The thesis t it le
The thesis n e ce ssity
T h e ra p id e x p a n s i o n o f s h r i m p í a r m i n g in V i e tn a m h a s c r e a t e d a ra n g e o f d e v e lo p m e n t o p p o r tu n itie s a n d c h a lle n g e s to in v e s to rs T h e r e s e a r c h f o u n d out th a t
IC C o m p a n y ’s c u r r e n t p ro d u c t io n is o n ly o n e th ird o f its c a p a b ility , r e s u lte d in an irrelativ e m a r k e t share T h e h ig h e r m a r k e t p o s itio n r e q u i r e s th e c o m p a n y im p le m e n tin g o f g r o w th s tra te g y b y in te n s iv e ly in v e s t in e x p a n s io n
T h is th e s is is to b u ild a p p ro p r ia te b u s in e s s s tra te g ie s f o r IC C o m p a n y ’s d e v e lo p m e n t T h e r e s e a r c h h as also a d d e d v a lu e to th e s tr a te g y ío r m u la tio n , b y g iv in g r e c o m m e n d a t i o n s a n d p r o p o s in g a n a c tio n p la n , w h i c h c a n b e a p p lie d in im p le m e n tin g s tra teg ie s.
O b je c tiv e s
T h e o b ịe c tiv e s o f th is th e s is a re to (a) r e v i e w th e th e o r y o f b u ild in g b u s in e s s s ữ a te g ie s , (b) p r o v id e a n overv ievv o f s h r im p f a r m in g i n d u s tr y in V ie tn a m a n d th e s h rim p m a r k e t in Q u a n g N in h , (c) p r e s e n t IC C o m p a n y a n d a n a ly z e its b u s in e s s e n v ir o n m e n t, a n d (d ) b u ild an a p p r o p r i a te b u s in e s s s tr a te g y f o r c o m p a n y ’s fu rth e r d e v e lo p m e n t T h e s tu d y a lso g iv e s a n u m b e r o f in s ig h ts in to c o m p a n y ’s c u ư e n t s tre n g th s a n d w e a k n e s s e s , a n d id e n tifie s a n a c tio n p la n f o r p r o d u c t io n e x p a n sio n
M eth o d
T h is th e sis a p p lie s th e c a s e s tu d y to b u ild b u s in e s s s tr a te g y f o r IC C o m p a n y T h e r e s e a rc h h a s b e e n p re p a r e d m a in ly t h r o u g h d e s k s tu d y r e v i e w s o f a v a ila b le litera tu re a n d d a ta th r o u g h th re e b a s ic steps:
T he ĩirst step is to revievv theories o f strategy and strategic m a n a g e m e n t T he study ío c u ses on the literature view o f e x istin g a p p ro a c h e s to b u s in ess strategy ío rm u la tio n , a n d in d e n tifíe s a c o m m o n p ro cess to b u ild b u s in e s s strategies.
T he s e c o n d step is b a s e d on the research o f s h rim p ía r m in g in d u s try in V ie tn a m and íìn d s o ut s p e c iĩic ía c to rs that in ílu en t the busin ess success.
A fter that, the c a s e stu d y o f IC C o m p a n y is a n a ly z e d , w h ic h in c lu d es som e intervievvs w ith c o m p a n y ’s m a n a g e rs re sp o n sib le for its strategic planning This analy sis allovvs b u ild in g b u s in ess strategies a n d p ro v id in g s o m e re c o m m e n d a tio n s c o n c e m e d w ith th e strategy im plem entation.
Data so u rce s
T h e theo re tic al revievv a n d collection o f s e c o n d a ry d ata has b een p e río rm e d by re s earch o f b o o k s , rep o rts, n ew s p a p e rs and in tern et sources T h e p rim ary d ata w as c o lle c te d th ro u g h intervievvs w ith IC C o m p a n y ’s m a n a g e rs a n d k ey em ployees A n im p o rta n t part o f th e re s e a rc h is m y p e rso n a l e x p e rie n c e in th e co m p a n y , allovved a careful u n đ e r s ta n d i n g o f p a rtic u la r issues in the industry.
B y r e v ie w in g th e th e o ry o f strategy and strategic m a n a g e m e n t a n d u n d erstan d in g the im p a c ts o f b u s in e s s en v iro n m e n t, the th e sis b e n e íĩts IC C o m p a n y in building a p p ro p ria te b u s in e s s strategies T his th e oretical ap p ro a c h can be a p p lie d in cases o f o th e r c o m p a n ie s in s h rim p ĩa n n i n g industry.
T h e stu d y is lim ite d in the sense that j u s t a sm alỉ n u m b e r o f c o m p e tito rs in the local m a rk e t is c o n s id e re d , m o re o v e r, those c o m p e tito rs co u ld n o t be a n a ly z e d w ith detail in íb rm a tio n a n d d ata, w h ic h m a y n ot entirely re íle c t the in đ u s tr y ’s com petitive e n v iro n m e n t.
The result o f this thesis is to bu ild appro p ria te b u s in e s s strategies for further d e v e lo p m e n t o f IC C o m p a n y T h e m e th o d o lo g y is e x p e c te d to be effectively applied in the c a s e s tu d y o f oth e r c o m p an ies in s h rim p f a rm in g industry.
T he thesis is s tarted w ith the intro d u ctio n part, fo llo w in g by th ree c h ap ters and the co n clu sio n part.
C h a p te r 1 p r o v id e s a fu n d a m e n ta l rev ie w o f strategy a n d strateg ic m a n a g e m e n t theory It fo c u s e s e s p e c ia lly on the busin ess strategy ío rm u la tio n process.
C h a p te r 2 d is c u s s e s the s h rim p fa rm in g in V ie tn a m , h ig h lig h tin g its latest d e v e lo p m e n t a n d k e y su ccessful íactors.
C h ap ter 3 p r e s e n ts IC C o m p a n y and an alyzes its e n v iro n m e n t to ide n tiíy extem al o p p o rtu n itie s a n d th re a ts as well as interaal strengths a n d w e a k n e s s e s that are based to build c o m p a n y ’s b u s in e s s strategy T h e c h a p te r a lso s u g g e s ts r e c o m m e n d a tio n s on the strategy im p le m e n ta tio n
T h e rap id c h a n g e o f e n v iro n m e n t íactors, like te c h n o lo g ic a l a d v a n c e s , clim ate, and c u s to m e r ’s lifestyle, cre a te s b oth o p p o rtu n itie s an d c h a lle n g e s to the in d ustry and
IC C o m p a n y T h e re fo re , it could b e interestin g i f fu rth e r re s e a rc h w ith larger sam ple size c o u ld b e u n d e rta k e n to co n ĩirm fu lly the fin d in g o f this study.
The im p o rta n c e o f s trateg y and s trateg ic m a n a g e m e n t fo r o r g a n iz a tio n a l success is now re c o g n iz e d in b o th the literature a n d p ra c tic e S tra te g y a n d strategic m a n a g e m e n t are n e c e s s a ry fo r an o r g a n iz a tio n to a c h i e v e its o b je c tiv e s , e n h a n c e c o m p e titiv e a d v a n ta g e s a n d im p ro v e its value.
