The necessity of the subject
The integration into the World Trade Organization (WTO) has intensified competition between domestic and foreign enterprises, posing significant challenges for businesses operating within a market-driven economy To ensure sustainable growth, it is essential for companies to develop a comprehensive business strategy prior to commencing operations Many Vietnamese enterprises originated in a centrally planned economy and are now adapting to the rules of a dynamic and competitive global market Therefore, finding effective strategies for sustainable existence and development is crucial for their success.
Nghe An PetroVietnam Construction Corporation (PVNC) is a reputable player in the petroleum sector, establishing a strong presence in the regional market The corporation's diversified business strategies have led to impressive annual growth rates, achieving approximately 200% in output, revenue, and profit.
An enterprise benefits from its resources and brand recognition; however, without an effective annual business strategy, it risks losing competitiveness, which can lead to poor performance and potential bankruptcy To address these challenges and sustain its growth in alignment with the evolving petroleum sector, PVNC must promptly develop an appropriate strategy Consequently, Group 10 has chosen to focus on the topic of "business strategy construction of PVNC for the period of 2010 – 2015."
Purposes of the study
To analyze factors impacting on business activities of PVNC, then construct business strategy within the period of 2010-2015, and propose functional strategies and concrete solutions on strategy selection.
Object and scopes of the study
Study object is PVNC which belongs to PVC with trading sectors of projects construction, property project investment.
Methods of the study
This study employs a qualitative research methodology, utilizing techniques such as observation, interviews, and group discussions The gathered primary and secondary data are synthesized, analyzed, and compared to assess the business environment and operational conditions of PVNC.
Secondary data is collected from: PVNC, PVC, PVN, Construction ministry, Planning and Investment Department, Nghe An statistical agency, papers and Internet; website of Nghe
Primary data is collected by exchanging, working and interviewing leading cadre in the corporation, information dissemination board of PVNC, financial board, planning economic board of PVNC.
Structure of capston project report: 3 chapters
Chapter 1: Theoritical background on business strategy construction
Chapter 2: Analysis of business environment and internal environment of PVNC
Chapter 3: business strategy selection for PVNC within the period of 2010 – 2015 and solutions for execution
Concepts and role of business strategy
The place where enterprise is trying to reach in long term
Enterprise must compare within a certain market with business activities on such market.
Enterprise must operate more effectively than competitive opponents on such markets
Resources (skill, asset, finance, relations, technical capacity, equipments) must be available to compete.
External environmental factors impact on competitiveness of enterprise.
Which values and expectation do powerful individuals in and out of enterprise need?
Strategy plays a crucial role across various sectors, particularly in business, where multiple approaches exist The traditional view defines business strategy as a long-term plan aimed at achieving organizational goals Renowned management researcher Alfred D Chandler articulated that strategy involves setting fundamental long-term objectives and coordinating activities while allocating necessary resources to achieve them This perspective emphasizes strategy as a creative process that enables enterprises to establish their own goals, develop actionable plans, and allocate appropriate resources While this traditional approach provides clarity in defining strategy and underscores its importance for long-term planning, it reveals limitations in adapting to the dynamic changes in today’s business environment.
Current perspectives suggest that strategy can extend beyond the expectations or implementation plans of enterprises Mintzberg posits that strategy functions as a model shaped by a continuum of decisions and actions, encompassing both deliberate and emergent strategies His framework illustrates this concept effectively.
Modern approach will help enterprise to easily cope with the changes of business environment and promote to predict of conditions for strategy implementation and evaluate values of abnormal strategy
A business strategy is an art that involves establishing long-term goals and implementation policies to create a competitive advantage for an enterprise It requires analyzing and understanding fundamental methods while planning for development in business and production A comprehensive, coordinated, and consistent approach is essential for guiding the business unit toward achieving its objectives Additionally, a successful business strategy defines the core targets of the organization, selects actionable plans, and allocates the necessary resources to meet these goals effectively.
