Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (124)

Group Class: GeMBA01.V01 Table of contents Capstone Project Report Preface Chapter I: Generally theoretical basis of business strategy and Page Establishment of enterprise’s business strategy I / Business strategy and levels of strategy Concept business strategy and strategic administration Role of business strategy for enterprise’s development Levels of strategy II / Establishment of enterprise’s business strategy Requirements and grounds in establishment of business strategy Concepts to be grasped thoroughly on establishing business strategy Procedures of business strategy establishment Models of strategy analysis Chapter II: Analysis of reality of business strategy establishment 5 5 6 7 12 15 in Truong Son Construction Corporation I Process of formation and development and Primary technical and 15 economic features influencing strategy establishment in Truong Son Construction Corporation Process of formation and development of Truong Son Construction 15 Corporation Primary technical and economic features influencing business 16 strategy establishment in Truong Son Construction Corporation II Analysis of reality of business strategy establishment in Truong Son 21 Construction Corporation in stage of from 2006 to 2010 Analysis of business environment Determination of objective Measures of objective execution III Reality of strategy management organization IV Real situation of professional staff executing strategy 21 30 34 37 39 establishment V Evaluation on reality of business strategy establishment in Truong 40 Son Construction Corporation Achieved results Shortcomings Cause of shortcomings Chapter III: Some proposals of business strategies in Truong Son 41 42 44 46 Construction Corporation I Direction of business strategy establishment in Truong Son 46 Construction Corporation II Some proposals of strategy establishment in Truong Son 48 6911Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report Construction Corporation until 2020 Completion of process of business strategy establishment in Truong 48 Son Construction Corporation Strategy management mechinery in Truong Son Construction 64 Corporation Improvement of quality of planning staff In conclusion References 64 66 67 Preface Why choose the topic After twenty years of our State and Party’s execution of economic renovation, especially from open-door for integration, Vietnam economy has considerately prospering Process of shifting in the economy from centralized planning mechanism to socialist oriented market mechanism, first and foremost Vietnam’s full membership of WTO on January 11 th, 2007 has led to increasing polarization among enterprises, increasingly severe and keen competition For existence and development, enterprises must determine their own duly business strategy Without business strategy or worthless or erroneous one shall result in fail in business 6922Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report After study and investigation of Global advanced master of business administration program associated by Griggs University, United State and postgraduate department of National University based on study and collection of data on production and business operations of Truong Son Construction Corporation, we realized that the Corporation’s foremost concern is how to have duly direction and reasonable business development forecasts in business and production operations in severe competition environment and rain-storm development of technology science as present This requires the Corporation’s business strategy establishment must be extremely sharp and level-worthy of organization’s scale Nevertheless, this operation has had many shortcomings and needs to be appropriately invested for improvement and perfection This imperativeness created premise for our group to implement research-intensive and choose topic “Business strategy establishment in Truong Son Construction Corporation until 2020” for Group 3’s Final exercise The Object of research Research aims to apply generally theoretical basis of strategic administration so as to analyze and evaluate reality of business strategy establishment of Truong Son Construction Corporation in stage of from 2006 to 2010, thence; lessons and experiences are drawn in order to propose completion of this operation in stage of from 2010 to 2020, simultaneously useful solutions are defined and proposed strategy are successfully applied to help the Corporation overcome current inflation storm and globally economic crisis in order to become comprehensively powerful Corporation Method of Research 3.1 Method of data collection The Primary data collection: By real observing of the corporation, personal interview ( mainly the officer, the staff who work in the aspects of plan, finance, human resource, marketing ) The secondary data collection: Collect from the reports and docucments of the agencies, Statistical Yearbooks, the information in the press, television, internet and legacy previous studies 6933Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report 3.2 Method of Comparison and synthesis: Comparison a target with base (original target) for the data of business results, the parameters of the market, the average target, the other targets can be compared Conditions of comparing is the data has to fit with the space, time, economic content, units of measurement, methodology, scale and business