Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (160)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTON PROJECT REPORT ENTERPRISE LEVEL BUSINESS STRATEGY OF SONG DA INFRASTRUCTURE JOINT STOCK COMPANY WITHIN THE PERIOD OF 2011-2020 Prepared by: 04 Class: GAMBA.V0110 Group members: Hoàng Thị Lan (group leader) Nguyễn Xuân Hoàng Thân Văn Trọng Hoàng Bá Anh Nguyễn Văn Hà Ha Tinh -09/2011 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 TABLE OF CONTENTS TABLE OF CONTENTS LIST OF ABBREVIATION .14 LIST OF TABLE 16 PREFACE 17 The need of topic study 17 Study purpose 17 Study object and scope 18 Study method 18 Structure of capston project report 18 CHAPTER I: ARGUMENTAL BASIS ON CONSTRUCTING BUSINESS STRATEGY 19 Definition and the role of business strategy .19 1.1 Definition of business strategy 19 1.2 The role of business strategy 20 Process of constructing business strategy 21 2.1 Define vision, mission and targets of the enterprise 21 2.2 Evaluate external environment of the enterprise 22 2.2.1 Macro environment .22 + Political and legal factor .22 + Economic factor: 22 + Social factor: 23 + Technical and technological factors 23 2.2.2 Sector environment .23 + Negotiation power of provider 24 + Negotiation power of buyer .24 + Penetration barriers 24 + Competitive pressure from replaced product .24 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 + Competitive pressure within the sector .24 2.3 Analysis of internal environment of the enterprise 25 2.3.1 Financial analysis 25 2.3.2 Analysis of human resource: .25 2.3.3 Analysis of infrastructure and technology 25 2.3.4 Analysis of competitive capacity of the enterprise 25 2.4 Selection of business strategy 25 2.4.1 Business unit level strategy 26 + Leading cost strategy 26 + Differential strategy 27 + Concentration strategy 28 2.4.2 Enterprise level strategy (multisector) 29 + Penetration strategy 29 - Contrariwise integration association 29 - Integration association 29 - Horizontal integration association .29 + Diversification strategy 30 - Co-centre diversification .30 - Horizontal diversification 30 - Mixed diversification 30 Strategy analysis models 31 3.1 3.2 3.3 SWOT matrix: 31 BCG matrix: .31 McKinsey - GE (General Electric) 33 CHAPTER II: ANALYSIS OF BUSINESS ENVIRONMENT AND INTERNAL ENVIRONEMNT OF SONG DA INFRASTRUCTURE JOINT STOCK COMPANY Introduction of Song Da infrastructure JSC 35 1.1 1.2 Formation and development 35 Organizational structure of management machine 35 /43 35 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 1.3 Development orientation, vision, mission of the company 36 1.3.1 Vision 36 1.3.2 Mission .36 1.3.3 Development orientation .37 1.4 Trading sectors of the company .37 Analysis of macro environemnt of the company 38 2.1 Political and legal factor 38 2.2 economic factor 38 2.3 Social factor 39 2.4 Technological factor 39 2.5 Natural factor 40 Analysis of business environment of the company 41 3.1 Analysis of pressure from customers .41 3.2 Analysis of threat from new opponents 41 3.3 Analysis of threat from replaced product 42 3.4 Analysis of competitive intensity among existing enterprise 42 3.5 Analysis of pressure from providers 43 Internal environment of enterprise 43 4.1 Analysis of resource of the company .43 4.1.1 Human resource: 43 4.1.2 Technology 44 4.2 Trading results and financial situation: 44 4.2.1 Trading results: 45 4.2.2 Financial situation: 46 Analysis of competitiveness of the company 48 5.1 SWOT analysis 48 5.1.1 (S - Strength) .48 5.1.2 (W- Weakness) 49 5.1.3 (O - Opportunities) 49 5.1.4 T - Threats) 49 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 CHAPTER III: SELECTION OF ENTERPRISE LEVEL BUSINESS STRATEGY FOR SONG DA INFRASTRUCTURE JOINT STOCK COMPANY WITHIN THE PERIOD OF 11-2020 AND IMPLEMENTATION SOLUTIONS .51 Selection of enterprise level strategy .51 1.1 BCG: 51 1.2 Evaluation of attraction and competitiveness of each sector according to matrix model of McKinsey 52 1.2.1 Evaluation of sector attraction 53 1.2.2 Evaluation of competitive capacity 54 Selection of business strategy for target sectors 58 2.1 Construction sector: 58 2.2 Fee station : 58 2.3 Petroleum and oil: 58 2.4 Construction materials : 59 2.5 Property trading .59 Implementation solutions .59 3.1 Solution of organizational structure and human resource 59 3.2 Solutions of science and technology 61 3.3 Solution of mobilization and using of capital 61 Implementation route 62 CONCLUSION 64 LIST OF REFERENCES 65 Appendix 1: 66 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 Abbreviated names BĐS CBCNV Công ty CP Công ty CP Hạ tầng Sông Đà DA DT Ma trận BCG Ma trận McKinsey - GE KHCN ROA ROE SXKD SWOT TS TTP VLXD Vietin bank XN LIST OF ABBREVIATIONS Contents Property Cadres and employees Joint stock company Song Da infrastructure JSC Project Revenue BCG (Boston Consulting Group) MC.KINSEY - GE Science and technology Asset withdrawal ratio Ratio of contributed capital withdrawal Business and production Strengths (S), Weaknesses (W), Opportunities (O), Threats (T) Asset Cost station Construction materials Viet Nam industrial and commercial bank Enterprise /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 LIST OF TABLES AND FIGURES Names of tables Tables and figures Figure1 BCG Figure MC.KINSEY - GE Figure Table Organizational