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CAPSTONE PROJECT REPORT FORMULATING STRATEGY FOR DONGA PAINT JSC., IN THE PERIOD 2012 - 2016 Nguyen Van Thanh Mai Anh Tam Nguyen Thi Thu Luong Vu Trong Khiem Phan Thi Vinh CLASS: GaMBA01.X0409 HANOI, 2011 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT FORMULATING STRATEGY FOR DONGA PAINT JSC., IN THE PERIOD 2012 - 2016 Group Number: Student’s name: Nguyen Van Thanh Mai Anh Tam Nguyen Thi Thu Luong Vu Trong Khiem Phan Thi Vinh CLASS: GaMBA01.X0409 HANOI, 2011 TABLE OF CONTENT PAGE VERIFICATION AND ASSESSMENT OF DONG A PAINT COMPANY ACKNOWLEDGEMENT LIST OF TABLES LIST OF FIGURES AND GRAPHS INTRODUTION 1 The necessity of new strategy Objective and scope of the study Methodology of the study Structure of the capstone Chapter THEORY OF STRATEGY MANAGEMENT 1.1 CONCEPT AND CLASSIFICATION 1 2 4 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.2 Concept of strategy management Roles of strategy management Basic characteristics of strategy management Superior returns model Several types of strategy in a company 1.1.5.1 Business strategy 4 6 1.1.5.2 Corporate strategy FACTORS IMPACT ON BUSINESS STRATEGY 1.2.1 Analyze external environment 1.2.1.1 Macro environment (PEST ++) 8 1.2.1.2 Industry environment (five forces model) 1.2.2 Analyze internal environment 11 1.2.2.1 Tangible (fixed assets, finance capital, technology, 11 1.2.2.2 1.3 etc.) Intangible (knowhow, competitive advantages, etc.) 11 BUILDING MATRIX TO SELECT BUSINESS STRATEGY 11 1.3.1 External Factor Evaluation Matrix (EFE) 11 1.4 1.3.2 Internal Factor Evaluation Matrix (IFE) 1.3.3 Competitive Profile Matrix 1.3.4 SWOT Matrix IMPLEMENTION OF BUSINESS STRATEGY 12 13 13 15 1.4.1 Organization and implementation 1.4.2 Evaluate the effectiveness 1.4.3 Adjust if it is necessary Chapter ANALYZING REAL SITUATION OF DONGA PAINT 2.1 INTRODUCTION OF DONGA PAINT 15 16 16 17 17 2.1.1 The process of establishment, organization structure and 18 2.2 it’s speciality 2.1.2 Situation and business performance from 2008 to 2010 19 ANALYZING SITUATION AND BUSINESS SITUATION OF 19 DONGA PAINT 2.2.1 Analyze external environment 2.2.1.1 Macro environment 2.2.1.2 Paint Industry environment (five forces model) 2.2.2 Analyze internal environment 2.2.2.1 Human Resources & Human Policy 19 19 25 31 31 2.2.2.2 Financial Status 2008 - 2010 31 2.2.2.3 Technology and production management 38 2.2.2.4 Distribution range and marketing policy 40 2.2.2.5 Other factors (trade mark, firm culture, … ) 42 2.2.3 Matrix to select business strategy 2.2.3.1 External-Internal factor evaluation matrix 42 42 2.2.3.2 SWOT matrix 48 2.2.3.3 Competitive Profile Matrix 55 Chapter IMPLEMENTATING STRATEGIES AND SOLUTIONS 3.1 TARGET, STRATRGY AND VISION OF DONGA PAINT 57 57 3.2 3.1.1 Targets in years (2011-1013) 3.1.2 Strategy in years (2011-1016) 3.1.3 Vision in 10 years by 2021 PROPOSAL FOR SELECTING STRATEGY IN DONGA PAINT 60 60 60 61 (business strategy and/or corporate strategy) 3.2.1 Bases for selecting 3.2.2 Determination of business strategy 3.2.2.1 Business strategy 3.2.2.2 Corporate strategy 61 62 62 63 3.3 SEVERAL KEY SOLUTIONS FOR IMPLEMENTATION 3.3.1 Solutions on production management 65 65 (advantages and disadvantages, conditions to apply) 3.3.1.1 Input and materials 3.3.1.2 Technology and Researching new products 66 66 3.3.1.3 3.3.1.4 67 68 Production Process Safe Management (Fire, Pollution,…) 3.3.2 Solutions on marketing management 68 (advantages and disadvantages, conditions to apply) 3.3.2.1 Products 3.3.2.2 Customers 3.3.2.3 Distribution Range 3.3.2.4 Customer Policies 3.3.2.5 Internal Sales Handbook 3.3.2.6 Other issues 3.3.3 Solutions on human resource management 68 69 70 71 71 72 73 (advantages and disadvantages, conditions to apply) 3.3.3.1 Non-Financial Solutions 3.3.3.2 Financial Solutions 3.3.3.3 Salary Regulations and Human Policy 3.3.4 Solutions on financial management 73 74 74 74 (advantages and disadvantages, conditions to apply) 3.3.4.1 Funds Management 3.3.4.2 Shareholders Equity Management 74 75 3.4 3.3.4.3 Leasing or purchasing 3.3.4.4 Accounting Methods 3.3.4.5 Other issues 3.3.5 Solutions to IT Management 3.3.6 Solutions to firm culture RECOMMENDATIONS TO THE PAINT ASSOCIATION 75 76 76 76 76 77 3.5 RECOMMENDATIONS TO VIETNAMESE GOVERNMENT 77 3.6 EXPECTED RESULTS 3.7 EVALUATING AND ADJUSTING STRATEGY CONCLUSION REFERENCES 77 78 78 80 ACKNOWLEDGEMENT We would like to express our sincere thanks to the team of lecturers who have delivered to us valuable knowledge and understanding through 