The term of strategy is used according to three popular meanings
Firstly, general action plans and main resources implementation for reaching given targets
Secondly, target organizational programs; used resources to reach such targets, policies to manage income, using and arrangement of such resources
Thirdly, define long term targets and select operational method then allocate necessary resources to reach such given targets
1.1.2 The role of business strategy for PVNC
In response to the evolving market and rising inflation, PVNC's management must develop a strategic approach to navigate these challenges and secure a sustainable future By leveraging existing resources and capabilities, PVNC can create a business strategy that effectively adapts to long-term market changes, ensuring resilience and growth in a turbulent economic environment.
Strategic administration enables PVNC to proactively shape its future while influencing its operational environment, allowing the organization to effectively monitor and adapt to external changes.
Strategic administration fosters a shared understanding among leaders and employees about the importance of the enterprise's goals, encouraging commitment to these objectives This sense of belonging motivates them to actively support and take responsibility for all business and production activities.
Define vision, mission and targets of PVNC
PVNC aims to establish itself as a leading construction and investment corporation in the Central region, guiding its operations with a vision focused on sustainable development across all circumstances.
Mission of PVNC is to provide the market with products and services of construction and investment in housings, industrial zones…which can satisfy customers
PVNC aims to accelerate the implementation of key projects and secure contracts for new initiatives, while also investing in short-term projects to drive medium- and long-term growth The company focuses on diversifying its business sectors to generate additional employment opportunities, enhance social security, and maximize profits This strategy is designed to sustain an annual growth rate of 130% to 200% during the strategic development phase, ultimately fostering sustainable growth for the enterprise.
External environmental evaluation for PVNC
To effectively assess the external environmental factors influencing an enterprise, it is essential to consider four primary groups within the macro environment: political factors, economic factors, social and cultural factors, and technological factors.
In 2010, Vietnam's GDP grew by 6.78%, influenced by rising banking interest rates, fluctuating exchange rates, and high material and labor costs The country's stable political environment and improved legal system foster a favorable business climate, while globalization is advancing rapidly However, Vietnam's technological sector remains outdated, and environmental factors affect the efficiency of resource exploitation and the implementation of modern machinery.
Political and legal factors significantly influence business operations, with stable political conditions being crucial for enterprise success The political and legal environment affects various aspects of a business, including product offerings and operational sectors, as well as costs such as production, transportation, and interest rates Import-export enterprises, in particular, are heavily impacted by international trade policies, quotas, and protective laws that govern their activities.
+ Economic factor: economic factors can impact on enterprises because such factors are rather large then enterprise must select to realize concrete impacts; main economic influence includes:
Interest rates play a crucial role in the overall cost of capital for projects, significantly influencing product demand They determine the cost of borrowing, which directly impacts investment levels and feasibility in capital utilization strategies Understanding how interest rates affect these factors is essential for effective financial planning and project success.
The exchange rate refers to the value comparison between domestic and foreign currencies, and fluctuations in this rate can significantly affect the competitiveness of products in the international market Changes in exchange rates also influence the costs associated with importing and exporting goods and equipment.
- Inflate rate: with the inflate rate of 20% it has made economic growth slower at the same time trading risk will be high, trading prospect has become unpredictable for enterprise.
- International exchange: the change of international market will bring many investment opportunities at the same time raise competitiveness in domestic market.
Enterprises must thoroughly analyze social factors to identify potential threats and opportunities, as these factors can evolve gradually, making their impacts less immediately apparent Key social factors include living standards, lifestyle choices, consumer flexibility, career trends, population dynamics, and religious influences Understanding these elements is crucial for businesses to adapt and thrive in a changing environment.
Advanced technology is crucial for enterprises to enhance product quality and operational efficiency, directly influencing output, product features, pricing, and market competition By leveraging technological advancements, businesses can boost their competitiveness, improve capital turnover, and increase profits, thereby supporting sustainable growth Conversely, a lack of technological proficiency can diminish an enterprise's competitiveness and profitability, hindering its development Therefore, the technological factor is essential for success in business and production.
Five main factors of business environment include: power of provider, power of buyer, replaced products, competition and sector penetration barriers
The power of suppliers significantly impacts negotiation dynamics within an industry, influenced by several key factors These include the concentration of suppliers, the criticality of product quantity to their operations, and the diversity among suppliers Additionally, the cost implications of input factors and the availability of substitute suppliers play a crucial role The potential for supplier consolidation and the proportion of provision costs relative to total sector yield further underscore the importance of supplier influence in shaping market conditions.
