LUẬN văn THẠC sĩ building business strategy in real estate for company 59, the ministry of defense

Overview of the research status

Real estate business has only grown since the early 1990s, but the business is now an important economic sector in the country Because real estate business is directly related to a tremendous amount of assets in terms of scale, nature and value of the aspects of the national economy Real estate shares account for about 40% of the country's wealth, while real estate-related activities account for 30% of total economic activity In developed countries, the amount of money that a bank lends through mortgages through real estate accounts for over 80% of the total loan portfolio Therefore, real estate investment and development plays an important role in transforming assets into abundant financial sources for socio-economic development, especially development investment the infrastructure of the economy

Due to the above reasons, many researches related to this field have been published

Below, I would like to mention some case studies:

 Competitive environment of real estate sector - strategy of Binh Chanh Construction Investment Shareholding (BCCI) for the period of 2010 - 2015; Author’s group of the University of Economics Ho Chi Minh City

In this study, the authors focus on the real estate market in Vietnam when Vietnam becomes an official member of the World Trade Organization The real estate market gradually followed the trajectory, the real estate market of Vietnam from the non-ranked transparency index has risen in the top of the transparent market Commitment to WTO accession has helped real estate developers such as Savills, Collier, CBRE and others develop In addition, the author analyzes competency and, more importantly, analyzes the SWOT matrices of Binh Chanh Construction Investment Shareholding to point out strengths, weaknesses, risks and external challenge This will help the company to discover and gain a competitive edge in the real estate market However, the authors have not evaluated the construction of real estate business strategies in the company so the solutions that the authors have not put into practice the situation of the company

 Preparation of a real estate investment strategy at Vinapol Joint Stock Company; Cao Xuan Cuong (2010)

In the implementation of the research, the author has achieved the following objectives: systematizing the theoretical basis of real estate investment strategy and assessing the current ability of the business, explore the investment opportunities on real estate market and conduct analysis of the opportunities for challenge Based on the theory of the author applied the strategy of real estate investment of Vinapol Joint Stock Company in the next 10 years The author then proposed to develop solutions to effectively implement the established strategies In addition to the above mentioned objectives, the research still has limitations, including the author has not conducted external matrix analysis and internal matrix analysis, so the opportunities and challenges as well as strengths and weaknesses that the author analyzes in the SWOT matrix is sketchy and undetailed

 Real estate business in Vietnam, current situation and solutions; Nguyen

In his study, the author mentions the following main contents such as general information on real estate and real estate business, rules of real estate market, relationship of real estate business with real estate other business, experience in real estate business in a number of countries in the world from which to draw lessons for Vietnam At the end of the study, the author proposed solutions to promote real estate business However, due to the author's research on the macro level, the author has not built a real estate business development strategy based on the strengths, weaknesses, opportunities and challenges of each application The author of this book is just learning about the experience of countries in the world to apply and business strategy in Vietnam

 Establishment of a strategy for the development of the Company 59 of Ministry of Defense by 2015; Ngo Vinh Tu (2007), master thesis,

University of Economics Ho Chi Minh City

In this essay, the author has codified the rationale for business strategy in general and has come up with strategies:

• Strategy to maintain and increase market share

• Strategy for enhancement of competitiveness

• Strategy for development of new product

In this study, the author focuses on developing a joint development strategy for the Company 59 of Ministry of Defense, not to delve into the real estate business strategy In addition, the 2007 context when research is outdated and needs more adjustment to suit the current context

Accordingly, after studying the previous works, the author will synthesize the success of the works that continue to study the “gaps” to complete the subject in his research.

Objectives of the research

General objectives

Set up a real estate business development strategy at the Company 59 of Ministry of Defense for the five years from 2018 to 2022.

Specific objectives

(1) Systematize the theoretical basis for strategy and strategy development

The concept of real estate business strategies, factors influencing the construction business strategies of real estate

(2) Analyze internal and external factors affecting the real estate business of the Company 59 of Ministry of Defense

(3) Make proposal of strategy for real estate business development at Company 59 of Ministry of Defense and propose several conditions to implement the strategy.

Subjects of the research

Business strategy in real estate for Company 59, the Ministry of Defense

Scope of the reseach

For space: The study was conducted at the Company of Ministry of Defense For time: Data was collected over the last five years (2014, 2015, 2016, 2017); The given strategy is valid until 2022

Focus on real estate business strategy Real estate business activities are understood to include the activities of buying and selling land and assets on land, investment activities for lease, basic construction activities.

Methods of the research

Use the case study method at the Company 59 of Ministry of Defense; thesis mostly uses qualitative methods In addition, use the method of comparison and synthesis

 Secondary data collection: collect from books, newspapers, magazines, statistical reports of the industry Books on strategic management This is the basis for the author to build the theoretical framework in Chapter 1 Data from the company, from departments and reports on the performance of the Company 59 under Ministry of Defense and others

 Primary data collection: The author combines a variety of methods including in-depth interviews with experts and sociological survey methods

In-depth interview methodology: Expert method is used to interview experienced professionals in the field of real estate and management of Company

59 - Ministry of Defense The purpose of the expert interview is to get expert opinion on the real estate business environment today: the internal environment, the external environment, the competition and others In addition, the interview with the management of Company 59 - Ministry of Defense to see the real status of the whole picture of the company's activities in the field of real estate In addition, specialists in strategic management are instructors, strategic consultants and others

Sociological survey method (questionnaire) with experts and board of company, customers The number of votes is 100, the number of votes is 87 votes

Questionnaires were divided into 2 groups:

 Group 1: Company leaders and experts: 33 questionaire forms

 Group 2: Corporate customers: 54 questionaire forms

The thesis is structured into three chapters, namely:

INTRODUCTION Chapter 1: Theoretical basis of Business Strategy in Real estate Chapter 2: Current Situation of the Company's Real Estate Business Strategy at Company 59 of Ministry of Defense

Chapter 3: Building Business Strategy in Real estate for Company 59 of the Ministry of Defense at the stage of 2018-2022 and recommendations

THEORETICAL BASIS OF BUSINESS STRATEGY IN REAL

The general theories of business strategy

1.1.1 Concept of strategy and business strategy

The term of strategy is derived from ancient military art Borrowing from military terms, the term “strategy” has been used quite commonly in the economic life of the macro as nation, government and others as well as micro as economic organizations Actually there are many different views on strategy Depending on the purpose of research and in different periods of economic development, economists have different views on strategies However, in terms of business research, most economists agree on the concept of strategy with business strategy

With a traditional approach, as illustrated by Alfred Chandler (1962): “The strategy involves setting the basic long-term goals of the business and applying a series of actions as well as the division Necessary resources are needed to achieve these goals” Under this approach, the strategy is defined as a system of long-term goals, key policies and measures on business production, finance and human factor-based solutions to help businesses grow Take a new step on the substance However, along with the development process, today's strategic concept has also changed

