An analysis of actual situation and some suggestions on overall buniness strategy and stategic solutions for company 185 - Truong Son construction corperation

CAPSTONE PROJECT REPORT AN ANALYSIS OF ACTUAL SITUATION AND SOME SUGGESTIONS ON OVERALL BUNINESS STRATEGY AND STATEGIC SOLUTIONS FOR COMPANY 185 – TRUONG SON CONSTRUCTION CORPERATION Group – Class V02 Student’s name: Hồng Mạnh Hùng Ngơ Anh Tuấn Hồ Nghĩa Đức Lê Thị Hồng Lĩnh VINH 2010 Acknowledgements We wish to express our deepest gratitude to our lecturers for sharing their expertise in their lectures and giving us their indispensable intellectual and scholarly support during the completion of the report Their profound knowledge of theoretical and practical issues concerning our topic is a great source of inspiration to us Our gratitude is also extended to the Board of Directors of Company 185 – Truong Son Construction Corporation for their coordination and helping us in collecting information about the Company without which we could not complete the report We also extend our sincere thanks to our classmates and colleagues for their assistance and encouragement i TABLE OF CONTENTS Ackowledgements List of Diagrams List of Tables INTRODUCTION The rationale for choosing the topic: Subject and Scope of the Study Study Methods Design the assignment CHAPTER 1:THEORIES OF BUSINESS STRATEGIES Definition, features and role of business strategy in 1.1 enterprise 1.1.1 Definition of business strategies 1.1.2 Features of business strategy: 1.1.3 The role of business strategy 1.2 Business strategy administration process 1.2.1 Analysis of situation 1.2.2 Build up strategy 1.2.3 Strategy implementation 1.2.4 Strategy assessment 1.2.5 Requirement of business strategy construction 1.3 Define duty and system of strategic targets : 1.3.1 Strategic duty 1.3.2 System of strategic targets 1.3.3 Principle in target definition 1.4 Analysis of business environment of enterprise 1.4.1 Analysis of macro environment 1.4.1.1 Economic environment 1.4.1.2 Technological environment 1.4.1.3 Social and cultural environment 1.4.1.4 Natural environment 1.4.1.5 Governmental, legal and political envrionment 1.4.2 Analysis of sector environment (operational environment) 1.4.2.1 Analysis of current competitive opponents 1.4.2.2 Analysis of potential competitive opponents 1.4.2.3 Pressure from providers 1.4.2.4 Pressure of customers 1.4.2.5 Replaced products 1.4.3 Analysis of internal environment 1.4.3.1 Factors of human resource and organization ii Page i v vi 1 2 4 7 8 9 10 10 10 12 12 13 13 14 14 15 15 16 17 17 18 18 19 1.4.3.2 Research and development factor (R&D) 1.4.3.3 Financial accounting factors 1.4.3.4 Production and technical factors 1.4.3.5 Marketing and product consumption factors 1.4.4 Analysis of international environment of enterprise 1.5 Distinguish business form 1.5.1 general business strategy 1.5.1.1 Focused growth strategy 1.5.1.2 Integrated growth strategy 1.5.1.3 Diversification strategy 1.5.1.4 Joint venture and association strategy 1.5.1.5 Reduction strategy 1.5.1.6 Mixed strategy 1.5.2 Division business strategy (function) 1.5.2.1 Product production strategy 1.5.2.2 Financial strategy 1.5.2.3 Human resource and organizational struc 1.5.2.4 Marketing strategy 1.6 Methods to analyze and choose strategies 1.6.1 BCG matrix 1.6.2 McKinsey - GE (General Electric) 1.6.3 SWOT analysis and strategic combination CHAPTER 2: ANALYSIS OF FACTORS AFFECTING BUSINESS ACTIVITIES OF COMPANY 185 – TRUONG SON CONSTRUCTION CORPORATION 2.1 General introduction of Company 185 2.1.1 Establishment and development of the Company 2.1.2 Business sectors, targets and operational scope 2.1.3 Organizational structure of company 2.1.4 Business results of the Company 2.2 Analysis of business environment of the Company 2.2.1 Macro environment 2.2.1.1 Economic environment 2.2.1.2 Legal and political environment 2.2.1.3 Natural environment 2.2.1.4 Technological environment 2.2.1.5 Social and cultural environment 2.2.2 Operational environment 2.2.2.1 Current competitive opponents 2.2.2.2 Potential competitive opponents iii 19 19 20 20 20 21 22 22 24 25 25 26 26 27 27 29 29 29 30 30 30 32 33 33 33 34 35 37 37 38 38 40 41 41 42 42 42 44 2.2.2.3 Providers 2.2.2.4 Customers 2.2.2.5 Replaced products 2.2.3 Internal environment 2.2.3.1 Resources 2.2.3.2 Organizational capacity of the company 2.2.3.3 Competitiveness analysis of the company 2.3 Setting up matrix 2.3.1 BCG Model 2.3.2 Mc.Kinsey – General Electric Matrix (Business strategy net) 2.3.3 SWOT Matrix (Only main factors are synthesized) CHAPTER 3: SOME SUGGESTIONS ON OVERALL BUSINESS TRATEGY AND STRATEGIC SOLUTIONS FOR THE COMPANY 3.1 Basis for planning strategy 3.1.1 Strategic tasks of the Company 3.1.2 Strategic targets of the Company 3.1.3 Selection of strategy 3.2 General Business Strategy 3.2.1 Focused Growth Strategy 3.2.1.1 Market penetration 3.2.1.2 Market Development 3.2.2 Co-centre Diversification Strategy 3.3 Some Strategic