Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (141)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM BUILDING BUSINESS STRATEGY FOR SON KIM HA TINH TOURISM AND MINERAL WATER JOINT STOCK COMPANY FROM 2011 TO 2015 Group: 10 - Class: GeMBA 01.V02 Võ Văn Hiệp - Leader Nguyễn Xuân Hải - Member Phan Thanh Hải - Member Nguyễn Mẫu Lương Member - Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 HA NOI, 2010 PREFACE The necessity for research Soft drinks business and bottled water industry in Vietnam has undergone a process of formation and development from the late nineteenth century to the present The beverage industry is important, associated with the increasing demands of society Soft drinks business and bottled water industry has an important role in the national economy In 2007, industrial production value of mineral water accounted for 12.66% of beverage industry production value and 2.69% of export value of the whole industry The sector contributed 2.3% to the government budget, attracted over 14 thousand employees Soft drink bottling industry has 1,013 enterprises with production capacity of 2,129 million liters per year Especially from 2007 to now, the industry maintains high growth speed, averaging over 14% per year [1] According to general assessment, the recent market shows a clear shift in the bottled water industry While carbonated soft drinks fell by 5% market share, the industry is derived from natural and instant drink increased by 12% Improvement of living standard is premise to Vietnamese customers to care much more about the health issues Instead of "fully eat", today's consumers are towards "fine dining, food safety” so health criteria placed on top of the food choices Therefore, consumers are now more aware of this convenient drink The contribution of the soft drink business and bottling industry to production and added value is increasing However, the current stage of development of the soft drink and bottling industry in Vietnam reveals problems, such as generally low product quality, lack of competition, and inadequate development plans Besides, [ ] Nguyen, Q (2010, June 3) Soft drinks business Saigon Business , 52, 14 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 there are still many small-scale beverages companies, patchwork investment, lack of uniformity at many locals , resulting in no guarantee of quality, food hygiene and safety, state counterfeiting, unauthorized copying also cause damages to many businesses and consumers During the integration process, the pressures that beverage business and bottling industry face are very large Under WTO commitments, the support from the State sector will be reduced Protection policy with abolished quotas, tariffs will be reduced according to the schedule to make the beverage products from the oversea to appear more in the domestic market and fiercely compete with domestic products This really is a big challenge because the domestic market is the major consumption market of beverage business and bottling industry in Vietnam Not only having trouble in the "home market", the products when exported to other countries might also be impeded by trade barriers such as regulations on technical standards, quality, food hygiene and safety These criteria is now rigorously required while product quality by domestic manufactures is low, which leads to the difficulties in consumption It is said that the integration is open to a large market for the industry, but to penetrate into these markets is not easy, especially in the market with high requirements Contribution to the growth of drinks business and manufacturing industry, mineral water is a typical product which the consumer is increasingly interested The serious competition within the industry affects to the competition of mineral water’s bottlers For each business enterprise fast and sustainable development in the market requires every business must have a business strategy in the right direction Son Kim Ha Tinh Tourism and Mineral Water Joint Stock Company (SOKIMIWACO) is an enterprise producing natural mineral water with a capacity of 5,000,000 liters per year, is a business and bottling company of mineral water have a relatively large capacity in the areas of central provinces However, in recent Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 years SOKIMIWACO activities may not actually realize its full performance advantage of the business with precious natural resources It is the fact that, SOKIMWACO has many restrictions and other factors interfere - Firstly, in term of market, SOKIMIWACO faces severe competition from bottlers of beverage and mineral water in Nghe An and Ha Tinh provinces - Secondly, SOKIMIWACO has not built any strategies, vision, and mission yet In other words, the company does not have any specific operation objectives - Thirdly, products of the company in the past years still lacked quality, revenue and profits were low, even in recent years