T o d a y ’s h ig h ly c o m p e titiv e b u s in e s s vvorld p re s s u re s o n m a n a g e r s a n d e m p lo y e e s across ĩu n c tio n a l area s a t all o rg a n iz a tio n a l le v els to b e ta k e n o n strategic responsibilities It is im p o rta n t th a t th e y u n d e r s ta n d b o th th e s tra te g ic m a n a g e m e n t c o n ce p t a n d process.
This c h a p te r p ro v id e s th e b asic u n d e r s ta n d i n g o f s tra te g y , b u s in e s s s trateg y and strategic m a n a g e m e n t T h e c h a p t e r íb c u s e s on s tra te g y í o r m u l a t i o n as a p art o f the strategic m a n a g e m e n t.
S trategy is a plan d e s ig n e d to a c h ie v e a p a rtic u la r lo n g -te r m g o a l 1 T h e w o r d derives from the a n c ie n t G re e k w o r d s ư a tẽ g o s , w h ic h is c o m b i n e d f r o m t w o w o rd s: stratos (for a rm y ) an d ago (for le a d in g ) 2 T h e c o n c e p t o f stra te g y h a s b e e n b o ư o w e d ữ o iĩì the m ilitary a n d ad a p te d f o r u s e in busin ess.
T h ere is v e ry little a g r e e m e n t a b o u t th e m e a n in g o f s tra te g y in th e w o rld o f business A lth o u g h stra te g is ts a n d p ra c titio n e rs u n d e r s ta n d s tr a te g y in d ifferent
\vays and in v ario u s c o n te x ts , th e re are s o m e m o s t c o m m o n c o n c e p t s : 3 s S tra te g y is p e rs p e c tiv e , w h ic h is Vision a n d d ire c tio n s S tra te g y is p o s itio n , it re íle c ts d e c is io n s to o f f e r p a r ti c u la r p ro d u c ts and s e rv ice s in p a rtic u la r m a rk e ts
1 O xpo rd E n g lis h D ictio narv
2 hltp://en.\vikipedia.org/\viki/Stratcgy
3 H en ry M in t/b crg (1 9 9 4 ), "The R ise a n d F a ll o fS tr a te g ic P la n n in g " s S trateg y is a plan, a “h o w ” , a m e an s o f g ettin g from here to there s Strategy is a pattem in actions over time
S tr ơ te g y is the a r t o f th e g e n e r a l.ự S trategy refers to h o w an o b je ctiv e will be ach iev ed , th e re b y , it is broad, long te rm a n d far reaching S trateg y is m ore c o n c e rn e d w ith d e p l o y in g th e reso u rces vvhereas tactic s is c o n c e m e d with e m p lo y in g them In b u s in e s s , as in m ilitary, strategy b rid g e s the g a p b e tw e e n policy a n d tactics T o g e th e r, s ư a te g y and tactics b ridge the g a p b e tw e e n en d s and means.
S ir ơ te g y is e v e ty w h e r e S trategy can be fo u n d in all size a n d types o f organizations, in c lu d in g sm all o r large corporations, political o rg a n iz a tio n s and social o rg a n iz a tio n s S tr a te g ie s a p p e a r in differe n t levels in an o rg an iz atio n C o rporate strategy, e s ta b lis h e d at th e h ig h e st level o f m a n a g e m e n t, c o n c e m s w ith the selection o f b u s in e s s e s in vvhich the c o m p a n y sh o u ld c o m p e te a n d h o w res o u rc e s will be a llo c a te đ a m o n g th o se B usiness strategy fo c u s e s o n h o w to c o m p e te in a given b u sin ess F u n c tio n a l s trateg y is related to the activities o f fu n c tio n a l areas.
M o s t b u s in e s s e s h a v e strategies w h ic h m ay n ot b e íb rm a lly w ritten but still exist.
Business strategy is a plan fo r how a firm w ill compele, whal its goals shouỉd be and \vhat policies W ’ilỉ be need to achieve goals.5
T h e b u s in e s s s tr a te g y is a co m b in a tio n o f the in v e s tm e n t d e c isio n and the d e v e l o p m e n t o f a s u s ta in a b le c o m p e titiv e ad vantage T h e in v e s tm e n t decision o f a b u s in e s s stra te g y c o v e r s the p r o d u c t a n d m a rk e t, its in v e s tm e n t in ten sity and the r e s o u r c e a llo catio n T h e d e v e lo p m e n t o f a su sta in a b le c o m p e titiv e ad v an tag e is b a s e d on a d v a n ta g e s o f a b u s in e s s such as assets, te c h n o lo g y , h u m a n resource, m a n a g e m e n t.
4 F re d N ic k o ls (20(X)) "Strategv: D efinilions a n d M e a n in g " w w w n ic k o ls.u s
Since p u b licatio n , M ic h a e l E P o rte r’s “C o m p e titiv e S tr ơ te g y ” has in ừ o d u c e d the theory and p ra c tic e o f b u s in ess strategy th ro u g h o u t the vvorld.
C o m p e titiv e s tr a te g y is ihe se a rc h f o r a jà v o r a b le c o m p e titiv e p o s itio n in a n in d u stry, the j\'undam ental a r e n a in w h ic h c o m p e titio n occurs C o m p etitiv e s lr a te g y a im s to e s ta b lis h a p r o fita b ỉe a n d s u sta in a b le p o s itio n a g a im i the Ịo r c e s th a t d e te r m in e in d u stry c o m p e titio n 6
C o m p e tiíiv e s ír a te g y is a co m b in a tio n o f the en d s (g o a ls) f o r w h ich the firm is s lr iv in g a n d the m ea n s (policies) b y w h ich ií is s e e k in g to g e í there 7
After a n a ly z in g the c o m p le x ity o f industry c o m p e titio n , M ic h a e l P o rter presents the th re í g e n e ric strategies: c o st le a d e rsh ip , d iffe r e n tia tio n a n d fo c u s , vvhich can be im p e m e n te d at th e b u s in e s s unit level to c re a te a c o m p e titiv e a d v a n ta g e and defend against th e effects o f th e fíve factors T h e four b asic a lte m a tiv e com petitive straiegies are: c o st L ea tỉersh ip , D iffe re n íia tio n , C o st F o c u s a n d D ifferen {ia lio n
Figure 1.1 Porter’s Generic Strategies 1.2.1 C om p etitiv e strategy
Overall Cost Leadership Differentiation Ị N ar ro vv Cost
6 M ichael Portcr (1 9 8 5 ) ‘C om petitive A d \’antage: C reating a n d Susta in in g S u p erio r P er/orm ance "
7 M ich acl Porter (1 9 9 8 ) “C om petitive strategy”
1.2.2.1 C o s t Leadership: P ro d u cin g the s a m e p r o d u c t o r Service at a lo w er cost than c o m p e tito rs C re a tin g a m o re efficient p ro d u c tio n or S e r v i c e d elivery process than th a t o f c o m p e tito r s allow s the c o m p a n y to sell at a lovver price and be p roíítable.
1.2.2.2 Differentiation: P ro d u c in g the sam e p ro d u c t or S e r v i c e a t a h ig h e r quality than c o m p e tito r s do.
