ASSIGNMENT STRATEGIC MANAGEMENT3

CHAPTER I : INTRODUCTION Vietnam joined the World Trade Organization (WTO), the current trend of globalization, enterprises are faced with a great opportunity to build and develop to a new level and also toface with great potential Real estate is a very specific business areas, requires special conditions such as strong financial resources, ability to raise capital, a good relationship with the authorities specialized management-oriented as well as long-term vision of business leaders Real estate business activities cyclical, so huge risk, however, comes with risks is very attractive profit so business sector is increasingly attracting businesses to participate Vietnam in general, Ho Chi Minh City and other cities, other provinces across the country in particular is on the rise rapidly, the demand for real estate products such as housing, office buildings, high commercial, hotel, ground very large, this is a great opportunity and also a challenge of the real estate business enterprise Therefore, I chose the topic "Business Strategy Real Estate Corporation's real estate and construction services DAT XANH (DAT XANH GROUP)" to this assignment and system theoretical foundations of strategies as prerequisite for the analysis of factors affecting the company's activities, strategy formulation Analysis of environmental factors affecting the real estate business, production and business activities of the company which combined with oriented, DAT XANH GROUP goal to propose a real strategy property of DAT XANH GROUP We will be found that when the company will be face to the changing business environment, whether need an adjustment for the statement of vision, mission and core values of the company or not Tools used in this process are: the external environmental analysis is done with the Environment Scanning in combination with PEST; to get results on the understanding of the participants theoretical analysis environment; understanding of the participants about the current environment and the future of the Corporation; draft SWOT matrix; capacity development of members of the environmental analysis of the organization to identify opportunities, threats, strengths and weaknesses of the company to identify vision, mission, and core values as well as core competencies companies to form strategic direction of development may have for the company and to assert development strategy Phan Thi Mai Phuong, ID: 2444702 Page of 43 CHAPTER II : CRITICALLY EVALUATE DAT XANH GROUP’S VISION AND MISSION STATEMENT BASED ON COMPONENTS OF VISION AND COMPONENT OF MISSION STATEMENT 2.1 Introduction Strategy implementation requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed Strategy implementation includes developing a strategy-supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information systems, and linking employee compensation to organizational performance According to the Message from the Chairman of the Board of Directors 2012, Mr Luong Tri Thinh announced that “Having undergone significant changes in the market, Dat Xanh Group has always maintained its sustainable development and growth, affirming its position in Vietnamese real estate market, firmly gaining confidence and loyalty in the heart and soul of the customers as well as the partners With the strategy of multi-industry, multi-ownership and multination intermingling with the global common trend of integration and competition, fully adapting to the incessant changes and satisfying the operational needs and the global economic development, Dat Xanh Group implements the business models of joint venture, association, cooperation with financial institutions, banks, technological organizations, and HR consulting companies aimed at improving its competitiveness to a new high level in the increasingly tougher market” The strategic-management process includes the strategy -formulation, strategy implementation, and strategy evaluation 2.2 Definition Before we further discuss strategic management, we should define some key terms: strategic management, competitive advantage, strategists, vision and mission statements, external opportunities and threats, internal strengths and weaknesses, long-term objectives, strategies, annual objectives, and policies - Strategic management: According to strategic management book can be defined the strategic management as the art and science of formulating, implementing, and evaluating crossfunctional decisions that enable an organization to achieve its objectives.(Fred R David, Strategic management concepts and cases, thirteenth edition) - Vision: An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future It is intended to serves as a clear guide for choosing current and future courses of action.(www.businessdictionary.com/definition/visionstatement) Phan Thi Mai Phuong, ID: 2444702 Page of 43 - Mission: A written declaration of an organization's core purpose and focus that normally remains unchanged over time Properly crafted mission statements (1) serve as filters to separate what is important from what is not, (2) clearly state which markets will be served and how, and (3) communicate a sense of intended direction to the entire organization (www.businessdictionary.com/definition/mission-statement) 2.3 Introdution for Vision and Mission Statements Many organizations today develop a vision statement that answers the question “What we want to become?” Developing a vision statement is often considered the first step in strategic planning, preceding even development of a mission statement Many vision statements are a single sentence For example, the vision statement of Phat Dat Corporation Real estate at HCMC is “Becoming a leading company in the business sector by promoting the prestige and quality the best customer service in the area.” (http://www.hamasco.com/vision) Mission statements are “enduring statements of purpose