The power of buyers significantly influences market dynamics, as it is determined by factors such as their bargaining position, the volume of purchases, and access to information Additionally, the differentiation of products, price sensitivity, and the presence of alternative options play crucial roles The concentration of customers within a sector and their motivations further impact their overall power in negotiations.
Competitive pressure from substitute products arises when alternatives can meet the same consumer demand as existing offerings Key factors contributing to this threat include the switching costs associated with adopting these substitutes, the growing trend among customers to prefer alternative options, and the comparable price-to-quality ratio that these products offer.
The competitive landscape and barriers to entry in a sector are influenced by several key factors, including the level of concentration within the industry, the challenges associated with exiting the market, and the presence of high fixed costs Additionally, added value, industry consolidation, and excess capacity play significant roles Variations in product offerings, transfer costs, brand differentiation, and the diversity of competitors further shape the competitive dynamics, along with the specific conditions prevailing in the sector.
1.2.3 Internal environmental analysis in PVNC
The financial analysis of PVNC over the past three years utilizes data from its financial reports, focusing on key metrics such as total enterprise capital, revenue, and profit This evaluation assesses the company's performance against these critical criteria, providing insights into its financial health and growth trajectory.
This article analyzes the current state of human resources at PVNC and forecasts future human resource trends It aims to identify effective management strategies to address existing challenges and optimize workforce performance moving forward.
Evaluate infrastructure and technology of PVNC whether to meet new business strategy or not.
Evaluate infrastructure and technology of PVNC whether to meet new business strategy or not.
Analysis of competitiveness of PVC compared to other competitive opponents via competitive matrix From such results we can find out adjustment solutions.
It is the matrix model to analyze Strengths, Weaknesses, and (Opportunities) and (Threats) then we will combine such factors to define enterprise strategy:
To effectively navigate the business landscape, enterprises must strategically leverage their strengths to seize opportunities, while also addressing and mitigating weaknesses to avert potential threats By combining these approaches, organizations can not only enhance their resilience but also position themselves for sustainable growth and success.
Combine S/T: enterprise will use strengths to adjust threats
1 2.4.2 Boston Consulting Group BCG matrix
The BCG matrix, developed by the Boston Consulting Group, is a portfolio analysis tool that evaluates business sectors based on relative market share and market growth rate This model, rooted in the experience curve theory, allows multisector companies to compare their operational sectors, facilitating informed decision-making regarding resource allocation By defining Strategic Business Units (SBUs) within the matrix, organizations can effectively assess and manage the transfer of resources among different sectors over time.
Vertical axis: reflects annual market growth rate.
Horizontal axis: relative market share of each SBU compared to the biggest competitive opponent (revenue of the company/revenue of the leading unit in the sector).
Round: demonstrate growth position/market share of such unit; the size of the round is in direct ratio with product revenue.
Figure 1.1: BCG matrix Positions of rounds in each square are shown as follows:
Situation and Operating results from 2009 to 2011
II Financial criteria Dong billion
3.1 Pre-tax profit Dong billion 30.46 100.91 150.00
3.2 After-tax profit Dong billion 22.85 75.68 112.50
4 State budget payable Dong billion
EQUIPMENT BOARD TECHNICAL AND SAFETY BOARD
NGHE AN INVESTMENT AND TOURISM JOINT
MECHANIS SHIPPING JOINT STOCK COMPANY
- Improvement of MMTB execution capacity
Payment in terms Dong billion 26,83 38,07 29,37
Average income Million/person/ month 3,10 4,51 5,40
Training performance Turn of people 226,00 265 556
In three recent years, business results and financial situation of the corporation have been constantly improved a) Financial situation:
No Explanation Code Year 2009 Year 2010 Year 2011
From the synthesis table, it is evident that PVNC's revenue has consistently risen from 274.3 billion dong in 2009 to 1,031.6 billion dong in 2011, while post-tax profit surged from 22.8 billion dong to 112.5 billion dong during the same period The operating results for the first nine months of this year highlight PVCN's creativity and excellence, with productivity estimated at 640.5 billion dong, representing a 132.3% increase compared to last year Revenue is projected at 1.031 trillion dong, marking a 120.2% growth, and profit is estimated at 112 billion dong, a 37.5% increase from the previous year It is important to note that as a corporation operating in construction and real estate, revenue and profit are typically recognized in the latter months of the year Additionally, rising raw material costs and higher bank interest rates often lead to reduced profits despite increased revenues.
