Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (80)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY OF KINH DO JOINT STOCK COMPANY TO 2015 CLASS: GAMBA01, N03 HANOI, JUNE 2010 TABLE OF CONTENTS FOREWORD Topic rationales Objective of research Scope of research Method of research Structure of report CHAPTER 1: THEORETICAL BACKGROUND OF THE ENTERPRISE STRATEGIC PLAN 1.1 CONCEPT OF STRATEGY AND STRATEGIC PLAN 1.1.1 Concept of strategy 1.1.2 Strategic administration 1.1.3 Role of strategy for the enterprise 1.2 BUSINESS STRATEGIC ADMINISTRATION PROCEDURE 1.2.1 Step - Agreement on strategic plan, determination of mission and orientation objective of the enterprise: 1.2.2 Step - Environmental analysis 1.2.2.1 External environmental analysis 1.2.2.1.1 Macro environmental analysis 1.2.2.1.2 Micro environmental analysis 1.2.2.2 Internal environmental analysis 1.2.3 Step - Determination of long-term objectives and establishment of enterprise development strategy 1.2.4 Step - Determination of action plans and development of strategic implementation solutions 1.2.5 Step - Inspection and adjustment 1.3 TOOLS USED FOR ASSESSMENT AND ESTABLISHMENT OF BUSINESS STRATEGY 1.3.1 External factor evaluation matrix - EFE: 1.3.2 Internal factor evaluation matrix - IFE: 1.3.3 SWOT matrix: 1.3.4 QSPM matrix: CONCLUSION ON THE CHAPTER CHAPTER 2: ANALYSIS OF EXISTING CONDITIONS PRODUCTION AT KINH DO JOINT STOCK COMPANY OF BUSINESS AND 2.1 INTRODUCTION ABOUT KINH DO SYSTEM 2.1.1 Formation and development 2.1.2 Organizational diagram of the system of Kinh Do companies (Kinh Do Group) 2.1.3 Production and business result 2.1.3.1 Main groups of products of Kinh Do Joint Stock Company 2.1.3.2 Revenue of each group of products through years 2.1.3.3 Gross profit of each group of products through years 2.1.3.4 Summary of some achieved targets of Kinh Do Joint Stock Company in 2006-2009 2.1.4 Financial analysis 2.2 ANALYSIS OF PRODUCTION AND BUSINESS ENVIRONMENT OF KINH DO EXTERNAL ENVIRONMENT 2.2.1 Macro environment 2.2.1.1 Economic environment: 2.2.1.2 Political, policy and law environment: 2.2.1.3 Cultural and social environment: 2.2.1.4 Population environment: 2.2.1.5 Technological environment: 2.2.2 Micro environment 2.2.2.1 Competitors: 2.2.2.2 Customers: 2.2.2.3 Suppliers: 2.2.2.4 Substitute products: 2.2.2.5 Sector penetration obstacles: 2.3 ANALYSIS OF INTERNAL ENVIRONMENT 2.3.1 Production 2.3.2 Research & development 2.3.3 Marketing 2.3.4 Human resources management 2.4 APPLICABLE TOOLS 2.4.1 SWOT matrix 2.4.2 External factor evaluation matrix - EFE: 2.4.3 Internal factor evaluation matrix - IFE: CONCLUSION ON THE CHAPTER CHAPTER 3: BUSINESS STRATEGIC ORIENTATION AND KINH DO DEVELOPMENT SOLUTIONS TO 2015 3.1 STRATEGY RATIONALES: 3.2 FORECAST ON MARKET DEMAND 3.3 OBJECTIVES OF KINH DO JOINT STOCK COMPANY: 3.4 BUSINESS STRATEGIC PLAN OF KINH DO JOINT STOCK COMPANY TO 2015 3.4.1 Analysis of main strategies 3.4.1.1 Forward combination strategy: 3.4.1.2 Backward combination strategy: 3.4.1.3 Horizontal combination strategy: 3.4.1.4 Concentrated growth strategy based on product development: 3.4.1.5 Concentrated growth strategy based on market penetration: 3.4.1.6 Concentrated growth strategy based on market development: 3.4.1.7 Central operation diversification strategy: 3.4.2 Strategy selection 3.5 SOME SOLUTIONS TO IMPLEMENTING KINH DO JOINT STOCK COMPANY DEVELOPMENT STRATEGY TO 2015: 3.5.1 Marketing solution 3.5.1.1 Establishment of marketing strategy for each line of product 3.5.1.2 Solution to cost reduction for exploitation of rural market: 3.5.1.3 Distribution solution 3.5.2 Financial solution 3.5.3 Human resources solution 3.5.4 Production solution 3.5.4.1 Materials solution 3.5.4.2 Production solution 3.5.4.3 Technological solution 3.5.4.4 Quality management solution 3.6 SOME RECOMMENDATIONS 3.6.1 For the State: 3.6.2 For the sector: CONCLUSION ON THE CHAPTER CONCLUSION LIST OF TABLES No 01 02 03 04 05 06 08 09 07 10 11 12 Sign Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Table 2.6 Table 2.7 Table 2.8 Table 2.9 Table 2.10 Table 2.11 Table 2.12 Name Revenue of each group of products through years Gross profit of each group of products through years Some achieved targets in 2008 and in 2009 Account receivables Account payables Some main financial targets GDP growth rate of Vietnam in the