Solutions 3.3.1 Improve quality of human resource 3.3.1.1 3.3.1.2 3.3.1.3 3.3.2 Improve professional qualifications Increase quality of working life Policy of salary and reward Promote marketing activities 3.3.3 Raise capacity of capital 3.3.4 Renovate the management of production CONCLUSION REFERENCES iv 44 44 46 48 48 55 56 58 58 60 62 65 65 65 65 66 66 66 67 68 69 69 69 70 72 72 73 74 75 76 78 List of Diagrams Page Diagram 1: Model of Business Environment of Enterprise 11 Diagram 2: Model of forces of M.PORTER 14 Diagram 3: Strategic Matrix of MC.KINSEY - GE 30 Diagram 4: SWOT Matrix 31 Diagram - Organizational Diagram of Company 185 34 Diagram 6: Production Process 50 Diagram : BCG Matrix 57 Diagram : Mc.Kisney Matrix 59 v List of Tables Page Table 1: Some Main Norms Reached by the Company within Five 36 Recent Years Table 2: Opportunities and Threats 45 Table 3: Labor Structure of the Company 47 Table 4: Some Financial Norms in 2009 of the Company 49 Table 5: Machines and Equipment of Company 185 52 Table 6: Competitive Image Matrix 54 Table 7: Company’s Strengths and Weaknesses 55 Table 8: Growth Rates and Relative Market Share for Business Items 56 of Company 185 Table 9: The Company’s Business Strengths 58 Table 10: Construction Industry Attractiveness 59 Table 11: SWOT Analysis 60 Table 12: Targets (million VN dong) in 2015 63 vi INTRODUCTION The rationale for choosing the topic: In the current situation in which Vietnam has shifted to a market economy, enterprises have strongly divided into strong and weak ones and competition among the enterprises has become more vigorous To preserve and develop business, enterprises must define a right strategy, as an inappropriate strategy may lead to a failure Activities of enterprises in the market economy are to invest, use resources to compete with opponents to get market share The purpose of enterprises’ activities in the market economy are to reach the possible highest effectiveness for a long time An enterprise’s operational effectiveness is the correlative results between profit from business activities of the enterprise and mobilized resources for such profit For an enterprise, building up a right strategy can have a special significance; timely strategy orientation and strategy adjustment can bring high profit for the enterprise In the globalization of the market, technology always changes, competition is more and more violent, and strategy has become a really important factor Together with scarceness of resources, demand and tastes of social consumption frequently change which make business activities of enterprises more complex and risky To exist and develop, enterprises must build up a strategy Strategy is a special kind of plan that all organizations must design For enterprises, planning is the first function in system of management functions to reach given purposes of the organization Defining strategy must be considered with regard to many objective external factors and subjective internal factors of an enterprise, analyzing systematically related information to define activities of the enterprise in short and long term, and focusing all efforts and resources on main targets so as to meet the highest effectiveness, cope with unexpected situations, adapt to the changes Company 185 – Truong Son Construction Corporation (henceforth referred to as Company) is a unit in the construction sector From the beginning years of operation, Company has experienced many successes and failures and has gained certain achievements It has been well proved in reality that without defining a right strategy, Company can go into traps which is hard for it to get out, then business effectiveness will be reduced, even bankruptcy Therefore, to continue standing in the market and adapting to business environment, Company must build up an appropriate strategy Originated from the importance of planning business strategy for enterprises together with the demand of Company 185 – Truong Son Construction Corporation in defining an appropriate strategy; Group has chosen the topic “An Analysis of Actual Situation and Some Suggestions on Overall Business Strategy and Strategic Solutions for Company 185 – Truong Son Construction Cooperation” with the expectation to work out a right orientation for the Company in the future Subject and Scope of the Study Applying theories and methodologies on business strategy, the assignment will find out bases to plan business strategy for Company 185 - Truong Son Construction Corporation Subject of the study: the topic will carry out an analysis, assessment suggesting business strategy for the Company based on common theories of planning strategy for enterprises Scope of the study: - Theoretical issues on strategies of enterprises, - Bases to form strategies of enterprise, - Building business strategies for Company in short and long term and solutions to implement those strategies Study Methods The study is based on methods such