With a modern approach, according to McKinsey (1978): “Strategy is a series of activities designed to create sustainable competitive advantage”, or Johnson &

Scholes (1999): “Strategy is the direction and the scope of an organization in the long run to gain competitive advantage for the organization by formatting its resources in a changing environment to meet market demand and meet the expectations of the parties” With the new approach, the strategy is a system of perspectives, goals and basic objectives and solutions, policies for the best use of resources, the advantages and opportunities of enterprises not only aim to achieve the objectives but also bring favorable conditions such as competitiveness, different positions in order to create competitive advantage and sustainable development for businesses

Theoretically, most economists in the world have unified business strategies with business development strategies Accordingly, business strategy or development is a part of the overall strategy of the business, including the components of the secondary strategy: marketing strategy, financial strategy, research strategy and development and others Through business strategy will establish the most favorable conditions to create competitive advantage for businesses So it can be easy to understand, Business strategy is to synthesize long- term goals, policies and solutions of business production, finance and people to bring the business operations of a business state higher in quality Can understand business strategy is a general program of action that the business outlined to achieve the objectives in a certain period

- Business strategy is the overall strategy of the business that determines the objectives and business direction in a relatively long, five-year or ten-year period and is fully understood in all production activities to create favorable conditions and contribute to creating a competitive advantage, ensuring the sustainable development of enterprises

- A business strategy is an outline of a business's future, including goals that the business must achieve as well as the means needed to accomplish those goals; meanwhile, in reality, the business shall combine strategic and situational objectives, strategy and tactics, short-term and long-term This will ensure the business efficiency and overcome the deviations caused by the strategy

- Any decision that is important in the process of formulating, deciding, implementing, and evaluating, adjusting the strategy must focus on the highest leader of the business This ensures the accuracy of long-term decisions, for confidentiality of information

- Business strategy is always built on the basis of comparative advantages This requires that in the process of developing the strategy, enterprises must properly assess their production and business situation in order to find strengths and weaknesses and regularly review the internal factors when implementing the strategy

- Business strategy is primarily and primarily built for business lines, specialized business areas, traditions, strengths of enterprises This puts the business in the right place, must choose and implement strategies as well as engage in business in the market has prepared and strength

1.1.3 The role of business strategy

The formation and implementation of business strategy is extremely important to the existence and development of the business The role of business strategy for enterprises is shown by Ngo Kim Thanh (2011) with four main roles:

- Business strategies help businesses clearly see their goals and direction in the development of their business It shows business executives how to look at and determine where the organization goes and when it will achieve the desired results

- The analysis and planning for business strategy not only helps businesses clearly see their strengths and weaknesses, but also identifies the opportunities and challenges that occur in the present and in the future From there, businesses can take advantage of the opportunities to grasp the opportunities, while preventing and reducing risks for businesses, helping businesses have the competitive strength to win the market

- The business strategy helps administrators use and allocate existing resources in an optimal way as well as effectively coordinate organizational functions to achieve common objectives

- The business strategy creates strong bases to help businesses proactively work out solutions to market fluctuations, as the basis for their R & D activities

According to Johnson, Scholes and Whittington (2008), the organization has different levels of strategy It is possible to distinguish at least three levels of strategy as follows: a Company-level strategy

The highest level is the company level strategy, which relates to the overall scope of an organization and how it creates added value for different parts of the organization (business units) This strategy may include issues such as the geographic scope of the business, the diversity of the product or service, and the distribution of resources between the different parts of the organization Company- level strategies may include mergers, acquisitions, and sales of businesses, decisions to join or withdraw from the market In general, business-level strategies are concerned with the expectations of owners - shareholders and the stock market The form of a company-level strategy is reflected in a clear or implicit statement about the 'mission' that reflects that expectation Understanding the company level strategy is important, as specific, defining the scope of business as the basis for other strategic decisions At the company level there are strategies that include:

By pursuing this strategy, businesses are trying to exploit every opportunity they have for existing, currently market-driven products or services, provided by better performing companies what they are doing Growth strategies include:

+ Centralized Growth Strategy: A strategy that seeks to increase market share of existing products or services in existing markets through strong marketing efforts Specifically:

 Market entry strategy: It is a strategy to find ways to grow by penetrating into new markets to sell products and services currently being produced or supplied by enterprises

 Market development strategy: It is a strategy to find ways to grow by penetrating into new markets to consume products and services currently being produced or supplied by enterprises

 Product development strategy: A strategy to find ways to grow through the development of new products and services for consumption in markets where the business is operating

 Vertical integration: A strategy of self-sufficiency in production and supply of inputs to the production process or the self-

 Horizontal integration: A strategy to find ways to grow through mergers, acquisitions or joint ventures with competitors

 Diversification: is the diversification into new business that is related to current operations or business activities by analogy of production, marketing, technology and others

 Diversification is to seek the methods to grow by targeting new markets with new products that are technologically unrelated to the products that businesses are producing

Stability strategy is the strategy of maintaining business scale as well as stability in the strategic period

 Business field is slowing down or slowing down

 Expenses for market expansion are too high to be effective

 Scale of small business, weak potential

 Enterprises go deep into specialization serving narrow markets

 Encounter unusual fluctuations in the market

 Cost-cutting strategy: This is a temporary short-term strategy aimed at reducing ineffective parts or temporary problems related to environmental conditions

 Strategic return on investment: This strategy applies when the enterprise sells or closes one of its businesses to fundamentally change its activities, recover investment capital The resulting return on investment leads to the reallocation of resources to revitalize businesses or create new business opportunities

 Harvest strategy is a strategy that seeks to maximize the flow of money, without further investment

The process of building business strategy of enterprises

As described in section 1.1.1, business strategy plays a very important role in the existence and sustainable development of all enterprises in the medium and long term Building a business strategy, therefore, is not just a sketch of a business's future image based on the feelings of the business leader but requires a completely rational approach , scientific and technical According to Ngo Kim Thanh, the process of building business strategy of business is divided into 7 steps, this process is closed and continuous

Figure 1.1 The process of building business strategy of enterprises

Source: Ngo Kim Thanh (2011); Strategic Management Course - National Economics University

1.2.1 Identification of the mission, the current business objectives of the business

The determining of the mission, the current business objectives of the business is an important step in the process of business strategy development of enterprises The formation of the mission of the enterprise not only ensures the consensus of common goals within the enterprise, but also helps the management have the basis to formulate appropriate goals, mobilize resources of business to achieve that goal At the same time, the mission statement will help managers have a basis for planning the most appropriate business strategy

