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CAPSTONE PROJECT REPORT “BUILDING AND SELECTING CORPORATION STRATEGY FOR SON HA INTERNATIONAL JOINT STOCKS COMPANY TILL 2020” Mr NHU VAN HOAN Mrs DINH THI THUY Mr NGUYEN DUC DUONG Mr PHAN THANH NGỌC Mr VƯƠNG QUOC THANG Class: X0610 HA NOI, 2011 TABLE OF CONTENTS LIST OF ABBREVIATED WORDS LIST OF TABLES – FIGURES INTRODUCTION TABLE 1.1 SWOT MATRIX MODEL ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.1 THE VIETNAMESE ECONOMY IN KEY FIGURES ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.3/ M PORTER’S 5-FORCE COMPETITIVE MODEL ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.4/ EVALUATION OF OPPORTUNITIES FOR SON HA ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.5/ EVALUATING IMPACT OF THREATS TO SON HA ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.6/ SUMMING UP OPPORTUNITIES AND THREATS FOR SON HA COMPANY ERROR: REFERENCE SOURCE NOT FOUND .3 FIGURE 2.7/ BALANCE SHEET OF SON HA (2007 – 2010) ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.8/ SUMMING UP STRENGTHS AND WEAKNESSES OF SON HA ERROR: REFERENCE SOURCE NOT FOUND FIGURE 3.1/ OVERALL SWOT MATRIX FOR SON HA COMPANY: ERROR: REFERENCE SOURCE NOT FOUND FIGURE 3.2/ GREAT MODEL FOR CHOOSING THE OPTIMUM SSTRATEGY FOR SON HA ERROR: REFERENCE SOURCE NOT FOUND .3 INTRODUCTION .1 CHAPTER 1: THEORETICAL BACKGROUND ON STRATEGIC MANAGEMENT .3 TABLE 1.1 SWOT MATRIX MODEL 19 CHAPTER 2: CURRENT SITUATION OF SONHA INTERNATIONAL JOINT STOCKS COMPANY .23 FIGURE 2.1 THE VIETNAMESE ECONOMY IN KEY FIGURES 33 FIGURE 2.7/ BALANCE SHEET OF SON HA (2007 – 2010) 41 CHAPTER 3: 50 CORPORATE STRATEGY OF SONHA INTERNATIONAL JOINT STOCKS COMPANY TILL 2020 AND SOLUTIONS FOR IMPLEMENTATION 50 TABLE 1.1 SWOT MATRIX MODEL 51 FIGURE 3.2/ QSPM MODEL FOR CHOOSING THE OPTIMUM SSTRATEGY FOR SON HA 56 LIST OF ABBREVIATED WORDS Son Ha: Son Ha International Corporation The Company: Son Ha International Corporation GREAT: Gains – Risks – Expenses – Achievability – Timing PEST : Politics, Economy, Society, Technology SWOT: Strength, Weakness, Opportunity, Threat GDP: Gross Domestic Products LIST OF TABLES – FIGURES TABLE 1.1 SWOT MATRIX MODEL ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.1 THE VIETNAMESE ECONOMY IN KEY FIGURES ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.3/ M PORTER’S 5-FORCE COMPETITIVE MODEL .ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.4/ EVALUATION OF OPPORTUNITIES FOR SON HA .ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.5/ EVALUATING IMPACT OF THREATS TO SON HA .ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.6/ SUMMING UP OPPORTUNITIES AND THREATS FOR SON HA COMPANY ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.7/ BALANCE SHEET OF SON HA (2007 – 2010) ERROR: REFERENCE SOURCE NOT FOUND FIGURE 2.8/ SUMMING UP STRENGTHS AND WEAKNESSES OF SON HA ERROR: REFERENCE SOURCE NOT FOUND FIGURE 3.1/ OVERALL SWOT MATRIX FOR SON HA COMPANY: ERROR: REFERENCE SOURCE NOT FOUND FIGURE 3.2/ GREAT MODEL FOR CHOOSING THE OPTIMUM SSTRATEGY FOR SON HA ERROR: REFERENCE SOURCE NOT FOUND INTRODUCTION The reasons for building up development strategy for Son Ha International Corporation during the period of 2011 - 2020: During recent time, the world economy has experienced great changes, especially the financial crisis in the US has affected almost all the nations in the world including Vietnam After this economic crisis, we now can look back to find out the internal shortcomings and weaknesses of our economy At present, the Vietnamese economy in particular and the world economy in general tend to start recovering and developing It is important that each economic organization must find out a suitable direction for its own to enable the stable development in the future From establishment, Son Ha has never written a corporation strategy for long term business plan, just only annual business plan Almost twelve year passed, many things have been changed a lot, and today the company has been many times bigger than it at beginning of period Any change of internal and external environment will affect to the company business However, due to not having a unique strategy, the Company has faced a lot of difficulties and challenges such as high cost, but low productivity Selling expenses and administrative overheads continue to increase yearly (from approximately 29.3billion VND and 25.8 billion VND to 69.5 billion VND and 26.7 billion, respectively in 2011), that effect to the Company’s profit Besides, Son Ha usually invest too widely, in any area that may not related to their current business activities As a result, the corporation’s business result was sometime not good, the total benefit declined To have the sustainable development, it is necessary for the company to have a business strategy, not