as statistics, synthesis, analysis, contrast, modeling and estimating as well as learned knowledge to carry out analysis and provide assessments of the whole business activities of Company 185 – Truong Son Construction Corporation, and suggest strategies for the Company Design the assignment Apart from the preface, the conclusion and references, the main content of the assignment is divided into three chapters: Chapter I: Theories of Business Strategies Chapter II: An Analysis of Factors Affecting Business Activities of Company 185 – Truong Son Construction Corporation Chapter III: Some Suggestions on Overall Business Strategy and Strategic Solutions for the Company W3 no department responsible for bidding W4 The departments must concurrently various tasks; Directors Board may overwork W5 High product costs problems Analysis and assessment of production results of the Company can show changes of business environment which have greatly impacted business activities of the Company Competition among construction enterprises is more and more violent when Vietnamese economy integrates into global economy To ensure existence and development, Vietnamese enterprises including Company 185 – Truong Son Construction Corporation must have large vision to cope with threats of the business environment, make use of opportunities and threats, overcome weaknesses, and promote strengths to raise its competitiveness To this, the Company must build up a suitable business strategy which can orient production activities of the Company to reach its given targets 64 CHAPTER SOME SUGGESTIONS ON OVERALL BUSINESS TRATEGY AND STRATEGIC SOLUTIONS FOR THE COMPANY 3.1 Basis for planning strategy The planning of business strategy of the Company must be based on the system of the Company’s targets and tasks, and it depends on the following basic factors: Firstly, pursuant to policies, regulations, laws of the Party and the State Secondly, suitable to market development and development trend of the construction industry Thirdly, based on material and non-material resources of Company to build up strategy for each business sector and each unit of the Company Fourthly, pursuiant to the resolution of the Cooperation and the intention of the Company’s Board of Directors in managing production and development of the enterprise Bases to build up business strategies of Company include: 3.1.1 Strategic tasks of the Company To promote business to achieve high social and economic effectiveness, partly contribute to preserve and develop National Defense potential; Raise the status and prestige of Truong Son soldiers in the cause of industrialization and modernization of the country (as stated in Company’s Resolution 2010 – 2015) 3.1.2 Strategic targets of the Company a) Long-term targets (2011 - 2015) (Company’s Resolution 2010 – 2015) The first target is to reach annual revenue growth of12% The second target is that profit ratio reaches 2% of revenue The third target is the value of looking for work of over 70% of output per year The fourth target is that average income of workers is 1.4 times of salary national defense Last but not least is to consolidate 65 and develop the Company’s resources so that the Company can participate in higher market segment (tenders having value of over 100 billion VN dong) The targets (million VN dong) in 2015 are as follow Table 12: Targets (million VN dong) in 2015 TT Targets 2015 Total of 2011-2015 Looking for work 178,196 719,440 Output 254,566 1,027,771 Revenue 204,133 824,155 Average > 1.4 times of salary > 1.4 times of salary national defense national defense 6,124 17,700 income of workers Profit (Source: Calculated by Group based on statistics over the past five years of the Company) b) Short-term target (by the end of 2011) Short-term targets include ensuring sufficient jobs for workers, reaching an average income of the Company of more than 1.4 times of salary national defense, and maintaining capital and ensuring a profit of over 0.7% 3.1.3 Selection of strategy Within the scope of an assignment and time limit, we wish to propose an overall strategy for the Company On the basis of strategic tasks and targets of the Company and the results of the analysis presented in Chapter 2, Group has reached an agreement on the overall strategy for the Company that is GROWTH STRATEGY including Focused Growth Strategy and Co-centre Diversification Strategy combined 3.2 General Business Strategy 3.2.1 Focused Growth Strategy S/O STRATEGY: INCREASE PRODUCTION SCALE 66 The Company needs to make use of opportunities of integration, the priorities given by the State, the supports from the Cooperation, growth rate of the construction industry, etc in combination with using advantages of the Company including prestige, experiences and technology of company to increase the production scale of traditional products S/T STRATEGY: MARKET MAINTAINING AND EXPANSION Make good use of strengths of prestige, experiences