INTRODUCTION
Rationale
Tobacco, alongside cotton, paper, and oil crops, is a significant raw material in the industry, recognized for its high economic efficiency and societal benefits, particularly in alleviating hunger and reducing poverty However, the tobacco industry, which encompasses cigarette production and the cultivation of raw materials, is a sensitive sector that faces challenges in promoting robust development.
Smoking poses serious health risks, yet it remains a prevalent long-term habit for many individuals Tobacco, despite not being a necessity, continues to be in high demand across various demographics In many countries, particularly developing ones, the tobacco industry plays a crucial role in the economy, contributing substantial profits to businesses, generating significant tax revenues for governments, and providing numerous job opportunities.
Currently, societal trends are increasingly discouraging tobacco consumption, supported by government policies aimed at limiting production and reducing demand The global tobacco industry, including Vietnam, is shifting towards new generation tobacco products that utilize advanced technology and are less harmful to health Consequently, tobacco businesses must adopt strategic directions that align with these evolving social requirements to ensure sustainable development.
Ngan Son Joint Stock Company is a diverse business involved in agriculture, industry, and logistics, with a primary focus on tobacco cultivation and processing To address the economic and social challenges between corporate profitability and public health, it is essential for the company to establish a strategic development direction.
Research objectives
The primary aim of this thesis is to assess the production and business performance of Ngan Son Joint Stock Company, identifying its strengths, weaknesses, opportunities, and threats This analysis will inform the strategic direction for the company's development through 2025.
- To review relevant literature and theories related to business strategy.
- To analyze and evaluate internal and external environmental factors affecting the production and business activities of raw tobacco of Ngan Son Joint Stock Company.
- To direct the strategy for raw tobacco of Ngan Son JSC from 2019 to 2025.
- To propose strategic solutions to develop production and business activities for raw tobacco of the company to 2025.
Research questions
To solve the problems of the thesis, the following research questions will be asked:
- What is business strategy? What factors affecting the selection of business strategy? What is the role of choosing, planning business strategy for business?
Ngan Son Joint Stock Company is currently navigating a complex production and business landscape for raw tobacco, shaped by various internal and external environmental factors The company's operational efficiency is influenced by market demand, regulatory changes, and supply chain dynamics, which collectively impact its production strategies and profitability Additionally, competition within the tobacco industry and shifts in consumer preferences play a crucial role in determining the company's business activities and overall success Understanding these elements is essential for Ngan Son to adapt and thrive in the evolving market.
To enhance the production and business activities of Ngan Son Joint Stock Company in the raw tobacco sector, a thorough assessment of the influencing factors is essential This evaluation will inform the development of targeted business strategies and effective solutions, ultimately driving growth and operational efficiency By addressing key challenges and leveraging market opportunities, the company can optimize its production processes and strengthen its competitive position in the tobacco industry.
Research object and scope
- Research object: Investment in planting tobacco crops and processing raw tobacco (supply of tobacco) of Ngan Son Joint Stock Company.
The research focuses on the operational dynamics of Ngan Son Joint Stock Company within the raw tobacco sector, analyzing its performance in relation to the broader tobacco industry Additionally, it examines the company’s strategic vision for 2025, highlighting key objectives and initiatives aimed at enhancing its market position and sustainability in the evolving landscape of the tobacco business.
Research methodology
1.5.2 Data collection and processing a) Data collection
To achieve the thesis's objective of examining the company's strategy, in-depth interviews will be conducted with senior leaders and experts to gain insights into its strategic direction.
- Secondary data: From production and business reports of the company and of the tobacco industry (as the tobacco industry is a specialized sector controlling
Studying theoretical frameworks, research models
- Data from in-depth interviews with company leaders and experts
- Data from industrial reports and Vinataba’s reports
Analyzing and evaluating external and internal environment factors affecting business and production activities of the company
A direct business strategy must align with the company's product volume and consider both internal and external factors that influence operational efficiency and production performance Effective data processing is essential to support these strategies and optimize decision-making.
- Analyze and synthesize the results and identify opportunities, threats, strengths and weaknesses in the company's operations.
- Synthesis to provide strategic solutions to develop company operations.
Research structure
The research structure consists of four chapters:
- Chapter 2: Theoretical background on business strategy
- Chapter 3: Analysis of factors affecting business strategy for raw tobacco of Ngan Son JSC.
- Chapter 4: Business strategy direction for raw tobacco by 2025 of NganSon JSC.
THEORETICAL BACKGROUND ON BUSINESS STRATEGY
Definition of business strategy
In the Harvard Business Essentials, strategy originates from a military term in Greece, signifying a plan for organizing and deploying forces to accomplish war objectives In contemporary society, this concept has expanded into various fields, particularly within the economic sector Fred R David (2016) emphasizes the importance of strategic management in navigating these complexities.
Competitive Advantage Approach, Concepts and Cases, Pearson, 17 th Edition, South Carolina, strategy is the means to achieve long-term goals.
Strategy involves planning the direction and methods to achieve specific objectives Business strategy, as defined by Bruce Henderson, founder of the Boston Consulting Group, is a meticulous search for an action plan that develops and integrates an organization's competitive advantages The distinctions between your organization and its competitors form the foundation of these advantages According to Harvard Business School professor Alfred Chandler, the interplay between strategy and structure is crucial for organizational success.
Business strategy, as defined by Martino Fine Books in "Chapters in the History of the Industrial Enterprise," is the process of establishing the long-term fundamental goals of a business It involves selecting a direction and allocating resources effectively to achieve those objectives.
In the current competitive landscape, a successful business strategy involves setting clear objectives, effectively planning, and allocating resources to establish competitive advantages that help achieve these goals efficiently.
Relationship between business strategy and other strategies
A company strategy is usually discussed in three aspects: company strategy, business strategy (competitive strategy), and function strategy.
A corporate strategy outlines the business sectors a company will engage in, detailing whether to collaborate with affiliates, operate independently, invest, or eliminate certain industries It sets the developmental direction for both single-sector and multi-sector businesses, where single-sector firms focus on one industry, while multi-sector entities face more complex decisions regarding their operations For instance, in a crisis, corporate strategy must identify which branches to retain or close, which new sectors to enter, and what targets to pursue Ultimately, it encompasses the identification of financial and non-financial goals, emphasizing the allocation of resources to ensure effective business activities and strategic decision-making.
A business strategy defines how a company competes within a specific industry, establishing a competitive advantage essential for sustainable development This competitive strategy involves creating a valuable position by identifying target customers and delivering unique value It encompasses a blend of specific activities and processes across the organization, ensuring that all efforts are aligned to strengthen the company's competitive position.
Business-level strategy outlines how a company can effectively achieve its objectives and support overall corporate strategy within its industry These strategies are crucial not only for individual business units but also for companies operating across multiple sectors.
