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GaMBA01.X0710 – Strategic Management CAPSTONE PROJECT REPORT Formulating business strategy for Song Da 207 Joint Stock Company in 2012-2016 period Nguyen Hai Ha Pham Dinh Hiep Cao Viet Tung Dao Trung Dung GaMBA01.X0710 H A N O I 20 1 GaMBA01.X0710 – Strategic Management Group – X0710 Nguyen Hai Ha Pham Dinh Hiep Cao Viet Tung Dao Trung Dung Topic Formulating business strategy for Song Da 207 Joint Stock Company in 2012-2016 period GaMBA01.X0710 – Strategic Management CONFIRMATION AND EVALUATION OF SONG DA 207 JOINT STOCK COMPANY Contribution of the study The study of group - class GaMBA-X0710 not only points out suitable scientific theoretical point, but also makes practical contribution to Song Da 207 in formulating business strategy Scientific implication: In the market economy, business strategy has decisive implication to the success or failure of every enterprise Business strategy is important to all enterprises rather than a certain one To exist and develop, firstly, enterprises must have a good and effective business strategy There are many approaches to formulate business strategy for enterprises The scientific implication of the study is summarizing theories from many different sources to create a business strategy formulation process for enterprises in the most basic, understandable and user-friendly way Practical implication: From the vital implication of business strategy formulation, the study makes contribution to asserting the importance of business strategy formulation, providing enterprises in general and Song Da 207 in particular an approach on the method to formulate business strategy for enterprises In the market economy with fierce competition, formulating a successful business strategy is a difficult and complicated task There are many approaches to formulate business strategy; however, the formulation of an appropriate and effective business strategy is not easy The study has given out an approach to create a strategy formulation process which is suitable with the current situation in Vietnam and it is not only applicable to Song Da 207, but also to many other enterprises The basic issues in strategy formulation process include: Determining the objective of the enterprise; evaluating environment factors affecting the enterprise; finding out opportunities and threats to the enterprise’s GaMBA01.X0710 – Strategic Management operation combined with evaluating strengths and weaknesses of the enterprise to establish matrices for strategy formulation and create a complete business strategy To Song Da 207, this study is very valuable; it helps the Company’s board of leaders in formulating business strategy; reinforcing and promoting the Company’s brand image via raising product quality and effectiveness of sale services, bringing about high efficiency for Song Da 207 Shortcomings of the study and following research orientation The conclusions of the study are withdrawn based on the real situation at Song Da 207 Company; therefore, according to Song Da 207, the application of these solutions and conclusions into other enterprises will need more researches On behalf of Song Da 207’s board of leaders, I would like to express our sincere thank to members of group for your study./ GENERAL DIRECTOR OF THE COMPANY GaMBA01.X0710 – Strategic Management ACKNOWLEDGEMENT To complete the capstone project report, Global Advanced Master of Business Administration Program (GaMBA), members of group - class GaMBA.X0710 have received support, instruction and enthusiastic contribution from lecturers, staffs of GaMBA Program and Song Da 207’s board of leaders We would like to express our gratitude to the Board of Directors, Training Bureau, Class Management Division, etc of GaMBA Program We would like to express our sincere thank to the board of leaders and staffs at Center for Educational Technology and Career Development – Vietnam National University, Hanoi and Griggs University (USA) Thanks to your support, we have been able to study in the most favorable environment We are also grateful to lecturers of GaMBA and Griggs University for their enthusiasm and conscience in teaching process and impart useful knowledge for us to apply in our current work Although the group has tried a lot, the quality of the capstone project report still contains a number of shortcomings owing to our work-study condition We expect and would like to develop the study further in terms of theories as well as application in the real business situation of Song Da 207 with the expectation to contribute a little into the success and sustainable development of Song Da 207 in the coming competitive and integrated environment We have tried to complete the capstone project report in the best way with our knowledge and capacity; however, shortcomings are unavoidable and we hope to receive valuable contribution from the teachers and friends./ Members of group GaMBA01.X0710 – Strategic Management APPENDIX CONFIRMATION AND EVALUATION