and technology of the Company to implement joint venture and association in production and supply products to the market so as to be in good position in current competition and expand market to other provinces and cities W/O STRATEGY: INNOVATE PRODUCTION TECHNOLOGY Make use of supporting mechanism and policies of the Government and the construction industry for enterprises as well as apply technological achievements in construction to innovate technology, adjust weaknesses, and stabilize market, profit and revenue of the Company W/T STRATEGY: PRODUCT DIVERSIFICATION The Company well implements the management in production, optimizes production process so as to reduce product prices, improve the Company’s competitiveness as well as diversify its products so that it can avoid current threats The choice of focused growth strategy is based on competitive advantage that the Company’s completed projects have gained in the current development period Chance of success of this strategy is relatively high 3.2.1.1 Market penetration: The Company needs to use its strengths including prestige, experience, and technology and overcome shortcomings concerning marketing, production management mechanism as well as take advantage of the State’s priorities in order to: 67 Firstly, win tenders of projects of 30-100 billion VN dong in strategic area of Thanh Hoa, Nghe An, Ha Tinh provinces, the type of projects that the Company has strengths to carry out Secondly, receive appointed tenders of national security projects Thirdly, increase production scale of construction materials including asphalt concrete and aggregate 3.2.1.2 Market Development: Firstly, apart from above-indicated strategic areas, the Company needs to expand operational area to the North and the South in order to best exploit the Company’s construction machines and avoid the threats from rainy season The methods are to take advantage of the supports from the Cooperation and its member Companies, and to joint-venture and associate with other companies in the area of the North and the South Secondly, the Company needs to penetrate in industrial zones so as to participate in the construction of infrastructure in those industrial zones in the strategic area (this is the market sector that the Company has not paid attention in the past years) Also, the Company’s market segment currently remains with contracts of lower than 100 billion VN dong There is violent competition in this market segment due to many competitors The Company needs to strengthen resources, take advantage of the Cooperation’s supports, joint-venture with powerful companies so as to be able to enter the higher market segment What is more, although the Company has constructed a great deal of projects nationwide and in Laos, it is suggested that the Company focuses its attention to its target market covering three provices Ha Tinh, Nghe An and Thanh Hoa There is a big number of projects in these three provinces, thus the Company needs to penetrate deeper into this market so as to reduce additional costs arised from the construction of possible projects located far from the Company as well as the distribution of related materials for those projects 68 3.2.2 Co-centre Diversification Strategy Via study, Group has found out some areas that the Company can improve Firstly, the Company owns two areas of land in Nghe An and Ha Tinh that are in advantageous position but have not been used Secondly, the projects being carried out by the Company include items of pavement tiles and drain pipes which account for relatively high proportion Currently, the Company has to buy pavement tiles and drain pipes Additionally, the cities and towns in Thanh Hoa, Nghe An and Ha Tinh provinces have experienced rapid development so the demands for infrastructure construction have increased Thirdly, investment capital to produce cement-sand tiles and centrifugal pipes is not high Fourthly, prestige, experience and technology are the Company’s strengths in construction of roads, bridges and hydraulic projects Therefore, we propose that the Company determine its principal products being roads, bridges, hydraulic projects and infrastructure With current resources, in order to ensure an annual profit of more than 2% of its revenue and avoid risks in investment, the Company needs to expand its production of new products closely related to principal products, namely producing cement-sand tiles for pavement and centrifugal pipes, opening garages for service of construction machines, and sale of petroleum 3.3 Some Strategic Solutions 3.3.1 Improve quality of human resource In the current situation of innovating of management, and raising competition for integration to improve business effect and competitiveness, the role of human resource and personnel organization are very important for implementing given strategies The Company must base on at least main factors which are applying new technique and technology, innovating