Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (37)

Capstone project Global Advanced Master of Business Administration Program STRATEGIC MANAGEMENT Topic: BUSINESS STRATEGIC MANAGEMENT IN NO 319 COMPANY TABLE OF CONTENT 1.1 1.1.2 1.1.3 1.2 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.3 1.3.1 1.3.2 1.3.3 1.4 1.4.1 1.4.2 1.4.3 1.5 1.5.1 1.5.2 1.6 1.6.1 1.6.2 1.6.3 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 INTRODUCTION The necessity of the study Object and scope of the study Methodology of the study Structure of the capstone project CHAPTER 1: RATIONALE OF BUSINESS STRATEGY CONCEPT, CHARACTERISTICS AND ROLE OF BUSINESS STRATEGY IN ENTERPRISE Characteristics of business strategy Role of business strategy PROCESS OF MANAGING BUSINESS STRATEGY Analyzing situation Building strategy Implementing strategy Assessing strategy Requirements on building business strategy DETERMINING MISSIONS AND SYSTEM OF STRATEGIC GOALS Strategic missions System of strategic goals Rules when determining goals BUSINESS ENVIRONMENT OF THE ENTERPRISE Macro-environment analysis Analyzing sectorial environment (operational environment) Analyzing internal environment of enterprise DIFFERETIATING TYES OF BUSINESS STRATEGY General business strategy Functional-level business strategies METHODS OF ANALYZING AND SELECTING STRATEGY Boston Consulting Group Matrix (BCG) McKinsey Matrix SWOT analysis and strategy combination CHAPTER EXECUTIVE SUMMARY CHAPTER 2: ANALYSIS OF STRATEGIC FACTORS OF THE NO 319 COMPANY ANALYZING AND EVALUATING PRODUCTION AND BUSINESS ACTIVITIES OF NO 319 COMPANY Foundation and development process of the company Business sectors, goals and scale Organization structure Kinds of product of the company Trading results of the company in 2010 1 3 3 4 5 6 6 7 11 12 12 13 13 13 15 17 19 20 20 20 21 22 23 23 2.2 2.2.1 2.2.2 2.2.3 2.3 2.3.1 2.3.2 2.3.3 3.1 3.1.1 3.1.2 3.2 3.2.1 3.2.2 3.2.3 3.3 3.3.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6 BUSINESS ENVIRONMENT ANALYSIS Macro-environment Operating environment Internal environment factors RESULTS OF ENVIRONMENT ANALYSIS AND MATRIX FOUNDATION Market share growth matrix BCG SWOT Matrix Mc Kinsey matrix SUMMARY OF CHAPTER CHAPTER 3: SOME STRATEGIES ORIENTATION AND SOLUTIONS FOR THE BUSINESS OF THE No 319 COMPANY THE FOUNDATION FOR SETTING UP STRATEGY Long term target of the company Short term targets of the company GENERAL BUSINESS STRATEGIES Concentrated growth strategy High quality product strategy Strategic solution for product groups FUNCTIONAL DEPARTMENT STRATEGIES Improving human resource quality Promoting marketing implementation Promoting research and development Investing for technological innovation Improving capacity to mobilize capital Improving effectiveness in management information system CONCLUSIONS REFERENCES APPENDIX 29 29 34 41 54 54 57 58 61 62 62 62 63 64 64 67 68 71 71 78 83 84 84 85 87 89 ACKNOWLEDGEMENT Studying at a university with enthusiastic teachers, well –equipped facilities and infrastructure, a number of subjects and curricula are suitable with learners who are civil servants and entrepreneurs With the knowledge learned from the Global Advanced Master of Administration Program, practical experiences in working process, permission from Management Board of No 319 Company, and real data from its research division, our group has given our opinions in building business strategy for the Company An overall strategic plan will assist the company leaders to have a clearer view of their work, improve competitiveness and select an appropriate solution to the company’s goal Content of this capstone project focusing on the following issues: - Systematizing basic knowledge in developing business strategies - Applying basic theories of business strategy in analyzing overall business environment, strengths, weaknesses and strategic analysis models to identify affecting factors on the company’s business - Based on scientific arguments in developing business strategy and implementation solutions, under the scope of this capstone project, the group has introduced some basic theories on business management and given our viewpoints on building business strategies for No 319 Company The capstone project has been discussed at the workshop and highly appreciated in the process of development and building short and long-term strategies of the Company During the implementation of this capstone project, due to limited time, lack of the information and documents, so the strategies mentioned in this capstone project are mainly based on the current situation and the latest forecast on the macro and micro-environment In the next stage, these strategies need to be adjusted when the macro and micro-environment are changed, so that the Company can develop and compete effectively in the market With limited knowledge about theory and practice, the capstone project is impossible to avoid mistakes and shortcomings; we look forward to receiving recommendations and comment from teachers and readers Finally, the group would like to express our sincere thanks to Hanoi National University, Griggs of University - USA, Center for Technology Training and Employment