OF SONG DA 207 JOINT STOCK COMPANY ACKNOWLEDGEMENT .4 PREFACE THE NECESSITY AND IMPLICATION OF THE STUDY OBJECTIVES AND SCOPE OF THE STUDY 10 2.1 Objective 10 2.2 Object and scope of the study 11 METHODOLOGY OF THE STUDY 11 STRUCTURE OF THE CAPSTONE PROJECT REPORT 12 Chapter 13 THEORETICAL BACKGROUND OF THE STUDY 13 1.1 CONCEPT, ROLE AND CHARACTERISTICS OF BUSINESS STRATEGY 13 1.1.1 Concept of business strategy 13 1.1.1.1 Concept 13 1.1.1.2 Background of strategy 14 1.1.2 Role of business strategy 15 1.1.3 Basic characteristics of business strategy 16 1.2 STRATEGY FORMULATION PROCESS 16 1.2.1 Internal and external environment analysis 17 1.2.1.1 Internal environment analysis .17 1.2.1.2 External environment analysis .17 1.2.2 Formulating matrices to select business strategy 23 1.2.2.1 External factor evaluation matrix 23 1.2.2.2 Internal factor evaluation matrix 24 1.2.2.3 Competitive profile matrix 24 GaMBA01.X0710 – Strategic Management 1.2.2.4 SWOT Matrix .25 1.2.3 Business strategy selection .27 1.2.3.1 Strategy implementation .28 1.2.3.2 Strategy evaluation .28 Chapter 30 REAL BUSINESS SITUATION ANALYSIS OF SONG DA 207 JOINT STOCK COMPANY 30 2.1 OVERIVEW OF SONG DA 207 30 2.1.1 Establishment process and organizational structure 30 2.1.2 Major business lines of the Company 31 2.1.3 Business results in 2008-2010 period and the first months of 2011 32 2.2 ANALYSIS OF BUSINESS SITUATION AND BUSINESS RESULTS OF SONG DA 207 36 2.2.1 External environment analysis 36 2.2.1.1 Macro-environment 36 2.2.1.2 Industry environment and competition 39 2.2.2 Internal environment analysis .49 2.2.2.1 Resources 49 2.2.2.2 Strengths .54 2.2.2.3 Weaknesses 56 2.2.3 Matrices for strategy selection .57 2.2.3.1 Internal-External Factor Evaluation Matrices 57 2.2.3.2 Competitive Profile Matrix 59 2.2.3.3 BCG Matrix 62 2.2.3.4 SWOT Matrix 65 Chapter 73 RECOMMENDATIONS AND SOLUTIONS 73 3.1 OBJECTIVE TO 2016 AND VISION TO 2020 OF SONG DA 207 74 GaMBA01.X0710 – Strategic Management 3.1.1 Objective to 2016 74 3.1.1.1 Strategic objective 74 3.1.1.2 Concrete objectives 74 3.1.2 Vision to 2020 75 3.2 RECOMMENDATIONS TO SONG DA 207 IN COMPLETING BUSINESS STRATEGY .75 3.2.1 Business strategy formulation .75 3.2.2 Business strategy selection 80 3.2.2.1 Bases for selection .80 3.2.2.2 Determining business strategy .84 * Corporate-level strategy 84 * Functional-level strategies .84 3.3 SUGGESTION ON SOLUTIONS FOR IMPLEMENTATION .86 3.3.1 Solutions on operation management .86 3.3.2 Solutions on marketing management 87 3.3.3 Solutions on human resource management 89 LIST OF REFERENCES 95 GaMBA01.X0710 – Strategic Management LIST OF TALBES AND FIGURES Table 1.1: External Factor Evaluation Matrix Table 1.2: Internal Factor Evaluation Matrix Table 1.3: Competitive Profile Matrix Table 1.4 SWOT Matrix Table 1.5 Strategy selection Table 2.1: Business results in 2008, 2009 and 2010 Table 2.2: Business results in the first months of 2011 Table 2.3: Construction and installation revenue in 2008, 2009 and 2010 Table 2.4: List of some major material suppliers for Song Da 207 Table 2.5: External Factor Evaluation (EFE) Matrix of Song Da 207 Table 2.6: Internal Factor Evaluation Matrix of Song Da 207 (IFE) Table 2.7: Competitive Profile Matrix (CPM) of Song Da 207 JSC Table 2.8: Some socio-economic targets Table 3.1: SWOT Matrix of Song Da 207 Table 3.2: Comparison of possible strategies Table 3.3: QSPM for strategy selection LIST OF FIGURES Figure 1.1 Business strategy Figure 1.2 Business strategy formulation process Figure 1.3 Macro-environment Figure 1.4 Five Forces Model Figure 2.1 Revenue and profit over the past three years Figure 2.2: Revenue and profit in the first months of 2011 Figure 2.3: Structure of products and services by output Figure 2.4: BCG Matrix GaMBA01.X0710 – Strategic Management PREFACE THE NECESSITY AND IMPLICATION OF THE STUDY As we may know that the world economy has fell into the worst crisis in many decades That is the financial crisis that has resulted in the collapse of many banking systems, securities market and real estate bubble After the economy has just entered the process of reformation and recovery; in 2011, the world continues to face the debt crisis that has been happening in many countries and territories Along with the world economic integration, Vietnam is stepping into the age of industrialization and modernization; developing infrastructure and socio-economy in the context that the world economic situation becomes worse In the market economy, enterprises need to make careful preparation for business and production activities in the future in order to exist and develop There must be short-term plans for short-term objectives; and strategies for long-term goals With high competitive businesses and high investment, the formulation of development strategy is very important and has significant implication to enterprises’ operation process The world economic integration always has two aspects It opens new opportunities of economic cooperation, helping