remained unprofitable - Fourthly, input factors for production of company are impacted by subjective factors (material, fuel, plastic) - Finally, mobilized funds for the production of SOKIMIWACO are still difficulties, outdated technology and low labor productivity, management level is still weak To assert competitive advantages and to help the company have long term development direction, to build brand, a suitable business strategy for the Company must be required With the above reasons, our group researched and recommended to build business strategy for SOKIMIWACO during the period of time from 2011 to 2015 Objectives and application of research The main purpose of this study is to select a long-term development strategy for the product of Son Kim natural mineral water based on assessment and environmental analysis, the internal and external prospects of soft drink bottling industry during the next five years The specific objectives of the study are: - Review the best model on development strategy of drinking water sector Identify strengths, weaknesses, opportunities, and threats of SOKIMIWACO Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 - Review the current situation of SOKIMIWACO to develop competitive programs - Build development strategy from 2010 to 2015 for SOKIMIWACO Objects and scope of research 3.1 Objects The object of study is the company, SOKIMIWACO This is a joint stock company that consists of two major shareholders: one is the economic corporation company and People's Committee of Ha Tinh and the other shareholders are employees of the Company 3.2 Scope The research scope of this topic is the production activities, current business activities, and external environmental factors affecting the operation of the Company This topic was studied and analyzed within weeks (from 01/8/2010 to 15/9/2010) The data used in the subject were collected from 2007 to present Research methodology Three basic methods to build long term development strategy of SOKIMIWACO are: 4.1 Research methods to the dossier: Information for this study came from several sources including annual reports of SOKIMIWACO and other figures of the mineral water industry 4.2 Interview method: The authors of this theme have directly interviewed a number of SOKIMIWACO key staff, chief of the sales branch, marketing staff, as well as workers The authors also discuss with the leaders of the company about the current situation and the development orientation of SOKIMIWACO next years In addition, customer questionnaires and evaluation statistics were also used at the same time Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 4.3 Methods of applying the theoretical model: Analysis of external factors includes analysis of PEST model, Five Competitive Forces of M Porter, analysis of internal factors, EFE, IFE, and SWOT matrixes Research structure This research includes three main parts  Part 1: Preface  Part 2: Content - Chapter 1: Theoretical foundation and the fact of building business strategy for SOKIMIWACO from 2010 to 2015 - Chapter 2: Overview and analysis of the business environment of SOKIMIWACO - Chapter 3: Selection of development strategy for SOKIMIWACO  Part3: Conclusion and recommendations Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 CHAPTER THEORETICAL FOUNDATION AND THE FACT OF BUILDING BUSINESS STRATEGY FOR HA TINH SON KIM TOURISM AND MINERAL WATER JOINT STOCK COMPANY FROM 2011 TO 2015 The theoretical foundation discussed in this chapter includes:  Definition of strategy, business strategy  Analysis of PEST model and forces of M Porter  Analysis of functional-based internal factors  Internal and external factor combination matrix  Selecting the suitable strategy from the SWOT analysis 1.1 Definition of strategy Business strategy has long been studied with many theories and concepts There are many views on the concept of strategy:  First point: Business Strategy is an art using tactics to succeed over the competitors This school of thought is common  Second point: The school of thought said that strategy is the art of creating competitive advantage Michael Porter of the Harvard Business School said, "Strategy is the art of building a solid competitive advantage to the defense" Schools of thought of France said that "Strategy is the art that companies use to combat competing for victory"  Third point: strategy is both plan and art; a good strategy going with good structure will bring to success This is an approach method of strategic management [2], and we also have different definition on strategy such as: In 1962 Chandler considered strategy as “The determination of the objectives, basic long-term goals of the enterprise and the application of a sequence of actions as well as the allocation of necessary resources to carry out this goal.” [ 3] [] Three points of view ( 2010, June) Strategy Administration MBA course p 12 [] Chandler, A (1962) Strategy and Structure Massachusetts: MIT Press Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 Quinn came in 1980 with the more general definition: "Strategy is the pattern or plan to integrate the major objectives, policies, and action sequences into a rigorously cohesive whole" Later, Johnson and Schole redefined strategy in environmental conditions having a lot of rapid changes: "Strategy is the long term direction and scope of an organization to gain competitive advantage for organizations through the format of its resources in a changing environment, to meet market demand and satisfy the expectations of our stakeholders" Strategy is divided into levels:  Corporate level strategy: Addressing what businesses the organization will operate?  