only for coming year, but also for coming 910years The purpose of business strategy is to set up targets for company in specific time and to choose general direction and to build detail plan for company and its department to achieve the targets Purpose and scope of research: Researching the basis for setting up development strategy, strategy process and the way to select the optimum strategy in order to help Son Ha identify a suitable strategy of production and business in the current business circumstance From there, Son Ha can take on proper actions for expanding, reducing business cost, using capital effectively, having profit as well as enhancing the competitiveness for the enterprise From the above-mentioned research, putting forth proposals for solutions to improve the process of building up Son Ha’s strategy in the current business circumstance Scope of research: This capstone project focuses into analyzing the strengths and weaknesses of Son Ha’s current strategy From that basis, building up and selecting corporate strategy for Son Ha during the period of 2011-2020 Implementation method: Qualitative method: Applying theories of business strategy, bringing the models of corporate strategy setting up and selecting into the practical situation of Son Ha Research methodology: Statistics, survey, analysis, comparison, synthetizing data Data: Primary and secondary Data collecting method: Depending on data publicized on mass media and Son Ha’s capability portfolio Structure of capstone project: The capstone project consists of forewords and chapters The main content of each chapter is presented as follow: CHAPTER 1: THEORETICAL BACKGROUND ON STRATEGIC MANAGEMENT CHAPTER II: ANALYSIS OF CURRENT SITUATION OFSON HA INTERNATIONAL JOINT STOCK COMPANY CHAPTER III: SOLUTIONS, PETITIONS AND CONCLUSION LIST OF REFERENCE DOCUMENT CHAPTER 1: THEORETICAL BACKGROUND ON STRATEGIC MANAGEMENT 1.1 Theories about strategy and strategic management 1.1.1 Strategic definition There are some definitions of strategy According to David (Exploring Corporate Strategy) strategy is definedas “a coordinated series of actions which involve the deployment of resources to which one has access for the achievement of a given purpose.” "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations" Other definition considers Strategy as an action that managers take to attain one or more of the organization’s goals Or Strategy can also be defined as “A general direction set for the company and its various components to achieve a desired state in the future Strategy results from the detailed strategic planning process” In general, strategy is about: • Where is the business trying to get to in the long-term (direction) • Which markets should a business compete in and what kind of activities are involved in such markets? (markets; scope) • How can the business perform better than the competition in those markets? (advantage) ? • How can the business perform better than the competition in those markets? (advantage) ? • What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources) ? • What external, environmental factors affect the businesses' ability to compete? (environment)? • What are the values and expectations of those who have power in and around the business? (stakeholders)  1.1.2 Levels of Strategy Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business Corporate strategy is often stated explicitly in a "mission statement" Business Strategy - is concerned more with how a business competes successfully in a particular market It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc Function Strategy - is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction Operational strategy therefore focuses on issues of resources, processes, people etc 1.1.2 Strategy content Vision Statement to open a mission for the plan and strategy is the foundation for a vision of the company Statement of mission or may be a motivating employees when transmit the purpose and value of the company to customers and communities A statement of vision is a report about a company where you hope to achieve Universal Declaration vision needed for strategic planning because it outlines the future of your company as you achieve goals and your goals The statement of vision may be different between different lengths, can be a short, can be a paragraph long, but must identify the final destination of you Vision of your company is an important statement to guide the process of planning strategies A statement of vision will determine the best results for the current initiatives and your potential Mission: Mission is to answer the question why? Mission will be the business and will lose the business no longer exists or switch to a business other Statement of mission is a documentation