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 Company's current production is only one-third of its capacity, leading to an insignificant market share To improve its market position, the company must implement a growth strategy that focuses on intensive investments in expansion.
This thesis aims to develop effective business strategies for the growth of ICC Company The research has enhanced strategy formulation by providing recommendations and proposing an actionable plan that can be implemented to achieve these strategies.
O b je c tiv e s
The objectives of this thesis are to review business strategy theories, provide an overview of the shrimp farming industry in Vietnam, specifically in Quang Ninh, present an analysis of ICC Company and its business environment, and develop a suitable business strategy for the company's future growth Additionally, the study offers insights into the company's current strengths and weaknesses and identifies an action plan for production expansion.
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:
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The initial step involves reviewing theories of strategy and strategic management This study emphasizes a literature review of existing approaches to business strategy formulation, identifying a common process for developing effective business 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.
The case study of ICC Company includes interviews with the managers responsible for strategic planning, allowing for an in-depth analysis of their business strategies This analysis not only highlights effective strategies but also provides valuable recommendations for successful strategy implementation.
Data so u rce s
The theoretical review and collection of secondary data were conducted through extensive research of books, reports, newspapers, and internet sources Primary data was gathered via interviews with managers and key employees of the ICC company A significant aspect of this research is my personal experience within the company, which provided a deeper understanding of specific industry issues.
By examining the theory of strategy and strategic management, and understanding the impacts of the business environment, this thesis provides valuable insights for ICC Company in developing effective business strategies This theoretical framework can also be applied to other companies within the shrimp farming industry.
The study has limitations due to the small number of competitors analyzed in the local market Furthermore, the lack of detailed information and data on these competitors may not fully represent the competitive landscape of the industry.
The article discusses the development of effective business strategies within the shrimp farming industry, focusing specifically on the case of IC Company It emphasizes the importance of strategic planning in enhancing operational efficiency and market competitiveness By analyzing IC Company's approach, the article highlights key strategies that can lead to sustainable growth and profitability in shrimp farming The insights provided aim to guide other businesses in the industry toward successful strategy formulation and implementation.
This thesis aims to develop effective business strategies for the growth of the ICC company, with a methodology that can also be applied to case studies of other companies within the shrimp farming 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.
Chapter 3 examines ICC Company by analyzing its environment to identify external opportunities and threats, as well as internal strengths and weaknesses that inform the company's business strategy Additionally, the chapter provides recommendations for effective strategy implementation.
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.
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The significance of strategy and strategic management for organizational success is widely acknowledged in both academic literature and practical applications These elements are essential for organizations to achieve their objectives, enhance competitive advantages, and improve overall value.
In today's competitive business landscape, managers and employees at all organizational levels are increasingly pressured to assume strategic responsibilities It is essential for them to grasp both the concept and the process of strategic management.
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.
Strategy is a carefully crafted plan aimed at achieving specific long-term goals The term originates from the ancient Greek word "strategos," which combines "stratos" (meaning army) and "ago" (meaning to lead) Initially rooted in military applications, the concept of strategy has since been adapted for use in the business world.
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
In various contexts, there are common concepts related to strategy Firstly, strategy is a perspective that encompasses vision and direction Secondly, strategy is about positioning, reflecting decisions made to offer specific products and services in particular markets.
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 "
Developing a robust business strategy in the shrimp farming industry is crucial for companies like IC A well-defined strategy serves as a roadmap, outlining the steps needed to achieve specific goals and navigate challenges It involves a consistent pattern of actions over time, ensuring that the business can adapt and thrive in a competitive market By focusing on strategic planning, IC can enhance its operational efficiency and drive sustainable growth in the shrimp farming sector.
Strategy is the art of the general, focusing on how objectives will be achieved through broad, long-term planning It emphasizes resource deployment, while tactics concern the actual implementation of these resources In both business and military contexts, strategy serves as a bridge between policy and tactics, effectively linking ends with means Together, strategy and tactics create a cohesive approach to achieving goals.
