vietnam in 2011, Vietnamese Construction faced a lot of difficulties 2011 could be regarded as the year of frozen real estates Government finance tightening, unsound policies and real-estate bubbles worried investors and consumers of indeed needs Non-baked brick is a new product line with many technological and quality advantages and brings the country benefits of environment and resources However, it is hard to popularize the product in the market as consumers not really know about the new product and have been familiar with traditional bricks for a long time Because of a changeable business environment, with knowledge about business management and market opportunities, our group No of Class X0510 decided to choose this topic We aim to analyze and select business strategies, give solutions to Page 10 Business strategy Viglacera AAC joint stock company stage 2011-2015 CHAPTER 3: SELECTION OF STRATEGIC SOLUTIONS FOR VIGLACERA AAC JSC STAGE OF 2011 TO 2015 3.1 STRATEGY AND VISION OF THE COMPANY 3.1.1 Vision: - Become the company which manufactures and distributes top AAC which is good at quality, quantity, service and type of products in Vietnam 3.1.2 Strategy: - Large scale and gathered production, high quality products, lowest cost, alternating refined brick which causes environmental pollution and resource destruction, land for agricultural cultivation, bringing true value to customers and profit to shares holders - Target: Output 400,000 cubic meter in 2013 3.2 SWOT MATRIX FOR VIGLACERA AAC, JSC 3.2.1 Summary of SWOT matrix for the company Table 3.1: Summary of SWOT matrix SWOT Strength (S) Weakness (W) S1: Modern and synchronized production line, high production capacity, low production cost W1: Low rate of equity, high debt indicator (financial lever indicator 6.6), high financial cost S2: Production management team and direct employees are young but have years of experience in production W2: Human management is not effective and modern Low quality labor force W3: Low capacity distributor system Page 73 Business strategy Viglacera AAC joint stock company stage 2011-2015 management and sales S3: HUD Group has committed to use products within the company W4: Inappropriate considerable and invested research and development W5: Under state management of major capital S4: Traditional relationship with other construction W6: Inappropriate market groups S5: Outstanding features and research and investigation W7: Inappropriate durable products and S6: Near Hanoi where very communications large amount of products is advertising consumed buildings for high S7 : Famous and prestigious brand Opportunity (O) Solution group SO O1: Increasing demand for O1-O7+S1-S2 development of house and - Mobile capital, enhance office investment to improve O2: Refined brick is production and reduce its gradually removed price Solution group WO W1-W5+O1, O3, O7 - Raise equity and reduce borrowed capital - Co-operate with others to decline financial pressure O3: High demand from - Improve management developed countries capacity, speed up O4: Low price of domestic production, increase output, materials and reuse waste and quality - Long-term collaborate with domestic material suppliers Mobile capital cooperated, especially with from other industries Well-equipped with construction corporations O5: Approved by the advanced technology to use - Associate with professional Government on developing domestic materials and companies and enhance waste from other factories market this product research W6to expand W7+O2 O6: On the fast developed Invest production and scales area Bac Ninh-Hanoi Enhance marketing and Page 74 Business strategy Viglacera AAC joint stock company stage 2011-2015 O7: Chances to expand and O8+S3-S7 advertising products improve quantity and - Improve the sales of work, quality especially within Viglacera O8: Chances to introduce Corp and HUD as well as products to Viglacera Corp other construction Corps and HUD - Exploit the strength of brand Viglacera improve sales and Improve the sales of work Threats (T) T1: Strictly competitive with traditional refined brick T2: Gradual removal of refined brick is not well strictly controlled Solution group ST Solution group WT S1-S2+T6 W2+T5-T6 Invest to expand production, cover the North market, especially Hanoi market - Enhance and build up a delicate and effective management system, increase production T3: Customers’ habit has not - Improve system of image Minimize production cost changed