Business level strategy: Addressing how to compete?  Functional level strategy: Addressing how important to implement function? (for example: human resource, marketing strategy) Today the strategy is commonly used as a factor to increase the possibility of success while minimizing the possibility of failure In summary, although there are many viewpoints and different definitions of strategy, this study's authors believe that this topic "business strategy is a series of complicated activities, to mobilize source of organization to achieve a specific purpose.” 1.2 PEST analysis and five competitive forces model of Michael Porter 1.2.1 PEST analysis: PEST analysis and five competitive forces model of Porter is to analyze the external factors acting on the enterprise and consider the impact on business production operations of enterprises, to analyze the opportunities, threats for the existence and development of the business PEST includes political, economic, sociocultural, technological, and natural elements [ 5] [ ] Strategy definition (2010, June) Strategy management MBA course p 20 [] PEST analysis and five competitive forces model of Michael Porter (2010) Marketing and strategy management documents MBA course Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 The basic elements of the external environment are shown in the picture below EXTERNAL FACTORS Political elements INTERNA L Economic elements Sociocultur al elements Technological elements Environment al elements FIGURE 1.1 External factors of the enterprise Economic factors: The factors that play an important role in the factors affecting the business activities of enterprises It includes the following elements: The economic growth, inflation, economic crisis, and personal income, and the gap between the rich and the poor in society Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 High economic growth, high personal income, and low inflation create opportunities for businesses to invest Conversely, low economic growth, low personal income will be challenges for enterprises Political factor: This factor covers political institutions, and the legal system Stable politics, the advantage of legal environment will be favorable conditions for development business Conversely, unstable political factors such as frequent occurrence of war or internal disputes, restricted law will be challenges to corporations Concerning policy, Vietnam in recent years has been rated as a country with political stability and has attracted foreign and domestic investors In contrast, neighboring Thailand in recent year often suffers internal disputes that cause difficulties in economic development for Thai enterprises, especially in tourism business Sociocultural factors: Social and cultural factors (tradition, habits, food & drink culture, shopping culture) impact on market’s demand and this is an opportunity for business to invest and develop Technological factors: Today this factor plays more important role, determining the business environment of the business The world is in the evolution of technology, a range of nascent technologies and applications It relates and impact on manufacturing companies, service, banking (payment cards, ATMs ) Environmental factors: The factors such as climate, soil, and mineral elements have impact on our business and production process Environment with moderate climate and country with many mineral resources brings opportunities for business development while environments with severe climate and few mineral resources create obstacles to business development Integration factors: In addition to these factors when studying the impact of the external environment, factors of integration affecting the industry should be considered No one can deny the trend of globalization, and this trend is a challenge for business to develop 10 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 The company has plans to reduce costs by increasing the number of trucks with large tonnage This means that the company will reduce transportation costs, focus on sales through major distributors, agents Delivery costs will be reduced for big sale contracts To reduce the costs, the company also encourages direct sales + Improving efficiency of using capital