PVNC is currently focusing its resources on advancing three key projects, with a total investment exceeding 1,300 billion Dong, aimed at handing over to investment owners within this year These projects include the accommodation for management and operational staff at the Vung Ang thermoelectric plant, upgrading technology to enhance the capacity of the 12/9 PetroVietnam Cement factory to 1,500 tons of clinker per day, and the development of apartments, attached houses, and general services at the Truong Thi petroleum site.
Apart from above, part of other profits are obtained from financial investment and projects owned by the Corporation – investor.
In challenging economic times, securing stable capital is crucial for any enterprise PVCN has successfully implemented innovative capital mobilization strategies, leveraging various resources and borrowing from credit organizations, personnel, and partners This approach aims to invest in production, enhance business administration, improve labor quality, and proactively manage construction raw materials in anticipation of market fluctuations, exemplified by their acquisition of a majority stake in the 12/9 PetroVietnam Cement factory.
PVNC is set to issue 50 million shares to boost its charter capital by 500 billion dong, despite the challenging conditions in the financial and monetary markets, as well as the subdued activity in the stock and real estate sectors This move underscores PVCN's commitment to maintaining its reputation with shareholders, customers, and partners.
On the other hand, the Corporation is investing in some highly feasible projects with quick recovery of capital and is the general contractor of some large-scaled works.
Increasing charter capital enables the enterprise to leverage financial tools effectively, enhancing its capacity to undertake large-scale projects This strategic move positions the company as a leading player in the construction and real estate investment sectors in Central.
Table 2.4: Financial criteria in 2010 of PVNC
1 Quick payment = (mobile asset- inventory)/total short term debt Time 0.71 0.676 -0.02
2 Mobile ratio (current payment ratio) mobile asset/total short term debt Time 1 0.73 -0.29
3 Inventory circle = revenue/inventory Round 3.5 10.92 8.43
5 Total asset circle = revenue/total asset Round 1.2 0.54 -0.68
6 Marginal profit = Net interest/revenue % 2.55% 11.09
7 ROA – profitability on total asset NI/total asset % 2.11% 5.86% 3.77
7 ROE – contributed capital withdrawal ratio = net interest/ owner capital % 6.21% 39.74
8 Debt ratio = total debt/total asset % 82% 86.25
ANALYSIS OF PVNC BUSINESS PICTURE
Nghe An province has implemented policies to attract foreign investment, leading to the establishment of industrial zones and processing parks, including Hoang Mai Industrial Zone, Dong Hoi Industrial Zone, and Nam Cam Industrial Park These developments have generated employment opportunities and enhanced the modernization of technological equipment in the region.
Our state engages in bilateral and multilateral agreements with international organizations to enhance infrastructure investment These agreements aim to expand joint venture opportunities, allowing for the assessment and integration of advanced technology across various sectors.
The legal framework governing PVCN has been enhanced through the implementation of various laws, including investment law, enterprise law, value-added tax law, enterprise income law, construction law, and bidding law This comprehensive system of legal documents establishes a clear legal corridor, ensuring stable operations for PVCN.
PVN and PVCN have signed a comprehensive cooperation agreement with the People's Committees of Nghe An and Ha Tinh to facilitate investment opportunities in the region This partnership aims to enable PVN and its subsidiaries to explore and survey potential projects in Nghe An and Ha Tinh PVCN is focused on expanding its network in the petroleum and gas sectors, as well as in liquid gas, fertilizers, financial services, insurance, and construction.