System (ETC), Management Board and Departments of No 319 Company and our teachers for helping us to complete this capstone project The group commits that all the data in this capstone project is provided by Departments of the Company In the process of implementation and completion of this capstone project, all group members have participated actively (not copy) and we will take full responsibility for the authenticity of this capstone project INTRODUCTION The necessity of the study Enterprises’ operations in the market economy are investing, using resources and competing with rivals to gain the market share The goals of enterprises’ operations in the market economy are to achieve the best performance and develop sustainably The work performance of enterprises is the results of comparing the gained interests from the enterprise’s operation with the resources and expenses used for generating those interests To enterprises, building an appropriate business strategy has a very significant implication and the timely and reasonably, orientation and adjustment of strategy often bring about great benefits In the globalization of the market, technology is always changed, competition becomes tougher and above all, strategy has become a more and more important factor Along with the increasing scarcity of resources, the demand and consumption taste of the society always change, making the business environment of enterprises be more complicated and contain a lot of risks To exist and develop, enterprises need to build a strategy for themselves Strategy is a type of special plan and every organization makes operation plans To enterprises, planning is the first function in the system of management function to achieve the set goals of organization The planning of business strategy needs to take into account many objective external factors and subjective internal factors of enterprises, analyze information systematically to set the base for planning enterprises’ operations in the long-term and short-term, focus efforts and resources on major goals to make them most effective to cope with uncertainties and adapt to changes No 319 Company is one unit in construction industry and the Company is searching for the way to adapt to the market economy In the first years of the market economy, the Company had to undergo many trials with both success and upheavals to attain current achievements This is also an evidence to prove the role of business strategy The reality has proved that, unless defining a correct development strategy, enterprises will easily fall in traps and cannot get out of them, resulting in a slowdown in business and even a bankruptcy Therefore, to keep the firm foothold in the market and adapt to the ceaseless changes in business environment, the Company needs to build a suitable business strategy Object and scope of the study Applying the learned knowledge in strategic management to build and evaluate business strategy for No 319 Company - Object of the study: The study analyzes, assesses and gives orientation for building business strategy based on general theories on building business strategy of enterprises - Scope of the study: bases on the specific data about the production and business situation of No 319 Company Methodology of the study Based on the knowledge learned from GaMBA Training Course of Griggs University, the group uses analyzing and evaluating techniques learned from the program combined with the data collected from No 319 Company, data of the industry and outside companies to build, plan, analyze and assess all business strategies of No 319 Company Besides, the group also uses such methods like statistics, analysis, making model and forecast to analyze, assess and work out business strategies for the Company Structure of the capstone project: Apart from the introduction, conclusion and references, the main content of the capstone project consists of three chapters: Chapter I: Rationale of business strategy Chapter II: Analyzing strategic factor of No 319 Company Chapter III: Some strategic orientations and solutions for the business of No 319 Company CHAPTER I: RATIONALE OF BUSINESS STRATEGY 1.1 CONCEPT, CHARACTERISTICS AND ROLE OF BUSINESS STRATEGY IN ENTERPRISE 1.1.2 Characteristics of business strategy Business strategy is the determination of available resources allocation with the purpose of changing the balance positions of competition & turning the advantages to oneself According to Mr Michael Porter - a leading strategic professor of Harvard: Business strategy to cope with competition is the combination of the expected goals with the means that enterprise needs to find to realize those goals Business strategy can be classified by level: - Strategic vision - Strategic mission - Strategic objective/goal Business strategy can be classified by time: - Short-term strategy (lasts for 2-3 years and is often functional strategy) - Mid-term strategy (lasts for 5-10 years and is often relatively important strategy including many activities and projects) - Long-term strategy (lasts for over 10 years, strategy becomes an orientation and forecast for enterprise in the future) Business strategy can