domestic construction enterprises to access science, technology and learns advanced and effective management methods Besides, it also brings about tougher competition, forcing domestic construction enterprises to nonstop renovate, establish and plan correct orientation; sustain and ceaselessly expand market share; and operate effectively in the short-term and in the long-term in the context that the macro-economy contains a lot of risks Construction sector is a specific business field and has special importance in the process of the world economic development, but is also very sensitive to the changes in domestic and international economic-politic-social environment Therefore, activities of enterprise in construction sector is also paid attention and checked strictly Besides, the industry rivalry has become tougher and tougher along with the world’s deep economic integration Therefore, effective studying and formulating business GaMBA01.X0710 – Strategic Management for Song Da 207 to non-stop expand market and grasp business production chance to bring in revenue and profit - Market penetration strategy: Real-estate business investment is not a new field, but Song Da 207 should consider and pay more attention to how to make realestate business investment bring in revenue and profit to Song Da 207 In the current context, the real-estate market is facing many risks and requiring for high capital However, in the near future, this activity will recover and the market will be more transparent Song Da 207 does not big land fund, and its financial potential is limited, so in the coming time (2010-2016), Song Da 207 will take part in the realestate market under the form of business cooperation This form will bring Song Da 207 experiences of partners in the new field, saving time because legal procedures of the project are available or nearly completed With this form of cooperation, revenue gained from the investment of Song Da is not high; it is even breakeven However, thanks to this operation, it is easy for Song Da 207 to be a main contractor undertaking construction and installation for projects or transferring the jobs to its members, taking revenue gained from construction and installation to offset revenue of investment - Differentiation strategy introduces some differential construction technologies Presently, Song Da 207 is applying tradition construction methods; construction materials which are characterized by Song Da construction are also traditional However, in the long term, Song Da 207 also needs study and apply advanced technologies to the construction as well as selection of modern construction materials which are environment-friendly, creating differentiation and gradually forming a particularity of “Song Da 207” Therefore, selecting a differentiation strategy is suitable to the development of the country and the current context that construction market is facing fierce competition - Cost leadership strategy: This strategy ranks fourth and is very important, but at present, low cost means that product quality is not high; the progress is not ensured with any commitment on product Song Da 207 does not pursue this 79 GaMBA01.X0710 – Strategic Management purpose and the Company developed itself a strong brand on constructing civil works, programming new urban areas, and transport works The reduction in prices will have significant impact on revenue and profit of the Company, but the study on reducing product price is also a thing to which Song Da 207 should be pay attention and find solutions to maintain the supply of products with good quality and reasonable price, suitable to segments of target customers 3.2.2.2 Determining business strategy Originated from the target and situation of the market, real situation of Song Da 207 and matrices on selecting strategies as analyzed above, the business production strategies of Song Da 207 in 2012 - 2016 period are as follows: * Corporate-level strategy Song Da 207 has been asserting its position and brand in constructing civil works It continues to maintain and develop the construction of transport works in the next few years During this period, the Company will also participate in the field of real-estate business investment and act as a master investor of the construction projects as well as bring in the role as a construction contractor for the Company and its members * Functional-level strategies Corporate-level strategy is a general business strategy implemented to reach the target of the enterprise In order to carrying out successful the general business strategy, the Company have to develop functional-level and solutions for carrying out successful those strategies As presented above, Song Da 207 selected market expansion strategy, market penetration strategy and product differentiation strategy because the Company self-determined its position in the market, clearly knew its strengths, weaknesses as well as opportunities and threats from the external environment The market expansion strategy, market