conditions 3.3 Statistical methods in the table: Using synthetic data through statistical tables to find trends or common characteristics of the factors analyzed directly 3.4 SWOT method: Find out the strengths, weaknesses within the business, opportunities and risks outside the enterprise This is the key in building business strategy Scope of study Research projects about business production activities of Truong Son Construction corporations to g between 2006 -: -2009 and propose business strategies for this company in the period 2011-2020 Group 3’s capstone project structurally has chapters including the following specific contents: Chapter I Generally theoretical basis of business strategy and establishment of enterprise’s business strategy I Business strategy and levels of strategy Concept business strategy and strategic administration There are many different concepts on business strategy and strategic administration, of which the most popular concept is “Business strategy is generalization of long-range objectives, policies and great solutions on business and production, finance and human factor handling in order to develop enterprise’s business operation up to new status in higher quality” “Business strategy is a series of commitments and actions that a company uses to take competitive advantage by exploiting core capacities in the market " 6944Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report "Strategic administration is process of investigating environments at present as well as in the future, planning organization’s objectives, proposing, implementing and inspecting performance of decisions in order to successfully achieve those objectives in environments at present and in the future as well; many investigators stated that strategic administration is both an art and a science " Role of business strategy for enterprise’s development Firstly primary function of business strategy aims to create a uniform orientation for types of plans in enterprise In other words, business strategy helps enterprise be thoroughly aware of its objective and direction, which is guideline for all enterprise’s business operations Although only one type of plan has not ensured enterprise to reach their expected goals, strategy is key basis for other plans and policies of operations, therefore; it is preferred to handle first Secondly together with prompt change and development of business environment, opportunities and threatening risks always exist in the market At that time, business strategy helps enterprise catch and take full advantage of all business opportunities, take initiative in finding solutions and overcome trapping risks of market Thirdly business strategy makes contribution to increase performance of enterprise’s resources, strengthen competitive position and ensure its continual and strong development in long term Fourthly establishment and implementation of business strategy creates firm basis for enterprise to propose policies and decision in conformity to market fluctuation Levels of strategy In each field, products, market and customers are relatively independent These enterprises usually have different strategies for different levels of operations In general, there are three levels of strategy including: 3.1 Strategy at enterprise level This strategy determines enterprise’s operation line and position in environment and role of each business line in enterprise 3.2 Strategy at business unit level It defines position of business line in enterprise and position of branch in environment and specifies how to compete in each its field of operation 6955Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report 3.3 Strategy at functional level This strategy is established to support implementation of strategies at business unit level and at enterprise one, which includes Research and development, Production, Marketing, Personnel and Finance In words, one unit usually has three distinguished levels of strategies However, owing to orientation of strategies, strategies that are at the higher level play more important roles II Establishment of enterprise’s business strategy Requirements and grounds in establishment of business strategy 1.1 Requirements On establishment (planning) of business strategies, the following requirements need to be met: - Ensuring increase in enterprise’s strength and attainment of competitive advantage in business world; - Enterprise must determine target market; thereof define safe area in business and specify business scopes and permissible degree of risk; - Specifying key objectives and primary conditions for implementation of those objectives; - Having thorough gasp of information and constructing information system on market, customers, suppliers and competitors; - Constructing standby strategies and substitution ones for use if necessary and avoiding passive position which disturbs system when current performance of strategies meets with troubles; - Seizing opportunity and maximally take full advantage of opportunities and having decisiveness 1.2 Grounds Each enterprise operates business and production in order to seek profits Therefore, it must produce products for customers and use factor inputs and process optimally so as to create highest quantity of products with lowest cost However, not only the enterprise produces those commodities and services, many other enterprises that also produce them are competitors of the enterprise