12 main subjects and foundation subjects of the MBA training program, our special thanks to Lecturer Anthony and Lecturer Dr Vu Thanh Hung, who directly guided and assisted us in approaching a standard method of strategy formulation In addition, we highly appreciate the enthusiastic assistance of the Management Board and key members of DongA Paint in facilitating us to explore the company’s relevant data We would like to thank our colleges, friends and relatives for their direct and indirect assistance during our completion of this capstone report We wish everybody good health, success and happiness With our sincere thanks Group 8, Class X0409, Griggs LIST OF TABLES PAGE Table 1.1.4 Superior returns model Table 1.3.4 SWOT Matrix Table 2.2.1.1a Industrial production value by economic sectors Table 2.2.1.1b Vietnam’s Economic indicators Table 2.2.1.1c Vietnam Population and Urban Unemployment Table 2.2.1.2a Monthly development index of industrial production Table 2.2.1.2b Consumption Index of Processing Industry in each 15 20 21 23 26 27 month Table 2.2.2.2a BALANCE SHEET Table 2.2.2.2b INCOME STATEMENT Table 2.2.2.2c A SUMMARY OF KEY FINANCIAL RATIOS Table 2.2.2.4 Development of new products and VIP customers Table 2.2.3.1a EFE FOR DONGA PAINT Table 2.2.3.1b IFE FOR DONGA PAINT Table2.2.3.1c IE factors Table2.2.3.2 SWOT Matrix Table 2.2.3.3 COMPETITIVE PROFILE MATRIX Table 3.1 ESTIMATED INCOME STATEMENT 33 35 36 41 43 45 47 53 56 58 LIST OF GRAPH AND FIGURES Chart 2.1.1 Chart 2.1.2 Graph 2.2.1.1c Graph 2.2.1.2 Diagram 2.2.2.3 Figure 2.2.3.1 Organization Chart of DongA Paint Growth of DongA Paint until 2010 Foreign Exchange Rate Life Cycle of DongA Paint Production Line IE matrix 18 19 22 28 39 46 INTRODUCTION The necessity of new strategy Dong A Paint company got the license for establishment in late 2006 but actually started its operation since 2008 when the overall economy of Vietnam was depressed with high inflation and overheated growth of credit Thanks to some advantages, DongA Paint has developed successfully with revenue growth rate of more than 200%/year and its profit in 2010 was 3.3 times higher than it in 2009 Its relative market share in comparison with the biggest competitor in the market is estimated to expand from 3.3% in 2010 to 6% in 2011 However, currently DongA Paint is operating spontaneously, all staff is working based on their own ideas Being a new and small-scale company financed by leaders and their close friends and partners, the company is maintaining a very strong internal solidarity However, when DongA Paint grow to a certain level, a clear, proper and flexible strategy is needed to ensure all staff work and move toward a same direction The divergence of directions in the company may lead to the undermining the strength of available resources, failure to take advantage of market opportunities and running into undeserved troubles Five years is an important time to evaluate the course of establishment and operation of the company, define its position in the market and design a strategy for the next stage In the Shareholder meeting in May 2011, many shareholders raised the need of an explicit strategy to help them to consider their decision of further investment 2.Objective and scope of the study The same as many other Vietnamese companies, DongA Paint has never analyzed its resources, internal and external environments to set up a development strategy professionally Perhaps, to make some important decisions, DongA Paint has based on some special factors but never reach an overview of the company’s position Through this capstone, we expect to offer DongA Paint an effective and feasible strategy for its professional development during the next five year and the vision for 10 years and more in condition of changeable world with globalization trend  Conducting statistical observation of workers’ performance to standardize necessary actions, avoiding superfluous ones which may cause wasting of time, mistakes, and affect product’s quality There are charged services we can refer to if our manager is not able to carry out such observation  Establishing joint-venture, alliance or contracting manufacturing for renowned brand names to learn from their technology, to capture the essence of management styles from them 3.3.1.4 Safety (Labor safety and environmental issues)  Building a system of regulations, policies on labor and environment safety according to international and Vietnam standards  Offering full-time and on-duty training courses about labor and