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CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY FOR SONG DA JOINT STOCK COMPANY FOR THE PERIOD 2012 - 2016 Nguyen Van Son Le Trong Loi Vu Thi Thu Hien Pham Thi Mai Huong Class GAMBA01 X0710 HA NOI 2011 COMMITMENT We hereby assure that this report is the results of our group The data and figures stated in the report are true and original We also state that the analysis in the assignment belongs to the whole group basing on references and learnt knowledge The analysis in this assignment is not statement of any group member as a staff working for their organization Hanoi, November 2011 AUTHORS Nguyen Van Son Le Trong Loi Vu Thi Thu Hien Pham Thi Mai Huong GaMBA01.X0710 – Group i Capstone Project ACKNOWLEDGEMENTS We would like to express our sincere thanks to the lecturers from Master of Business Administration training program - Griggs University in Vietnam who have guided us in the course of the study In particular, special thanks are sent to the leadership and officials and employees of Song Da Joint Stock Company who have enthusiastically helped us with support and assistance in the process of gathering documents, data and organizing working sessions to help us have a practical view on the construction of the development strategy of the company In addition, we would like to express our sincere thank to Professors, Doctors who have provided us with the skills and knowledge of corporate governance throughout the course This knowledge serves as fundamental foundation for us to conduct the graduation report as well as to apply the theory into the practical work And particularly, we would like to thank the valuable guidance of Assoc.Prof.Dr Ngo Kim Thanh and Assoc Prof Arthur Gogatz for us to complete this study AUTHORS GaMBA01.X0710 – Group ii Capstone Project TABLE OF CONTENTS PREFACE: GENERAL INTRODUCTION .1 Overall background, the necessity and importance of the study Objectives of the Study .1 Methodology of the study Structure of the Capstone project: .3 CHAPTER I: THEORITICAL BACKGROUND FOR BUILDING BUSINESS STRATEGY The concept of business strategy The process of developing business strategy .5 Vision and Mission Statements External environment analysis 4.1 Macro environment analysis .6 4.2 Competitive and sector environment analysis 4.3 Competitive profile matrix 4.4 External Factor Evaluation matrix (EFE matrix) Internal environment analysis 5.1 Internal Factor Evaluation Matrix (IFE) 10 Determination of the competition position of businesses 10 SWOT Matrix 12 Selection of business strategies 12 8.1 Quantitative Strategic Planning Matrix – QSPM 12 CHAPTER II: ANALYZE THE CURRENT STATUS OF SONG DA JSC .15 2.1 Introduction of Song Da JSC 15 2.1.1 Organizational structure of the company .16 2.1.2 Business fields: .17 2.1.3 Production and business situation in 2008- 2010 and months of 2011 .17 2.2 Vision, mission, and core values 19 2.3 Analyze the business situation of Song Da Joint Stock Company .19 2.3.1 Analysis of external environment: 20 2.3.1.1 Analysis of the macro environment: 20 2.3.1.2 Industry analysis and competition .23 2.3.1.3 Opportunities and Threats 32 2.3.1.4 External Factor Evaluation Matrix (EFE) 33 2.3.2 Analysis of internal environment 33 2.3.2.1 Resources 33 2.3.2.2 Strengths .40 2.3.2.3 Weaknesses 41 2.3.2.4 Strengths and Weaknesses 42 2.3.2.5 Internal Factors Matrix (IFE) .42 2.3.3 Mc Kinsey Matrix– GE 43 GaMBA01.X0710 – Group iii Capstone Project 2.3.4 Setting up internal-external factors matrix 44 CHAPTER III: Proposed Strategies and Solutions for Implementation .48 3.1 Objectives and main tasks of Song Da 2: .48 3.2 Proposed strategy plan for the period 2012 – 2016 50 3.2.1 Selection of business strategy .52 3.2.1.1 Quantitative Strategic Planning Matrix (QSPM) .53 3.2.2 Strategy of Song Da for the period 2012-2016 51 3.2.2.1 Business strategy at the company level .51 3.2.2.2 Business strategy at the department level 52 3.3 Solutions to perform business strategy for the period 2012-2016 52 3.3.1 Marketing Management Solutions 52 3.3.2 Solution group on manufacturing administration 53 3.3.3 Human resource management solution group .55 3.3.4 Financial administration solution group 56 3.3.5 Enterprise organization and development measure .57 3.3.6 Strategies Implementation Timeline .58 3.4 Some recommendations to the Authorities and the State .58 3.4.1 Recommendation to Song Da Group .58 3.4.2 Recommendation to the Government and the Authorities 59 CONCLUSIONS 60 References: 60 LIST OF FIGURES Figure The process of planning business strategy Figure The model of competitive forces of Michael E Porter Figure Mc Kinsey Matrix .10 Figure Organizational Structure of Song Da JSC 16 Figure 7: Internal-external factors matrix (IFE - EFE) 44 GaMBA01.X0710 – Group iv Capstone Project LIST OF TABLES Table 1: Competitive profile matrix Table 2: External Factor Evaluation Matrix Table 3: Internal Factor Evaluation Matrix .10 Table 4: SWOT Matrix 12 Table 5: QSPM Matrix 13 Table 6: Competitive Profile Matrix of Song Da 29 