that distinguish one business from other similar firms A mission statement identifies the scope of a firm’s operations in product and market terms.” The basic question that faces all strategists: “What is our business?” A mission statement is a constant reminder to its employees of why the organization exists and what the founders envisioned when they put their fame and fortune at risk to breathe life into their dreams And also is Real Estate begins with property, but it doesn't end there Whether your business deals with purchases, sales, financing, or everything regarding property, you can learn something from what these companies see as their mission in Real Estate Here is an example of a mission statement for real estate at HCMC such as “Providing products and services of high quality, innovative solutions with the best cost to the client aims to bring the sustainable development, ensure the rights of shareholders, bringing the adequate living for workers and contribute to the development of the country.” (http://www.hamasco.com/mision) 2.4 Đat Xanh Group’s vision and mission statement Dat Xanh Group became one of Vietnam's leading economic groups and reaching out to the world in a near future through their vision and mission as: 2.4.1 Vision To become a multi-industry, multi-ownership and multinational group and focus on customers, products or services, and markets Phan Thi Mai Phuong, ID: 2444702 Page of 43 2.4.2 Mission The operational targets of Dat Xanh are to provide the best products and services, creating added value for customers, benefits for investors and shareholders Additionally, the living standards of the staff are continuously improved, benefits are brought about to shareholders and thus, making valuable contributions to the community and to the socio-economic development of the nation There are three enduring core values that Dat Xanh group has clarified; they are: solution of creativeness - effectiveness, and high professionalism and looking towards the future These values have created brand differentiation for Dat Xanh Group in the fierce race with strong real estate companies like Sacomreal, Saigonland and Homecare They are publicly shared in its webpage, which enables whole employee to understand fully about the company’s ‘soul’ and what the company needs to strive for and maintain Once the brand value is tied to the staff, they become inspired and more committed to reinforce the brand 2.5 2.5.1 Explain the importance of a vision and a mission statement The importance of vision The business vision statement creates a compelling image of the future for the organization The staffs in organization use the business vision as a guidepost for decision making, from strategic decisions through to operational decisions The vision statement captures the idealism or "standard of excellence" that reflect the aspirations of the management team This decision sits at the top of the decision network hierarchy, creating the opportunity to influence and guide decisions throughout the business An effective business vision statement can have a huge influence on the allocation of resources and be an important tool in driving change According to Mr Fred R David, A vision statement should answer the basic question, “What we want to become?” A clear vision provides the foundation for developing a comprehensive mission statement Many organizations have both a vision and mission statement, but the vision statement should be established first and foremost The vision statement should be short, preferably one sentence, and as many managers as possible should have input into developing the statement ((Fred R David, Strategic management concepts and cases, thirteenth edition) A business vision statement describes what the company want to be in the future (usually beyond years), or how the world could be, in part, due to the company's efforts The vision has the end result in mind and can provide the inspiration and reason for fulfilling its mission We should find some the criteria for choosing a business vision statement such as: Phan Thi Mai Phuong, ID: 2444702 Page of 43 The following criteria are some of the most common success factors used in evaluating a business vision during the decision making process • A business vision should aim high and represent the creation of maximum value for its customers Value characterizes the amount people will pay above the cost to deliver • A business vision statement should inspire and motivate the business team, partners, and customers It should represent a worthy, reach out aspiration • The vision should be realistic and compatible with the core competencies of the business The team should believe they can deliver on the vision • The business vision should stand up for a long time in the face of business and cultural trends • Business vision statements should be simple and provide clarity and focus • A vision should be unique and distinguish the business from others • The vision statement should represent and promote the business in the market place • The wording of the vision statement should be easy to remember However, we should be having a robust set of options to choose from Do not underestimate the impact this selection can have on your strategic decision making For a new or small firm, a business vision can be critical to developing an organized plan When communicated effectively a business vision statement will: •provide guiding requirements for decision making throughout the business decision network; •create value for all stakeholders, including customers; •build alignment and commitment at all levels of the organization; •facilitate constructive change; •serve as a roadmap for future decisions; •inspire and motivate action even through tiring details; and •prepare the business for the future A truly great vision will come to life in the everyday actions and behavior of the business team It