Formulation of business strategy in period of 2012-2017, vision to 2012 for investtech gn company limited

CAPSTONE PROJECT REPORT FORMULATION OF BUSINESS STRATEGY IN PERIOD OF 2012-2017, VISION TO 2012 FOR INVESTTECH GN COMPANY LIMITED MEMBERS OF GROUP 10: DO TRUNG HIEU (Group leader) NGUYEN THI MAI HUONG HO HAI QUANG DAM THI HOA LE QUY HOANG GaMBA.M0210 H A N O I 2 CONTENTS ASSURANCE ACKNOWLEDGEMENT INTRODUCTION Background Goal and subject of research Scope of research Methods of research 10 Data processing method 10 Topic structure 10 Significance of the topic 10 CHAPTER I: BASIC THEORY OF BUSINESS STRATEGY AND METHOD FOR STRAGIC FORMULATION 12 1.1 STRATEGIC OVERVIEWS 12 1.1.1 The concept of strategy - Strategic Management 12 1.1.2 Strategic requirements 13 1.1.3 Role of strategic management 13 1.1.4 Strategic classification : 14 1.2 ENVIRONMENTAL RESEARCH TO IDENTIFY MAIN OPPORTUNITIES AND THREATS 16 1.2.1 Macro environment: 16 1.2.2 Micro-environment: 17 1.3 INTERNAL CONTROL OF THE ENTERPRISES TO IDENTIFY THE STRENGTHS AND THREATS 20 1.4 ESTABLISH LONG-TERM PURPOSE: 23 1.5 METHOD OF DEVELOPMENT AND SELECTION OF STRATEGY: 24 1.6 TOOLS FOR BUILDING AND SELECTION OF STRATEGIES 25 1.6.1 The tool providing information to develop strategies 25 1.6.1.1 Matrix of Internal Factor Evaluation Matrix (IFE) 25 1.6.1.2 External Factor Evaluation Matrix (EFE) 26 1.6.1.3 The Competitive Profile Matrix (CPM) 27 1.6.2 The tools to build viable strategis 28 1.6.2.1 Matrix of strengths, weaknesses, opportunities, threats (SWOT)28 1.6.3 Tools for selection of strategies: Quantitative Strategic Planning Matrix (QSPM) 29 CHAPTER II: ANALYSIS OF BUSINESS ENVIROMENT AND FORMULATION FOR STRATEGIES OFINVESTTECH GN CO.,LTD 31 2.1 2.2 2.2.1 OVERVIEW 31 ANALYSIS OF IMPACTS OF EXTERNAL ENVIRONMENT 37 Macro Environment 37 2.2.1.1 Economic Impact 37 2.2.1.2 Elements of law, government and politics 37 2.2.1.3 Social factor: 39 2.2.1.4 Scientific and technological factors: 39 2.2.2 Micro-environment 40 2.2.2.1 Existing rivals 40 2.2.2.2 Client: 43 2.2.2.3 Supplier 44 2.2.2.4 Potential competitors 45 2.3 INTERNAL ENVIRONMENT ANALYSIS 48 2.3.1 Finance: 48 2.3.2 MARKETING: 48 2.3.3 PERSONNEL: 50 2.3.4 MANAGEMENT: 50 2.3.5 INFORMATION SYSTEM: 51 2.3.6 RESEARCH AND DEVELOPMENT 51 2.4 SWOT MATRIX: 53 2.4.1 Basis: 53 2.4.2 SWOT MATRIX: 54 CHAPTER III ANALYSIS FORMULATED STRATEGIES AND SELECTION BUSINESS STRATEGY FOR INVESTTECH GN CO.,LTD (GNC) IN PERIOD OF 2012-2017, VISION TO 2022 56 3.1 3.1.1 STRATEGY ORIENTATION 56 Basis for strategy orientation construction 56 3.1.1.1 From technology trend 56 3.1.1.2 From clients 57 3.1.1.3 From terminal distribution market in Vietnam 57 3.1.1.4 From telecommunication development orientation by 2010 58 3.1.1.5 Conception on development 59 3.1.1.6 Development targets by 2017 60 3.1.1.7 Development orientation by 2017 and vision to 2022 61 3.1.1.8 The Company’s strategic orientation by 2017 62 3.2 3.2.1 STRATEGY FORMATION 62 Group of S-O strategies 62 3.2.1.1 Market penetration strategies: 62 3.2.1.2 Market development strategies: 62 3.2.1.3 Joint venture strategy: 63 3.2.2 Group of S-T strategies: Strategy on product differentiations: 63 3.2.3 Group of W-O strategies: Strategy on human resource development: 64 3.2.4 3.3 3.4 Group of W-T strategies: Strategy on product differentiation: 64 SELECTION OF STRATEGIES – MATRIX QSPM 65 SOLUTIONS FOR STRATEGIC IMPLEMENTATION 67 3.4.1 Solutions and development of human resource: 68 3.4.2 Marketing solutions: 69 3.4.2.1 Solutions on products: 70 3.4.2.2 Solution on price: 70 3.4.2.3 Solution on Distribution channel: 71 3.4.2.4 Solution for public relation (PR): 72 3.4.3 Solutions on research and development: 73 3.4.4 The roadmap and budget to implement strategies of the company: 73 3.5 SOME PROPOSALS FOR THE STATE 74 3.6 CONCLUSION 74 REFERENCES 76 APPENDICES 77 LIST OF FIGURES Figure 1: Michael E.Porter’s forces model5 (Duong Ngoc Dung, 2005) 17 Figure 2: Main contents need analyzing on competitors (Nguyen Thi Lien Diep & the authors, 2006) 19 Figure 3:The "tripod" of business development strategy of company 23 Figure 4: The Strategy - Formulation Analytical framework 24 Figure 5: Organization Chart of Gia Nguyen Company .33 LIST OF TABLE Table 1: GDP growth rate of Vietnam in the period 2003-2011 37 Table 2: GDP per capita of Vietnam in the period 2003-2011 37 Table 1: The Competitive Profile Matrix (CPM) 42 Table 2: EXTERNAL FACTOR EVALUATION (EFE) MATRIX .46 Table 3: INTERNAL FACTOR EVALUATION (IFE) MATRIX .52 Table 4: Growth rate of terminals imported in Vietnam in types in period of 2008-2012 58 Table 5: Market shares of terminal imported in Vietnam in types (forecast within years) .58 Table 6: A QSPM for GNC strategy .65 ASSURANCE We assure that the content of the capstone