1.2.2.3 F o c u s : F o c u s in g ex c lu siv e ly on a n a iro w s e g m e n t o f the m arket.
Expected re s u lts
The result o f this thesis is to bu ild appro p ria te b u s in e s s strategies for further d e v e lo p m e n t o f IC C o m p a n y T h e m e th o d o lo g y is e x p e c te d to be effectively applied in the c a s e s tu d y o f oth e r c o m p an ies in s h rim p f a rm in g industry.
The thesis stru ctu re
T he thesis is s tarted w ith the intro d u ctio n part, fo llo w in g by th ree c h ap ters and the co n clu sio n part.
C h a p te r 1 p r o v id e s a fu n d a m e n ta l rev ie w o f strategy a n d strateg ic m a n a g e m e n t theory It fo c u s e s e s p e c ia lly on the busin ess strategy ío rm u la tio n process.
C h a p te r 2 d is c u s s e s the s h rim p fa rm in g in V ie tn a m , h ig h lig h tin g its latest d e v e lo p m e n t a n d k e y su ccessful íactors.
C h ap ter 3 p r e s e n ts IC C o m p a n y and an alyzes its e n v iro n m e n t to ide n tiíy extem al o p p o rtu n itie s a n d th re a ts as well as interaal strengths a n d w e a k n e s s e s that are based to build c o m p a n y ’s b u s in e s s strategy T h e c h a p te r a lso s u g g e s ts r e c o m m e n d a tio n s on the strategy im p le m e n ta tio n
Suggestion for future rese arch
S trate g y
S trategy is a plan d e s ig n e d to a c h ie v e a p a rtic u la r lo n g -te r m g o a l 1 T h e w o r d derives from the a n c ie n t G re e k w o r d s ư a tẽ g o s , w h ic h is c o m b i n e d f r o m t w o w o rd s: stratos (for a rm y ) an d ago (for le a d in g ) 2 T h e c o n c e p t o f stra te g y h a s b e e n b o ư o w e d ữ o iĩì the m ilitary a n d ad a p te d f o r u s e in busin ess.
T h ere is v e ry little a g r e e m e n t a b o u t th e m e a n in g o f s tra te g y in th e w o rld o f business A lth o u g h stra te g is ts a n d p ra c titio n e rs u n d e r s ta n d s tr a te g y in d ifferent
\vays and in v ario u s c o n te x ts , th e re are s o m e m o s t c o m m o n c o n c e p t s : 3 s S tra te g y is p e rs p e c tiv e , w h ic h is Vision a n d d ire c tio n s S tra te g y is p o s itio n , it re íle c ts d e c is io n s to o f f e r p a r ti c u la r p ro d u c ts and s e rv ice s in p a rtic u la r m a rk e ts
1 O xpo rd E n g lis h D ictio narv
2 hltp://en.\vikipedia.org/\viki/Stratcgy
3 H en ry M in t/b crg (1 9 9 4 ), "The R ise a n d F a ll o fS tr a te g ic P la n n in g " s S trateg y is a plan, a “h o w ” , a m e an s o f g ettin g from here to there s Strategy is a pattem in actions over time
S tr ơ te g y is the a r t o f th e g e n e r a l.ự S trategy refers to h o w an o b je ctiv e will be ach iev ed , th e re b y , it is broad, long te rm a n d far reaching S trateg y is m ore c o n c e rn e d w ith d e p l o y in g th e reso u rces vvhereas tactic s is c o n c e m e d with e m p lo y in g them In b u s in e s s , as in m ilitary, strategy b rid g e s the g a p b e tw e e n policy a n d tactics T o g e th e r, s ư a te g y and tactics b ridge the g a p b e tw e e n en d s and means.
S ir ơ te g y is e v e ty w h e r e S trategy can be fo u n d in all size a n d types o f organizations, in c lu d in g sm all o r large corporations, political o rg a n iz a tio n s and social o rg a n iz a tio n s S tr a te g ie s a p p e a r in differe n t levels in an o rg an iz atio n C o rporate strategy, e s ta b lis h e d at th e h ig h e st level o f m a n a g e m e n t, c o n c e m s w ith the selection o f b u s in e s s e s in vvhich the c o m p a n y sh o u ld c o m p e te a n d h o w res o u rc e s will be a llo c a te đ a m o n g th o se B usiness strategy fo c u s e s o n h o w to c o m p e te in a given b u sin ess F u n c tio n a l s trateg y is related to the activities o f fu n c tio n a l areas.
Business stra teg y
M o s t b u s in e s s e s h a v e strategies w h ic h m ay n ot b e íb rm a lly w ritten but still exist.
Business strategy is a plan fo r how a firm w ill compele, whal its goals shouỉd be and \vhat policies W ’ilỉ be need to achieve goals.5
T h e b u s in e s s s tr a te g y is a co m b in a tio n o f the in v e s tm e n t d e c isio n and the d e v e l o p m e n t o f a s u s ta in a b le c o m p e titiv e ad vantage T h e in v e s tm e n t decision o f a b u s in e s s stra te g y c o v e r s the p r o d u c t a n d m a rk e t, its in v e s tm e n t in ten sity and the r e s o u r c e a llo catio n T h e d e v e lo p m e n t o f a su sta in a b le c o m p e titiv e ad v an tag e is b a s e d on a d v a n ta g e s o f a b u s in e s s such as assets, te c h n o lo g y , h u m a n resource, m a n a g e m e n t.
4 F re d N ic k o ls (20(X)) "Strategv: D efinilions a n d M e a n in g " w w w n ic k o ls.u s
Since p u b licatio n , M ic h a e l E P o rte r’s “C o m p e titiv e S tr ơ te g y ” has in ừ o d u c e d the theory and p ra c tic e o f b u s in ess strategy th ro u g h o u t the vvorld.
C o m p e titiv e s tr a te g y is ihe se a rc h f o r a jà v o r a b le c o m p e titiv e p o s itio n in a n in d u stry, the j\'undam ental a r e n a in w h ic h c o m p e titio n occurs C o m p etitiv e s lr a te g y a im s to e s ta b lis h a p r o fita b ỉe a n d s u sta in a b le p o s itio n a g a im i the Ịo r c e s th a t d e te r m in e in d u stry c o m p e titio n 6
C o m p e tiíiv e s ír a te g y is a co m b in a tio n o f the en d s (g o a ls) f o r w h ich the firm is s lr iv in g a n d the m ea n s (policies) b y w h ich ií is s e e k in g to g e í there 7
After a n a ly z in g the c o m p le x ity o f industry c o m p e titio n , M ic h a e l P o rter presents the th re í g e n e ric strategies: c o st le a d e rsh ip , d iffe r e n tia tio n a n d fo c u s , vvhich can be im p e m e n te d at th e b u s in e s s unit level to c re a te a c o m p e titiv e a d v a n ta g e and defend against th e effects o f th e fíve factors T h e four b asic a lte m a tiv e com petitive straiegies are: c o st L ea tỉersh ip , D iffe re n íia tio n , C o st F o c u s a n d D ifferen {ia lio n
Figure 1.1 Porter’s Generic Strategies 1.2.1 C om p etitiv e strategy
Overall Cost Leadership Differentiation Ị N ar ro vv Cost
6 M ichael Portcr (1 9 8 5 ) ‘C om petitive A d \’antage: C reating a n d Susta in in g S u p erio r P er/orm ance "
7 M ich acl Porter (1 9 9 8 ) “C om petitive strategy”
1.2.2.1 C o s t Leadership: P ro d u cin g the s a m e p r o d u c t o r Service at a lo w er cost than c o m p e tito rs C re a tin g a m o re efficient p ro d u c tio n or S e r v i c e d elivery process than th a t o f c o m p e tito r s allow s the c o m p a n y to sell at a lovver price and be p roíítable.
