Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (110)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Coperate Strategic Development for Company 507 – CIENCO5 for period 2012 - 2017 BUSINESS STRATEGY DEVELOPMENT AT THE CIVIL ENGINEERING CONSTRUCTION COMPANY LIMITED 507 (2012 – 2017) Group Number: 03 Vu Hong Thang La Xuan Hanh Pham Thi Kieu Oanh Nguyen Huu Thach HANOI 2011 ACKNOWLEDGEMENTS First of all, we own our imbedded would like to thanks to the Center of Training Technology and Employment System, Ha Noi National University, who has organized successfully for their successful organization of the International Training Course of Master of Business Administration for class GaMBA01.N06 The course has provided us with the essential knowledge in the field of business management In particular, We have learnt numerous tools for strategic analysis and development for the studied Company, and the current global modern trends of business strategy development Such tools and knowledge are useful to our work Next, we are sincerely grateful gratitude to the lecturers, who have earnestly provided us with interesting lectures throughout the course for their supervision and guidance We are especially thankful would like to express our sincerely thank to Ms Kim Thanh, who has enthusiastically guided us tremendous enthusiasm in guiding us in our the completion of this capstone project Our paper would not be a success could not be success without the support from the Transport Engineering Corporation and One-member Limited Liability Engineering Company 507 Civil Engineering Construction Company Limited 507, who which have provided us with the requested necessary data and information, and arranged the interviews with their key corporate leaders Last but the not the least, we are thankful to would like to express our deepest appreciation to the Monitor and Management Team of the Intake for their continuous support and encouragement in our completion of this assignment capstone project TABLE OF CONTENTS i EXECUTIVE SUMMARY .… 1 Rationale Objective Methodology 3.1 Data Collection 3.2 Data Analysis .2 1.1 1.1.1 Value of the Capstone project .2 Limitations Structure of the Capstone project Business Strategy – Definition, Role and Key features .4 Definition 1.1.2 The Role of Business Strategy 1.1.3 Key Features 1.2 1.2.1 Types of Business Strategies .7 By Level of Business Management .7 1.2.2 By Content of the Strategies .7 1.2.3 By Characteristics of each Strategy 1.2.4 By Strategic Process 1.3 1.3.1 Business Strategy Development Process Corporate Mission and Key Objectives 1.3.2 Business Environment Analysis 1.3.2.1 External Environment Analysis .9 1.3.2.2 Internal Environment Analysis 10 1.3.3 Crafting Business Strategies Strategy analysis and selecting strategies 12 1.3.3.1 Matrix of External Factors External Factor Evaluation Matrix (EFE matrix) 12 Resouce: Strategic Management-Concepts and cases .13 1.3.3.2 Matrix of Internal Factors (IFE ) Internal Factor Evaluation Matrix (IFE matrix) 13 Resouce: Strategic Management-Concepts and cases .14 1.3.3.3 SWOT Matrix 14 Resouce: Strategic Management-Concepts and cases .15 1.3.3.4 Competitiveness Picture Matrix (CPM) Competitive Profile Matrix (CPM matrix) 15 Resouce: Strategic Management-Concepts and cases .15 1.3.3.5 TOWS Matrix 15 Resouce: Strategic Management-Concepts and cases .16 1.3.3.6 SPACE Matrix .16 Resouce: Strategic Management-Concepts and cases .17 1.3.3.7 QSPM Matrix 18 ii 1.3.4 Implementation Arrangements Strategy implementation .19 1.3.5 Evaluation of the Effectiveness of the Formulated Strategies .19 2.1 2.1.1 The introduction of Company 507 under Cienco5 21 Background Information 21 2.1.2 Company Establishment and Development History .21 2.1.3 Main Business Segments lines 23 2.1.4 Business Performance Results for 2008-2010 23 2.2 Analysis of External Environmental Factors affecting CECC 507’s Business Operations 25 2.2.1 Macro Environment 25 2.2.1.1 Investment in Civil Engineering Works Assigned by the Government Government’s Investment on Civil Engineering Works 25 2.2.1.2 Analysis of Legislative and Political Factors 27 2.2.1.3 Analysis of Economic Factors .28 2.2.1.4 Analysis of Socio-cultural Factors 30 2.2.1.5 Analysis of Technological Factors .31 2.2.2 Micro-Environment (Company 507’s Business segments lines) .32 2.3 2.3.1 Opportunities and Threats .36 Opportunities .36 2.3.2 Threats .37 2.4 2.4.1 Assessment of External Factors (Analysis of EFE and CPM Matrixes) 37 EFE Matrix 37 2.4.2 CPM Matrix .38 2.5 2.5.1 Assessment of Internal Factors 39 Resources of Company 507 .39 2.5.1.1 2.5.1.2 2.5.1.3 2.5.1.4 2.5.1.5 