project report has not been submitted to any high-degree programs as well as any other degree programs We further assure that we have tried our best to apply the knowledge that we have learned from the program to complete the graduation exercises All of our efforts has been reflected in graduation exercises ACKNOWLEDGEMENT Firstly, we express our gratitude to the Board of Rectors, Professors, Experts, Lecturers and staff of the ETC Center - Vietnam National University, Hanoi and the Griggs University (United States) has always been closely together us during this course Through this course, we have accessed a high-quality education with innovative teaching methods, how to apply and update useful information to serve the management to improve business production efficiency Truthfully yours! INTRODUCTION Background For years, Vietnam's economy has always achieved high growth and stability After joining the World Trade Organization (WTO), Vietnam has opened up many opportunities for Vietnam enterprises to possibly expand markets, expand production scale, and confirm its brand, but also come to new challenges The volatility of the market will increasingly faster and more complex, sales is becoming more difficult due to the enterprise’s ability in supplying goods to the market's growing, diversification in commodity and quality requirement is increasingly high, the competition to take the customers is increasingly more aggressive It requires every enterprise that wants to succeed in business must have a way of doing business, ways of thinking, new way, to know how to use the facilities, capture and process information quickly, effective application of scientific and technological solutions, making the direction and operations goal consistent in each period to possibly gain advantages in competition Telecommunications technology is the industry which has an important role to promote the development and promote the effects of many other technologies, as the decisive basis of the innovative development of many economic sectors Moreover, telecommunications technology is also one of the industry performing the function as necessary means and conditions to ensure the development of the national economy in the trend of globalization, regionalization at present Starting from the role and position of telecommunications technology to the requirements of national economy, the government of Vietnam has issued a number of policies in order to guide, facilitate and encourage telecommunications technology development towards "Strong development for high-tech industries, especially information technology, telecommunications, electronics and automation; paying much attention to the production of computer software into the economic sector with remarkable growth rate” However, according to some recent studies, about one third of small companies have failure within the first two years and about half of the remaining companies have failed in the next five years Thus, to succeed and develop in current business conditions, it is not easy to implement at all, only about 30% successful companies Therefore, as a newly-established enterprise, lacking many elements of technology, human resources, finance, etc and a long-term development strategy for the future, INVESTMENT TECHNOLOGY AND EQUIPMENT GIA NGUYEN CO.,LTD needs to build up a suitable and proper business strategy for itself, to effectively use its resources to exploit opportunities and strengths, limits the risks and weaknesses as an urgent work for the company to stand in the market and keep up developing in the future By these reasons, we choose the topic: “Formulation business strategy in period of 2012-2017, vision to 2022 for Investtech GN Company Limited” for our research Goal and subject of research Through the theoretical and practical research, the subject analyzes the issues related to the operating environment and the state of INVESTMENT TECHNOLOGY AND EQUIPMENT GIA NGUYEN CO.,LTD, from that to propose the goals and strategies for development of the Company in the period of 2012-2017, vision to 2022; as well as making a solutions for successfully carrying out the business strategies of INVESTMENT TECHNOLOGY AND EQUIPMENT GIA NGUYEN CO.,LTD Scope of research In the framework of this thesis, our group only research the issues related to the procedure of making plan for business strategy and manipulate to make plan for business strategy for INVESTMENT TECHNOLOGY AND EQUIPMENT GIA NGUYEN CO.,LTD in the period of 2012-2017, vision to 2022, paying attention to the feasibility and effectiveness of the strategies Methods of research To collect information, our group has used the following methods: - Collecting primary data: using qualitative and quantitative methods to collect primary