the organization of production and improving human resource quality especially high-quality human resource There should be investment to develop human resources with knowledge, professional skills, experiences and creativity so that the Company can occupy competitive 69 advantage in the coming period Human resource development can be classified as follows: high ranking leader (director board); professional cadres (cadres of departments) and executive staffs (workers, employees) 3.3.1.1 Improve professional qualifications: • Leading staffs: In short term, the role of managing cadres is very important in innovating production activities and production line capable of adapting to new business model Improve knowledge: With the target to raise quality of managing cadres from now to 2015, trying to increase managing cadres with university qualifications upwards, the Company must have a managing staff with sufficient skills for management, who can be excellent experts and managers making contributions to the process of management innovation of the Company Knowledge can be classified into three main kinds: Economic knowledge This is a very important array of knowledge for any director Deep knowledge of economy can help the director to make right decisions for the development of the enterprise Understanding of market and rules of market as well as the state’s policies such as tax, quota, price adjustments, etc can help the director to synthesize information, select, analyze and make more effective decisions Management knowledge Management knowledge is to know how to organize the management system appropriate to new management mechanism, use qualified cadres, discover important leading phases in each period to grasp the overall understanding of the whole management of the enterprise, solve tasks effectively, timely and flexibly Technological knowledge Technological knowledge is related to professional tasks of the enterprise This is the understanding of technologies that the Company is applying and the ability to grasp changes of technological breakthroughs within the market 70 Standardize managing staffs In general, managing staffs have organizational capacity: systematic thinking, human using and creating good conditions for them to work well They must be the ones who are trained systematically and have skills in managing production Professional staffs: This is the leading staffs in implementing operational tasks to carry out strategies They include leaders and employees of professional departments of the Company To improve the quality of this staff, recruitment mechanism of the Company must provide concrete norms for recruiting highly professional cadres, who are suitable to professional tasks of each functional department With regard to cadres currently working in the Company, they need to continue their study to improve their technical qualification, management capacity The Company must have an appropriate policy that encourages constant updating information to meet demand of innovation and re-training cadres to raise professional skills The Company should also increase job training to raise professional skills The Company needs combine the recruitment of labor with training at universities and institutes within the nation The Company must have a suitable policy to encourage professional cadres to self-study so as to improve professional knowledge It needs to closely coordinate with departments to create a healthy competitive atmosphere to fulfill all objectives and implementing strategies Direct labors: occupy high proportion in labor structure of the Company Professional qualification of workers, employees can indicate skillfulness and capacity to perceive new technology to raise production effect and product quality Skillfulness of workers is expressed in their ability to properly operate machines and equipments and to ensure no errors in the working system to reach high effect Skillfulness of experienced workers is clearly indicated, and young workers have better capacity of faster approaching new technology The combination of 71 these two forces is very important The Company needs to recruit skilled labors to expand production and development Meetings to exchange experiences and equip new knowledge of technology and techniques must constantly be organized because they can be the best form to raise professional capacity of workers These meetings can be good chance for skilled workers to disseminate experiences to new workers and can consolidate close relationship among them 3.3.1.2 Increase quality of working life Creating high working life for labors is one of the targets at which the Company is aiming The Company tries to ensure comfortable and interesting daily life for all workers in their work place Friendly relations among colleagues can help people develop knowledge and positive spirit via work, and this is the target of the Company The Company must pay attention to building a