Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (143)

GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION CAPSTON PROJECT REPORT TOPIC: BUILDING BUSINESS STRATEGY FOR VIET NAM I INDUSTRIAL JOINT STOCK COMPANY IN 2010-2015 Prepared by: Group 12 Class: GeMBA01.V02 No Full name Note Tran Thai Binh Group leader Tran Bau Ha Pham Vu Long Group member Group member Đao Xuan Tung Group member Ha Tinh, September, 3rd, 2010 GROUP 12 -GEMBA 01.V02 TABLE OF CONTENT PREFACE GROUP 12 -GEMBA 01.V02 ABBREVIATION NECCESSITY OF THE STUDY PURPOSE AND SCOPE OF THE STUDY 2.1 Study purpose 2.2 Study scope STUDY METHODOLOGY 3.1 Methods to collect data 3.2 Data analysis SIGNIFICANCES OF THE STUDY PAGE 5 6 8 CHAPTER I: THEORY BASIS OF BUSINESS STRATEGY Definition of strategic management 1.1 Definition of strategic management 1.2 The role of strategic management 1.3 Classification of business strategy 1.4 Process of building business strategy 9 9 10 1.4.1 Strategic vision 10 1.4.2 Macro environment of enterprise 10 10 1.4.2.1 PEST model 1.4.2.2 Operational environment of enterprise 1.4.3 Internal environment analysis within the enterprise 1.4.4 Model of strategy choice 1.5 Basic competitive strategies 11 12 13 15 CHAPTER II: REALITY OF CONSTRUCTION STONE TRADING IN VIET NAM I INDUSTRIAL JOINT STOCK COMPANY 18 2.1 General introduction 2.2 Analysis of external environment 2.2.1 PEST analysis 2.2.2 Five-force analysis 18 20 20 24 2.2.2.1 Customers 2.2.2.2 Current competitive opponents 2.2.2.3 Replaced products 2.2.2.4 Providers 24 25 27 27 2.2.2.5 Threats of new entrants 2.3 Analysis of internal environment 2.3.1 Administration 28 28 GROUP 12 -GEMBA 01.V02 2.3.1.1 Definition 2.3.1.2 Organization 2.3.1.3 Leadership 2.3.1.4 Corporate Governance 2.3.2 Personnel 2.3.3 Marketing 2.3.3.1 Products 2.3.3.2 Price 2.3.3.3 Distribution 2.3.3.4 Advertisement 2.3.4 Production, quality management and equipment technology 2.3.4.1 Productional operation 2.3.4.2 Equipment and technology 2.3.5 Financial situation of company 2.3.6 Research and development 2.3.7 Information system 2.4 SWOT analysis for Vietnam I Industrial Joint Stock Company 2.4.1 Main strengths 2.4.2 Main weaknesses 2.4.3 Main opportunities 2.4.4 Main threats 28 29 31 32 33 33 33 34 35 35 36 36 38 39 41 41 41 41 42 42 43 CHAPTER III: BUILDING BUSINESS STRATEGY FOR VIET NAM 45 I INDUSTRIAL JOINT STOCK COMPANY IN 2010 – 2015 3.1 Choice of business strategy 3.1.1 Application of QSPM model 3.1.2 Description of leading cost strategy 3.2 Business strategy building 3.2.1 Vision, mission and goals of the company 3.2.2 Functional strategies 3.2.2.1 SWOT matrix 3.2.2.2 Main strategy matrix 3.2.3 Strategy choice 3.2.3.1 Choose strategic solutions 3.2.3.2 Strategy choice 3.3 Strategic solutions 3.3.1 Maketing solutions 3.3.2 Personnel solutions 3.3.3 production solutions 3.3.4 Administrative solutions 3.3.5 Information solutions 3.4 Implementation progress GROUP 12 -GEMBA 01.V02 45 45 46 46 46 47 48 51 52 52 53 53 53 53 54 54 54 55 CONCLUSION REFERENCES APPENDIX 56 57 58 PREFACE NECCESSITY OF THE STUDY After Viet Nam’s integration into WTO, it means that Viet Nam has officially “jumped into” international playground therefore Vietnamese enterprises must cope with violently competitive environment An enterprise which wants to exist and develop in the market then the most important and necessary thing is to orient company to go on a right way, suitable to constant change of business environment to reach high adapting and ensure enterprise’s sustainability Therefore, centre and main problem of enterprises currently including enterprise of producing construction materials is to build up a right and suitable business strategy with competitive environment and how to adapt to conditions and existing capacity of enterprise In addition, together with common development orientation of the whole nation, in recent years, economic structure of Ha Tinh province has transferred into increase of construction and tourism, reduction of agriculture; Many main projects are implemented then demand of construction materials has been increased highly; this is the opportunity for enterprises in construction sectors including Viet Nam I industrial Joint Stock company However, big opportunity as well as many threatens have been raise, how to make company exist and develop within the market? Then Viet Nam I industrial Joint Stock company, must have a good business strategy which is suitable to short term period from 2010 to 2015 In study time, via reality of trading and exploiting stone of the company, our group decides to choose the topic “construct business strategy of construction stone in Viet Nam I Industrial Joint Stock Company PURPOSE AND SCOPE OF STUDY 2.1 Study purpose GROUP 12 -GEMBA 01.V02 This topic will study business strategy of