Accordingly, for attraction of more customers, the enterprise’s products and services must have better designs and quality than competitor’s or the enterprise has better competitive advantage 6966Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report Consequently, important grounds for establishment of business strategies include: + Customers + Competitors + Enterprise Economists consider these as strategy threesome that enterprises must depend on to establish their own business strategies Concepts to be grasped thoroughly on establishing business strategy - Establishment of business strategy must be based on exploitation of enterprise’s key factors for taking success; - Establishing business strategy based on promotion of comparative advantages; - Business strategy is established depending on exploitation of new and creative factors; - Establishing business strategy in order to absolutely exploit surrounding factors and key ones Procedures of business strategy establishment 3.1 External environment research and forecast Analysis of external environment aims to be thoroughly aware of opportunities and threatening risks for enterprise’s business operations a) Macro-environment a1) Economic factors include: Growth of economy rising new demand for development of economic sectors; inflation rate impacting interest and interest rate of investment; unemployment rate affecting recruitment and demission; and exchange rate influencing banker's rate, financial policies and control of pay price and financial balance a2) Political factors This group of factors that increasingly keeps important position includes stabilization of public authorities, regulations on tax, charge and fees, rules of labor recruitment and demission, and stipulations of environment protection and safety, etc a3) Social factors These include life quality, common practice, regional culture and population growth rate, etc a4) Natural factors These factors are resources, environment pollution and shortage of energy, etc 6977Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report a5) Technological factors This type of factors has remarkable and direct influence on enterprise’s business strategy because in age of rain-storm development of technology at present appearance and change of new technologies always create opportunities but not few implicit risks threatening existence and development of enterprise Therefore, enterprise needs to have strategy of flexible application of technology and science to avoid falling into passive and underdeveloped position b)Operation environment (Micro) Operation environment includes factors in Industry and are external factors for enterprise, which decides competitive nature and grade in that Industry There are five primary factors (five forces model ) including Buyers , Suppliers, substitutes, New entrants, Industry eompetitors Enterprise must analyze these factors to recognize opportunities and risks that enterprise meets 3.2 Research and forecast of enterprise’s factors That is analysis of reality and real ability of enterprise’s resources Analysis of reality and real ability of enterprise’s resources means analysis of internal factors for recognition of strong movements as well as weak points, thence measures for expansion of strong points and overcoming weak points This analysis focuses on the following matters: a) Analysis of enterprise’s resources - Human resources consist of senior administrators, executive administrators and staff On analysis of human resources, it is necessary to pay attention to aspects including: + Leadership machinery + Professional skill and moral personality of personnel + Adaptability on changes - Financial resources focus on issues on reality of capital allocation, effectiveness of capital utilization and financial indicators - Technological resources include warehouses, storage system, wharfs and yards, road, vehicles, and machineries and equipments 6988Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report - Marketing analysis: this is the most important content in internal analysis allowing evalution of enterprise’s ability to meet market demand and concentrating on product category, product quality, market share, price and customer’s trust b)Analysis enterprise’s ability of organization Evaluation of enterprise’s organization is usually hidden under form of question if enterprise’s organization has been conformable to requirements of business strategy and they are strong enough to ensure implementation of proposed strategy Contents of this analysis are: - Current reality of enterprise’s management and organization structure on two faces including organization system and operation regulations - Organization’s adaptability in the face of changes in environment and business condition - Whether strategy are in conformity with enterprise’s objective and mission - Whether process of enterprise’s decision-making are valid - How working style of enterprise’s leadership is c) Analysis of enterprise’s ability of competition Enterprise’s ability of competition refers to ability that enterprise can unshakably and meaningfully maintain its position in long-term in market Factors that influence enterprise’s ability of competition are: - Working atmosphere inside enterprise; - Return on Equity/Assets - Labor productivity; - Product costs and enterprise’s ability of reduction of product cost; - Business experience in market world; - Flexibility and