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GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Subject: BUILDING THE BUSINESS STRATEGY OF VIETNAM CONSTRUCTION JOINT STOCK COMPANY NO 21 – VINACONEX IN THE PERIOD OF 2011 -2015, VISION BY 2020 Group No : 10 Class : GaMBA01 X0410 Student’s name : Nguyen Quoc Dung Ngo Van Dung Le Thi Thu Nguyen Thi Xuan Hoa Hanoi, November 2011 COMMITMENT We hereby commit that the contents of this capstone have not been submitted to any master’s degree program as well as other degree programs We also commit that this capstone is the attempts of all members in group 10 - GaMBA 01.X0410 All results, analyses, inferences of this capstone (excluding quoted parts) are the findings of our group SINATURE OF MEMBERS Nguyen Quoc Dung Ngo Van Dung Le Thi Thu Nguyen Thi Xuan Hoa ACKNOWLEDGEMENT We would like to thank Center for Educational Technology and Career Development (ETC), VNU, as well as lecturers and officials of the faculty for having wholeheartedly taught, guided and facilitated us during our study process at class GaMBA 01.X0410 for the course completion We also would like to express our gratitude to all teachers who have taught and guided us enthusiastically and responsibly in order to help us research and fulfill this capstone successfully Finally, we would like to thank Board of Directors and officials of departments from Vietnam Construction Joint Stock Company No 21 – VINACONEX for having created favorable conditions to help us collect factual data to fulfill this capstone Thank colleagues, friends and family for encouraging and supporting us Faithfully thank! TABLE OF CONTENTS PREAMBLE: Page The urgency of the subject …………………………………………………… Research objectives ……………………………………………………….… 10 Scope of research ………………………………………………………………10 Method of research ………………………………………………………… 10 Structure of the subject ………………………………………………… 10 CHAPTER 1: THEORETICAL FOUNDATION OF BUILDING THE BUSINESS STRATEGY ………………………………………………………………… …………………… 12 1.1 Theoretical foundation of strategy ………………………………………… 12 1.1.1 Concept of strategy ……………………………………………………… 12 1.1.2 Concept of strategic management ……………………………………… 12 1.1.3 Roles and tasks of strategic management …………………………………12 1.1.3.1 Roles of strategic management ……………………………………… 12 1.1.3.2 Tasks of strategic management …………………………………………13 1.2 Build the business strategy…………………………………………… .13 1.2.1 Vision, mission and objectives of the strategy ……………………………13 1.2.1.1 Strategic vision and mission ……………………………………………13 1.2.1.2 Strategic objectives ………………………………………………… ….14 1.2.2 Analysis of external environment……………………………………… 16 1.2.2.1 Analysis of general environment…………………………………………17 1.2.2.2 Analysis of industry environment ………………… 18 1.2.2.3 External Factor Evaluation - EFE Matrix ………………………… ….18 1.2.2.4 Competitive Profile Matrix (CPM) 17 1.2.3 Internal Factor Evaluation – IFE Matrix ………………………………….19 1.3 Selecting the business strategies ……………… …………………… 20 1.3.1 SWOT Matrix ………………………………………………………….20 1.3.2 IE Matrix (IFE - EFE)………………………………………………… 21 1.3.3 Quantitative Strategic Planning Matrix (QSPM)……………………… 22 CHAPTER II: ANALYSIS OF THE REAL SITUATION OF VIETNAM CONSTRUCTION JOINTSTOCK COMPANY NO.21 – VINACONEX……………… 25 2.1 Introduction about Vietnam Construction Joint-Stock Company No.21 VINACONEX ………………………………………………………………… ……25 2.1.1 History on the establishment and development of the company……….…25 2.1.2 Function and mission of the Company.……………………………………26 2.1.3 Organization chart ……………………………………………………….27 2.1.4 The current business position of the company ………………………… 29 2.1.5 The characteristics of the company ……………………………………… 30 2.1.6 The results of business activities of the Company ……………………….30 2.1.7 The development orientation of the company in the next time………… 31 2.2 Analysis of the external environment ………………………………………… 32 2.2.1 General environment ………………………… ………………………… 32 2.2.1.1 Population factor ……………………………………………………… 32 2.2.1.2 Economic environment………………………………………………… 33 2.2.1.3 Political environment, law and policy ………………………………… 33 2.2.1.4 Social – cultural environment ……………………………………………34 2.2.1.5 Technology factor ………………………………………………………34 2.2.1.5 Global factor ………………………………………………………….35 2.2.2 Industry environment.………………………………………………… …35 2.2.2.1 Internal competition …………………….……….… 35 2.2.2.2 Customers …………………………………………………………… 37 2.2.2.3 Suppliers… ……………………………………………………… … 38 2.2.2.4 Substitute products ……………………………………………………40 2.2.2.5 Barrier joining the industry …………………………………………… 40 2.2.3 Using EFE matrix to evaluate the external competitive factors 41 2.2.4 Using competitive profile matrix .………………………… …42 2.3 Analysis of internal environment …………………………………… …44 2.3.1 Human Resource ……………………………………………………44 2.3.2 Analysis of financial situation of the Company in 2008 - 2010………… 45 2.3.2.1 Assets and capital resource of the company ……………………………45 2.3.2.2 Financial indicator …………………………………………………….46 2.3.3 Analysis of management situation of the company ….