structure of management machine of Song Da infrastructure JSC Financial norms in 2010 of Song Da infrastructure JSC Table Figure Figure Table Table General introduction of main projects of Song Da infrastructure JSC Sector’s attraction 10 Table 10 Competitiveness evaluation of Song Da infrastructure JSC 11 Table 11 12 Table 12 Revenue density of main business sector of Song Da infrastructure JSC Growth targets of Song Da infrastructure JSC within the period of 2011-2020 No Comparision among index of Song Da infrastructure JSC with sector’s mean Growth matrix of main business sectors of Song Da infrastructure JSC McKinsey of Song Da infrastructure JSC /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 PREFACE The need of topic study In the thought of modern economics market is the battle; violent competitive pressure will create outstanding companies as well as make a series of companies go to bankruptcy Then how to stand tall in such market storm? The answer for this question is in the capacity to construct business strategy and maintain competitive advantages of the enterprise; business strategy is a special plan that all enterprises must study to make before going into operation Vietnamese enterprises are born in a focused planning economy which is pressurized to accept the game in a global changed environment with violent competition They must find out the way to maintain their own existence and development; they must accept a series of testing that sometimes they must pay by their own fortune Reality has proved that an enterprise with determination, potential market, cannot define a right business strategy then it will waste of human resource leading to bad business results even bankruptcy On the contrary, a young enterprise with right business strategy will have firm steps to reach success This is the reason for us to choose the following topic “enterprise level business strategy of Song Da Infrastructure Joint Stock Company within the period of 2011-2020” We hope that with high collective determination of leading boards and employees of the company, strong support of Song Da Corporation with a right business strategy then it will create success for the enterprise Study purpose In the reason for topic choice we have raised the importance of constructing business strategy for enterprise in coping with competitive pressure of the market Then study purposes of the group are as follows: - Analyze factors to impact on business activities of Song Da Infrastructure Joint Stock Company - Business strategy construction within the period of 2010-2015 for the enterprise - Recommend functional strategies, concrete solutions to well implement chosen topic Study object and scope Study object is internal and external environment of the company; enterprise level business strategy of the enterprise within the period of 2011 – 2020 Study method This study will use qualitative methods such as observation, interview, and group discussion then synthesize, analyze and compare primary and secondary data on business environment and operational situation of Song Da Infrastructure Joint Stock Company Secondary data is collected from many resources such as Song Da Infrastructure Joint Stock Company, Song Da Corporation, Construction ministry, commercial and industrial ministry, ministry of planning and investment, Ha Tinh statistical agency, papers and Internet Primary data is collected via exchanges, direct interview with leading cadres in the company to get contents which are not in annual report; we can also get some information from leading board of the company in term of strategic orientation of the company in the coming years Structure of capston project report Capston project report includes three chapters: /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 Chapter 1: argumental basis of business strategy construction Chapter 2: business environmental and internal environment analysis of Song Da Infrastructure Joint Stock Company Chapter 3: enterprise level business strategy selection for Song Da Infrastructure Joint Stock Company within the period of 2011-2020 and implementation solutions CHAPTER 1: ARGUMENTAL BASIS OF BUSINESS STRATEGY CONSTRUCTING Definition and role of business strategy 1.1 Definition of business strategy The term of strategy originates from Greece which is used for the first time in military sector to indicate big and long term plans based on trusting what opponents can and cannot As usual strategy is the plan and art of military steering Nowadays, strategic term is widely used in different sectors; in business sector there are many approaches of strategy; according to traditional approaches, business strategy is considered as total long term of an organization to reach a long term targets Management history researcher Alfred D Chandler supposes that “strategy is to define basic long term targets of an enterprise and implement action plan together with allocate necessary resources to reach such targets” Then his thoughts have defined that strategy is a process of defining out of which enterprises can choose their own targets, define action plan to fulfill such targets and allocate equivalent resources Traditional approach has the strength to help enterprises to imagine what to to define strategy and