Table 7: Opportunities and Threats 32 Table 8: External Factor Evaluation Matrix of Song Da (EFE) 33 Table The general table of cadres, engineers, technicians of Song Da 34 Table 10 The general table of technical workers of the company Song Da .34 Table 11: Structure of assets and capital resource 36 Table 12: Financial index 38 Table 13: Strengths and Weaknesses 42 Table 14: Internal Factors Matrix (IFE) of Song Da 43 Table 15: SWOT Table 47 Table 16: SWOT Matrix of Song Da 50 Table 17 QSPM Matrix 50 Table 18 Strategies Implementation Timeline for Song Da JSC .58 GaMBA01.X0710 – Group v Capstone Project PREFACE: GENERAL INTRODUCTION Overall background, the necessity and importance of the study All over the country, the construction industry has made significant works at national and regional levels The practical contribution, huge effects on the industrialization - modernization process of the country are the most vivid evidence for the remarkable development, growth of Vietnam Construction industry in the context of international economic integration However, as well as other economic sectors, the Construction industry is facing with common challenges such as price volatility, rather high bank interest rate which have posed significant impacts on production and business activities of the companies in the industry In order to achieve their goals, the businesses are required to have appropriate business strategy to fully take advantage of business opportunities and constraint at the lowest level of risk, thereby improving their efficiency and competitiveness Developing a sound strategy means that the enterprises have had a guideline on the way of their business For over 30 years of construction and growth, Song Da Joint Stock Company has significantly contributed to the development of Construction industry, contributing to the significant development of our economy with civil works, irrigation, transportation, construction, transportation material business, etc The development of business strategy for the company plays an important role for long-term growth orientation of the company in particular and the construction industry in general Therefore, we have chosen the study subject “Building Business Strategy for Song Da Joint Stock Company for the period 2012 – 2016’ Objectives of the Study The specific goal of this study is to build the business strategy for the development of Song Da Joint Stock Company during the period from 2012 to 2016 Specifically as follows: − The rationale for developing strategies for business − Analysis of the basis for developing strategies for business: the business environment (micro and macro environment); internal factors; portfolio − Identifying strengths, weaknesses, opportunities and challenges of the company − Proposing and selecting business strategy suitable for the company during the period 2012 - 2016 and measures to implement the strategy effectively The achievement of the study will bring about meanings in terms of theory and practice for those managing enterprises in general and Song Da Joint Stock Company in particular Specifically: - The topic can help those managing and operating enterprises have the general view of the enterprise’s business strategy, improve knowledge and skill of building and presenting the enterprise’s business strategy - This topic lifts the importance and meanings of analyzing and forecasting the business environment of the enterprise, estimating the effect level of the enterprise’s external environmental factors, internal factors in building and analyzing matrixes within the frame of analyzing the strategy completion - The topic supplies Song Da Joint Stock Company with a good reference source and a specific strategy in the period of 2012 – 2016, which is a meaningful period for the development history of the company This source includes the general strategy, the partial strategies and the solution group to implement the strategy successfully Methodology of the study Analyzing the business environment of the company from 2008 to June 2011 in order to formulate the strategic direction for the company in the period 2012 to 2016 • Data collection methods: Using both the primary and secondary data such as: - Secondary data are collected through sources such as newspapers, television and Internet, internal documents of the company, reports, and construction journals - Primary data are collected through working meetings with the leaders, officers and employees working at the company; interviews with appropriate experts • Comparison and synthesis methods: Comparison of appropriate data on space, time and economic contents, units of measurement, calculation, scale and business conditions • Statistical methods by tables, charts: Statistics helps to find out trends or common characteristics of the elements analyzed • Expert Method: Building strategic matrixes by consulting opinions of many experts to draw conclusions • SWOT Method: Finding out the strengths and weakness within the company, opportunity and risk outside the company This is a