and assets Capital is one of the important and indispensable factors for any business in any market economy today Financial Analysis SOKIMIWACO above have shown that effective use of capital is low so SOKIMIWACO needs to actively build, mobilize and use capital in suitable way to improve efficiency, enhance competitiveness on market For fixed capital: The effective use of fixed capital actually improve the effective use of assets, better use of fixed assets for production and business would not only be recover investment capital quickly but also reduce production costs, increase revenues and profits This has character of industrial businesses with high value of property value and product quality SOKIMIWACO should focus on a number of directions to improve the efficient use of assets:  Improve efficiency in using assets of both capacity and time  Maintain , repair, replace periodically  Improve and modernize equipment and technology  Implement methods to prevent risks in production and business  Implement methods to prevent risks in production and business For working capital: Need to find funding for selected appropriate mobilization channels timely, avoid the situation in which excess capital is waste and lack of capital can disrupt business operations, and limits possible risks Financial analysis shows that SOKIMIWACO using borrowed capital is relatively large, which leads to high financial costs, increases production and reduce their competitiveness in the market So SOKIMIWACO should be flexible in finding the fund with appropriate interest rates, with some sources for SOKIMIWACO are: 59 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015  Banks loans: loan from the banks is supplement resource but not makes contribution to working capital of the company On the other hand, SOKIMIWACO should mobilize a medium and long term capital, because the use of short, medium, and long term loans will contribute to reducing temporary difficulties in capital, reduce part costs and increase profits However, to mobilize this capital, SOKIMIWACO must construct the feasible business plan  Venture Capital: The expansion of production and diversification of industries in SOKIMIWACO can cooperate with some partners and enterprises, which not only increase the capital for business activities but also study the experience in management, to acquire technical and scientific progress and technology transfer  Issuance of additional shares: This is the channel which can raise capital from shareholders for investment and development purposes To be able to mobilize capital in business adequately and timely and proactively, increase efficient use of working capital, SOKIMIWACO should consider several issues:  Develop strategies of mobilizing in accordance with market situation and business environment in each period  Create a trust for the supply of capital by improving the reputation, stability and rationalization of the financial criteria, payment,  Enhance the management of accounts receivable, minimize the amount of capital  Manage inventory, minimize inventory cost  Organize the consumption in order to speed up the flow of capital + Policies of developing human resource There are several main issues about human resource which SOKIMIWACO need to address are managing and assessing the quality of labor, quality of work, the salary structure and reward levels, attracting qualified workers, training and structure of the labor force 60 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 Managing and assessing the quality of work: SOKIMIWACO does not have the efficient system of assessing the quality of work, therefore, the company needs to build a standard system of assessing the quality based on standard "SMART" (i.e specific, measurable and capable of implementation, realistic and specific timelines) for each member of the team and organization  Regarding compensation and allowances: reward regime should be applied based on performance and economic efficiency of labors The long-term benefits such as insurance regime and other regimes must be seriously implemented; the right to buy shares when the company issues share should be given as priority  Attraction policy and training: According to the above analysis of the labor, SOKIMIWACO is in short in terms of quantity and poor quality, therefore SOKIMIWACO needs recruitment policies, preferential policies for selecting skilled and qualified workers; There must be short-term training for managers on terms such as business administration, marketing information technology, sending staff to study at the university, distance learning training for technical workers at the intermediate college and organize practical training in companies to improve their professional skills to better meet requirements of production and business tasks  Structure labor force and organizations: organizational structure should be qualified, sort function departments in reasonable way, arrange the