Function strategy plays a crucial role in supporting both corporate and business strategies, maintaining similarities across single-sector and multi-sector business units These strategies serve as the foundation for various essential strategies, including marketing, financial, research, and operational strategies, all aimed at enhancing the company's competitive advantage By linking and analyzing function strategies, businesses can better understand how each function aligns with the overall competitive strategy, emphasizing the importance of coordination and integration among different functions.
Process to direct the business strategy
In the Harvard Business Essentials, the business strategic planning process is illustrated in the figure below
Figure 2.1: Business strategic planning process
2.3.1 Identify the mission of the business
Every business operates with a core mission that guides all its activities Consequently, the business strategy should be rooted in this mission, serving as the foundation for strategic decisions Ultimately, the purpose of the strategy is to achieve and fulfill the overarching mission of the business.
Therefore, the first step in the strategic planning process is to determine what the mission of the business is.
The next crucial phase in business strategic planning involves defining the company's goals These goals serve as the primary targets that the business strives to achieve, forming the foundational basis for developing an effective business strategy.
The mission of a business provides a broad overview of its purpose, while specific goals clarify that mission For instance, a bank's mission is to mobilize capital and provide loans, and its goals would detail the extent of this mobilization and lending, including metrics such as the volume of funds, duration of loans, and the demographics of its customers.
A business's goals are shaped by its mission and influenced by both internal and external environmental factors These goals should align with objective realities and subjective conditions, allowing for adjustments based on the surrounding environment.
2.3.3 Analyze internal and external environment
A business operates within a specific environment shaped by both subjective (internal) and objective (external) factors To effectively analyze these internal and external environmental elements, businesses can utilize existing data and conduct research surveys from both internal and external sources.
Figure 2.2: Operating environment of the business
Internal environmental factors play a crucial role in influencing a business's production and operational activities, encompassing both positive and negative elements Positive factors, or strengths, include a skilled and professional workforce, advanced production technology, ample financial resources, and a reputable brand Conversely, negative factors, or weaknesses, may involve outdated production methods and restricted financial capabilities Understanding these factors is essential for businesses to leverage their strengths and address their weaknesses effectively.
It can be said that the analysis of internal environmental factors is the analysis of strengths and weaknesses of the business.
To evaluate business strengths, we consolidate the advantages of the company, conduct a comparative analysis with competitors, and assess the impact of each factor on creating a competitive edge This process also identifies the key factors that provide the most significant advantages, which should be leveraged for optimal business growth.
To effectively analyze business weaknesses, we compile and assess all factors contributing to these vulnerabilities, comparing them against competitors This evaluation allows us to determine the severity of each weakness on the company's operations, highlighting the most detrimental factors that require immediate attention and action.
The basic internal environmental factors are:
- Human resources and organization: Including the following factors: Human resources quality, human resources structure, human resources maintenance and development policy, etc.
- Financial resources: Including the following factors: Financial capacity, financial management, accounting system, etc.
- Production capacity: Including the following factors: Production technology line, production scale, product quality, production cost, etc.
- Management capacity: Including the following factors: Capacities of production management, quality management, business management, human resources management, materials management, etc.
- Marketing and sales: Including the following factors: Market development research, distribution channels, after-sales service, etc.
External environmental factors significantly influence the production and business activities of enterprises, encompassing both positive and negative impacts Positive factors, or opportunities, include heightened market demand, supportive government policies, and favorable macroeconomic regulations Conversely, negative factors, or threats, consist of declining market demand, the emergence of new competitors, and rising material costs.
It can be said, analysis of external environmental factors is the analysis of opportunities and threats of the business.
To effectively identify business opportunities, it is essential to assess external environmental factors that can create potential advantages This involves analyzing and evaluating these opportunities to determine which ones the organization should prioritize and pursue at that moment.
To effectively analyze threats, we gather and evaluate all external factors impacting the business, assessing their potential negative effects on operations This process identifies the most detrimental factors that require immediate attention and avoidance, ensuring a proactive approach to risk management.
The external environment can be divided into two types, macro environment and micro environment.
The macro-environment significantly influences a business's operations and production capabilities, encompassing key factors such as economic conditions, political landscapes, technological advancements, and socio-cultural dynamics These elements can be effectively analyzed using PEST analysis, providing insights into how external forces impact enterprise performance.
Political factors ã Issues of ecological environment ã Current and future legal environment ã International legal environment ã Management agency and work process ã Government policies ã Term of government and changes ã Commercial policies
Economic factors significantly influence both the national and global economic landscape, including prevailing economic conditions and trends Taxation issues, both general and specific to products and services, play a crucial role in shaping market dynamics Seasonal weather variations and market cycles also impact consumer behavior and demand Additionally, factors such as economic sector performance, distribution trends, and customer preferences are essential for understanding market fluctuations Interest rates and exchange rates further affect monetary conditions, ultimately influencing overall economic stability and growth.
Socio-cultural factors play a significant role in shaping lifestyle trends and demographic shifts, influencing customer attitudes and opinions The impact of mass media and legal changes on society cannot be overlooked, as they contribute to evolving brand images and shopping trends Additionally, current events and ethical considerations further affect consumer behavior and market dynamics.
Technological factors play a crucial role in determining whether a business is independent or dependent on technology Funding for research and development is essential to drive innovation and find solutions that can replace outdated technologies The sophistication level of technological advancements directly impacts production capacity and efficiency Effective information and communication technologies are vital for optimizing purchasing processes Additionally, legislation related to technology shapes the landscape for innovation, while strong intellectual property protection fosters an environment conducive to technological advancement and creativity.
Source: Strategic Management Textbook – National Economics University
Micro-environment factors: Mainly competitive pressure, in the market economy, enterprises often face up with competitive pressures A very effective tool for analyzing competitive pressures is Porter's five-force model.
Figure 2.3: Porter’s five-force model
Factors affecting business strategy
These are the factors within the business, including positive factors (strengths) and negative factors (weaknesses), such as financial resources, human resources, geographic location or technology, etc.
Enterprises possess various strengths that enhance their production and business capabilities, including high-quality human resources, robust financial capital, advanced technology, and a well-known brand To effectively leverage these strengths, businesses should identify and evaluate their core competencies, enabling them to promote their unique advantages in the market.
Core competencies serve as the essential foundation for strategic planning and adjustments within a company, highlighting its unique expertise and skills across key business operations These competencies provide the company with a competitive edge, which is highly valued by customers As noted by David Collis and Cynthia Montgomery, core competencies are recognized for their significance in various critical areas.
+ Being difficult to be imitated or copied by competitors
+ It is really competitive compared to other competitors
Every enterprise has weaknesses that can hinder its competitiveness against rivals, including outdated technology, ineffective management, and limited financial resources It is crucial to identify and evaluate these weaknesses to determine the most significant challenges facing the business By assessing each weakness, companies can prioritize which issues require immediate attention and develop targeted recommendations for improvement.