data through questionnaire sent to randomly selected people (members of the company and members outside the company) The main content of the survey is to collect information about: evaluation of customer satisfaction, technical quality, operational policies, leadership at the company, the functional quality improvement - Collecting secondary data: internal documents of GNC - Using acquired knowledge for researching, analyzing the internal and external business environment of the company and formulating company’s business strategy in period of 2012 – 2017, vision 2020 Data processing method Mainly using statistical methods, synthesis, comparison, analysis to collect assessment of inside and outside information related to the company's business operation Topic structure The contents of topic, except for the introduction and conclusion, should be stated including main Chapter as follow: - Chapter I: Basic theory of business strategy and method for strategic formulation - Chapter 2: Analysis of business environment and formulation for strategies of Investtech GN Co.,ltd - Chapter 3: Analysis formulated strategies and selection business strategy for Investtech GN Co.,ltd (GNC) in period of 2012-2017, vision to 2022 Significance of the topic  Scientific significance: Strategic Planning is an effective way for the enterprise to use resources efficiently as well as correctly identify its direction But because of various reasons that many Vietnamese 10 healthy financial structure, effective use of capitals; quality products, good sales services, reasonable price; use of international standard professional corporate management instruments in the conditions of good advantages of the opportunities Growth speed of telecommunication and information technology is so high; the Government’s policies on telecommunication and information technology assistance; more diversified demands on telecommunication and information technology; potential market; to permit the Company to develop and expand it markets to increase it revenue, and market share to be basis for stable development in the future 3.2.1.3 Joint venture strategy: (in combination of S1,S3,S4+O1,O2,O4,O6) The Company with the strength on healthy financial structure, effective use of capitals; good relation with foreign partners; skillful and experienced labor force in order to negotiate and joint business with foreign partners to take full advantages of opportunities Development speed of telecommunication industry is so high; the Government’s policies on technology information development assistance; Vietnam’s high economic development speed; largely potential market; the Government’s policies on technology information development assistance; Politic environment, stable society, foreign investment attraction They are opportunities interested by the partners and able to bring success to the joint ventures in coming time 3.2.2 Group of S-T strategies: Strategy on product differentiations: (Combination of S2, S3, S6 + T1, T2, T3, T6) The company focuses on exploiting its strengths in: products have quality, good sales services, reasonable prices; Having good relationships with foreign partners; R&D departments; customer care system and building strategic relationship to exploit new and separate products, to highlight the company brand that is " Gia Nguyen Equipment and Technology Investment " since then to limit the threats of the market such as rapid change of technology, expectancy life of 63 technology and infrastructure investment cycle; activities on smuggling and trading fraud is complicated; income of consumers is low; Affects of the economic crisis makes the demands for telecoms products declined 3.2.3 Group of W-O strategies: Strategy on human resource development: (Combination of W2, W5, W6 + O1, O2, O3) With the motto: man is the central and decisive element for the development of the company in the future, the company should have a strategy on human resource development reasonably and feasibly to add and overcome the weakness, taking advantage of chances brought from the environment, since then, the company can stand steady in the current different period and open opportunities for a longterm development 3.2.4 Group of W-T strategies: Strategy on product differentiation: (Combination of W1, W3 + T1, T2, T4, T6) In order to limit high-risk from the rapid change of technology, life cycle of technology and infrastructure investment cycle as well as the activities on smuggling and trading fraud, Subject to the supplies of foreign products, components; affects of economic crisis makes the demand for IT products declined, the company should have strategies on product differentiation, and overcome the weaknesses of the company on a low capital investment ; distribution system is