2.5.1.6 2.5.1.7 2.5.1.8 2.5.1.9 2.5.1.10 2.5.2 Management Organizational Structure 39 Analysis of Company’s Financial Potential 43 The Trademark of the Company 45 Analysis of Company’s Products and Services 45 Analysis of Company’s Human Resources 46 Company Culture 48 Production Technology and Equipment .48 Marketing capacity Competencies .49 The application of Information Technology at the Company .50 Recruitment of Sub-contractors and Suppliers 51 Analysis of Company 507’s Strengths and Weaknesses 52 Source: Cienco 507 Report 2010 .54 2.5.3 IFE Matrix 54 iii 2.5.4 SWOT Matrix 55 CHAPTER 3: RECOMMENDED STRATEGIES AND SUGGESTIONS FOR BUSINESS STRATEGY IMPLEMENTATION .57 3.1 Corporate Development Orientation .57 3.1.1 Vision 57 3.1.2 Mission .57 3.1.3 Business Philosophy 57 3.1.4 Strategic Goals 57 3.2 3.2.1 Business Strategy Selection .58 Rationale for Strategy Selection .58 3.2.1.1 Threats – Opportunities – Weaknesses and Strengths (TOWS) Matrix Analysis 58 3.2.1.2 SPACE Matrix .60 3.2.2 Strategy Selection 62 3.3 507 3.3.1 Recommended Business Strategy Implementation Options for Company 64 Company Equitization by 2012 65 3.3.2 Financial Solutions 66 3.3.3 Technological Solutions .66 3.3.4 Human Resources Solutions .66 3.3.5 Marketing Solutions 67 3.3.6 Joint venture, Affiliation and Partnership .68 3.4 3.4.1 Strategy Implementation Roadmap Timeline 68 Period 2012-2013 .69 3.4.2 Period 2014-2015 .69 3.4.3 Period 2016-2017 .70 3.4.4 Annual Budget Plans 70 CONCLUSION 71 REFERENCES 72 LIST OF FIGURES Figure Fig 1.1 Fig 1.2 Fig 1.3 Name Business Strategy Business Strategy Development Process External Environment iv Page Fig 1.4 Fig 1.5 Fig 1.6 Fig 2.1 Fig 2.2 Fig 2.3 Fig 2.4 Fig 2.5 Fig 2.6 Fig 2.7 Michael Porter’s Five Forces Model Mc Kinsey’s 7s Model SPACE Matrix Company’s Business Performance Results in 2008 – 2010 Inputs comparison in 2010 Organizational structure of Company 507 Comparison of productivity Capital Structure of Company 507 Company 507’s labour structure by educational levels Company 507’s labour structure by gender v 10 11 17 24 34 41 42 45 47 47 LIST OF TABLES Table Tab 1.1 Tab 1.2 Tab 1.3 Tab 1.4 Tab 1.5 Tab 2.1 Tab 2.2 Tab 2.3 Name Page External Factor Evaluation 13 Internal Factor Evaluation 14 SWOT Matrix 15 Competitive Profile Matrix 15 TOWS Matrix 16 Company 507’s Business Performance Results 23 Viet Nam’s GDP Growth Rate 28 Outputs Comparison among Leading Companies under Cienco in 34 Tab 2.4 Tab 2.5 Tab 2.6 Tab 2.7 2010 EFE Matrix CPM Matrix List of sub-units and investors Comparison of productivity between Cienco and other 37 38 41 43 Tab 2.8 Tab 2.9 Tab 2.10 Tab 2.11 Tab 2.12 Tab 3.1 Tab 3.2 Tab 3.3 corporation under the Ministry of Transport Company 507’s Financial ratios Company 507’s labour structure Company 507’s markets IFE Matrix SWOT Matrix SPACE Matrix QSPM Matrix Annual Budget Plans 44 46 53 54 54 60 61 70 vi EXECUTIVE SUMMARY Rationale Amidst Along with the current trends of global economic integration in Viet Nam, any local firm that wants to survive and maintain sustainable business development is required to develop an adequate corporate growth strategy In this regard, the study team has decided to select the theme “Developing corporate business strategy for Civil Engineering Construction Company 507 - CIENCO Business Strategy Developement at the Civil Engineering Construction Company Limited 507 (2012 – 2017)” for its capstone project Such a choice is supported by the fact that a member of the team is an employee of the Civil Engineering Construction Limited Liabilities Company 507 Civil Engineering Construction Company Limited 507 (called short as Company 507) – an independent accounting unit of the Transport Civil Engineering Corporation 5, under Ministry of Construction It is the team’s desire that the knowledge obtained from this MBA training course can be applied to the Management of the business strategy of Company 507, in line with the modern strategic administration approaches The team also plans to put forth recommendations for more efficient and effective management approaches to adapt to the global business environment, and the new development trends of the local economy and integration Objective The capstone project is aimed to provide in-depth analysis and assessment of the internal performance of Company 507, to identify its strengths and weaknesses, to analyze its external environment factors for determination of opportunities and challenges to the Company Such analysis and assessment will help the Company to craft appropriate business strategies for its future business development Methodology 3.1 Data Collection The