………… …….48 2.3.4 Situation of using technology, facilities of the company ………………48 2.3.5 Analysis of Marketing activity of the company………………… …… 50 2.3.5.1 Activity of market research……… ……………………………… ……51 2.3.5.2 Activities of Communication, product distribution, price.………… … 52 2.3.6 Capacity of supervision ………………………………………………… 52 2.3.7 Internal factor environment evaluation (IFE Matrix) …53 CHAPTER III: SELECTION AND ESTABLISHMENT OF BUSINESS STRATEGY FOR VIETNAM CONSTRUCTION JOINT STOCK COMPANY No.21 – VINACONEX 3.1 Strategic goals of the Company period 2011 - 2015 and vision by 2020…… 55 3.1.1 Basis for goal setting ……………… ………………………………….55 3.1.2 Goals of the Company period 2011 -2015…………… ……………….56 3.1.2.1 Orientation of strategic goals…… ……………………………………56 3.1.2.2 Main goals…………… ……………………………………………….56 3.1.3 Vision by 2020 ………… ……………………………………………….57 3.2 Analysis of SWOT matrix… 57 3.3 Analysis of I-E Matrix… 59 3.4 Analysis of BCG matrix 60 3.4.1 Figures for BCG matrix……… 60 3.4.2 BCG matrix 61 3.5 Identification of business strategies of Vietnam Construction Joint Stock Company No.21 period 2011 – 2015………… 62 5.1 Cost leadership strategy 62 3.5.2 Focus strategy 62 3.5.3 Market development strategy (ST) .62 3.5.4 Diversification strategy 63 3.5.5 Market development strategy (QSPM Matrix) 64 3.6 Solutions to implement 65 3.6.1 Business solutions…….: 65 3.6.2 Financial solutions 65 3.6.3 Human resources solutions .66 3.6.4 Product solutions…… 67 3.6.5 Technology solutions 67 3.6.6 Schedule of implementation of business strategies………………………… 68 3.7 Estimation of revenue, budget and risks .69 3.7.1 Revenue estimation 69 3.7.2 Budget estimation 69 3.7.3 Risk forecast 70 3.8 Proposals 70 3.8.1 Proposals to Vietnam Construction Joint Stock Company No.21 70 3.8.2 Proposals to Vietnam Construction and Import - Export Joint Stock Corporation (VINACONEX) 71 3.8.3 Proposals to State 71 CONCLUSION .72 Appendix 01: Financial plan for the year 2011 - Vietnam Construction Joint Stock Company No.21 74 References 75 PREAMBLE 1.The urgency of the subject From 1986 to present, our country’s economy has made rapid, strong and solid progresses, our country transformed from a centralized economy based on administrative subsidies to an economy towards open market economy and economic integration regionally as well as internationally How enterprises can business successfully, profitably, not be bankcrupt, stand steadily in the market economy with severe competition, especially during the period of inflation, economic crisis as today In order to that, enterprises should maintain and strengthen the competitiveness, maintenance, expansion of products Therefore, missions are given: planning, building, implementing the development strategy, business production strategy which are extremely important, essential needs in order to help enterprises be sharp with the change of the market Also, enterprises should actively cope with risks, breakdown, failfure in business to exist and develop firmly Thus, not only our country but also global enterprises has attached much importance to build the business strategy and regarded it as the top mission Vietnam Construction Joint Stock Company No 21 – VINACONEX is directly under Vietnam Construction and Import-Export Joint Stock Corporation Its forerunner is II Architecture Company in Ha Tay found in 1969 During 42 years of establishment and development, the company has affirmed its position and prestige in the market, been trusted by customers inside and outside the city However, within the current context that the world economy as well as the domestic economy has met with a lot of difficulties, instability due to high inflation, post-economic crisis In order to maintain and expand the business market confronting with a lot of difficulties and challenges; in order to exist and develop, the company should take some long-term suitable business strategies in conformity with the change in the society, business production environment, to occupy the market, build the company to be more and more developed, contribute to the success and career of industrialization, modernization For all reasons mentioned above, Group 10 of GaMBA01-X0410 selects the subject: “Build the business strategy of Vietnam Construction Joint Stock Company No 21 – VINACONEX in the period of 2011-2015 and vision by 2020” with the aim of suggesting the most suitable business strategy for Vietnam Construction Joint Stock Company No 21 – VINACONEX in the period of 2011-2015 Research objectives Research the subject aims at: - Systematize and summarize theoretical matters of business strategy and building the business strategy - Help students obtain skills