Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (10)

TABLE OF CONTENTS Page FOREWORD CHAPTER 1: THEORETICAL FOUNDATIONS 1.1 Conceptions about strategies and strategic business management 1.1.1 Conceptions about the business strategies 1.1.2 Concepts of the strategic management 1.2 Procedures of building strategies 1.2.1 Building and selecting the strategy 1.2.2 Analyzing the operational environment of the enterprise 1.2.2.1 Analyzing the macro environment 1.2.1.2 Analyzing the industry environment 10 1.2.2.3 Analyzing and assessing the internal enterprise 11 1.2.3 Tools for plan building and strategic choice 15 1.2.3.1 IFE - Internal Factors Environment Analysis .15 1.2.3.2 EFE - External Factors Environment Analysis .16 1.2.3.3 SWOT Matrix 17 1.2.3.4 Competition profile matrix 18 1.2.3.5 Quantitative strategic planning matrix 18 CHAPTER 2: ANALYSING THE ACTUAL SITUATION OF LICOGI 16 JSC 19 2.1 Actual situation of Vietnam’s construction 19 2.1.1 General overview of Vietnam's construction .19 2.1.1.1 In erection 19 2.1.1.2 In industrial production and construction materials 20 2.1.2 Statistical parameters 20 2.1.2.1 The total value of production and business 20 2.1.2.2 Construction 20 2.1.2.3 Manufacturing industries and construction materials 21 2.1.3 Orientations to develop the construction 22 2.2 Status of Licogi 16 Joint Stock Company 22 2.2.1 Process of formation and development 22 i 2.2.1.1 Before capitalization .22 2.2.1.2 After capitalization 24 2.2.2 Function and main duties of the company 25 2.2.3 Organizational structure of the company 26 2.2.4 The control of LICOGI 16 for the underlies 28 2.2.5 Business results in 2008 .29 2.2.6 Consolidate the brands into one brand "Licogi 16" 31 2.3 Production and business characteristics of the company .32 2.3.1 Characteristics of the market, the company's products 32 2.3.1.1 Characteristics of construction products .32 2.3.3.2 About company’s market executed in the past time 33 2.3.2 Business results of the company 34 2.3.3 Character of human resource of the company 35 2.3.4 Production and Business Plan of Licogi 16 in the period 2010-2015 36 2.3.5 Target of the company to 2015 37 2.3.6 Key projects to 2015 38 2.4 The building business policy plan assignment 40 2.4.1 Plan building process at Licogi Joint Stock Company 40 2.4.1.1 Base on result of researching market demand .40 2.4.1.2 Base on current sources of the company 41 2.4.1.3 Base on situation of implementation plan in previous years 41 2.4.1.4 Situation of building and implementing business strategy of the company in the previous years 41 2.4.2 The factors affect business strategy of LICOGI 16 42 2.4.2.1 Macro environment 42 2.4.2.2 Micro environment (industrial environment) 45 2.4.3 Analysis of internal factors of the enterprise .48 2.4.3.1 Business infrastructure 48 2.4.3.2 The system of income and information processing 48 2.4.3.3 On human resources: 49 2.4.3.4 Financial management: 49 2.4.3.5 Customer relations: 50 2.4.3.6 Activities of Research and Development: .50 ii 2.4.3.7 The capacity of technical sciences - equipment: .50 2.4.3.8 Management of input factors: 51 2.5 Evaluate Capability of Licogi 16 51 2.5.1 The achieved results 51 2.5.2 Shortcomings .52 2.5.3 The strengths: .53 2.5.4 The Weaknesses 54 2.6 Select business strategy by matrix method .55 2.6.1 Develop EFE matrix (assessment of external environmental factors) 55 2.6.2 Establishing IFE Matrix (Evaluating Internal Environmental Factors) 56 2.6.3 Establishing the competitive profile matrix .58 2.6.3 SWOT Matrix .60 2.6.4 QSPM Matrix 62 2.6.5 Selection of strategies 67 CHAPTER 3: BUILDING BUSINESS STRATEGIES IN 2010-2015 OF LICOGI 16 70 3.1 General orientations 70 3.3.1 The strategy of Licogi 16 JSC .72 3.1.2 Investment and market expansion strategy of Licogi 16 73 3.1.2.1 For construction, the core line of the Company 73 3.1.2.2 For the trade of materials and equipments: 74 3.2 Establish a vision-mission for Licogi 16 74 3.2.1 Establish a mission - vision, identify common goals and objectives 74 3.2.2 Convey passion from leaders to each employee 74 3.2.3 Create confidence in Licogi 16 75 3.2.4 Build a company’s culture 75 3.3 Some solutions to improve business planning 75 3.3.1 Marketing strategy formation .76 3.3.1.1 Product 76 3.3.1.2 Product costs: 76 3.3.1.3 Distribution and customer approach channels .77 3.3.1.4 Communications and PR .77 iii 3.3.1.5 Marketing strategy implementation supervision and adjusment 78 3.3.1.6 Market solutions 78 3.3.2 Solutions to operations management 80 3.3.2.1 Input expenses reduction 80 3.3.2.2 Well-implementation of bidding 80 3.3.2.3 Strengthening the management of changes during the stratey implementation 82 3.3.3 Human resources solutions .82 3.3.3.1 Training work .83 3.3.3.2 Recruitment 85 3.3.3.3 The Salary .86 3.3.4 Financial solutions 88 3.4 Some recommendations 89 3.4.1 For macroeconomic policies .89 3.4.2 For business and production operations 89 CONCLUSIONS 90 iv LIST OF ABBREVIATIONS ASEAN: The Association of Southeast Asian Nations EFE: External Factor Evaluation EVN: Electricity of Viet Nam FDI: Foreign Direct Investment GDP: Gross Domestic Product IFE: Internal Factor Evaluation LICOGI 16: Licogi 16 Joint Stock Company ODA: Official Development Assistance MOC: Ministry of