Strategy is pervasive across all types and sizes of organizations, including small and large corporations, political entities, and social organizations It manifests at various levels within an organization Corporate strategy, determined at the highest management level, involves selecting the businesses in which a company should compete and allocating resources among them Business strategy focuses on competitive approaches within a specific market, while functional strategy pertains to the activities and operations of various functional 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
A business strategy combines investment decisions and the development of a sustainable competitive advantage It encompasses product and market considerations, investment intensity, and resource allocation The creation of a sustainable competitive advantage relies on leveraging a business's unique assets, technology, human resources, and effective management practices.
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
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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.
Competitive strategy involves the pursuit of a favorable competitive position within an industry, which serves as the primary arena for competition The goal of competitive strategy is to establish a profitable and sustainable position against the forces that shape industry competition.
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
Expected re s u lts
This thesis aims to develop effective business strategies for the growth of ICC Company The proposed methodology is anticipated to be successfully applied in case studies of other companies within the shrimp farming 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.
Chapter 3 presents an analysis of ICC Company, focusing on its environment to identify external opportunities and threats, as well as internal strengths and weaknesses that inform the company's business strategy Additionally, the chapter offers recommendations for effective strategy implementation.
Suggestion for future rese arch
S trate g y
Strategy is a carefully crafted plan aimed at achieving specific long-term goals The term originates from the ancient Greek word "strategos," which combines "stratos" (meaning army) and "ago" (meaning to lead) Initially rooted in military applications, the concept of strategy has since been adapted for use in the business world.
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
In various contexts, three common concepts of strategy emerge: first, strategy as perspective, which encompasses vision and direction; second, strategy as position, reflecting decisions to offer specific products and services in targeted markets.
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 "
Developing a robust business strategy is essential for success in the shrimp farming industry, as demonstrated by the case of IC Company A well-defined strategy serves as a roadmap, outlining the steps needed to achieve specific goals and navigate challenges It involves a consistent pattern of actions over time, ensuring that the company effectively moves from its current position to its desired future state By focusing on strategic planning, IC Company can enhance its operational efficiency and competitiveness within the market.
Strategy is the art of the general, focusing on how objectives will be achieved through broad, long-term planning It emphasizes the deployment of resources, while tactics deal with their implementation In both business and military contexts, strategy serves as a bridge between policy and tactics, effectively connecting ends with means Together, strategy and tactics work in harmony to achieve overarching goals.
Strategy is a fundamental aspect present in all types and sizes of organizations, including small businesses, large corporations, political entities, and social organizations It manifests at various levels within an organization Corporate strategy, which is determined at the highest management level, involves selecting the businesses in which a company should compete and how resources will be allocated among them Business strategy focuses on the competitive approach within a specific industry, while functional strategy pertains to the activities within functional areas of the organization.
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
A successful business strategy integrates investment decisions with the pursuit of a sustainable competitive advantage This strategy encompasses product and market selection, investment intensity, and resource allocation Additionally, developing a sustainable competitive advantage relies on leveraging a company's unique assets, technology, human resources, and effective management practices.
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
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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.
Competitive strategy involves identifying a favorable position within an industry, which is the primary arena for competition The goal of a competitive strategy is to create and maintain a profitable and sustainable position against the forces that shape industry competition.
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
Michael Porter identifies three generic strategies for gaining a competitive advantage in complex industry competition: cost leadership, differentiation, and focus These strategies can be implemented at the business unit level to effectively counteract the five competitive forces The four fundamental alternative competitive strategies include cost leadership, differentiation, cost focus, and differentiation focus.
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”
The article discusses the development of effective business strategies within the shrimp farming industry, specifically focusing on the case study of IC Company It highlights the importance of strategic planning in enhancing operational efficiency and market competitiveness By analyzing industry trends and challenges, the article provides insights into best practices for sustainable growth and profitability in shrimp farming Additionally, it emphasizes the need for innovation and adaptability in response to changing market demands and environmental factors.
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 focus strategy, also known as a niche strategy, is particularly advantageous for small firms but can be employed by any company, especially those that cannot pursue broad cost leadership or wide differentiation strategies Companies can adopt either a cost focus or a differentiation focus With a cost focus, a firm aims to be the lowest-cost producer within its specific segment, while a differentiation focus allows a firm to create competitive advantages through unique offerings tailored to that segment.
An effective generic strategy enables a firm to leverage its strengths and defend against the impacts of competitive forces Michael Porter emphasized that only one generic strategy alternative should be pursued for a specific product, rather than implementing a combination of strategies Therefore, organizations must consider their competencies and strengths when selecting the most suitable generic strategy.