key method in strategic planning Structure of the Capstone project: This assignment is presented in three chapters: Chapter 1: Rationale for business strategy planning Chapter 2: Analyze the current status of Song Da Joint Stock Company Chapter 3: Proposed Strategies and Solutions for Implementation CHAPTER I: THEORITICAL BACKGROUND FOR BUILDING BUSINESS STRATEGY The concept of business strategy Different scholars have different points of view on business strategy from many different angles Under the traditional approach, strategy is the determination of basic long term objectives of the business and implementation of its action plan with the allocation of necessary resources to achieve the objectives It can also be seen that strategy is a method that businesses use to guide their future so as to achieve and sustain their growth In 1962, Chandler defined strategy as the identification of basic long-term objectives and goals of enterprises and the application of a course of actions as well as the allocation of necessary resources to achieve these objectives"1 According to Johnson and Scholes, "Strategy is the long-term direction and scope of an organization in order to gain competitive advantages through the format of its resources in a changing environment to meet market demands and the expectations of stakeholders"2 According to Bateman and Zeithaml, "Strategy is a harmonious combination of activities and the allocation of resources to achieve the objectives of an organization The strategy of an organization is the attempts to maximize the capabilities and resources of that organization to have best response to opportunities and challenges of external environments”3 Currently, business strategy is defined as “an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.”.4 Chandler, A (1962), Strategy and Structure Cambrire, Massacchsettes MIT Press Johnson, G, Scholes, K (1999), Exploring Corporate Strategy, 5th Edition Prentice Hall Europe Bateman Zeithaml,( 1990) - S6: Products quality - S7: Labour safety - S8: Liberation of capital from securities W (WEAKNESS) - W1: Geographical location of the company W-O W –T Overcome weaknesses to take Overcome weaknesses in advantage of opportunities order to avoid threats - W2: Bulky structure - Combine W1, W4, W5 with O2, - Combine W4, W5 with T1, - W3: Limited high-skilled O3, O4, O5 → strategy to expand T2 → Competitive Strategy labour resource and find information on new by the difference - W4: Administration markets - Combine W2, W3 with T1, information system - Combine W2, W3 with O3, O4 T4 → Human resource - W5: Limited Marketing and → Strategy of production management strategy market expansion development and human resources Based on the combination of factors: strengths - opportunities, strengths – threats and weaknesses - opportunities and weaknesses – threats, we developed the following strategies:  Market development strategy, improve the competitive position It is formed from two combination groups: Combining S1, S2, S3, S4, S5, S6, S7 with O1, O2, O5 and combine W1, W4, W5 with O2, O3, O4, O5: this combination helps the company expand the market, improve competitive position, and search for new customers based on brand advantages, facilities, technological equipment and overcome the weaknesses of geographic location, market share and labor resources  Manufacturing development strategy The formation of two combination groups: Combining W1, W4, W5 with O2, O3, O4 and combining W2, W3 to O3, O4: This combination can help the company develop appropriate production with market information towards improvement of labor and technological innovation 51  Competitive Strategy by the cost It is formed from the combination group S2, S3, S4, S5 to T1, T2: The Company can develop the strength of equipment and production management capabilities to reduce the input costs to create competitive advantage for the company  Competitive Strategy with a difference It is formed from the combination group W4, W5 with T1, T2: The search for market information on inputs, outputs, information on the application of measures, the advanced technology will help the company cope with the volatility of the market and improve competitiveness of the company  Strategy to raise capital effectively It is formed from the combination group S1, S2, S8 with T3, T4: the Company may promote prestigious brands and facilities, modern equipment to promote the various funds from the bank or shareholders to develop production and business With the reputation and long experience in the construction and installation, it will also help Song Da accelerate the settlement of the works to limit capital account  Strategic human resource management It is formed from a combination of W2, W3 with T1, T4: Enable the company to attract young workers with high qualifications and essential to reduce bloated management structure 3.2.1 Selection of business strategy By using SWOT analysis model combining elements of the environment (strength, weaknesses) and external environmental factors (opportunities and