to practice building the business strategy of Vietnam Construction Joint Stock Company No 21 – VINACONEX - Analyze and evaluate opportunities, challenges, strengths, weaknesses of Vietnam Construction Joint Stock Company No 21 – VINACONEX - Build the orientation of the development strategy in the period of 2011-2015 and vision by 2020 for Vietnam Construction Joint Stock Company No 21 – VINACONEX Scope of research Scope of research is the business production environment of Vietnam Construction Joint Stock Company No 21 – Vinaconex in the period of 2008-2010 Method of research The subject has applied the following methods: Qualitative and quantitative approaches:  Method of comparison, analysis and synthesis: Analyze the data from the financial statements through periods, summarize and make comments  Method of matrix analysis to analyze and handle research results of environment, helping enterprises to make strategies scientifically, etc…  Statistical and analytical approaches: table statistics, then withdraw inferences of trends to evaluate the operation situation of the Industry and enterprises Structure of the subject 10 0.5 1.0 2.0 Civil construction, industry – transport 47.4 % Industry Sales Production of construction materials 13.2 % Growth Rate Real estate trading 35% 4.4% Hydroelectric - Hydraulic works % -2.0 Results of BCG matrix analysis show that: - Civil construction, industry – transport are taking the lead, it means that its market share is quite high and growth rate of the industry is also high, profit brought to the Vietnam Construction Joint Stock Company No.21 accounts for great proportion: 47.4% - Real estate trading is in Milk Cow area, the Company should maintain firm and strong position of this field for long run In nature, this is an activity attractive for investment but does not bring high profit, accounting for 35% revenue of the Company - Production of construction materials is in the Question Mark position, it has low market share but competes in the industry having high growth rate Demand for cash is great, thus depending on market prospects of this field the Company will consider whether to consolidate and develop it or not - Hydroelectric - Hydraulic works is in Dog position, it has very low market share and competes in a industry having low growth rate (no market) thus the Company should 62 withdraw from this market Because this industry is related to civil and industrial engineering, road and bridge, it only takes advantage of experience, qualification of engineers and skilled workers, etc However, we did not take advantage of technology and modern equipments because they are expensive specialized equipments such as rock drill BM6÷12, tunnel drill PA100, tower crane MD900, etc Technology is also a new sector for Vinaconex 21: most of hydroelectric plants use mass concrete, low-setting, with additive ”fly ash”, concrete mixing and batching plant with much-invested continuous line We found that if Vinaconex 21 continues maintaining hydroelectric and irrigation works, the company shall invest a huge sum of money and it is only subcontractor in the contractors group in which the general contractor belongs to strong group in such field such as Song Da Corporation, Licogi, etc Therefore, we proposed Vinaconex 21 summarize and withdraw from this business line 3.5 Identification of business strategies of Vietnam Construction Joint Stock Company No.21 period 2011 - 2015 - Through analysis of matrixes, we have selected business strategies of Vietnam Construction Joint Stock Company No.21 period 2011 – 2015 Base on combining strengths and opportunities to overcome weaknesses and threats, we have selected following business strategies: 3.5.1 Cost leadership strategy: goal of this strategy is that products of the Company in the market have model, quality, standard accepted by consumers, but the cost is lowest which means that the cost must be equal or lower than cost of its rivals 3.5.2 Focus strategy (real estate trading) (SO):- Advantages of the Company is that: The Company has been operated for long time (42 years), has good relationship with State’s agencies; its construction products are apartments, villas which are designed and executed suitably with culture and taste of Vietnamese people such as: Phu Thinh urban area project– Son Tay town – Hanoi, Ba La apartment block project – Ha Dong, etc.; these projects are not in inner Hanoi, they only use materials of which price is suitable with almost Vietnamese people 63 It means that these projects focus on customers with medium income In addition, Ha Dong and Son Tay are areas where office of the Company is located, thus it will have advantage in relationship with local authority 3.5.3 Market development strategy (ST): to bring into full play of strengths of the Company such as consistent and