Construction MPI: Ministry of Planning and Investment PVN: Petro Viet Nam QSPM: Quantitative Strategic Planning Matrix R&D: Research and Development Song Da 9: Song Da Construction Joint Stock Company No SWOT: Strengths, Weakeness, Opportunities and Threats VINACONEX 15: Vinaconex Construction Joint Stock Company No 15 VND: Vietnamese Dong WTO: World Trade Organization v DIAGRAM Diagram 1.2 Procedure of building the strategy for the enterprise Digram 2.1 Management mechanism structure of Licogi 16 26 Diagram 2.2 Organizational Structure of Licogi 16 .28 TABLES Table 2.1 Revenue – profit of the Company before capitalization 23 Table 2.2 Changing capital process 24 Table 2.3 Capital structure on 17/2/2009 (denomination 10.000 VND/share) 25 Table 2.4 Productivity and Revenue of the LICOGI 16 system 30 Table 2.5 Result of business activity in three years 2006, 2007, 2008 34 Table 2.6 Mechanism of the company 35 Table 2.7 Target of turnover and interest to 2015 37 Table 2.8 EFE Matrix of LICOGI 16 Joint Stock Company 55 Table 2.9 IFE Matrix of LICOGI 16 Joint Stock Company 57 Table 2.10 Competitive profile matrix of LICOGI 16 59 Table 2.11 SWOT Matrix of LICOGI 16 60 Table 2.12 QSPM of Group SO 62 Table 2.13 QSPM of Group ST 63 Table 1.14 QSPM of Group W-O 65 Table 2.15 QSPM of Group W-T 66 Table 2.16 Estimation of labor in the period 2010-2015 .83 vi ACKNOWLEDGEMENTS We would like to express our sincere thanks to lecturers in the Global Master of Business Administration Program - Vietnam National University-Hanoi and Griggs University and International Academy - the United States, who have taught and instructed valuable knowledge with the whole heart during the course We would like also to deeply thank lecturers in the graduation thesis jury for offering practical comments for this thesis Our high appreciation to leaders and officials of LICOGI 16 Joint Stock Company and classmates for supporting us information and practical comments during the process of collecting information to complete this thesis Sincerely yours, CAPSTONE PROJECT REPORT SUBJECT: STRATEGIC MANAGEMENT Tittle: BUSINESS STRATEGIES IN 2010 -2015 OF LICOGI 16 JSC FOREWORD Modern business environment has been daily changing To date, Vietnam has been considered as one of the fastest growing economies, not only in Asia, but in the world as well Since the 1986 economic opening policy start, Vietnam has undergone nearly 30 years of striving toward a real market economy An important landmark in the integration process of Vietnam in the global economy is the event when the nation was admitted to World Trade Organization (WTO) Such a lot of changes have been achieved and are expected to be implemented in 2010-2015 period Under the general assessments of Ministry of Planning and Investment (MPI), Vietnam’s socio-economic conditions and situations in six first months of 2009 have been under the positive changes with the GDP growth rate of 3.9% Value of industrial production is estimated to be about VND342.2 trillion (16.5%), higher than that of the same year with 4.8% increase Some localities such as Quang Ninh, Ba Ria-Vung Tau have high industrial growth rates of 11.5% and 10.6% respectively Agricultural, forestry and fishery industries have overcome difficulties to reach good results with the estimated value of VND96.6 trillion in first six months, a yearon-year 2.5% increase Despite a mount of economic difficulties, decreased consumption demands, the combined retail value and turnover from services in June have still gained the growth rate of 2.3% (to VND94 trillion) from that of May, raising the total flow of goods and social services in first six month up to VND547 trillion, a 20% increase compared with the same period Volume of export in first six months of 2009 is estimated to be up to USD$27.6 billion, a 10.1% decrease from the same period However, according to Ministry of Industry and Trade, if calculated by the quantity (volume of exporting crude oil and minerals is decreased) and absolute value due to the exclusion of sudden increases in oil price of the year 2008, the export turnover of first six months of 2009 is still increased from the same period of the year 2008 For import, import value in June of 2009 is estimated to be USD$5.9 billion, a 4.1% increase from that of May 2009 Combined import value of first six months is USD$29.7 billion, a fall of 34% from the same period of the previous year However, June also is the third consecutive month when Vietnam restarted the overbalance of import after three first months of export surplus MPI forecast only for June in import excess can be up to USD$ billion and combined for six moths up to more than USD$2 billion State collection computed under the progressive calculation since the early year till first half of the year is estimated to be about VND171 trillion, accounting for 49.3% of the general estimate of the year This is evaluated to the good turnover level Necessity of building strategies, objectives and applications a Proposal In 2008 and first half of 2009, we have witnessed the global economic crisis in which many large-scaled and world leading groups have fallen into the bankcrupcy, etc However, experts forcecast that the economic recovery will start in the year 2010 Afterwards, the 2010-2015 