1.2.2.2 Differentiation: P ro d u c in g the sam e p ro d u c t or S e r v i c e a t a h ig h e r quality than c o m p e tito r s do.
1.2.2.3 F o c u s : F o c u s in g ex c lu siv e ly on a n a iro w s e g m e n t o f the m arket.
A fo c u s (or n ic h e ) s trateg y is m o s t suitable fo r sm all fĩrm s b u t ca n be u s e d by any c o m p a n y , e s p e c ia lly those can afford n eith er a w id e s c o p e co s t le ad ersh ip nor a w ide s c o p e d iffe re n tia tio n strategy C o m p a n ie s c o u lđ use a cost íb c u s or a d iffe re n tia tio n fo cu s W ith a cost focus a íìrm a im s at b e in g the low est cost p r o d u c e r in that segm ent W ith a d ifferentiation fo c u s a fìrm crea tes com petitive a d v a n ta g e th ro u g h d iííe re n tia tio n w ithin the segm ent.
T he a p p ro p ria te g e n e ric strategy w ill help the firm to le v erag e its s ừ e n g th s and d e íe n d a g ain st th e five fo rc e s ’ effects O th e n v is e , M ic h a e l P o rter speciĩically e m p h a s iz e d that o n ly one o f the g eneric strategy a lte m a tiv e s s h o u ld be pursu ed fo r a given p r o d u c t, r a th e r th a n im p le m e n tin g a c o m b in a tio n o f th e se strategies So, o r g a n iz a tio n s s h o u ld take the ir c o m p e te n c ie s and s tren g th s into consid era tio n to c h o o s e the m o s t s u ita b le generic strategy.
Strategic m anagem ent
S ừ a te g ic m a n a g e m e n í is the p ro cess by w h ic h to p - m a n a g e m e n t d e term in e s the lo n g -te rm d ire c tio n and p e río rm a n c e o f the o rg an iz atio n b y e n s u rin g that careful fo rm u la tio n , e í í e c t i v e im p le m e n ta tio n and c o n tin u o u s e v a lu a tio n o f the strategy take p la c e 8 T h e strategic m a n a g e m e n t, h en ce , is an o b je ctiv e , logical and s y ste m a tic a p p r o a c h for decisio n m a k in g in an o rganization.
8 Llo yd L B y a rs L e s lic w R ue, Sh akcr A Zahra (1 996), "Strategic m a n a g e m e n t"
Figure 1.2 A simplitìed vievv of the strategic managemenl process
V ision d e s c rib e s a s p ira tio n s for the íuture \vithout s p e c iíy in g th e m e a n s to achieve d e s ire d e n d s 9 T h e m o s t ctTective Vision m ust be in sp ira tio n al, w h ic h requires for the best, the m o s t o r the greatest A V is io n b e c o m e s m o re v isib le \vhen ít is e x p re s s e d in the íb rm o f a m issio n statem ent.
A c o m p a n v ‘s m is s io n is its reason tor b eina T h e m iss io n s ta te m e n t describ e s the e o m p a n y 's b u s in e s s Vision, in c lu d in g the u n c h a n g in g v alu es a n d p u rp o s e o f the íìrm and íb rvvard-looking v is io n a ry s o a ls that g u id e the p u rsuit o f future o p p o rtu n itie s.
S trateg y ío r m u la tio n includes id e n tiíy in g an o r g a n iz a tio n ’s e x te m a l o p p o rtunities and th reats, a n a ly z in g internal s tre n e th s and w e a k n e s s , g e n e ra tin g alte m a tiv e s strateg ies, and c h o o s in g the m ost a p p ro p ria te strateg ies to pursu e.
T h e e x te m a l e n v iro n m e n t has tvvo aspects: th e m a c r o - e n v ir o n m e n t that affects all íìrm s a n d the m ic r o - e n v ir o n m e n t that a ííe c ts o nly tlrm s in a p a rtic u la r industrv A
P E S T a n a ly s is is a te c h n iq u e for ư n đ e rstan d in g the m a c r o -e n v iro n in e n t in w hich a í i n n o p erates P E S T a n aly sis inclu d es P olitical, E c o n o m ic , Social and
T h e in d u stry in vvhich the firm operates (o r is considerinR o p e ra tin g ) is an im p ortant a s p e c t o f the m ic r o - e n v iro n m e n ta l analysis In the b o o k “ C o m p e titiv e Strategy:
T e c h n iq u e s for A n a ly z i n g Industries and C o m p e tito r s ” (1 9 8 0 ) M ichael Porter
5 A le x M ille r G rcuo rx G Dess (1 9 9 6 ) " S im ie g ic n uin a g em en t" presents the m o d e l o f th e F ive C o m p e titiv c Porces T h e m o d e l has b e c o m e a useful tool for industry analy sis T h e tìve to rc e s include B a rrie rs to entry, C u sto m e rs,
S uppliers S u b s titu te p ro d u c ts, and Rivalry. a P E S T A n a ly s is
M an y m a c ro -e n v iro n m e n ta l tầctors are c o u n try -s p e c iíìc and a P E S T analy sis needs to be p e rlb rm e d tor all related co untries T h e n u m b e r ot' m a cro -e n v iro n m e n ta l íactors is u nlim ited.
Table 1.1 Example of possible factors in a PEST anaỉysis
Political stability G o v e r n m e n t in te rv e n tio n in th e m arket
E n v iro n m e n ta l re g u la tio n and pro tec tio n E c o n o m ic grovvth
C o n s u m e r p ro te c tio n C o m p a ra tiv e a d v a n ta g e s o f the cơuntry
Legal fr a m e w o rk ỉn íìa s tr u c tu r e q u ality ỉn tellectual pro p erty p ro tection Skill level o í 'w o r k f o r c e
T ra d e re g u la tio n s a n d ta riíĩs L a b o r costs
A n ti-tru st la w s B u s in e s s c y c le stag e r
W o r k in g h o u rs In íla tio n rate
M a n d a to r y e m p lo y e e b en efits M o n e ta ry policy
Industrial s a íe tv re g u la tio n s
A ttitu d e s to h ealth , e n v iro n m e n ta l c o n s c io u s n e s s , w o r k and leisure
Speed o f technology transfer b Industry analysis: Poríer ’s Five Forces model
P o r te r 's five tb rc c s tramcvvork e v alu ate s e n trv b a rrie rs, s u p p lie r s , c u s to m e rs , s u b stitu te P roducts, a n d rivalrv in the industry.