The year 2011 marked a global economic crisis, yet experts believe that Vietnam's economy will recover swiftly and experience significant growth through returning investment capital and its internal economic strengths This recovery is crucial for businesses, particularly PVCN, as it provides favorable conditions for growth and development.
The national economy is developing; therefore, investment in infrustructure and industrial zones strongly develops, which creates condition for development of construction, transportation industry and constructional raw material production.
As the economy develops, the quality of spiritual, material, and cultural living improves significantly, leading to a heightened demand for accommodation, apartments, and real estate investments The precision and quality of construction products are on the rise, with stricter adherence to construction techniques, ultimately generating substantial benefits for society, businesses, and consumers alike.
In recent years, technological and information revolutions have significantly impacted socio-economic fields across nations, accelerating the transition to an intellectual-oriented economy and driving shifts in economic structures along with the cycles of capital and technology.
To meet the growing demands of construction and investment projects, the Corporation continuously upgrades its equipment and facilities, incorporating advanced tools for land surveying such as precise automatic transit and levels, as well as various machinery including PVNC excavators, bulldozers, rollers, graders, and concrete pumps These modern, high-capacity machines adhere to technical and artistic standards, while the Corporation also ensures the regular maintenance of older equipment to guarantee optimal performance and labor safety.
2.2.1.2 Sector environment and competitive environment
PVNC relies on various providers for its production activities, including suppliers of machinery, equipment, and construction materials, primarily sourced from countries like China, Russia, Germany, Japan, and Korea These suppliers often operate as monopolies, exerting pressure on PVNC through practices such as requiring deposits before delivery, inflating prices above market rates, and providing incomplete or outdated equipment with multiple delivery instances Additionally, PVNC faces challenges due to limited capacity in handling import procedures, which can result in significant financial losses.
With regard to domestic providers of construction materials or local authority then their pressure is to raise material price or create difficulties in administrative procedures for exploiting of PVNC.
PVNC faces significant pressure from its diverse customer base due to its unique product offerings In the construction sector, clients include various districts and provinces involved in investment projects Additionally, in the petroleum industry, pressures manifest in several ways, such as the need to lower construction bidding prices, manage contractor capital, and navigate delayed final payments.
In the construction sector, effective management qualifications, modern equipment, and advanced technology are essential for success However, significant threats arise from well-funded competitors like Construction Corporations that possess substantial financial resources and cutting-edge technology For property investments, high compensation costs pose challenges, particularly for financially weaker enterprises that struggle to undertake large-scale projects, which are often dominated by stronger financial players These factors create a competitive landscape for PVNC amid global economic integration.
In the construction sector, investors are increasingly focused on directly implementing projects, while traditional construction materials continue to coexist with new alternatives As a result, PVNC is unlikely to face significant pressure from substitute products in the market.
- Competitive intensity among existing enterprises
Property investment in project implementation offers significant profits, leading to intense competition among large corporations and small to medium-sized enterprises In Nghe An province and the Central region, PVNC faces competition from established companies such as Song Da Corporation, Vinaconex Construction Corporation, LILAMA Corporation, Hoang Anh Gia Lai, Hanoi Housing Development Corporation, and Song Hong Corporation These competitors possess strong financial resources, reputation, and extensive experience in executing construction projects and investing in property developments, including apartments and new urban centers.
Via the evaluation of experts and realistic reality then construction growth rate in Nghe
The province and central region exhibit rapid growth, characterized by an abundance of fixed assets such as machinery and equipment, which restricts sector withdrawal This environment fosters intense competition, prompting PVNC to prioritize the analysis of competitors' strengths and weaknesses By focusing on direct competitors, PVNC can develop effective strategies to navigate this competitive landscape.
To analyze problems, we can define which the direct competitive opponents are then we can analyze the following aspects:
- Analysis of development strategy of opponents, their present and future strategies.
- Analysis of strengths and weaknesses of opponents.
- Analysis of capacity, production scale and competitiveness of opponents
- Analysis of adapting capacity with environmental changes of opponents
PVCN resources include machineries, equipments, labor, and finances, etc.