good quality machines and equipments, managers and officers are experienced who can manage and run an execution team being far away of the Company Thus, the Company needs to bring into full play of these strengths by market development strategy for construction and industrial works, road and bridge construction, hydroelectricity and hydraulic work construction in the Central region and South of Vietnam, as competitiveness in construction and erection in these regions are less fierce 3.5.4 Diversification strategy: advantages of the Company are construction of works such as road – bridge, hydroelectricity-hydraulic, real estate trading, production of construction materials In each business field, the Company has experienced and competent managers, skilful staffs, thus its products gain prestige in the market Currently, Vietnam is on the stage of international integration, thus it has chances to acquire new execution methods of high quality and reasonable price In fact, products of constriction and erection field, production of constriction materials and real estate trading have connection with one another, thus the Company can choose concentric diversification strategy To quantify feasibility of strategies, we use QSPM matrix to analyze, specifically as follows: 64 Table 3.5: QSPM matrix Key factors Internal factors Product’s trademark Product’s quality Market share Human resources Finance capability Management capability Technology External factors Socio-politics Market’s demand State’s policies Development of technology Competitive pressure Fluctuation of price High interest rate Total Weight Cost leadership strategy Selected strategies Focus strategy Market development strategy AS TAS AS TAS AS TAS 2 4 2 1 3 4 2 2 2 2 2 2 2 2 1 2 47 45 Diversification strategy AS TAS 2 3 3 12 1 2 2 4 1 52 1 63 Results of analyzing quantitative strategic planning matrix QSPM base on attractiveness of factors in EFE matrix and IFE matrix We can see that the diversification strategy has highest points (63) thus this is the best strategy, the next is the market development (52 points) So we choose following strategies which are business strategies of Vinaconex 21 because: - Concentric diversification strategy (diversification of fields which relate to one another) to bring into full play of experiences and execution of works, real estate investment, and production of constriction materials - Market development strategy has total point of 52 points, and this is also selected as business strategy of the Company period 2011-2015 Indeed, as said above, diversification strategy will bring into full play of competence of officers and engineers who have experience in the industry, of skilful workers who have gone through many projects, the Company can also have ability to mechanical execution to accelerate progress of the construction work, quality and reduce cost of products; the Company can have chance to apply new and advance 65 execution science – techniques such as precast beam, pulling tube of force or executing flat reinforced concrete floor, etc These products have advantages in term of cost reduction, as the Company can use only one group of officers, workers and same machines and equipments to execute construction works, hydroelectricity and hydraulic works as these fields have relation with one another Selection of market development strategy as for this strategy the Company will utilize their strengths such as execution experience and sufficient machines and equipments and the Company can expand their market into the Central and South region which have quite low competitive intensity 3.6 Solutions to implement: 3.6.1 Business solutions: - The Company continues to boost the execution of works such as housing and office for lease in Ba La, Phu Thinh housing project (Phase 2) - Invest in real estate trading: including new housing projects, build houses for low income people, apartment block period 2012-2015 in Ha Dong district, Son Tay town, Hanoi city with total investment of 1,900 billion dong - Produce construction materials: Invest in modern line producing unborn brick in Cam Thuong, Ba Vi – Hanoi with total investment of 40 billion dong - Expand business market of the Company in localities such as Hanoi city, Quang Ninh province, Thanh Hoa province and other provinces - Well carry out approved business plans; adjust these plans so that they will match with market’s demands 3.6.2 Financial solutions: - Increase chartered capital of the Company from 17 billion dong to 40 billion dong in 2012, 100 billion dong in 2014 and 150 billion dong in 2015 - To increase the charter and actively build business strategies, the company should plant to acquire 8670 shares held by the Corporation equivalent to VND 8.67 billion, by 51% charter 66 capital of Vinaconex 21 By implementing this solution, the