limited, mission on advertisement and promotion is weak 64 3.3 SELECTION OF STRATEGIES – MATRIX QSPM Base on SWOT matrix, combine with CPM matrix above, the selection strategy as following below: Table 6: A QSPM for GNC strategy AS: Attractiveness Score KEY FACTORS Strengths Healthy financial structure effective capital use Products with quality selling services are good with reasonable price Have good relationship with foreign partners Labor force is relatively skilled and experienced Use professional business management tools reaching international standards System of customer care and construction of strategic customer relationship effectively WEAKNESSES Low investment capital Mission on development and research is weak Distribution system is limited mission on advertisement and promotion is weak Loss of balance in industrial structure Mission on recruitment and training is weak Lack of long-term development strategies TAS: Total Attractiveness Score STRATEGIC ALTERNATIVES Market Market Joint Weight penetration development venture AS TAS AS TAS AS TAS 0.07 0.28 0.21 0.07 0.10 0.4 0.3 0.1 0.07 0.14 0.21 0.28 0.09 0.36 0.27 0.09 0.09 0.27 0.27 0.18 0.07 0.28 0.21 0.14 0.09 0.36 0.18 0.27 0.09 0.27 0.18 0.36 0.08 0.32 0.24 0.08 0.08 0.24 0.32 0.08 0.07 0.14 0.07 0.07 0.10 0.10 0.1 0.10 1.00 65 KEY FACTORS OPPOTUNITIES Development rate of information technology is very high The governmental policies support development of telecom technology Demands on telecom technology are plentiful and diversified Environment of politics society is stable attracting foreign investment Economic development rate of Vietnam is high Potential market is wide Rapid change in technologies technological life investment cycle of electronics infrastructure and large retail groups THREATS Activities on smuggling and trading fraud are still complicated Income of consumers still low Subject on supply of foreign products and components Financial and monetary policies change ceaselessly Affects of economic crisis make the demands for using telecom products and services reduced Total STRATEGIC ALTERNATIVES Market Market Joint Weight penetration development venture AS TAS AS TAS AS TAS 0.10 0.30 0.40 0.20 0.07 0.28 0.21 0.21 0.10 0.40 0.30 0.20 0.07 0.21 0.21 0.28 0.08 0.16 0.16 0.24 0.10 0.30 0.4 0.40 0.09 0.27 0.18 0.36 0.08 0.24 0.16 0.08 0.10 0.3 0.2 0.10 0.08 0.16 0.08 0.32 0.07 0.07 0.07 0.07 0.06 0.24 0.12 0.06 1.00 6.09 66 5.05 4.34 Through the analysis of matrix QSPM and based on the total attractive scores of strategies, we have following conclusions: Market penetration strategy has total attractive scores (TAS) is 6.09; market development strategy has TAS = 5.05; joint venture strategy has TAS = 4.34 Therefore the strategy selected is market penetration strategy because it’s TAS = 6.09 which is the largest 3.4 SOLUTIONS FOR STRATEGIC IMPLEMENTATION To establish Investment Technology and Equipment Gia Nguyen Co.,Ltd become a strong company in aspect of providing telecom equipment and be able to compete in the fluctuate market as current The company should combine strategies including Market development, Market penetration, Human resource development, Product differentiation • For strategy on Market penetration: • For strategy on Market penetration: Company has so many customers as VNPT, Viettel, G-Tel, Vietnammobile, VTC, Banks and Enterprises, so to choose the market penetration strategy is to raise the current market share for products and services of company Our mission is setting closed relation to customers and updating them new technology applications that they will need, providing good service for maintenance and repairing products, supporting customers for the financial plan of investment or purchasing We keep innovating to meet the needs and wants of all customers We must work well with manufactures for commitment of good prices, delivery on time, quality of products with international standards and training technician team in Vietnam Our objective is to get an average growth rate of 15-20% per year In revenue share, service will increase to 30% of total, accessory will cover 5% of total and 65% will be covered by equipment revenue Service will be very important for after sale and this revenue will be main financial source to training, 67 investing LAB room, transferring new technology and promoting R&D activities to diversify the new products, improving product quality together with creation of differentiation Pay attention to marketing solution, product introduction, seminars and entering into telecom and IT specializing trade fairs for introducing products and capturing the customers’ demands in big cities as Hanoi, Ho Chi Minh and Da Nang Here are the specific measures to incorporate the four key strategies: 3.4.1 Solutions and