becomes part of the organization's culture Therefore, they need to build a vision which plays the role as a lighthouse keeping them stay true in their ways when the unpredicted economic waves appear In addition, a vision also allows the employees to realize what responsibilities they should take Finally, there are three key components suggest to adding for the Dat Xanh vision to becoming a more successful real estate investor - We can help you buy if that is your goal With Vision Real Estate, we can help you buy if that is your goal as property managers; we know well what makes a property a good one to own When you’re ready to transition from renting to Phan Thi Mai Phuong, ID: 2444702 Page of 43 owning, we can help take you through that process so you can find a home that you love and that won’t break the bank! 2.5.2 The importance of Mission Mission statements can and vary in length, content, format, and specificity as well as the following nine components: - Customers - Products or services - Markets - Technology - Concern for survival, growth, and profitability - Philosophy - Self-concept - Concern for public image - oncern for employees According announcing of Dat Xanh Group’s mission, the operational targets of Dat Xanh are to provide the best products and services, creating added value for customers, benefits for investors and shareholders Additionally, the living standards of the staff are continuously improved, benefits are brought about to shareholders and thus, making valuable contributions to the community and to the socio-economic development of the nation (Dat Xanh Group’ sources that have been announcement at http://en.datxanh.com.vn/about-us/362-14-vision-mission-and-core-value.aspx) Those characteristics of a Mission Statement above is suitable with some the factor of Đat Xanh group’s Mission such as customers, products or services, markets, survival, growth, profitability, and the beliefs, values, aspirations, ethically However, some the factor should be add to Đat Xanh group’s mission as the technologically current, environmental In short, almost all the organization at Vietnam doesn’t focus on the vision and mission statement That is lacking in a plan of the organization life Almost the organization at Vietnam doesn’t seem interest in for making a plan clearly with a good vision and mission when beginning their business They don’t focus or follow what they written in their vision and mission statement So, we easily see that when corporate life in the most difficult period, they lack enduring This is the most important for the survival of a business Phan Thi Mai Phuong, ID: 2444702 Page of 43 2.5.3 Conclusion Every organization has a unique purpose and should be have the uniqueness to reflect in vision and mission statements The nature of a business vision and mission can represent either a competitive advantage or disadvantage for the firm An organization achieves a heightened sense of purpose when strategists, managers, and employees develop and communicate a clear business vision and mission According to Peter Drucker who was the professor of management at the New York University says that developing a clear business vision and mission is the “first responsibility of strategists.” According to Mr Luong Tri Thin, director of Dat Xanh Group said in the message from the chairman of the Board of directors that “has confirmed one again for the business development of green land must have a vision and mission as the first responsibility of strategists and multidisciplinary strategy, multi-property and multi-national trend of global integration and competition, the best response to the change, operation and development of the global economy With this strategy Dat Xanh advocated joint ventures, cooperation with other organizations of Finance, Banking, Technology, Human Resources to optimize the competitiveness in the market” (Message from the Chairman of the Board of Directors by website Dat Xanh group) Good strategists and a clear mission help us find a statement is essential for formulating, implementing, and evaluating strategy Developing and communicating a clear business vision and mission are the most commonly overlooked tasks in strategic management Without clear statements of vision and mission, a firm’s short-term actions can be counterproductive to long-term interests Vision and mission statements always should be subject to revision, but, if carefully prepared, they will require infrequent major changes Organizations usually reexamine their vision and mission statements annually Effective mission statements stand the test of time In short, to build and develop the power of vision and mission, the company should make a certain power for person who have responsible for the development, implementation, evaluation, and supplements However, some studies have found that having a mission statement does not directly contribute positively to financial performance A vision and mission system will present from the board if managers to each department at each company then going in to inspire the consumer to understand and see clearly for the power of vision and mission that that company Phan Thi Mai Phuong, ID: 2444702 Page of 43 CHAPTER III : ENVIRONMENTAL AN EXTERNAL SCAN STRATEGIC REVEALS KEY MANAGEMENT OPPORTUNITIES AUDIT AND OR THREATS CONFRONTING SO THAT DECISION MAKERS CAN FORMULATE STRATEGIES TO TAKE ADVANTAGE OF THE OPPORTUNITIES AND AVOID OR REDUCE THE IMPACT OF THREATS USING PESTLE ANALYSIS AFFECTING THIS COMPANY 3.1 Introduce Whether you are planning a trip, or an excursion to buy groceries, or the direction of a corporation, you need to consider the larger external environment For example, you want to go grocery shopping in the next town You'd like to get this done as quickly as possible So, you turn on the radio to listen to the traffic report Oops There's been an accident on the highway you usually take