purposes informing the existence of a company A mission statement identifies the values and rules governed by the company and is a dominant part in the planning strategy The mission may be different in length, can be from to of questions and should talk about business, purpose and values Mission of the company which is why the company exists on the market, who you are and you will bring to customers and communities in these types of products and services Decisions in the process of planning and strategy of the dominant company must always harmonious with the statement of mission Strategy objectives: The key component of any strategy statement is to set the longterm objectives of the organization It is known that strategy is generally a medium for realization of organizational objectives Objectives stress the state of being there whereas Strategy stresses upon the process of reaching there Strategy includes both the fixation of objectives as well the medium to be used to realize those objectives Thus, strategy is a wider term which believes in the manner of deployment of resources so as to achieve the objectives Policies Policies are the means by which anuual objecties will be achieved Policies includes guidelines, rules, and procedure to support effort to achieve objecties Organization Structure  The firm’s formal reporting relationships, procedures, controls, and authority and decision-making processes  The work to be done and how to it, given the firm’s strategy or strategies It is critical to match organizational structure to the firm’s strategy Action plan The plan of action in implementing strategies selected 1.2 Strategic management process 1.2.1 Defining vision and mission 1.2.2 External environment process General environment analysis – PEST Model The external environment in which an organization operates presents both threat and opportunities This environment influences the organization directly Figure 1.1: PEST analysis PEST is model scanning the general environment which can effect dramatic on firm strategy Typically, a firm has little ability to predict trends and events in the general environment, and event less ability to control them PEST is the abbreviation of political, Economic, Social and Technological segments It describes a framework for analysis of these macro-environment factors - The Political/Legal segment: Political analysis is scanning of the government policies/legal which effect to firm’s business Some of it includes tax policy, trade tariffs, environmental regulation, socioeconomic development policy, etc - The Economic segment: The economy has an impact on all industries, from suppliers of raw material to manufacturers of finish good and services, as well as all organization in service, wholesaler, retailer, government, and nonprofit sectors Key economic indicators include interest rates, unemployment rate, the consumer price index (CPI), the gross domestic profit (GDP) and net disposable income - The Social – cultural segment: Socio-culture forces influence the value, beliefs and lifestyle of a society They have major impact on customer need, product, service and market - The Technical segment: Developments in technology lead to new product and services and improve how they are produced and delivered to end users Innovation can create entirely new industries and alter the boundaries of exiting industries It presents the opportunities and threats that must be considered in the formulation strategies 1.2.2 Five forces model Figure 1.2: The Five Competitive Forces This model was developed by Professor Michael Porter (USA) in 1979 It is the most effective model to scan the micro environment It includes five factors which affect the firm’s position in the marketplace  The threat of substitute products The existence of products outside of the realm of the common product boundaries CHAPTER 3: CORPORATE STRATEGY OF SONHA INTERNATIONAL JOINT STOCKS COMPANY TILL 2020 AND SOLUTIONS FOR IMPLEMENTATION 3.1 Business target of Sonha International Joint Stocks Company till 2020 3.1.1 The Company’s vision Son Ha’s business strategy is to focus on the growth of high revenue, high profit margin products such as stainless steel tube and water tank To ensure sustainable development, Son Ha is venturing into new business areas such as real estate, retail, and waste treatment Their vision towards 2020 is to maintain leading position in the stainless steel industry and create a strong foundation for their new business ventures in waste treatment and modern supermarket chain that aim at improving the people’s living standards To realize vision, the Company has identified core values, including: • Principle: Son Ha upholds ethical business practice and commits to bring the highest quality products • Attention: We believe