penetration strategy and product differentiation strategy need have solutions as well as qualified human resource, the key to the success 80 GaMBA01.X0710 – Strategic Management 3.3 SUGGESTION ON SOLUTIONS FOR IMPLEMENTATION 3.3.1 Solutions on operation management - Material supply management: As we know, the material is an important factor that makes up the production cost of the product During construction, the material is bone, the flesh, the blood vessel for the project In recent years, the public debt crisis, tightened fiscal policy, increased inflation, the fluctuation of the cost of materials and rising exchange rates have not only affected production and business plans but also reduced the operating efficiency of Song Da 207 The slow taking-over and capital recovery resulted in slow capital turnover causes difficulty for the payment for material suppliers The solution is: With the huge number of material suppliers of iron, steel, cement, the Company can negotiate to purchase materials with the lowest price to lower production cost Moreover, Song Da 207 needs to plan budgets carefully to purchase materials for the demand of production, ensuring both self control on cost and the synchronization of construction Making budget plan should be based on the consumption of products to build production and material planning suitably - Good operation management: Competing with low cost (cost leadership) is to optimize production cost However, hardly can the cost of material of projects constructed and installed by Song Da 207 be reduced; therefore, the Company can minimize damage by minimizing losses and defects thanks to system management The optimization mainly bases on productivity management to reduce fixed cost on a product unit, which is decisive to competitiveness and ability to win bids - Reducing material waste: Cost of materials includes: cost of main materials (iron, steel, etc.) and cost of subsidiary materials (welding, etc.) The reduction of material waste not only depends on a single stage but also all stages of construction and installation process: from measuring quantity, making accurate estimates; transporting, especially construction stage which has significant impact on the quantity of materials consumed while still ensuring proper technique and design of the master investor This not only requires the supervisors and chief 81 GaMBA01.X0710 – Strategic Management supervisor of the project to capture and manage materials closely, but also officials and employees to be honest and save costs for the Company + Products must ensure the highest quality, minimize defects and follows the following process: Strictly following the ISO 9001:2008 process; checking quality of products; controlling inappropriate products; process of preventing actions; carrying out preventing actions; obeying the taking-over process stipulated by the State NO 209/204/ND-CP dated December 16, 2004 of the Government and No 27/2009/TT-BXD dated July 31, 2009 guiding the implementation and quality management of some construction works - Reducing labor cost: Reasonable production organization through arranging the site for production, location of the equipment, production line, good preparation for materials and site to avoid labor waste, minimizing potential problems in the production Reducing the number of workers will increase labor productivity; increased number of products per a certain period of time will reduce fixed costs per one unit, helping lower the business production cost of the company, creating competitive advantage for the Song Da 207 in terms of product price - Solution on using new technology: The Company should study solutions on new construction technology based on what it has to increase labor productivity and reduce costs of equipment used in the construction Over the past years, the Company has been paying attention to this solution for reducing costs and increasing labor productivity Using new technology in construction not only brings high efficiency but also helps speed up the progress of constructing works, creating competitive advantage for Song Da 207 compared to other enterprises 3.3.2 Solutions on marketing management - Market penetration: Song Da 207 implements the mixed marketing policy (with new advertisement campaigns, company’s brand identifiers, promotion of the Company; expand and strengthen the sales network; etc.) To attract potential customers, expand market share and attract the customers of competitors, Song Da 207 needs invest in expanding its operation fields as well as improve the product 82 GaMBA01.X0710 – Strategic Management quality and boost investment cooperation so that Song Da 207 brand is more widely known - Product development: Current products of Song Da 207 are always completed with the best quality and the fastest progress thanks to professional skills of the employees and application of modern technology Song Da 207 has carried out the study on new techniques to improve the quality and progress to meet