realize profits of strategy in term of long term plan However in a changed business environment we can see the limitations in traditional approach because it cannot adapt to the change of business environment /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 According to current approach, strategy can be larger what enterprise expects or set up implementation plan According to viewpoints of Mintzberg, he supposes that strategy is a model in the flow of decisions and action plan The model can be any strategy: designed strategy or abnormal strategy Modern approach will help enterprise to easily cope with the changes of business environment and promote creation in the enterprise However it requires leader to have qualification and capacity to predict conditions for strategy implementation and evaluate values of abnormal strategy Via above approaches, we can understand that: business strategy of an enterprise is an art to construct long term targets and implementation policies to orient and create competitive advantage for enterprise Business strategy is to analyze, learn to know and find out the basic method, think of development orbit in business and production which is the plan with comprehensiveness, coordination and consistency leading business unit to ensure its own target; business strategy is to define basic targets of business unit, select medium and action plan, allocate necessary resources to implement business targets The term of strategy is used according to three popular meanings Firstly, general action plans and main resources implementation to reach given targets Secondly, organizational targets programs; used resources to reach such targets, policies to manage income, using and arrangement of such resources Thirdly, define long term targets and select operational method then allocate necessary resources to reach such given targets 1.2 The role of business strategy for the enterprise In the changed market currently, there is one thing that enterprises can know for sure which the change is; strategic administration will show orientation to help such organizations to overcome market storm, go ahead to the future by their own efforts and capacity Business strategy will be constructed to help the enterprise to adapt to long term changes Strategic administration will help enterprise to be more active in defining future at the same time create influences in operational environment then it can make use of all capacity to monitor and adapt to all external changes Strategic administration will give cadres the realization of importance; leader and labors all understand and commit to implement enterprise’s targets Then they will feel that they are a part of enterprise then they will commit to support and raise responsibility in all business and production activities Business strategy construction process A complete business strategy includes full implementation steps however within this report we will mention the first step to the step of strategy analysis and selection 2.1 Define vision, mission and targets of enterprise /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 - Cadres have high qualification, enthusiasm for working, flexible in applying science and technology in trading and producing of the company; constantly raise quality of fee receiving task and investment, construction as well as industrial production - Song Ad infrastructure JSC includes member units and associated companies then the company will have available market share from related units - Currently the company has many main projects of implementing infrastructure such as bridge, road, hydroelectric This can create good condition for the company to develop trading sectors of industrial production 5.1.2 W- Weakness - Song Da JSC is not active in modern technology for road fee receiving - The company must be via two years of operation and development then it cannot promote internal force; the task of project management has many limitations then many projects cannot be finished according to implementation progress for instance: National Road No.1A construction project - Capacity of contractor is limited because workers are mainly lowly skilled workers without high discipline - The company has no system for factories of construction materials to meet current demand 5.1.3.O - Opportunities - Viet Nam is integrating deeply into global economy then Vietnamese enterprises and Song Da infrastructure JSC have many opportunities to approach, learn from foreign enterprises then receive capital, technology from abroad - Viet Nam is in the process of constructing socialism then the whole nation is in the period of a huge worksite with many preferential treatments of infrastructure construction via creating good conditions for enterprises in the sector of traffic and construction - Currently in traffic and construction sector it tends to develop association among enterprises within the sector 5.1.4.