that the colleagues’ attention given to each other is the key to improve the attention to details when dealing with customers • Unity: Son Ha’s collective work force today is built on the foundations of solidarity between the employees • Respect: Son Ha will always acknowledge the opinions of employees, partners and clients Son Ha is committed to quality, profitability and growth as the pillars for our success and sustainable development 3.1.2 Specific target  Industry strategy: • Maintain strong growth and solidify the No.1 position in Vietnam’s stainless steel industry, with core products including tank, sink, steel tube and solarenergy product 50 • Prepare for the future by developing new business lines: waste treatment, retail, real estate development, and expand to new markets (export to the U.S and Latin American markets) • For consumer products, namely tank, sink, and solar-energy product: develop the market and increase market share • For industrial goods: expand to new markets such as Latin America and Middle East in addition to the U.S and European markets • For trading and fabrication services: emphasize business efficiency and divest in case of poor performance 3.1.3 Strategic Options Based on all the analysis of macro environment, construction industry environment and internal environment of Son Ha company, we can identify the opportunities and threats of external environmrnt, strengths and weaknesses of internal environment, then we can use SWOT analysis to have an overall evaluation the position of Son Ha On that foundation, we can form different strategies to exploit the strengths, make maximum use of opportunities, reduce weaknesses and avoid threats Table 1.1 SWOT MATRIX MODEL Opportunities (O) External Stable politic in Vietnam factors Gradually completed Internal legal system Factors Recovered and developing economy Development of stock market The integration into the world economy The shifting in structure economy Higher average income Strength (S) Combination S+O Professal managing 51 Threats (T) Conflict between law and under-law decision High price of fuel and energy Harder competition The trend of increasing exchange rate Big requirement of investment Combination S+T ability Well implemented production High product quality Modern technology Good promotion activities Large distribution network High reputation Strong potential finance Weakness (W) Higher product price Young staff, lack of experience Low rate of undergraduate and post graduate rate Not competive discount policy Limited access to international market Strategy for differentiation Strategy for focus into key in product features clients: Strategy for differentiation Strategy for brand building in customer service and development Combination W+O Combination W+T Strategy for cost leadership Strategy for financial capability development Strategy 1: Strategy for differentiation in product features: Differentiaton in product features can be done by bringing into full play the long experience in industry so as to diversify the appearance of products with more outstanding utility feature, being suitable with and meeting the needs and tastes of clients and market The company’s products is needed to change and improved frequently Some features need to be concern such as: good quality with more operation function, easy to use, saving energy or best use of natural energy, easy to use and friendly with environment, etc Because Vietnam is usually lack of electricity, so some products that help to save energy, or can best use of natural energy will be preferred by customers 52 To create differency, the Company can concentrate in R & D activities that supply the Company information about what the customer need, which features of product need to be improved  Strategy 2: Strategy for cost leadership To well implement the cost leadership strategy, Son Ha has to concentrate in the following tasks: Technical standards: Clearly determining the process of production, using reasonably the capacity of equipment, avoiding waste of equipment capacity Enhancing management job, supervising production based on the system of supervisation with rewards, penalties, especially in the storage and use of raw materials Setting up regulations for working time, deviding working shifts reasonably to ensure that labor have a proper working and rest schedule.Encouraging innovation and creative ideas in construction in order to save cost and reduce production cost Minimizing costs of sales, R&D and service: at the moment, the Company’s sale expense is quite high that impact to its benefit To reduce these cost, Son Ha need to focus more related issue such as salesmen, delivery and distribution system, etc Building efficient scale facilities: production with big scale will help the Company