Strategic m anagem ent
Strategic management is the process through which top management determines the long-term direction and performance of an organization It involves careful formulation, effective implementation, and continuous evaluation of strategies As such, strategic management serves as an objective, logical, and systematic approach to decision-making within an organization.
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 em e n t"
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Figure 1.2 A simplitìed vievv of the strategic managemenl process
A vision outlines aspirations for the future without detailing the methods to achieve these goals The most effective vision is inspirational, aiming for the best and the greatest outcomes A vision becomes clearer and more impactful when articulated as a mission statement.
A company's mission defines its purpose and serves as the foundation for its business vision The mission statement articulates the firm's core values and objectives, reflecting its commitment to evolving and pursuing future opportunities with a forward-looking perspective.
Strategic formulation involves identifying an organization’s external opportunities and threats, analyzing its internal strengths and weaknesses, generating alternative strategies, and selecting the most appropriate strategies to pursue.
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 nuin a g em en t"
The article discusses the development of a business strategy in the shrimp farming industry, specifically focusing on the case of IC Company It highlights the application of the Five Competitive Forces model, which serves as a valuable tool for industry analysis The five forces include barriers to entry, customer dynamics, and other critical factors that influence market competition.
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
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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.
Competitive forces exist in every industry and market, influencing the intensity of competition and, consequently, the profitability and attractiveness of that industry By utilizing insights from the Five Forces analysis, managers can determine how to influence or leverage specific characteristics of their industry to enhance their firm's position.
The article discusses the development of a business strategy within the shrimp farming industry, focusing specifically on the case of IC Company It highlights the importance of strategic planning in enhancing operational efficiency and competitiveness in this sector By examining IC Company's approach, the article illustrates how effective business strategies can lead to sustainable growth and profitability in shrimp farming The analysis emphasizes the need for innovation and adaptability to market changes, ultimately contributing to the overall success of the industry.
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.
Economists assess market rivalry through industry concentration indicators A high concentration ratio suggests that a few large firms dominate the market, indicating lower competitiveness within the industry Conversely, a low concentration ratio reflects a market characterized by numerous competitors, none of which hold significant market share, signifying a more competitive landscape.
The intensity of rivalry in an industry is often determined by the level of aggressiveness among firms seeking to gain a competitive advantage This rivalry is influenced by key industry characteristics, including the number of competitors present in the market.
Increased competition arises when numerous firms vie for the same customers and resources, intensifying rivalry within the industry This competition is particularly fierce when there are many small or similarly sized competitors Conversely, rivalry tends to diminish in industries dominated by a market leader, as they often control a significant share of the market.
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
If a firm's total costs are primarily fixed, it must operate near capacity to achieve the lowest unit costs To do this, the firm needs to sell a large quantity of products, which can lead to increased market share and heightened competition Additionally, the level of product differentiation plays a crucial role in this dynamic.
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.
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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.
Competition in an industry is not solely determined by existing rivals; the potential entry of new firms also impacts competitive dynamics New entrants can increase competition levels, which may diminish the overall attractiveness of the industry.
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 like public utilities are classified as natural monopolies because it is more efficient to have a single company serving the local market rather than allowing multiple companies to compete This structure helps to streamline operations and reduce costs Additionally, patents and proprietary knowledge play a crucial role in maintaining a competitive edge within these industries.
Ideas and knowledge that offer competitive advantages are regarded as private property, effectively preventing others from utilizing this knowledge and creating barriers to entry in the market.
Asset specificity refers to the degree to which a firm's assets can be used to produce different products Potential entrants often hesitate to invest in highly specialized assets due to the risk that these assets cannot be easily sold or repurposed for other uses Additionally, switching costs can further deter investment in such specialized assets.
Implementing the growth strateg y
3.3 lm plem entine the growth strategy
According to the strategic analysis, IC Company operates in an attractive industry with significant strengths and some weaknesses With the vision of becoming the leading shrimp producer in Quang Ninh province, it is recommended that IC Company intensively invest in growth strategies by strategically leveraging industry opportunities and focusing on its strengths The objective of this strategy is to increase the company's production capacity to 700 tons by 2015 and capture a market share of 9%.