environmental safety  Building the machine lines and infrastructures guaranteeing labor and environmental safety 3.3.2 Solutions on marketing management 3.3.2.1 Product:  Manufacturing primarily popular products (at least 90% of output), detecting the colors that are in prevailing trend as well as the emerging trend Diversified normal product lines by changing methods of material combination and additives use  Distributing (limitedly) special product such as “limited or exclusive edition”, artistic products which sell at high price exclusively for a small fraction of consumer such as natural product like healthcare infrared paint, anti-bacteria, fragrant paint…etc  Products aim at female consumers, not necessarily by designing new product but by changing the consumer access schemes 66  Making some “special or unique” products to create highlighting points, such as decorating a special work with special paints like the ways fashion companies design special clothes which is not common or usable in real life but only for performing and displaying purpose 3.3.2.2 Consumer Positioning  Common products of DongA Paint aim at easy consumer with below- average and average-income in urban area, in resident area, remote areas where imposing distributing systems of construction materials, which belonging to the fifteen companies that is related  In order to ensure safe and effective business, the customers who have good financial capacity but lack working capital such as construction contractors, major distributors with wide network of relations, interior decoration and house painting service providers,should be targeted This way of doing business is beneficial both for customers and DongA Paint itself as the cost paid by customers and earned by DongA Paint for delayed payment is lower than market loans’ interest rates but higher than return on capital spent for other purposes, This is a win-win situation as it can help the company attract customers as well as showing the company’s sympathy towards them in their difficult time  Customers who are financed by state budget through different capital channels for construction, macro and micro-renovation should be also targeted  Female customers with above-average-income should be more focused as they are increasingly earning more than males and becoming the main person in family who can make important decisions relating to house building or renovation, interior decoration These consumers might be more ignorant about paint, so that they might like package service  It should be also targeted to customers with special orders, generously pay high price but out of concern to big companies as they are only a tiny market portions, out of main business scheme, which will take a lot of expenditure to serve and unsuitable to the companies’ management program 67 3.3.2.3 Distribution range Domestic:  Sharing the channels with fifteen constructing material companies as they relate to us in terms of possession  Develop new distributors and discounting for involving constructing companies  Avoiding distributors located close to each other as their market will overlap causing to fighting among distributors such as low price to attract customers Each market area is defining referring to the nearest distributors’ opinions so as to guarantee benefit to distributors and the flow of products to markets The most likely risk is an incompetent distributor causing a gap in the market This can be solved by imposing minimum revenue to distributors, without reaching the number in a particular period the distributors will be replaced according to previous related agreement between two parties  Locating distributing office near the manufacturing site, acquiring an active status in transporting facilities in order to ensure that the delivery always arrive safely and timely at the lowest price Overseas (after 2012)  General opportunities for exports: the concern of a polluted environment, a downturn economy make consumers to save more so they may prefer imported products of relatively good quality without harming health and environment at competitive price Moreover, DongA Paint has the advantage of a 100% private company which in the eye of foreign partners would be more reliable as to them non-state enterprises are more transparent and having stronger commitment from leaders  Opportunity to penetrate into Japan market is high as export and import from Japan is tax-free according to Vietnam- Japanese Bilateral Agreement Japanese also share some natural features similar to Vietnam