advertisement and enhance - Upgrade quality control T4: Real estate situation has marketing system, stabilize product not improved Well-equipped with quality T5: Trend to increase price available technology of input reduce consumption materials T6: High cost of product T7: Difficult capacity financial Improve capacity to - Build of culture up Improve production capacity T8: Customers have not T1-T4, T8+S3-S7 trusted the products Advertise the benefits of AAC so that people use AAC instead of refined brick corporation production T4+W1-W5 Enhance financial administration to reduce borrowed capital and reduce financial cost Improve marketing and - Weak distribution advertising of products consumption Page 75 and Business strategy Viglacera AAC joint stock company stage 2011-2015 Mobile capital from joint ventures, especially construction corporations 3.2.2 Formation of options: From SWOT model we can chosse some solutions as: Group SO: - Invest to expand production and scales - Improve the sales of work Group WO: - Mobile capital co-operated, especially with construction corporations - Enhance marketing and advertising products Group ST: - Improve production capacity - Improve marketing and advertising of products Group WT: - Improve production capacity - Mobile capital from joint ventures, especially construction corporations + Promote project sales, especially inside Viglacera and HUD Group On 12/1/2010, Prime Minister issued Decision No 55/QĐ-TTg on founding Vietnam Housing and Urban Development Group (HUD) Following it, Viglacera corporation is a subsidary limited company of the group In 2010, the group implement pledges to consume products among subsidaries This is a good advantage for the corporation who are the only subsidary to produce autoclaved aerated concrete bricks as the main business of the group is construction On the basis of inter-HUD comsumption promise and products with clear origins, project sales will be a potential channel + Promoting mobiliaztion of joint venture capitals, especially constrcution companies: In case of difficulties in capitals and product consumption, the company should: - Cooperate with construction companies in financial support, product consumption, production expansion and capacity raise to reduce costs Page 76 Business strategy Viglacera AAC joint stock company stage 2011-2015 - Cooperate with institutions and universities such as University of Civil Engineering and Hanoi Architectural University, and design consulting companies to give strong points and technical parameters to orient projects right from the begining + Improving production capacity: Promote equipments and advanced production technology to strengthen production, capacity and quality, use waste materials from factories to reduce costs; Exploit international advanced technological line to raise capacity and stabalize quality and reduce physical deterioration + Promoting marketing and advertising products: when new products are sold in the market to replace traditional baked bricks, The company needs to promote marketing and advertising products by giving their strong points, reduced costs as well as government guidelines in means of mass media Moreover, the company should make consumers aware of negative impacts on environment and natural resouces if use baked bricks + Investing in manufacturing expansion: when the company designs space for raising capacity from 200.000m3 to 400.000m3 / year It will help to reduce costs if raise capacity by expanding the firm’s scale This means that the company will have a lot of advantages in the price competition However, five solutions actually only three solutions are independent of each other: - Solution 1: Marketing ( Including: Promote project sales, Promoting mobiliaztion of joint venture capitals, especially constrcution companies and Promoting marketing and advertising products) - Solution : Improving production capacity - Solution 3: Investing in manufacturing expansion Page 77 Business strategy Viglacera AAC joint stock company stage 2011-2015 3.3 SELECTION OF STRATEGIC OPTIONS FOR THE COMPANY 3.3.1 Selection of strategic options through QSPM Matrix: N o 10 11 12 13 14 15 Key factors External factors Stable political situation Government encourage the development of non-baked bricks High growth rate of economy Government policies High rate of inflation Frozen real estate Increasing demands of society Advantageous natural conditions Habits of consumers Environment friendly and