Building business strategy period of 2011 - 2015 - Ben joint stock company

me Dean 'ONG TRINH www T, AO THAC griges.cduyn SEQUAN Email gamba IRIE KINEE DOANTL QUOC eriges.cduvn £1 ON dnniry (69, OW SS®]D) NVYDOUd VE GAONVACY IVdOTD | LOC Website: DAO CAPSTONE PROVECT REPORT BUILDING BUSINESS STRATEGY PERIOD OF 2011 - 2015 — BEN JOINT STOCK COMPANY Nguyen Thi Kim Anh Phung Thi Thu Ha Vu Danh Hiep Do Thi Hoa GaMBA 07.09 - HANOI 2011 TE yf Galas MN bob tw gl ti \/ {07 \U 112 —————————ễễễễễễ—— CAPSTONE BUILDING PROJECT = Craduanon REPORT BUSINESS STRATEGY PERIOD OF 2011 - 2015 —- BEN JOINT STOCK Subject: Strategy Administration Group: 13_ Class M0709 Fullname: = Nguyen Phung Thi Kim Anh Thi Thu Ha Vu Danh Hiep Do Thi Hoa G Global Advanced Aa Lest COMPANY Gatos) Ga MB tal 1M 1/2 re tua TABLE / PREAMBLE ont uw OF CONTENTS 1.1 General context, necessity and importance of theme research Research purposes and application capacity Research method CHAPTER I: THEORETICAL BASIS FUNDAMENTAL PROBLEMS OF STRATEGY 11.1 Phe concepts of strategy 1.1.2 Strategic Management 1.1.3 Benefits and the role of strategic management for the development of the _ business ee to tu l.1.1) to NNN ee by CONTENT AND STEPS IN BUILDING STRATEGY | I-environmental analysis 1.1 Macro environment 10 10 10 10 10 10 10 10 kconomic factors ĐÓ bo 1.1.2 Factors of law, government and politics !.1.3 Social factors ĐÓ /.1.4 Natural factors —_- ~~ NN NN ~~ Technological factors Worldwide Micro environment Competitor Customers (Buyers) Z Suppliers: az Potential rivals: ) Substitution product 12.2 Internal conditions of the Enterprise 2.1, Human resources 2.2 Research and Development (R&D) 2.3 Administration: 2.4 Production - Operation 2.5 Marketing Information system Corporate culture: hy ~~ ~~ fu hu Mu NONE bò MN Mi hộ hộ NNN by he fa fa ba Bl bo Select strategy: Steps to establish strategy Lools to establish and select strategy *.1 Tool supplying information to establish strategy N — — — — ¬ ¬ ¬ Analyze labor forces to determine essential capacities Sep up long-term objectives oF ~ Tools to build optional strategy 7.3 a Tool to select strategy - Quantitative Strategic Planning C HAPTER Il: ANALYZING ACTUAL STATE Matrix (OSPM) OF ENTERPRISE 2.1 Overview of Enterprise -2.2 Analysis of factors impacting on business environment of Ben joint stock company G Global Advanced 10) \U0) 1/2 Graduation ro OC tJ i Macro environment _ Industry environment of BEEN | 3.2 Construction development Wo GW | 46 46 46 AND | 4.1 Solution to implement strategy 4.1.1 Solution to implement the strategy of market development lại 1.2 Solution to implement strategies on quality improvement | differentiation | 4.13.Solution on implementation of human resource strategy and | 4.1.4 Solution on implementation of organizational re-structure strategy | 4.1.5 Solution on implementation of other function strategies | 4.2 Conclusion 4.3 Recommendations REFERENCES Global Advanced OF strategy of the company | 3.2.1 SWOT analysis matrix to suggest strategies | 3.2.2 The proposed strategy | 3.2.3 Strategic choices | CHAPTER IV: SOLUTIONS, CONCLUSIONS | RECOMMENDATIONS G ¬ Ww STRATEGY +444 to we ^ W Xo Finance WwW 4, Marketing 'Aw—— Lo Management sa Operation analysis of Ben company | Iluman Resources Research and Development “ã Go — _ Evaluating the opportunities and threats of BEN » Information system [he company’s culture: 3.8 General evaluation of BEN’s internal conditions CHAPTER II: CONSTRUCTION DEVELOPMENT SUSTAINABLE CORPORATION | Perceptions of strategic objectives and strategy 3.1.1 BEN strategic perspective 1.2 The goal of the BEN to 2015 1.3 Prospects and market forecast E2 Lest GW — l1) wy I7 % t9 L2 [2 j ` Œc tÀ tỏ tN: 22 to P2 E2 E2 BIW & E2 S22 12 Gia) product 66 66 68 69 7] Ä Gia NA th _ C0 ——— ————— 107 VU 009 — bu a _ Crracduaion —— Lest & ABBREVIATIONS BEN _ Ben company LIEEE _ External Factor Evaluation Matrix TFL | Internal Factors Evaluation Matrix SWO] | OsPM CNT | Matrix Strengths - Weaknesses - Opportunities - Threats | Quantitative Strategic Planning Matrix | Information Technology ~ ERP | SYSTEM SOFTWARE CORPORATE GOVERNANCE | GDP _ Gross domestic product WTO | | World Trade Organization LIST NUMBER OF DATA TABLE |Table 1: External Factor Evaluation Matrix (EFE) 32 | | Tasle 2: Competitive Profile Matrix of BEN 34 | Tasle 3°: Human Resources Structure basing on structure of BEN Table 4: Human resources Structure basing on Age: Tabe 5: Qualification of the Human | Business 35 | 36 | Resources | Tabe 6: Report of business activity results in 03 years | Table 7: | Internal Factor Evaluation (IFE) Matrix of BEN | Table 8: SWOT Matrix BEN Company 36 | 40 44 | | 49 | | XÃ | [aRle T0: Stratepic Analysis Group S-T | 58 | 60 Ta ble 12: Summary of strategic options G Global Advanced ‘laste: | | | Table 9: Strategic Analysis Group $ -O “_TaHe 1]: Strategic Analysis Group W-O | 61 Ca \B 101 \10 1/9 Graduation Lest PREAMBLE: I General context, necessity and importance of research Vietnam joined the WTO organization and is now attracting investment from big technological companies such as Intel and Microsoft In 2006 Intel Corporation invested | billion USD to build the largest Chip production and testing plant in Asia and it went into Operation in October 29, 2010 In 2008 IDG reputable International Data Group of USA million USD into Vietnam's IT market and disbursed to with the $ 100-million fund of Vietnam Venture Capital now capital of the IDG in Vietnam will reach the figure grow fastest with the second