They are objective factors from the outside of the business environment that can negatively or positively affect the business, which poses threats and opportunities for the business.
Opportunities refer to favorable external factors that businesses can leverage for growth, including rising demand, new government policies, and advancements in science and technology.
- THREATS: These are factors from the external environment that can threaten the development of enterprises, such as increased competition, changes in government policies, fluctuating raw material prices, etc.
Strategies from the SWOT matrix:
S – O STRATEGY: Promote strengths to take advantage of opportunities
S – T STRATEGY: Promote strengths to avoid threats
W – O STRATEGY: Overcome weaknesses to take advantage of opportunities
W – T STRATEGY: Overcoming weaknesses to avoid threats
Matrices and how to choose a business strategy
2.5.1 External Factor Evaluation (EFE) matrix
External factor evaluation matrix is a matrix that evaluates external factors that affect the company's operations, including the opportunities and threats to the company.
Listing of Key External Factors (10-20):
In this step, we identify the key external factors that influence the External Factor Evaluation (EFE) matrix, focusing specifically on threats and opportunities It is essential to consider these elements carefully to ensure a comprehensive analysis.
Assigning of Weight to Each (0 to 1.0):
In the second step of creating the External Factor Evaluation (EFE) matrix, identified factors are organized based on their weighted importance, expressed in percentage terms It is crucial to ensure that the total sum of all weights equals one, reflecting the relative significance of each factor in the analysis.
Assigning of 1-4 rating to each factor:
Each factor in this step should be assigned some rating which ranges from 1 to 4 These rating are based on the responses of organization to the factors under consideration.
Multiplication of Weight of Each Factor by its Rating:
In this step the weight assigned to each factor is multiplied to it’s the rating assigned to it This generates a weighted score.
Summing up of the Weighted Score of Each Factor:
In the final stage of the External Factor Evaluation (EFE) matrix, the weighted scores of each factor are totaled to determine the organization's overall weighted score The highest achievable score is 4.0, while the lowest is 1.0, with an average score of 2.5.
A total score of 4 indicates that the company excels in seizing opportunities and managing external threats effectively Conversely, a score of 1 reveals the company's struggle to capitalize on opportunities and its inability to mitigate external threats.
Table 2.2: External factor evaluation matrix External environment factors Weight Rating Weighted score
2.5.2 Internal Factor Evaluation (IFE) matrix
Internal factor evaluation matrix is a matrix that assesses the internal factors that affect the company's operations, including the strengths and weaknesses of the company.
Similar to EFE matrix, IFE matrix can be developed in five steps:
List the key internal factors as identified in the internal audit process, including both strengths and weaknesses.
To evaluate the significance of various factors in a firm's industry, assign each a weight between 0.0 (not important) and 1.0 (very important), reflecting its relative importance for success Typically, opportunities are weighted more heavily than threats, and the total of all assigned weights must equal 1.0.
To evaluate the effectiveness of the firm's current strategies, assign a rating from 1 to 4 for each key internal factor, with 4 indicating a superior response, 3 representing an above-average response, 2 denoting an average response, and 1 reflecting a below-average response This systematic approach allows for a clear assessment of how well the strategies align with internal factors.
Multiply each factor’s weight by it rating to determine a weighted score.
Sum the weighted scores for each variable to determine the total weighted score for the firm.
A total score of 4 indicates that the company possesses significant strengths that enable it to effectively address its weaknesses Conversely, a score of 1 suggests that the company lacks strengths and is unable to overcome its weaknesses.
Table 2.3: Internal factor evaluation matrix Internal environment factors Weight Rating Weighted score
SWOT matrix is a tool that brings together internal and external environmental factors and integrates those factors into business strategies as follows:
Source: Management Textbook – National Economics University
The Quantitative Strategic Planning Matrix (QSPM) is a valuable quantitative tool that evaluates the attractiveness of different strategies By offering an objective framework for decision-making, it aids in the selection of the most suitable strategies for an organization.
The QSPM matrix leverages insights from the External Factor Evaluation (EFE), Internal Factor Evaluation (IFE), and SWOT analysis to assess alternative strategies objectively It is important to note that not all strategies identified in Phase 2 are included in the QSPM matrix.
To build QSPM matrix, it is necessary to perform 6 steps:
Step 1: List the major external threats/threats and important internal weaknesses in the left column of the QSPM matrix This information should be taken directly from the EFE and IFE matrix The QSPM matrix should include a minimum of 10 important external success factors and 10 important internal success factors.
Internal factors of the IFE matrix Taken from the EFE and IFE matrix
From 1 to 4 From 1 to 4 From 1 to 4
External factors of the EFE matrix
Step 2: Classify each key success factor inside and outside.
Step 3: Study the matrixes in phase 2 (combined) and identify alternative strategies that the company should consider to implement.
Step 4: Determine AS (AT - Attractiveness Scores) for each factor: Rated from 1 to 4 The scores are from 1 = not attractive, 2 = somewhat attractive, 3 reasonably attractive, 4 = highly attractive.
Step 5: Determine total attractiveness scores (TAS) for each row by multiplying weights in step 2 by scores in step 4.
Step 6: Calculate total attractiveness score of each strategy This is the sum of all attractiveness scores in the strategic column of QSPM matrix The total attractiveness score represents the most attractive strategy in each selective strategy group In terms of all important internal and external success factors that may influence strategic decisions, the higher the score, the more attractive the strategy is.
Some experiences in building business strategy
Developing a robust business strategy is essential for organizations, yet it poses challenges due to the numerous factors it must consider These include historical data, current market conditions, future predictions, and specific industry characteristics, all of which play a crucial role in determining the most effective approach.
We can draw on the experience for developing a suitable business strategy as follows:
First of all, it is necessary to have a process to develop an appropriate business strategy
The goal set out should be in line with the situation of the unit and its external environment factors, avoiding unrealistic or inadequate goals.
Collect and analyze information to find the strengths of the unit to exploit as well as the weaknesses to overcome.
Accurately assess the opportunities and threats in the market.
Because the resources of the business are limited, focus only on the most effective strategies and ensure the consistency of strategies and solutions.
ANALYSIS OF FACTORS AFFECTING BUSINESS
Overview of Ngan Son Joint Stock Company
3.1.1 History of establishing, construction and development
Bac Tobacco Material Company, founded in 1993, originated from the merger of several tobacco production sectors, including Thang Long Tobacco Factory, Bac Son Tobacco Factory, and Ha Nam Ninh Tobacco Material Enterprise The company specializes in the production, processing, trading, and export of tobacco products, while also managing and investing in small tobacco cultivation areas.