period 2006-2009 Average GDP per capita from 2006 to 2009 Average population classified by sex, urban area and rural area Main competitors of Kinh Do SWOT matrix External factor evaluation matrix for Kinh Do Joint Stock 13 14 15 16 17 18 23 24 25 26 27 28 29 30 31 32 33 Table 2.13 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 3.5 Figure 2.1 Figure 2.2 Diagram 1.1 Diagram 1.2 Diagram 1.3 Diagram 1.4 Diagram 1.5 Diagram 2.1 Diagram 2.2 Diagram 2.3 Diagram 2.4 Company Internal evaluation matrix for Kinh Do Joint Stock Company Estimated capacity of Vietnam confectionery market to 2015 Revenue of Kinh Do Joint Stock Company over the past 10 years Forecast equation formulation Forecast revenue of Kinh Do Joint Stock Company to 2015 Some targets of Kinh Do Joint Stock Company to 2015 Logo of Kinh Do Joint Stock Company A Kinh Do Bakery in Ho Chi Minh City Strategic administration procedure Micro environment (Michael Porter) Model of competitive advantage by Michael E Porter Internal environment SWOT matrix Member companies Organizational diagram of Kinh Do Joint Stock Company Revenue proportion of products in 2009 Gross profit proportion of products in 2009 Page 22 23 24 26 26 27 28 28 31 33 42 43 44 47 48 48 49 16 18 8 12 16 19 22 24 FOREWORD Topic rationales: - Vietnam is shifting to the socialism-oriented market mechanism under the State management in the context of the international and regional economic integration Faced by the increasingly changing and fierce business environment at present, each enterprise should find a proper direction to keep pace with new trend and keep increasing its position in the market - Together with the national economic growth, Kinh Do has achieved a great deal of successes, contributing to leading the food processing of Ho Chi Minh city in particular and Vietnam in general to a new height However, Vietnam has just joined the World Trade Organization (WTO), business environment is likely to have many changes If depending only on the past advantages and business experiences, Kinh Do will not stand firm and continue development With a view to finding out direction in order to maintain the position of Kinh Do in the future, concurrently applying the knowledge acquired from the master program, we have chosen the research topic "Business strategy of Kinh Do Joint Stock Company to 2015" Objective of research Based on the analysis of micro environment, macro environment, production and business situation of Kinh Do, find out suitable business strategy to help Kinh Do maintain its position and keep growing to become an economic group of Vietnam in the future Scope of research - Research space: Confectionery market in Ho Chi Minh city and other provinces and cities throughout the country.1 - Research time: The topic focuses on researching production and business situation of Kinh Do Joint Stock Company in the period 2006-20092 Method of research: - We have adopted the following method to carry out the topic: Description, collection of figures, summarization and analysis of production and business situation of Kinh Do Joint Stock Company Structure of report Apart from the foreword, conclusion and annex, the report is structured into chapters: - Chapter 1: Theoretical background - Chapter 2: Analysis of production and business situation of Kinh Do Joint Stock Company - Chapter 3: Strategic direction and development solutions for Kinh Do Joint Stock Company to 2015 Kinh Do is a group consisting of many subsidiaries specialized in many sectors (confectionery, beverage and real estate, etc.) Here, we only focus on confectionery For the purpose of information confidentiality, we could access only financial information of only two financial years, namely 2008 and 2009 With limited knowledge, condition and capability, the report can't help avoiding errors Your consideration is highly appreciated CHAPTER 1: THEORETICAL BACKGROUND OF THE ENTERPRISE STRATEGIC PLAN 1.1 CONCEPT OF STRATEGY AND STRATEGIC PLAN 1.1.1 Concept of strategy Concept of strategy has appeared for a very long time, starting from military sector At present, there are many different concepts of strategy: According to Pred R David: "Strategy includes means to achieve long-term objective" According to Haroid Kooniz and other authors in the work titled "Key issues in management", strategy is an