be classified by function - Functional-level strategy (Marketing strategy, human resources strategy, sales strategy, etc.) - Business-unit level strategy (sector 1, sector 2, sector 3) - Corporate-level strategy (Strategy for the whole enterprise, corporation) 1.1.3 Role of business strategy - Business strategy helps enterprises identify their purpose and orientation to set the base and guideline for all business activities of the enterprises - Business strategy helps enterprises catch and make use of business opportunities; at the same time have active measures to overcome challenges and threats in the competitive market - Business strategy contributes to raising efficient use of resources, enhancing competitive position of enterprises to ensure their sustainable development - Business strategy creates firm basis for the formation of policies and decision on suitable production and business with the changes of the market 1.2 PROCESS OF MANAGING BUSINESS STRATEGY 1.2.1 Analyzing situation Strategic management helps organizations and enterprises well define their goals and orientation to work out the reasonable roadmap and allocate resources in the optimal way to reach the goals in the time limit Goals of organizations are determined based on prudent and scientific analyses of the market, customers, consumer trend, competitors, changes in technological and legal environment, socio-economic situation, internal strengths and weaknesses, possible opportunities and threats from outside; therefore, they will be challenging but feasible goals, meeting the expectation of shareholders, managers and employees Goals of organizations and enterprises also start from the missions, visions, expectations and core value of organizations and enterprises The combination between “expected things” and “affordable things” via scientific analysis will keep organizations from falling into baseless illusions or missing opportunities to develop due to setting too low development goals right at the beginning 1.2.2 Building strategy Strategy building includes determining missions, setting goals, mapping out strategies and building policies The determination of missions is to answer the question about the purpose of existence for organizations and enterprises The message about the missions needs to cover three main contents: purpose of organizations, business lines and the possible values The process of building business strategy is specified as follows: - Building functional strategies, missions, functions and strategic goals of enterprises - Analyzing business environment - Analyzing the internal of enterprises - Selecting strategy - Corporate-level strategy - Business-unit level strategy and functional-level strategies - Organizing the deployment of strategy - Checking and assessing the results 1.2.3 Implementing strategy The tasks of deploying, assessing and supervising are also very important A good strategy is a correct step, but if is not deployed well, it will not bring any result Many strategies have failed in implementation stage rather than in planning stage Many managers think that a good strategy will certainly lead to the destination However, there are a lot of unexpected changes in implementation process and these strategies will not lead to the destination if there are not timely coping measures and a reasonable resource allocation 1.2.4 Assessing strategies - Checking and soon recognizing signals of changes and environmental trend that can have influence on strategic management of the company - Observing and identifying implication via continuous observations about the changes and environmental trends that can have influence on strategic management of the Company - Forecasting the development and projecting what will happen depending on the changes and trends checked and observed - Assessing, determining the time limit and importance of changes, environmental trends and implications under the organization’s perception about strategies and management activities If there is not assessment, enterprise will have very useful data, but does not understand what related to competition 1.2.5 Requirements on building business strategy There must be situation analysis: includes external and internal environment This analysis often consists of political, environmental, social analyses; and analyses of affecting factors to organizations, strengths, weaknesses, opportunities and threats Working out strategy: includes determining missions, setting out goals and long-term strategies 1.3 DETERMINING MISSIONS AND SYSTEM OF STRATEGIC GOALS 1.3.1 Strategic missions They are fixed and long-term announcements about the purpose of the enterprises They help differentiate an enterprise with others The announcements can be business regulations, objectives, business philosophies to determine business lines of products and services to serve market demand Content of strategic mission indicates overall issues to determine the scope of enterprise’s operation in the fields of product and market When setting out strategic missions, there must be attention on some factors such as the establishment, expectations of board of leaders, business environmental