growth rank in Asia - Pacific decided to invest 500 the end of 2010, Therefore along Fund IDG operated from 2004 to of $ 600 million I'l services will region after India According to data announced by GFK Market Research Company (Germany) the market size of information technology (IT), Electronics and Telecommunications of Vietnam in 2008 was $ 3.9 billion and was expected to reach $ 4.9 billion in 2009, In 2008 despite the world economic downturn, the information technology industry (IT) of Vietnam achieved the growth of 20% Since 2007 Vietnam entered Top 30 of the most attractive nations in the world of software outsourcing Vietnam now ranks 18th in the world with the number of 21 million Internet users, 6th in Asia on internet development spccd The Government, together with IT enterprises and training units set a target by the year 2015: it is estimated that Vietnam will have 600 thousand professionals in TT and increase to one million in 2020 The government also approved funding to support the development of software industry and IT in Vietnam The goal is that by 2020 Vietnam will become a powerful nation in IT Vietnam has 75% of young and highly educated population and more importantly they always have a positive attitude and really look forward to application of information technology to life These are good conditions for further development of Internet in Vietnam and also a big opportunity for companies Vietnam trading in hardware and software in Computer is considered a powerful and useful tool in life of a modern society The development of used computer generations can also show that a part of growth ofa nation Year 2009 is the year that Vietnam Computer market witnessed a truly domination of the notebook computer (laptop) compared to desktop computer (Desktop) Many experts predicted this trend would continue in 2010 According Indochina, G to the growth Global Advanced 20% Mr Thicu Phuong of the computer -: " Nam Sale Manager in the Vietnam of market Intel in in 2009 Vietnam and has exceeded YS GRI A bb J | v—— Gá\10 107 (007400 Graduation fiche previously predicted expectations and forecast of Intel group with the highest growth rate about 70% in 2009, there are three reasons crisis Vietnam's sumulation GDP program growth ior ihis result was still lest In particular the laptop is a product birst in 2009 despite the impact ot global positive The second reason of the Government is the demand has had a direct impact to the expenditure of Vietnam people such as tax reduction program from 10% to 5% for computer products Another reason leading thriving of Vietnam Computer market in 2009 is thanks to great demand for purchase of computers by pupils and students in the country Computer now almost become an indispensable learning tool of pupils and students In the condition of the growth and the average need of 20-25% annually for the information technology sector, averagely and annually dozens of large and small companies are formed BEN Computer Company was formed in 2001 with a very small scale from a computer retail store with an area of 30 m2 and total staff of about 50 people From that it developed to BEN joint stock Company with its head office area up to nearly 1000 m2 with total staff of up to 200 people In an open economy and perfect competition environment although Company has had a certain place and a certain market share for customers and partners, the board of Directors of company see that Company should have a clear business strategy planned through the qualified experts in business to build the sustainable development competition of the company For this reason, in 2009, the Board of Directors of company assigned Managers to study MBA program of Master of International Business Administration (GaMBA) linked to organize by Griggs University (USA) and the Center of Technology Training and Employment System of the Hanoi National University with very clear objectives to acquire knowledge in school and build business strategy for the company in five years from 2011 - 2015 The field selected by the Group 13 as the topic for graduation test is to build business strategies for Ben Joint Stock Company to trade Notebook, set of computer, computer assembly with Ben brand name and distribute IT products as a member of the group is Vice Sale Manager of the Company 1.2 Research purposes and application capacity According to research by IDC the PC market in Vietnam in the first half of 2010 due to falling demand However the grow despite the inventory and fierce competition on the retail decrease due to less demand of consumer as well as budget cuts education has faced many challenges laptop market continues to price Demand on desktop for government projects on Il Products business segment in 2011 is predicted 20% growth by IDC CF sonaizdnnoee : ' h GRIGC IS) — UNivebtet vf GaMB 101 \MOCOY Graduation Based on the above predictions Ben Joint Stock Company Strategy orienting to 2015 with the following specific objectives: 10 Wanstorm business Íormt 0m Lest has also built a business disUTbuton and retait to iuily retail * To expand the scale by opening more shops of utility at new esumated to open 03 Ben Store residential area: it is + Market share of about 10 - 15% retail market share in the North: to rank No on sales of information technology products in the North * Average revenue growth of 20-25% per vear * To expand products: mobile phone LCD TV ° To coordinate with Intel manufacturers to produce computer with BEN with the average