to get to the store What you do? You plan to take an alternate route that will keep you out of the traffic jam You've done a limited form of environmental scan In terms of organizations and strategic planning, an environmental scan involves considering the factors that will influence the direction and goals of your organization And, it includes consideration of both present and future factors that might affect the organization, since, of course, we're planning for the future, not just the present Low consumer demand is a factor in slow business conditions, with regulation and government cost imposts acting as an ongoing problem for development and new business An ongoing commitment to training will be critical to avoid future skills shortages that will restrict growth and impact adversely on consumer impressions of the quality of construction and property services goods and services and also need the support urges from governments to continue to financially support the necessary professionalisation and higher technical competencies of the existing workforce to promote career progression and meet industry demand for higher skilled technical personnel, supervisors and managers 3.2 Đat Xanh group’s environmental scan “[The real estate market] has contributed an important part to ensuring economic growth and social security, but besides the positive results there remain a number of weak points,” Minister of Construction Nguyen Hong Quan said in an interview with VnEconomy News Problems still persist, such as high housing prices and the difficulties that have to be faced in everyday management In addition, a lack of luxury apartments and offices in recent years has caused the market to focus on this kind of construction; leading to an over-saturation of supply and a high rate of unsold properties Another weakness of this sector is the financial system, with a lack of mid to Phan Thi Mai Phuong, ID: 2444702 Page of 43 long-term credit and high short-term lending interest rates Doubts arise about the rumors affecting the real estate market, followed by speculation, price hikes and market instability Only 30 percent of the total floor space built in 2010 was belonging to real estate companies, whereas the latter 70 percent was built by individuals for their own use, according to Quan Furthermore, the secondary market has no direct access to the public and no fund certificates circulate through small investors Foreigners, not allowed to invest in real estate trading, are involved only in construction projects On the other hand, the risks seem to be always around the corner, because of the misleading pricing trend which can attract low quality investors, with low experience and borderline financial situations The Vietnamese government is a primary player in this field and follows its development closely, driving it through a continuous improvement of new regulations and laws The primary target is to control the effectiveness of capital investment flows in the market, fight mere speculation, and keep it alive and dynamic in order to lower the risk of bubbles and reduce effects on inflation 3.3 PESTEL analysis PESTEL analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management We should be inserting Environmental factors expanded it to PESTEL, this model has recently been further extended to adding education and demographic factors It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macroenvironmental factors that the company has to take into consideration It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations The growing importance of environmental or ecological factors in the first decade of the 21st century have given rise to green business 3.3.1 Politics Political factors are how and to what degree a government intervenes in the economy Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability Political factors may also include goods and services which the government wants to provide or be provided and those that the government does not want to be provided Furthermore, governments have great influence on the health, education, and infrastructure of a nation Phan Thi Mai Phuong, ID: 2444702 Page of 43 Vietnam joined the WTO on 7-11-2006, and was recognized as an official member of this organization on 11-1-2007 The WTO has opened up great opportunities for Vietnamese goods and services with the broader market, consisting of 155 members, accounting for 97% of global GDP After five years of joining the WTO, Vietnam's economy has grown strongly in all fields, particularly in the field of trade and services Even 28-7-1995 Vietnam became the 7th member of ASEAN, then, Vietnam has good take on the role of Chairman of the ASEAN Standing Committee (tenure 7-2000 to 7-2001 However, with the aim of curbing inflation in 2011, the tightening monetary policy of the Government of Vietnam has led to the lack of capital in real estate market, resulting in a tough year for almost every real estate companies In addition, the fees and expenses of trading real estate are also rather high These unexpected factors have slowed down the development of real estate industry in Vietnam The process of globalization has also led to fierce competition from large real estate conglomerates in the world Becoming a member of AFTA and WTO, Vietnam Government is reducing tariffs and phasing out trade barriers, which help to attract more and more investment projects in the countries According to the figures from a survey of National Financial Supervisory Commission, 52% of overseas remittances for Vietnam in 2011 (about USD9 billion) is invested in real estate This is really a driving force for the development of real estate industry in Vietnam, Some of the trading policy, administration related to the real estate is improved to make more good sound for real estate market Position of Vietnam has constantly strengthened and improved, more general contribution