to reduce cost a lot So the Company should try to invest in factories in order to improve its product’s competitive ability  Strategy 3: Strategy for focus into key clients: Concentrate and develop large customer as contractors and supply products for them in their construction works To develop and focus on vital customers, the Compay need to have a private policies for these customers with more favorable condition Working with local community about environment pollution problems, having a specific plan to help and support enterprises, which are running business on the area, solving waste treatments in the first period 53 Concentrating in big cities, industrial zones, trade villages where have high population density and large amount of waste Develop and expand market to remote or smaller market, creating favorable competitive pioneer  Strategy 4: Strategy for brand building and development Realizing the message: “for your better life” by production and business results, by product quality, by customer service, by continuously improving technical capability to meet with all needs of customers This message works as an affirmation to position Son Ha in the field of stainless steel sink This has been going with Son Ha and become the symbol of success To building brand, the Company also use some tools as below: - Usually have advertising or promotional campaigns - Attending social activities, especially the company can focus on problem which is in people’s concern such as pollution or natural energy Cooperating with government or local authorities to have campaign improving communities’ awareness of environment  Strategy 5: Strategy for differentiation in customer service Implementing post-investment management with Son Ha’s own style, creating favorable conditions for customers to use product manufactured by Son Ha To use this strategy, Son need to pay attention to below issues:  Usually training its staffs about communication with customers such as skills of answering telephone, skills of solving problems, skills of taking care customers, etc  Usually improving the Company’s abilily and knowledge Encouraging its employees attending training course or higher study  Ensure to contact regularly with customers Strategy 6: Strategy for financial capability development 54 Finance play an very importand role for any companies’ operation, it is usually considered “blood” to feed enterprise’s body In order to develop financial capability, Son Ha can attract capital from some resources:  Attractive capital resource through stock market Because the Company has been listed on stock market, so with a good status and feasible business plan, the company can sell its shares through new stock issuing plan  Cooperating with other partner is also a good way The organization can appeal other partner to attending its project It help the Company to reduce the stress of lacking finance and best use of others’ managing and operating ability 3.2 Selecting the best strategy for Son Ha: - Based on the standards and principles, we can carry out a comparison for different strategies, then select the best strategy for Son Ha to implement - We can use QSPM model to choose the optimum business strategy for Son Ha from the basic strategies analyzed above: 55 Figure 3.2/ QSPM model for choosing the Optimum Sstrategy for Son Ha Key factors ST1 ST2 ST3 ST4 ST5 ST6 Opportunities Weig ht (%) A S Tota A l AS S Tota A l AS S Tota A l AS S Tota A l AS S Tota A Tota l AS S l AS Stable politic in Vietnam 0.05 0.05 0.05 0.05 0.05 Gradually completed legal system Recovered and developing economy Development of stock market The integration into the world economy The shifting in structure economy Higher average income 0.1 0.05 0.1 0.05 0.05 11 0.33 0.33 0.33 0.44 0.22 0.24 0.16 0.08 0.32 0.16 0.36 0.27 0.36 0.27 0.27 0.24 0.16 0.24 0.16 0.16 11 0.44 0.44 0.44 0.44 0.44 0.07 0.07 0.07 0.07 0.07 0.1 0.3 0.10 0.1 0.1 0.36 0.48 0.48 0.48 0.48 0.16 0.16 0.08 0.08 0.08 0.18 0.18 0.12 0.12 0.12 0.1 0.1 0.05 0.05 0.15 0.0 0.1 0.05 0.05 0.05 0.1 0.1 0.1 0.1 0.1 0.2 0.3 0.3 Threats Conflict between law and under-law decision High price of fuel and 10 energy Harder competition 12 The trend of increasing exchange rate Big requirement of investment Total weighted score 0.2 0.2 0.3 0.3 0.2 100% Internal strengths Professor managing ability Well implemented production High product quality 0.27 0.18 0.18 0.36 0.27 Modern technology 0.32 0.24 0.08 0.24 0.32 promotion 0.27 0.18 0.27 0.36 0.36 distribution 11 0.33 0.33 0.44 0.33 0.44 Good activities Large network 0.1 0.1 0.4 0.3 0.2 0.0 0.4 High reputation 0.27 0.18 0.18 0.36 0.18 Strong potential finance 0.32 0.32 0.24 0.24 0.16 56 Internal weaknesses Higher product price 0.16 0.32 0.32 0.24 0.08 Young staff, lack of experience Low rate of