comfortable internal atmosphere Creating a good internal atmosphere must be based on respecting each other Once the labors are respected, they will have incentives to self-study and optimize their capacity to fulfill all targets and strategies of the Company A comfortable and healthy atmosphere is one of the important factors to develop human resources of the Company and create competitiveness, good image and impression for the Company Creating good working environment is to encourage labors to try their best for the common cause of development of the Company 3.3.1.3 Policy of salary and reward: Salary policy is the main incentive to encourage labors to participate into production activities of the Company, which can encourage labors to be creative to raise business effect For workers directly participating in production, salary should be based on products as present, and in the meantime there should be support for them when the Company does not provide them with sufficient work There should be a special 72 salary policy for qualified, experienced and skillful workers, who other competitors of the Company are seeking For instance, the minimum salary for this group of workers is billion VN dong/month despite their less working time due to insufficient work; Compared to the minimum salary, if salary based on product is higher they should get it, but if salary based on product is lower, then they should get minimum salary For indirect workers at production sites, their salary should be paid according to their position and their construction unit’s total product in the term with regard to each person’s work effectiveness, which is evaluated by the Head of that construction unit For office staff, their salary is paid according to working time, their position with regard to each person’s work effectiveness, which is evaluated by the Head of the department For Heads of departments, their salary is paid according to their position, the tasks for which the department is responsible, with regard to the department’s work effectiveness evaluated by Board of Directors The Company should construct a mechanism to encourage and attract company’s labors Apart from the defined salary regulation, the Company must set up mechanism to allocate income according to productivity, quality and working effect This can stimulate labors to improve their personal and professional development to optimize their capability so as to raise their working effect The Company should also ensure stable jobs, assess right capacity and consider promotion 3.3.2 Promote marketing activities: Currently, the demand for construction is increasing according to economic growth rate However, there are so many construction enterprises, thus the market faces the reality of supply exceeding demand Competition to struggle for market is more and more violent In this competition, big construction corporations are occupying high advantages with professional marketing methods To maintain and 73 expand market, promote product consumption, the Company must promote marketing activities with the following tasks First is to establish a department specifically in charge of bidding including qualified members with practical experience Second is to require all members in the Company to have good understanding of its history, achievements and strengths In addition, the Company needs to maintain existing relations with customers (project management units) who understand the Company’s capacity via good quality of the completed projects as they are the ones who can help advertise the brand name of the Company What is more, the Conpany should increase meetings with PMUs to introduce the Company via well-presented brochures introducing capacity Marketing for the Company can be enhanced by establishing a marketing department responsible for promoting marketing for the Company’s products Also, for the market of Ha Tinh, Nghe An and Thanh Hoa provinces, the Company should televise the marketing for its products 3.3.3 Raise capacity of capital Capital is also an important condition to implement business strategy of each enterprise Capital is always the basis and the premise for an enterprise to estimate and define strategies and business plans Therefore business capital has decisive role in establishing and developing of the enterprise Due to the fact that additional capital from the Company’s profit is still limited, apart from capital sources such as loans from banks, loans from its employees, the Company needs to mobilizes capital from other sources: + Using modern equipment and machines in the form of leasing + Credit from providers + Make use of short term debts of the Company + Propose to increase capital via production expanding projects 74 In addition, the Company needs to have an appropriate policy to adjust capital structure and asset to avoid present high risks 3.3.4 Renovate the management of production One of the main weaknesses of the Company is that the