The growth strategy aims to expand the business through two key approaches: increasing shrimp production and enhancing existing infrastructure The company plans to establish a new terminal area adjacent to the current one while also focusing on repairing, upgrading, or supplementing its infrastructure to support ongoing operations.
3.3.2 Solutions 3.3.2.1 Set Iip new ĩarming area
1C Company plans to invest in a new production line by utilizing its unused land and acquiring new machinery and equipment This initiative will require the recruitment and training of new employees Despite the significant expenses involved, this strategy is deemed appropriate due to the steady growth of local demand, which is expected to continue in the future.
The infrastructure has been in operation for six years and may not deliver optimal performance Therefore, the company should focus on repairing and upgrading its infrastructure, including stores, offices, roads, canals, and electricity networks Additionally, there is a need to construct new roads, stores, and settlement ponds to enhance overall efficiency and service delivery.
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Waste can occur in both production and administrative activities By examining operations, management can identify opportunities to reduce usage across all processes, even in small amounts Excessive waste not only wastes money and resources but also contributes to nutrient pollution in ponds and waterways Therefore, engineers must strictly control the feeding regime by accurately labeling small quantities at regular 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 recent years, 1C Company has established strong relationships with reliable suppliers, ensuring a consistent supply of high-quality post larvae and feed at competitive prices and timely delivery To maintain stable inputs for production, the company is focused on strengthening these valuable partnerships.
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 motivated workforce significantly enhances productivity and the quality of shrimp production Companies can employ various financial and non-financial strategies to boost employee motivation Creating a positive working environment is essential for fostering growth among all employees Additionally, recognizing individual contributions and offering incentives, such as performance-based bonuses or salary increases, can further encourage employees to perform at their best.
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
Building a robust business strategy in the shrimp farming industry is crucial for companies like IC To enhance employee skills, it is essential to provide on-the-job training and facilitate access to extension services and seminars focused on aquaculture Additionally, inviting aquaculture experts to train workers can significantly update their skills and knowledge, ensuring the company remains competitive in the market.
Depreciation Costs Payment Select contractor, suppliers
Civil engineers 13 new ponds Expanded warehouse
Purchase dept Modem eq uip m en ts
Efficiency Durability Easy-repair Recruit & train
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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.
The article explores the development of effective business strategies within the shrimp farming industry, focusing on the case study of IC Company It emphasizes the importance of strategic planning in enhancing operational efficiency and market competitiveness Key factors such as sustainable practices, technological innovation, and market analysis are highlighted as essential components for success in this sector The case of IC Company serves as a practical example of how tailored strategies can lead to growth and profitability in shrimp farming.
Figure 3.9 IC C o m p a n y ’s strategies im plem entation process
To successfully implement an expansion strategy, a company must develop a detailed action plan that includes specific action steps Each staff member is assigned responsibility for accomplishing these steps, with designated due dates and estimated resources required for each task Every division has its own specific work assignments, ensuring clarity in responsibilities Furthermore, the action plan should align with the annual business plan and budget to prevent unexpected budgeting issues.
Successful strategy implementation requires effective communication both vertically and horizontally Vertical communication fosters coordination and support among divisions and departments, while horizontal communication connects all teams across the organization To ensure the success of the strategy, it is essential for everyone within the organization to be actively involved in the process.
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 :
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Develop farmer organizations, such as groups or clubs, to promote education among shrimp farmers and workers This initiative aims to enhance the budget for aquaculture extension services and research institutions.
Encouraging the rationalization of production chains between shrimp farmers and exporters, along with hatcheries and suppliers of feed and other inputs, is essential It is important to enforce relevant legislation regarding quality control, particularly for post-larvae and feed Additionally, improving infrastructure in rural areas will support the industry Policies for the shrimp industry should be adjusted and complemented to promote sustainable development.
This chapter identifies various opportunities and threats based on the environmental scan, highlighting the strengths and weaknesses that characterize ICC Company's strategic situation By analyzing these factors using the SWOT profile and GE-McKinsey matrix, we can formulate appropriate strategies for the company.
A growth-oriented strategy serves as the roadmap for ICC Company's future development, achievable through the expansion of shrimp production and enhancements to current infrastructure This chapter provides valuable suggestions for implementing these strategies in alignment with the Government's administration.