Ba Vi, Ha Tay, Soc Son, Hanoi City, Huu Lung in Lang Son Province, and Tam Dao in Vinh Phu Province encompass an investment area dedicated to tobacco cultivation, covering just 336 hectares The region has adopted a policy of centralized management and specialization in the production and processing of tobacco raw materials in Northern Vietnam.
From 1999 to 2004, the company merged with Thanh Hoa Tobacco Factory and Lang Son Tobacco Company In 2000, the Vietnam Tobacco Corporation approved a project for a 2T/h processing line in Bac Ninh, which was established by transferring equipment from Nam Tobacco Material Company (now Hoa Viet Joint Stock Company) The processing line commenced operations in July 2004 Subsequently, on May 13, 2005, the Minister of Industry signed Decision No 1738/QD-TCCB, followed by Decision No 2203/QD-TCCB on July 4, 2005, which amended the original decision to officially transform Bac Tobacco Material Company into Ngan Son Joint Stock Company.
Ngan Son Joint Stock Company was granted business registration certificate
On August 31, 2005, the Hanoi Department of Planning and Investment issued registration No 0103009019, establishing the company with a chartered capital of VND 27.9 billion The company was officially listed on the Hanoi Stock Exchange on December 29, 2006.
Ngan Son Joint Stock Company, located in Tien Son Industrial Park, Bac Ninh Province, operates six branches focused on the management, investment, and purchase of tobacco leaves across Northern provinces, employing nearly 400 individuals The company has seen its chartered capital grow from VND 27.9 billion to VND 112.02 billion by January 2017, with Vietnam Tobacco Corporation (Vinataba) holding a majority stake of 55.7% In September 2012, Ngan Son launched a European-standard production line for tobacco material, boasting a capacity of 5.3 tons per hour, equating to 24,000 tons annually.
3.1.2 Role of Ngan Son Joint Stock Company in the tobacco industry of Vietnam
Since its public listing, Ngan Son Joint Stock Company has established a significant presence in Vietnam's tobacco raw materials sector, managing six branches across northern provinces and a processing enterprise in Bac Ninh The company supports farmers in cultivating approximately 6,000 hectares of tobacco, yielding around 10,000 tons of dried leaves annually, while providing stable employment for over 20,000 agricultural workers, thereby aiding poverty reduction and crop diversification Ngan Son prioritizes social responsibility, actively contributing to local infrastructure, education, and social security with investments worth tens of billions To promote environmental sustainability, the company has supplied 6.3 million seedlings valued at VND 2.2 billion and implemented ISO 14000 standards for environmental management By modernizing production lines and integrating advanced agricultural technologies, Ngan Son enhances commodity value and supports farmers, fostering sustainable development in the tobacco industry.
The organizational structure of Ngan Son Joint Stock Company is described in detail in Figure 3.1.
The company's organizational structure is designed in an online-functional format, comprising a General Assembly of Shareholders, a Board of Directors, a Board of Supervisors, a Director and Deputy Directors, along with eight specialized departments.
The company operates a material processing factory along with six affiliated branches, structured not only formally but also through Party and mass organizations, including the Trade Union and Youth Union, which function across all units Since 1997, the company has implemented a Collective Labor Agreement, which is revised annually to align with its evolving production and business activities.
Figure 3.1: Structure of Ngan Son Joint Stock Company
Source: Ngan Son Joint Stock Company
The Board of Directors appoints the Director and Deputy Directors to oversee all company activities, in line with their resolutions Supporting them are specialized functional departments and boards that manage direct production units across various sectors, including agriculture, industry, and trade This management decentralization empowers unit heads to take initiative and responsibility, enabling them to effectively mobilize resources and execute production and business tasks efficiently.
Organizational structure of the company:
The General Assembly of Shareholders serves as the supreme authority within a company, responsible for determining its long-term development strategy Key decisions are made through voting, with resolutions requiring over 51% approval to pass Additionally, the General Assembly elects both the Board of Directors and the Board of Supervisors.
The Board of Directors serves as the company's management body, led by the Chairman It functions in compliance with the Law on Enterprises and the company's Charter.
The Board of Supervisors: The Board of Supervisors is elected by the
General Meeting of Shareholders, headed by the Chief of the Board of Supervisors.
Director and deputy directors: To run the company's operations.
Professional departments: There are 8 departments
1 Planning and Material Department: Advising, consulting and managing the following areas: Building and directing the implementation of the plan; Reporting on the production and business situation; Regulation of industrial production; Supplying materials for investment and production; Management of Tien Son Warehouse; Management of investment in capital construction, regular repair work.
2 Finance - Accounting Department: Advising, consulting and managing the following fields: Finance - accounting; Financial management; Cost and price management; Statistical and analytical works related to finance and accounting; Construction development and investment; Inspection; Preparation of financial statements and accounting vouchers.
3 Organization and Human Resources Department: Consulting, advising and managing fields: Human resources management and organization; Recruitment and training; Labor protection; Labor, wage and policy; Emulation, commendation and discipline.
4 Administration Department: Advising, consulting and managing the following areas: Office administration; Administration management; Internal protection.
5 Engineering Department: Advising, consulting, managing the following areas: Planting area development planning; Technical management and investment in production of raw tobacco materials in the planting area.
6 Sales Department: Advising, consulting and managing the following areas: Business consumption of products, import-export work; Marketing; Market.
7 Department of Product Quality Control: Quality inspection of products, equipment, materials, tools; Quality management system.
8 Research and Development Department: Researching and developing new products, improving existing products owned by the company; Evaluating the process of producing products, quality of finished products on the processing line and formulating the formula for each type of product.
9 Subsidiaries: 01 processing factory and 06 branches
The processing factory is responsible for planning and managing the production process that transforms raw tobacco leaves into finished tobacco raw materials for both domestic use and export This involves adhering to the company's production and business plan while effectively managing machinery, equipment, and processing lines.
- Branches: Planning and managing the investment, planting, purchasing,decentralizing of bales of tobacco raw materials; storage of goods at satellite warehouses.
Working with customer Investing in planting Putting into warehouse
3.1.4 Process of technology, main products of the company
3.1.4.1 Main products and services of the company
- Material tobacco leaves: Grown in raw material areas such as Bac Kan,
Lang Son, Bac Giang and Thai Nguyen The above products are of suitable quality and meet the production demands of domestic and foreign tobacco companies.
Business analysis
3.2.1.1 Analysis of macro-environmental factors (PEST)
In the early 21st century, Vietnam significantly integrated into the global economy, implementing market opening policies that facilitated the smoother circulation of goods, including tobacco products.
The tobacco industry is under growing pressure due to public opinion regarding the health risks associated with tobacco use Following Vietnam's ratification of the General Covenant on Tobacco Control in December 2004, the government is committed to implementing effective measures aimed at significantly reducing tobacco consumption and mitigating its harmful effects on public health.