such as both have sea, and both are Asian countries It is recommended to aim at Japan commercial 68 company majoring in distributing paints and supporting products as this can help pushing sale and saving of marketing spending  Laos and Cambodia: Using monition units as intermediates as those have considerable influence in the countries  Global: Painting is not the object of the prevailing globalization trend as weather differs in every region Price and local demands are putting pressure on the world DongA Paint has to solve this problem before entering a new market where natural conditions is different 3.3.2.4 Customer Policies (distributors and direct buyer for construction)  Maintaining and developing the policy of “distributor get 9- DongA get 1” in distributing sale profits Virtually distributors of DongA paint gain double unit profit in comparison to distributing products of other brand names  Special caring policy should be applied to big and regular customers in special occasions such as holidays, birthdays, etc … Annually, giving approval for rewarding distributors, using DongA Paint shares as a way to tie relationship and sharing benefit to customers  Paying highest commission to intermediates following motto “Everybody wants to sell DongA Paint products”  Using unscheduled reward/ gift on behalf of DongA Paint’s President as a way of stimulating sales or developing potential VIP customers 3.3.2.5 Internal Sales Handbook  Composing a handbook for managers and marketing staff to increase persuasive power, standardize communicating manners in a professional way but still suitable to regional cultures We are talking about when and how to talk on the phone, directly talking to different kind of customers, researching customers’ psychologies, interpreting different body languages, impressing techniques, etc…  The handbook is updated annually with the contribution of the best sale staff, the best distributors and experts in a way that every staff can be 80% the best 3.3.2.6 Other issues 69  Product Promotion: Avoiding mass media, only advertising on company’s website and through marketing staff and distributing channels so as to save on expenditures which are then given directly to intermediates Explanation: DongA Paint products are familiar lines of products The usage and features have been introduced a lot before by renowned brands All distributors have to is recommending DongA Paint This is the lesson from “Vi Dan” washing powder as the brand print a note on its packet that it refuses mass media advertising to save on producing cost This trick has earned the company a fortune  Price Policy: DongA Paint watches its rivals before offering a lower price in the guise of commission given to intermediates Official prices are the same as similar products in the market  Trading online: As Internet is very popular, DongA Paint needs to build an online trading system This system is economic as it reduces spending on real estate investment, and at the same time it helps to access large scale of customers Official websites receive customers’ orders and transfer to the nearest distributors at a small fraction  Sales Force: Increasing number of female staff to 10% to 30% as they are more tender and enduring On the other hands, naturally it is better to have both genres in a project, both should learn from the other as they have different ways of perception  Approaching methods: The surface beauty is irrefutable but the underlying difference is stronger Customers would choose us and would be more faithful if we talk the beauty insides each of them with honor As the result, understand the customer before trying to persuade them, and selling solutions, not the products More training on sales art and the power of buyer and seller are needed for dealers 70 3.3.3 Solutions on human resource management 3.3.3.1 Non-financial solutions: More benefit for workers while taking trivial money of the company, or even none from the company, but still, the workers are more enthusiastic and faithful with their jobs  “Welfare for their families”: paying insurance premium for family members The money is actually extracted from workers’ wages For some employees with high-income, reward them deduction of personal income tax Cost: VND/ year  “Awards or scholarship for their children”: Exclusively for poor families or excellent workers, long-term workers (Excellent parent, excellent children), using open approving priorities 8% on the top of the list will be chosen Awards are categorized, with a total of