to the prosperity of the area vuc.Thang 11/1998, Vietnam became an official member of the Economic Cooperation Foruminternational Asia-Pacific (APEC), marking an important step in the process of international economic integration of Vietnam (http://www.mofahcm.gov.vn/vi/mofa/nr040807104143/nr040807105001/ns081217091422) And Vietnam’s young and cheap workforce also a competitive advantage to appeal foreign investments in real estate market However, with the aim of curbing inflation in 2011, the tightening monetary policy of the Government of Vietnam has led to the lack of capital in real estate market, resulting in a tough year for almost every real estate companies In addition, the fees and expenses of trading real estate are also rather high These unexpected factors have slowed down the development Phan Thi Mai Phuong, ID: 2444702 Page 10 of 43 - 21.03.2012: Organization "enjoy a peaceful life week" 21/03/2012, Eden Estate Company Limited will hold a week of purchase real estate with the theme "enjoy a peaceful life week" - 25.03.2012: Official opening sale in Gold Hill On 25/3, Dat Xanh Group will officially open to sell Gold Hill project with many preferential policies, promotions in restaurants Himlam, 234 Ngo Tat, Ward 22, Binh Thanh District, Ho Chi Minh City - 2012: The construction land "Advice prices drop 2nd - 2012" Following the success of the workshop "The economical solution for housing in 2011" (Sources from the business department of Dat Xanh Group) d Application of EFE Introduction EFE Matrix allows strategic management rules summary and evaluation of the economic information, social, cultural, demographic, geographic, political, legal, technological and competitive That helps the administrator can identify strategic opportunities and external threats affecting the company There are five steps in developing evaluation matrix elements outside The analysis of the external environment assessment of Dat xanh group will show the opportunities and risks that the company may encounter from the business environment From which the appropriate strategy to minimize risk and take advantage of new opportunities for the development of the company External environment including the macro environment and micro environment to develop a strategy to improve the weaknesses of the company Dat xanh group and turn it into strength, and, if possible, become capable of special company Main scope of activity of Dat xanh group in Ho Chi Minh City and the neighboring provinces of Ho Chi Minh City to study string analysis on the issues that the author is focused on analyzing the external environment is major environmental Dat xanh group in Ho Chi Minh City From the analysis, assessment of the macro environment as: economic environment, the political environment legislation, environmental working population, socio-cultural environment, environmental technology, integration in the Ho Chi Minh City have established efe matrix of the Dat xanh group are as follows: No Key External factors Weight Rating (1) (2) 0.158 Weighted score (3) = (1) x (2) Opportunities Political environment, stable laws Phan Thi Mai Phuong, ID: 2444702 0.158 Page 29 of 43 Direct foreign investment 0.1 0.3 Legal procedures of the project 0.09 0.27 Advancement in technology 0.09 0.36 Vietnam's accession to WTO 0.08 0.16 Interest rates, financial markets 0.08 0.32 Vietnam has favorable business environment 0.04 0.08 Increase in tourists 0.03 0.06 Vietnam is Considered as a good country to invest 0.029 0.058 Human resources with graduate and over graduate 0.02 0.04 0.088 0.352 10 degrees Threats The proportion of the contribution to GDP of 11 operations real estate has fallen from 4.85% in 2010 and 4.73% in 2011 (According to the statistics of Ho Chi Minh City) 12 Economic crisis 0.07 0.28 13 Inflation 0.07 0.28 14 Purchasing power of consumers to reduce 0.025 0.075 15 Real estate business with cycle properties 0.03 0.03 Total 2.766 Figure EFE analysis  Political environment, legal: factors affecting the development of the orientation so weight is 0.158 however the level of the company's response to these factors lower with a score of 1, Weighted score 0.158  Factors foreign investment: influence of industry was 0.1, the company's response level is and Weighted score of the company about this factor is 0.3  Factors legal procedures Project: weight for the industry is 0.09, and the rating was 3, the weighted score is 0.27 show the response of companies about the investment project profile and approve takes time and cost of construction delays  Advancement in Technology: This is the technical sector's weight was 0.09, rating of 4, the weighted score of 0.36 applied science and technology company in the deployment and organization of construction works  GDP factors: weight for the industry is 0.088, the company's rating was 4, the company's weighted score for this factor is 0.352  Interest rate factor: weight of the real estate industry is 0.08, the rating of the company was $ Phan Thi Mai Phuong, ID: 2444702 Page 30 of 43 4, weighted score of 0.32 due to interest rate changes affect the cost of the investment company  Inflation: weight for the industry is 0.07, the rating of the company on this factor is 4, the weighted score was 0.28 shows the response of the company due to inflation increases the cost of investment  Economic crisis: This factor weight was 0.07, the rating of the company was $ 4, weighted score of 0.28 represents the company's business in the difficult economic situation affecting the construction progress and targets Craft Products  factors reduced the purchasing power of consumers: although the industry weight is low (0.025), but the company's rating with a score of and weighted score was 0.075 the company's response due to a direct effect tobusiness situation and consumer products  Vietnam joined the WTO chance the economy should develop the real estate