the needs of customers Building projects of Song Da 207 are characterized by permanent and sustainable construction of Song Da and modernity and convenience to the lifestyle and taste of customers - Product diversification: Currently, the company's major product is the construction and installation of civil works The Company, based on its available resources has diversified new products such as further promotion of the construction of transport works, technique infrastructure, and investment in realestate and other fields - Customer care: As a qualified and experienced contractor in the field of construction of civil works, Song Da 207 is always appreciated by the master investors as a construction unit meeting the requirement for quality, progress and high aestheticism - Market development: With strengths in construction of civil works and transport works, Song Da 207 is continuing to develop and expand markets in these areas to enhance the value of enterprise and develop products Besides focusing on improving the quality of existing products and develop a reputation in the market, Song Da 207 should have specific policies on marketing and bidding for major projects in the fastest time and grasping the opportunity The marketing and bidding for major projects should be included in the Resolution of the Board of Directors in the development strategy of the enterprise, considering sales promotion and project marketing as functions of certain departments 83 GaMBA01.X0710 – Strategic Management 3.3.3 Solutions on human resource management In the current market economy today, business environment is changing a lot with the fierce competition and increasing demand of staff These problems have been a great pressure for enterprises in general In particular, to Song Da 207, human resource is one of difficulties and is likely to contain potential threats to the development of the company In 2012– 2016 period, to solve problems on human resource thoroughly, the Company needs carry out well some solutions as follows: - Recruiting and training human resource: To ensure a stable human resource for the development strategy of the company up to2016, Song Da 207 must always focus on recruitment to choose candidates with suitable skills and qualifications, working experience and high enthusiasm; accept to pay high costs (salaries) to meet the current needs and development demand to prepare for strategies in the future Besides, the Company should pay attention to the training for employees, especially key staff to create key human resources helping the management board implement effectively the production and business operations of the Company - Employee encouragement policy: If recruitment is to select candidates with appropriate qualifications, training and developing human resource is to equip them with the skills needed to meet the current and future demands, the policy on motivating employees is the solution to maintain the stability of human resources to meet the needs of production and business Encouraging employees are represented by financial and non-financial factors such as income distribution, reward and punishment policy and satisfaction with working environment - Renovating income distribution for employees: The primary concerning issue of employees is income, so to motivate employees to work, Song Da 207 needs have a reasonable income distribution of which + Income of employees has to increase gradually by year and ensure to offset the rate of slippage in prices of consumption goods and inflation rate in the market 84 GaMBA01.X0710 – Strategic Management On the other hand, income of employees of Song Da 207 must be higher than the average of other companies with the same scale and operation field to avoid the brain drainage and draw the talent from its rivals + Regulations on income distribution must be developed based on criteria on work fulfillment of employees, working position and responsibilities of employees, etc In Song Da 207, the income distribution is ensured to be fair to motivate employees to improve their responsibilities, self-awareness and capabilities - Developing an appropriate reward and punishment policy: This policy includes appropriate reward for individuals and groups with high working performance and initiatives benefitting Song Da 207, reward based on each case and quarterly/annually performance review, etc to encourage the staff to promote themselves in their work At the same time, it is necessary of the Company to have strict discipline enough to avoid actions which are able to harm Song Da 207 - Developing good working environment: Working environment is increasingly more important and is one of two important factors determining the strong attachment to the company, labor productivity and working efficiency of employees (besides wages) Therefore, developing a professional working environment should be put on top priority in the strategy of Song Da 207 in addition to things done through the process of developing professional