The Government of Vietnam is enhancing the legal framework governing the tobacco industry by amending relevant regulations to ensure competitiveness These measures aim to enable state control over tobacco production and consumption while fulfilling Vietnam's commitments in international economic integration.
To limit tobacco usage, the State revised its tax policy by implementing a special consumption tax with three tiers: 25%, 45%, and 65%, determined by the percentage of imported materials in tobacco production In 2006, the special consumption tax was adjusted to 55%, and in 2008, it was increased to a uniform rate of 65% for all tobacco products.
Directive No 12/2007/CT-TTg, issued on May 10, 2007, enhances tobacco control efforts by implementing stricter regulations for enforcing smoking bans in workplaces and public spaces It also intensifies oversight of tobacco businesses and introduces additional rules to prohibit tobacco advertising, promotion, and marketing activities.
The Government's Decree No 67/2013/ND-CP replaced Decree No 119/2007/ND-CP, establishing a legal framework for tobacco production and trading amid international economic integration While the earlier decree facilitated new investments and foreign joint ventures in the tobacco sector under strict conditions, Decree No 67/2013/ND-CP imposed more stringent regulations that hindered the growth of tobacco cultivation and business by detailing measures for tobacco harm prevention Following four years of implementation, numerous complaints arose, prompting the Government to issue Decree No 106/2017/ND-CP on September 14, 2017, to amend and supplement certain provisions of the earlier decree.
Investment in tobacco product production should align with the approved strategy and master plan of the tobacco industry It is essential to refrain from new constructions or expansions that exceed the Ministry of Industry and Trade's established total production capacity for domestic consumption However, the implementation of these guidelines at the local level has been inconsistent.
Vietnam's ongoing commitment to trade agreements, particularly the liberalization of the tobacco market and the elimination of tariffs and non-tariff barriers, is influenced by political and economic instability in various countries, directly affecting both domestic and export tobacco consumption Furthermore, the mandatory warning labels on tobacco packaging since December 2013, along with a ban on tobacco advertising in media, have contributed to a decline in tobacco consumption, adversely impacting the demand for tobacco raw materials.
The State's policy on agricultural product imports, outlined in Decree No 114/ND-CP dated November 27, 2013, significantly influences the importation of tobacco raw materials for production Medium-priced tobaccos imported from China maintain a competitive edge over those processed by domestic tobacco companies in Vietnam.
Over the past five years, Vietnam's GDP growth has consistently remained below 6%, reflecting a decline compared to the previous decade's expansion Despite this slowdown, there has been a notable improvement in the income levels of the population.
The 2008 global financial crisis significantly impacted Vietnam's GDP growth, alongside many other nations Additionally, in 2016, natural disasters and environmental incidents severely affected the agro-forestry-fisheries sector, resulting in negative growth during the first half of the year.
Year quarter 1 Year quarter 2 Year quarter 3 Year quarter 4 Whole year
Figure 3.3: Vietnam's average GDP for the period of 2015 - 2016
In 2016, despite a growth rate of 6.68% falling short of the 6.7% target and being lower than the previous year's increase, the General Statistics Office highlighted this achievement as a success given the challenging global and domestic economic conditions.
According to the General Statistics Office, the consumer price index (CPI) in
In 2016, the Consumer Price Index (CPI) is projected to rise by 4.74%, reflecting an average monthly increase of approximately 0.4% This indicates an estimated average CPI increase of 2.66% compared to 2015, although it remains significantly lower than the average CPI levels recorded in recent years.
GDP per capita is forecast at $2,200 Vietnam is a country with low average income but the economy is relatively diversified and flexible.
Over the past 14 years, although GDP growth was not so high and the dong depreciated significantly against the US dollar, per capita income was still growing.
From 2015 to 2018, the average GDP per capita is projected to increase by 8.49% annually, while inflation is expected to remain at 5.00% per year, suggesting a consistent enhancement in purchasing power during this period.
In 2016, FDI inflows to Vietnam reached US$ 20.9 billion, decreased by 8%; disbursed capital was $15.8 billion, increased by 9% over 2015’s, reaching the highest disbursement ever.
Vietnam is a tropical country with lowlands, hills, many plateaus with dense forests.
The Northern Mountains experience a tropical monsoon climate with cold winters, significantly shaped by the mountainous terrain The North-Eastern region, although not high in elevation, is heavily impacted by the northeast monsoon, resulting in the coldest winters in the country In contrast, the Northwest, while also affected by the northeast monsoon to a lesser extent, experiences cold winters due to its high altitude This unique climate allows the Northern Midlands and Mountains to excel in the cultivation of subtropical and temperate industrial crops The notable temperature variation between day and night in this region gives locally grown tobacco a distinctive flavor, setting it apart from tobacco produced in other areas.
Vietnam is ranked 13th in the world with nearly 92.5 million people By
BUSINESS STRATEGY DIRECTION FOR RAW TOBACO
Basic contents of the strategic framework
The mission of Ngan Son Joint Stock Company is fundamental to its existence and strategic deployment, serving as a unifying force for employees and engaging stakeholders By 2025, Ngan Son JSC aims to achieve significant results aligned with this mission.
Providing Qualified and Safe tobacco products for domestic and international customers, affirming Ngan Son Brand.
This main mission is concretized as follows:
- To ensure sufficient supply of tobacco raw materials in terms of quantity and quality for tobacco companies inside and outside Vietnam Tobacco Corporation.
To promote stability in tobacco-growing regions, it is essential to align with Vietnam's planning and development strategies for tobacco raw materials This approach aims to enhance efficiency while prioritizing environmental sustainability and social responsibility for the communities residing in these areas.
To enhance the productivity and quality of tobacco plantations in Vietnam, it is essential to focus on developing local resources This initiative will create jobs and alleviate poverty in the northern mountainous regions while promoting the domestic tobacco industry By prioritizing the use of local materials and reducing reliance on imports, we can conserve foreign currency and support sustainable agricultural practices.
- To bring Vietnam's agricultural products as tobacco raw materials into the world market, contributing to raising the country's foreign currency, creating a link in the value chain of tobacco.
An analysis of socio-economic development trends and the current status of Ngan Son Joint Stock Company, as outlined in two strategic reports, reveals a clear vision for the company's future growth and sustainability.
By the year 2025, Ngan Son Joint Stock Company will be the leading supplier in Vietnam of tobacco raw materials and related products to domestic and foreign customers.
Ngan Son Joint Stock Company, like any enterprise, must focus on essential values such as productivity, quality, and efficiency However, it is crucial for the company to establish its unique core values By 2025, Ngan Son Joint Stock Company should prioritize three key core values to guide its operations and strategy.