(T - Threaten) - Vietnamese economy is coping with many difficulties out of which inflate rate is high, credit growth rate gets many problems then property market can have bad signals; construction projects can get many difficulties in disbursement task, - Oil price of global market is less stable which can create difficulties for enterprises of trading petroleum - Violent competition in construction and traffic sector is high because there are many enterprises penetrating into this sector meanwhile capital mobilization and technology can get many problems - Bad climate can impact on projects implementation progress SWOT synthesis O T S - Promote advantages of brand name, - Promote brand name of Song Da, capital, personnel and technology make use of advantages from capital - Promote advantage of market share and personnel to overcome 27 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 from subsidiaries, actively study and implement projects within the area and region - Bold to invest in the line of technology, promote the activities of construction material production W - Learn foreign science and technology, invest into stations - Actively select partners in construction sector such as production enterprise of construction materials as well as implementation units competitive opponents without any capacity - Expand activities to other area to limit difficulties of nature and expand market, business opportunities - Actively adapt to the changes of petroleum price to have stable input and output resource - Construction sector has big competitive pressure which requires capital, technology, personnel then the company should have professional structure transfer to reduce density of construction sector, increase density of service and industrial production CHƯƠNG III: ENTERPRISE LEVEL BUSINESS STRATEGY FOR SONG DA INFRASTRUCTURE JOINT STOCK COMPANY WITHIN THE PERIOD OF 2011-2020 AND IMPLEMENTATION SOLUTIONS Selection of enterprise level business strategy Song Da Infrastructure Joint Stock Company is trading three main sectors which are construction, exploitation of station services at infrastructure projects; petroleum Besides the company also does trading many related sectors of construction and property such as office leasing and housing projects; investment in construction materials; to evaluate and compare development prospect of such sectors then select preferential order of each sector then we will apply BCG and McKinsey matrix model 1.1 BCG: The matrix will analyze each operational sector of mutisector company compared to other sector ; in the main business sector of the company, construction sector occupies 33% revenue, petroleum and oil sector occupies 12% revenue; fee station of road project occupies 38% revenue; producing 28 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 construction materials and leasing office occupies % revenue Via analysis, BCG of the unit is as follows: + Star: construction, implementation has rather high growth rate and market share; this is because the company knows how to exploit the advantage, make use of capital and technology from parent company and associated companies Table main projects of Song Da infrastructure JSC Total invested capital (billion dong) Expected implementation time National Road no 1A Project to upgrade National road No.3 Giao An I & II hydroelectric projects 141 458,474 4.500 700 Finished Finished ¾ task Ngang mountainpass tunnel Quarter IV 2011 2012 (Source: business results of Song Da infrastructure JSC in 2010) + Milk cow: exploit fee station including Cau Rac fee station and Ngang mountainpass fee station to bring considerable income for the company + Question: petroleum and oil trading has high growth rate but low market share because it bears much competitive pressure; however this is the sector to bring high profit + Dog: construction material and office leasing are two sectors with low growth rate and market share of the company because the company has just gone into operation then there is no condition to allocate suitable resources for two sectors Figure : BCG of main sectors 29 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 QUESTION MILK COW DOG Construction materials production; office and housing leasing petroleum Low Sector growth rate High STAR Infrastructure implementation project 1.2 Evaluate attraction and competitiveness of each sector according to McKinsey matrix model Apart from BCG, McKinsey matrix model is also used to evaluate attraction and competitiveness in the main trading sectors of Song Da infrastructure JSC 1.2.1 Evaluate sector attraction Stations According to matrix model ofexploiting McKinsey, influence of factors will be marked from to out of which is the lowest level andof5Road is theprojects highest level Sector attraction is evaluated based on the following factors: market scale, market growth rate, profit ratio, competitive intensity, barriers of penetration Based on investigated and interviewed information then sector attraction Song Khaiof thác dịchDa vu infrastructure JSC is as follows: Table 3.2 : sector attraction Sector Fee Construction Property Construction Petroleum High relative market share Criteria station materials low projects Market scale 4 2 Market rate 4 3 Profit ratio 4 Competitive intensity Penetration barriers Synthesis 3 18 22 12 12 14 growth 30 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 (Collected information resource) Marking ladder from to is as follows: 1: unattractive; 2: less attractive; 3: rather attractive; 4: more attractive; 5: highly attractive Then attraction of trading sectors is as follows: fee station; construction; property; office