costs of its product units are higher than those of other competitors The cause of this weakness is ineffective management leading to loss and waste at the working sites To overcome this weakness, the Company needs to: Firstly, manage the production according to the Company’s internal regulations and norms Consider the Company’s internal regulations and norms its support and life Secondly, set up strict regulations on operation and production; clearly determine rights and responsibilities of each department and individual worker Thirdly, update, make adjustments and complete its internal system of norms on production Fourthly, work should not be appointed by administrative imposing The Company should appointed work to construction units according to a mechanism that can provoke competition among themselves 75 CONCLUSION Planning business strategy is not a simple task that can be done in one or two days, and it is not the task of any single sector Without a strategy and a strategic administration system to solve problems such as technological innovation, production rationalization, market expansion, human resource quality raising, etc., business activities will face difficulties in current rapid economic globalization Together with the whole country, Company 185 – Truong Son Construction Corporation is implementing the cause of integration in violent competition which requires the Company to try its best to find out an orientation compliant with business environment, to exist and grow Looking back on the past itinerary of the Company and its achievements, we cannot forget the efforts of the Company especially in difficult situations This is the collective effort of the Board of Editors and all the cadres in the Company In the coming time, with a well-defined strategy and strong determination, the Company will definitely gain many more achievements which can make a small contribution to the country’s development Within the scope of an assignment, with learned knowledge in MBA Global Advanced program, Group has analyzed the process of development of Company 185 – Truong Son Construction Corporation and proposed some suggestions for planning business strategies for the Company The content of the report focuses on the following main points The firts point is systemizing basic knowledge in planning business strategy The second is applying basic theories of business strategies to analyze the background of business environment, strengths and weaknesses of the Company, and use models of strategic analysis to realize factors having impacts on business activities of the Company The third is basing on scientific theories to propose business strategies for the Company and strategic solutions to realize these proposed strategies 76 Due to time constraints, here and there in the report there can be found unavoidable mistakes We appreciate comments and suggestions from the teachers and the other learners in the class to improve the report 77 REFERENCES Report on plan implementation of the years 2006, 2007, 2008, 2009 and planned tasks in 2010 of Company 185 Organizational and operational charter of Company 185 – Truong Son construction corporation promulgated in 2005 Lê Thế Giới, Nguyễn Thanh Liêm, Trần Hữu Hải Strategic Management Hanoi: Statistical Publishing Hill, M., Ireland, R., and Hoskinsson, R., 7/e, Thomson Southwestern 2007 Strategic Mangement: Competition and Globalization Ngô Kim Thanh, Electric file of the subject Strategic Management Nguyễn Thành Độ, Ngô Kim Thanh (1999), Policy and Strategy of Business, post graduate manual book Nguyễn Hữu Lam (1998), Strategic Administration for Competitive Position, Hanoi: Educational Publishing Nguyễn Văn Nghiến (2005), Enterprise Strategy, post graduate manual book Nguyễn Tấn Phước (1996), Business Strategy and Policy Hanoi: Statistical Publishing 10 Đỗ Văn Phức (2005), Business Management Science Hanoi: Scientific and Technical Publishing 11 Đỗ Văn Phức (2004), Managing Cadres in Industrial Production Hanoi: Scientific and Technical Publishing 12 Phan Thị Ngọc Thuận (2005), Business Strategy and Internal Plan of Enterprise Hanoi: Scientific and Technical Publishing 13 Congress Document of Viet Name communist Party issued in 1991 14 Philip Kotler (1997), Marketing administration Hanoi: Statistical Publishing 15 Company’s Party Conference Resolution 2010 – 2015 78 ... stock company 482, construction and commerce joint stock company 423 and some other companies such as 25 Song Da construction joint stock company, Truong Son Ltd Company, Manh Cuong Ltd Company; ... Situation and Some Suggestions on Overall Business Strategy and Strategic Solutions for Company 185 – Truong Son Construction Cooperation” with the expectation to work out a right orientation for. .. CHAPTER ANALYSIS OF FACTORS AFFECTING BUSINESS ACTIVITIES OF COMPANY 185 - TRUONG SON CONSTRUCTION CORPORATION 2.1 General introduction of Company 185 1 Establishment and development of the Company