modern technology Fierce competition of baked bricks Weak competitors Big discounts for orders with large volumes Serve customers every time and every where Price pressure from customers weights Strategic options Solution1 Solution2 Solution3 AS TAS AS TAS AS TAS 0.05 0.05 0.075 0.105 0.105 0.105 0.075 0.05 0.075 0.030 0.06 0.06 0.09 0.035 3 0.105 0.135 2 0.07 0.09 1 0.035 0.045 0.06 0.03 0.03 0.03 0.12 2 0.02 0.06 0.03 0.03 0.1 0.05 0.1 0.14 0.06 2 0.07 0.04 2 0.07 0.04 0.08 0.04 0.02 0.08 0.04 0.02 0.05 0.1 0.1 0.025 0.035 0.025 0.045 0.015 0.010 0.030 0.025 0.035 0.020 0.020 0.020 0.025 Page 78 Business strategy Viglacera AAC joint stock company stage 2011-2015 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 0.025 many choices from suppliers 0.1 0.075 0.025 Many companies join the outlet owing to Government policy 0.05 0.05 0.025 Substitute products 0.05 0.05 Internal factors 0 Production technology 0.035 0.105 0.14 0.035 Products 0.105 0.14 0.035 Production management 0.07 0.14 0.030 Marketing activities 0.12 0.06 0.025 Distribution chain 0.1 0.05 0.045 Brand 0.18 0.09 0.040 Media 0.16 0.08 0.040 Support distributors 0.12 0.08 0.035 Organization structure 0.07 0.14 0.035 Human resources 0.07 0.14 0.040 Relationship with authorities 0.12 0.08 0.025 Solvency 0.05 0.075 0.030 Capacity to manage assets 0.06 0.09 0.040 Capacity to manage capitals 0.08 0.12 1.000 Total weighted score 2.86 2.475 3.3 SELECTION OF STRATEGIC OPTIONS FOR THE COMPANY 0.075 0.05 0.05 0.105 0.07 0.07 0.03 0.025 0.045 0.04 0.08 0.105 0.14 0.08 0.075 0.12 0.16 2.185 No Key factors External factors Stable political situation weights 3.3.1 Selection of strategic options through QSPM Matrix: Project sales Strategic options Improving Joint Production Marketing productio venture expansion n capacity AT TAS AT TAS AT TAS AT TAS AT TAS Page 79 Business strategy Viglacera AAC joint stock company stage 2011-2015 10 11 12 13 14 15 Government encourage the development of non-baked bricks High growth rate of economy Government policies High rate of inflation Frozen real estate Increasing demands of society Advantageou s natural conditions Habits of consumers Environment friendly and modern technology Fierce competition of baked bricks Weak competitors Big discounts for orders with large volumes Serve customers every time and every where Price pressure 12 12 12 12 3 9 9 12 6 12 9 4 16 12 16 3 12 12 6 2 4 4 16 16 16 4 12 16 8 16 4 16 16 12 8 3 9 6 12 12 6 3 12 6 2 4 8 Page 80 Business strategy Viglacera AAC joint stock company stage 2011-2015 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 from customers many choices from suppliers Many companies join the outlet owing to Government policy Substitute products Internal factors Production technology Products Production management Marketing activities Distribution chain Brand Media Support distributors Organization structure Human resources Relationship with authorities Solvency Capacity to manage assets Capacity to manage 6 6 4 4 2 4 4 0 0 12 3 9 12 6 6 12 4 16 16 8 4 12 12 12 3 3 9 4 12 12 3 9 2 6 1 3 3 9 6 6 6 12 6 12 12 4 16 12 16 8 3 6 9 3 6 12 3 6 12 Page 81 Business strategy Viglacera AAC joint stock company stage 2011-2015 capitals Total weighted score 305 298 260 243 219 Table 3.2: QSPM Matrix As can be seen from the table above, the first option has the highest total weighted score (2.86 points) Therefore, this option- Promoting Marketing is selected as a strategic option for Viglacera AAC, JSC Option – Improving production capacity: This is a core strategy to create products with high quality, big capacity and low costs so as to compete with rivals This depends on the internal factors of the firm The score for this option is 2.47 points Option 3- Investing in production expansion: This will help to enlarge the company’s scale, reduce common costs and create low prices However, due to happening slow product consumption, frozen real estate and Government financial tightening, investment in production expansion is not suitable in this period This option gets the lowest score with 2.18 points Conclusion: From fore going analysis, the company should select option from the beginning of the period As can be seen from the table above, the first option has the highest total weighted score (305 points) Therefore, this option- Promoting project sale, especially inside HUD Group is selected as a strategic option for Viglacera AAC, JSC to bring the greatest amount of profits in a short time Option – Promoting