working environment such as working on time, sewing uniform, providing all necessary equipments for working, developing union among employees, etc - Ensuring labor policies: The Company needs pay attention to labor policies such as social insurance, health insurance, clear allowance policies, etc 3.3.4 Solutions on financial management Although the financial resource of Song Da 207 is challenging, the Company has been step by step developing its appropriate capital structure which takes full advantage of its strengths and minimizes the financial risks This is a key factor for Song Da 207 to stand firm to overcome the worst period of financial crisis and 85 GaMBA01.X0710 – Strategic Management economic recession and sustain the growth momentum over years However, the Company needs carry out some solutions to improve financial capacity as follows: - Minimizing the value of inventories: The Company needs to focus on the acceptance of payment at the end of quarter III and quarter IV every year to avoid the rapid-fire payment at the year-end as in the previous years, creating pressure and shortage of capital paid to suppliers and banks + It is necessary for the Company to have regular meetings at each level to review the acceptance of payment and collection of debts in order to suggest measures for the following phase + It is not allowed to let happen the situation that the construction has been finished for a long time, but it has not been checked and taken over owing to being arisen out of the design + It is necessary for the company to continue to maintain current material inventories Up to date, there have not been inventories being depreciated with no demand; the inventories have to be immediately handled if any - Improving debt collection: In order to soon withdraw capital, the company needs to precisely perform the stages of hand-over, check and take over, making settlement profile, and closed settlement even when the master investor allows a lack of profile - Restructuring capital: At present, the proportion of loans out of total capital is very large and the Company is still using financial leverage very well, but in the next phase, it is necessary for the Company to restructure the proportion of equity to ensure the safety of the payment stage 3.4 ROADMAP FOR IMPLEMENTATION 3.4.1 Roadmap for implementation in 2012 – 2016 period 3.4.1.1 2012-2013 period It is projected that this will be the period of recovery of the economy in general and construction sector in particular In this period, Song Da 207 will still 86 GaMBA01.X0710 – Strategic Management promote biding activities for installation and construction of projects and reduce investment activity In this period, the Company will focus on solutions on operation management and solutions on finance management, combined with some solutions on marketing and human resource management, specifically: - Regarding solutions on operation management: In this period, Song Da 207 is recommended to concentrate on boosting material supply; minimizing losses; and reducing defects, material waste, labor cost, etc The objective of this solution is to minimize production cost in order to reduce business and production expense and raise profit from installation and construction - Regarding solutions on finance management: This is the most difficult period in terms of capital for installation and construction activities of the Company; consequently, financial measures that should be paid attention in this period are minimize expenses and speed up debt collection To focus on financial solutions in this period, Song Da 207 needs to mobilize human resources to serve capital recovery activity To work in progress or complete works but have not been settled, relevant boards and departments need to complete price quotes and document for settlement to submit to the master investor to approve and make payment To works in progress with many tasks, Economic Department will check the contract; Planning-Technical Department and Financial-Accounting Department need to complete necessary document and procedures to urge the master investor to advance on schedule and ensure capital for construction - Combining other solutions: With the capacity of machines and equipments, human resources and infrastructure and existing brand value, Song Da 207 is in the stage needing to boost marketing activity in bidding and seeking for construction and installation contracts Besides, Song Da 207 also needs to care about customer services and post-sales services to satisfy customers and develop Song Da 207 brand 87 GaMBA01.X0710 – Strategic Management 3.4.1.2 In 2014-2016 period In this period, Song Da 207 plans to grow, develop, assert its prestige and brand in the field of civil construction; expand scale of operation; and branch out to the field of real estate trading In this period, Song Da 207 has policy to boost investment activity under the form of investment cooperation Song Da 207 will cooperate with partners that have strong financial