Management Board of the company actively establishes and adopts business plans, takes advantage of opportunities to increase the charter capital, initiative in capital, reduce short-term loan pressure, etc This is also a solution that improves the accountability of shareholders, especially those holding large shares in favor of the shareholders - Apply financial management model following Subsidiaries model Its goal is to establish subsidiaries under the Parent Company by 2012 - Restructure capital source, reducing the ratio of debt /equity to bring into full play of operation lever and sponsor lever - Deduct annual profit to add to equity - Make payment and final settlement completed projects to recover capital to add to working capital of the Company which is expected to be 50 billion dong in the second quarter of 2012 - Find ways to get access to long term loans of banks 3.6.3 Human resources solutions: - Re-arrange production teams directly under the Company, establish subsidiaries in the Company which have legal entity and their account, operating under the model of Parent – Subsidiaries Company Establish Subsidiaries in 2012, Subsidiaries in 2015 with contributing capital from Parent Company - The Company needs to implement solutions to improve quality of human resources such as: training to improve skills for workers once a month, dispatch competent officers to attend training course to promote their professional skills - Have good treatment policies to attract competent and experienced managers, engineers and workers in other Companies in the market to work for the Company, ensure current demand of the Company for labor force, as well as in the long run meet business strategies of the Company period 2011-2015 and vision by 2020 67 - Suitably assign works for managers, engineers and technical officers, etc, encourage self control, creativeness and create friendly atmosphere for Unit and Divisions in the Company - Have wage, bonus, training mechanism, management capacity building for all staffs and officers in the Company 3.6.4 Product solutions: - Market research and development need to regularly update useful information about demands, main products produced by the Company to best serve for forecast activities so that the Company can expand market upcoming years such as new materials (i.e unbent brick instead of traditional brick, essential demands of some households for low-income houses, suitable area of each flat) - The Company should boost the advertisement, marketing its products in mass media as well as website of the Company… - Price of products: Price of products are always cared by customers, thus the Company should have improvement in patterns, cost management, quality ensuring so that products will have most reasonable price, ensuring profit for the Company and being accepted by customers 3.6.5 Technology solutions: - Invest in modern machines and equipments, bring into full play of efficiency of using machines and equipments - Strengthen the application of scientific and technological advancement to come to take command of advanced technology in construction execution, improve quality of products and services, reduce production cost, reduce cost of product, seize control of market in terms of new technology and technique, build high rise building, road and bridge…by new methods, it should be equipped with modern equipments such as pillar crane, static concrete pump, sliding scaffold meeting advanced technology of the world in execution to ensure speed, high quality, reduced cost and labor safety - Invest in advanced lines and equipments of the world (such as Germany, China in producing un-burnt brick) 68 - Consolidate execution equipment management team of the Company to manage and maintain execution equipments for the whole Company, account for units inside and outside the Company, hire execution machines and equipments, improve efficiency of using machines and equipments 3.6.6 Schedule of implementation of business strategies No Business strategy 2011 Implementation time 2012 2013 2014 2015 I Diversification strategy Construct un-burnt brick plant - Make pre-feasibility report - Carry out the project - Operate the plant Buy quarry to exploit in Phu Ly (Vinanconex 34) Negotiate to sign purchase contract Make payment and receive the plant -Production and sale II Market development strategy Market in the Central region Investigate the market Implement hydraulic project in Nghe An Traffic way project in Quang Binh Market in the South Execute hydraulic works in Quang Nam Execute constriction items in Ninh Thuan atomic power plant 3.7 Estimation of revenue, budget and risks: 69 3.7.1 Revenue estimation: (having been calculated in 3.3) Table 3.7.1 Main estimated indicator of Vietnam Construction Joint Stock Company No.21 VINACONEX from 2011 - 2015 No