sector's weight was 0.08, the company's rating is 2, the weighted score is 0.16 company the opportunity to participate in international market, learning and technical approach to cutting edge technologies  Vietnam has favorable business environment and Vietnam is Considered as a good country to invest: weight sectors of the two factors was 0.04 and 0.029, the company's rating on this factor is 2, the company's weighted score was 0, 08 and 0.058  Human resource factors: weight of the industry is low with a score of 0.02, the company's rating is 2, the weighted score is 0.04  Factors increase tourist and real estate business cycle weight of the low and high rating of the company is not so weighted score of the two factors was 0.06 and 0.03  In short, the real estate market in Vietnam still a young market but not caught up in the development of the countries in the world, however also achieved great strides, both in quantity and quality, especially in the field of real estate services  After nearly three years Vietnam became an official member of the WTO, the real estate fund its operations according to management, including progress is shown clearly when the real estate market in Vietnam from where not real index ranking has moved up in the top of the market transparency The commitment to market liberalization WTO to help companies manage international real estate development conditions in Vietnam as CBRE, Savill, Collier and stimulate the real estate services company production in developing countries with fast speed  Vietnam is a country with a stable political situation, to create favorable conditions to attract investment into Vietnam  The economy of Ho Chi Minh City is on high growth Income and living standards of the Phan Thi Mai Phuong, ID: 2444702 Page 31 of 43 people on the rise driving demand for housing, apartment, shopping needs in modern commercial centers, luxury increased  Ho Chi Minh City is the most populous city in the country, this is a potential market demand for houses, apartments and other facilities and services Demand for real estate products, especially high-end real estate products in the future is great  Cultural Environment, major lifestyle changes in the direction of increasing, leading to complete special needs housing is apartments increased  The wave of e Direct Foreign Investment increased in recent times drag according as c Europe to the office, as well as land for factories increased  The number of tourists to Ho Chi Minh City has steadily increased in recent years and is forecast to increase in the next year brings an increase in demand for high-end hotels to stay, large shopping centers range international Conclusion: The classification showed that the way in which the strategy of Dat xanh Group response to each factor, with a rating of is the best response, and are near average, is bad Thus the total weighted score is 2766 shows Dat xanh Group strategies apply existing opportunities as well as minimize the risk of possible external threat level on average Through the matrix at a rating of 4.3 the company has employed good chance that the Vietnamese economy is on the rise sharply, as there is an increase in GDP, per capita income and purchasing power of the consumption increased It noted that the legal procedures implementing the project, the procedures constantly changing, companies need to monitor and continuously update the procedures to implement the right to shorten implementation time the project Market interest rates continued to increase in recent times causing many difficulties for companies in raising capital for the project So Dat xanh Group need to research a number of other funding channels and strategies appropriate to bring competitive advantage for the future Dat xanh Group CHAPTER V CHAPTER 5: CONDUCT A SWOT ANALYSIS OF DAT XANH GROUP AND BASED ON THE SWOT ANALYSIS, DISCUSS THE KEY PROBLEMS AND ISSUES THAT NEED TO BE ADDRESSED, AND MAKE RECOMMENDATIONS TO THE COMPANY FOR FURTHER IMPROVING ITS CORPORATE PERFORMANCE 5.1 Introduction After analyzing and assessing the business environment of DATXANH GROUP we have identified the opportunities, threats, strengths, and weaknesses of the company Combined with the Phan Thi Mai Phuong, ID: 2444702 Page 32 of 43 development direction, objectives of DATXANH GROUP in the future, from which to build the SWOT matrix as following: Strengths The company has experience in the implementation of major projects, the value of assets in the urban as : - SUNVIEW APARTMENT- at Thu Đuc dist HCM city -total investment 450 billion vnd - PHU GIA HƯNG APARTMENT- at Thu Đuc dist HCMC -total investment 259 billion vnd - TNT APARTMENT at Thu Đuc dist HCM city -total investment 238 billion vnd - ARISEN APARTMENT at Thu Đuc dist HCM city -total investment 488 billion vnd - TM APARTMENT at 118/47 Truong Cong Dinh, Vung Tau city - investment 435billion vnd - ĐAT XANH RIVERSIDE APARTMENT, Binh Duong City, - investment 632 billion vnd - DRAGON TOWER APARTMENT at Dong Nai city -total investment 1.200 billionvnd Over years of development, so far total business of Green Earth has reached more than 3,000 billion with over 1,500 employees and more than 20 member companies (According to the company's financial statements Dat Xanh Group 2011) The profitability of the company ranks second in the Real Estate industry (According to the company's financial statements Dat Xanh Group 2011) Profits derived from business activities, a significant increase over the years Large land, planning and land available in most county government on the table Chi Minh City, Binh Duong, Dong Nai and delivered to the Government's decision to allocate land Has a good reputation on the market Properties as well as the trust of our customers for many years Known for high quality products and a reputation for legal procedures Able to manage the cost of the good parts so high profits for the company The