period may be the time for the economic growth and Vietnam is also in this general circulation of the global economy Starting to kick of a business strategy for 2010-2015 period right now is the top necessity that the Company leaders shall be aware to promote the company to develop together with the market economy Being aware of the importance of working out business strategies for five coming years, executive officials of Licogi 16 Joint Stock Company should propose development orientations, operational principles for the company We, as consultants of planning strategies, hope to propose orientations, operational solutions and business strategies for the 2010-2015 period for Licogi 16 Joint Stock Company b Objectives of the research project The project is designed to define strategies and business development for the 20102015 period Then, Licogi 16 can properly operate to expand its scale, reduce the business expenses, effectively use capital, bringing the profits for the enterprise as well as increasing the competitive edges In this paper, we also propose some solutions that Licogi 16 can implement its strategies and business strategies in the 2010-2015 period c Case study methods In order to carry out this project, we have applied methods of statistics, survey and analysis d Scope of study This report shall focus on considering the current strategies of Licogi 16 Joint Stock Company, available achievements and shortcomings Moreover, it also studies strategic planning and business development of Licogi 16 in 2010-2015 e Structure of the report Our report consists of the three chapters: Chapter 1: Theoretical foundations Chapter 2: Analyzing the status quo of LICOGI 16 Joint Stock Company Chapter 3: Some orientations of completing the business strategies of the Company in 2010-2015 period Conclusion and recommendations are great resulting in high amortization expenses Licogi 16 is a member of Licogi Group, so the key staffs transfered from other Licogi’s units are wellqualified, administrable, whose production experience will help reduce product costs From all above factors, Licogi 16 has built up a product tariff in accordance with Vietnam’s market 3.3.1.3 Distribution and customer approach channels Distribution channel is known as the agencies transfering products and product ownership from production stage to consumption stage Its main functions are to give information, expand, negociate, order, supply, take risks, deliver, liquidate and supervise product ownership transfer Distribution channel system design is based on the following steps: analyse customer needs, establish channel’s target, identify and evaluate main channel plan Licogi 16 and its members focus on Vietnam’s market where customers are from highly in demand sectors such as hydroelectric power plants, irrigation structures, bridges and ports In housing construction, it focuses on low-income and highincome markets thus distribution and customer approach plan must focalize on cities and towns 3.3.1.4 Communications and PR In Vietnam, construction product suppliers have not paid much importance in advertising and communications via mass media This leads to customers’ lack of information about construction products Licogi 16 has already recognized the role and the importance of communications Hence, since its early days after establishment, in parallel with production, pricing, distribution channel design, the goal of promoting brand, product brand and quality is always a top priority to bring benefit to customer beyond their expectation 77 - Survey customer’s satisfaction via: mail, interview, telephone contact, direct meeting - Print logo and slogan on shirts, hats, print leaflets and product question sheets for advertising and promotion purposes - Hold product launch conferences for big customers and organisational customers - Advertise on television and radio through reportages - Build a website with daily updated information 3.3.1.5 Marketing strategy implementation supervision and adjusment - Based on specific marketing strategy Adjustment could be made though distribution channels by regions, population groups, customer group (individual or organisational) - Organisational customers need to be priorised due to their influence on the market; focus on potential customer, the economic groups such as EVN, Petroleum, Telecommunication, and in new urban areas for less expensive investment It is easier to persuade this customer group - Besides providing products, the Company also needs to provide services for the organisational customers such as consulting and reform designing for free or at promotion price - Need adjustment in Marketing stage or sales distribution stage 3.3.1.6 Market solutions To achieve an effective strategy implementation, the company needs specific solutions in market penetration, development, maintenance and product innovation for profit purposes and sustainable development LICOGI 16 must the following market solutions: 78 - Focus Marketing resources on target customer identification; they are: giant economic groups such as PVN, EVN, to take part in industrial plans such as electricity, coal, gas and oil The investors on new urban areas, industrial zones Build up a stable relationship with those customers - Promote market