T h o s e íìv e c o m p e titiv e íb rc e s a p p e a r in every in d u s try a n d e v e ry m a rk e t T h e y d e te r m in e the in ten sity o f co m p e titio n and th e r e íb r e th e p ro tlta b ility and a ttra c tiv e n e s s o f a n industry B ased on the in íb rm a tio n d e r iv e d fro m th e F iv e F o rces an a ly sis m a n a e e r s can d ecid e h o w to in í lu e n c e o r to e x p lo it p a rtic u la r c h a ra c te ris tic s o f th e ir industry to im p ro v e the i ì r m ‘s p o s itio n
T his Ibrce d e s c rib e s the intensity o f c o m p e titio n betvveen e x is tin g p layers in an industry in \vhich firm s strive fo r a c o m p e titiv e a d v a n ta g e o v e r th e ir rivals.
E c o n o m is ts m e a s u re rivalry by in d icators o f i n d u s t r y c o n c e n tra tio n A high c o n c e n tra tio n ratio in d ic a te s that a h ic h c o n c e n tra tio n o f m a rk e t s h a re is held by the lareest tìrm s the in d ustry is c o n c e n tra te d or less co m p e titiv e A lo\v co ncentration ratio in d icate s that the inđustry is c h a ra c te riz e d by m a n y rivals, n o n e o f \vhich has a sig n itìc a n t m a rk e t share T h e m a rk e t is com p etitiv e.
T h e inlensity o f rivalrv is c o m m o n ly based on the tìr m s ' a g g re s s iv e n e s s in o rder to gain an a d v a n ta g e It is in íìu e n c e d by the in d u stry ch a ra c te ristic s s u c h as: y The n u m b e r o f c o m p e tito r s
A large n u m b e rs o f c o m p e tito rs increase rivalry b e c a u s e m o r e fírm s m ust c o m p e te for th e s a m e c u s to m e rs a n d resources T h e rivalry is m o r e in ten se i f the re are m any s m a ll or e q u a lly sized co m p e tito rs, rivalry is less w h e n an in d u stry has a m arket leader. s M a r k e t groxvth
In a s lo w grovvth m a rke t íìrm s h av e to c o m p e te for m a rk e t share O n the contrary, tìrm s are e asy to im p ro v e re v e n u e s in an e x p a n d in g m arket. s H ig h Ịìx e d c o sís
I f total c o s ts are m o stly tìx e d costs, the firm m ust p ro d u c e n e a r ca p a c ity to attain th e lovvest unit costs T h e firm m u st sell a la re e q u a n tity o f p ro d u c t, that lead to a iìg h t for m a rk e t s h are and an in c rease in rivalry. s L e ve ì o fp r o d u c t d iJ feren tia tio n
Lcnv level o f p ro d u c t d ifle re n tia tio n is asso ciated w ith h ig h e r level o f rivalry
In d u s trie s w h e re p ro d u c ts are c o m m o d itie s h av e g re a te r riv alry , Industries w here c o m p e tit o r s can diíTerentiate th eir p ro d u cts h av e less rivalry.
R ivalry is r e d u c e d ii therc is a sign ifícan l cost as s o c ia te d w ith the d e c isio n to buy a p ro d u c t fro m an a lte rn a tiv e supplier.
It is not o n lỵ e x i s t in g rivals that m a k e a threat to íìrm s in an in d ustry, the possibility that ne\v íìrm s m a y e n ter the industry also a í ĩe c t s c o m p e titio n N e w entrants to an industry c an ra is e th e lcvel o f c o m p e titio n , th e re b y r e d u c in g its attractiveness
Hovvcver, th e re are b a rrie rs to entry.
B arriers to e n trv are u n iq u c industry characteristics B a rrie rs m a in ta in the level o f p ro íits for th o s e a lre a d y in the in d ustry b e c a u se they r e d u c e the rate o f n e w entrants
B arriers to e n try a ris e from several sou rces such as: s G o v e r n m e n t r e g u la tio n s
T h e p rin cip al ro le o f th e g o v e rm n e n t in a inarket is to p re s e rv e c o m p e titio n through anti-trust a c tio n s B e s iđ e s , g o v e rn m e n t restricts c o m p e titio n th ro u g h reguỉations
Industries s u c h as p u b lic U tilities are c o n s id e re d natural m o n o p o lie s as it has been m o re e ỉ ĩic i e n t to h a v e o n e c o m p a n y ra th e r than to p e rm it m a n y c o m p a n ie s to c o m p e te in a local m a rk e t. s P a te n ts a n d p r o p r ie ta r y k n o w le d g e
Ideas and knoxvledge that p ro v id e c o m p e titiv e a d v a n ta g e s are c o n s id e r e d private p ro p erty , so th a t, p r e v e n tin g othe rs from usin g the knovvledge and th u s creating a b a rrie r to e n try v' A s s e t s p e c ự ìc ity
A sset s p e c itìc ity is th e e x ten t to \vhich the íìn rT s a s sets can be utilized to p ro d u c e a diíTerent p ro d u c t P o ten tial entra n ts are reluctant to invest in hig h ly specialized assets that c a n n o t be sold or c o n v e rte d into o th e r uses. s Switching cosỉs
T h e e x iste n c e o f an e c o n o m v oi' scale (m in in iu m size re q u ire m e n ts for profitable o p e ra tio n s ) c re a te s a b a rrie r to entry. s E x it bcirriers
B arriers to e x it a re s im ila r to barrie rs to entry Exit barrie rs limit the ability o f a firm to leave the m a rk e t H ig h barriers to ỉeave an industry inc re ase rivalry H ig h exit barriers c a u s e a firm to rem ain in an industry, e v en w h e n the b u s in e s s is not p ro íĩta b le A c o m m o n exit barrie r is asset s p e c iíic ity ỉ f th e pla n t and eq u ip m e n t requ ire d ío r m a n u f a c tu r i n g a p ro d u c t is h ig h ly sp e c ia liz e d , th e y c a n n o t easily be so ld to o th e r b u y e rs in a n o th e r industry.
Table 1.2 Industry’s entry and exit barriers
A c c e s s to d is trib u tio n ch a n n e ls
P ate nted or p ro p rie ta ry k n o w -h o w
D iữ ic u lty in b ran d svvitching
R estricted d is trib u tio n c h an n e ls
H igh scale th re s h o ld
Difficult to Exit if s p e c ia liz e d assets
H ig h exit co s ts Interrelated b u s in e s s e s
B u y e r s are th e p e o p le o r o rg a n iz a tio n s w h o create d e m a n d in an industry T he p o w e r o f b u y e rs is Ihe im pact thai c u s to m e rs h av e on a p r o đ u c in g industry.
Company p r o íìle
Q u a n e N in h p r o v in c e has tầ v o ra b le a e o g ra p h ic c o n d itio n s for aquac u ltu re d e v e lo p m e n t T h e a n n u a l c a tc h in g output oí' natural tìsh and s h rim p is up to h u n d r e d s o f ton A d d itio n a lly , fish and sh rim p ía rm in g v o lu m e is g ro w in g im p re ssiv e ly , o f w h ic h , w h ite -s h r im p is the m o st v a lu a b lc a n d d elicio u sly best- s e llin a in the m a rk e t.
IC In v e s tm e n t and C o m m e r c e C o m p a n y (IC C o m p a n y ), a fa m i! y -o w n e d co m p a n y , w a s es ta b lis h e d on M a y 10lh, 2 0 02 T he c o m p a n y s p e c ia liz e s in s h rim p intensive fa rm in g w ith a d v a n c e d te c h n o lo g y e n s u rin g fresh s h rim p s free from antibiotic and c h e m ic a l residues.