paper taps on both primary and secondary data The primary data is collected mainly via interviews of the Company’s Board of Management and the observations of the team members who have been working with the Company for quite some time The secondary data is acquired through articles, internet, and the business performance reports of Company 507 and its mother Company – CIENCO 3.2 Data Analysis The collected data will be analyzed qualitatively and quantitatively , from which remarks on each line of the Company’s business, the opportunities and challenges to the Company will be delivered From those collected data, we will assess each company’s activities to identify the opportunities and challenges to the Company Some analytical tools learnt in this MBA training course such as the SWOT analysis, Michael E Porter’s five forces model, EFE matrix and SPACE matrix will be used for such analysis to provide the Company with better insight of its performance and craft an appropriate business strategy Value of the Capstone project This paper will provide the Company with an objective assessment of the external environment to its business operations, its internal business environment, and the importance of strategic business development On such basis, appropriate business orientation, and strategic measures can be recommended for more sustainable business growth for the Company in the period ahead On such basis, the company will setup appropriate directions and strategic solutions to implement the sustainable business growth Limitations Due to the fact that most of the needed data or information of Company’s performance is confidential and for non-disclosure, Due to the needs of nondisclosure of some company’s data and information, the team’s analysis tends to be more qualitative and reflexive of the team’s observations, without the supported data or information Structure of the Capstone project The paper is composed of three Chapters: Chapter 1: Theoretical background of the paper Review of litterature Chapter 2: Business performance of Company 507 Analysis on the Rationale of business strategy formulation for the Company 507 Chapter 3: Recommended strategic options and strategic development measures Recommended Strategy and Suggestions for Strategy implementation Opportunities (O) SO: WO: - Political stability Concentration Developing functional - Stable, high strategy will make strategies: Financial economic growth Company 507 become a strategy, HR strategy, rate; professional Company technology strategy, - Rapid urbanization in providing products to marketing strategy … to and high population customers such as: support the company growth rate; building civil structures, Business Strategies Good - Increasing state irrigation structure, Formulation and budget capital producing implementing the investment in civil constructional materials, Functional Strategies will and infrastructure real estate trading, and remedy the weaknesses, - High demands for transport infrastructure; and get full advantages of investment in and Market Development market’ opportunities to use of real estate strategy by expanding accomplish the company’ - Enter joint the branch network in goals ventures, affiliation, numerous provinces and and partnerships, cities nationwide, using increase capital Cienco5 trademark to capacity, improve form partnership with technology and other human resources; provide customers with - Start privatization increased utilities Companies and restrucre of the Company; -Developed information technology, ecommerce 60 to Threats (T) ST: WT: - Untransparent and The Concentration Withdraw Strategy: unprofessional strategy will make the Withdraw markets Company 507 to strategy: Withdraw on - Banks being become a professional time will help the prudent in lending company in the supply company minimize for construction of traditional products weaknesses and avoid projects such as traffic threats The company can - Multiple local and construction, irrigation also overcome the foreign competitors works, weaknesses and avoid with greater production building threats potential materials, real estate by associating with other - Obsolete business and especially potential partners and technology, on transport works This foreign partners Hence, administrative skills strategy will give the the Company can acquire and construction company full technologies, staff techniques advantages on its training, market present competitive expansion and make advatages and avoid the business more threats efficient By combining the Company 507’s internal factors (strengths and weaknesses) and the external factors (opportunities and threats), the team has been able to propose some possible strategies: - Product development strategy - Market Development Strategy - Concentration strategy - Strategic Withdraw 3.2.1.2 SPACE Matrix 61 SPACE matrix helps firms make strategic decisions: prudence, attack, protectiveness or competition, and determine the best strategy Group has identified the strategic position for Company 507 in the SPACE matrix as follows: Table 3.1 – SPACE Matrix Average score Score FS variable Financing capacity Business risks CA variable Distribution network Staff skills Trade mark ES variable 3 Notes Moderate, points Moderate, points -2.67 -3 -3 -2 Moderate, -3 points Moderate, -3 points Fairly good, -2 points -3.25 Political situation -1 Very good, -1 point Legislative system -3 Under improvement, -3 points Inflation, exchange rate, -5 Relatively difficult, -4 points bank interest rate Barriers to new entries -4 Moderate, -3 points IS variable Growth rate Fairly good, points Critical role in the Critical to the economy, economy points Capital size Fairly good, points Based on this table, we have the following formula: FS + ES = – 3.25 = -0.25 IS + CA = 5- 2.67 = 2,33 The matrix for Company 507 can be determined by the points in this SPACE matrix: FS 62 CA -5 -4 -3 -2 -1 00 IS -1 -2 -3 -4 -5 Competitive Strategy ES It is suggested in this SPACE matrix that Company 507 select the competitive strategy Other strategies such as prudent, protective or attack should not be applied to the Company as they will deprive the Company of the growth opportunities 3.2.2 Strategy Selection QSPM matrix is a tool to help a Company assess the best substitute strategy A strategy is selected via QSPM matrix as follows: Substitute Strategy Product Development AS Internal factors Product quality 0,15 Staff capacity, skills, and 0,1 professionalism Staff incentives 0,05 Financial capacity 0,2 Trade mark 0,15 Marketing strategy 0,05 Distribution network 0,05 Corporate managerial skills 0,05 Recruitment scheme and training 0,1 program 10 Added value in the customer 0,05 services 11 Added value of customer service 0,05 packages External Factors Political Situation 0,05 63 TAS Concentration Withdraw AS AS TAS TAS 0,6 0,4 0,6 0,3 0,45 0,4 0,15 0,6 0,45 0,15 0,2 0,2 0,3 4 0,1 0,6 0,6 0,1 0,2 0,1 0,3 3 0,1 0,8 0,45 0,15 0,05 0,4 0,1 0,2 0,15 0,2 0,1 0,1 0,2 0,2 0,15 Notes Factor Weighted Table 3.2 – QSPM Matrix Legislative system 0,1 0,4 0,3 0,4 Economic growth and foreign 0,1 0,4 0,2 0,4 investment Transport infrastructural 0,2 0,6 0,8 0,4 construction projects Urban population and 0,1 0,3 0,1 0,4 urbanization rate Demand for investment and use of 0,15 0,45 0,3 0,6 real estate Customers’ preferences 0,1 0,3 0,4 0,4 Technological development 0,05 0,2 0,15 0,1 Number of competitors 0,1 0,3 0,3 0,4 10 Barriers to new entries 0,05 0,05 0,15 0,15 Total 6,55 6,1 6,45 Although the Company is running business in many industries, but the field of transport construction and real estate business are the two main industries that the company focus on Based on the above analysis, we have made strategic Selections for the two fields: Construction of transportation and real estate business For the construction traffic field: the company has many advantages in this field such as experience, being known to be a reliable brand, good relations with ministries and departments in both central and local levels but the product of the company in this area is merely construction The Strategy that is best in this case is Product Development Strategy by develop the added services to its products such as: consultation, supervision, design, evaluation, testing, etc This strategy will get full advantages of the company to increase its competitive advantages against its competitors The company also focuses on investing new technology, comprehensive equipment, training for its employees, enhance brand promotion to meet the requirements of new missions For the real estate business field, the Company will implement the investment and withdraw strategy on time, regularly doing market research to make the right decision The company also plans to expand the provision of services such as real estate advertisements, market surveys, marketing and sales, management and other value added services The company is lack of experiences and not yet well64 known in this field So that, the company will setting partnerships with other professional domestic and foreign companies to provide comprehensive product packets in constructing commercial buildings, promote business transactions onlines through internet to create the convenience for customers