conditions, available resources and fortes of the enterprise Strategic missions help leaders identify goals better and more specific It determines the level of priority of the enterprises to evaluate potentials of each business unit and map out future orientation for the enterprise 1.3.2 System of strategic goals 10 suitable treatment If applicable, they will prevent from incidents, ensure product quality according to stipulated requirement and standard - Fourthly, apart from checking and monitoring product quality, the Company has to improve quality, advance some technical features and add some essential parameters regarding as: weather condition resistant, high temperature resistant of available products As a result, the Company will sell more products with high quality and attractiveness for consumers No 319 Company also defines that product development is foundation to keep position in the most potential market as well as ensure the survival in violent competitive market at present Researching and improving products for good looking and convenient use have particularly important meaning It not only protects products but also is useful advertising mean Therefore, the Company should consider the improvement of new and more suitable pattern for each type of product Good looking model will attract more customers and create value for products 3.3.2.2 Bidding Since the business features in construction, this is a typical method of the Company These methods include: * Bidding mainly depends on price advantages The Company can choose this method when they not have advantages in technique, technology in comparison with other contractors but they have any potential advantages to reduce construction cost as: - They can reduce transportation cost and move forces near to construction place - They can make use of depreciated equipments to reduce the depreciation cost for fix asset - They deploy new material with low price or availability The material suppliers are close to project - They make use of simple working staff in society - They joint venture, associate with national and international partners with advantages in equipments or data base - They set up optimal implementation project to reduce cost After setting implementation projects, the Company will select the optimal one, define standard price according to selected project After that, they will consider the possibilities for pricing package * Bidding mainly depends on technical and technology advantages This method is applied only when the Company has advantages in technique and technology with standard of labor force, specialized equipments in a frame or any project 70 The Company has advantages in implementing industrial and civil construction projects As a result, the Company can bid better with some following solutions: - Having policies to attract, develop technical and skillful workers - Having policies to attract investment for modernizing specialized machines - Having policies to ensure technique, quality of projects for stable and sustainable advantages * Bidding depends on financial capacity This method requires the Company to have strong financial potential with different methods of mobilizing capital By methods as payment the construction capital in advance, acceptance of slow payment; the Company can participate and win the bid Sometimes, the contractors have demand and estimation to set up program but they have not mobilized capital or their projects have not been approved in budget The Company has to notice that this strategy have threats and risks Nevertheless, the Company can hold following projects with more advantages or more attention, the advanced capital for implementation – that is acceptable interest rate The main methods: - Selecting optimal implementation solutions to reduce the cost - Having capital mobilizing policy from intern, associated partners who have strong financial capacity and capacity to penetrate in market - Having long term policies for investors * Bidding depends on non-economic advantages This method is applied in case of Company wants to direct contracting any projects Specifically, advantages are: - The relationship of the Company with investors in long term cooperation process - The reliability about previous project quality If Company wants to have non-economic advantages in bidding, they need to: + Creating the mutual belief with authorities and investors + Implementing social activities as funding locals to build some small construction projects, contributing to charity funds or helping the poor, so on 3.3.2.3 Developing consuming network The selection of distributors has to base on specific foundation, number of construction teams and training Furthermore, the establishment of agencies trading construction material depends on:  Population density  Average per capita income  Urbanization level  Growing rate of industries 71 Customs and using demand of each area The Company has to select enough distributors in system to meet demand of market As a result, it will create the association preventing from competition and fulfilling space in market On other hands, too many distributors will create the overlap and make