leasing, housing, construction materials, petroleum and oil Then, construction sector is the traditional sector of Song Da infrastructure JSC with the advantage of prestige, capital, human resource However this sector has low profit ratio due to stagnant capital Moreover construction sector requires high demand of capital and human resource Road fee services have many promising future thanks to increased growth rate when infrastructure projects are finished With inclusive projects, when the company implements the infrastructure construction project it will receive fee to withdraw implementation capital then investment in personnel, technology for stations has become very important to raise effect of fee stations Property trading sector is an attractive sector in recent years which has high profit ratio However due to fastened credit policy, property market has many frozen signals then it can lead to stagnant capital of the enterprise Petroleum is a rather high profit ratio however this sector has rather high competitive intensity due to low penetration barriers; many enterprises and individuals have joined into such sector Construction material production is not paid much attention; Viet Nam mainly imports construction materials; this is because domestic enterprises have not owned new machines and technologies in this sector At the same time, construction materials will bear high competition from Chinese and European products 1.2.2 Evaluate competitiveness of Song Da infrastructure JSC: Competitiveness of Song Da infrastructure JSC is the main sector which will be evaluated by market share, price competition, quality and customers’ understanding The company is the main unit to implement business activities in Ha Tinh province; projects out of the area is granted by Song Da corporation; with such features, evaluation of competitiveness according to norms in McKinsey matrix model is mainly based on the comparision of sector’s mean marking ladder to evaluate competitiveness is from to is as follows: 1: weak competitiveness; 2: average competitiveness; 3: rather high competitiveness; 4: high competitiveness; 5: very high competitiveness Evaluation of competitiveness in construction is to compare with sector’s mean, with big unit such as Road construction No.1 JSc; Construction No.474 JSC; Road Construction No.1 company;… 31 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 Evaluation of competitiveness in fee station: compared objects are Ben Thuy fee station, Loc Ha fee station; Cau Gie fee station… Compared object in petroleum and oil sector is Petrolimex Nghe Tinh; Vung Ang Petrolimex JSC; big petroleum and oil stores in the province; In construction material sector, compared object is big stores of construction materials Office leasing: compared object is HUT urban infrastructure development in Ha Tinh, BMC,… Table 9: Evaluation of competitiveness of Song Da infrastructure JSC Sec tor Construction Factor relative market share Competitive price Product quality Understanding of customers Synthesis fee Petroleum Construction station and oil material Leased property 1 4 1 4 1 4 1 16 10 (Collected information source) 17 Synthesize results of attraction and competitiveness of main sectors of PVNC we will have McKinsey matrix as follows: Figure 3.2: McKinsey matrix of Song Da infrastructure JSC High Sector attracti on Constructi on Station exploiting Petroleum Property investmen t Construc tion material s 32 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 Low High Competitive position Low Company level strategy: after establishing BCG and McKinsey for the main trading sectors of Song Da infrastructure joint stock company then we can realize that the sector of construction and exploitation of road stations is the core sector to support property investment and development strategies of property management Construction materials will focus on studying, production to ensure stable and high quality for construction sector of the company Petroleum trading is to have the role of sector diversification for enterprise to raise profit; main sectors will support each other which can help the company to form constant values with high competitiveness and business effect Then, company level strategy of Song Da infrastructure JSC is a multisector and horizontal product diversification to maximize profit, promote potentials of trading sectors, expand market share, raise scale of enterprise To diversify products we will recommend the construction and development of Song Da infrastructure JSC the following strategies: - Vision: construct and develop the company to become a strong enterprise of Song Da Corporation; implement multisector and product diversification - Mission: raise product quality, economic effect, income of labors in the company; consider it as the measurement ruler for sustainable development and development motivation for the company - Targets: construct and develop the company to become a multisectoral enterprise with plentiful products; maintain traditional sectors; gradually develop new business sectors and industrial production Formation of subsidiaries in construction sector: traffic infrastructure, hydroelectric, urban, industrial production…to compete and operate within the Central and National region Establish