action plan aimed at achieving specific objectives Main strategies of an organization contain objectives and commitments on the resources to achieve such objectives and main policies to be complied with while using these resources According to Alfred Chandler: "Business strategy covers the assignment of basic long-term objectives of the enterprise, concurrently choosing action method or process and distributing resources to carry out such objectives" According to Dr Nguyen Thi Lien Diep: "Strategy is a general action plan towards carrying out the set objective Strategy is not aimed at outlining specific way of achieving objectives because this is the task of numerous assistance programs and other functional strategies Strategy only creates frame to guide the thinking and action" 1.1.2 Strategic administration - Strategic administration is the process of researching present and future environments, planning objectives of the organization, putting forth, organizing, carrying out and checking the implementation of decisions to achieve such objectives in the present environment as well as in the future environment 1.1.3 Role of strategy for the enterprise - Strategy determines the existence and development of the enterprise, thus enabling the enterprise to develop in a sustainable manner - Strategy is a basis to determine specific production and business targets and measures such production and business result - In general, strategy includes three groups of factors: + Group of factors related to environment + Group of factors related to reality and implementation method of the organization + Group of factors related to the activities of the organization - Corresponding to these three groups of strategy, according to Dr Nguyen Thi Lien Diep in the work titled "Strategy and business policy", we have three different approaches in strategic administration: + Environmental approach: Strategic administration is a determination process to connect internal ability of the organization with opportunities and threats of the external environment + Objective and method approach: Strategic administration is part of long-term decisions achievement administration activities for the organization + Action approach: Strategic administration is the consideration in the present and future environment, creating objectives of the organization, making decisions, carrying out such decisions and controlling the decision implementation, achievement of objectives in the present and future environment 1.2 BUSINESS STRATEGIC ADMINISTRATION PROCEDURE Diagram 1.1: Strategic administration process Determine vision and mission of the organization Analyze external environment Analyze internal environment Determine strategic objectives Formulate strategy: At Company level At business level Functional level International business Plan and allocate resources Put strategy into action and achieve the integration Structure organization and control 1.2.1 Step - Agreement on strategic plan, determination of mission and orientation objective of the enterprise: - Agreement on strategic plan: Means the mutual cooperation and assistance between strategists and the persons involved in strategic implementation so that: + The persons involved in strategic planning will understand more clearly about the established strategies and can carry out easily 10 APPENDIX 1: CLASSIFICATION OF CANDY AND CAKE PRODUCTS Candy and cake is divided into the following groups: Candy group: is divided into 05 groups a Hard candy: Feature of this type of candy is hard, brittle and formed in glass state When using it, people would refer to “hold in their mouths” rather than to “chew” The candy has got low content of nutrient, because natural materials are used little but smelling flavour Hard candy can be shaped under modeling form or moulding form Typical flavour of hard candy: + Fruit smell (flavouring) + Caramel smell: Including main smells, milky caramel, chocolate and coffee + Peppermint smell, ginger smell, tea smell, cinnamon smell, liqourice smell… (originated from herbs) Typical state of hard candy: + Normal hard candy: clear, hard, brittle + Wafer candy: Wafer, brittle because of air foam in the candy And make the colour of the candy opaque and different from other hard candies, this candy is chewable + Core hard candy: this candy is poured with