departments not promote their capacity with conflicts to each other In estimation, consuming products and gained revenue from expanding agency system are positive Since the condition about demand and income in each area is different, we will consider the efficiency of this expansion in isolated region The solution of expanding consumed locals brings earnings for the Company by raising production output and consuming amount Furthermore, products will be handed over to the consumers more quickly, conveniently; consumers and customers will be closer and more faithful with products of Company since their quality is ensured and price is quite suitable 3.3.2.4 Promoting marketing and popularizing trade mark Setting up advertisement programs Advertising demand: Currently, modern machines with high-power allow the Company to increase output easily to meet the demand on using products brought by advertisement Nevertheless, when advertising program takes effect, the Company has to invest line and equipments to satisfy demand of market the best Therefore, to promote consuming, keeping current markets and expanding to other markets to increase competitiveness with competitors, it is necessary for the Company to advertise their products in public means of communication Moreover, the Company is considering this issue From finding information and surveying viewpoint of officials in business department, we propose advertising program as following: - Object: All types of customer - Tool: at present, there are many advertising means Basing on the efficiency of each program and financial capacity, No 319 Company should choose the advertising means as television, broadcasting station, newspaper and magazines + Advertising on television: target object is market in big provinces and cities Although the advertising charge is quite high, this mean brings corresponding effect, or in other words, charging is proportional with effect + Advertising on broadcasting station: this advertising charge is low and used mainly in markets having average and small consuming as well as remote areas + Advertising cost has to be in brief, easy to understand and combine with image, color, sound - Guidelines of advertising: bring high effect with suitable cost, express image of products in mind of consumers, orient customers to purchasing products, believing and faithful with brand name of the Company  72 In following years, depending on condition and financial capacity, the Company can spend from - 3% in advertising At the first time, the Company can reduce earnings as spending too much in advertising but the gained achievement in long term is significant The Company should not consider intermediate loss and miss these opportunities Many competitors have big capital and spend much money in advertising as: Song Da Construction Corporation, Truong Son Construction Company and the most direct competitors with the Company are Construction Company No 36 and No 789 Advertising cost can make up 30% revenue or many companies can accept the loss to spend for advertisement So that, depending on each specific situation the Company should make specific decisions to have the highest effect with the lowest cost 3.3.3 Promoting research and development At present, the function of research and development in the Company is divided as following: - Marketing and business department: collect information, survey taste and demand of market about products relating to manufacturing sectors or products are in development strategy of the Company Furthermore, the Company should have professional officials; encourage initiatives with the effect in application as the main measurement Besides, the Company needs to cooperate with scientific research offices, combine with Science Institutions and Universities to conduct spontaneous and creative projects - The Company also establishes research and development department undertaking the work of research and trial-manufacture design and shape of products Furthermore, this department carries out mechanical, physical and chemical experiments to find out new formula, apply new material for production as well as ensure product quality Nevertheless, to have higher production level, the Company is not necessary to have over investment The given target is that No 319 Company has to know to combine the effective exploitation with new investment for important department, combine research and self-design with purchasing This requirement does not merely come from limited capital, it ensures business stabilize production cost, gradually increase scientific research as well as the competitiveness at present as well as in future With respect to research and development, the Company follows two basic directions as: Firstly, the Company should continuously introduce market products with special features and meeting new demands In fact, the constructional technology in the world is always in advance and customers of this product group in Vietnam are not big enough to create big consuming market for foreign investment Therefore, the Company should make use of this period to rapidly improve technological qualification 73 and penetrate market Orientation