According to Philip Kotler (2003): “The mission of a company is its manifesto for society, which proves usefulness and meaning in the existence of the

Identification of missions and objectives

Implementation of strategy Establishment of strategic methods

Analysis and selection of strategy

Inspection and evaluation of the implementation company to society” Thus, the mission represents the business purpose, the reason and meaning of the birth and survival, as well as the corporate social responsibility

It expresses important things, business contributions in terms of business and life;

Show the business motto of the business, the position of the business in the market and what the company committed to comply When building a mission, it is important not only to look at the desires of the owner or the leader, but also to look at the internal factors of the company's products and services and outside the company (customer needs, competitors and others)

If the mission is a corporate statement to society, then in order to pursue its mission, businesses must set business goals to identify the accomplishments that the business needs to achieve in the period Operation is relatively long (over a year)

Long-term goals are essential to the success of your business because they represent the results your business must achieve when pursuing its business mission When defining goals, businesses need to answer the question of what is the business of the business? In the goal we have to identify the business area of the business, the type of product or service that the business wants to provide to the market, identify the basic customer group, market demand The goal must contain the desires of the business to be externalized Establishing business objectives requires the following: specificity, consistency, measureablity, feasibility, challenging, and flexiblity

1.2.2 Assessment on the external environment of the business

Figure 1.2 Model of external environment analysis (business environment)

Business environment analysis is a process in which analysis and testing of various environmental factors An analysis of the external business environment helps an organization see the significant opportunities and threats an organization faces Managers can then develop strategies to take advantage of opportunities and avoid or reduce the impact of threats posed by the business environment The scope and content of the business environment analysis include: macro-environmental analysis, micro-environment (also called sectoral or operational environment) and internal environment is the enterprise internal environment)

External environment of business, region and worldwide

10 Government a Analysis on the macro environment of the business

The macro environment consists of various factors that indirectly affect the operation of an enterprise through its influence on the factors of the industry In fact, there are many different models that support macro-economic analysis of the business, the most widely used of which is the PESTEL model This is an effective and simple tool used in situational analysis to determine the forces that impact primarily from external environmental factors (macro environments) that may affect the organization These forces can create both opportunities and challenges for the organization The macroeconomic factors that the PESTEL Model mentions include: Political Factors (P), Economic Factors (E), Social Cultural Elements (S), Public Factors Technology (T), Elements of Ecology (E), Legal Elements (L)

Figure 1.3 PESTEL model of macro environment analysis

- Economic Factors: In fact, economic environment factors have a great influence on businesses and are most often unpredictable, among the macroeconomic factors The movement of economic factors always contains both opportunities and challenges for businesses Therefore, companies often pay attention to this economic factor through economic variables such as the growth

BUSINESS trend of GDP, economic development, interest rates, exchange rates, inflation, Balance of payments, monetary and financial policies and others

- Political and legal factors: In fact, the elements of the political and legal environment can have an impact on the business performance of the business in many different directions They can create opportunities or obstacles, or even threats to the business Therefore, in the process of developing the strategy, companies often evaluate the direction and stability of the political system, the law in the area where the company is operating These include political stability, a system of views, policies, regulations, rules, procedures, business procedures, import/export, taxation, labor, on the environment, on social order and others

- Cultural and Social Factors: In fact, in the medium and long term, the factors of the cultural and social environment have a direct impact on the consumption trend of the society The cultural and social environment includes elements such as population structure, customs, beliefs, values, attitudes, views on consumption and lifestyle of the people in society work

- Technological factors: In fact, this is a direct, immediate and large impact on the business strategy of many enterprises, especially business enterprises in high technology fields The introduction of new technologies will increase the superiority of the replacement product, the product is more complete, the product price becomes cheaper and more competitive Therefore, the strategic planning process should take into consideration the rapid changes in the technological environment and invest heavily in research and development to take advantage of the advantages that technology brings for enhancing the competitiveness of enterprises

- Ecological factors or natural environment: one of the important factors in human life, as well as an input source for many industries In fact, the elements in the natural environment are considered less volatile However, negative trends in the natural environment, such as global warming, loss of biodiversity, depletion of renewable resources, increased environmental pollution, post and others has become a challenge threatening the movement of enterprises Therefore, in the process of strategic planning, enterprises must properly analyze and evaluate the opportunities and challenges that the natural environment affects the production and business activities of enterprises b Analysis on the micro environment of the business

The micro-environment or sectoral environment is an environment that is closely linked to the performance of the business, and determines the investment environment, competitive strength, and profitability of the industry According to Michael Porter's (1979) Competitive Force model, the context of a business environment is influenced by forces:

Figure 1.4 Model 5 Competitive Force M Porter

Source: M Porter’s Five Forces (1979) Harvard Business Review

- Competition among competitors in the industry: The first force that

M Porter mentions in the model is the competition among competitors in the industry Competitors are constant pressure and direct threats to the company The increasing competition of existing companies in the industry threatens the company's profitability, survival and development Because of this competition, the company has to increase its investment costs in order to differentiate its product or service from accessing the market or reducing its cost Therefore, the process of

Competition among competitors in industry

The concept of real estate and property characteristics

So far most countries in the world have classified properties according to Roman law, ie classifying properties as “real estate” and “estate” So real estate is not only land, wealth in the earth, but also everything created by human labor attached to land such as construction works, trees and others For our country also approached the way to put such a problem, the Civil Code has defined “real estate is non-movable property, including land, housing, construction works attached in combination with land, including assets attached to such dwelling houses or construction works; other assets attached to land and other assets as prescribed by law” (Article 181) Real estate has different characteristics compared to other goods such as fixedness, increasing value, individuality and value depending on the purpose of use and others In particular, fixedness has modification between real estate goods and other goods This feature requires trading and transaction management practices different from other commodity markets With other goods, the seller, the buyer can easily bring the goods to any place but with real estate, the owner of it must move to the property Real estate goods can not be marketed (markets, supermarkets) for display as other goods, which must be introduced through description by model, image or design drawings The fixed property also gives the property the “location” and “localism” very high At the same type of property, but in different locations are different value For the property of the same size Likewise, the same type of real estate but large urban real estate is much more valuable than real estate in small urban areas The fixedness poses the problem of regulating the real estate market differently from other commodity markets, with normal goods being able to adjust supply and demand by moving goods from one place to another But with real estate must adjust the supply - demand through the forecasting and planning in accordance with conditions In addition, real estate has other characteristics, such as individuality and scarcity, especially land, durability, affect each other and so on

Real estate business strategy is the way and method of competition of real estate business enterprises It specifies the type of real estate product or service that the business undertakes, the size of the business, the resources, the profitability as well as the development prospects of the business It ensures the business plan does not go astray to help businesses have a firm and secure position in the real estate business, actively adapt to the competitive environment