T h e h e a d o ffic e o f I C is lo c ated at 30 Lien Tri Street, H anoi T h e í ầ n n is b uilt on an a re a o f 63 h ectares a lo n g C u a L u c estu ary (n e a r B ai C h a y b rid g e), w h ic h is a very g e o g ra p h ic a lly p ro s p c r o u s for a q u a c u ltu r e íầ rm in ẹ as vvell as for re c e ip tin g o f raw m a teria l and tr a n s p o r ta tio n S in c e the í ầ n n i n g start in J u n e 2 0 0 3 , c o m p a n y 's p r o d u c tio n and s a le s o f vvhite-shrim p h ave been in c re a s in g by y ears, re a c h e d 336 to n s and o v e r V N D 25 b illio n s in 2008.
IC has b e c o m e a p re s tig io u s s h r im p p ro d u c e r in Q u a n g N in h p ro v in c e F o r the last th re e years the c o m p a n y h a s b e e n avvarded th e p r o v i n c e 's c o m p e titiv e flag due to its p e r t o n n a n c e in m a n u tầ c t u r in a and trading \vhich is co n trib u tin g to the d e v e lo p m e n t o f Q u a n a N in h a n d V ie t n a m 's tìsh e ries as vvell.
IC is no\v a m e m b e r o f V ie tn a m A ss o c ia tio n o f S e a t b o d E x p o rte rs and P roducers (V A S E P ) a n d V ie tn a m C h a i n b e r o f C o m m e r c e and Indu stry (V C C I).
B e c o m e th e le a d ỉn g p r o d u c e r o f s h r im p s in Q u a n g N in h p ro v in c e
H ig h q u a lity is the c o m p a n y 's ỉo n g -te rm d e v e lo p in g o rie n ta tlo n I C co m m its to p r o v ìd e p r o d u c ts h a v in g th e b esi q u a lìĩy a n d fo llo w in g th e h ig h e st sta n d a rd s o f f o o d s a fe ty a s w e lỉ a s e n v ir o n m e n t p r o te c tio n reg u la tìo n s. y Company values governing the deveỉopment s 1C o p e r a te s in a c c o r d a n c e vvith the h ig h e st Standard in all re ỉa tio n s h ip s vvith c u s to m e r s , su p p lie rs, e n v iro n m e n t a n d the c o m m u n ity
^ 1C c r e a te s a d y n a m ic w o r k in g e n v iro n m e n t w h ic h e n c o u ra g e s in n o v a tio n and d iiig e n c e
^ T o e x p a n d the b u s in e s s a e g re ss iv e ly an d o ffe r a b o v e -a v e ra g e re tu m s to ovvner v' T o b e c o m e the le a d in g p ro d u c e r in th e local m a rk e t
> Company sustainable development strategy (2010-2015) v' T r a i n in g th e next g e n e ra tio n 01'm a n a g e r s and vvorkers s E x p a n đ in s , p r o d u c t i o n s c a l e s In v e s tin g in u p -to -đ a te te c h n o lo a v and e q u ip m e n t s C o n ti n u o u s l v im p r o v in g the qualitv
O th e r \\ is e , b e in g a w a r e o i'its responsibility for e n v iro n m e n t p ro te c tio n IC c o m m its to c o m p ly vvith e n v iro n m e n t p rotection re g u la tio n s and p a rtic ip a te in local e n v iro n m e n t p r o te c tio n activities T h e c o m p a n y re d u c e s im p a c ts o f its tầ rm in g on e n v iro n m e n t by eíTieientlv u s in g natural re s o u rc e s as vvell as d e c re a s in g vvaste and pollution.
3.2.1 External environnient analysis 3.2.1.1 Political factors
A q u a c u ltu re has b e e n actively e n c o u ra g c d in V ic tn a m as a in e an to achieve d e v e lo p m e n t taruc ts and increase exports vviih u o v c r n m e n t’s p o licics cncouragine the gn)\vth ot' a q u u tic produ ctio n and vvith o lììe ia l s u p p o rt in thc tbrm o f p rc íe rc n tia l ta x a tio n sup p ly ot credit and in v e stm en t in related inírastructurc.
G o v e r n m e n t D e c is io n N o 21 (1998): "T o q u ic k ly d e v e lo p the a q u a tic p r o d u c t econom y into a spcurhead brcinch in the economy ()flhe countrỵ create manỵ more ịtìbs in order 10 help rdi.se the Standard ư f living o f the people, bring about a face- Iift o f the rural Coastal a rea s and conlribute to living p r o b le m s o f th e e c o lo g ic a ỉ environm ent to ílevelop shrimp farmin%: to ẹrcưhtally tnove t'rom extensive shrimp Ịanniiií’ lo improvec/ cxlcnsivc /arminii sem ỉ-intensive ịànnÌM* to encourage the fo rm s oJ inter-farm iìĩg xvhile fòrm ing areas o f concentrated intensive shrỉmp ỷarminq
C iovernm ent D e c is io n No 67 (1999): "T o e n c o u r a g e ịa m ily h o u seh tìld s a n d iiu iiv id u a ls to b u ild cu/uatic p r o d u c ts rai.siniỊ fa n n $ to cievelop v a rio u s ịo r m s o f c o - operative economy in th e Processing o f aquatic product feed , in raising, exploiting and Processing aquutic prociucts for sale
A c c o r đ in a to th e R e s o lu tio n 0 3 /N Q - C P (2000) the g o v e r n m e n t “p a r tic u la r ly stim ulates the investm ent in unoccupied land, making the best use o f all kinds o f
> Environm ent policy fa llo w ì a n d a t p o n d s , lakes, m a rsh es, a llu v ia l g r o u n d s n e a r b y the s e a a n d rivers, the w a te r s u r fa c e o f b a y s in o r d e r to d e v e lo p a q u a c u ltu r e " A t the s am e tim e, the
G o v e r n m e n t allovved h o u s e h o ld s an d e c o n o m ic s e c to rs to turn sa lin is e d íìelds salt pans, s u b m e r g c d la n d s and lovv p ro d u c tiv ity íìelds into a q u a c u ltu re in acc o rd an ce
\vith th e R e s o lu t io n 0 9 /2 0 0 0 /N Q - C P T h e s h rim p lầ rm in g th e n had a rapid d e v e lo p m e n t a fte r th e s e tw o R e s o lu tio n s c a m e into effect.
B á n g Progressive in the p ro tec iio n o l’ m a n g ro v e and o lh e r im p o rta n t vvetland hahitats, V i e t n a n r s G overnm ent has called ío r Ihe e x p a n s io n o f a q u a c u ltu rc to bc c a re tu llv p la n n e d 'The g o v e r n m e n t c n c o u r a s e s d iv e rs iíìc a tio n and integrated lìirminsí to r e d u c e risk and p re s e rv e cco lo g ica l a n d a g ric u ltu ra l balan ce Yet public c o n s c io u s n e s s a n d avvarcness on e n v iro n m é n la l p ro te c tio n is still p o o r in gcncral.