Indicator Revenue (billion dong) After tax profit (billion dong) Annual dividend division (%) 2011 591.3 17.74 15 2012 671.7 20.15 15 2013 763 26.7 15 2014 866.8 30.34 15 2015 985.0 39.4 15 3.7.2 Budget estimation: - Pursuant to revenue forecast of the Company in which annual growth is 1.136 against the year 2010 - Pursuant to Appendix 01 forecasting financial planning of the Company in 2011 (when chartered capital is 17 billion) We can see: + Capital source in 2011 = 522.2 billion against the year 2010 with capital source of = 459.58 billion Thus capital source increases 522.20 /459.58 =1.136 times + Equity of the Company in 2010 was 41.58 billion; Equity in 2011 is 53.23 billion Thus equity increases 53.23/41.58 = 1.28 times Forecast of increasing chartered capital: in 2012, 2013 chartered capital will be 40 billion, in 2014 100 billion, in 2015 150 billion Base on above figures we can estimate budget of the Company period 2011-2015 as follows: 70 Table 3.7.2 Capital source estimation of the Company period 2011 -2015 (unit: billion dong) No Indicator Capital source (billion dong) In which: -Equity - Other mobilized capital sources 2011 522.2 2012 593.2 2013 673.0 2014 764.5 2015 866.5 53.23 468.9 91.8 501.4 111 562 197.5 567 281 585.5 3.7.3 Risk forecast: Some risks may arise during strategy implementation: - Change in State’s policies: Limit capital in construction works and projects using State’s budget, and works using foreign loan - Inflation is high, the State tightens credit, thus it is difficult for enterprises to access to loans The Company used too much loans from unfavorable business environment 3.8 Proposals: 3.8.1 Proposals to Vietnam Construction Joint Stock Company No.21: - Speed up recruitment, re-allocate human resources to bring into full play of competence of staffs and officers in the Company, bring into full play of activeness and creativeness of staffs and officers in the Company, have policies to encourage competent and experienced managers to stay with the Company Bravely authorize rights and responsibilities for junior officers, increase wage and bonus for staffs and officers in the Company - Arrange and re-stabilize decentralized units of the Company, build them into subsidiaries having their own seals, operating in different fields and areas to expand business area of the Company These subsidiaries will ensure stable and sustainable development to occupy the market 71 - Establish organization and management model between Board of Leaders with functional divisions and subsidiaries to improve roles and responsibilities in close coordination between Board of Leaders with functional divisions and subsidiaries - Improve enterprise management, pay attention to carefully manage expenses, finance and accounting, ensure adequate capital sources for business and production, have plan to increase equity such as: Mobilize idle capital from staffs and officers, issue shares to increase chartered capital of the Company Establish reasonable financial structure between equity and other capital to avoid risks - Boost the application of new technology and modern equipments in construction, management of the Company, reduce cost and increase production and business efficiency - Exercise reward policies regularly, promptly to motivate staffs act as good examples in the Company, in order to create friendly atmosphere to improve annual business and production efficiency 3.8.2 Proposals to Vietnam Construction and Import - Export Joint Stock Corporation (VINACONEX) - The Corporation should focus on overcoming difficulties and support the Company to have adequate capital source for production and business upcoming years - Support the Company to expand business market, at the same time set up suitable management model so as to meet today development demands 3.8.3 Proposals to State To implement development strategy for construction industry in Vietnam in general, the State should have proper policies to encourage the construction industry to develop -The State should have proper mechanisms and policies to create conditions for construction enterprises to get access to preferential loans to implement housing projects for the low income - The State should have mechanisms and policies to remove difficulties of enterprises in land reclaim, site clearance, and create “clean” land fund to implement construction projects 72 CONCLUSION In the context of market economy with intensive integration and fierce competitiveness like today, it requires enterprises to improve their competitiveness in the market To successfully this, task of planning, establishment and implementation of business strategies of enterprisers are important tasks Business strategy planning is significant for enterprises and an efficient scientific method for enterprises to efficiently use their existing