1.3.2 Characteristics of real estate business

 Activities are sectoral and regional All business activities must be related to the location of the property, each location of the different property will bring income to the owner and trader different interests Businesses in different locations and regions are different, and the business model of the place can not be imposed elsewhere The surrounding environment is important for every property value

 Large and long-term capital investment Real estate has long-term use, each real estate will have the physical life and economic life Economic life will end when the market conditions and operating conditions are normal, but the cost of using real estate is equal to the benefits from the property In the field of real estate business requires large capital investment, during the long-term investment Firms with capital advantages are highly competitive

 Sensitive activities, strongly influenced by laws and policies The state manages all real estate from land to buildings and assets on land through laws such as land law, construction law, business law and others

 Multi-sectoral operations and specific business activities One of the characteristics of the real estate market is the imperfect market, incomplete information for market participants and slower supply response Bridge complex, subject to many influences of spiritual factors, habits, habits and others

1.3.3 Impact of real estate business characteristics on building business strategy

The characteristics of the real estate industry mentioned above lead to the development of business strategies, managers need to study the business time, with the thesis entitled “Building business strategy in real estate for Company

59 of the Ministry of Defense” on the basis of the theories mentioned in 1.1.4 At the level of strategy, business strategy is defined as business unit level strategy.

CURRENT SITUATION OF THE COMPANY'S REAL ESTATE

About the Company 59 of Ministry of Defense

2.1.1 Introduction of Company 59 of Ministry of Defense

Company 59 is under the Ministry of Defense The Company has a wide scope of activities in the country, has many years of experience in the field of construction, has implemented many large construction projects of the State and the Ministry of Defense

 Name of the company: Company 59

 Type of ownership: state-owned enterprise

 Company 59 is established under Decision no 628/1999/QĐ-BQP dated 12/05/1999 of Minister of Defense on the basis of consolidation of company

 Head office: Floor 10 th , no 9 Dinh Tien Hoang, District 1, Ho Chi Minh City

 Hanoi branch: 36A Ly Nam De – Hoan Kiem district – Hanoi

 Subordinate units: Factory 159, factory 259, factory 359, factory 559, Department of domestic business

Table 2.1 Major business lines of the company 59

1 Construction of houses of all kinds

2 Construction of other civil engineering works

3 Construction of railways and road projects

9 Real estate business, land use rights owner, owner or rent

10 Consulting, brokerage, auction real estate, auction land use rights

11 Architectural and engineering related activities in detail: Architectural design of civil and industrial projects

12 Wholesale of machinery, equipment and spare parts

13 Wholesale of metals and metal ores

14 Rental of machinery, equipment and other tangible goods

16 Installation of water supply, drainage, heating and air conditioning

17 Installation of other system construction systems

18 Production of building materials from clay

19 Production of concrete and products from cement and plaster

22 Wholesale materials and other installation equipment in construction

23 Exploitation of stone, sand, gravel and clay

24 Installation of machinery and industrial equipment

26 Restaurant and catering services for mobile

Source: Business Registration Certificate - Company 59

A number of typical works that Company 59 has implemented in the past (details in the Appendix)

Table 2.2 List of typical works have been implemented

No Name of works Contract value

Source: Profile of construction experience, company 59 2.1.2 Organizational structure of company 59, Ministry of Defense

Source: Department of Personnel Organization - Company 59

The organizational structure of the company consists of the Board of Directors and departments Due to the specific characteristics of the industry, the Company 59 requires a team of engineers, bachelors in many professions such as: construction engineers, architects, engineers of construction machines, economics bachelors, business management foreign languages and others Most of technical staff and management staff are trained in domestic and foreign universities, have strong political wills to receive and fulfill all assigned tasks

Table 2.3 List of capacity of technical workers

No Business fields Quantity Notes

6 Civil and industrial electrical engineer 14

Source: Department of Personnel Organization - Company 59 (2016) 2.1.3 Functions and missions of the Company 59 under Ministry of Defense

Company 59 is specialized in the field of construction, investment consulting and business development housing fund In addition, the company has the right to do business in other areas depending on the capacity at the time allowed for implementation

As a state-owned enterprise under the Ministry of Defense, in addition to fulfilling its obligations to the state as other enterprises, the Company 59 also fulfills its defense obligations such as securing jobs for public employees Defense workers, creating a source of revenue for the defense budget Each unit was recruited as an engineering brigade, ready to switch to combat service during a war

The company has the right to organize production and business activities permitted in the business license

The Company is responsible for the efficient use of funds in cash, assets and land funds allocated by the State and the Ministry of Defense To strictly comply with the provisions of law and the Ministry of Defense To fulfill tax obligations and other financial obligations as prescribed Annual financial reports are approved by the finance department of the higher level A part of the remaining profits after payment of enterprise income tax shall be transferred to the defense budget

2.1.4 Objectives and core values of the company 59 under Ministry of Defense

 Core value: Safety, product quality is top priority

 Objective: To develop and develop into a multi-disciplinary company, gradually transforming into a major player in the field of project investment

2.1.5 Business results of the company 59 under Ministry of Defense

A summary of the company's financial data for the past three years (2014,

Table 2.4 Summary of financial data

2,2 Analysis of the external business environment of company 59, Ministry of Defense

2.2.1 Macro-environmental analysis a Economic factors

Vietnam economy 2017 is in the period of recovery after the economic crisis, in the first 9 months of 2017, according to the General Statistics Office (2017) GDP increased 6.41% over the same period last year, quarter increased by 5,15%; second quarter increased by 6.28%; The third quarter (estimated) increased 7.46%, This confirms the timeliness and effectiveness of the solutions issued by the Government, Figure 2.2, reflecting the growth of Vietnam's GDP in the first half of

Figure 2.2 Vietnam's GDP over the years

Source: Vietnam Economic Statistics 2017, GSO

Up to 15/9/2017, the budget was over 65,2 trillion VND Specifically, total state budget revenue was estimated at 786.3 trillion VND, equaling 64.9% of the year estimate,

Figure 2.3 Total state budget revenue 2017

Total state budget expenditure from the beginning of the year to 15/9/2017 was estimated at 851,5 trillion VND, equaling 61,2% of the yearly estimate, Total state budget expenditure from the beginning of the year to 15/9/2017 was estimated at 851.5 trillion VND, equaling 61.2% of the yearly estimate

Consumer price index (CPI) in September 2017 increased by 0.59% over the previous month Within 11 major commodity and service groups, nine groups had a September price increase over the previous month, with the highest increase for the education group with 5%

The average consumer price index in the first nine months of 2017 rose by 3.79% over the same period last year