threats) of Song Da JSC., its strategies would be: - Market expansion strategy - Manufacturing Development strategy - Competition strategy with low cost - Competition strategy with differences - Strategy to raise capital effectively - Human Resource Management strategy 52 Based on the above possible strategic plans, we use the QSPM matrix to choose the best plan for Song Da in the period of 2012-2016 The possible strategic plans are put into QSPM matrix to choose the best plan for Song Da including: market expansion strategy, manufacturing strategy development, competitive strategy with low cost and competitive strategy of differences The two remaining strategic plans are a strategy to raise capital effectively and human resource management strategy can be implemented through strategies at the department level such as Financial administration solution group, and Human resource management solution group 3.2.1.1 Quantitative Strategic Planning Matrix (QSPM) Selecting strategies by the way of using QSPM enables strategists to objectively evaluate the possible alternative strategies based on the identified inside and outside key success factors 53 Table 17 QSPM Matrix Possible alternative strategies Criteria External factors Polictical and law environment Market demand Preferential policies by the State Development of science-technique and technology in the world International Cooperation Internal competition pressure Pressure from suppliers Pressure from customers Pressure from substitutes Pressure from potential competitors Changes of interest rate of the market Internal factors Prestigue and brand name Market expansion Weight Development Low expenditure Differentiation AS TAS 4=2x3 AS TAS 6=2x5 AS TAS 8=2x7 AS TAS 10=2x9 0.05 0.15 0.1 3 0.2 0.45 0.3 4 0.2 0.6 0.3 3 0.2 0.45 0.3 3 0.2 0.45 0.3 0.13 0.1 0.12 0.12 0.12 0.03 0.03 0.05 1.00 2 23 2 0.52 0.3 0.24 0.24 0.24 0.0609 0.06 0.1 2 23 2 0.52 0.3 0.24 0.24 0.24 0.0609 0.06 0.1 3 2 23 2 0.39 0.3 0.36 0.24 0.24 0.0609 0.06 0.1 3 2 23 2 0.39 0.3 0.36 0.24 0.24 0.0609 0.06 0.1 0.12 0.48 0.36 0.36 0.48 50 Products quality Production technology, machines and equipment Human resource ability Finance ability Management ability Effectiveness Operation Administration Labour Safety Liberation of capital from securities Administration information system Bulky structure Limited High-skilled Labour Resource Limited Marketing and market expansion Geographical position 0.12 0.1 0.1 0.1 0.1 0.06 0.05 0.06 0.03 0.03 0.03 0.05 0.05 1.00 4 3 3 3 2 2 0.48 0.4 0.3 0.3 0.3 0.18 0.15 0.18 0.06 0.06 0.06 0.1 0.1 Total Score 5.8689 4 3 3 2 2 0.48 0.4 0.3 0.2 0.3 0.18 0.15 0.18 0.06 0.06 0.06 0.1 0.1 5.7982 3 3 3 2 2 2 0.36 0.3 0.3 0.3 0.3 0.18 0.15 0.12 0.06 0.06 0.06 0.1 0.1 3 3 2 2 2 5.4548 (AS- Attractive Score, TAS- Total Attractive Score) The above Matrix QSPM states that the market expansion strategy with the highest attractive score, suggests that this strategy is suitable and worthy choice to implement 51 0.48 0.3 0.3 0.3 0.3 0.18 0.1 0.12 0.06 0.06 0.06 0.1 0.1 5.6467 • The basis for market expanding strategy Until now, the country's big hydropower works has been planned and under construction, so in the future, the hydropower construction market of the company will be reduced Development of transport and urban infrastructure is always a top priority of the government of Vietnam Especially, the urbanization process of Vietnam until 2010 only reached 28% while the average rate of the countries in the region is 50% Thus, the construction projects market and urban remains a potential market The company has a team of technicians and skilled workers, with available equipment, vehicles and construction machines, the company can undertake the works In addition, the company has production line of construction materials (stone production, brick and concrete production, asphalt batching) created the initiative to be in charge of major construction projects as well as be EPC of the projects such as transport, thermal The financial situation of the company is relatively stable; revenue and profit for four continuous years have increased more than previous years Especially, since integrating into the stock market, the company can fully mobilize capital needed to expand production and business To maintain production and annual revenue of nearly 500 billion dong, the search for market expansion is the urgent of Song Da today 3.2.2 Strategy of Song Da for the period 2012-2016 Based on the analyzed matrix, the actual situation of the company, our group has built up the business strategy of Song Da in the period of 2012-2016 as follows: 3.2.2.1 Business strategy at the company level Song Da has confirmed the brand on the construction market To be a strong company in construction not only in Song Da Corporation, but also become a strong brand in the construction industry, the company has selected strategy to expand the market to take advantage of the available advantages to develop and expand production and business 51 In the period 2012-2016, Song Da should expand into the field of