resources to bring highest economic performance, at the same time it shows existing problems in their enterprises so that they can have prompt solutions in order to improve business performance On the basis of analysis external and internal factors, strengths and weaknesses of the Company as well as opportunities and challenges of enterprises nowadays, base on analysis results; we have identified business strategies for Vietnam Construction Joint Stock Company No.21 – VINACONEX period 2011 – 2015, namely operation diversification and market development To implement above strategies, the Company needs to: - Improve competitive capability of the Company in the market - Focus on developing and expanding market in Hanoi city and neighboring provinces - Establish joint venture; cooperate to expand business and production activities in: construction, real estate trading, and production of construction materials - Intensify relationship with suppliers to have a firm supply of input materials for the Company - Consolidate relationship with customers, especially traditional customers in order to maintain and expand consumption market - At the same time set reasonable solution for human resources development, finance, technology, business, etc to support for the development of the Company - The Company can expand their business fields period 2016-2020 according to selected strategies to achieve set goals During strategy implementation, the Company should always 73 inspect, assess and adjust its strategies so as to match with environment, business and production conditions so that business strategies can be beneficial for the Company Planning business strategies for the Company is a difficult task With limited studying ability and limited time, it is unavoidable to make mistakes and have shortcomings in the thesis, thus Group No 10, Class GaMBA01 - X0410 really hope to receive contribution ideas of Lectures and classmates so that our thesis will be further complete 74 Appendix 01: Financial plan for the year 2011 - Vietnam Construction Joint Stock Company No.21 (Unit: billion dong) Forecast for 2011 No 10 11 12 10 11 12 13 14 15 16 Income report Net revenue Cost price of goods Depreciation Total operation cost earnings before interest and taxes EBIT Interest rate Earnings Before Tax EBT Tax Profit before preferred dividend Net income NI Common dividend Augmenter RE Balance sheet Assets Money Short term receivables Inventory Other short term assets Short term assets Net fixed assets Total assets Capital sources Short term borrowing and debt accounts payable Periodical debt Total short term debt Total long term debt Total debt Common share Capital stock surplus Contingency funds Retained earnings Capital source Demand for adding capital 2010 520.5 483.68 10.04 493.72 26.78 Forecast factor 1.136 1.136 1.136 Step 1st adjustmen t 591.3 549.5 11.4 560.9 30.4 Approve d 591.3 549.5 11.4 560.9 30.4 591.3 549.5 11.4 560.9 30.4 15.8 14.6 15.8 14.6 11.52 15.26 11.5 18.9 3.87 11.391 4.7 14.2 3.65 10.5 3.65 10.5 11.391 2.38 9.01 14.2 2.55 11.65 10.5 2.55 7.95 10.5 2.55 7.95 29.8 143.4 305.4 13.8 492.4 29.8 522.2 29.8 143.4 305.4 13.8 492.4 29.8 522.2 29.8 143.4 305.4 13.8 492.4 29.8 522.2 160.0 160.0 128.4 114.5 402.9 66 468.9 17 3.3 8.18 24.75 522.3 128.4 114.5 402.9 66 468.9 17 3.3 8.18 24.75 522.3 26.23 126.2 268.8 12.1 433.34 26.22 459.56 1.136 1.136 1.136 1.136 1.136 149.2 113 100.8 362.8 55.15 418.0 17 3.3 8.18 13.1 459.58 149.2 1.136 1.136 128.4 114.5 392.1 55.15 447.3 17 3.3 8.18 24.75 500.53 21.67 4.3 Step 2nd adjustm ent 10.83 10.83 75 REFERENCES Vietnamese: PhD Bui Danh, MBA Nguyen Van Dung, MA Le Van Khoi (2011) Strategic Management PhD Nguyen Sy Thuong (2011) Textbook of Financial Management Basis Global Advanced Master of Business Administration Program, Strategic Management subject, Hanoi 2011 Income Statement (Audited) of Vietnam Construction Joint Stock Company No 21 VINACONEX 2008,2009, 2010 Resolution of the 20th Party Committee Congress of Vietnam Construction Joint Stock Company No 21 - VINACONEX (2010 - 2015) English: Fredr.David, (2006),concepts of Strategic Management Michael e porter,(2008), Competitive Advantage Charles d.schewe & ander hiam (2011), The portable MBA in marketing 76 ... degree programs We also commit that this capstone is the attempts of all members in group 10 - GaMBA 01.X0410 All results, analyses, inferences of this capstone (excluding quoted parts) are the... for having wholeheartedly taught, guided and facilitated us during our study process at class GaMBA 01.X0410 for the course completion We also would like to express our gratitude to all teachers... success and career of industrialization, modernization For all reasons mentioned above, Group 10 of GaMBA01-X0410 selects the subject: “Build the business strategy of Vietnam Construction Joint Stock