The Company will establish strategic partnerships in the fields of design, architecture, interior and exterior, marketing activities with small construction companies as well as the big construction companies with wide business networks Of which: AS stands for attractive score and TAS for total attractive score QSPM matrix provides the priority order of the strategies, and product development is considered the best substitute strategy with the TAS of 168 points In short, the recommended strategy for Company 507 is product development strategy by designing and developing the associated services and e-commercial services in transactions with customers 3.3 Recommended Business Strategy Implementation Options for Company 507 The five-year planned objectives (2012-2015) is that the Company will grow to one of the leaders within Cienco on road engineering and real estate trading This means the Company needs to have adequate prestige and competitiveness for local and internal contracts To this end, recommended actions for the Company in period 2012 – 2017 are: The objective the for the next five-year plan (2012-2017) of the Company is being leading companies in CIENCO on the Infrastructural and real estate fields This means the company will have sufficient credibility and capacity to compete in tender of domestic and foreign projects In order to achieve that objective, the Company 507 have to get successful in implementation of the current projects on Infrastructural and real estate fields by its enthusiasm to affirm the reputation of the company on progress, quality, fine art, etc along with market development strategy (both domestic and foreign markets such as Southeast Asia) 65 To accomplish the above mentioned objectives, it is necessary for the Company 507 to enhance its employees’ professional skills, its financial capacity, technologies These are the three most important elements for the success of the future tenders and contract negotiations which increase the Company’ market share and competencies The detailed Strategy implementation during the period of 2012-2017 is as follow: 3.3.1 Company Equitization by 2012 - Company equitization and fund mobilization: through equitization, the Company will be able to restructure its operating funds, improve business outputs, and accountability in business performance management Besides, the Company should try mobilizing fund for technological innovation, production expansion and trademark projection - Equitization lets the company more active in its business based on the goal- oriented mechanism and open policies This will attract the high-quality employees, and motivate employees working more efficiency with higher incomes - Focus on building branches, factories as the core manufacturing units; invest and develop the operations throughout the country; - Promote close and equitable relations with other Companies in the Corporation, and develop sustainable competitiveness for the Company from 2017 onward 3.3.2 Financial Solutions - Enhance financial capacity for the Company by effective combination of real estate projects, residential complex and road structure construction project; - Strengthen and develop equity investments and expand business operations to services, commerce and tourism for increased revenues; 3.3.3 Technological Solutions - Invest in technological innovation, and new product development: The Company has made numerous investments in new equipment purchase, technological innovation, and knowhow improvements for enhanced product quality and better competitive advantages In addition to this, it is recommended 66 that the Company increase application of information technology in its management system for enhanced efficiency - Gradually improve the construction technology for transport infrastructure and develop management skills for construction projects; 3.3.4 Human Resources Solutions Along with the equitization, the Company 507 needs to restructure the company to reach the objectives of: enhance management procedure, professional level, human resources’ competencies include work enthusiasm and loyalty These includes reorganized departments and work forces, Downsizing, Training and coaching employees The number of employees will decrease, however, the professionalskills of employees will increase which leads to the increase in working performance Base on the business development strategy, the Company set up an objective of human resource development: “Building Human resources with appropriate quality and quantity, with high professional skills, loyalty to the Company, inherit the experience, knowledge, and traditional” The