keenness of leadership staff in enterprise - Quality of service and products 3.3 Establishment of strategic plans As above analyzed, we see that an enterprise has many objectives and strategies One of principal objective that enterprise usually pursues is growth Because most of strategies at enterprise level focus on growth, construction of strategic models is mainly based on growth objective In addition, current maintenance objectives or decline has stable or cutting strategies, objectives of expansion to oversea market have extroversive strategy and 6999Chiencq;Duonghv;Sonlh;Huongpt Group Class: GeMBA01.V01 Capstone Project Report association of types of strategies for levels of enterprises The aforementioned strategies are generally called the general strategy 3.4 Choice of strategic plan After successfully determining model of strategy selection, we move to the next step that is choice of strategic plan Grounds for evaluation and choice of strategic plan refer to sorting out ome plans considered better among established ones, then choosing the most optimal one 3.5 Decision of strategy After analysis and choice of strategy, executive board evaluates strategy so that owner make strategic decision in order to institutionalize chosen strategy serving as basis for the following steps of strategy cycle such as implementation of strategy Consequently, decision of strategy is leader’s brainpower product but decisions must depend on the following: - Decision must closely follow the general objective and long-range objective of system; - Decision of system must comply with law and social practices; - Decision must be based on system’s available resources or resources ensured for possible mobilization - Proposed decision must be timely 3.6 Implementation of strategy This is very important stage changing planned strategies into specific actions Strategy implementation has wide and deep effect on entire enterprise and impact on both departments and functional divisions Strategy implementation includes development of strategy such as support budget, the Company cultural programs, association with system of encouragement and rewards for personnel, etc Whether the strategy implementation is successful or not depends on not only strategy quality but also administrator’s ability to urging personnel 3.7 Inspection and evaluation of strategy implementation During strategy implementation, it is necessary to frequently inspect and consider whether those strategies have been executed as expected or not There are many reasons for that a certain strategy can not achieve proposed goal These reasons refer to change in 691010Chiencq;Duonghv;Sonlh;Huongpt 10 Group Class: GeMBA01.V01 MBA final exercise (1) Service business has high business power and average attractiveness of branch, then selected strategic direction is growth According to this strategy, the Corporation invests strongly segment of selective market (such as units under the Corporation, large construction companies in Northern and Southern area), and then determine maximal market share and seek attractive sectors to exploit strength (2) The field of construction has high competitive power and market attractiveness Strategic direction is “investment for growth” The Corporation needs to maximally invest by investment in capital, technology and personnel training, and simultaneously diversify erection products of high engineering in order to continuously serve domestic demand and expand to international market Therefore, it accepts stable profit at nearly critical level (3)Testing has average business strength and high market attractiveness; for this product, the Corporation should selectively attach special importance to its strength of capital and processing line in order to penetrate deeply into market Simultaneously it should specify issues of competitors and state weaknesses to avoid them and find out way to overcome (4) Coffee has low business strength and attractiveness Strategic direction for this product is “to maintain investment reduction” That means the Corporation should withdraw from market or reduce quantity (5) Training has average business strength and attractiveness Products of this field have no convenient position Strategic direction is to maintain market, withdraw from market if necessary and only concentrate on internal training section (6) Survey and design are at average level of both business strength and attractiveness Strategic direction is to “selectively invest to create jobs”, i.e the Corporation must find out way to divided market share and simultaneously set up plans to deal with weaknesses in order to fight against threatening from other enterprises Table 13: Chart on rate of product-based production value 55 Group Class: GeMBA01.V01 MBA final exercise (Self-collected information source) Through the analysis results of BCG matrix and Business strategy net, apply the MC Kinsey Matrix for alocating the position of blue, Yellow or red as per the following table for main business is construction work with 80% of production value Table 14: MC Kinsey Matrix of Coproration Medium High Blue Industry attractive ness Blue Yellow Blue Medium Yellow Hig ht Medium Yellow Red Red Red Mediu m Business strength Through MC Kinsey matrix, the construction of the Corporation are located at the green, proved the potential about the industries attractor and their competitiveness is a good 1.3.3 SWOT matrix 56 Group Class: GeMBA01.V01 MBA final exercise Owing to the Corporation’s diversified characteristics of products, we can not apply this matrix to all products of the Corporation In the Corporation we only apply it to each product, mainly to products of construction Applying SWOT matrix, the Corporation should implement eight following steps: - Listing great opportunities outside the Corporation; - Stating important threatening outside the Corporation; - Pointing out primary strengths of the Corporation; - Listing principal points of the Corporation; - Associating internal strengths with external opportunities and recording strategic result in S/O Square; - Combining internal strengths (S) with external threatening (T), then recording strategic results in S/T square; - Coordinating internal weaknesses (W) with external opportunities (O) and recording results in W/O square; - Associating internal weaknesses (W) with external threatening, and then recording strategic results in W/T square Implementation of these eight steps is prescribed in the following table Bảng 15 SWOT matrix of Truong Son Construction Corporation SWOT matrix Opportunities (O) Threatening (T) Development of science and Powerful competitors; technology impacts Requirement of construction; construction quality, and Government prepares to investors’ price squeeze; invest some large works; Appearance of Areas of industrialization construction joint ventures; and modernization and State’s ever-changing processing zones have been laws and policies appeared; Hotel service develops; Repairing and reconstruction of State offices are required; 57 Group Class: GeMBA01.V01 MBA final exercise Intellectual standards of the people are improved Strengths (S) S/O association S/T combination High capital ability, Taking full advantage of Associating units in the modern specialized capital, human resource, Corporation to defeat machinery and experienced machinery, prestige, state’s competitors; workers; preferential to win bids of some Taking full advantage of Prestige in business State large works; capital to deal with Government’s Penetrating into areas of investors’ pressure; preference industrialization and Taking full advantage of Solidarity in the modernization and processing preference to overcome Corporation Weaknesses (W) zones W/O combination changes of law W/T association Restrictive quality of Weak marketing skill can be Overcoming construction works; overcome by State’s quality to deal with Ineffective management preference; competitors, investors and mechamism; Scientific and technological owners; Weak marketing development is utilized to push Strengthening operation ; applying them application of science and Weak application of technology in order to science and technology compete joint ventures (Self-collected information source) The aforementioned analysis shows us that with product of construction, at present it is necessary to concentrate on combination between strengths (S) with opportunities (O) 58 Group Class: GeMBA01.V01 MBA final exercise Through determination of mission, analysis of business environment and application of some model of strategic analysis, we realize that the Corporation should construct the following strategies for its self: - Market strategy; - Product diversification strategy; - Tendering strategy; - Human development strategy a) Market strategy Based on determined system of missions and analysis of business environment for the Corporation, it is necessary to have market assessment direction Market strategy has function to determine and concretize fields of business products that are proposed by system of missions Market strategy includes the following ones: + Narrowly specialized market strategy concentrates on one market and mainly has specialization based on constructional products; + Expanded market strategy aims to select business products and fields in many markets with various proportions, in which principal and supplementary markets must be determined; + General market strategy is not only operating in scope of construction market but expanding to scoop other potential markets such as Testing, Survey and design, and mine and bomb scanning and removal, etc Combining together, we see that the Corporation should reasonably determine general market strategy The Corporation’s main operations include Construction, coffee production, testing, survey and design, and training At present, according to the Government's commitment, the investment projects from ODA, WB, businesses in the Army is not involved, this strategy is to set out in partnerships, links or contracted form of the sub-contractors to fit the subject goods as required b) Product diversification strategy From the Corporation’s strategic partition in fields of Construction, coffee production, testing, survey and design, and training, its product strategy must indicate specific strategies for each field and product (works and work items) without mentioning general strategies 59 Group Class: GeMBA01.V01 MBA final exercise * For example, constructional products require - Strategy towards large-scaled works of high specifications; - Strategy towards medium-scaled works and projects of traditional specifications; - Strategy towards small-scaled works of simple specifications In aspect of the Corporation’s technical competence, equipments and ability, we see the Corporation should focus on these three strategies and attach special