for the Company is diversifying products and generating prestige with solid position in market At that time, when customers have demand, they will purchase products of the Company It is considered as advantage of the Company when they bid in market Secondly, the Company improves quality of traditional products, manufactures senior product group in product list The senior product group has predominant quality in guaranty times, safety and shape Following this orientation, the Company is focusing on quality of industrial and civil construction projects 3.3.4 Investing for technological innovation Currently, in the context of integration to the regional and the world economy, quality is making advantages in competition The competitive of product is measured by brain content and technology content in product Technical and technological qualification in business is the main condition to implement quality solutions Regarding to technical and technological qualification means equipments and improvement patent of enterprises With 30 % former machines from 80 decade and 70% new ones, production line in the Company is out of date and asynchronous It controls the rated capacity of machine On the other hands, if technological level of the Company is low, it is difficult for them to improve quality and diversify types Therefore, the Company has to invest to raise technological level as follows: - Enhancing the research by establishing professional technical staff, investing machines for research and creating scientific technique information channel - Working with research office by means of purchasing order, funding research expenditure and having right to use invention - Investing in production machines from developed countries as Japan, Germany - Synchronizing quality evaluation and management system for input material and output product 3.3.5 Improving capacity to mobilize capital Capital is an important and indispensable condition to conduct business strategy of each Company Business capital is the foundation and precedence for enterprises accounting and planning strategies Therefore, business capital has decisive role in the establishment, operation and development of enterprises Because of the development of credit relation in market economy, there is not any enterprise operating only base on their equity The mobilized capital not only lets enterprises to exploit more trading opportunities but also increase earnings significantly by means of reducing the paid income tax Nevertheless, not any Company has capacity to mobilize capital with the same level This mostly depends on financial potential, the feasibility of project, the relationship of business, prestige in payment In general, it is called comprehensive strength of business 74 To make business strategies and plan achievable, the Company should have feasible plan mobilizing and using capital at first Not having capital, all intentions are only in paper With respect to a business, the mobilized capital plays an important role to conduct plans and methods mentioned above Company can mobilize capital by some following solutions: + Mobilizing capital by issuing bill + Long term and middle term borrowing from banks + Using modern machines in form of hiring or purchasing + Cooperating for long term investment with national and international enterprises + Short term borrowing from banks, credit organizations or borrowing from officials + Enjoying credit of suppliers + Making use of short term debt of enterprise 3.3.6 Improving effectiveness in management information system Management information system of the Company is classified from high to low level Departments and boards are intermediate ones to collect information relating to their undertaken sectors regarding as: the implementation of subordinators, feedback from customers, new programs and policies of Government, etc After that, they will make report weekly, monthly and quarterly for board of directors to have suitable adjustment in time The information system is conducted through telephone exchange and internet The Company is creating website to introduce general information about operations, products, popularize image and call upon the cooperation The Company also equips intranet among departments and board of directors; nevertheless, this network has been not made use of and promoted as expectation As a result, No 319 Company needs to have the rules for using intranet in managing human capital, managing documents and reports If applicable, it will have significant contribution to the effect and success for the Company 75 CONCLUSION Setting up business strategy is not the short term one and it is not the mission of specific sectors If the Company lacks a strategy and strategy management system to solve problems such as renovating technology, rationalizing production, expanding market and improving human resource quality; their production and trading activities will face many difficulties in the current context of economic globalization With respect to Company No 319, the Company is conducting the integration with daily competition It requires the Company to ceaselessly strive and find out orientations