teams, the workshop aimed to enhance rational executive management skills, increase labor productivity that will help SOKIMIWACO activities more effective + Managing production administration: In Practice, the process of production management of SOKIMIWACO has many weaknesses and in operational management subject we have been studying "production systems LEAN" and this theory can be applied most for work as well as the production process and business of the Company 61 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 In the operation of the company, there are always solutions to improve and labor management improvements and technological change processes Seek methods to remove the complainant, reduce inventory to business effectively Remove waste: There are seven types of waste from the point of Ohno: excess production, wait, Shipping and inventory, processing scraps, and waste products In exams today in subsidiaries waste exists to overcome it is: waiting, operation, transportation, product damage SOKIMIWACO therefore needs to solve this problem as: Planning, arranging the land ground in relevant science, recruit skilled workers, increased investment in transport, improved use of technology for more effective governance, managing the products from the input stage, minimize waste products There is relevant performance appraisal and fine for any action of saving and wastage Apply Kabans method for production: Planning the plot for all kinds of products, arrange inventory in reasonable way to include in Kaban system and production processes which is aimed to improve the quality of products and save costs Investment in Research and Development (R&D) SOKIMIWACO has not ever focused investment activities (R & D) in order to achieve good results SOKIMIWACO need to consider and invest more in R & D strategy and focus on the following three types: Product innovation strategy: Need to create differentiation of products compared to competitors; it requires R & D skills the most SOKIMIWACO immediately needs to change, add some kind of labels, more beautiful images Product development strategy: Need some investment in developing some new products from natural mineral water like luxurious products for high income customers, the products are easier to use for consumers 62 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 Process renewal strategy: The objective of this strategy is improving manufacturing processes, its aim is to reduce the consumption rate in production and business to reduce production costs and raise the product quality for business * Investment in information technology infrastructure SOKIMIWA may need to invest in information systems to apply for their business Firstly; the system will use internal information more efficiently, such as computer accounting system, customer management systems, the Internet can be also used to apply for online sale 3.3 Plans to implement the strategies SOKIMIWACO needs to some work to realize the strategy in 2015 and improve the leading market share in Nghe An, Ha Tinh market and quickly dominate the market of mineral water in the Northern TABLE 3.3: Progress of implementing strategy of SOKIMIWACO from 2011 to 2015 Main contents Year of implement 2011 2012 2013 2014 2015 Core competencies, Persons in charge Director, market market, target customers Mission of Director, planning SOKIMIWACO Function strategy Director, departments - Restructure PP channel - Construct HR development policies - Build efficiency of 63 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 using capital, assets - Invest into R&D - Invest in information technology infrastructure Expanding market Director, market strategy - Construct the strategy of maintaining and developing target market - Construct expanding consumption network in the central provinces and the North Growth strategy Director, planning - Diversify types of products RECOMMENDATION AND CONCLUSION RECOMMENDATION Currently, SOKIMIWACO is still a weak enterprise, to achieve the overall strategy to bring SOKIMIWACO become one of the leading brands in the region and over country in aspect of manufacturing sector we find that SOKIMIWACO has still many challenges and difficulties So the authors would like to have some recommendations to ensure the success of SOKIMIWACO 64 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 In managing business, SOKIMIWACO should focus on maintaining and developing markets, especially developing markets and distribution channels scientifically There should be good trade policy, best customer service In production, managing strictly inputs of production to reduce production costs, using the effective capacity of machinery, the solution to increase labor productivity, apply good strategy of leading position to create competitive advantage, there should be policies for attracting and training to improve labor quality, investment in work (R & D) system and the information technology