research This helps the Company get up to date with the most useful information, thereby finding the best measure for market development and risk management Examine competitor’s responses, potential competitors, opportunities and threads in the market, competitors’ strategies which may get damage to the Company’s operations to have effective precautionary measures - Using marketing tools and policies to enhance efficiency in businesses of construction materials, biddings, infrastructure, electricity industry, mining, new urban areas, industrial zones Those policies are: product, price, distribution and consumption, communications and relations - Build up and perform promotion policy and regard it as key solution Promotion forms could be: discount at certain rate, giftings depending on each customer group, specific construction, especially new urban areas project executed by LICOGI 16 from present to 2015 - It is necessary to seek for marketing to big partners, especially the owners of investment in large-scaled industrial parks and new urban areas, employers using a great number of laborers, etc They are partners who can allow the company to have long-term business and consume a large amount of products.It is advisable to have good relationships with them The Company should also propose favorable methods of payment and have good after-sales services such as transport and customer care, etc - It is necessary to build up the quality management procedures so that products and services are qualified to be marketed with optimal quality and expenses, meeting and satisfying customer demands, increasing the market share and rate of profit of such products and services 79 3.3.2 Solutions to operations management 3.3.2.1 Input expenses reduction In order to supply goods and services meeting all customer demands with reasonable prices and quality assurance., the Company must complete the following tasks: - Perform labor division and specialization to increase productivity and decrease production costs - Carry out forecast and production planning - Select and change the technology to reduce product costs, but still maintain the quality - Training the staffs to meet the requirements of new production activities with high skills and modern technology, especially in the bidding and management of projects which the company has invested in In conclusion, the Company needs to build up a flexible pricing policy, in accordance with every customer (especially the big ones) and competitor’s prices It should take advantages of organizing, manufacturing experience and other experiences to bring out the lowest prices 3.3.2.2 Well-implementation of bidding Although Licogi 16 Joint Stock Company is listed in the securities market, capital and bidding ability of large construction are weak compared with many genaral construction Company in Viet Nam Therefore, Bidding schedule from at the moment to 2010 is mainly based on advantages: a) Bidding schedules based on price advantage The company choose this strategy when having potental advantage to reduce construction cost as followings : - Reduce concentrating cost, move force near construction place - Salvage equipment to reduce fixed propty depreciation cost 80 - Exploil material with low price or have material at the place near construction place To carry out this strategy well, the company need having some following solution : - Use absolutely simple labour at society - Joint-venture, associate with partners in the country and at oversea which have advantage of equipment or material - Build the best executing organizational project to reduce construction cost After building the best project and give standard price, the company will consisder ability of putting contract About principle may be higher, equal or lower than standard price Determining the bidding price is higher or equal with standard cost to consider the remarkable scale of the company's cost advantage in comparison with other companies and pressing of the winning bid If the price advantage of the company is outstanding no more than some other bidders, bidding price can be minimum standard price or increase a little Case of there are urgent have to win bidding for market penetration or lack of jobs is fierce, bidding price may be lower than standard price Reducing tendering price level in comparison with the price of a standard is determined basing on the advantages mentioned above b) Tendering plan bases mainly on advantage of technology Licogi 16 Joint Stock Company is superior in the construction of transport such as: road construction, bridge construction, hydraulic constructions, civil construction works, residential projects and hydropower So this is a big advantage for the company to implement their strategy of bidding in way better The company needs to make some the following solutions: - Invest to modernize specialized machineries - Have policies to attract, develop technical staff, skilled workers - Have policy to ensure technology, quality of the building to maintain its superiority to be durable 81 3.3.2.3 Strengthening the management of changes during the stratey implementation During the business strategy implementation, appearance of changes are obvious and objective Most of changes in production technology, human