core inside Smell of core can be fruit, chocolate, wine… Fruit core can be taken from fruit juice with a lot of vitamin b Soft candy: Feature of this type of candy is soft, glutinous, users often “chew” This candy can use natural materials, so there is a lot of vitamin inside Typical flavour of soft candy: + Fruit chew: This flavour can be combined, for example: Combine among 01 fruit chew and yogurt, fruit chew and milk + Caramel candy: This is a popular type of soft candy, also including main types: milky caramel, chocolate and coffee c Jelly and Gum candy This type of candy has quite high humidity People use different gels to create it: Galatin, Pectin Agar, Gum, Arabic, converted starch Features of this are glutinous, pliable, normal forms are animal with plentiful colours… d Nougat and Mashmallow candy This candy has soft and pliable state as soft candy However, comparing with soft candy, nougat candy is more wafer and usually added some types of grains, such as: peanut, walnut, almond, sesame… This requires high techniques, especially, it must keep added grains brittle and avoiding oily e Chewing gum candy: Different feature of this candy compared with those of above types of candy is just to chew but swallow Flavours of this are usually peppermint, fruit smell, cinnamon smell… This candy can be classified into 03 types, namely blown cake, non-blown cake and syrup core candy The blown candy can be blown to turn into bubble, main users are children Cake group a Biscuit cake Formation method of biscuit cake is moulding, creating to the cake hardness and brittleness Sometimes, people add some vitamins and minerals to increase nutritional value to it, such as calcium cake, vitamin B cake, sesame cake… This type of cake can be inserted cream with different flavours, such as fruit, chocolate, coffee… or covered with chocolate outside or lined by chocolate inside b Cookies cake Formation method of cookies cake is pushing and kneading This cake has much sugar and fat, more wafer and softer than biscuit cake The cake can be added some fruit jam and core cookies (normally, it has got fruit smell or chocolate smell) c Crackers cake - Main ingredients are wheat flour, fat and salt There is almost no sweetener left inside Sometimes, people sprinkle sugar on its surface This cake can be inserted cream Depending on content of salt use, the cake is salty or bit salty Bit salty cracker cake is used for breakfasts with milk or for vegetarians d Wafer cake - This wafer cake has got a lot of layers and inserted with cream or tube, stick… shaped e High wafer cakes - This cake has got a lot of air foam with low density such as sponge cake, ChocoPie, Layer cake… - This is called as fresh cake if not being packed in swapper, is produced by hand, shortterm storage time, can be decorated with cream and fixed ancillary materials… - If being produced by industrial method and packed with long-term storage time, it is called as layer cake and can be inserted cream or covered with chocolate f Bread and sandwich cake, snack cake - Brittle and wafer state, the cake is shaped by cutting, rolling and pushing The pushing can create complicated and plentiful shapes Difference from other types of cake, other than made from wheat flavour, snack cake, it can be made from corn meal, potato powder The cake is usually marinated with unique flavours, tapioca, such as seafood, baked lobster, onion flavour … h Moon cake - This is a cake bringing Oriental feature just in service of Mid-autumn festival Fried potato: - Thin pieces of potato are fried and marinated with flavours Grain snack: - Some types of grain or fruit are fried and dried and packed at same method to snack cake, normally it is peanut, roasted corn, green pea… Chocolate and relevant products Typical regional groups of candy and cake APPENDIX 2: ITEMS WILL BE REDUCED IMPORT DUTY AT BEGINNING OF 2007 No Item Reducing level compared with current one Flower, bonsai Reduce 25% Some vegetables (eggplant, mushroom,, chili ) Reduce 40% Tea Reduce 20% Roasted corn and grains Reduce 40% Some vegetable oils Reduce 20-40% Processed meat (tinned…) Reduce 20% Types of candy and cake Reduce 20-30% Beer Reduce 20% Cosmetics with various types, soap Reduce 20-40% 10 Plastic household items Reduce 20% 11 Newsprint Reduce 12% 12 Other types of paper, cartoon Reduce 10-20% 