Ngan Son Joint Stock Company relies on three core values that are essential for achieving its mission and vision These values are fundamental to the company's operations and success.
1 Dedication: Each staff of Ngan Son Joint Stock Company always has attitudes and spirit of devotion and dedication to each assigned duty and task; keeping track of the location, market and partners, customers of the company. Acting with a high sense of responsibility for the organization, for the team, colleagues and themselves.
2 Creativity: Continuously innovate through innovations, even the smallest ones, to create superior results against competitors and conquer partners and
SUSTAIN ABILITY SUSTAIN ABILITY customers with constant differences including how to think, how to do it, how to deal with problems, how to make decisions.
3 Sustainability: Willingness to cooperate, share and work in teams effectively to be able to succeed together Recognizing the relationship between production, business and services with sustainable development of the company and its partners as well as the society Balancing benefits between short and long term, between price and tangible as well as intangible value.
- To become a public company with substantial ownership of strategic investors good at raising capital and consumption markets.
To maintain its significant role in the Vietnamese tobacco industry, it is essential to excel in production, processing, trading, and services Additionally, the goal is to remain the top exporter of tobacco raw materials in Vietnam.
To enhance production capacity and optimize business and service operations, it is essential to elevate the stock market value of shares in alignment with the company's resources and potential.
- To optimize the interests of shareholders.
- To strive to follow the orientation and content of raw material development strategy as stated in “Vietnam Tobacco Corporation Development Strategy to
2025, Vision to 2030” and “Vietnamese Tobacco Regional Development Plan up to 2020” approved by the Ministry of Industry and Trade in Decision No 1331/QD-
BCT dated 18th April 2017 and Decision No 1988/QD-BCT dated 1st April 2013.
- To continue implementing “Scheme on development of tobacco raw material areas up to 2020, with a vision toward 2030”.
By 2025, the goal is to achieve an annual output of 16,000 tons of tobacco leaves, necessitating an expansion of the tobacco cultivation area to 6,500 hectares It is essential that at least 50% of this area is dedicated to high-quality tobacco varieties.
- To search, attract customers for industrial production to meet design capacity.
- The chartered capital is expected to reach 250 billion dongs in 2025
- To bring total revenue of 2,000 billion dongs by 2025
- Profit after tax will reach 55 billion dongs by 2025
- Dividend rate is at least 10% per annum
- To strive to achieve an average income growth of 9%/year
To achieve its strategic goals, Ngan Son Joint Stock Company should adopt a related diversification strategy, with the production of tobacco raw materials serving as a key focus This approach is informed by the outcomes of a SWOT matrix analysis and the established strategic objectives.
Strategy selection by using QSPM matrix
Based on the findings from the external factor evaluation (EFE), internal factor evaluation (IFE), and SWOT matrix analysis, the researcher developed the QSPM matrix, categorizing it into SO-WO and ST-WT strategic groups.
Through the QSPM matrix, the attractiveness of the strategies (07 strategies) were highlighted in order to recommend priorities for selecting the company's future strategy (by 2025).
By combining in-depth interviews with experts, the researcher constructed the QSPM matrix for the strategies as follows: a) QSPM matrix for SO - WO strategy group
The QSPM matrix for the SO - WO strategy group, presented in Table 4.1, indicates that the strategy focused on restructuring the management system and human resources holds the highest total attractiveness within this group.
Table 4.1: The QSPM matrix for the SO - WO strategy group
Strategy to improve the quality and stability of growing areas
Strategy on restructuring management system and human resources
AS TAS AS TAS AS TAS AS TAS AS TAS
Favorable geography and climate conditions
3 Entering into the international market 0.27 4 1 1 0 4 1 1 0 3 1
Competitive pressure from purchasing raw materials
9 GDP growth rate and per capita income 0.24 3 1 1 0 4 1 3 1 2 0
Source: In-depth interviews with experts (2018) b) QSPM matrix for ST - WT strategy group
The QSPM matrix for the ST - WT strategy group, presented in Table 4.2, highlights that the strategy focused on product diversification and the recycling of post-processing tobacco waste achieves the highest total attractiveness score within this group.
Table 4.2: The QSPM matrix for the ST - WT strategy group
Strategy for product diversification and recycling of post-processing tobacco waste
Strategy on research and development for applying scientific and technical advances
2 Favorable geography and climate conditions 0.53 3 2 2 1
3 Entering into the international market 0.27 2 1 2 1
4 Competitive pressure from purchasing raw materials 0.25 2 1 3 1
9 GDP growth rate and per capita income 0.24 3 1 1 0
Source: In-depth interviews with experts (2018) c) Evaluation
The QSPM matrix reveals that restructuring the management system and human resources holds the highest attractiveness score for Ngan Son Joint Stock Company Consequently, prioritizing the implementation of this strategy is essential for maximizing the company's internal resource strengths.
After that, the company continues to implement the following strategies, with the following recommended priorities:
- Strategy to improve the quality and stability of growing areas;
- Strategy on product diversification and recycling of post-processing tobacco waste;
- Strategy on research and development for applying scientific and technical advances.
Specific strategic direction
4.3.1 Strategy on restructuring management system and human resources a) Orientation
- Restructuring the management system towards the management of the company to operate more efficiently by applying the method of management coordination between function orientation and process orientation.
- Developing organizational structure combining organizational structure according to function and organizational structure according to profession.
To achieve cohesive management across the company and its subsidiaries, it is essential to balance oversight with the autonomy of each unit This approach allows for the effective utilization and management of raw materials, assets, capital, and human resources, fostering both initiative and flexibility within the organization.
A successful human resources strategy aligns with the company's strategic goals and methods, necessitating the establishment of comprehensive procedures and training systems This approach ensures effective implementation and optimal utilization of human resources, extending beyond mere policy introduction Key elements of this strategic orientation include the systematic development and retraining of personnel to meet organizational objectives.
Ngan Son Joint Stock Company prioritizes the development of a skilled and qualified workforce that aligns with its strategic production, business, and service goals The company is committed to enhancing human resources in accordance with its production and business development plans for each period.
To effectively achieve strategic objectives in human resource management, it is essential to establish a comprehensive system of regulations, procedures, and bylaws This approach should prioritize personnel management through the implementation of the balanced scorecard (BSC) framework and the utilization of key performance indicators (KPI) to monitor and enhance performance.
In the coming time, the company will focus on the following issues:
- Developing a management system that combines functional-oriented management and process-oriented management in which:
Functional-oriented management involves the strategic organization and management of tasks to optimize tangible resources for value creation within a company This approach entails clearly defining roles and responsibilities across various management levels, including divisions, departments, workshops, and individual positions Effective coordination among these entities ensures that the production and business processes are managed vertically, from company leaders down to each specific role.