resources, organizational structure, etc have effects on the results of business and production To timely adjust goals and objectives and better manage such changes, the Company should implement the following tasks: - To forcecast reactions and possible level of reaction when implementing such changes necessary for business and production - To make laborers to understand and agree with such changes to reduce potential reactions - To stimulate excitement in implementing normal strategies even when big changes are available 3.3.3 Human resources solutions Productivity is one of the decisive factors to efficiency and cost structure of the enterprise, the higher the productivity is, the lower the cost for a unit product is Therefore, establishment of solutions to human resources suitable for business of the enterprise shall make its business have high efficiency The plan of developing the human resources that LICOGI 16 JSC will carry out is continuously to improve management competences, professional qualifications of managerial officials, laborers, innovating the management, reducing production and business expenses Once the plan is not well-implemented, its business and production will be decreased, failing to compete due to high price, causing effects on the feasibility of selected strategic plans To enhance and supplement human resources for affiliates, especially officials in charge of project management.The Company should work out plans to organize labor forces by profession; to have plans about training, re-training, supplementing 82 professional skils for both direct and indirect labor forces, especially in the context of lacking technicians and specialized engineers To have plans on training, supplementing, planning each position of leadership from company level down to team level in order to meet the increasingly rapid and diverse development of business and production Labor estimation for Licogi 16 in the period 2010-2015 Table 2.16 Estimation of labor in the period 2010-2015 Year Quantity of estimation labor (people) 2010 2011 2012 2013 2014 2015 210 220 230 240 250 260 3.3.3.1 Training work Human resource is the key factor to the development of the Company Therefore, Licogi 16 never hesitates to invest in recruitment for the purpose of building a team of personnel with high quality However, the fact show that, leaders does not stop claiming about employee quality of the Company, including Licogi 16, in some stages, Licogi 16 is still unable to evaluate the role of training work properly in working process As the result, when looking back to real status of Vietnamese human resource, it is shown that internal training play an essential role to the Company Quality of current young human resource can not meet requirement of enterprises The new graduated working in factories, companies often face with difficulties when accessing advanced technology Not only professional skill but writing skill of various newly-graduated students is also so poor One of the largest shortcoming is lack of creativeness and activeness in the work Few graduated students are working in Company which requires the creativeness and confidence and they is never confident enough to introduce new idea They seat and wait for assignment from managers or they just say only when their name is called out though their mind is full of good idea 83 Meanwhile the distance between manpower supply-demand becomes larger and larger; so race among enterprises to seize human resource with high quality is more and more stressful It is predicted that in 2010 to the coming years, finance-banking and construction is still “hot point” with demand index higher than 6-7 times as compared to that of human resource Recently, it is very difficult to narrow distance between manpower supply-demand in most industries Thus investment in training and developing current manpower at the Company is both long-term and short-term strategy, suitable with its development objective The company holds training course to improve qualifications and skills for staffs and applies international standards on program, content and training method The Company creates study and development opportunities for the youth working in the Company The chance of studying and developing himself is especially thirsty want of fresh from school Training provides existing human resource Investment in existing human resource brings about efficiency in improving junior staffs, confirming role and capacity of managers, establishing good relationship in the company and developing the company’s image in the sight of customers and partners Training staffs with new knowledge and skills not only helps them fulfill their tasks more quickly and more effectively but also improves working efficiency When being instructed, staffs are more self-confident and work more actively and independently; in contrast, they become discouraged and leave the company Well training will bring about the most enthusiastic and truthful advertising force on the company’s image After each long-term training course, they will ensure staff’s responsibilities In 2009 and future, the company has been: - Training key personnel of all departments and offices of the Company in FACE Institute of Directors as for the subjects on