development of human resource: To implement the strategies selected above, the preparation of human resource to meet the development needs in the new situation is extremely important To implement the strategies, professional managers are required Experienced employees play important roles towards GNC in development of human resource Development of human resource should be performed by: + Policies on recruitment and planning of human resource: Currently policies on recruitment are mainly based on the internal resource, therefore, in the near future, the company’s recruitment should change and move to fair and public-based recruitment, depending on capacity and qualification, reducing the internal resources Information of recruitment must be published on website of the center, newspapers, labor introduction centers, etc to find right people to meet the new business demand + Planning of human resource: Human resource and administrative department must plan recruitment, training human resource to satisfy the business development need of the company in the near future * The specific solutions on training, and coaching staff currently are as follows: Human resource department plans the external cooperation to force all managers entering into external training courses (associated with Universities, training centers) mainly on improving management capacity towards managers 68 Since then to train profession to satisfy new business Managers shall be the motive forces to train and coach their staff afterwards In-place training plan: This is currently important strategy for the company which is expressed as follows: - Board of Directors of the Company should assign the in-place training to Human resource and administrative department cooperating with managers to train their staff - Human resource department: undertake training in communication skills, customer service and selling skill - Manager: Train in technical capacity For the recruitment of key positions, the company should depend on prestigious labor introducing centers or prestigious "head hunting" companies in the market to select the potential candidates to meet the development needs of the company • The reward and treatment policies: + Continue to apply the reward policy for direct customer department and support departments in the company to stimulate and encourage the dynamic work of each department + There are good treatment policies (such as raising salary ahead of due or promotion ) for good employees to ensure stabile labor force, since then, stimulating the working spirit of remaining staff in the company employees • Construct the work environment: The company’s departments generally work each other, so human resource and administrative department should maintain the friendly working environment to raise the working effectiveness to promote the collective strength in the company 3.4.2 Marketing solutions: Mainly focus on the following solutions: 69 3.4.2.1 Solutions on products: Mainly focus on the company's motto is "investment in technology and equipment" with products and services of latest technologies However, the company must pay attention to the accurate demand of customers in each specific period by promoting the company’s core capacity on leading technology Customer services are the most important associated with available strength of the company to develop the company In summary, the company should focus on the products with the following properties: + Trend on technology improved increasingly fast, and powerfully + Trend on consumption is increasing in the future + Products with the highest rate of return + Products meet many applications of telecom services, satisfying service providers of Vietnam and users of services as well as creating the differences in consumers’ awareness + The products have to create the strengths of development of the company against competitors 3.4.2.2 Solution on price: Price policy of the Company is currently restricted due to a conflict between prices of agents and projects, of which the agent prices must be the cheapest prices, but project prices can not be cheap prices to compete with agents Therefore, depending on every operational phase with the priority policy for development of every customer the company provides reasonable policies to reconcile above conflicts In the current stage, the company focuses on developing customers who area telecom service exploiters because they are traditional customers with high revenue, so the company emphasizes on attached policies such as post-sales warranty, guarantee, maintenance, borrowing of rescue equipment and hire of equipment where necessary, etc in addition to, telecom equipment suppliers on 70 the national scale as well as potential customers support the company in spreading