Process-oriented management involves organizing and managing a company's management system based on established internal processes Written procedures regulate the utilization of tangible resources in production and business activities, emphasizing the importance of documented coordination between management levels, divisions, and job positions It is essential for company leaders and their teams to adhere to these processes to optimize resource use, ensuring the procurement of raw materials and services that meet both quantity and quality standards to satisfy customer demands.
Effective organization and management of a company are essential for achieving strategic objectives Implementing workflow guidelines across departments, subordinate units, and workshops ensures streamlined operations Additionally, developing clear procedures for coordinating activities among various divisions and job sites enhances collaboration and efficiency.
The management system encompasses essential documents such as the company's charter, development strategy, organizational structure, policies, rules, and regulations It also includes detailed descriptions of departmental duties, workshop guidelines, procedural manuals, ISO documentation, processes, and job descriptions, all of which are vital for ensuring efficient operations and compliance within the organization.
Revamping internal human resource management regulations is essential to align with the new organizational model and comply with legal standards The revised rules should reflect the company's operational characteristics, ensuring they are clear, strict, and easy to implement This approach will facilitate the effective reorganization of human resources toward the new strategic direction.
- Supplement lacking personnel policies following the trend of modern management and personnel policies that arise when implementing the restructuring of the company.
To achieve effective human resource management, it is essential to align strategies with the specific roles of each employee Identifying and addressing existing shortcomings and limitations in both human resource structures and management tools is crucial for optimizing overall performance.
- Annually, build up training programs for job positions requiring high professional skills and knowledge in the production and business chain of the company.
4.3.2 Improving quality and stability of the material growing area strategy a) Orientation
Consolidate and gradually increase the investment scale in high-quality planting areas with good farming conditions.
To enhance market competitiveness, it is essential to optimize the raw material procurement network in emerging regions, while also strengthening the management and oversight of raw materials.
Actively buy tobacco raw materials in a sufficient quantity and quality to meet the customers' requirements and the requirements of the tobacco production factories. b) Contents
Partnering with experienced collaborators is essential for acquiring land and investing in expansive tobacco farms These large fields should be suitable for mechanized processes, ensuring efficient cultivation, maintenance, harvesting, and drying of tobacco materials using optimal techniques.
Enhance the strengths in regions known for their agricultural reputation by promoting support for seeds, fertilizers, and cultivation techniques Focus on the preliminary processing of raw materials to maintain stability in cultivating areas, ultimately aiming to boost yields for farmers growing these essential materials.
Expand the scale of investment support in high quality tobacco growing areas with the aim of raising the rate of buying high quality ingredients up to 70%.
Enhance the comprehensive investment framework in plantation areas while effectively managing quality control Additionally, develop policies that promote proactive, flexible, and timely procurement of raw materials for subordinate units.
4.3.3 Product diversification and recycling of post-processing tobacco waste strategy a) Orientation
Product diversification with core content as the traditional product of tobacco leaves Develop tobacco leave products with distinctive characteristics, trademarks and geographical indications.
Development of new products, extracted from waste products and waste from the separation process.
Breakthrough product development, related to tobacco raw materials but with a new set of customers who requires a higher level of physical and psychological value of products. b) Contents
To meet the specialized demands of both domestic and international customers, it is essential to select high-quality tobacco varieties that are well-suited to the soil of each growing area, thereby diversifying product offerings.
Cooperate with market partners and brands to co-produce products from waste products and waste materials in the processing chain.
Cooperate with scientists and appropriate partners to develop new products that are highly commercially viable and have a potential market in the near future.
To invest in and put into operation tobacco-processing chains and add tobacco products circulated on the market.
Price strategy is implemented in a flexible direction gradually oriented towards market principles.
In transactions, prices are determined on the basis of ensuring the harmonious benefits of the parties concerned, taking into account the risk factors of producers in the planting areas.
The company's price strategy is shifted towards high quality, thereby encouraging partners to share the company's vision of nationally branded products. b) Contents
Solutions, organization and roadmap to implement the strategic orientations of
4.4.1 Solutions for restructuring to improve the effectiveness of corporate governance
The company will standardize and publish its management system documents, ensuring consistency across all areas, including the company charter, objectives, development strategy, and organizational structure This will encompass policies and internal governance regulations related to investment and procurement, expenditure management, recruitment, compensation, training, and dismissal of employees Additionally, it will outline the operational regulations for the Board of Directors and the Board of Supervisors, as well as occupational safety and health standards and internal inspection protocols A key focus will be the standardization of human resource management functions within the organization.
The company is modernizing its human resource management system by redefining its organizational model This transformation includes clearly outlining the functions, duties, responsibilities, and objectives of various departments and individuals Additionally, the standardization of positions and titles is emphasized, with a focus on developing professional capacities.
Standardizing and optimizing the workflow in production and business operations is essential for enhancing collaboration among different departments By establishing clear processes and quantifying service quality, companies can improve the efficiency and effectiveness of their functions, leading to better overall performance.
Formulating mechanisms and policies to help the management of the company to manage, appoint, arrange and transfer personnel within the company, to meet the needs of the company.
The company enhances human resource capacity through regular recruitment policies and procedures, ensuring quality management Annual assessments are conducted based on established performance standards, while a strong emphasis is placed on managing the Balanced Scorecard (BSC) and Key Performance Indicators (KPIs) to drive organizational success.
In order to attract talented people, the company builds attractive and fair working environment, knows the importance and respects talented people.
The company is committed to fairly compensating employees based on their contributions, while also adapting to state policies and utilizing advanced global management practices Additionally, effective financial management and accounting are integral to the company's operations.
The company has developed a new advanced accounting - financial management system consistent with the finance - accounting management system of Vietnam Tobacco Corporation, which is applied in the whole company.
Focusing on unifying the director's management of finance and accounting, optimizing assets, capital, capital mobilization, credit, financial investment and production and business efficiency of the whole company.
The Vietnam Tobacco Corporation has implemented standardized policies and procedures for financial management, operating expenses, cash flow, and investment budget management, ensuring compliance with national regulations across the organization.
Making it feasible and cost effective to invest capital in other businesses. c) Planning management
Planning and synthesizing production and business activities of the company,helping the management board to monitor the operation of the company for timely direction.
Establishing norms and costs in a scientific and reasonable manner.
Determining the price of goods and services in a modern and advanced mode.
To establish a robust information technology management system, it is essential to create a solid infrastructure for managing information, production, business, and service databases This approach enables the effective integration of IT advancements across the company's management processes Additionally, brand management plays a crucial role in communication, ensuring that the company's identity is consistently conveyed and strengthened.
Standardizing and professionalizing brand management, building brand for the company and its products, focusing on new and breakthrough products.