capacity and advantages in investment projects To this activity, profit will be low; in return, the Company will gain profit from installation and construction of works in the projects or bring about profit for its member units Solutions on finance in this period will still focus on solutions on operation management and solutions on finance and human resource management as in 2012 -2014 period and promote some solutions in marketing management; however, there are some notes in the implantation of solutions as follows: - Regarding solutions on operation management: Apart from implementing contents in the previous period, in this period, Song Da 207 is recommended to study methods of using new technologies in to construction to reduce production cost, speed up construction progress of projects, catch up with scientific and technological development in Vietnam and in the world and improve product quality - Regarding solutions on finance: Maintaining and promoting capital recovery, coordinating with functional departments to minimize and sustain inventory at an optimal level; especially when Song Da 207 becomes master investor of projects, the amount of inventory will increase This requires functional departments of the Company to coordinate and give out timely solutions to increase working capital turnover and bring about high economic efficiency - Regarding solutions on marketing management: Constantly searching markets, promoting bid marketing activity There must be advertising policy, sale promotion policy, brand reorganization policy and marketing policy for projects that Song Da 207 is the master investor There must be solutions on training and developing 88 GaMBA01.X0710 – Strategic Management human resources to step-by-step take marketing into a function of boards and departments in the Company 3.4.2 Orientation to implement solutions to 2020 As we know, at the end of 2010, Song Da 207 has policy to make real estate trading become the leading field in the Company’s business lines The purpose of this orientation is to develop Song Da 207 into a parent company with a strong capacity in construction sector, especially in investing and trading real estate, and, seeking works for its member units However, due to the impact from the macroeconomy and the continuous fluctuations of the construction market, the Company’s business orientation is also revised, accordingly Song Da 207 will strive to become a leading enterprise in the field of construction in Vietnam and in the world, in which take civil construction as the core and promote real estate investment and trading Constantly innovating and expanding joint-venture companies, associated companies and subsidiaries to operate in various fields in both domestic and foreign markets To achieve that strategic direction, Song Da 207 needs to effectively combine measures that are suitable with the Company’s potentials In our opinion, the construction and installation activities and investments are still the core activities to nurture construction enterprises; therefore, the most essential and important solutions for Song Da 207 are still considering operation management and finance management as the center for all management activities in which finance plays a key role In addition, Song Da 207 should not ignore human resource management which is evaluated as a regular but not less important and difficult activity that needs attention because human resources are the root of all activities in enterprises In parallel, to enterprises operating in the market economy with fierce competition and saturated goods, solutions on marketing has a very significant role, helping the enterprise to develop and expand market share 89 GaMBA01.X0710 – Strategic Management In the long-term, Song Da 207 is suggested to harmoniously coordinate solutions on finance, human resources; promote strengths; and minimize weaknesses to become a leading construction enterprises in Vietnam and in the region LIST OF REFERENCES Statistical reports and financial statements in 2008-2010 period and the first months of 2011 of Song Da 207 JSC Griggs University (2011), Textbook on Strategic Management – Global Advanced Master of Business Administration Program, Hanoi Le The Gioi (2009), Strategic Management, Statistical Publishing House, Hanoi General Statistics Office, Data on socio-economic development of Vietnam in 2006 - 2010 period (http://www.gso.gov.vn) 90 ... GaMBA01.X0710 – Strategic Management ACKNOWLEDGEMENT To complete the capstone project report, Global Advanced Master of Business Administration Program (GaMBA), members of group - class GaMBA.X0710... 2012-2016 period GaMBA01.X0710 – Strategic Management CONFIRMATION AND EVALUATION OF SONG DA 207 JOINT STOCK COMPANY Contribution of the study The study of group - class GaMBA-X0710 not only... staffs of GaMBA Program and Song Da 207’s board of leaders We would like to express our gratitude to the Board of Directors, Training Bureau, Class Management Division, etc of GaMBA Program We