The general developing strategy for vicostone in period of 2012-2013

CAPSTONE PROJECT REPORT THE GENERAL DEVELOPING STRATEGY FOR VICOSTONE IN PERIOD OF 2012-2013 Group number: Students’ name: Nguyen Viet Dung Nguyen Chu Son Nguyen Trung Dung Doan Ngoc Dung Class: GaMBA01.N06 HANOI, 2011 TABLE OF CONTENTS LIST OF CHART LIST OF FIGURES LIST OF TABLES INTRODUCTION CHAPTER I: THEORETICAL FOUNDATION OF MARKET PENETRATION STRATEGY 1.1.Some concepts and definitions related to strategy 1.2.Process of building strategy 1.3.The analytical models used to build strategy 1.3.1.The models analyzing the factors outside the enterprise 1.3.2.Internal Factor Evaluation Matrix (IFE) 1.3.3 SWOT model 1.3.4 TOWS matrix model 1.3.5.Space Matrix 10 1.3.6 Quantitative strategic planning matrix model (QSPM) 11 1.4.The type of strategy for a company 12 1.4.1 Corporate-level strategy 12 1.4.2 Business Strategy 12 1.4.3 Functional or departmental – level strategy 12 CHAPTER 2: ANALYZING THE SITUATION OF VINACONEX ADVANCED COMPOUND STONE JOINT-STOCK COMPANY (VICOSTONE) 13 2.1 Overview of Vinaconex Advanced Compound Stone joint stock Company (Vicostone) 13 2.1.1 General Information [VIE 2, page.11] 13 2.1.2 Mission, vision, strategy[VIE 2, page.2] 13 2.1.3 Field activities, technologies, products 14 2.1.4 Relating Companies 15 2.1.5.The important milestones 16 2.2 Analyzing the status of Vinaconex Advanced Compound Stone Joint Stock Company 18 2.2.1 The common conditions in Vietnam 18 2.2.2 Business development in advanced stone products 21 2.3 Strengths, weaknesses, opportunities and threats of the business 34 CHAPTER 3: PROPOSE STRATEGY AND SOLUTIONS TO IMPLEMENT FOR VINACONEX ADVANCED COMPOUND STONE JOINT-STOCK COMPANY 36 3.1 Developing direction of Vicostone 36 3.2 Analysis of strategies and decisions to choose strategy for Vicostone 37 3.2.1 The strategies can be implemented by Vicostone 38 3.2.2 Selecting the main strategy for Vicostone 44 3.3 Propose some measures to implement after choosing strategy for Vicostone 45 3.3.1 Financial solutions 46 3.3.2 Marketing solutions 46 3.3.3 Solutions in technology, research and development 48 3.3.4 Human resource orientation 49 3.3.5 Solutions in the process of managerial organizing and production 50 3.4 Propose roadmap for implementing strategy of Vicostone 51 CONCLUSION 54 REFERENCES 55 LIST OF CHART Chart 2.1: Organization chart of Vicostone 28 LIST OF FIGURES Figure 1.1: Product Life Cycle Figure 1.2: Example of EFE matrix Figure 1.3: Example of IFE matrix Figure 1.4: TOWS matrix Figure 1.5: SPACE matrix Figure 1.6: QSPM model 10 Figure 2.1: The process of producing artificial stone 14 Figure 2.2: Value of total assets over years 30 Figure 2.3: Charter capital and Equity over years 30 Figure 2.4: Revenue, pretax profit, after tax profit over years 31 Figure 3.1: Vector built from SPACE matrix of Vicostone 41 LIST OF TABLES Table 2.1: Average per capita income for years 20 Table 2.2: Percentage of urban population of region for years 20 Table 2.3: Situation of business result of Vinanvico in 2010 25 Table 2.4: EFE matrix of Vicostone Company 27 Table 2.5: The labor structure of Vicostone 29 Table 2.6: Average income for years 29 Table 2.7: Value of assets at the end of 2010 30 Table 2.8: The basic financial indicators over years 31 Table 2.9: Estimated profit distribution of the parent Company in 2010 32 Table 2.10: IFE matrix of Vicostone 33 Table 2.11: SWOT matrix of Vicostone 34 Table 3.1: Build the TOWS matrix 38 Table 3.2: SPACE matrix 40 Table 3.3: QSPM matrix 41 Table 3.4: The implementation roadmap for Vicostone 51 INTRODUCTION The existence of stable and sustainable development is always a top concern for every business In the context of competition and globalization are increasingly fierce as today, businesses need to take clear and solid steps to ensure the success achieved in the market Strategic management is an important key to help the corporate determine the most appropriate way to develop Therefore, the understanding of the principles and how to conduct strategic management in forming policy for the business is very important Vinaconex Advanced Compound Stone Joint-stock Company (abbreviated name is Vicostone) is an enterprise specializing in producing advanced artificial stone for export Therefore, for companies, Vietnam market is a market with great potential but to being ignored Vicostone is planning to research in order to develop the brand and Vicostone’s products in Vietnam market Based on the needs of Vicostone, the group has conducted to research topic of building “The general developing strategy for Vicostone in period of 2012-2013” The purposes of the research team to implement the project are: • Giving a number of methods and models used for building strategy for a business • Analyzing and evaluating the operation status of Vicostone with artificial stone products manufactured by company • Proposing strategies and solutions needed to help Vicostone bring advanced artificial stone products gradually to penetrate Vietnam market Object of the research is Vinaconex Advanced Compound Stone Joint-stock Company (Vicostone) with artificial stone products manufactured by using advanced Composite materials Currently this product is provided in the world market by the company However, the domestic market is of great potential to being ignored In that context, the building a strategy to penetrate Vietnam market is an appropriate decision Based on the data collected within the scope of research, project mainly gives the comment and assessment, forming market penetration strategy of advanced stone products of Vicostone in period of 2012 - 2013 The research is based on the theoretical basis of the Marketing subject, human resources management and especially based on the theory of Strategic Management In addition to some traditional methods of research such as synthesis, comparison and analysis on the basis of data collected, the authors use some methodological characteristics of strategic management as a model SWOT analysis, TOWS, PEST, QSPM and some other models Besides an introduction, conclusion, appendices, tables, table abbreviations, the capstone project report is presented in 03 chapters