VND10millon The point is not the money; it is about being recognized and honored; it stays on people’s memories Cost: Below VND 20 million/ year (about USD 1,000)  “Privilege of recommending new employee”: This has been practiced by a number of entrepreneurs in Japan and has proved good effect because only excellent, trustful workers may recommend new employee The old employee will be the teacher and guarantee for the new employee as this is the matter of their honor  “Consideration to workers lives”: care about collective meals (clean, quality assurance, reproduction of labor power), can combined sale of food made available at preferential rates with hygiene standards to reduce daily burden on workers (the firm doesn’t have to pay, but employees are entitled to benefit because the kitchen team and facilities are permanent, material purchased in large amount is cheaper) Drink green tea to reduce the toxicity during break time ($ 2/day for the whole company), maybe even growing tea in the firm’s campus as green belt Doing morning exercise for enhancement of relationship exchanges, and as a start for effective and safety working day (like many Japanese companies) Cost: less than VND 20 million / year (USD 1.000) 71  “Financing 100% of the cost for periodic health examination for employees (once/year)” Apply on employees with over years working for the company or person with special achievement recommended by firm’s leaders Twoyear employees are funded 50%, to years is funded 30% Cost: less than VND 200 million / year (about USD 10,000) 3.3.3.2 Financial solutions Reward when exceeding specified productivity and making low waste rate  Reward when exceeding specified sales on the basis of rates, work more- earn more  Reward with shares for employees in key positions when having important devotion to company; to workers who work long-term to the company or the workers have good skills at work; or who frequently offer creative and innovative ideas  Imposing penalty policies on unsatisfactory work, directly or indirectly damage company assets, for example losing property due to irresponsibility (money, product items) will have to compensate 100% value even more depending on the severity and the person involvement in the case But there must be a specific framework, so that employees can estimate and avoid 3.3.3.3Regulation of wages and personnel policies:  Company should formulate regulations on wage and personnel policies associated with job performance with detailed descriptions, quality assessment, products, revenue… so as to encourage creativity  Develop personnel policies to encourage creativity such as the employee will be entitled to 50% of the benefit that his/her idea brings for the whole first year of application If the initiative cannot be applied immediately the Executive Board and Management department will evaluate and rank (1-4) so as to reward in time Employees with many useful contributions (scale) will get a raise or training 3.3.4 Solutions on Financial Management 3.3.4.1Funds Management: Seeking stable funding sources with low cost to be able to allow VIP customers and distributors to have delayed payment This may be done by linking with companies 72 of the same owners to employ idle capital The company should also use its relationships and reputation to get credit line of at least 70% of working capital so that company can be financially initiative In addition, imposing high interest rate policy on deposit (1.5 times higher than banks with the same maturity) of distributors, big dealers of DongA Paint, and business staff to ensure capital funding as well as minimize the financial risks in payment of those distributors In addition, the company will need to balance the minimum amount of cash hold to avoid keeping too much idle money or to minimize risks in liquidity 3.3.4.2Shareholders Equity Management Increasing capital by using a fixed roadmap and objectives for the issuance of common stock to existing shareholders, especially to strategic shareholders such as Viglacera or other influential partners Using strategy of paying dividends in cash and maintaining at low retained earnings to encourage and motivate stakeholders for their timely investment and care to our company 3.3.4.3 Leasing or purchasing Purchasing or renting fixed assets? Company should not lease finance as raising capital is easier and costs less Furthermore, investment in fixed assets is not big so that there is no need to use such a high cost and difficult approach Renting or purchasing real