importance to strategy and Therefore, it is necessary to concentrate on the following solutions: + Synchronously investing traditional processing plants and successfully managing and using usable facilities; + Continuing further investment in newly modern machineries and equipments purchased from developing countries; + Organizing marketing system widespread based on geographic regions in order to possibly make bids to small and medium works; + Having favorable plan of productive organization; + Concentrating on competition and successful tender of State’s large constructions c) Tendering strategy Due to business features of construction industry, this is the Corporation’s extremely characteristic strategy In the construction works, the first focus is the traffic works, because this is the area where the corporation has a lot of experience and relationships, followed by a hydro electric - a potential area of fresh development, then the civil construction This strategy includes the specific strategies as follows: c1 Tendering strategy based on price advantage The Corporation selected this strategy when considering that advantage of engineering and technology is lower than that of competitors, but exceeding them in other economic aspects in order to reduce cost: - Possibly reducing expenses for grouping or moving forces in the vicinity of site (executing works near new ones); - Possibly making use of fully amortized facilities in order to reduce expenses for amortization of fixed assets; - Exploiting raw materials with low price or the Corporation’s premises of material production near site 60 Group Class: GeMBA01.V01 MBA final exercise In order to implement this strategy, the Corporation should have the following solutions: - Forecasting need of materials and investing construction of material production premises according to region; - Absolutely employing simple labor outside society; - Implementing joint venture and association with domestic and oversea partners who have advantage of facilities or material premises; - Establishing optimal plans of constructional organization in order to reduce construction cost After establishing plans of execution manner, the Corporation selects optimal plan and determines standard price according to selected plan in order to determine a reasonable tendering price Principally, tendering price can be lower than or equal to standard estimated cost Determination of tendering price lower than or equal to standard price must be based certain grounds If the Corporation’s price advantage is little exceeding other competitors’ tendering price can be equal to standard one In case it must necessarily win a bid to penetrate into market or deal with employment, tendering price can be lower than standard one Degree of tendering price reduction compared to standard price must be determined according to the aforementioned advantages The quality must always ensure because the principles set out of the investor is accepting bids for low cost but high quality, fine art, technical progress to ensure the request c2 Tendering strategy pursuant to technical – technological advantages this strategy is applied when the Corporation has advantage of technology, personnel’s qualifications or specialized machineries and equipments used in one or some projects The Corporation has great advantage in execution of road and bridge works, hydroelectric power works, hydraulic structures, etc., therefore; it should take this advantage to propose reasonable plans to win a bid For implementation of this construction strategy, the following solutions must be carried out - Investing modernization of constructional plants, especially specialized machineries such hot asphalt concrete-mixing plant, sand piling, break-stone production line, etc; 61 Group Class: GeMBA01.V01 MBA final exercise - Having policies to attract and develop engineering staff and skilled workers; - Having policies to ensure construction engineering and quality to improve the Corporation’s prestige c3 Tendering strategy based on financial position This strategy requires the Corporation to have powerfully financial potential and ability of flexible and large capital mobilization and possibly accept payment methods such as advance for investor, delay payment, etc Thereof it can make bids and have successful tender according to method of tender selection because sometimes there is construction plan but capital has not been approved or mobilized Therefore, we must accept adventure and risks However, in return the Corporation can successfully contract direct works with more advantage condition or be paid with original and interest advanced for implementation of works with acceptable interest rate Primary measures are - Selecting optimal manner of execution and reducing expenses and work price; - Having policies to mobilize internal capitals and funds from joint venture and association partners with powerfully financial ability, high ability to penetrate into market and flexible capital utilization policies; - It is necessary to have general and long-term exploitation policies for work owner who accepts principle of first advance and second collection c4 Economic outside based strategy This is applied mainly in case it is expected to appoint to contract projects, some Ministry of Defense – investors’ projects in particular Advantages are specified as: - Advantage of the Corporation’s patent; - Relationship between