professional immediate and advanced management 84 - In addition, the school also appoints personnel to take part in advanced classes in operation such as project management, construction quality supervision, property trading, accounting, tax, salary labor, labor safely, network administration and so on 3.3.3.2 Recruitment The company continuously coordinates with large employers via Internet such as Vietnamwork.com, Kiemviec.com, HR.com, and newspapers such as: Labor Newspaper, Vietnam News, Tuoi Tre Online and so on to recruit labors at all levels in order to meet recruitment demand of the Company as well as supporting recruitment for subsidiaries To recruit candidates with qualifications and capacities in accordance with orientation of the company, from the beginning, Licogi 16 realized that human resource had great roles in fulfilling assigned tasks In the fierce competitive times as nowadays, when occurring fast changes, tendencies, opportunities and threats, so each organization must cope with those flexibly From that point, Licogi 16 and its members cognize urgent demand for recruiting new staffs in order to satisfy typical working requirements of the company in future Deeply studying strategic plans of the company is the first task of employers, then considering whether existing human resource of organization can meet full requirements for assigned tasks or not Normally, it is difficult to meet because in the organization, staffs always are short or redundant To meet working requirements for each specific time, recruitment process in accordance with ISO standard is applied by Licogi 16 as well as applying alternatives for recruitment, for example: Alternative Hire: hire consultants, individuals, etc This type is very flexible in member units especially departments, operation, directly under management Board, must not recruit, arrange working place, and other missions which serve the life, especially after finishing the contract, may be broke up 85 Alternative Part-time: This is a method which Licogi 16 and member units usually use to meet demand short-term changes about volume of work For this method, there is no recruition or choice to the worker and especially they could earn more money Alternative The worker out of workforce: This method is applied to unskilled workers as Security Guards, Cleaners The above methods are only applied with seasonal work and the work which requires no high quality Therefore, the recruitment is always applied to able to recruit the staffs with experience, knowledge, inquiring mind, the honest, the assidous and other qualities This process has been promoted and it also supports Licogi 16 to recruit capable executives 3.3.3.3 The Salary At the moment and in the future, Licogi 16 Company has been carrying out the salary task as follows:  Salary payment by product: Salary payment by product is applied to member Companies of which out put of production could meansure objectively On basic, the workers are paid following order form’s unit price The payment of salary is also applied to workers in production line as RCC concrete mixing line, the place which each woker works in alone and their result is usually meansured directly because this system encourages quantity than quality, so the Company usually apply with the closely qualitative control  The commission system is similar to payment of salary following production The only different thing is that it does not relate to manufacture while it relates to selling production.These companies are usually applied this method with selling Nomally, the salary of selling person is based on soflware to encourage the turnover  Bonus: Bonus for worker is related to some key individuals in the company as General Director and Deputy General Director The executing of these 86 individuals could be recognized in all organization as well as shareholder The result is that a noticeable park which bonus these individuals depend on executing meansure of individual or function.However, the company mut prepair mode of bonus carefully to avoid contradiction between the shortterm and long-term target.For example, payment of salary bases on termly or yearly invested capital, not yearly growth This may effect significantly to treatment of strategist Making a short distance between members of management group and holdings of company could encourage managers and link their benefit with shareholder’s bebefit  Promotion: This is the last thing but it is important The promotion is the compensation and bonus for each in the organization Managers always compete to reach the higher rank in the system Funtional manager carry out the best to become following source for managers of the company The promotion is important like this because the salary and the bonus increase basing on the organization rank General Director usually receive salary higher 50% compared with the next rank but the bobus is very high and that is the reason why managers always pay attention to ladder of organization Additionally, the company also applies bonus and salary payment system for every group, mode of buying stock In parallel with that, Licogi is going to: - Amend the minimum salary following the State from 01/2008 : With 620.000 vndcontinuosly update and carry out according to rules