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Tiêu đề Building Business Strategy in the Shrimp Farming Industry: The Case of IC Company
Tác giả Nguyen Thi Hieu Ninh
Người hướng dẫn Dr. Vu Xuan Quang
Trường học Vietnam National University, Hanoi
Chuyên ngành Business Administration
Thể loại Master of Business Administration Thesis
Năm xuất bản 2009
Thành phố Hanoi
Định dạng
Số trang 85
Dung lượng 7,18 MB

Cấu trúc

  • 1. The thesis t it le (6)
  • 2. The thesis n e ce ssity (6)
  • 3. O b je c tiv e s (6)
  • 4. M eth o d (6)
  • 5. Data so u rce s (7)
  • 6. Signiíìcance (0)
  • 7. L im ita tio n s (0)
  • 8. Expected re s u lts (8)
  • 9. The thesis stru ctu re (8)
  • 10. Suggestion for future rese arch (8)
    • 1.1. S trate g y (9)
    • 1.2. Business stra teg y (10)
      • 1.2.1. D e íìn itio n (10)
      • 1.2.2. Competitive strateg y (0)
    • 1.3. Strategic m anagem ent (12)
      • 1.3.1 V isio n and M is s io n (13)
      • 1.3.2. Strategy form ulatio n (13)
      • 1.3.3. Strategy im plem entation (0)
      • 1.3.4. Strategy e valu atio n (30)
    • 2.2. The development o f shrimp íầrm ing industry in V ie tn a m (0)
    • 2.3. Pactors effecting shrimp ía rm in g (0)
    • 3.1. Company p r o íìle (41)
    • 3.2. Sírategy ío rm u la tio n (0)
      • 3.2.1. External environment a n a ly s is (0)
      • 3.2.2. Industry environment a n a ly s is (52)
      • 3.2.3. Internal environment a n a ly s is (56)
      • 3.2.4 S W O T analysis (0)
      • 3.2.5. Strategy selectio n (62)
        • 3.2.5.1 Production expanding (62)
        • 3.2.5.3 Post larvae and íeed pro d ucing (0)
    • 3.3. Implementing the growth strateg y (0)
      • 3.3.1. O b je c tiv e s (64)
      • 3.3.2. S o lu tio n s (64)
      • 3.3.3. A ction p la n (66)
      • 3.3.4. Recommendations to 1C C o m p a n y (67)
      • 3.3.5. Recommendations to the G o vern m en t (68)

Nội dung

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

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