13 Garment Reduce 63% 14 Footwear, hats with various types Reduce 20% 15 Tiled brick Reduce 17% 16 China ware Reduce 17-20% 17 Glass Reduce 10% 18 Thermos flask Reduce 17% 19 Precious metal, stone, pearl jewelry Reduce 25% 20 Some metal products (chain, metal pipe, hand- Reduce 15-40% held tools…) Reduce 20% 21 Electric fan Reduce 20% 22 Water filter Reduce 20% 23 Some types of battery Reduce 10-17% 24 Main motor spare parts Reduce 25% Resource: http://www.mof.gov.vn/Default.aspx? tabid=612&ItemID=38660 APPENDIX 4: CUSTOMER SURVEY FORM (customer demand and assessment of Kinh Do product compared with same those) Dear distinguished customers, In order to meet the market demand at highest level, our Company organizes to survey the customer demand and taste of Kinh Do candy and cake products compared with same those to have base to build strategy and set out resolution to develop production and business in coming time Please spend your valuable time to select appropriate answer you think Your opinion will be kept confident Your contributive opinions would be highly appreciated Instructions for answering questions: Please cycle round to your selected answer - Please answer all questions to have valid form - Agreement level will increases from to Of which, is “absolutely disagreement” and is “absolutely agreement” Please tell to me which customer group does you belong? Agent of Kinh Do Retailer Wholesaler Please, other Kinh Do products, which other products you sell (of competitors of Kinh Do) No Yes Please tell to me which consumption area does you belong? Ho Chi Minh and Easter South Vietnam West region Central region North region 4 Please tell to me what is your opinion about quality of Kinh Do products? Opinion Agreement level Kinh Do product is more delicious than same one Kinh Do product is more aromatic than same one Kinh Do product is stored better than same one MH 4 5 Please tell to me what is your opinion about price of Kinh Do products? Opinion Price of Kinh Do product is Agreement level MH 7 higher than same one Price of Kinh Do product is lower than same one Please tell to me what is your opinion about model and wrapper of Kinh Do candy and cake? Opinion Symbol on its wrapper is easer to remember than same one Its wrapper is more designed than same one Colour on Kinh Do wrapper is more attractive than same one Kinh Do product is more diversified on quantity than same one Kinh Do product more diversified on type than same one Agreement level MH 1 2 3 4 5 6 7 10 11 12 13 Please tell to me what is your opinion about distribution channel of Kinh Do candy and cake? Opinion It is easy to find to buy Kinh Do products than same one At anywhere, I can find to buy Kinh Do product Agent of Kinh Do has got other competitive brands Agent of Kinh Do is place at crowed areas (convenient) All agents in the country sale Kinh Do product Agreement level MH 14 1 2 3 4 5 6 7 15 16 17 18 Please tell to me what is your opinion about branch of Kinh Do candy and cake? Opinion Agreement level I absolutely trust when buying Kinh Do product When saying about candy and cake, I always think about Kinh Do product I feel secure when buying the product printed Kinh Do logo It is easier to realize Kinh Do branch than one of other competitors MH 1 2 3 4 5 6 7 19 20 21 22 Please tell to me what is your opinion about customer care of Kinh Do? Opinion I am very satisfied with customer service behavior of Kinh Do personnel I am very satisfied with claim settlement of Kinh Do My claim is settled in time Agreement level MH 23 24 25 10 Please tell to me what is your opinion about advertising, promotion program of Kinh Do? Opinion Agreement level MH Promotion form of Kinh Do is more attractive than other brand Promotion form of Kinh Do is better than other brandDo usually advertises than other brand Kinh 26 1 2 3 4 5 6 7 27 28 Kinh Do usually promotes than other brand 29 Thank for your valuable contribution! RESULT OF PROCESSING V-1 Frequency Valid Percent Valid percent Cumulative percent Tp.HCM Đông Nam 62 62 62 62 Miền Tây 13 13 13 75 Miền Trung 15 15 15 90 Miền Bắc 10 10 10 100 100 100 100 Total V-2 Frequency Valid Có Valid percent Cumulative percent 92 92 92 92 8 10 100 100 100 Không Total Percent V-3 Frequency Valid Percent Valid percent Cumulative percent >5 21 21 21 21 Từ 5-7 nam 76 76 76 97 3 100 100 100 100