Total labors of PVNC include: 802 members; doctor qualification: 1 member; MBA: 7 members; university qualification: 305 members; vocational school and college: 72 members; technical workers: 417 members
PVNC boasts a team of experienced leaders and skilled workers who have successfully executed major projects, including the Dung Quat oil filtering factory, Nghi Son oil filtering factory, Nghe An petroleum building, Vung Ang thermoelectric plant, and the ground leveling and traffic system of Hoang Mai industrial zone These accomplishments highlight the company's strengths However, some younger employees lack trading experience, which affects their confidence and determination in the workplace.
The estimating table of financial criteria compared to data of sector’s mean indicates us that financial situation of PVNC has some following strengths and weaknesses:
PROPOSAL AND CONCLUSION
• Increase in personnel's living standard
It is specified as follow:
- Executing works according to progress, proposing solutions to overcome difficulties for insurance of firm progress.
- Pushing the compiling of execution documents, commissioning records, and positively withdrawing capitals and debts in order to reduce costs and increase operating efficiency.
- Completely solving problems of finance of old works.
The investment project aims to enhance the construction capacity of equipment in alignment with PVCN's development strategy The Corporation is focused on actively participating in total EPC bidding packages to drive growth and efficiency.
- Perfecting mode of management towards tidy and deeply specialty form in order to increase labor productivity and operating efficiency.
- Concentrating resources and human resources to execute key works for handover according to given progress, quality assurance and absolute labor safety.
- Focusing to effectively invest the projects in order to raise up input resources of PVCN apart from construction and erection.
- Increasing charter capital to take initiative in capitals for investment and operations.
- Focusing effectively financial operations to secure production and business and increase revenue from such operations.
As a full member of PVC and operating directly under PVN, PVCN has significantly advanced in alignment with PVC's strategic vision, aiming to establish itself as the leading construction-investment corporation in Vietnam by 2015, thus addressing the growing demand in the industry.
PVCN currently employs approximately 1,600 long-term contractual workers, offering an average monthly income of 5.3 million Dong per person This salary level is notably high compared to other enterprises in Nghe An, reflecting a strong standard of labor income in the region.
A key factor in achieving PVNC's long-term goals is the unwavering commitment of its leadership and workforce to overcome challenges and strive for significant objectives.
Table of expected time, cost and preferential order to implement strategic solutions within the period of 2010 – 2015
1 Effective capital mobilization and using 2010-2015 a
Issuing stock to increase charter capital from 100 billion dong to 600 billion dong
Issuing stock to increase charter capital from 600 billion dong to 1200 billion dong
2 Solutions of products and services 2010-2015
3 Improve organizational structure and personnel 2010-2015
4 Basic investment construction and equipment capacity raising 2011- 2015 a Investment in equipments, construction of infrastructure 2011-2015 b Investment in factory, mechanic processing line 2011-2015 c Construction material production 2011-2015
5 Science and technology solution 2010 - 2015 a Apply informatics technology in production 2011 – 2012 b Construct HSEQ process according to standards of ISO 9001,2008 2010 – 2011 c
Construct project management tools, project implementation progress, plan, personnel organization and financial management
Originating from the aforementioned vision and mission, PVNC determiness the key missions of development in the coming time as follows:
* Construction and erection of building inside and outside the Petro and Gas industry
In the context of national economic growth and urban development initiatives, the construction sector is emerging as a promising market PVNC is committed to advancing this field as a primary focus of its strategic development efforts.
In 2015, the construction development sector contributed 35% to PVNC's total revenues The Corporation aims to enhance its capacity to gain a competitive edge over other contractors in the North Central region.
2015 to have enough capacity to compete with other regional contractors since 2025, it will be striving on making up share rate of from 20% to 30% of building constructions in this region.
* Execution of Petro and Gas constructions
From 2011 to 2015, PVNC focused on executing projects assigned by PVC and the Group, including the accommodation for management and operational staff at the Vung Ang thermoelectric plant, the upgrade of the Anh Son cement factory, the Hua Na hydroelectric project, and the Quang Trach thermoelectric No 1 Plant, among others.
By 2015, PVNC aimed to establish sufficient capacity to initiate an oil filtering factory By 2025, PVNC is projected to achieve a 40% share in the oil filtering project in Vietnam and collaborate with PVC on international oil filtering initiatives.