of Goverment to ensure staff’s high income - Amend regulation of salary up 20% at all position The total of salary fund in 2009 is 4.234.364.272 VND To carry out above orientation about compensation and be able to amend basicly salary, make advantage to company’s development in general and the important motivation to staff’s striving,The Company has invited Navigos organization (the 87 top of unit in Salary and Personel Consultant field) to evaluate and advise company in building salary system following common trend of market 3.3.4 Financial solutions Financial operations have had deep and wide effects on the activities of the whole enterprise and it is demonstrated in the major indications such as indications of payment capacity, liabilities, operation and turnover and profit Studying the finance of the enterprise is to consider and evaluate strenghths or weaknesses of the enterprise, then building development solutions, reducing risks For LICOGI 16 JSC, it is necessary to well implement some major financial solutions as follows: - To maximize profit by comparing it with competitors in the same industry: analyzing indications of flexibility, efficiency of using capital, profitability, etc - To manage liabilities, reducing the term of debts receivable - To enhance the operation of mobilization: it is necessary to diversify business lines to assure the financial resources for production and business of the company To implement the recovery and mobilization, the Company can carry out some methods as follows: o Firstly, it is necessary to organize the delivery or acceptance right at every phase of work for payment and advance from the owner o Secondly, it can be in joint venture or joint operation with owners using a great number of laborers to mobilize capital for construction of house leased to workers o Thirdly, it should maintain good relationships with banks by guaranteeing prestige, confidence to have regular support from banks o Fourthly, to mobilize capital from shareholders o Fifthly, to minimize expenses 88 3.4 Some recommendations 3.4.1 For macroeconomic policies At present, construction enterprises have been facing a mount of shortcomings and obstacles during the production because State regulations and policies have not been timely promulgated and not in line with the market economy In order to be more active in the business and production with stable and sustainable development, it is proposed that the Government should not collect the land use charge for the area for construction of technical infrastructures and public works for community activities and at the same time, soon issue legal documents on regulations and policies for investment in housing and welfare works for workers under the Decision No.20-NQ/TW of 28 January 2008 by Executive Board of 10 th Central Party Committee 3.4.2 For business and production operations The Government should direct ministries, sectors and branches to consult and soon promulgate support policies to enterprises in interest rate, preferential treatments for land rental, minimizing input expenses such as electricity, water, etc to encourage enterprises to invest in this field of real estate as well as other forms of construction investment 89 CONCLUSIONS During the course of innovation, the development of domestic enterprises has made a great contribution to the sustainable development of Vietnam Also, in the market economy, free trading and doing business have made favorable conditions for mass birth of enterprises and thus, the market share shall for each player shall be reduced In this context, the business strategies shall play an important and decisive role in the success or failure of an organization and it shall help the manager to be active before changes of the internal and external environment, maximizing the use of available resources to reach goals and objectives in the business and production Based on the theory of strategic management, application of competitive strategy models, external factor analysis models and internal factor analysis models and analysis tables according to matrixes EFE, IEF, SWOT; QSPM, the project has built the business strategy of LICOGI 16 from 2010 to 2015 We hope these study results shall make a significant contribution to help leaders of LICOGI 16 JSC to master opportunities and promote superior advantages, minimizing risks and having solutions to overcome business obstacles to achieve the sustainable development However, due to limitations in profession and experiences and time of study, insufficient reference documents, this paper still has shortcomings in analysis Group members feel happy to receive comments from lecturers and classmates to further complete the project Our sincere thanks./ 90 REFERENCES: Strategic Management Youth Publishing House Financial Statement Analysis Nguyen Minh Kieu Statistics Publishing House Project Organization & Management Textbook Operations Management Textbook (internal circulation) Textbook of leadership in the organization (internal circulation) Leadership in the organization, Gary Yuki, 5th editions, Prentice Hall, 2002 Leadership, McShane and Von Glinow, McGraw-Hill 2008 annual report of LICOGI 16 JSC Auditted financial statements of LICOGI 16 JSC in 2006, 2007, 2008 10 Websites 91