Crude oil Import and Export balance

Core inflation in September 2017 increased 0.08% over the previous month and increased 1.32% over the same period last year, The average inflation in the first nine months of 2017 rose 1.45% over the same period last year

In 2017, the real estate market is quite vibrant, especially in the segment of residential real estate, construction of cheap houses and land According to statistics from the Ministry of Construction (2017), in the first 6 months of 2017, there were 8,200 newly established enterprises, 2,300 enterprises in the real estate sector

Accordingly, every day there are 13 enterprises in the field of real estate was established new

Along with the number of businesses increased strongly, real estate market in the first 6 months also witnessed a massive influx of foreign capital Specifically, JLL report shows that real estate market has attracted $19.2 billion FDI, up to 54.8% over the same period last year Over the past six months, the GSO data show that the real estate business rose by 3.86% over the same period last year This is the highest growth rate in the last five years, contributing 0,21% to the growth of Vietnam's economy in 2017

According to the CIA World (2017), Vietnam is one of the countries with rapid urbanization In a regional comparison, Vietnam has a low urban population and is in the process of moving a large population from rural to urban areas, Urbanization is happening at a rapid pace

NOTES The speed of urbanization in Vietnam has increased rapidly

Figure 2.6 Speed of urbanization in Vietnam

With the pace of urbanization, the number of new families has grown rapidly, There are 58,000 in Ho Chi Minh City and 42,000 in Hanoi each year Along with the demand for new accommodation, the need to upgrade the old place is also great, Currently, about 27% of Vietnamese urban residents live in low-quality housing in Vietnam, and this figure may increase in the coming years

Figure 2.7 Real estate market in Vietnam 2016

The number of new households, 2016

Source: Savills Consulting and Research team

Demand source of sustainable apartment

Market size in 2016 Domestic market (Ho Chi Minh City and Hanoi)

Ho Chi Minh City and Hanoi to be leading regional markets

Primary transaction - Left Transaction/1000 people - Right

Currently, the real estate market has almost no longer take profits from the

“Investment in flat surfing”, instead the high rental rates are creating a segment of the rental market is extremely exciting Currently, Hanoi and Ho Chi Minh City are leading the region in terms of rental yield With the positive changes of the Vietnamese economy in general and the real estate market in particular, the opportunities for businesses operating in this field are huge

For company 59, the explosion of real demand in the real estate sector is a great opportunity for development, especially in the direction of supplying houses and apartments for two areas in Ho Chi Minh City and Hanoi Based on the real demand statistics, the company will design flexible pricing policies and flexible payment policies for individual and corporate customers to increase the competitiveness of their products In addition, as the above data show, the demand for hotels, resorts and resorts is also increasing and others, this is in line with the new direction of the company - opening more business resort construction and luxury hotel (Phu Quoc area, Nha Trang) Thus, the development, stability of the economy and the “real” demand for housing of the people is a great opportunity for the company 59 In the survey, among 33 votes to the group 1, 100% reviewed as a good opportunity for business, for group 2 - customer group, 42/54 receipts agreed with the above statement b Political and legal factors

This is a very important factor for the company to survive and develop

Political stability is a strong asset for long-term investment in Vietnam

Analysis of internal environment of company 59, Ministry of Defense

Based on the theoretical background in Chapter 1 on resource analysis for the internal environment of an enterprise, there are three main factors affecting the internal environment of an enterprise: human resources, facilities and invisible resources

In the company about 700 employees contracted with social insurance and 2,000 seasonal workers Property in the real estate industry is characterized by large labor variations by size of works and by region Workers are often recruited at workplaces and fired after the works are handed over It is therefore important to maintain a stable framework of skilled workers in the development orientation of the company

Company 59 with 40 years of operation in the real estate industry has a staff of staff who have a good spirit and work closely with the unit As a military unit, inherited discipline in the military and formal rules in the work Officers holding key positions are qualified engineers and military personnel, the lead agency is the Ministry of Defense should have a link with the Department of Defense

The Board of Directors, heads of departments, factories, branches, supervisors of the construction site and assume equivalent positions are all graduates of the university, having seniority and experience in performing construction works, basic construction

Professional sales teams, familiar with the volume of customers are military cadres, officers, middle-income subjects Through the survey, the results showed

Figure 2.8 Survey the sales team through survey questionnaire form 1

With direct contact with the sales team, customer feedback is one of the most accurate and valuable measures for businesses Along with the above question, the survey results of customers as follows:

Figure 2.9 Survey the sales team through survey questionnaire form 2

Advantage is the military unit, this is also the weak point of the unit in the human work is the nature of personnel imposed from the top down, the powers of

Excellent Good Average Bad the company director is limited in personnel The organizational structure is lacking in flexibility In the survey panel of experts, the management also reflects this:

Figure 2.10 Survey qualifaction of management and leadership through survey questionnaire form 1 Source: Author 2017

Company machinery is not smooth operation, the relationship between departments is not good The key staff of the company is qualified and experienced, but their coordination is not good The management of the company also found that the level of management is still moderate and uneven among departments More than 50% of the votes cast here is a weakness of the company that needs to be overcome soon

Training is not focused In the last five years the company has not organized any classes to improve and update the professional level for staff Employees wishing to receive training pay 50% of the tuition fee This does not encourage employees to improve their own capacity According to the results from the survey of target group (1); New recruitment and training can also be seen as a weakness of the business when it has not received sufficient attention and merit of it Twenty- three percent of the respondents said that the average level of recruitment and training was low and medium

The salary and compensation scheme is not commensurate with the work done, the average income is 5.889,478 VND (2015) The procedure of signing labor

Qualification of management and leadership

Excellent Good Average Bad contracts and transferring the national defense staff is difficult, time consuming

This will be a risk not to attract talent and shortage of human resources in the coming years

Being an enterprise specializing in construction and installation activities, the technology line used is a unique unit for each project Not of mass nature

Machinery and equipment of the company is invested enough to execute high-rise buildings such as bridge tower, hoist, mixing equipment, construction machinery such as roller, bulldozer, excavator Quality assurance depends largely on the workmanship of the workers and the quality of the materials, less dependent on the quality of the machinery However, the layout of machinery and equipment must ensure the main technical parameters

The company has complete equipment for construction of architectural and transport works, with all specialized equipment for construction of high buildings

Equipment capacity is shown in appendix: List of construction equipment Both groups were interviewed, the survey yielded very positive results on the equipment, technology of the company

Figure 2.11 Survey of technological capacity in group 1

Equipment is mainly old equipment before 2005, investment in equipment renewal has not been implemented periodically due to lack of capital Besides, the construction equipment is not specialized, difficult to occupy specific market b Land