Standardizing, professionalizing communication activities, promoting brand, public relations (PR) in an internal and external manner e) Research, development and application
Concentrating on researching, developing new products, applying new technologies to serve the business activities of the company as a sustainable competitive advantage
Professionally organizing the application of new technologies and scientific and technological advances into workshops and raw material planting zones under the management of units attached to the company.
Effective management of the company's research and development infrastructure, including laboratories, measurement and analysis equipment, and production tools, is essential for fostering innovation and creating new and groundbreaking products Additionally, implementing robust internal controls ensures operational efficiency and enhances product development processes.
Improvement of the internal control system for the company, including controllers, policies, procedures and internal control procedures.
Enhancing content and executing internal control programs in alignment with the master plan and annual internal control activity plans is essential for optimizing production, business, and service operations.
4.4.2 Solutions for development of raw material areas
Ensuring sufficient capital, human resources and equipment for raw materials branches, supporting farmers to invest in planting and purchasing materials with high efficiency.
Enhancing the autonomy and flexibility of raw materials sectors, prior to their integration into the company's framework, aims to boost initiative in executing the designated production and business plans for raw materials This strategy also focuses on expanding legal revenue streams.
Forming joint ventures and partnerships is essential for long-term land consolidation and the development of expansive tobacco farms This approach aims to mechanize tobacco cultivation and care while integrating high-tech agricultural practices to produce innovative products.
Focusing on investment support to expand area in the growing regions for high productivity and quality.
Coordinating well with the authorities, the farmers' association and the bank to provide low interest loans to farmers in order to compete with raw material traders.
Strengthening links with companies producing tobaccos to capitalize and produce raw materials to meet customers’ demand.
4.4.3 Solutions for product pricing in the direction of enhancing competitiveness
For new products and services, the pricing options offered can be flexible based on the following targeting options:
As the company expands its business and production, it will diversify its products and services Implementing a flexible and appropriate pricing strategy will provide competitive advantages both in the short and long term.
Based on the actual situation, i.e based on factors inside and outside company to apply appropriate price policy for each time or each stage.
To optimize the supply of raw materials for tobacco factories, it is essential to adopt a more flexible pricing policy that leverages the unique advantages of serving these traditional clients Additionally, implementing adaptable pricing strategies that align with price and quality coordination for potential new products can enhance sales opportunities and boost future profits Currently, these new products are sourced from foreign suppliers by tobacco manufacturers.
To effectively export tobacco raw materials, it is essential to adopt a competitive pricing strategy, as this serves as a crucial tool for securing and enhancing processing contracts with international partners.
4.4.4 Solutions for linking investment in production with consumption of new and breakthrough products
Seeking partners with prestigious brand and complementary capacity for new products of the company to together research and manufacture products from waste used to tobacco leaf processing.
Promoting and selling new products mainly through the distribution channel of the partners and directly to the target customers - users.
Setting up a breakthrough product team to carry out the following activities in a focused manner:
Collaborating with international experts and conducting research on innovative product breakthroughs enables the implementation of high-tech agricultural models, which are supported and funded by government capital.
- Building national brands for breakthrough products so as to boost consumption in the domestic market and boost exports to the international market in the future.
4.4.5 Solutions for domestic market development and export
Concentrate on investing, purchasing and processing intermediate and high- grade products for supply to tobacco factories under Vietnam Tobacco Corporation.
Maintain and expand the middle-class product range by stabilizing quality and competitive prices with external competitors, through major foreign raw materials suppliers for export.
Develop a roadmap for the development of new products that meet the quality requirements of domestic tobacco factories to increase market share.
Build and develop a market for new and breakthrough products invested by the company.
IN-DEPTH INTERVIEWS FOR EXPERTS ON EXTERNAL
The article explores how internal factors impact the business strategy and competitiveness of Ngan Son Joint Stock Company Participants are invited to respond by indicating their choices for each question, highlighting the company's stance on these internal influences.
1 Importance of internal factors of the company
Scoring factors on a scale from 0 to 1, the total score is 1.00
2 Level of response to the internal factors of the Company
Bad Normal Rather good Good
Key factor Option Internal environment
To enhance the effectiveness of a company's business development strategy, it is essential to consider additional factors that could contribute to its success Suggestions for improving the evaluation process should focus on identifying key elements that drive growth and innovation within the organization.
Thank you for your cooperation!
SURVEY RESULTS FOR ATTTRACTIVENESS OF
The article addresses the impact of external factors on the business strategy and competitiveness of Ngan Son Joint Stock Company It invites responses by marking, numbering, or crossing (X) the appropriate options for each factor, reflecting the company's stance on these influences.
1 Importance of external factors of the company
Scoring factors on a scale from 0 to 1, the total score is 1.00
2 Favorable geography and climate conditions
3 Entering into the international market
4 Competitive pressure from purchasing raw materials
9 GDP growth rate and per capita income
2 Level of response to the external factors of the Company
Bad Normal Rather good Good
2 Favorable geography and climate conditions 1 2 3 4
3 Entering into the international market 1 2 3 4
4 Competitive pressure from purchasing raw materials 1 2 3 4
9 GDP growth rate and per capita income 1 2 3 4
To enhance the effectiveness of a company’s business development strategy, consider incorporating additional key factors and suggestions for evaluation Identifying market trends, understanding customer needs, and leveraging competitive analysis are crucial elements that can significantly contribute to strategic growth Engaging with stakeholders for feedback and continuously refining the strategy based on performance metrics will also ensure sustained success.
Thank you for your cooperation!
SURVEY RESULTS FOR COMPANY’S RESPONSE LEVEL
No Key factor CG1 CG
2 Favorable geography and climate conditions 0.12 0.16 0.2 0.18 0.2 0.18 0.12 0.1 0.18 0.2 0.1 0.08 0.16 0.12 2.1 0.15 0.15
3 Entering into the international market 0.07 0.1 0.1 0.05 0.06 0.1 0.06 0.1 0.08 0.1 0.08 0.07 0.08 0.07 1.12 0.08 0.08
Competitive pressure from purchasing raw materials
9 GDP growth rate and per capita income 0.1 0.09 0.06 0.1 0.1 0.1 0.08 0.08 0.16 0.05 0.06 0.08 0.06 0.05 1.17 0.08 0.08
SURVEY RESULTS FOR ATTTRACTIVENESS OF
Favorable geography and climate conditions
3 Entering into the international market 4 3 3 4 2 3 3 4 4 4 2 4 3 4 47 3.36 3.36
Competitive pressure from purchasing raw materials
9 GDP growth rate and per capita income 3 3 3 3 3 3 3 3 3 3 3 3 3 3 42 3 3
SURVEY RESULTS FOR COMPANY’S RESPONSE LEVEL
No Key factor CG1 CG2 CG3 CG4 CG5 CG6 CG7 CG8 CG9 CG10 CG11 Total coefficient