adapting to business environment Looking at the undergone phase and certain achievements of the Company, we cannot deny their efforts though business process has much difficulty That is the attempt of board of directors and all officials in the Company They accompany to each other to go on the existence and development way with the hardness of market In coming time, the Company certainly gains achievements and contributes for the development of Vietnam With gained knowledge in Global Advanced Master of Business Administration Program and the reality during the working process in No 319 Company, we introduce our viewpoints in setting up business strategy for the Company The fully planning will provide managers in Company with more obvious view about their tasks to improve competitive capacity and select solutions matching to targets of the Company This capstone project focuses on following main contents: Rationalizing basic knowledge in setting up business strategy - Applying basic theories of business strategy to analyze business environment comprehensively, strengths, weaknesses of the Company and strategic analysis models to recognize factors affecting to business activities Basing on scientific theories to set up business strategy for the Company and propose solutions for implementation Different enterprises will have different business strategies Strategy management is a concerned issue and topic of many economic scholars in the world Nevertheless, in this report, we only propose the basic issues of business administration theory and our viewpoints in setting up business strategy for 319 Company Because of limited knowledge as well as reality, this capstone project still has mistakes We wish to receive contribution of teachers and members in program Finally, we express our gratitude to Associate Professor – Doctor Ngo Kim Thanh and teachers in Hanoi National University and Griggs University – America, who help us to finish this report as well as possible 76 REFERENCES Report of implementing plan in period of 2007-2009 in the Company Organization regulations of No 319 Company in 2009 Nguyen Thanh Do, Ngo Kim Thanh (1999), Business strategy and policy, Postuniversity education curriculum Nguyen Huu Lam (1998), Strategy management and competitive position development, Education Publisher Trading law (1997), National Politics Publisher Nguyen Van Nghien (2005), Business strategy, Post-university education and training Nguyen Tan Phuoc; Business strategy and policy; Statistics Publisher;1996 Do Van Phuc (2005), Management science for business, Science and technique Publisher Do Van Phuc (2004), Managers in industrial production, Science and technique Publisher 10 Report about production and trading activities of the Company in period of 2007-2009 11 Le Van Tam (2000), Strategy Management, Statistics Publisher 12 Phan Thi Ngoc Thuan (2005), Business strategy and internal business reformation, Science and technique Publisher 13 Central Statistics Office (1999), Data of socio-economy of 61 cities and provinces; Statistics Publisher 14 Charrles W.L.Hill and Gareth R.Jones (1995), Strategy Management; Houghton Miflin Company Publisher 15 Fred R.David (2000), Concept about Strategy Management; Statistics Publisher 16 Garr D.Smith, Danny Putti (1996), Business Strategy and Policy, National Politics Publisher 17 Philip Kotler (1997), Marketing Management, Statistics Publisher 77 APPENDIX Manager of Accounting Dept Manager of Planning Dept 2 2,7 3 3 3 2 2,8 3 2 2 2 2,4 3 3 3 3 2,8 3 3 2 2 2,6 3 3 3 2,7 2 2 3 2 2 3 2 2 2 3 3 2 3 3 2,4 2,7 2,1 2,3 78 Average score Manager of Technique Dept Business Dept Manager of Administration Dept Deputy Director of Technique Deputy Director of Administration Director 3 Department of Construction Opportunities High and stable growth rate of GDP Urbanization, infrastructure construction investment Stability of politics and society Tropical weather corrodes and destroy material quickly, it rises the demand on construction Advance of science and technology in construction Threats Competitors are mainly big construction corporations The law in environment protection The Company has to import executive machines Consumers have changes The potential competitors Ministry of Industry External environment factors Manager of THE VIEWPOINT OF EXPERTS ABOUT THE IMPORTANCE OF EXTERNAL ENVIRONMENT FACTORS TO CONSTRUCTION INDUSTRY APPENDIX Manager of Planning Dept 2,4 Urbanization, infrastructure investment Stability of politics and society construction 3 3 2 2,8 2 2 2 2,4 Tropical weather corrodes and destroy material quickly, it rises the demand on construction Advance of science and technology in construction 3 3 3 3 2,8 3 3 2 2 2 2,4 3 3 3 3 2,8 2 2 3 2 2 2 3 2 2 2 3 2 2 3 2,4 2,6 2,1 2,2 3 3 Average score Manager of Accounting Dept 3 Manager of Business Dept Manager of Administration Dept Deputy Director of Administration Deputy Director of Technique High and stable growth rate of GDP Director Opportunities Department of Construction Ministry of Industry External environment factors Manager of Technique Dept THE VIEWPOINT OF EXPERTS ABOUT THE IMPORTANCE OF EXTERNAL ENVIRONMENT FACTORS TO THE COMPANY