civil engineering and construction of infrastructure (for transportation, urban, industry ) In addition to construction and installation works by Song Da Group as an investor, Song Da will continue to look for bidding other construction and installation works, especially the civil works in major cities as Thai Nguyen, Vinh Phuc 3.2.2.2 Business strategy at the department level Business strategy at the company level is the company's overall business strategy to achieve the goals To be successful overall strategy, the company must develop strategies for parts and a system of synchronous solutions in order to implement those strategies Song Da has selected development strategy that is based on market opportunities and threats from the external environment as well as individual strengths and weaknesses within the company environment The basic strategy to take market expansion strategy is a marketing strategy in which the core is bidding work and seeking employment Next is the complementary function such as human resource management, financial management, input resource management 3.3 Solutions to perform business strategy for the period 2012-2016 3.3.1 Marketing Management Solutions • The brand promotion − Market penetration: Song Da is known as a leader in the construction of hydroelectric power so the company needs to expand market penetration and brand-building in other areas such as construction materials and civil engineering The company needs to enhance advertising through mass media to attract potential customers, improve market share and compete with rivals in the field − Improve product quality: The works by Song Da Construction have always been done on schedule and quality assurance with the contractor For products as 52 construction materials, should always be delivered to the construction with quality assurance and technical specifications − Diversify Products: Based on the available resources, the company needs to diversify its products as building materials production and construction of traffic works, urban lower frequency, construct civil construction, industrial factories, thermal power projects • The process of marketing policy implementation − Image: Continue to improve and update the company's Website repeatedly Information on financial capability, production capacity and image quality should be posted on the site to customers, shareholders and make it easy to access − To enhance the corporate image, advertising in newspapers, journals Capacity building of company records in detail This is an important factor in helping to strengthen the competitiveness of companies when bidding for the new work − Focus on developing residential and industrial construction markets, especially concentrate on marketing bidding for construction of civil, urban projects in Hanoi and surrounding provinces − Customer Care: For construction and installation industry, the customer is mainly the product warranty after handing over the completed works The company plans to repair warranty for products, the works have been completed, even settlement Need to conduct surveys, check periodically with investors after the project was handed over and put into use This is a very important activity to promote the brand and enhance the competitiveness of Song Da 3.3.2 Solution group on manufacturing administration Management on materials supply: Due to the impact of the global economic crisis, the construction materials market is affected Exchange rate increases leading to increase fuel price, electricity price, iron, steel, cement price and 53 unpredictable On the other hand, the acceptance, collection of funds is slow leading to slow capital turnover affecting to the payment for the provider - Setup a provider network which defines the clientele to obtain supplies and plentiful materials at reasonable prices, limit prices when the market was forced scarcity - Step up the settlement, not affect the contract’s payment term with the suppliers This is an important condition that can help the company reach an agreement on the lowest input price - The company needs to plan budgets close to reality and make plans to purchase materials meeting production requirements and actively coping with the fluctuations of the materials market Manufacturing and Operational Management Cost-competition means that using technology resources, labor and production management to save costs and increase competitiveness of enterprises It is difficult to decrease the materials norm because need to comply with specifications, so cost cutting down should mainly reduce defects and waste due to production management This decides greatly to the competitiveness and ability to win the bid - Organization of reasonable production through the production layout, location of the machines and the lines, make material preparation and site to save labor costs (daily working costs) and reduce the cost of construction machine rental by shift For example, during installation of concrete formwork, it needs employees at the levels of the state, but the company could