Company 59 is assigned to manage a large property that is land fund The total land fund allocated by the Ministry of Defense is 24,200 m2

Table 2.9 Statistics of the land fund allocated for management use

1 No 9 Dinh Tien Hoang, District 1, Ho Chi Minh

2 No 792 Nguyen Kiem, Go Vap District 3,500

3 No 26 Phan Van Tri, Go Vap District 2,000

4 No 6 Pham Ngu Lao, Go Vap District 3,000

5 No 5B Pham Ngu Lao, go Vap District 2,700

6 Trung My Tay ward District 12 10,000

7 145B Nam Ky Khoi Nghia, District 3, Ho Chi

Source: Company profile of Company 59 (2015)

This is a strength of the company 59 when the Ministry of Defense assigned management and exploitation of the land in districts 1, 3, 12 and Go Vap

According to the survey, it is found that both group 1 and group 2 exceed 50% The company is managed using land fund with favorable location to exploit This is considered one of the strengths of the SWOT matrix

However, the current exploitation has not fully utilized the real potential of this resource If used well will bring many effects, but otherwise would be a huge waste c Factory

Strengths: The auxiliary production area for main activities such as steel processing, carpentry, storage, parking in Ho Chi Minh City There is a system of temporary houses suitable for the installation of office and camp at the construction site

Weaknesses: The workshop area is not large enough and is well positioned for the development of pre-manufactured concrete products for the construction industry d Finance

The company always proactively develop business plans in line with the economic development from time to time The company's investment activities are highly effective in the current economic situation in Vietnam and in the world The company actively mobilizes all capital to serve the production and business tasks

The business results are higher than the plan, while equity is only 31% compared with the regulations

The capital allocated by the State is insufficient for the production and business activities, so the main source of capital is still the bank loan by way of collateral for the performance of construction contracts and advance sources of customers

The capital use efficiency of the company is relatively good, the bank interest expense is low In 2016, it only has to pay VND 15 billion (long term), short-term loans of VND 7 billion, interest payable in year 1.2 billion on the total revenue of 170 billion

Defining of the mission, goals, vision of the business

With the aim to promote the mission of core values of “Safety and quality is the first priority”, Company 59 has continuously built and accumulated trust with agencies, partners and customers inside and outside army The next road, Company

59 is determined to build and develop a leading real estate company in Vietnam.

Development of strategic options

From the results of external and internal environmental analysis, we have envisioned some of the opportunities and challenges in Company 59, as well as the current strengths and weaknesses that Company 59 is experiencing Through the SWOT matrix, it will enable the company 59 to formulate business strategies that align with the firm's position 59, review and select the most appropriate business strategies

Table 3.1 SWOT matrix proposed business strategy for Company 59

Developed as a leading real estate company in Vietnam

S1 Equipment and machinery meet the construction, interior design of residential civil works

S2 The company is managed using a land fund with a favorable location to exploit

S3 Ability to raise capital to expand production

S4 The company has a large, professional and effective sales team

S5 The company has built the brand for the non-military market

W1 The level of management of specialized departments is limited and uneven

W2 The recruitment and training of new staff is not good

W3 The investment cost for renovation of equipment is still low

W4 The method of annual planning is also bureaucratic

W5 Debt recovery from customers is slow

T1 The corruption, bureaucracy in the real estate industry T2 The bank tightens lending policies with real estate

T3 The trend of cooperation, trade, merger

T4 The change in technology application in the real estate industry

T5 Regulations and obligations of business units under the Ministry

T6 Real estate agents depend on sales agents, intermediary channels

ST1 Vertical integration growth strategy

ST2 Horizontal integration growth strategy

Law system, policies to support enterprises

O2 Economic growth has increased steadily People's incomes increase

O3 Preferential credit policy for military personnel

O4 Government is interested in investing in infrastructure development

O5 Demand for middle-class housing increased

Accordingly, through Table 3.1 on the SWOT matrix, we analyze the strengths, weaknesses, opportunities, and challenges to propose appropriate business strategies for the company There are, however, many opportunities for company 59 to take advantage of the company's competitive advantage over its competitors A number of suitable business strategies are drawn from the SWOT matrix, namely:

 ST1 Longitudinal integration strategy: It is a strategy of self-production and supply of inputs for the production process or the self-consumption of products Combining strengths from the ground, rough construction, interior decoration, strong capital company plus the ability to handle all work from the beginning to the final product In addition, the company has extensive sales team based on the brand has long established and prestigious in the market While other businesses are still struggling to depend on the unit or intermediaries (T6), the company 59 can completely build, develop and sell its own products myself

 ST2 Horizontal integration growth strategy is a strategy that seeks to grow through mergers, acquisitions or joint ventures with competitors In the context of a strong M & A trend, a number of real estate projects are on the verge of bankruptcy Real estate companies lack capital and operate in moderation (T3) Company 59 has a history of operating dozens combined with the prestige available and especially under the Ministry of Defense is entirely capable of acquiring other projects, real estate companies to increase resources and restructuring unfinished projects

 SO Product Development Strategies: A strategy that seeks to grow through the development of new products and services for consumption in markets where the business is operating Company 59 in addition to the products being offered can expand new products, such as complete interior furnishing packages instead of selling raw apartments, luxury vacation packages In the analysis Opportunities, O2, O3, O5 demonstrate the need and policy support for buyers of middle-class, large military apartments Combined with the strong elements of the company 59, the author proposed concentrating the strategy of developing apartments for middle-income and military personnel, officers.

Analysis and selection of strategic options

Based on the results of the SWOT matrix in Chapters 2 and 3, we can present a number of business strategies that are consistent with the mission and goals identified by Company 59 over the next five-year period However, in the context of limited resources, in order to focus attention on directing and mobilizing resources, among the available strategies, enterprises need to analyze in order to select a strategy best fit The QSPM matrix as introduced is used for this choice and decision The author conducted the survey for the group of experts and leaders of the company survey on the attractiveness of each strategy, the QSPM matrix below is the average result of 30 questionnaires collected (Note: results are rounded)

Table 3.2 Matrix quantitative strategic planning

AS TAS AS TAS AS TAS

Political situation is stable Law system, policies to support enterprises

Economic growth has increased steadily

Preferential credit policy for military personnel

Government is interested in investing in infrastructure development

Demand for middle- class housing increased 3 3 9 2 6 4 12

The corruption, bureaucracy in the real estate industry

The bank tightens lending policies with real estate

Trends in cooperation, mergers and acquisitions

The change in technology application in the real estate industry

Regulations and obligations of business units under the

Real estate agents depend on sales agents, intermediary channels

Machinery and equipment are met construction, interior design of residential civil