estate for manufacturing site? In the near future, until the end of 2011 the best option is leasing because the initial investment should not be too large without knowing the production and business efficiency However, in the longer term, the company still needs a long term site for the development of production Within five years, company should find suitable sites near residential areas and not far from the center of Hanoi (under 80km) when property prices are still low to expand production Sources of capital are taken from issuance of shares as mentioned above and from the medium-term loan (less than years) Purpose: stabilizing production, reassuring for investing and expanding opportunities from increased property value 73 3.3.4.4 Accounting Methods Using the method of ending period weighted average for easier monitoring as there is a wide variety of prices of stock with insignificant volatility, so there’s no need to check each specific shipment of products Depreciation method: using the straight-line depreciation in accordance with regulations of the Ministry of Finance, does not apply accelerated depreciation because company is still in early stages of growth, if depreciation costs are too great, it can affect prices and sales 3.3.4.5 Other issues: Establishing a discount rate lower than borrowing interest rates (20% / year) for sums paid in month, months, months 3.3.5 Solutions on information technology: Investing in system management software for personnel management, financial management, production and sales management Implementing the Management Software to level dealers to know where the sale and charging are and the statue of each product to have promptly adjustment Estimated cost: USD 25.000 VND500 million There is no proprietary software for the product design stage as the color-blending expert designs on their personal PC and experiment on their own 3.3.6 Solutions on building corporate culture  Creating a culture of learning, willing to share opinions, raising awareness of sharing will help the listeners improve and the sharers decreased workload, as well as a chance to think back and improve  Maintaining a spirit from traditional culture as to say” boat on the water," If the company doing well and colleges develop themselves, the company can reduce unfair competition which can destroy the collective power To this, it is necessary to prove that when one individual success, that person will be the first to 74 receive and enjoy the most satisfactorily and the others would also benefit, directly or indirectly Culture of humanity, consideration and sharing, always think of nice and  standardized actions (BEST PRACTICE) All the solutions should be applied in early 2012 after 5-6 months making suitable policies and procceses, procedures except some solutions pointed another period This package of solutions may lead DongA Paint reach their target as soon as possible firmly 3.4 RECOMMENDATIONS PROPOSED TO VIETNAM ASSOCIATION OF PAINT AND INK  Updating monthly statistics on the amount of goods produced and consumed in the period, revenue of the whole business sector so as to every enterprise can make the right decision and avoid too much stock, which will cause wasting for the enterprise and the society  Regularly updating macroeconomic news which affects the sector as well as the market Operating as an organization that coordinates the industry, and enhances negotiations between the members of the association to achieve win-win agreement 3.5 RECOMMENDATIONS PROPOSED TO THE GOVERNMENT OF VIETNAM  Implementing policies to protect small and medium enterprises, and offering more equitable policies to the private sector  Enhancing international cooperation; establishing policy to support import of raw materials for examples preferential credit program of the Development Bank to create more jobs for the society and improve the speed of economic development 3.6 EXPECTED OUTCOMES Hopefully, after implementing widely these solutions the company will gradually improve the production capacity, develop technology and expand and grow distribution network so as to reach the minimum result through 2012 - 2016 to 2021 as estimated in Table 3.1 ESTIMATED INCOME STATEMENT 75 3.7 IMPLEMENTATION AND TERM REVIEW OF STRATEGY IMPLEMENTATION Companies need to organize and evaluate the implementation of the strategic adjustment once a year and whenever there are events that affect the feasibility of the strategy Every day, if there is a problem related to the strategy that needs to be addressed, the