the Corporation and owner during long-term cooperation - Trust in quality of works previously constructed; In order to execute this strategy, the Corporation must: - Create mutually trust relationship with management offices and owner; - Carry out social marketing activities such as support for locality, construction of some welfare works, participation in humane relief and affection and gratitude operation, 62 Group Class: GeMBA01.V01 MBA final exercise etc When constructing tendering strategy for the Corporation, it is necessary to pay attention not to constructing only one certain strategy but one general strategy based on its characteristics d) Human development strategy Business strategy is established and carried out by the Corporation’s personnel Therefore, strategy and efficiency of implementation of production and business strategy depend much on quality of its personnel Accordingly, in business strategy planning, human development strategy is a key throughout implementation In short as well as long time, this staff must meet the following requirements: - Having apparent concept and attitude and being faithful with the Corporation’s interests and aware of good performance of disciplines; - Having professional qualifications and ability to satisfy requirements in market economy in order to well perform missions and targets allotted by the Corporation; - Being moral in business, management and relationship with labor in the Corporation Therefore, the Corporation must carry out human development strategy with the following contents: * Organizing utilization of human resources determined by strategic plan in order to maximally exploit intelligence ability and labor of personnel; arranging and distributing labor reasonably so as to effectively use labor factor; * Investing to training personnel’s qualifications of every aspect to capably own production and business process with increasingly high requirements of qualifications as well as progress of construction; * Improving training quality of Road and Bridge Secondary by upgrading infrastructure and teaching and learning aids and equipments, especially attaching special importance to training lecturers’ qualifications, having incentives for both teachers and students during study in order to attract students as well as teachers in both quantity and quality In addition, the Corporation can coordinate with universities to train and retrain managing skills and professional engineering for its labor force or sending senior managers to study at advanced schools abroad such as Transportation University, Construction university and Griggs university, etc; 63 Group Class: GeMBA01.V01 MBA final exercise * Creating economic motivations such as reasonable labor policy and apparent salary and reward structure; * Creating spiritual motivation such as self-respect heightening, occupational morality and conscience and promotion of productive emulation activities Strategy management Machinery It is necessary to rearrange departments’ missions clearly without overlapping and allot specific mission for executives to establish strategic plan and implement the strategy conveniently and more promptly without meeting with too much shortcomings at present Improvement of quality of planning staff In order to successfully implement planning, strategy for improvement of professional personnel’s ability needs to be put foremost Its leadership is much experienced in sector However, in some member unit economic operators have not had specialty of this field; most of them are merely technical executive and not familiar to economic calculation Increase in managing skills, cultivation and direction of minimal knowledge of economy and strategic plan for all technical executive, engineers and personnel is related with business accounting Marketing executives are not enough and weak, recruitment and training of competent ones in this operation must be paid much attention to Difficulty of recruitment of these personnel is that they must both have specialty of market, ability and be keen in marketing and expert in fields of construction, industry and traditional sectors of the Corporation If they have specialty in engineering, it is worthy and convenient for this operation Technicians act as counselors for General Director in plans of design and construction management and insurance of work quality and collect and propose new applicable initiatives, etc Therefore, they must be excellent in specialty and simultaneously improve their ability and knowledge to successfully complete missions proposed in condition of currently prompt development of science and technology Economic executives that consult economic field for General director include planning department, other economic handling divisions and people working at the Corporation’s Finance and accounting department; selection and supplementation of professional people for these departments must be concerned and selection and 64 Group Class: GeMBA01.V01 MBA final exercise training must be more reasonable and careful to recruit right people for right positions in conformity to ability and competence; and favorable trial period must be appropriate In summery, it is necessary and reasonable to check up on qualifications and working ability of positions in the Company to have adjustment plan in accordance with each work and capacity of each staff in order to successfully implement the Corporation’s