The company is managed using a land fund with a favorable location to exploit

Ability to raise capital to expand production 4 3 12 2 8 3 12

The company has a large, professional and efficient sales team

The company has built the brand for the non- military market

The level of management of specialized departments is limited and uneven

The recruitment and training of new staff is not good

The investment cost for renovation of equipment is still low

The method of annual planning is also bureaucratic

Debt recovery from customers is slow 4 2 8 3 12 2 8

Recommendations of implementation of the strategy

Thus, based on the results from the QSPM analysis, we can see the results as follows:

 The vertical integration strategy (ST1) has a total score of 180, and is the lowest scoring TAS option

 The horizontal integration strategy (ST2) has a total score of 189, and is the second best

 Product Development Strategy (SO), which seeks to grow by increasing the number of utilities and services, has a total score of 208, which is the highest overall score

Based on this calculation, the business-to-product (SO) strategy that harnesses the strengths available to take advantage of the opportunities offered by the economic environment is proposed as a viable business strategy With the mission set by the company, it is in line with the business environment and the company's internal environment

To implement the selected strategy, the company needs to implement the following solutions in a consistent manner:

3.4.1 Marketing mix solution a Promoting and building images

 Currently, besides the two main traditional channels: television (99%) and newspapers (72%), the Internet plays an important role in the media With 58% of users, young people increasingly use and access the Internet more

According to statistics, every day 95% of Vietnamese people watch TV, 53% access the Internet, 48% listen to radio, 43% read newspapers Therefore, the strategy of advertising media will focus on the forms of advertising, PR products and brands above Especially, when Company 59 identified the target group of middle income earners in big cities (Hanoi and Ho Chi Minh City) and the group of customers being military officers and officers, the company will have more targeted ads

 The company focuses on exploiting the traditional market as the military market, considering this market as the core market, ensuring regular jobs for the company In addition, after determining the company's strategy in the near future is to target middle-income housing in large cities Firmly grasp the policy development of the sector, the development projects of the central and local, assigned staff responsible for monitoring projects

 Carry out marketing, tender or contractor appointment Get turnkey contracts, giving customers many options for building projects with different design options

 Associate with foreign design consultants to find clients from the foreign investment sector

 Organize customer conferences every year, tighten the relationship between customers and businesses

 Implement advertising programs in the form of mass media, sponsorship programs, sports exchanges, culture and arts Participating in domestic and foreign fairs

 Build up professionalism for employees in customer relations

 Regularly listen to feedback from customers for appropriate policies To provide maintenance services after the works are completed and put into use

Satisfy the highest customer satisfaction b Marketing and consumption of products

 Maintain and strengthen the traditional market is the military market, the Company needs to pay more attention to the care of customers The design department of the company must advise the client on the utility and efficiency of the project, the application of new materials, the layout of the works to the highest satisfaction for the convenience factor In use, ensuring the art, in harmony with the adjacent works, time use as well as construction costs

 Prepare sufficient resources and perform well in the construction process to ensure progress, quality and safety

 Effectively implement the work warranty, is willing to take responsibility for the work is not satisfactory

 Demonstrate traditional customer care programs through regular activities:

Maintain regular relationships with traditional clients: Ministry of Defense, Ministry of Construction, Ministry of Transport, People's Committees province, project management board Organize customer conferences, support local social activities such as financing for poverty alleviation programs, building gratitude houses; sports exchanges, etc

 Provide information on products, programs of application of science and technology, new technology of the company

 Carry out annual product maintenance for the unit's products

 Regularly survey customers about the services and products of the company to make appropriate adjustments

 Train a team of technically savvy employees to meet the needs of our customers

 Create customer profiles to understand current and potential needs in the future to have the right marketing strategy c Development of distribution channel

At present, most real estate units are sold through intermediaries, through a third unit Company 59 with a long history, prestige brand and strong sales team need to step up sales directly to Consumers, cutting intermediaries and agents d Supply chain development Supply Chain: Building an effective supply chain to deliver services, products to the best customers at cost-effective:

 Select, evaluate, build distributors, agents according to the company's standards 59 Based on the distributor's ability to zoning new distributors and the number of marketing staff, Market support staff for distributors

 Develop policies for distributors (staff support, system development, infrastructure strengthening and others)

 Develop attractive policies for the company's direct sales staff to increase direct sales efficiencies

Develop attractive policies for direct sales staff to increase direct sales efficiencies

 Determine the human resources needs, including quantity, professional qualifications and age, in line with the company's annual development plan

 Rebuild salaries and bonuses in line with the common ground of society;

Incorporate the interests of enterprises with the interests of employees through the mechanism of rewarding the contributions of employees to enterprises

 Have a transparent and open recruitment policy for all subjects in the society, to avoid the recruitment of familiar factors and family factors

 Revise the system of labor contracts, social insurance, wage payment and remuneration policies for workers, especially for skilled workers and skilled workers

 Improve the functions and duties of the department and for each position by developing and applying the ISO 9001 quality management system in the unit

 Build up a culture within the company, creating a shared value among employees within the unit Create a unity in the company Identify the company as a common roof for everyone

 Develop an annual professional training plan for staffs To dispatch officials to study professional skills and management methods in advanced countries in the region

 Associate with universities such as major universities in training, updating knowledge for staff Scholarships are available to students who are relatively well qualified to meet the needs of the company and sign employment agreements after graduation

To invest in the procurement of new construction equipment and technologies; build professional marketing team; Renovation of production management; Cooperate with other companies in the same industry to expand into the potential market of foreign invested and domestic enterprises Focusing on specialized equipment such as bored pile drills and retaining wall drilling machines, it creates a turning point for the company to approach and execute underground and special projects

Establish a joint venture company in the field of construction of underground works and high-rise buildings with complex structure in order to transfer technology, equipment and construction experience

3.4.4 Financial solution relatively good unit in raising capital for production thanks to the timely and adequate capital adequacy of the Military Commercial Joint Stock Bank However, for sustainable long-term development, investment in construction equipment, the loan can not meet To overcome this, the company must mobilize from the following sources

 Identify Military Commercial Bank as a strategic partner providing long- term credit to finance the company's investment projects

 Mobilize capital from financial leasing organizations and investment funds

 Mobilize the advance funds of customers and business partners to finance the project

 Mobilize capital from equitization of the enterprise and issuing additional shares

 Mobilize capital from staffs in the unit

Some recommendations to the management level

 Perfect the business legal environment on the basis of equality among enterprises in the direction of integrating into the world construction market, in line with international practices

 Simplify investment procedures, improvement of basic construction management procedures

