Building up the strategy of Saigon value investment joint stock company 2011 - 2015

Building up the strategy of SVI 2011 - 2015 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING UP THE STRATEGY OF SAIGON VALUE INVESTMENT JOINT STOCK COMPANY 2011 - 2015 Group Number : Student ‘s name Do Quang Duc Nguyen Thi Hai Ha Tran Thi Thuy Ha Pham Dao Minh Quan Vo Trong Tu HO CHI MINH 2011 Capstone Group N0 -1- Building up the strategy of SVI 2011 - 2015 TABLE OF CONTENT INTRODUCTION 1.General background 2.Importance of the studied topic 3.Research purposes Research methodology 10 5.Scope of research 11 6.Studies subject 11 CHAPTER 1: THEORETICAL BASIS ON STRATEGIC MANAGEMENT AND MANAGEMENT STRATEGY OF INVESTMENT FUND 11 1.1.Overview of strategic management 11 1.1.1 Concept .11 1.1.2 Role and characteristics of strategic management for the enterprise 12 1.1.3 Process of strategic management 12 1.1.4 Strategic levels 16 1.2 Some tools used to evaluate and propose business strategies 16 1.2.1 External factor evaluation matrix (EFE) .16 1.2.2 Internal factor evaluation matrix (IFE) 18 1.2.3 Competitive profile matrix .19 1.2.4 SWOT Matrix 20 1.2.5 Strategic position and action evaluation matrix - SPACE Matrix .22 1.2.6 Strategic selection: Quantative strategic planning matrix (QSPM) 22 Capstone Group N0 -2- Building up the strategy of SVI 2011 - 2015 1.3 Core competencies 23 1.4.Basic concept on investment fund 24 1.4.1 Concept of the role of investment fund 24 1.4.2 Legal basis to establish investment fund .24 1.4.3 Types of operating investment funds today 24 CHAPTER 2: REAL SITUATION ANALYSIS OF SAIGON VALUE INVESTMENT JOINT STOCK COMPANY 26 2.1 General introduction on the company .26 2.1.1 Formation and development history .26 2.1.2 Organization chart 27 2.1.3 Necessity for strategic planning for SVI investment fund 27 2.1.4 SVI investment fund’s operation 28 2.1.4.1 Investment trust services .28 2.1.4.2 Capital arrangement services 28 2.1.4.3 Support services of Stock Exchange HOSE, HASTC 29 2.1.4.4 Consulting services of bond issue 30 2.1.5 Investment regulation .31 2.1.5.1 Investment objectives 31 2.1.5.2 Investment policies .31 2.1.5.3 Investment restrictions 32 2.1.5.4 Handling losses .33 2.1.6 Areas and sectors of investment .34 2.1.7 Transaction process and fee table at SVI 34 Capstone Group N0 -3- Building up the strategy of SVI 2011 - 2015 2.2 The company's real situation analysis of the business environment .36 2.2.1 Analysis of macro environment impacting on the company’s activities 36 2.2.1.1 Legal - political environment 36 2.2.1.2 Economic environment 36 2.2.1.3 Socio-cultural environment 38 2.2.1.4 Information technology systems 38 2.2.2 Micro environment 38 2.2.2.1 Potential rivals 38 2.2.2.2 Competition among rivals in the industry 39 2.2.2.3 Pressure from buyers (customers) 40 2.2.2.4 Pressure from suppliers 40 2.2.2.5 Pressure from substitute products 41 2.2.3 Analysis of internal industry 41 2.2.3.1 Financial strength 41 2.2.3.2 Human Resources 42 2.2.3.3 Business administration capacity 42 2.2.3.4 Brand .42 2.2.4 Results of operations in 2010 and plans in 2011 43 2.2.4.1 Results of business operations in 2010 .43 2.2.4.2 Business operation plan in 2011 43 2.2.4.3 Results of business operations in early six months in 2011 44 2.3.The existing restriction of SVI 45 Capstone Group N0 -4- Building up the strategy of SVI 2011 - 2015 CHAPTER 3: OPERATION AND DEVELOPMENT STRATEGY ORIENTATION OF INVESTMENT FUND OF SAIGON VALUE INVESTMENT DURING THE PERIOD OF 2011 – 2015 46 3.1.Core values, vision, mission 46 3.1.1 Core values 46 3.1.2 Vision and mission 47 3.1.2.1 Vision .47 3.1.2.2 Mission 47 3.2 Business strategy goal from 2011 – 2015 47 3.2.1 Short term objectives .47 3.2.2 Long-term objectives .48 3.3 Strategic assessment and choice method through the matrices .48 3.3.1 Internal factor evaluation matrix 49 3.3.2 External factor evaluation matrix 50 3.3.3 SWOT matrix analysis 51 3.3.4 Space matrix 53 3.3.5 Competitive profile matrix of SVI 56 3.3.6 Strategic selection through QSPM matrix analysis .57 3.4 Strategic implementation solution 60 3.4.1 Capital mobilization and use in the more efficent way 60 3.4.2 Customer development 61 3.4.3 Development and improvement for new products – services .61 3.4.4 Professional activity development 63 Capstone Group N0 -5- Building up the strategy of SVI 2011 - 2015 3.4.5 Network , operation scale expansion .64 3.4.6 Human strategy .64 3.4.7 Investment and development of information technology and service systems 66 3.5 Recommendations 68 3.5.1 Recommendations for the State .68 3.5.1.1 Macroeconomic stability maintainance 68 3.5.1.2 Development and improvement of legal systems .69 3.5.1.3 The state should encourage and actively support the formation and development of investment funds 69 3.5.1.4 Implementing tax incentive policies for securities investment activities of investment funds 70 3.5.2 Recommendations for Saigon Value Investment Joint Stock Company 71 CONCLUSION 72 REFERENCE MATERIALS 73 APPENDIX 73 - Follow up day-trade 74 - Call option 75 INDEX OF TABLES AND FIGURES Figure 1-1: Comprehensive strategic management model …………………13 Figure 1-2: Michael E Porter’s five competitive forces model .15 - Table 1: Internal