P u rth e rm o re , e c o n o m i c activ itie s in V ie tn a m are re s tra in e d by the c o u n try 's b u re a u c ra c y c o r ru p tio n , p o o r regu la tio n w e a k legal s y stem a n d p o o r in ữ a stru c tu re
A c c o r d in g to W o rld B a n k ’s latest annual league ta b le m e a s u r in g th e ease o f d oing b u s in e s s in d iffe re n t c o u n trie s , c o m p iỉin g tax retu rn s in V ie tn a m ta k e s lo n g e r than in a lm o s t a n y o th e r c o u n try Likevvise the c o rru p tio n in d e x p ro d u c e d by
T r a n s p a r e n c y I n te rn a tio n a l, a not-í'or-profit o rg a n iz a tio n , s h o w s V ie tn a m as a poor p e ríb rm e r.
V ie tn a m has c m e r a e d rccontlv as o n c o f the vvorld"s m ost attra c tiv e n ew investm ent d e s ti n a li o n s 17 T h e counlry * s 2 0 0 7 accessìo n lo the w 1 0 and a su rg e o f new ib reig n d ire c t in v e s tm c n t a n d p o rttb lio inflow s, h ig h lig h l an im p re s siv c course o f e c o n o m ic r e ío r m p a rtic u la r lv in tra d e and in v e stm e n t liberalizatio n , vvhich havc led to s lr o n e e c o n o m i c p e r ío r m a n c e - an a v e t a a e 7 5 % a n n u a l grovvth o v e r the past d e c a d e , o nc o l thc lầ stc s t ra tc s in A sia. p !MF Survey (2008)
V ietnanV s g o v e r n m e n t c a n be novv c o m m e n d e d to r its s w ift re s p o n s e to the giobal crisis o f late 2 0 0 8 18 T h e policy reaction vvas tim e ly a n d d e te r m in e d in resp o n se to the o v e r h e a tin g o f latc 2007 and earlv 2008 D u e to the s tab iliz atio n policies,
V ietn am e c o n o m v is in a better positio n than in m a n v o th e r co u n trie s and in the region as vvell. a S ír o n g G D P g r o w íh
T h e global crisis has led to a n oticeabie slovvdovvn ot' e c o n o m ic grovvth in V ietnam
T h e G D P in 2 0 0 8 in c re ased by 6 1 8 % a g ain st 2 0 0 7 , o f w h ic h the agriculture, ío restry and íìs h e ry s e c to r rose bv 3 7 9 % , th e in d u s try and c o n s tru c tio n by 6.3 3 % and the Service by 7.2% T h e im pact vvas still severe in the tìrst quarter o f 2009, vvhen G D P in c re a s e d by 3 1 % c o m p a r c d to the s a m e p e rio d in 2008 A lth o u g h
V ie tn a m e s e e c o n o m y is n o w Íầcinớằ b ig c h a lle n g e s, th e e c o n o m y is believed to re s u m e fast grovvth this year.
Table 3.1 Vietnam quarterly GDP grovvth Ọ 1-2008 Ọ 2 -2 0 0 S Ọ 3 -2 0 0 S 0 4 - 2 0 0 8 ọ 1-2004
S o u rc e : W o rld B ank, 20 0 9 b ỉncreasingỉy GDP per capỉta
In c reasin g ly V i e t n a n v s G D P per cap ita in 2 0 0 8 has reac h ed us $ 1 ,0 3 0 thanks lo iầst e c o n o m ic grovvth o v e r the past ycars T h e iìg u re is c lo se to th e n a t io n ’s target o f U S $ 1 ,0 5 0 to 1,100 in 2 0 1 0 19 T h e rise in G D P p e r ca p ita o fte n m e a n s a positive trenđ o f in c o m e that m ay result in a r a is i n s d e m a n d on g o o d s and services.
18 U K Border A g e n cy (2 0 0 9 ) "C ounlrv o f o r i ý n in/orm aiion report, V ielnam "
Vietnam ese N ational A ssem b ly O ffice (2 0 0 8 )
Figure 3.1 V ietnan ì G D P per capita grovvth
S o u rce: G SO , 20 0 9 c H ig lt c o n s u n te r p r ic e in d e x (C P l)
Implementing the growth strateg y
A c c o rd in g to th e a b o v e strategic analỵsis IC C o m p a n y is in an a ttractiv e industry and h a v in g m u c h stre n g th and s o m e vveaknesses W ith the Vision o f b e c o m in g the leading p r o d u c e r oí' s h rim p s in Q u a n g N inh p ro v in c e , IC C o m p a n y is suggested to invest m o re in te n s iv e ly in grovvth strateg y by s tr a te ạ ic a lly u tiliz in g the i n d u s t i ỳ s o p p o rtu n itie s and c o n c e n tr a tin g on its strengths T h e o b ịe c tiv e o f this strategỵ is to increase c o m p a n y 's p ro d u c tio n capa city to 700 tons in 2015 a n d g ain the m arket sh are o f 9 %
T h e g ro w th s tra te g y is to íu rth er e x p a n d the b u s in e s s by a c o m b in a tio n o f t\vo strategies: e x p a n d i n g s h rim p p ro d u c tio n and im p ro v in g c u rre n t inirastructure O n the o n e h an d , the c o m p a n y sets up a n ew tầ rm in g area n ex t to th e curren t one O n the other, it s h o u ld repair, u p g ra d e o r s u p p le m e n t its in tra s tru c tu re to s u p p o n the operation.
3.3.2 Solutions 3.3.2.1 Set Iip new ĩarming area
1C C o m p a n y is p r o p o s e d to invest in a ne\v p ro d u c tio n line w ith ne\v m a ch in ery and e q u ip m e n t in its u n u sed land T h is will in v o lv e r e c ru itm e n t an d train in g o f n e \ v e m p io y e e s A lth o u g h there is c o n s id e ra b le e x p e n s e in v o lv e d this is an ap p ropriate stra te e y b e c a u s e lo c al d e m a n đ is e r o w in g stead ilv and is e x p e c te d to be sustained.
T h e in fra s tru c tu re h a s been in o p eratio n for 6 y e a rs and m a y n ot p ro v id e the best p e r íb r m a n c e re q u ire d So that c o m p a n y sh o u ld re p a ir and u p g ra d e its inírastructure, to r e x a m p le stores, olTice roads c a n a ls or electricity n e tw o rk , as well as build m ore nevv ro ads, n e w s to re s and settle m e n t ponds.
W aste can be fo u n d in e ith e r th e p ro d u c tio n o r ad m in is tra tiv e p u rc h a s in g , and other activities W ith a vievv a c ro ss th e o p eration, IC m a n a g e m e n t can flnd w a y s to use less o f e v e r ỵ th in g in th e process, e v e n a sm all a m o u n t I;or c x a m p le not o nly does ihc e x ce ss ie e d in g \vaste m o n c y a n d resoư rces, hut also in c rcase nutrient pollution o f the p o n đ s and w a te rs T h e r e lo r e 1C e n g in e e rs h a v e to strictlv control the íeeding reg im c hy c o rre c tly lbeil sm all q u an tities at re e u l a r intervals.
T h e qu an tity q u a lity o f p o s t la rv a e and feed are very im p o rtan t for sh rim p farmers
In the p a s t s e v eral y ears, 1C C o m p a n y has crea ted s tro n g re la tio n s vvith reliable suppliors vvho can s u p p ly the b est qualitv o f post larvae and feed at com petitive prices and at the rig h t tim e T h e c o m p a n y , th e re íb re has to s tren g th en those relations to e n s u re s ta b le in p u ts for the p roduction.