person discovering that would record it in the tracking software When the software is not yet ready, relevant information should be sent to the "strategy" mailbox for the director to know the problem promptly CONCLUSION Building strategy for DongA Paint at this point of time is extremely necessary, even rather late Doing business based on experience and intuition may bring about success thanks to the flexibility and keeness of the leaders, however it relies heavily on the talent and the influence of the leaders In the long term, the organization would grow to such a large scale that the ability of the leaders to influence each small activity and each individual in the system would become more and more limited In this context, strategy is the very instrument to bring the vision of the leaders to the whole members of the organization Based on our accumulated knowledge about theories on strategy formulation, we select relevant theories to use in analyzing the external and internal environments of DongA Paint, thereby proposing the strategy that we believe the most appropriate for the company to develop in the next period, ensuring the feasibility and the goal of sustainable development for the company In this report, we also propose some daring solutions that are rarely applied by other companies in the market, such as outsourcing the research and development of products by exploiting the high quality intellectuals in relevant research institutes or universities or adopting compensation policies which are not directly financial but highly humanian (for people) to staff, thus generating great and long-term benefit to both employees and employer Applying this view, DongA Paint can expand our ideas to look for other applications to be able to respond properly to continuous changes in the mindset and the business environment 76 With our collective strength of a group of authors consisting of a leader in state management, an expert in M&A, a leader and also an expert in software and other group members who have good expertise and experience in finance and sales areas verified in various types of enterprises, working under the guidance of senior lecturers on strategic management,we hope that we can propose in this report a strategy for DongA Paint with at least 90% probability of feasibility Besides the fact that small adjustments should be made properly during actual implementation, we strongly believe that the overall idea and direction of this strategy is entirely feasible and can bring sustainable success for the company In addition, we really wish that this approach in strategy formulation for DongA Paint will be duplicated in other small and medium enterprises, first in 15 companies providing construction materials under the same controlling ownership, with a view to promoting the national economic development, creating more employment for the society, moving towards a more people and environmentoriented society This is also our way to demonstrate our gratefulness to those who have helped us to get correct and comprehensive knowledge on strategic management 77 REFERENCES Strategy Management, Lectures Slide, Griggs University Industry Analysis, Data Center, BSC JSC, http://www.bsc.com.vn Vietnam Economic Indicators, Reuters, http://www.reuters.com (EXTRA 3000 - registered) Financial Statements, Management Statements in the period of 2008-2010 and other firm’s data of DongA Paint, source DongA Paint and website http://www.hangsondonga.com.vn Prospectus of HDA (DongA Paint) on website of Hanoi Stock Exchange: http://www.hnx.vn Statistical Data, Thematic Data and Statistical Concusses and Surveys, General Statistic Office of Vietnam, http://www.gso.gov.vn Market diversification vs product diversification, http://www.ehow.com,) Characteristics of Strategy, http://www.freemba.in/articlesread.php The history of Paint & Ink Industry in Vietnam, Vietnam Paint & Printing Ink, http://www.vpia.org.vn 78 ... Student’s name: Nguyen Van Thanh Mai Anh Tam Nguyen Thi Thu Luong Vu Trong Khiem Phan Thi Vinh CLASS: GaMBA01.X0409 HANOI, 2011 TABLE OF CONTENT PAGE VERIFICATION AND ASSESSMENT OF DONG A PAINT COMPANY... us valuable knowledge and understanding through 12 main subjects and foundation subjects of the MBA training program, our special thanks to Lecturer Anthony and Lecturer Dr Vu Thanh Hung, who... so strategy is relevant only to the future (Source: Characteristics of Strategy http://www.freemba.in/articlesread.php) 1.1.4 Superior returns model (table 1.1.4) INDUSTRY ORGANISATION MODEL