Threats Competitors are mainly big corporations The law in environment protection construction The Company has to import executive machines Consumers have changes The potential competitors APPENDIX 79 Manager of Accounting Dept Manager of Planning Dept 2,6 3 2 2,7 2 2 2 1,9 3 2 3 2,6 2 2 2 2,2 2 2 3 3 2 3 3 3 2,6 2,5 3 3 2 3 2,7 2 2 2 2 2 3 2 3 2,1 2,4 3 2 80 Average score Manager of Technique Dept Manager of Administration Dept Deputy Director of Technique Deputy Director of Administration Director 3 Department of Construction Strengths Position and trade mark Good and experience human capital with capacity for research and development Positive finance and good payment capacity Good and stable quality with plan to improve quality and diversify products Leaders the Company unite and pay attention to corporate culture Weaknesses Limited capital source Marketing is weak Awareness of labor in competitive environment is not high Out of date and asynchronous machine system Products have not satisfied demand of market Ministry of Industry Internal environment factors Manager of Business Dept THE VIEWPOINT OF EXPERTS ABOUT THE IMPORTANCE OF INTERNAL ENVIRONMENT FACTORS APPENDIX Manager of Accounting Dept Manager of Planning Dept 2 2,6 3 3 3 3 2,8 2 2 2 2 2 3 2 3 2,6 2 2 2 2,2 2 2 3 2 2 3 3 3 2,4 2,5 3 3 2 3 2,2 2 2 2 2 2 3 2 2 2,3 2,7 81 Average score Manager of Technique Dept Manager of Business Dept Deputy Director of Technique Deputy Director of Administration Director Department of Construction Strengths Position and trade mark Good and experience human capital with capacity for research and development Positive finance and good payment capacity Good and stable quality with plan to improve quality and diversify products Leaders the Company unite and pay attention to corporate culture Weaknesses Limited capital source Marketing is weak Awareness of labor in competitive environment is not high Out of date and asynchronous machine system Products have not satisfied demand of market Ministry of Industry Internal environment factors Manager of Administration Dept THE VIEWPOINT OF EXPERTS ABOUT THE INFLUENCES OF EXTERNAL ENVIRONMENT FACTORS 3.4.1 The result for basic criteria in estimation Table 3.4: The asset summary table over years 2011- 2015 Criteria Equity Unit VND million 2011 2012 2013 2014 2015 131,640 140,854 154,940 173,533 196,092 Revenue VND million 1,597,692 1,677,577 1,795,007 1,830,907 1,867,525 Post-tax interest VND million 27,656 31,804 39,755 53,670 77,821 Payment for state budget VND million 17.500 19.300 21.000 22.800 24.500 % 17,2 18,8 19,8 20,9 22,1 People 370 380 390 400 410 3.200 3.500 3.800 4.100 4.400 Earnings/equity ratio Laborer Average income VND 1.000 82 APPENDIX 3.2 SWOT Matrix SWOT MATRIX STRENGTHS (S) - (S1) Position and trade mark - (S2) Good and experience human capital with capacity for research and development - (S3) Projects have good quality and suitable price - (S4) Positive finance and good payment capacity - (S5) Leaders the Company unite and pay attention to corporate culture WEAKNESSES (W) - (W1) Limited capital source - (W2) Marketing is weak and does not match to current business environment - (W3) Awareness of labor in competitive environment is not high - (W4) Average and asynchronous machine system - (W5) Project design models have not persuaded OPPORTUNITIES (O) - (O1) GDP growth is in high and stable rate - (O2) Urbanization, investment for infrastructure and industrial investment increases - (O3) Stable politics and safe society - (O4) Tropical weather corrodes and destroys material quickly, so the demand on repairing and completing projects is high - (O5) Modern scientific and technological achievements in creating constructional machines Making use of opportunities by using strengths S/O combination: - Promote construction scale - Improve quality of construction projects - Diversify projects in design model - Cooperate, receive the transfer of modern technology THREATS (T) - (T1) Strong competitors are big construction corporations - (T2) The rules of Government about environment protection and safety for labor - (T3) Most of constructional equipments have to be imported - (T4) Consumers have psychology to be favor in new model design - (T5) The appearance of new competitors Using strengths to overcome threats S/T combination: - Remain and expand market - Develop trademark - Associate and expand scale basing on advantages in prestige and experience - Promote advantages to improve competitive capacity Making use of opportunities to recover weaknesses W/O combination: - Invest and renovate technology - Market research, Marketing - Set up strong capital source - Improve quality of human resource with policies attracting talents Mitigating weaknesses to avoid threats W/T combination: - Remain the quality management system, environment management system to mitigate influences to environment - Pay attention to scientific research - Renovate constructional technology ... business situation of No 319 Company Methodology of the study Based on the knowledge learned from GaMBA Training Course of Griggs University, the group uses analyzing and evaluating techniques learned