reduce to three workers while ensuring the technical process - Setup appropriate materials norm, reduce losses and waste For example, under the provisions of the state in the manufacture of structural steel products, the loss rate is 2% of raw materials but by means of strict supervision and management of transport logistics for material batching, production at the station and 54 transportation to the construction works for the company can reduce the loss rate to 1% - Using new technology: information technology application in the operating company management (online briefing from the office works with the company, Internet service to internal management of the Company to the enterprise) The application of modern technologies of the world in high-rise construction as top down - up, sliding formwork, cladding materials such as metal decorating, applying science and technology to reduce costs and improve business performance 3.3.3 Human resource management solution group Recruitment and training human resource The company focuses on recruitment to have skilled force workers and technicians and sufficient quantity and quality for the company development strategy period 2012-2016 - Have in place training policy to train human resources, particularly for training: Human resource for unit management, projects staff and technical staff of professional focus, skilled workers specialized civil construction and industry - Create a manager resource by sending young staff capacity to manage classes, professional training at universities, institutes - Recruit technicians and skilled workers meeting the orientation of the company in the future Employee Encouragement Policy Recruitment is the process of selection of workers with professional qualifications in accordance with the company, training and development is to equip them with the necessary skills to serve the current and future policies to the employee who is the solution to maintain the stability of human resources to meet the needs of production and business Workers encouragement is represented by the elements of financial and no financial factor as follows: 55 - Develop appropriate salary and award policy: income of workers must have increased each year and ensure that offset inflation are published annually Salary, bonuses, benefits to employees must be based on the criteria for completion of the work results of employees, the coefficient of positions, the responsibilities ensure fairness for employees to enhance the sense of responsibility, self-discipline and develop their capacity Setup working environment: setup friendly working atmosphere between managers and employees, between departments and between workers, facilitate people working happily Arrange facilities and working means such as office buildings, machinery, furniture, labor protection to create favorable conditions for their professional work Workspace layout airy, clean, safe, scientific working space for employees to facilitate operations, improve work efficiency 3.3.4 Financial administration solution group - Maintain the value of inventory at reasonable levels: Based on the construction progress of each project that the company should have a reasonable plan of inventory to ensure the progress of construction, just avoid accumulation of the capital The company also needs to well the rise and fall forecast of prices of raw materials from time to time in the year to plan the response time - Improve debt collection process: Song Da should pay attention to the acceptance of payment from the recovery of capital works, particularly works in progress To withdraw the capital early, need to perform fast the handover procedure, test, and make payment records and collection of debts To increase efficiency, the Company may assign responsibility to individuals and departments for each division for each specific type of debt There are reward regulations for recovery of debts by individuals and organizations to collect If the customers prolong the debt, the company should submit by law enforcement agencies to intervene - Diversify sources of mobilized capital to serve the needs of production and business activities of companies: loans from credit institutions, loans from 56 officers and employees in the company The Company may issue additional shares or bonds to raise capital from investors if any From time to time, each stage of the policy that the company has flexibility to use funds to reduce debt costs thereby increasing profits for businesses 3.3.5 Enterprise organization and development measure - Continue reorganizing and restructuring the company organization and the units in accordance with the development of the company during the period 20122016 If any, establish a joint stock company in which Song Da Corporation holds shares controlling industrial, civil construction, industry and the traditional industries of the company - Allocate tasks and responsibilities of the Board of the Company and the company executives, the board chairman and general director of the company in company