factor evaluation matrix 49 - Table 2: External factor evaluation matrix 50 Capstone Group N0 -6- Building up the strategy of SVI 2011 - 2015 - Table 3: SWOT matrix analysis 51 - Table 4: Space matrix .53 - Table 5: Competitive profile matrix of SVI 56 - Table 6: Strategic selection through QSPM matrix analysis 58 - Chart 1: Earnings in the first six months of year 2011 44 - Chart 2: Space matrix chart 55  Capstone Group N0 -7- Building up the strategy of SVI 2011 - 2015 ACKNOWLEDGEMENTS Understanding of each person as a grain of sand in the desert vastness of the knowledge base, capture knowledge and creativity is never ending for those who have progressive spirit and want to rise in life, Group joined in training program Master of international business Administration from National University of Hanoi with Griggs University (USA) nor for purposes in addition to sociocultural knowledge, skills ability to improve their lives Vietnam proverb that said, " "No guide, no realization"," Thank the program, thank the teachers for whole-hearted Teaching and teaching assistants, who guide and suggestions for all assignments, and share knowledge and experience in your lives for the class in general and for particular group We wish the teachers and your family are healthy; the program will be growing to help train more people with more knowledge to society / Group - Class GaMBA01-C0210 Capstone Group N0 -8- Building up the strategy of SVI 2011 - 2015 INTRODUCTION General background: Today, in the context of the global economy as well as of Vietnam, there are fierce competitions which are taking place in all areas of business operation, a business which wants to survive and develop no longer is based on experience and the elements of chance as before, and now to survive and thrive in the marketplace, the most important and necessary thing is to direct its business to go on a path consistent with development trends and to be able flexible for the change of the business environment in order to achieve high fitness, ensuring sustainability for the business To achieve this, there is nothing else, the companies must identify and develop a business strategy for their business, because business strategy is basis, guideline for all activities of the business Importance of the studied topic: Investment Fund of Saigon Value Invest Joint Stock Company (SVI) was founded in 2010 at the same time, the world and Vietnam economic situation was complicated, requiring the company must have long-term development strategies and simultaneously having timely adaption to surrounding conditions, combining with the advantages of internal resources and external opportunities for the company to be more sustainable development Research purposes: - To assess the impacts of external environment, analyzing the macroeconomic factors affecting investment fund, through which finding the image of external environment of the enterprise (EFE) - To carry out analyzing on the perspective of business manager for the operational aspects of SVI investment fund, from which to build the internal factors of the enterprise (IFE) Capstone Group N0 -9- Building up the strategy of SVI 2011 - 2015 - To analyze the two internal aspects of the organization (Financial Strength (FS), competitive advantage (CA)), and two external aspects: environmental stability (ES) and industry strength (IS) from which showing the company's strategy through strategic position and action evaluation matrix (SPACE) - To combine IFE and EFE creates analysis matrix of the strengths and weaknesses, opportunities for the business, from which choosing general strategy to develop investment fund and construct development strategy of the company in the next years Research methodology: - Analyzing the impacts of the world and Vietnam economic environment, using the model of five competitive forces of Michael E Porter to analyze the five competitive forces on the industry - EFE matrix analysis to determine the response of SVI with the market - IFE matrix analysis - Competitive profile analysis - SPACE analysis - QSPM matrix analysis To form the development strategy of the company, through the establishment of some matrices from which choosing develop strategy of the company in the next period Research data is secondary data obtained through books, magazines, statistics, references of judgement of leaders from the fund companies with sizes similar to SVI From combining the internal and external matrices, SWOT matrix and competitive profile matrix, our group will analyze QSPM matrix and our group will select appropriate strategy for SVI Capstone Group N0 - 10 - ... manager for the operational aspects of SVI investment fund, from which to build the internal factors of the enterprise (IFE) Capstone Group N0 -9 - Building up the strategy of SVI 2011 - 2015 - To analyze... months in 2011 44 2.3 .The existing restriction of SVI 45 Capstone Group N0 -4 - Building up the strategy of SVI 2011 - 2015 CHAPTER 3: OPERATION AND DEVELOPMENT STRATEGY ORIENTATION OF INVESTMENT. .. strategy of the company takes advantage of external opportunities and minimizing the negative effects of the external environment Capstone Group N0 - 17 - Building up the strategy of SVI 2011 - 2015