Recommendation for the government of Viet Nam The Government of Vietnam and the provinces should consider a strict mechanism to more closely manage the water company and strictly handle the companies producing bad quality of or producing imitation goods There are policies to stabilize prices, limit inflation, stimulating exports Recommendation for Ha Tinh province The company is located in the area of the province The company makes contribution to the budget of the province, creates jobs to millions of employees It is recommended that the province support the company in terms of consuming products of Kim Son, there is reasonable tax exemption policy because SOKIMIWACO is located in border economic bridges Closely manage the quality of water production facilities which produce counterfeiting, imitation products Support investment projects and training of labor, construct labor quality CONCLUSION Implementing the policy guidelines of the Party and State in terms of organizing, improving and reforming the efficiency of enterprises, the government forms a strong unit in the region, is highly competitive, SOKIMIWACO should seriously study and build the overall strategy of sustainable development to 2015 and orientation for the next years, which took mineral water business as the core business, deploy the diverse businesses in accordance with the Company 65 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 Period 2011 - 2015 is the time when SOKIMIWACO needs to concentrate strengthening and maintaining its position in target markets, and continue market expansion; brand building is selected in central and southern areas to prepare for investment strategy to expand production capacity and product diversification Authors sincerely thank the help of concerned departments as well as leaders of Son Kim Mineral Water and Tourism Joint stock company who have facilitated our entry for real; learn about the production and business activities of the Company and useful discussions to complete this report Despite many efforts in the research process to complete this report, however, because the authors did it in limited conditions may also be limited in many aspects and limited time, knowledge, information sources Therefore, data analysis and comparison are not really deep, need to be improved in further study On the other hand, due to limitations of the subjective from author should, it can be sure that this report has many shortcomings and limitations Therefore, the author would like to receive more contribution from scientists, teachers, friends and colleagues for continuing to complete this project and hope that it will be completed for developing strategies for sustainable development of Son Kim Mineral Water and Tourism Joint stock company We believe that when the overall strategy is implemented, SOKIMIWACO will quickly become one of leading companies producing mineral water at central region of Vietnam and bring benefits to shareholders, employees, customers, and society REFERENCES Griinig, R & Kiihn, R.(2007) Strategic planning process (T N Pham., V H Vo , L T Le.) Hanoi: Science and Technology (Original work published 2003) Griggs University (2009) Operations Management Hanoi: Hanoi National University 66 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 Grigg University (2009) Strategic Management & Marketing Management Hanoi: Hanoi National University Heiman, E S & Sanchez, D (2004) The new Strategic Selling (T N Pham., V H Vo ,L T Le.) Hanoi: Culture and Information (Original work published 2001) Le, B S (2001) Analysis of business strategy Hanoi: The National Politics SOKIMIWACO (2009) Reports on Business Result of SOKIMIWACO from 2007 to 2009 Ha Tinh SOKIMIWACO (2010) Result of Marketing Investigation of SOKIMIWACO in September 2009 Ha Tinh APPENDIX Interviews of key employers of SOKIMIWACO Objects 67 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015  The Executive Director  The Vice Director  The leaders of Financial Department, Plan Department, and Sales Department  Marketing staff Time: September, 2010 Content 3.1 Current situation of business Overview of production and business activities of SOKIMIWACO from 2007 to 2010  Current situation of production equipment and technology  Production capacity of the enterprise  Consuming tendency for mineral water at present and in the future  Ability of development and expansion of the market 3.2 Labor force competences  Experienced, capable and enthusiastic employees  employees with low quality 3.2 Training policy of human resource development  Training policy of human resource development  Salary, bonus, and promotion 3.3 orientation of SOKIMIWACO development in the future  Orientation of SOKIMIWACO development in the future in line with the general orientation of the beverage industry in Vietnam 68 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015  SOKIMIWACO will invest in building the production process with the expanded capacity of 20 