construction material sector, which is the business strategy of construction stone in Viet Nam I Industrial Joint Stock Company Studying strategy will help enterprise to discover weaknesses to adjust, promote profit increase, and create prestige of brand name within the market Based on such spirit, choosing topic “construct business strategy of construction stone in Viet Nam I Industrial Joint Stock Company” is to reach the following targets:  Analyze environmental impact on trading activities of construction stone in Viet Nam I Industrial Joint Stock Company  Realize strengths, weaknesses, opportunities and threatens from environment  Build up a suitable strategy for business activities of construction stone in Viet Nam I Industrial Joint Stock Company based on limiting and adjusting weaknesses and promoting strengths to raise business effect and maintain development of company 2.2 Study scope - Survey object: internal and external factors impact on business activities of Viet Nam I Industrial Joint Stock Company - Study time: within the period from 14/07/2010 to 25/08/2010 - Study space: Viet Nam I Industrial Joint Stock Company - Study limit: Viet Nam I Industrial Joint Stock Company operates in trading construction stones and due to features of construction stones then this assignment will focus on analyzing business strategy of construction stone of Viet Nam I Industrial Joint Stock Company within Ha Tinh area In this topic, we will go ton study and analyze some direct competitive opponents within Hong Linh town, Ha Tinh province such as Viet Nam – Czech economic cooperation company; Ha Tinh industrial development Joint stock company, 999 stone exploiting company STUDY METHODOLOGY 3.1 Methods to collect data GROUP 12 -GEMBA 01.V02  Collect primary data: via following methods: - The method of direct observation of daily activities in the company including mainly working process, communication with partners….in Viet Nam I Industrial Joint Stock Company - Interview leaders and employees in the company (business office, accounting office, administrative office) to understand customers, providers, partners related to business activities of Viet Nam I Industrial Joint Stock Company as well as personnel policies that the company is implementing; Besides, we can interview workers of company to understand their attitude with Viet Nam I Industrial Joint Stock Company - Interview competitive opponents: with sample size of 3, sampling is the most convenient method which is simple to approach object of interview; Out of which object of interview will be mainly director of divisions and managing cadres of company; interview is done within 14/07/2010 – 20/07/2010 to collect information of activities of company (products, distribution system, operational area…) as well as their definition of influence which impact on construction sector within Ha Tinh… - Interview customers: with sample size of 20 (chosen according to convenient method), quantity of samples will be distributed to customers who buy company’s products (mainly transportation companies to buy stone to provide customers, contractors within the area) Interview is done within 14/07/2010 – 05/08/2010 to get opinions of customers of products (quality, price…) as well as policies to care for customers of Viet Nam I Industrial Joint Stock Company  Collect secondary data: by recognizing from resources: - Reports and materials of Viet Nam I Industrial Joint Stock Company and competitive opponents of company; providing divisions include: planning office, trading office, accounting and marketing office of the company - Report of trading results within 2007 – 2009, detailed report of related factors of financial index such as asset structure, capital structure …(accounting office) GROUP 12 -GEMBA 01.V02 - Materials of partners of Viet Nam I Industrial Joint Stock Company such as providers, customers, lending units…(trading office) Besides, there are also direct instruction and direct information provision of Mr Tran Quoc Huong – Director of the company - References from materials, papers, manual book of strategic administration edited by Griggs University as well as materials on Internet 3.2 Data analysis  Method of comparison and synthesis: compared to reached norms of company with norms that competitive opponents have reached in the following conditions: space, time, economic content, measurement unit, estimation method, scale, and business condition  Inductive method: realization from small and detailed problems to common conclusion of analyzed problems  Analysis of SWOT: it is the main method in building business strategy to find out strengths, weaknesses inside enterprises as well as opportunities and threatens of external environment which can impact on enterprise Besides, analysis also uses