marketing activities Advertising non-baked products to make consumers aware of benefits from using them instead of baked bricks which pollute environment, destroy natural resources, and go against Government orientation Moreover because non-baked brick is a new product in the Vietnamese market, advertising is needed to popularize the product The total weighted score of this option is quite high with 298 points Option – Joint venture: Facing financial and sale difficulties, the company needs to cooperate with construction companies They will help the company with finance and Page 82 Business strategy Viglacera AAC joint stock company stage 2011-2015 consume its products as the products are suitable to their projects which needed large volumes The score the option gains is 260 points Option – Improving production capacity: This is a core strategy to create products with high quality, big capacity and low costs so as to compete with rivals This depends on the internal factors of the firm The score for this option is 234 points Option 5- Investing in production expansion: This will help to enlarge the company’s scale, reduce common costs and create low prices However, due to happening slow product consumption, frozen real estate and Government financial tightening, investment in production expansion is not suitable in this period Consequently, this option should be moved to the ending of 2013 This option gets the lowest score with 219 points Conclusion: From foregoing analysis, the company should select option 1,2,3,4 from the beginning of the period, and option is left to the ending of 2013 3.2.2 The schedule on implementing strategic options: Table 3.3: The schedule on implementing strategic options 3.2.2 The schedule on implementing strategic options: Table 3.3: The schedule on implementing strategic options No No Option 2011 the implementation schedule 2012 2013 2014 2015 2011 the implementation schedule 2012 2013 2014 2015 Promote project sales Advertising Joint venture Option Project sale Marketing Joint venture Improving production capacity Investing in production Page 83 Business strategy Viglacera AAC joint stock company stage 2011-2015 expansion 3.4 STRATEGIC SOLUTIONS OF VIGLACERA AAC, JSC 3.4.1 Promoting inter-company project sales (Promoting project selling channel, especially inside HUD Group) - Obtaining chances to sell exclusive products to promote competitive advantages when subsidiaries in the Group pledges to use internal products; Employing marketing measures to advertise and consult, using Granite facing-bricks, minimizing mistakes during construction, and using the company’s products to access the current and upcoming real estate projects The target for this channel is to reach 80 % of the volumes and follow the schedule as planned above 3.4.2 Adversting: - Promoting marketing activities, researching the outlet, and advertising image of Viglacera autoclaved aerated concrete bricks as well as high-quality products in projects, offices or condominiums - Making consumers aware of benefits from using Viglacera autoclaved aerated concrete bricks such as: reduced costs for the whole project, good services, sales off and environment friendly; at the mean time, suggesting that they should implement the schedule of the Government - Advertising in mass media, and putting advertising signals at cross-roads, highways, bus stations and airports - Building a consulting group of designing model rooms in showrooms, boards of project management, and catalogue; Collecting customer information; Grasping trends among consumers - Participating in customer conferences of the Group - Accessing projects since their designing and cost estimating steps; appointing a staff to follow and take charge of the projects - Giving clear and detailed instructions on specifications of building autoclaved aerated concrete products to project builders - Giving clear and detailed instructions on specifications of protecting and maintaining products for consumers; sales off or enclosing sales with specialized mortar Page 84 Business strategy Viglacera AAC joint stock company stage 2011-2015 3.4.3 Promoting Financial mobilization and joint venture - As borrowed capitals occupies a high percentage, the Company needs to raise its equity to avoid financial risks, especially in this period Consequently, the company should take advantage of being a Viglacera member of HUD Group which is powerful state-owned Group with great financial potentials to