 Promote the prevention of corruption, harassment in the building

 Renovate the method of capital management in capital construction investment, adjusting the fiscal year in the capital construction settlement to suit the climate conditions of our country Although the state has stipulated the allocation of capital for groups of works, but in fact the capital also not enough supply and spread many works, so the completion of the works are prolonged causing loss to society, increase the cost of production of the contractor Volume processing also has different opinions, but the treatment is often prolonged, thus obstructing the completion of the works

 Renovate basic construction management Establishment of capital construction management company to replace the project management board, from the role of the master to become the real boss Projects must meet the goals of economic efficiency and community efficiency Avoiding the situation that many of the projects are currently invested in construction but ineffective exploitation, causing great waste for society and taxpayers

 Amend a number of articles of the Bidding Law, which stipulate price ceilings, floor prices and unreasonableness in adjusting bids

 Have appropriate policies and resolutions in the enforcement of site clearance, avoid the situation as many projects can not be completed because of land clearance

 Limit the intervention of higher level agencies into production and business activities and arrange organizational structure in enterprises Give more self- determination to enterprises in proactive planning and production organization in accordance with the situation of enterprises

 Allow companies to carry out shares at the discretion of the Prime Minister and to reasonably settle policies for employees, especially those who are military employees after equitization

Along with the movement of the economy, businesses need to make adjustments in how they operate and have strategies that are appropriate for each period The topic of "Building a real estate business strategy of the Ministry of Defense 59" is well suited to the current context where the old strategy is no longer appropriate and requires the development of a new strategy With the time to study the situation and develop strategies for the company 59, the author has achieved the following highlights

1 Systematize the theoretical basis of strategy, real estate strategy Introduce a model to build a real estate strategy in line with the reality of the company

2 The questionnaire has been developed, from which the assessment and assessment sheet is composed of strengths and weaknesses; Opportunities - challenges of the company

3 Develop SWOT matrix and propose strategic options, including 3 strategies, including:

 ST1 Vertical integration growth strategy

 ST2 Horizontal integration growth strategy

4 Use QSPM to analyze and select strategic options The result: SO strategy - Product development is the strategy with the highest score

5 Develop solutions to implement SO strategy

6 Recommendations to sectoral and state management agencies

Despite the efforts, the experience and knowledge of the trainees are limited

As a result, I am expected to receive the contributions of their teachers and siblings to complete the thesis and can use it for the company's own strategy development in the next 5 years

1 Michael E Porter (1998), Competitive strategy, Statistics Publishing House, Hanoi;

2 Philip Kotler (1997), Marketing management, Statistics Publishing House, Hanoi;

3 Fred R David (2003), Concept of strategic management, Statistics Publishing House, Hanoi;

4 Prof Ph.D Ngo Kim Thanh (2011), Strategic management, National Economics Publishing House, Hanoi;

5 Ph.D Nguyen Thanh Hoi, Ph.D Phan Thang (2001), Management, Statistics Publishing House, Hanoi

6 Michael E Porter (1980), Competitive Strategy, New York, USA

7 Michael E Porter (2008), Competitive advantage, (Translation) Tre

Publishing House; Ho Chi Minh City

8 Micheal E Porter (2009), Competitive Strategy, Tre Publishing House, Ho

9 Garry D, Smith Danny R, Arnold, và BobbyG, Bizzell (1997), Business Strategy and Policy, Statistics Publishing House, Hanoi;

10 Prof Ph.D Hoang Dinh Phi (2011), Curriculum on Management Technology, Vietnam National University Press, Hanoi;

11 Nguyen Thi Lien Diep and Pham Van Nam (2003), Business Strategy and

Policy, Statistics Publishing House, Hanoi;

12 Authors’ group of University of Economics Ho Chi Minh City (2010), Competitive environment of real estate – strategy of Binh Chanh Construction Investment Shareholding (BCCI) at the stage of 2010 – 2015;

13 Ngo Vinh Tu (2007), master thesis, University of Economics Ho Chi Minh City; Building development strategy for Company 59 under Ministry of Defense until 2015

14 Tran Quoc Thai (2006); master thesis in economics, Strategic business plan of Vietnam Export Import Bank until 2015 University of Economics

15 Decree no 76/2015/NĐ-CP dated 10 September 2015; Detailed provisions on implementation of real estate business law

16 Law of the officers of the Vietnam People's Army dated 21 December 1999; Law on amendment and supplementation of articles of law of the officers of the Vietnam People’s Army dated 03 June 2008

Please tick X for the option you choose

Types Content Excellent Good Average Poor

Economic growth has increased steadily People's incomes increase Preferential credit policy for military personnel

Government investment is concerned with infrastructure

Demand for middle-class housing increased

The speed of urbanization is fast The number of new families increases rapidly

Vietnam built an open economy, socialist orientation, global integration

Improve legal institutions Get off to the forefront of technology People's living improves, demand for home ownership increases Flexible and various supplier

Challenges The corruption, bureaucracy in the real estate industry The bank tightens lending policies with real estate

Trends in cooperation, mergers and acquisitions

The change in technology application in the real estate industry Regulations and obligations of business units under the Ministry Regulations and obligations of business units under the Ministry of defense

The fierce competition in the industry

Administrative procedures are not yet streamlined

Unfair competition in the industry The virtual demand for real estate Regulatory adjustment

Outstanding capital in real estate

Strengths Equipment and machinery meet the construction, interior design of residential civil works

Ability to raise capital to expand production

The company has built its brand in the non-military market

The company has loyal customers, stable (projects, customers in the military)

The company has a good record of

40 years of experience in real estate The company applies many new technologies in the process of construction execution

The process is professional, professional

Weaknesses The level of management of specialized departments is limited and uneven

Debt recovery from customers is slow

The remuneration policy is not good, not keeping good personnel

The image of state-owned enterprises (slow, bureaucratic) has an impact on the impression of corporate customers or individual customers

The task of urging debt recovery slowly Bad debt is relatively large

The budget budget has a late payment time

Allocation of management costs for each type does not follow a certain criterion

Expenditures of the Company's legal reserves are not high

QUESTIONAIRE STRATEGY SELECTION MATRIX FORM

Dear readers, after the survey number 1 was issued, the author has conducted research and identified 3 main strategies and in accordance with the reality of the company However, the author still needs to collect more of his opinions to ensure objectivity in assessing the attractiveness of each strategy Look forward to your cooperation!

1 ST1: Vertical Integration Growth Strategy

4 AS: Points of Attraction: The relative attractiveness of strategy versus other strategies, by factor

5 TAS: Determine the total number of points of interest by multiplying the number of points in the column with the AS score

6 In particular: point 1 is not attractive, point 2 means less attractive, point 3 is quite attractive and point 4 is very attractive

Economic growth has increased steadily

Preferential credit policy for military personnel

Government is interested in investing in infrastructure development Demand for middle- class housing increased