other matrix such as: main strategic matrix,… such methods will be presented in the part “theory basis of strategic construction of enterprise SIGNIFICANCES OF STUDY TOPIC Studying topic can orient to construction of business strategy in term of construction stone of Viet Nam I Industrial Joint Stock Company, then we hope that the results that topic can bring will be experiences that enterprises in the sector as well as other sectors can study and consider to draw experiences in construction of business strategy of enterprise At the same time, topic study can prove importance of construction of business strategy in enterprise and then enterprises will clearly realize importance and role of strategy then build up development strategy strictly and scientifically GROUP 12 -GEMBA 01.V02 CHAPTER I THEORY BASIS OF BUSINESS STRATEGY Definition of strategic management 1.1 Definition of strategic management Strategic management is the study process of current as well as future environment, define organizational targets, suggest, implement and check implementation of decisions to reach such targets in current as well as future environment (Garry D Smith, 1991) 1.2 The role of strategic management - The role of defining: Business strategy will help enterprise to see clearly its own purpose and orientation It can indicate administrators to consider and define orientation for organization and when to reach expected results - The role of prediction: In a variable environment, opportunities as well as threatens always appear In the process of defining strategy, it can help administrators to analyze environment and make prediction to find out suitable strategies Then administrators can grasp opportunities, make use of opportunities and reduce threatens related to environment - The role of controlling: Business strategy will help administrator to use and allocate existing resources in the best way as well as coordinate effectively functions in organization to reach given targets 1.3 Classification of business strategy GROUP 12 -GEMBA 01.V02 Business strategies are formed within three levels: company level strategy, functional division strategy and business unit strategy; out of which, business unit strategy is the main segmentation with sector’s competition - Company level strategy: It is to define purposes and targets of the whole company, define business activities that company can pursue, create policies and plans to reach targets, allocate resources among business activities - Functional division strategy: In the strategy of functional division, we will focus on operational fields, business sectors with outstanding advantage to the company - Business unit strategy: It is defined to define product choice or market form for business activities of the company; within business unit strategy, we must define the method that each business unit to implement to contribute to target fulfillment within company level 1.4 Process of business strategy building 1.4.1 Strategic vision Strategic vision is the instruction diagram to indicate the method that company must implement to develop and strengthen competitive power in business; it will draw a picture of destination and reason to go to such destination Strategic vision development include development of strategic thought on future development of the company and the change of products – market – technology to increase current position within the market and future prospect of the company Development of strategic vision is via analysis of PEST – factors in macro environment and SWOT model of enterprise to find out a suitable vision for enterprise 1.4.2 Macro environment of enterprise GROUP 12 -GEMBA 01.V02 10 JSC must have a comprehensive view to discover suitable investment places and urgently construct to reach advantage With such strategies, Viet Nam I industrial JSC must consider reality and capacity to decide to choose strategy; via analysis of strengths, weaknesses as well as opportunities and threatens of Viet Nam I industrial JSC, our group would like to recommend to focus resources on implementing the most important strategy: market penetration (the remaining strategies will be done later to help enterprise to reach long term targets), company should promote strengths to promote activities on produced products Topic of business strategy for Viet Nam I industrial JSC has defined clear development orientation, which is suitable to private condition of enterprise; this will help leading board to have a general view and right thought in construction and choice of business strategy for enterprise / REFERENCES Report on plan implementation in 2009 and duty of plan in 2010 of the company Organizational charter and activities of Viet Nam I Industrial JSC – Dau Lien stone exploiting enterprise Lê Chí Cơng (2006) Manual book of strategic administration Fred R.David, translator: Trương Công Minh – Trần Tuấn Thạc – Trần Thị Tường Như (2003), definition of strategic administration , statistical publishing house, Hà Nội Garry D.Smith, Danny R Arnold, Boby R Bizzell, translator: Bùi Văn Đông (2003), business strategy and tactics, statistical publishing house, Hà Nội Electronic papers: investment papers – Ministry for Planning and Investment; paper of GROUP 12 -GEMBA 01.V02 diplomatic ministry of Viet Nam; Trang Web 56 http://www.gso.gov.vn – statistical agency; website of Ha Tinh provinces , and other local papers APPENDIX Interview of enterprise’s leader INTERVIEW SLIP How you do, our group is implementing the capston project report of global MBA course by Griggs University related to construction stone within Ha Tinh area Then we hope that you will spend a little time to help us providing some information to raise persuasiveness of the topic that we are doing with; thanks for your help! Company : …………………………………………………… A INDIVIDUAL INFORMATION: Full name:………………………………………………… Age:…………………… Gender:……………………… Position in company:……………………………………… GROUP 12 -GEMBA 01.V02 57 Working seniority in the company:………………………… B INFORMATION OF INDIVIDUAL OPINION: Question According to you, how are the following environmental important to sectors’ development and development of a company of construction stone ? (mark (X) in selected squares) GROUP 12 -GEMBA 01.V02 58 Importance for Influence on the company’s Influenc Point Factors of external environment development success: of e quality …………………… construction …………………… materials ………… Hig Ave Lo Much Littl =0 goo Bad h rage w 1.Economic crisis 2.High urbanization rate 3.GDP/person increases 4.Encouraged to develop 5.Rainy season impacts on production and consumption Developed science and e d technology High pressure from customers High pressure from providers High competitive pressure 10 Abundant labor force Importance 11 factors of external for environment: Influence on the company’s development success: of Influenc Point : e quality …………………… construction …………………… …… Hig Ave Lo MuchAve Littl =0 Bad Goo h rage w rage e d a b c Question According to you, how can factors of internal environment can impact on sectors’ development and development of a company of construction stone ? (mark (X) in selected squares) GROUP 12 -GEMBA 01.V02 59 Importance for Factors of Influence on the company’s Influenc Point internal development success: environment of e quality …………………… construction …………………… ………… Hig Ave Lo MuchAve Littl =0 Bad Goo h rage w rage e d Organizational structure High product quality High capacity of capital mobilization Brand name Uncompleted system Management information of input materials Strong allocation channel Production scale good relations with concerned parties 10 Undeveloped R&D 11 Experienced leading board Importance for Influence on the company’s success Influenc Point 12 other factors of internal development : environment of e quality …………………… construction …………………… …… Hig Ave Lo MuchAve Littl =0 Bad Goo h rage w rage e d a b c GROUP 12 -GEMBA 01.V02 60   -Thanks for your help and best regards! GROUP 12 -GEMBA 01.V02 61 Interview of competitive opponents INTERVIEW SLIP How you do, our group is implementing the capston project report of global MBA course by Griggs University related to construction stone within Ha Tinh area Then we hope that you will spend a little time to help us providing some information to raise persuasiveness of the topic that we are doing with; thanks for your help! Company:……………………………………………………… A INDIVIDUAL INFORMATION: Full name:…………………………………… ………… Age:……………………Gender:……………………… Working position:…………………………………… Working seniority:………………………… B INFORMATION OF COMPANY AND MARKET: Question 1: How much is legal capital of the company? …………………………………………………………… (billion dong) Question 2: Reality of distribution system of the company? can you describe distribution system and assess operational effect of such system? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… Question 3: can you give some information of policies for products and services in construction stone sector of the company? in the coming time, does the company have intention to change price policy? ……………………………………………………………………………………… ………………………………………………………………………………… Question 4: What is Marketing forms that company has used to advertise construction sector? GROUP 12 -GEMBA 01.V02 ……………………………………………………………………………………… …………………………………………………………… Question 5: Have you got any comments on strengths and weaknesses of the company? Strengths:………………………………………………… Weaknesses:…………………………………………………… ……………………………………………………………… ……………………………………………………………… ………………………………………… Question 6: In term of common situation of construction stone market, what are the opportunities and threatens of company’s activities? Opportunities: ……………………………………………………… ……………………………………………………………… ……………………………………………………………… ………………………………………… Threatens:……………………………………………………… ……………………………………………………………… ……………………………………………………………… ………………………………………… Question 7: currently, in which place of the province is the investment area located? scale, area? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… Question 8: can you tell about development plan of the company in the coming time? in which activities does the company intend to invest? GROUP 12 -GEMBA 01.V02 ……………………………………………………………………………………… Question 9: According to you, which competitive opponents does the company have currently within Ha Tinh province? What are your comments on such competitive opponents (strengths, weaknesses)? Strengths Company Weaknesses 1: - - ……………… - - ……………………… - - ………………………… - - - - Company - - 2……………… - - ………………………… - - ………………………… - - Company - - 3……………… - - ………………………… - - ………………………… - - - -   -Thanks for your help and best regards! GROUP 12 -GEMBA 01.V02 Interview of customers QUESTIONAIRES OF MARKETING ACTIVITIES OF VIET NAM I INDUSTRIAL JSC Questionaire No.: How you do, our group is implementing the capston project report of global MBA course by Griggs University related to construction stone within Ha Tinh area Then we hope that you will spend a little time to help us providing some information to raise persuasiveness of the topic that we are doing with; thanks for your help! Content of questionaire: Question 1: How often has your company bought construction stone of Viet Nam I industrial JSC in recent years? Once or 7-8 9-10 11-12 Times of twice a 3-4 times 5-6 times times a times a times a More buying year a year a year year year year        Question 2: How can you assess construction stone of Viet Nam I industrial JSC in recent years? Low durability Few types GROUP 12 -GEMBA 01.V02      High durability      Plentiful types Question : How can your company assess construction stone of Viet Nam I industrial JSC in recent years? construction stone of Viet Nam I industrial JSC in recent years?           other      Costly expensive More expensive than companies Economical Cheap Cheaper than other companies Question : when buying products, does Viet Nam I industrial JSc apply price reduction policy? A Yes B No If Yes, answer question If No answer question Question : which price policy is applied by Viet Nam I industrial JSC you’re your company is enjoying? a Deduction according to sale quantity b Payment deduction c Commercial deduction d Price reduction e Bonus GROUP 12 -GEMBA 01.V02 f Others ………………… Why you choose such alternative? ……………………………………………… Question : Arrange order of importance of the following factors for buying decision of your company ? (1 is the most important, is the least important) Brand name Price Good model High Payment durability form Question : How does your company buy products of Viet Nam I industrial JSC? a Direct buying b Via transportation companies c Via construction contractor d Other forms…………………………………………………… Question : How can your company know about products of Viet Nam I industrial JSC a Via TV, paper and magazine of construction sector b Via posters c Via exhibition GROUP 12 -GEMBA 01.V02 d Via introduction of colleagues e other reason: ………………… Question : Do you care for promotion program in buying products? a Yes b No If Yes, answer question 10 If No, answer question 11 Question 10 : which promotion program does your company enjoy from buying products of Viet Nam In industrial JSC? a Price reduction b Gift c Buying slip d Free transporting e Other……………… Why you choose such alternative? ……………… ………………………………… Question 11 : generally, what is your evaluation on advertisement of Viet Nam In industrial JSC? GROUP 12 -GEMBA 01.V02 Forms Highly Dissatisfied Normal dissatisfied (2) (3) Satisfied Highly satisfied (1) (4) (5) Advertisement Promotion Public relation Direct sale question 12 : what is your evaluation for the attitude of salesman of Viet Nam In industrial JSC? Friendly -3 -2 -1 +1 +2 +3 Question 13 : Finally, your common assessment on marketing activities of Viet Nam In industrial JSC? Highly Dissatisfied Normal Satisfied dissatisfied Highly satisfied   -Thanks for your help and best regards! ...TABLE OF CONTENT PREFACE GROUP 12 -GEMBA 01.V02 ABBREVIATION NECCESSITY OF THE STUDY PURPOSE AND SCOPE OF THE STUDY 2.1 Study purpose... Threats of new entrants 2.3 Analysis of internal environment 2.3.1 Administration 28 28 GROUP 12 -GEMBA 01.V02 2.3.1.1 Definition 2.3.1.2 Organization 2.3.1.3 Leadership 2.3.1.4 Corporate Governance... 3.3.4 Administrative solutions 3.3.5 Information solutions 3.4 Implementation progress GROUP 12 -GEMBA 01.V02 45 45 46 46 46 47 48 51 52 52 53 53 53 53 54 54 54 55 CONCLUSION REFERENCES APPENDIX