undergraduate and post Not competive discount policy Limited access to international market 0.0 0.05 0.05 0.05 0.1 0.2 0.1 0.05 0.05 0.05 0.05 0.2 0.1 10 0.2 0.2 0.4 0.1 0.2 0.2 0.24 0.24 0.24 0.32 0.08 Total weighted score 100 0.2 5.4 5.31 5.09 5.38 4.94 Step 3: Identifying the total score of strategies based on criteria According to the analysis of weight ratio, we can see that the most suitable strategy for Son Ha’s current situation is Strategy and Strategy  Strategy 4: Strategy for brand buiding and development  Strategy 6: Strategy for financial capability development These strategies can be selected as they show the achievability and they are decisive in the success of Son Ha in the future In the current competitive business environment, it is necessary to Son Ha increasing financial capicity Because it is having a lot of project need to deplay, but if there is not enough capital, the process may be temporary delay Moreover, in current situation, attracting investment capital is not easy, therefore the company must have a specific strategy for growing its business operation Besise, it is vital for Son Ha to continue to build and develop its brand Brand always play an important role for any company’s development In case Son want to appeal investment, it would be easier for them if they have a good reputation in the market This is an important factor to help Son Ha keep the stable growth from now to 2020 and afterwards The analysis of strengths as well as outstanding problems of Son Ha as mentioned above is to bring into full play the strong points, to take the opportunities, to overcome weaknesses so as to work out the direction, measures to implement the 57 selected optimum strategy and improve the business operation during the period of 2011-2020 3.3 Solutions to strategy implementation 3.3.1 Solution to human resource development - Human resource can be allocated as follows: senior management team (Board) in charge of professional team (personel Department) and executive staff (workers, employees) Team of senior leader of the business affects strategy decision and the ability to trategy Therefore, senior leader need a clear policy relating to the Company’s operation, medium and long sighted limits on certain business areas to achieve competive advantage in the world and sustainable development For workers, there should be the learning expercience and disseminate new knowledge on technologies and techniques in place should be held regularly as this the best form to improve the professional qualifications of the staff and it creates the conditions for skilled workers commonly experce for the new workers and create coherence between them - In the long-term, Son Ha should have developed recruitment policies that provide open recruitment, matching of skills and interests to the jobs, promotion and training policies, etc New employees are provided with orientation and integration support as well as capability development and leadership trainings Outstanding staff are put into an intensive management training program to acquire necessary management and leadership skills for future promotion - Find candidates through the recruitment channels such as advertising on mass media (newspaper, radio, internet ) or through the company provided professional human resource (headhunter companies) to recruite and attract talent by having a reasonable wage policy 58 3.3.2 Solution to Marketing plan - For the marketing plan, the campany set up a Marketing and PR department for implementation of all marketing and PR activities of the Company - Advertising: Creating strong brand impression can also affect the direct customer of the company The advetising media should apply: internet, newspapers, brochure, television Advertising content to concise, more impressive is long lines, many questions and less words - Promotion: the form of promtion such as discounts, commission, gifts, discounts customer can be formed if a regualtion of the Company to creat mor credibility with customers 3.3.3 Improve the efficciency of the management information systems Currently, the company has applied information technology through the introduction of the Company on the web, finding infomation online however, such activities are not enought in the conditions of competition increasingly fierce as today To ensure business operations run well in the world constantly changes, the company should build themselves a system information such as information on business environment, information distribution system, prices, business partners To get this information system, the Company needs a serious investment for more complete information and quality Some orientation can be applied: - Make the most of information source in the internet, newspapers, other departments, branches