ten-year strategy Through analysis and evaluation, we take out some principal indicators of strategy until 2020 as specified Table 16: Some principal indicators of strategy until 2020 Unit: VND billion Indicator 2011 2012 2013 Production value Revenue Profits Additional capital Tax Average labor Income (VND million) 2,530 2,300 46 135 100 5,600 2,783 2,530 50 140 110 5,600 5.5 2014 3,061 2,783 55 150 120 5,650 3,367 3,050 60 160 135 5,700 6.5 Year 2015 2016 2017 2018 2019 2020 3,704 3,350 67 175 150 5,700 7.5 4,482 4,070 80 200 180 5,800 9.0 4,075 3,700 74 185 165 5,750 8.2 4,930 4,480 90 210 200 5,800 10 5,424 4,920 100 220 218 5,900 11 5,966 5,400 106 240 245 6,000 12 (Self-calculated data source) In construction industry there are increasingly more enterprises expanding and associating participation or joint venture, etc investment rate of fixed assets is mainly borrowing capital, therefore; stable maintenance of growth of about 10% is reasonable in aspects In conclusion In modern market economy, business strategy is very necessary and impossibly vacant in enterprise’s operation as well as its existence and development For Trung Son Construction Corporation, business strategy always plays an important role to decide its survival, prosperity and slackening Through system of principal indicator of strategy model, the Corporation determines and establishes a comprehensive picture of methods and measures that it shall implement in the future At present, with rain-storm development of science and technology, information explosion with surprisingly factors happening continually to economy of each nation, especially in current period of global economy of crisis time and unanticipated movement, 65 Group Class: GeMBA01.V01 MBA final exercise business strategy planning is duly and very necessary Therefore, as to construction sector as well as other industries in the national economy, for strong development, it is necessary to also have duly development strategy and continuously improve it in conformity with each period and stage Business strategy is based on to forecast occurable opportunities and risks for the Corporation in order to propose reasonable measures Especially, Truong Son Construction Corporation mainly specializes in field of construction that is much risky A complete business strategy helps the Corporation to have ability to deal with every situation in market world Due to restricted applicability and amount of time, we can not avoid shortcomings in this article We would like to receive examining council and teachers’ suggestion for our more complete article Group would like to express comrades of Planning – economic of Truong Son Construction Corporation and teachers for your support during study and writing this article 66 Group Class: GeMBA01.V01 MBA final exercise References PhD Le The Gioi, Dr Nguyen Thanh Liem, Mr Tran Huu Hai (2009), STRATEGIC MANAGEMENT, Statistics Publishing house PhD Ngo Kim Thanh, PhD Le Van Tam (2009), STRAGEGIC MANAGEMENT QUẢN TRỊ CHIẾN LƯỢC, Publishing house National Economic University PhD Nguyen Thi Lien Diep, Mr Pham Van Nam(2006), STRAGEGY AND BUSINESS, labor and Social Affairs Puplishing House Alex Miller (1998), STRATEGIC MANAGEMENT 3rd Ed Irwin/Mcgraw-Hill Thomas L Wheelen, J.David Hnger(2004), STRATEGIC MANAGEMENT AND BUSINESS POLICY 9th Prentice Hall Peter Wright, Mark J Kroll, John Parnell (1996), STRATEGIC MANAGEMENT : CONCEPTS AND CASES 3rd Ed Prentice Hall Henry mintzberg, James Brian Quinn, John Voyer (1995), THE STRATEGY PROCESS, Collegiate Ed/ Prentice Hall David A Decenzo, stephen P Robbins (2002), HUMAN RESOURCE MANAGEMENT, 7th Ed John Wiley & Sons Jeffrey A.Mello (2006), STRAGEGIC HUMAN RESOURCE MANAGEMENT, 2st South West, Thomson 10 Reports on status of annual production and business from 2006 to 2009 of Truong Son Construction Corporation; 11 Resolution of the representative congress of the Party of Truong Son Construction Corporation in the eleventh term; 12 Plan and orientation of Truong Son Construction Corporation in 2011 - 2020 13 Propaganda documents of 50 years of Ho Chi Minh initiating date and traditional date of Truong Son soldiers ( from May 19th 1959 to May 19th 2009) – People’s army publishing house 14 http://www.csuchico.edu/mgmt/strategy/ 15 http://www.vinabook.com/quan-tri-chien-luoc16 http:// strategy-business.com/ January 16th, 2010 Group 67 Group Class: GeMBA01.V01 MBA final exercise Some images of Truong Son Construction Corporation Picture 1: Headquarter of Truong Son Construction Corporation Picture 2: Ho Chi Minh road at present 68 Group Class: GeMBA01.V01 MBA final exercise Picture 3: General Secretary Nong Duc Manh visited and had commemorative photo taken with High command of the twelfth corps and Senior cadres of the Corps Picture 4: Process of Sand piling and hot asphalt concrete mixing plant 69 ... management unit Man.unit of Hanoi – Lao Cai College Man unit Phu Quoc island BT HCM Group Class: GeMBA01.V01 MBA final exercise 2.3 Labour and wage features With labour force of large quantity and high... of Defense) Therefore, in subsidiary bureaucratic and centrally planned 20 Group Class: GeMBA01.V01 MBA final exercise mechanism, enterprise is also controlled by bureaucratic orderliness that... the Corporation’s operation situation and financial position until 2009; 21 Group Class: GeMBA01.V01 MBA final exercise - Real capacity of the Corporation, direction of investment and development