Investing strategically in key industrial zones, particularly the Hoang Mai and Nam Cam industrial zones in Nghe An, is essential for maximizing their potential Collaborating with both domestic and international partners to fund industrial projects, such as the Anh Son 12/9 Cement Factory and the Tan Ky Cement Factory, will further enhance development and growth in the region.
Investment in urban and commercial centers
Within the period of 2010 - 2012, PVNC will contribute capital to improve zone A – Quang Trung apartment, Vinh city, Nghe An province, high buildings and Ky Long – Ky Lien –
Ky Phuong Petroleum Villa is a premier urban development project located in the Vung Ang economic zone within Ky Trinh district, Ky Anh, Ha Tinh This project features high-end apartments, modern buildings, and a recreational park, all situated in a central urban area Additionally, it includes a non-tariff commercial center and the Ha Tan urban center, strategically positioned near the Cau Treo international border gate economic zone.
- Construction material production and trade
The company is actively engaged in producing essential construction materials through several key projects, including the Canh Sat stone mine, a concrete factory in Nam Cam industrial zone, and a stone mine with a concrete mixture line in Vung Ang industrial zone Additionally, it operates in the Quang Trach industrial zone and the Tuynel brick production factory in Hoang Mai industrial zone By 2015, the company aims to be fully operational, supplying primary construction materials such as construction stone, sand, and bricks.
- Mechanic erection and fabrication sector
PVNC aims to enhance its implementation technology by prioritizing the development of the mechanical sector and machine processing To achieve this goal, the company plans to invest in equipment systems, establish factories, and train skilled workers By 2015, PVNC expects this focus to contribute 5% to 10% of its total revenue.
In response to the multi-sectional development of PVN and the initiative to enhance collaboration among its member units, the corporation plans to invest in the distribution services of various products, including agricultural fertilizers and polypropylene, in the Northern Central region Additionally, the company aims to expand its investment in recreational services within the new urban center and recreation facilities in Vinh City and Cua Lo Town.
3.2 SOME SOLUTIONS AND PROPOSALS FOR PVNC EXECUTION OF BUSINESS STRATEGY
After analysis of different matrix groups, we establish QSPM matrix
Bảng 3.1 QSPM Matrix SO group
2 Qualification and creativeness of labor 3 3 9 3 9
3 Appication level of technology and information 3 3 9 3 9
4 Recognization level of prestige and trade name 4 4 16 3 12
7 Operating efficiency of subsidies 4 4 16 3 12 external factors 0 0
1 Stably economic growth, high income 3.5 3 10.5 3 10.5
5 Quick development of science and technology 4 3.5 14 4 16
The SO strategic group focuses on two primary strategies: centralization and market development Centralization leverages PVNC's strengths in human resources, brand prestige, consumer demand, and operational efficiency to capitalize on industrial zone projects and large-scale constructions The QSPM matrix indicates that the centralization strategy is significantly more favorable, scoring 143.5 points higher than market development This approach not only enhances operational effectiveness but also fosters loyalty among established and traditional customers.
Table 3.2 QSPM Matrix of WO group
Important factors Classification replacable strategies Centralization
1 Stably economic growth, high income 3.5 3 10.5 2 7
3 Increasing demand of real estate utilazation 4 3.5 14 3 12
4 Integration for increase in competitive capacity 3 3.5 10.5 3 9
The QSPM Matrix for the WO group highlights two primary strategies: differentiation and risk management With a score of 62, the differentiation strategy is deemed more appealing than the risk management strategy, which scored 58 This approach enables PVNC to leverage its strengths while addressing weaknesses, ultimately capitalizing on development opportunities.
Table 3.3 QSPM matrix of ST group
Important factors Classification replacable strategies Centralization
2 Qualification and creativeness of labor 3 3 9 2.5 7.5
3 Application level of technology and information 4 4 16 3 12
4 Recognition level of prestige and trade name 3 3 9 3 9
2 development of different investment channel 3 3 9 3 9
4 Demand in widespread use of customers 4 4 16 3.5 14