Company is lacking employees on marketing, price evaluation, marketing tendency and customer demands investigation, etc So that, the Company needs to establish a department which is include all the specialists to identify the solutions for market and marketing for the production activities In order to accomplish these objectives, the Company needs to: - Downsize staffing, and retain only qualified labour that meet the work requirements in the new context, especially those with formal trainings, high skills and multiple years of experience; - Develop and implement an appropriate compensation scheme, which can attract talents; use economic incentives combined with spiritual motives; - Recruit sufficient and qualified labour, especially those with intellectual and technical knowledge to meet the work requirements set in the Company’s new business strategies; 67 - Attract talents and hunt heads from Universities, vocational institutions, research institutions - Appropriate labour use by creating favourable conditions for the employees to bring out the best of their capacity and strengths - Training policy: apply flexible training policies, with strong emphasis on on- spot trainings or mentoring, i.e those more experienced and skills mentors the more junior staff; send staff to regular training and coaching course, and have incentives for them to attend technical and language courses for improved expertise; set aside a portion of the turnover (or profits) for annual training programs; 3.3.5 Marketing Solutions Launch advertising campaigns to project the Company’s image nationwide via the mass media, and in the completed and on-going construction projects; Advertising on Mass Media: - Television: advertise the Company’s products via short videos of the Company, that are broadcast in the popular channels with large volume of viewers; - Newspapers: advertise the information in the industry newspapers, and those with many foreign readers such as Heritage, Viet Nam News, etc - The Internet: develop the Company’s website with links to other websites to project the Company’s image; Direct Advertising to Clients - Send email/ letters to loyal and regular customers to market new projects of the Company; - Organize customers’ events and meetings, and pay attention to the Company’s important occasions such as staff appointment or project completion; Advertising in Projects’ Websites - Post banners, and advertising boards that provide information of the Company’s projects on the projects’ websites; - Place projects’ simulators near the place where the projects have impact on the customers; 68 Event sponsorship Marketing Event and sponsorship activities Organize workshops on investment, new products and market assessment reports; Write articles/ papers and sponsor social programs; Creating good company reputation to employees, sub-units, contractor, business partners on the progress, quality, and fine arts of its projects Attracting talent labor with the program named: “golden hands hunter and head hunter” at the universities, vocational schools, institutions The Company should approach innovation, new and updated technologies to ensure that its technologies are advanced technologies 3.3.6 Joint venture, Affiliation and Partnership In the current context of regional and global integration, it is recommended that the Company promote entry to joint venture and partnership with the existing players in the industry within and outside their Corporation, and with foreign partners to strengthen its financial and technical engineering capacity for bigger projects Such partnership will also help improve its bidding capacity and provide its staff with managerial and technical experience and skills 3.4 Strategy Implementation Roadmap Timeline During the progress of executing the above solutions, we are focusing on completing profiles for equitizing branches, factories in the second quarter of 2012, and equitizing the whole Company in 2013 This is one of the most important task at the Employees Meetings 2011 This event will affect all other fields such as finance and human resources Downsizing, restructuring organization chart, production, training and retraining employees, recruiting appropriate skill-eployees The Company should reform, supplement and replace some old mechanism and policies 3.4.1 Period 2012-2013 - Equitize Branches and factories in the second quarter of 2012, and equitize the whole Company by 2013 - Establish clear vision and mission; 69 - Establish management system with new applications, and apply technology in management and operations; - Recruit qualified staff, with