and join in establishment of Joint Stock Company to invest in the following sectors: traffic infrastructure, urbane, hydroelectric…to create diversification in business and production Promote all resources of the company to raise competitiveness; trading products of the company have high competition, maintain and advertise brand name of Song Da within the market Maximize operational effect of the whole company and member units; consider economic effect, product quality, progress, material and mental life for labors as motivation for sustainable development Maintain and develop owner capital at the company; profitable trading and fulfill assigned tasks including criteria, profit ratio on owner capital which is the obligatory duty attaching to the right of company during development process of the company 33 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 The task of cost payment at Cau rac station, Ngang mountainpass station, BOT national road No.2 station always reach stable growth; trading petroleum and drinking and eating services will reach maximum revenue and profit Growth rate of the company by 2015 will be 8%, by 2020 will be 11% Density of revenue contribution of sectors within the period of 2011-2020 will change according to the orientation of construction reduction, increase of after-construction fee receiving and industrial production Table 3.4: revenue density of main business sectors of Song Da infrastructure JSC Density of revenue By 2015 By 2020 Construction 60-65% 45-50% Fee receiving after construction 30-35% 40-45% Construction materials 5-10% 10-15% Property trading and investment 5-10% 5-10% Table 3.5: Growth rate of Song Da infrastructure JSC within the period of 2011-2020 Targets By 2015 By 2020 Total business value 1.843 billion dong 2.841 billion dong Total revenue 1.673 billion dong 2.585 billion dong Profit 85 billion dong 105 billion dong Budget income payment 147 billion dong 240 billion dong Total labors 1.460 1.957 Average income 3,7 million dong/person 5,1 million dong/person Dividend rate 18% 21% Investment plan 1.152 billion dong 1.098 billion dong Enterprise level business strategy for each target sector 2.1 Construction sector: With the brand name of resources such as capital, technology, personnel, Song Da JSC is implementing many main projects To raise competitiveness of the company, apart from the success of implemented projects, it is the bridge for the company to implement other projects in the future then the company can implement solutions to reduce project implementation cost To implement such strategy, Song Da infrastructure JSC must construct a construction material production line to serve projects of the company to reduce material cost; besides the company must have strategies to associate closely with enterprises in the sector, implementation unit to raise implementation speed and reduce cost With leading cost strategy the company can create many wars of prices then overcome competitive opponents to expand market share 2.2 Fee stations exploiting : 34 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 To raise operational effect of stations the company must invest in applying new technology ; focus on the task of cadre training in stations especially management cadres, avoid damages and capacity to solve situations 2.3 Petroleum trading: Petroleum sector is the one with high profit ratio with low penetration barriers then many enterprises and individuals will join in this sector Then sector competition is very high Petroleum sector has the feature in which business unit cannot impact on input as well as output products ; all of business units must bear the same capital cost ; therefore to compete within the market, enterprise cannot based on price strategy To raise competitiveness, operational effect in this sector, Song Da infrastructure JSC must construct a series of petroleum stores with private features of the enterprise This will create impression in the mind of customers which can be from infrastructure of stores, or attached facilities for customers such as car parking, car washing Then with regard to petroleum sector, the company must apply differential strategy to raise competitiveness 2.4 Construction materials trading sector: To raise trading effect, construction cost, Song Da infrastructure JSC must have solutions to develop construction materials; By associating with production units of construction materials, investment in technological production, the company can meet demand of construction materials and provide to other enterprises This is the important factor for Song Da infrastructure JSC to raise competitiveness in construction sector then we can create basis for implementing fee receiving stations after investment 2.5 Property trading sector In current period, property trading gets many difficulties then the company must orient to strategy to look for and learn to know market to grasp market demand when property market is hot again The company must have strategy to associate with enterprise in the sector to implement projects of office leasing, high ranking apartment and flats for people of low income With regard to property trading , it requires enterprise to have good knowledge about the market with market segmentation capacity Implementation