management and administration activities of the company's business - Perfect the management and administration from the Company to the units in accordance with the organizational model of operation and production business of the Company - Assign specific tasks in the company's leadership on the basis of rights and responsibilities in the field of work - Manage and operate all production and business operations of the Company under the rules and regulations issued Decentralize management on the basis of autonomy, self-responsibility of the leaders under shareholders 57 3.3.6 Strategies Implementation Timeline Table 18 Strategies Implementation Timeline for Song Da JSC Timeline (Year) Strategy Strategies at the division level at the Production Human resource Finance company Marketing Management Management Management Management level 2012 1 2013 1 2014 2 2015 2016 Notes: Yellow box: time for a feasibility study Number box: time for strategy implementation Blue box: time for stable operation of the strategy Before implementing a strategy at the division level, a feasible study may be needed to find and choose solutions, resources and develop the operation plans and measures to implement in the most effective way In the strategy implementation stage, the company focuses resources on the implementation of solutions and outlined plans The changes in volume happen in the strategy implementation time, and until the end of this stage, the changes in quality of expected factors happen After the implementation stage, the strategies will turn to stable stage of operation and development 3.4 Some recommendations to the Authorities and the State 3.4.1 Recommendation to Song Da Group - Support procedures of payment mechanisms, management mechanism when Song Da signs the contract of the big package with other units - Support for the Company in the Group's legal status and financial capacity to market the big packages and high requirements Support for the initiative, flexible and fast at the stage of investment procedures and equipment procurement 58 3.4.2 Recommendation to the Government and the Authorities − Continue with the business support solutions on the market, capital and taxes − Speed up the development of energy and transport infrastructure to facilitate business soon to expand the market opportunities Conclusion of Chapter III Start from the goal and analyze the internal and external factors of Song Da 2, our group has compared comparative strategies can be done and then used QSPM matrix to choose the optimal strategy for Song Da for the period 2012-2016 that is the business expansion strategy In addition, the group also made the solutions on marketing, production management, human resource management, financial management and overcome the shortcomings, enhanced the advantages to promote successfully the company's overall strategy 59 CONCLUSIONS In the market economy, for survival and sustainable development, a business must first have a good and effective business strategy Based on the knowledge learned from MBA program Griggs and other resources, our group has worked together to conduct the subject of business strategy for Song Da in the most basic way, easy understand and be feasible that is consistent with the vision and objectives of the company in the coming period The development strategy for Song Da follows the process of developing business strategies, including: determine vision, business objectives; assess the external environmental factors that impact on business to find opportunities and identify threats to the operation of the business combination with an analysis of the company to identify the strengths and weaknesses of the company, then set the business strategy selection matrix and provide strategic essential solutions For the Song Da 2, this practical topic will help the company leaders raise awareness about the importance of the company with a good business strategy and strengthen efficiency and sustainable development and improve the brand image of the company References: Slide and Textbook on Strategic Management,MBA program, Griggs University Fred David, Concepts of Strategic Management, Statistics Publishing House, Hanoi, 2006 Le The Gioi, Nguyen Thanh Liem, Tran Huu Hai, Strategic Management, Statistics Publishing House, Hanoi, 2007 Ngo Kim Thanh, Textbook on Strategic Management, Publishing House of the National Economics University, Hanoi, 2011 Internal documents and reports of Song Da 2; Website http://songda2.com.vn 60 ... organization Hanoi, November 2011 AUTHORS Nguyen Van Son Le Trong Loi Vu Thi Thu Hien Pham Thi Mai Huong GaMBA01.X0710 – Group i Capstone Project ACKNOWLEDGEMENTS We would like to express our sincere thanks... Assoc.Prof.Dr Ngo Kim Thanh and Assoc Prof Arthur Gogatz for us to complete this study AUTHORS GaMBA01.X0710 – Group ii Capstone Project TABLE OF CONTENTS PREFACE: GENERAL INTRODUCTION ... 42 2.3.2.5 Internal Factors Matrix (IFE) .42 2.3.3 Mc Kinsey Matrix– GE 43 GaMBA01.X0710 – Group iii Capstone Project 2.3.4 Setting up internal-external factors matrix