company has quality management system The company management has experience in the field of Real Estate (at least years) Weaknesses Untapped market segments other than the general situation There are many products in progress, progress was slow progress affected by land acquisition Qualified employees is not uniform, the professional qualifications of the staff was not into the main business Business promotion, corporate image advertising as well as the activities of the company products faint, less powerful marketing programs Phan Thi Mai Phuong, ID: 2444702 Page 33 of 43 The legal procedure is slow due to the initiative is a matter of time prescribed by the land is complex and unclear Opportunities Property market is gradually restored after a long time "freeze" and influenced by the world economic crisis of 2009 Like falling into a state of "Diseases of the current real estate market is acute and, if clinically dead to it, how can that save" according to Mr.Tran, Chairman of the Board of Bank for Investment and Development of Vietnam (BIDV), said in the meeting with the Ministry of construction on 02/2013 High profit growth rate was 355% (third quarter 2009) Demand for housing, apartments low, trng comments to high levels in Vietnam are growing Property market segments such as: offices, hotels tend to rise High economic growth rate, second only to Asia (8% in 2008), particularly in Ho Chi Minh City is 10% Urbanization rate, the GDP growth rate in 2010 was 6.78%, industrial growth accelerated, leading to rapid population growth in large cities such as Ho Chi Minh City HCM According to en.wikipedia.org / wiki / the Kinh_te_Viet_Nam Foreign direct investment increased Only in 2007, the total FDI made e reached 3.3 billion USD Notably, investment in real estate sector in 2011 accounted for only 5.8% of the total registered capital, down sharply from 2010, with 34.3 percent of the total registered capital (according to the Ministry of Planning and investment (MPI) held a press conference on the situation of foreign direct investment in 2011 and expected in 2012.) Remittances in the country sent money back to Vietnam are increasing housing demand leads to new market segments increased Vietnam expanding economic relations with the world and the region, particularly Vietnam joined the World Trade Organization (WTO) in 2006 has attracted many investors and invest in the center major cities Demand for land for production, land for construction of buildings for offices will skyrocket 10 More complete law and to create a favorable legal environment for developing real estate markets such as: frame regulations on land prices, land valuation methods to stabilize the real estate market, the provisions on new urban standards, regulations on capital investment in Real Estate, advocated the relocation of production facilities concentrated in the industrial zone of the City People's Committee demand for industrial land, factory-built will be great Phan Thi Mai Phuong, ID: 2444702 Page 34 of 43 Challenges The big brands are looking to take advantage of the first phase to locate for m.nh a brand real estate services both legal compliance and professional Therefore, the competitive environment on the Real Estate market is getting tougher Empty rate mainly due to the new buildings completed Another concern is that while the space ratio is relatively high, the supply of office space is expected to increase in the future, up to 134% by the end of 2010 on all office amenities Therefore, the competition to attract customers among all buildings in the future will be very drastic The barrier to entry is not very difficult in the current economic conditions, the market is in need of plentiful supply for the new customer segments, resulting in the number of competitors joining the industry is becoming a part increase The new rules on collection of land use fees and other costs of government are increasingly detailed and is considered to have increased Therefore, the risk of product price increases is unavoidable The new rules on maintenance of buildings to clarify the responsibility of the investor But not increase the cost of products but indirectly increases the cost to the client to make client's psychological fear In addition, small businesses are growing strongly on the number of local competitive with the Company's activities Dat Xanh Group on a number of areas, particularly in new areas of the County Risk of high-rise housing Current wave of high-rise housing is growing very strongly, and forecast upcoming overproduction in the market Therefore, participation in high-rise development can constitute a threat to the operation of Dat Xanh Group Company without proper evaluation and research, especially on technical issues and quality Foreign investors account for the market in the exploitation of large projects such as building office, apartment, business center, fitness center, sports and to investors in water in the small and medium segment Some investors in the country scare for ventures with foreign investors in order to increase competitive advantage in terms of capital and technology as well as the risk of Dat Xanh Group Company 10 Rising land prices will narrow the market share of the buyer, for low-income medium and the opportunity to make housing more difficult After analyzing and assessing the business environment of DATXANH GROUP we have identified the opportunities, threats, strengths, and weaknesses of the company Combined with the development direction, objectives of DATXANH GROUP in the future, from which to build the SWOT matrix Phan Thi Mai Phuong, ID: 2444702 Page 35 of 43 5.2 Application swot for dat xanh group SWOT MATRIX O- OPPORTUNITIES O1 Real estate market is gradually restored T – THREATS T1 The major brands are actively positioning O2 Growth high industry profits their products both O3 Demand to buy apartments, legally and low-level