number of 5.000 products per year 10 brand * To coordinate with other computer Corporate such as Acer Toshiba HP to build link stores such as Hp Store: Toshiba store Acer Store to continue success of two Stores in 2009 and 2010 namely Dell Store and Lenovo Store + To build a complete ERP system administration * Applicability of theme The Company has prepared the infrastructure and investment for long-term strategy by hiring more spaces in 2010 According to the overall growth trend of the industry Orientation of leaders about the possibility of sustainable and long term development of enterprise 1.3 Research method To complete the requirements and meet the objectives of the research process the group conducted concurrently the following methods: - Method of investigation, field surveys in the enterprise Analysis of the overall strategy based on planning tools according to BCG Matrix SWOT and the theory of competitive strategy by Michael E Porter Comparison of evidence and from which to make comments reviews effectively and feasible recommendations G Global Advanced |: fe \ and solutions wat Graduation CHAPTER THEORETICAL Focusing on intensive research of business Lest I BASIS strategy (as a scheduled concurrently, add knowledge in the fields studied in other universities: index) and * Marketing Administration | Corporate Finance ° Tluman Resource Administration 1.1 * Development of leadership skills Define the business strategy of the company: Different and low cost FUNDAMENTAL PROBLEMS OF STRATEGY 1.1.1 The concepts of strategy There are many different definitions of strategy: cach definition is more or less varied depending on the different views of each author In 1962, Chandler defined strategy as “The determination of the basic long-term goals and objectives of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals.”’' In 1980, Quinn defined a more general strategy as "a strategy is the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole’ Then, Johnson and Scholes have redefined the strategy in the changeable environment as: "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations” According to Mintzberg definition of strategy can be summarized with the Ps Plan: Sequence of actions planned in a consistent manner Pattern: consistency in behavior whether or not intended Position: "match" between organization and environment Perspective: A way of perceiving the world Ploy: a specific manoeuvre intended to outwit an opponent or competitor In essence, the definition of strategy depends on standpoint however in the most common, the strategic levels include: Company-level strategy Business Unit level strategy and functional strategy (handler, (1962) Statrregy and Structure Cambrige Massacchusettes MIT Press Quin, AB O1ISOStatregies for change, Logical Incrementalism Homewood Johnson G Scholes, K (19990 Exploring Corporate Statregy, Kd Prentice Hall CG Global Advanced Mist) :- Add x GaRiGGy AA GaN IBAOTL A heh According \10 09 to Charles Graduation W.L.HiIH and Gareth R Jones: Lest "“Srrateey is a process of aderermuning the basic and long term objectives of an enterprise, choosing the method or the ki CCNOI1 Uƒ 0-2100 did GHOCUUON Of Fesources Fred David: Necessary 10 unplement thar goal "Strategy is the means to achieve long-term goals." William J Glueck: “Strategy is a unified, comprehensive and integrated plan designed to assure that the basic objectives of the enterprise are achieved” Business strategy of an enterprise is a general action program towards the implementation of the optimal objective of the enterprise However the strategy is not aimed to specifically outline how to achieve those goals but only to frame to guide thinking and action The important feature of all business strategies when are formed and paid attention to is the "competitive advantage" because it is used to distinguish them from other business plans In fact any competitor develops their own strategies because strategy is the only purpose and ensures for enterprise to search and gain their sustainable advantages before their competitors Through access to the above definition, whether expressed but we can generalize the Strategy as “4 complex series of actions to mobilize the resources possible of an organization to achieve a certain goal" 1.1.2 Strategic Management According to Garry D Smith, "Strategic Management is defined as the process of studying the current environment as well as in the future, planning objectives of the organization: propose, implement and supervise the implementation of decisions designed to achieve the objectives in current environment as well as in the future” According to Fred R.David, “Strategic Management can be defined as the art and sclence of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective Strategic Management focuses on fusion of the management, financial and UCCOUNLING marketing, manufacture, research and development of information systems and business sectors to achieve success." There are many document different concepts of strategic management "Strategy & business policies” of the doctor Neuven but according to the Thi Lien Diep we can set the following three approaches: Environmental approach: "Strategic Management is a decisive process aimed at commecting the internal ability of the organization with the opportunities and threats of the outside environment." Characteristics of this approach environment exploit opportunities and deal with risk c3 Global Advanced ast : hid are to: make company -oriented