solutions To fulfill given strategy, Song Da infrastructure JSC has implemented comprehensively the following methods: 3.1 Solutions of organizational structure and human resource Arrange, innovate organizational structure of parent company, subsidiaries according to the orientation of Song Da Corporation to ensure the task of business management to reach high economic effect; privatize parent company which is Song Da infrastructure one member limited company in suitable time Establish professional companies in term of traffic, urban and industrial construction…and gradually set up representative office and expand operational scope within the whole nation Consider, receive potential units to consolidate and develop the unit 35 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 Associate, joint venture with domestic and foreign companies to establish joint stock and associated companies to implement new projects effectively Construct, check, adjust, supplement and promulgate regulation to ensure the task of administration, management of business activities of the company according to the method of management and administration; create comfortable mechanism for the units in operational group to meet development requirements with big scale and high speed Increase the task of enterprise management to increase output and save cost in production phases to ensure income increase and attract high quality labor force Urgently stabilize working machine; prepare personnel for new projects at the same time nurture professional skills to raise professional qualification for staffs Focus on checking conditions to ensure plan implementation within years from 2011 to 2015, make plan, implementation progress; define basic points to complete to be the basis for management and administration Implement corporate culture to each division, team and the whole organization according to development orientation of the company Salary payment for labors and implement fully state’s obligation Increase the task of business accounting to be the basis for cost monitoring and management Organize, arrange, and select, master plan cadres for the parent company and member units Construct and implement training plan to raise professional qualification for leading cadres to meet demand of human resource for offices, divisions, projects Construct recruitment plan and training cadres, engineers, technical workers, ensure enough quality and quantity with high qualification and professional skills with capacity of new technological management and application 3.2 Solution of science and technology Focus on steering to apply new technology in management from the company to member units; leader must define that this is one of leading duty in the task of operational innovation of the enterprise Currently, stations of the company have gradually applied new technology to use cross code according to standards defined by Road Agency Leader of stations must care for raising the facilities that such system brings to; at the same time draw experienced lessons to ensure optimal activities of fee receiving Actively study automatic technology to apply payment via banking card in suitable time Invest in technological machine, construct system of construction materials factory to meet demand of the company Construct quality management system according to ISO 9001:2000 3.3 Effective capital mobilization and using Increase financial potential of parent company, subsidiaries and the whole organization by raising output, lowering price, raising economic effect, accumulate and develop owner capital Increase the relation with credit organizations (domestic bank, financial companies, foreign bank…)via negotiation contracts 36 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 Construct business and production plan, plan of capital and cost, periodic profit; check plan implementation, analyze reasons and find out timely solutions to ensure maximum profit Prepare alternative of capital for invested projects; timely accounting report, provide accurate information for leader to manage capital to ensure project progress Mobilize capital from cadres to implement new projects especially projects of urban and hydroelectric projects Diversify capital mobilization then receive investment delegation of capital from organizations and individuals Implementation strategy  Construct strategy of sector business diversification in 2011  Approve strategy then submit administration council for approval in 2011  Finish remaining items of National Road No.1A project in Quarter IV of 2011 with total capital of 100 billion dong  Finish investment in process of fee receiving in Ngang mountainpass station in quarter I/2012 ; invested capital of 4,614 billion dong  Invest to upgrade accomodations in Cau Rac station ; expected time of quarter IV/2011 – quarter II/2012, invested capital of 3.958.680.000 dong  Invest in expanding trading sectors within Ha Tinh province; construct two petroleum stations within the period of 2012- 2013, invested capital of billion dong  Associate with Song Da Central urban center and industrial zone to implement invested projects of office, buildings, working housing, urban center in both sides of Phan Dinh Phung – Ha Tinh city, expected time is in 2014; value of 1400 billion dong  