Chapter I: Theoretical foundation of market penetration strategy Chapter II: Situation analysis of factors and features works from the inside and outside of Vicostone Chapter III: Strategy options for Vicostone and measures to implement that strategy Our group would like to send sincere thanks and deep gratitude to the teachers of training program of Master of Business Administration GaMBA - Grigss University organized by ETC - Hanoi National University Additionally, our group would also like to thank the whole class, management board of class GaMBA01.N06, who has many comments and are dedicated to helping groups this research CHAPTER I: THEORETICAL FOUNDATION OF MARKET PENETRATION STRATEGY 1.1 Some concepts and definitions related to strategy Before conducting a deep understanding of strategic management, we need to learn some basic concepts related to strategy and strategic management What is Strategy? According to the slide lecture, the strategy is "a complex series of actions to mobilize as many the resources as an organization / individual can to achieve a specific purpose." According to Fred R David, the strategy is "the means to achieve long-term goals." [VIE 1, page.20] What is strategic management? According to Fred R David, that is "an art and science establishment, implementation and evaluation of decisions related functions allowing an organization to achieve these goals [VIE 1, page.9] Strategists, who are they? The strategy builders may be strategic executive directors, president, owner, chief financial officer or some companies have titles of chief strategy officers They are responsible for developing strategies for the organization Objective: according to Fred R.David, that is “the determined achievements which an organization finds the way to obtain while pursuing its main mission” [VIE 1, page.19] Policy is the guidelines for making decisions and demonstrate the situations are often repeated or cyclical situations"[VIE 1, page.22] Vision: can be understood as the picture that the organization wants to reach and achieve in the future We can see the desire and motivation of corporate activity based on the vision Opportunity is a condition in the general environment that if a company knows how to exploit, it will achieve strategic competitive advantage Challenge is a common environmental condition which can interfere with a company in the process of gaining a strategic competitive advantage 1.2 Process of building strategy Strategic management process includes the following stages of implementation: + Analysis of the organization (including external and internal) and building strategy + Implementing the strategies outlined + Reviewing implementation of strategy and controlling system to make necessary adjustments 1.3 The analytical models used to build strategy 1.3.1 The models analyzing the factors outside the enterprise 1.3.1.1 P-E-S-T Model Models PEST (Political Factors - Economic Factors – Socio-cultural Factors Technological Factors) is a model to study the effect of macroeconomic factors to business and industry activities These are factors outside the direct impact to the business: politics - law, economy, socio - culture and technology Political - law factors: These are laws and rules in the legal framework that organizations must comply The laws as law on enterprise, investment law, labor law and the tax policy, import and export policies, trade, support will affect the operations of the business Economic factors are the elements of the current state of the economy This includes factors such as interest rates, inflation, recession, growth rate, GDP per capita These factors will impact the business strategy Social - cultural factors are the demographic elements such as population, average lifespan, population distribution, education or are the elements of the customs, practices, lifestyle, trends, social movements It helps to distinguish and identify customer groups which are suitable with products and services of enterprise Technological factors: today manufacturing sector has been growing thanks to technological development Therefore, the technological environment in each country is favorable condition for development Policies to promote research and application of science and technology will be the motivation to manufacture more goods of higher quality 1.3.1.2 Product life circle model Figure 1 Product Life Cycle [Eng 2] In this model, there are four stages in the lifecycle of a product: Introduction, Growth, maturity and decline which any product has to go through Characteristics of each stage as follows: Introduction: This is the initial stage of the product Products are new to the market Consumers are unfamiliar with the existence of them Reasonable strategy for this stage is that the manufacturer should focus on researching products to meet consumer tastes, concentrating on production and branding Growth: This is a period of strong growth of the product For this stage, it is necessary to promote the expansion of production in order to capture as much market share as possible, because in this stage, other competitors also begin to seeing the attractiveness of the market and join This is the stage in which the demand is greater than the supply Maturity: the saturation stage is the stage where the number of products provided in the market is extremely abundant Prices tend to decline and the market is in favor of the demand, it means that the profit per product will slow down and tend to decrease The strategy of this phase is to research to add value or different values for the product to compete ... research topic of building ? ?The general developing strategy for Vicostone in period of 2012-2013? ?? The purposes of the research team to implement the project are: • Giving a number of methods and... determine the most appropriate way to develop Therefore, the understanding of the principles and how to conduct strategic management in forming policy for the business is very important Vinaconex... environment creating conveniences or difficulties for businesses The information in the EFE matrix consists of: List of factors affect the opportunities and challenges of the business, assess their importance