cooperate with construction companies such as Vinaconex or Hanoi Construction Company 3.5 RECOMMENDATIONS AND SOLUTIONS Government needs: - Set up a synchronous policy on development of environment-friendly building materials - Follow up Decision No 121/2008/QĐ-TTg on 29/8/2008 and strictly implement the decision for Vietnamese and global environment and natural resouces - Appoint an official (may come from Ministry of Construction) to control the planned schedule - Have detailed plans on the development of building material areas in each province to ensure good management, protect environment, and utilize local material sources and labor forces - Found centers of researching and developing building materials which ensure environment protection such as energy saving and environment friendly - Set up training centers, linked with universities which have relevant majors to create high-quality human resources serving the development of green building materials - Attach researches to reality as well as create a close relationship between scientists and real production to focus on developing high-quality building materials - Regularly educate and check the implementation of the schedule Popularize the schedule on gradual elimination of baked materials and encouragement of using nonbaked ones in mass media - Not license construction of baked brick factories which pollute environment, destroy natural resources and invade agricultural land Conclusion Page 85 Business strategy Viglacera AAC joint stock company stage 2011-2015 Basing on theories on business strategy and analysis of Viglacera AAC, JSC’s situation through collected data and information, we can assess the company through matrixes such as EFE, IFE, CPM and SWOT to define strengths, weaknesses, opportunities and challenges Analyzing internal and external factors along with using SWOT matrix, strategic options of QSPM matrix are formed Researchers evaluate options and select the best ones for the company, as well as give solutions to carry out those options This aims to turn the company into leading producer and distributor of non-baked bricks in Vietnam, bringing benefits to customers and profits to shareholders With this topic, the researchers would like to use their own business knowledge to contribute to the success and sustainable development of Viglacera AAC, JSC, so as to obtain the common target During the time of researching theories and analyzing the real state of Viglacera AAC, JSC, we received a lot of encouragement and support from Griggs lecturers and colleagues at Viglacera AAC, JSC And we are very grateful for this Nonetheless, developing and implementing competitive strategies is very new in Vietnam Especially, applying these strategies into the real situation of Viglacera AAC, JSC- a new company with new products would encounter some expected matters In addition, due to limited time and competence, the research can not avoid some certain limitations and subjectiveness Consequently, the researchers expect possible suggestions from readers to make the study more practical and perfect REFERENCE LIST No Reference Documents Garry D Smith, Danny R Arnold, Boby R Bizzell (2007), Business Strategies and Tastics, Publisher of Society and Labor Nguyen Hoa Khoi and Đong Thi Thanh Phuong (2008), Strategy Management, Page 86 Business strategy Viglacera AAC joint stock company stage 2011-2015 Statistical Publishing House Associate Dr Nguyen Thi Lien Diep Master Pham Van Nam (1999), Business Strategies and Policies , Statistical Publishing House Lectures of Griggs Department of business management – Hanoi National University Summary reports 2010, 2011 and other documents of Viglacera Autoclaved Aerated Concrete Joint Stock Company Michael E Porter (1996), Competitive strategies, Publisher of Science and Technology Arthur A Thompson, Jr & A.J.Strickland III (1997), Strategic Management7 Concept and Cases, The McGraw-Hill Companies, Inc Rowan Gibson (2002), Rethinking the Future , Vu Tien Phuc, Duong Thuy, Phi Hoanh Publisher of Youths, Ho Chi Minh City Fred R David (2000), Outline of Strategic Management, Statistical Publishing House Institute of management research and training (2007), Developing and 10 Implementing Business Strategies – A Way to Success, Publisher of Society and Labor Việt Phương (1999), Doctrines on Market Economy, Publisher of Science and 11 Technology, Ha Noi Data and documents of Viglacera Autoclaved Aerated Concrete Joint Stock 11 Company Page 87