Invest in projects of traffic and urban centers; expected time of 2015-2020 with invested capital of 200 billion dong  Investment in construction and technological assemble for construction material production within the period of 2015 – 2018, capital of 15 billion dong  Strategic implementation evaluation within the period of 2011-2020 37 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 CONCLUSION Song Da infrastructure JSC has begun to operate in 9/2011 ; in spite of being newly established the company always defines that business strategy construction and implementation is very important in business activities ; construction an enterprise level business strategy will help the unit to have strong step in the market especially when the company operates in the sector with high competition and risk In the background in which Vietnamese enterprises are integrating into global market it requires enterprises to arrange then ready to receive and apply more knowledge, experiences of advanced management emthod ; suitable enterprise structure to ensure development, effective trading, increase domestic and regional competitiveness Within the period of 2011 – 2020, it is the period that the company has focused on consolidating and maintaining its own position in target market at the same time expand market, construct brand name in the North of the central for expanding production capacity and product diversification To understand and grasp enterprise level business strategy, our group has been bold to choose studied topic “business strategy of Song Da infrastructure JSC within the period of 2011-2020” with the expectation to make the topic go into reality, group - class Gamba V01.10 has studied, interviewed, looked for information as well as investment in time, knowledge, qualification and combination among members However during the process of topic study, with limited time, experiences of constructing business strategy then it cannot avoid mistakes ; then the group expects to receive the professional comments from the council to make the topic feasible Group IV wants to show the gratitude to leading board, cadres of the company, lecturers who have helped us to finish the report Best regards! GROUP - CLASS: GAMBA V0110 - GRIGGS UNIVERSITY 38 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 39 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 LIST OF REFERENCES Deputy Professor, doctor Lê Thế Giới, doctor Nguyễn Thanh Liêm, MBA Trần Hữu Hải (2009), Strategic management, statistical publishing house Deputy Professor Ngô Kim Thanh, Deputy Professor Lê Văn Tâm (2009), Strategic management, National economic University publishing house Deputy Professor Nguyễn Thị Liên Diệp, MBA Phạm Văn Nam (2006), Business strategy and policy, social labor publishing house, Ho Chi Minh city Nguyễn Hữu Lam (2009), Strategic administration to develop competitive position, statistical publishing house Lê Văn Tâm (2000), strategic management, statistical publishing house Tom Gorman (2009), basic MBA GRIGGS University, strategic administration Nam Xuan (23/5/2011), cost receiving modernization in Viet Nam, Tien Phong online Cầm Văn Kình , Hương Giang (30/6/2011), Inflate in 2011 will be about 17-18% , Tien Phong online 10 Ministry of labor, wounded soldiers and society (6/2011), socio-economic situation within beginning months of the year 11 Viet Nam road agency (2008), standards of 01:2008/VRA- road fee receiving station 12 Financial report in 2010 of Song Da infrastructure JSC 13 http://www.petrolimex.com.vn/: website of VietNam petroleum and oil corporation 14 http://tracuuxaydung.com 15 http://www.dpihatinh.gov.vn/: Website Department of planning and Investment of Ha Tinh province 16 http://www.hatinh.gov.vn/: Appendix 1: Top 10 enterprises to be complimented in term of state’s budget payment in Ha Tinh province Song Da infrastructure JSC; No 63- the third floor- Nguyen Chi Thanh street – Ha Tinh city Xuan Thanh development and investment JSC, block 8, Nam Ha ward, Ha Tinh city Viet Tiep services and construction JSC; Can Loc district, Ha Tinh province General construction No.269 JSC , Ha Tinh city, Ha Tinh province Dong Tien construction LTd Company, Ha Tinh city, Ha Tinh province Ha Tinh industrial, construction and commercial JSC; no.156, Ha Huy Tap street, Ha Tinh city Ha Tinh construction consultancy JSC, Nguyen Chi Thanh street, Ha Tinh city Hop Luc commerce and construction JSC, Thach Ha town, Ha Tinh province Service trading and construction no.666 JSC, Cam Xuyen district, Ha Tinh province 10 Cuong Ha service trading and construction JSC, Cam Xuyen district, Ha Tinh province 40 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 41 /43 ... CLASS: GAMBA V0110 - GRIGGS UNIVERSITY 38 /43 Group IV class GAMBA.V0110 Business strategy of Song Da infrastructure joint stock company within the period of 2011-2020 39 /43 Group IV class GAMBA.V0110... Giới, doctor Nguyễn Thanh Liêm, MBA Trần Hữu Hải (2009), Strategic management, statistical publishing house Deputy Professor Ngô Kim Thanh, Deputy Professor Lê Văn Tâm (2009), Strategic management,... management, National economic University publishing house Deputy Professor Nguyễn Thị Liên Diệp, MBA Phạm Văn Nam (2006), Business strategy and policy, social labor publishing house, Ho Chi Minh city