B esides, IC C o m p a n y sho u ld c o n s id e r d e a lin g vvith n e w su p p lie rs to ensure the quantity, c h o o s e th e m o s t r e a s o n a b le P ro d u cts as vvell as r e d u c e the p o w e r o f current suppliers.
A b e tte r-m o tiv a te d w o r k f o rc e vvill w o rk harder, thus, h elp to increase the p ro d u ctiv ity and q u a lity o f s h rim p s T h e re are m a n y d iffe re n t fínancial and non- íìnancial vvays for th e firm to m o tiv a te its w o rk e rs M o s t im p o rta n tly , c o m p a n y is s u g g ested to crea te a p o sitiv e \v o rk in g e n v iro n m e n t that allovvs all e m p lo y e e s to grovv B esides, c o m p a n y s h o u ld take the tim e to r e c o g n iz e eac h e m p lo y e e ’s co n trib u tio n s a n d th e n , otTer th e m in c e n tiv e s to p e rfo rm w ell, s u c h as p e río rm a n c e - based b o n u s or s a la r y increase.
A ẹ o o d trainine, s y s te m is n e c e s s a r y for IC to set up n e w lầ rm in g b e c a u se shrim p ía rm in g re q u ire s s p e c it ìc te c h n iq u e and ex p erien ce IC C o m p a n y can m a k e e m p lo v e e s im p ro v e th e ir skills by p ro v id in g o n -th e -jo b tra in in e o r send th e m to ex te n s io n se rv ic e s and s e m in a rs related to the aq u a c u ltu re E specially, c o m p a n y s h o u ld invite a q u a c u ltu re experts to train w o rk e rs u p d a te d skills or know ledge.
Civil engineers 13 new ponds Expanded warehouse
Purchase dept Modem eq uip m en ts
Efficiency Durability Easy-repair Recruit & train
Technical criteria Estimate íinancial budget
G e ttin e th e s tra te g y im p le m e n te d is m u c h m o re d ifficu lt than ío rm u lated , th e re íb re, the c o m p a n y s h o u ld fol!ow a ste p -b y -s te p process.
Figure 3.9 IC C o m p a n y ’s strategies im plem entation process
Initiallv c o m p a n y h a s to d e v e lo p d e ta ile d a c tio n p la n in c lu d i n g lists o f a c tio n s te p s to its e x p a n d in e s tra te g y T h e n it a s s ig n s r e s p o n s ib ility to e a c h s p e c i íìc s ta f f for a c c o m p l is h in e e a c h o f th o s e a c tio n ste p s A ls o , c o m p a n y s e ts a d u e d ate a n d e s tim a te r e s o u r c e s re q u ir e d ío r e a c h step E v e r y d iv is io n h a s its ovvn n u m b e r o f s p e c iíìc w o rk a s s i g n m e n ts B e s id e s th e p lan m u s t b e c o n n e c t e d to th e a n n u a l b u s in e s s p lan a n d b u d g e t in o r d e r to e lim in a te u n e x p e c te d p r o b l e m s in b u d g e tin g tim e.
O thervvise, s u c c e s s lu l s tra tc g v im p l e m e n ta tio n r e q u i r e s elT cctiv e c o m m u n i c a tio n , v e rtic a lly a n d h o r iz o n ta lly V e rtic a l c o m m u n i c a t i o n e s t a b lis h e s c o -o r d in a tio n a n d s u p p o rt in s id e d iv is io n s a n d d e p a r tm e n ts , m eanv vh ile, h o r iz o n ta l o n e g o e s a c ro ss all o f th em O b v io u s ly , to m a k e th e s t r a t e s y s u c c e s s f u l e v e r y o n e in th e o rg a n iz a tio n n e e d s to be in v o lv e d in a c tio n s.
T h e c o m p a n y m u s t h a v e a p e rio d ic lo o k to s e e i f it is a c tu a lly p e r t b r m i n g in te n d e d a c tio n s te p s in th e p lan a n d re s u lts a c h ie v e d a lig n in g vvith e x p e c te d o b je c tiv e s
M o n ito r in g a ls o allovvs to r n e c e s s a r y c h a n g e s in c lu d in g c h a n g i n g th e s c h e d u le , c h a n g in g th e a c tio n ste p s, c h a n g i n g th e s tr a te g y o r c h a n g i n g th e o b ịe c ti v e tin ally.
3.3.5 R e co m m e n d a tio n s to the G o v e rn m e n t
In a e c o r d a n c e w ith th c in f o r m a tio n p rc s e n tc d in this r c s c a r c h , V ie tn a m e s e (.ỉo v e rn m e n t s h o u ld :
✓ D e velo p farm o r's o rg an i/atio n such as aroups or e lu b s and promote e d u c a tio n to slirim p la rm e rs a n d vvorkers In c rc a s e th c b u d g e t for a q u a c u ltu re c x tc n s io n s c rv ic c s a n d re s e a rc h in stitu tion s.
✓ Hncourage ra tio n a li/a tio n o f thc produclion ch ain s hclvvccn shrim p lầ n n ers and o xp o rlers h a lc h e ric s Iintl sn p p licrs oi icccl and othcr inputs. s E n íb r c e rc le v a n l le g is la tio n rc g a rd in g q u a lity c o n tro l e sp e c ia lly 1'or p ost la rv a e an d feed. s Im p ro ve the inlV astructure in rural areas. s A d ịu s t a n d c o m p l e m e n t p o lic ie s for th e s h r im p in d u stry tovvards su s ta in a b le d e v e lo p m e n t.
B a sed on th e e n v ir o n m e n t sc a n , th is c h a p te r id e n tiíle s m a n y o p p o rtu n itie s an d th reats m u c h stre n g th a n d s o m e vveaknesses th at c h a r a c te r iz e IC C o m p a n y ^ stra teg ic situ atio n A n a l y / i n g th e s e lầ c to rs u sin g S W O T p ro ílỉe a n d G E - M c K in s e y m a trix e n a b le s to tb r m u la te a p p ro p r ia te s tra te g ie s for th e c o m p a n y
A gro vv th -oriented s tr a te g y is th e r o a d m a p for IC C o m p a n y ’s íu tu re d e v e lo p m e n t, w h ic h c an b e a c h ie v e d b y e x p a n d in a s h rim p p ro d u c tio n a n d im p ro v in g cu rren t in frastru ctu re The c h a p te r th en g iv e s s o m e s u g g e s tio n s c o n c e rn e d w ith i m p le m e n tin g th a t s tra te g ie s a n d the G o v e r n m e n t ’s a d m in istra tio n
T h is th e s is p ro v id e s a íu n d a m e n ta l k n o w le d g e o f s tra te g y and stra teg ic m a n a e e m e n t [t e m p h a s iz e s o n b u s in e s s s tra teg y íb r m u la tio n for a sm all c o m p a n y
T he th esis also h e lp s to a p p ly th e th eo ry into p ra c tic e by b u ild in g b u sin e ss s tra teg ie s and s i v i n ụ s o m e r e c o m m e n d a tio n s on h o w to a p p ly th e nevv strateg y into a c o m p a n v