technological solutions, supporting services and maintenance of equipment, thus the company still has to attempt to develop the agency channel in the area to develop its brand With motto “best technology, reasonable price and best prices” to create the foundation for the long-term development strategy 3.4.2.3 Solution on Distribution channel: The two current distribution channels include direct selling channel for telecom service exploiters as per every project with large scale and distribution channel for the company’s customers According statistics from 2009 – 2011, customers for service exploiters make up 70% and customers who agents make up 15% and services make up 15% of the company’s revenue Therefore, in the period up to 2015, the company should focus on selling channels for service exploiters, associated with the steady relationship to maintain the current development, but must concurrently construct the foundation for selling channel through agents to create the steady stand in the long-term future To concentrate into selling channel for service exploiters, the company must develop research and development department, LAP department, qualified management unit that is expert in technology in Hanoi, Ho Chi Minh city and Da Nang, and opening representative offices in Taiwan, China, Korea to seize the trend of global technologies and prepare the technological transfer strategies in the future Invest and supplement department specialized in research of software to improve firmware of equipment and management integrating software in Hanoi to create the company’s position in the future not depending on manufacturers of hardware For customers who are agencies, the company must maintain and develop the current agencies in the area of Hanoi, Ho Chi minh city and Da Nang; training and guiding agencies to become project exploiters in other provinces and cities 71 In addition, the company also must build websites www.chovienthong.vn to expand its online sales, consultancy, and introduction of products; at the same time, being forum to introduce new technologies Currently, the company has not completed this website yet, however, in the end of 2012, this website will officially go into operation Trends on online transactions will become increasingly common in the future when the society develops increasingly, educational level of the people is improved, and the customer's time is limited, selection of online information exploitation and purchase of goods is convenient and effective because it takes less time for traveling by customers 3.4.2.4 Solution for public relation (PR): In respect of promotion programs: the Company now focuses on customers who are service exploiters, but mainly emphasizing on competition policies on prices, the company has not appropriately cared about the promotion programs In fact, for this channel, promotion does not play the role on stimulating the need of purchasing products because mostly projects are constructed based on benefits of the service package of service exploiters Customer care: currently, mission on customer service of the Company are directly performed through the development strategies of customer relationship as per personnel position or professional departments However, due to characteristics of customers, mission on customer care is to build the strong relationship such as collection of detailed information on personnel positions of customer, reasonable division of personnel, accessing and organizing exchanges between companies as well as organizing tennis and gold prize, picnic, etc Thus, personnel of customer care must have form, social knowledge, skill and capacity of situation process, etc Brand: The company should pay attention to brand associated with the name of GNC to provide appropriate policies The main purposes of brand construction is to increase the awareness of scope of the company and technological products in the future in the name of GNC, so issues related to 72 brand construction that is the strength of the company need to be incorporated strictly and harmoniously so that GNC brand becomes a reliable brand when customers wish to purchase high-tech goods in the future 3.4.3 Solutions on research and development: The Company needs to focus on two key issues: - Increase investment in research and development through the upgrading of facilities and people - Due to the characteristics of the company as a trading company, distributing products with the nature and high requirements of technique, technology, so research and development department must invest in researching and providing product and technology strategic orientation for the company In the immediate future, the company must research the usability and distribution of new technology products of the foreign