million liters per year 3.4 Product quality  All products of natural mineral water are produced with high quality  There is a difference with other products 69 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 TABLE OF CONTENT Item Content Page Cover page Confirmation of the leaders of SOKIMIWACO Abbreviation Son Kim Ha Tinh Tourism and Mineral Water Joint Stock Company SOKIMIWACO External Factor Evaluation Matrix EFE Internal Factor Evaluation Matrix IFE Research and Development R&D List of tables Table 1.1 External factor evaluation matrix 15 Table 1.2 Internal factor evaluation matrix 16 Table 1.3 SWOT matrix 18 Table 2.1 Performance of manufacturing and business from 2007 to 2009 23 Table 2.2 Accounting balance of SOKIMIWACO on 31st December, 2009 26 Table 2.3 Analysis of ratios 27 Table 2.4 Analysis of labor rate 28 Table 2.5 Selling price list 36 Table 2.6 Price list compare 38 Table 2.7 Market share of Son Kim in Nghe An and Ha Tinh market (Bottles of 20 liters) 39 Table 2.8 Market share of Son Kim in Nghe An and Ha Tinh market (Bottled water products) 40 Table 2.9 External factors matrix 42 Table 2.10 Internal environmental factors matrix 44 Table 3.1 SWOT analysis of SOKIMIWACO 50 70 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 Table 3.2 Output plan of SOKIMIWACO by 2015 56 Table 3.3 Progress of implementing strategy of SOKIMIWACO from 2011– 2015 65 List of figures Figure1.1 External factors of the enterprise Figure 1.2 PEST analysis frameworks 11 Figure 1.3 Five Competitive Forces model of Michael Porter 12 Figure 2.1 Organizational structure of SOKIMIWACO 22 Figure 2.2 Internal environmental factors 46 Figure 3.1 Model of distribution channel 59 PREFACE The necessity for research 2 Objectives and application of research Objects and scope of research Research methodology 5 Research structure The theoretical foundation and the fact of building business strategy for Hatinh Son Kim Tourism and Mineral Water Stock Company from 2011 to 2015 1.1 Definition of strategy 1.2 PEST analysis and five competitive forces model of Michael Porter 1.2.1 PEST analysis 1.2.2 Analysis of five forces of Michael Porter 11 Functional analysis 14 Chapter 1.3 71 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 External and internal factors combination matrix 14 1.4.1 External factor evaluation matrix 14 1.4.2 Internal factor evaluation matrix 16 1.5 SWOT matrix 17 1.6 Basic competitive strategy 19 1.6.1 Cost leadership strategy 19 1.6.2 Differentiation matrix 19 1.6.3 Focused strategy 19 Overview and analysis of business environment of Son Kim Ha Tinh Tourism and Mineral Water Joint Stock Company 20 1.4 Chapter Overview of Son Kim Ha Tinh Tourism and Mineral Water Joint Stock Company 20 2.1.1 History and development of SOKIMIWACO 21 2.1.2 Functions and tasks 22 2.1.3 Organizational structure 22 2.1.4 Performance of manufacturing and business from 2007 to 2009 23 Analysis of international environment of SOKIMIWACO 23 2.2.1 Sales & Marketing 23 2.2.2 Analysis of Financial resources 25 2.2.3 Analysis of human resources 28 2.2.4 Production and technology 29 2.2.5 Production administration 30 Analysis of the external environment 30 PEST model 30 2.3.1.1 Economic elements 30 2.3.1.2 Legal and political elements 32 2.3.1.3 Cultural and social elements 33 2.1 2.2 2.3 2.3.1 72 Building Business Strategy for Son Kim Ha Tinh Toursim and Mineral Water Joint Stock Company from 2011 to 2015 2.3.1.4 Technological elements 34 2.3.1.5 Natural end environmental elements 34 M Porter’s five forces 35 2.3.2.1 Rivalry 35 2.3.2.2 Threats of new entrants 39 2.3.2.3 Bargaining power of buyers 41 2.3.2.4 Bargaining of suppliers 41 2.3.2.5 Threats of substitute products 41 Internal and external factor matrix 42 2.4.1 External factors matrix 42 2.4.2 Internal factors environment 43 Selecting development strategy for SOKIMIWACO from 2011 to 2015 47 S.W.O.T analysis 47 3.1.1 Strengths and weaknesses 47 3.1.2 Opportunities and threats 48 Selecting strategic plan for SOKIMIWACO from 2011 to 2015 49 3.2.1 Mission of SOKIMWACO 49 3.2.2 Selecting strategies for SOKIMIWACO from 2011 to 2016 50 3.2.2.1 Growth strategy 55 3.2.2.2 Strategies of maintaining and expanding markets 58 3.2.2.3 Functional strategy 59 Plans to implement the strategies 65 RECOMMENDATION AND CONCLUSION 67 REFERENCES 69 APPENDIX 70 2.3.2 2.4 Chapter 3.1 3.2 3.3 73 ... (2010, June) Strategy management MBA course p 20 [] PEST analysis and five competitive forces model of Michael Porter (2010) Marketing and strategy management documents MBA course Building Business... resources to carry out this goal.” [ 3] [] Three points of view ( 2010, June) Strategy Administration MBA course p 12 [] Chandler, A (1962) Strategy and Structure Massachusetts: MIT Press Building Business... the defense" Schools of thought of France said that "Strategy is the art that companies use to combat competing for victory"  Third point: strategy is both plan and art; a good strategy going