however, for the internet, information resource needs carefully analysis to select the right information - The company has equipped the internal computer network between the parts department and Board of Directors and has contributed very effectively to the information processing activities daily In the coming time, the company continues to develop towards the application of new software on the management and communication 3.3.4 Improve the enterprise culture The company needs to a culture of good business with following: 59 - Set a direction and strategic vision for the company This help in making the company decide to focus its resource on where to gain maximum profit Not only map out a strategic plan that lead the company’ exposure to exchange with their employees and change their minds in order to achieve new development, thereby affecting the way you work of them - Develop a clear evaluation of the position and operation performance of the company: bring the strategic plan into specific jobs in each department and the mass production directly Allow the free discussion of the management of their desired goals within the specific time limit, then the implementation of new strategic plans realistic and feasible - To implement the objectives: manager suggest staff to set goals and have regular discussion with them to discuss and progress in works and achievments - Implement reward on the basis of equality: work efficiently associated with reward including physical and spiritual as the recognization of individual achievment 3.3.5 Improve financial management capacity Finance and Accounting of the Company must cooperate with other departments to establish the financial plan on a monthly, quarterly, annual and regular review the implementation of that plan to raise capital base in a timely manner Accounting systems and financials companies always evaluate the finincial indicators in each period to determine the business results to adjust timely finacial commercial loans, fixed assets 60 CONCLUSION To be successful in business, the task for enterprises in general and construction enterprises in particular is not only to set forth the business strategic target but also to analyze, investigate favorable factors that the strategies bring about On the one hand, it is necessary to find out opportunities, on the other hand there is the necessity to discover threats to the survival of enterprises to timely cope with them, ensuring that the enterprise must survive and steadily develop, strengthening and expanding marketing share This project report has clearly point out the objective necessity and the urgency of establishing business strategy for Son Ha International Joint Stock Company This strategy development is considered a practical need to solve the problems that Son Ha is facing Contributions of the project report: - The project report has clarified the nature and the role of corporation strategy, especially when our country is on the way of renovation and development - The report has proposed systematically and specifically the basic issues to complete the corporation strategy of Son Ha, it is the pre-requisite for Son Ha to affirm its position and brand in the trend of integration Our group wishes to make certain contribution to the development of Son Ha in terms of both theory and practice However, the research was done in a narrow aspect and within a limited time range, although the group wanted to research from many aspects, we can only reach basic ideas Therefore, this report will surely have some short-comings or lack of adequate and deep analysis over the issues that were raised Therefore, the group wishes to receive contributing comments from the Council Board and all students of International Master of Business Administration, so that our project report can be more complete 61 Our group would like to express our thanks to Lecturers, Professors and staff of ETC Center for Technology for creating all favorable conditions for us to be in touch with the most advanced knowledge of business management in the world, at the same time to complete well the program for Master of Business Administration organized by the Center Hanoi, April 2012 62 REFERENCE Strategic Management - Griggs University Son Ha International Corp (SHI) Anual Report, 2010, 2011 Chiến lược phát triển Kinh tế xã hội 2010-2020, MPI Vu Lien Son, Vietnam Economic environment and Financial Risk Vietnam Review – 2011, Country Watch Drucker, P.F “The Practice of Management” New York: Harper (1954) Porter, Michael “Competitive Strategy: Techniques for Analyzing Industries and Competitors” New York: Free Press (1985) Website, www.CafeF.vn Website, www.sonha.com.vn 10 Website, www.vneconomic.vn 11 Website of Ministry of Planning and Investment, www.mpi.gov.vn 63