manufacturers in the shortest time to make the differentiation to the Company This factor is the decisive factor to succeed in strategy on product differentiation 3.4.4 The roadmap and budget to implement strategies of the company: Close to the business strategies of Investment Technology and Equipment Gia Nguyen Co.,Ltd in the period 2012-2017, vision 2022 On the basis of analysis and selection of the market penetration strategy above, implementation route and budget for strategy is: ESTIMATED BUDGET STRATEGY SHOULD BE DURATION ESTIMATED FOCUSED TO (Billion VND) DEVELOPE Ha noi capital and the north 2012 – 2014 Viet nam’s market 17 penetration 2013 – 2015 23 Ho Chi Minh city and the 73 ESTIMATED BUDGET STRATEGY SHOULD BE DURATION ESTIMATED FOCUSED TO (Billion VND) DEVELOPE south of Viet nam’s market penetration 2015 – 2017 The remaining market 06 penetration ASEAN’s market 2016 - 2017 48 penetration Vision 2022 3.5 SOME PROPOSALS FOR THE STATE There are three persist shortcomings particularly emerging in the current difficult period that are:  The State should develop a strictly and apparently legal system to create equal business environment for all economic sectors  The State should promote the administrative reform, refinement of the official apparatus to limit the corruption, harassment of enterprises, especially in customs, tax and market management sectors  The State should have the effective measures to prevent smuggling, trading fraud causing unfair competition and market disruption Implementation of these problems well, the companies who business genuinely have chance in business and development 3.6 CONCLUSION In the fluctuate business environment as current, the competition for survival and development is a difficult task and challenge Therefore, the GNC must promote and combines synchronously and flexibly its core competencies, 74 concentrating to market penetration strategy to continuously stand firm and be capable of development increasingly in the future 75 REFERENCES A Fred R David (2006) Outlines on Strategic Management Statistics Publishing House Fred R David (Thirteen Edition) Strategic Management Concept and case Pearson Michael E Porter (2009) Competitive Strategy DT book Assoc Prof and Dr Nguyen Thi Lien Diep MA Pham Van Nam (2006) Business Strategies and Policies Labour - Society Publishing House Dr Duong Ngoc Dung (2005) Competitive Strategy by Michael E Porter theories Ho Chi minh General Publishing House Harold Koontz Cyril Odonnel Heinz Weihrich (1993) The key issues of management Science and Technology Publishing House Philip Kotler (2001) Marketing Management Statistics Publishing House Ton That Nguyen Thiem (2005) Market Strategy and Structure: Completion on Value added, positioning and developing the enterprise Ho Chi Minh Publishing House Thomas L Friedman (2006) The World is Flat Youth Publishing House Assoc Prof and Dr Tran Ngoc Tho (2005) Modern Corporate Finance Statistics Publishing House 10 W.Chan Kim - Renee Mauborgne (2006) Blue Ocean Strategy Knowledge Publishing House 11 Financial Statements of Investment Technology and Equipment Gia Nguyen Co.,Ltd in 2009 2010 and 2011 12 Website of Ministry of Planning and Investment www.mpi.gov.vn 13 Website of General Statistics Office www.gso.gov.vn 14 Website of Ho Chi Minh City 76 Stock Exchange www.hsx.vn APPENDICES I INTERVIEW QUESTIONARE FOR THE OUTSIDE PEOPLE (CUSTOMER) Method: Interview through phone-call (Estimate time: 20 min/call) Actual situation of Vietnam's telecommunications background The Government’s policies on information technology and telecommunication development assistance Demands on information technology products Actual situation socio-political environment to foreign investments Satisfaction of the sales- services including maintenance, promotion Customer relations change constantly II INTERVIEW QUESTIONARE FOR THE MEMBERS OF GNC Method: Direct interview to randomly people (Estimate time: 30 min/person) Relation with foreign partners and producers Customer care, customer relations Advertisements, promotions, research on demands directions Training and recruitment Satisfaction of present working position Sale distribution 77 ... reasons, we choose the topic: ? ?Formulation business strategy in period of 2012- 2017, vision to 2022 for Investtech GN Company Limited? ?? for our research Goal and subject of research Through the... selection business strategy for Investtech GN Co.,ltd (GNC) in period of 2012- 2017, vision to 2022 Significance of the topic  Scientific significance: Strategic Planning is an effective way for the... ANALYSIS FORMULATED STRATEGIES AND SELECTION BUSINESS STRATEGY FOR INVESTTECH GN CO.,LTD (GNC) IN PERIOD OF 2012- 2017, VISION TO 2022 56 3.1 3.1.1 STRATEGY ORIENTATION 56 Basis for strategy