priority to the experienced, highly qualified and dynamic personnel, who has worked in a similar foreign company; use personnel with sound interpersonal skills to sell products and develop the network - Establish suitable remuneration schemes for the employees; - Train and develop succeeding staff for the core personnel so that they are well prepared for the next period - Develop a transparent, professional and regularly updated management system - Promote to the best the creativity of the different groups for highest profits and award schemes to the agents - Create a competitive environment to motivate those capable and earnest individuals and determine the bonuses and salary based on their productivity; - Establish an internal atmosphere like a family, with the most efficient information sharing scheme for all the members; - Develop trademark and corporate culture for Company 507 3.4.2 Period 2014-2015 - In this period, focus on developing products and services; continuously promote advertising to project the image of Company 507 widely; diversify the sources of products provided by the Company - Provide real estate services to customers; develop investment consulting services; conduct market research and valuation of real estate projects; - Pay attention to drastic development of information technology for optimal efficiency; - Apply on massive scale exclusive but economical advertising methods; - Establish sales groups capable of counseling and selling services to customers, and market research groups (valuation and counseling) - Organize formal training programs; 70 3.4.3 Period 2016-2017 - Develop the network of agents/ branches in the projects of Company 507 and other investment projects; - Continuously tap on potential customers in the different business areas 3.4.4 Annual Budget Plans Table 3.3 – Annual Budget Plans Unit: VND million Items 2012 2013 2014 2015 2016 2017 Initial 479.000 550.000 637.000 680.000 700.000 755.000 investment cost Office and 4.500 4.900 5.000 5.800 6.000 7.000 Operational costs Marketing and 10.000 12.000 17.000 18.500 19.000 20.000 PR costs Total costs 493.500 566.900 659.000 704.300 725.000 782.000 Total expected 795.000 880.000 1.051.050 1.054.000 1.120.000 1.275.950 revenue Source: Group discussions with Cienco 507 management CONCLUSION The above is the entire content of the thesis “Development of Business Strategies for Civil Engineering Limited Liabilities Company 507 – CIENCO 5” This is a large thesis, covering all the aspects of the business operations of the studied Company Group has analyzed the external and internal environment of the Company, on which its strengths, weaknesses, opportunities and threats have been identified On the basis of the obtained knowledge from the Master of Business Administration Training course and the experience gained from the work experience in the company, and with the support of the Leaders of Company 507, the Group has put forth strategies and measures for the implementation of the strategies with the purpose to bring about more benefits to the Company in particular, and the society as a whole 71 REFERENCES Le The Gioi, Nguyen Thanh Liem, Tran Huu Hai (2007), Strategic management, Statistics Publish Houses, Ha noi Nguyen Thanh Hoi (1999), Human Resource Management, Statistics Publish Houses, Ha Noi M.E.Porter (1980), Competitive Strategy, Free Press NewYork Fred R David (2011), Strategic Management, Pearson Education Limited J.David Hunger & Thomas L.Wheelen (2001), Essentials of Strategic Management Construction Building Company 507, Report 2008, 2009, 2010, Ha Noi 72 Fred R.David (2006), “concepts of strategic management”, Statistics Publishers, company printing packaging & import export synthetic Website of General Statistics Office of Viet Nam http://www.gso.gov.vn Website of Ministry of Transport of Viet Nam http://www.mt.gov.vn 10 Website of Construction Building Company 507 http//www.ceco507.com.vn 11 Website http://www.brs-inc.com/porter.asp 12 Website http://www.valuebasedmanagement.net/methods_7S.html 73 ... organization of the International Training Course of Master of Business Administration for class GaMBA01.N06 The course has provided us with the essential knowledge in the field of business management... 5, under Ministry of Construction It is the team’s desire that the knowledge obtained from this MBA training course can be applied to the Management of the business strategy of Company 507, in... to identify the opportunities and challenges to the Company Some analytical tools learnt in this MBA training course such as the SWOT analysis, Michael E Porter’s five forces model, EFE matrix