house is increasing professionally O4 The new segment: text ph.ng T2 Attract customers high hotels tend to increase among investors O5 Demand for the segment increased remittances O6 Speed of urbanization, industrialization, and economic T3 The number of competitors in the industry is growing T4 New segment is indicators, the population difficult to access and increased use the product O7 Foreign direct investment increased in the recent years O8 High economic growth O9 Active integration of Vietnam joining the WTO O10 Law more complete and favorable legal environment housing, high-rise apartment T5 Customers are psychological fear by the policy of the Government T6 In the district, the competitors are many T7 Possibility of overproduction of highrise housing supply T8 Foreign investors are more dominant T9 Competitive position of the opponent being enhanced T10 Government issued new regulations on prices, Phan Thi Mai Phuong, ID: 2444702 Page 36 of 43 the risk increasing housing prices S - STRENGTHS S–O S – T: S2, S3, S4, S5, SO: S1, S2, S3, S4, S5, S6, S7, S8, S5,S7,S8,S9 + T1, T2, T3, S10, + O1, O2, O3, O4, O5, O6, T5, T6, T8, T9 O8, O9, O10 S1 Experience in  To fully exploit the existing  Focus on Marketing implementing large market strategies to increase strategy: a strategy projects, valuable assets market share; suitable price, quality of  To expand the market to focus on S2 Large scale companies S3 High profitability new segments: low-income ensure, attractive S4 High annual profits customers and medium b.nh and promotion strategy, S5 There is a large land bank market areas outside the district attract customer S6 Having good reputation  Joint ventures with local and products / services to attention, clear on the market Properties foreign investors to take distribution strategy, Ability to manage costs advantage of the technology broadthroughout better transfer, reducing investment  Focus budget for social S8 Products of good quality risks S9 Information management S7 system good S10 The experienced  Product diversification and programs: building homes, helping investment into other areas: office disadvantaged families, space, hotels, travel poor children  Focus budget for the managers development of R & D W - WEAKNESSES W1 Untapped market segments W – O: W1, W2, W3, W4 + O1, W – T : W1, W2, W5 + O2, O3,O4, O5, O6, O9, O10 T1, T2, T3, T5, T6, T8  Improve the policy on salaries  To enhance customer W2 Many uncompleted unfinished product W3 Employee uneven level, and allowances to workers, service, after-sales ensuring better public life services  To organize training courses, professional level is not high W4 Activities to promote businesses, products faint Phan Thi Mai Phuong, ID: 2444702  Pay more attention to professional training for staff; the distribution channel improve management for in the provision of management information about the Page 37 of 43 W5 The the legal convergence  Construction company culture on slow the basis of each employee is an important role in building up the image of the company  Improve technology to the construction, manufacturing more economical, works quickly completed company and products to customers  User consulting services deeper into the products / services of the company  enhance the activities of inspection, repair, upgrade lighting, electricity, water, etc in the construction, the company's products after sale to the customer Figure 7: SWOT for dat xanh group 5.3 The company strategy for the period 2012 to 2017 To achieve this mission will become one of the leading companies in the field of construction, real estate and urban development, in the period 2012 - 2017, Company Dat Xanh Group 04 team entries the main objective To implement these goals, the company's strategy in the period 2012 - 2017 as follows: 5.3.1 The SO Strategy Leveraging the company's individual strengths to exploit existing market opportunities, the company will offer strategies to bring value to shareholders through profitability strategy, creating excellent value to customers, to better meet customer needs - Strategy to exploit the existing market Green Earth Group companies continue to invest in projects in residential construction; housing; Industrial Park Complete the project on time with the construction schedule proposed Ensure the right quality and cost savings Increase market share: the company currently holds by measures entice customers of competitors, increase the purchasing power of customers: sell your products / services quality but affordable, application forms deals richer and more flexible for customers, to meet current housing needs that customers are looking for: quality, beautiful architecture, modern house products, office bears a high level of standard form, ensure the legal procedures when customers want to buy Phan Thi Mai Phuong, ID: 2444702 Page 38 of 43 - Market expansion Strategy In the near future, if only to focus on the center, the land of gold in Ho Chi Minh City, the land gradually goes away to the project.As well as to use their strengths Dat Xanh Group strategy to develop its market to the neighboring provinces of Ho Chi Minh City in Dong Nai, Binh Duong, Long An, Vung Tau province is on trackdeveloping rapidly, people's income, the purchasing power of consumers steady growth in recent years, they have demand for high-end real estate products and facilities While expanding market,, Dat Xanh group still constantly improve the quality of their products to create projects in the central area of the province However the implementation of this strategy Dat Xanh group should scrutinize consumer habits, customs and habits of customers at the local level to provide high-end products, comfortable fit The company will expand into new market segments: the customer low-and middle-income Construction of housing, office space, land for rent to add the current needs of our customers Regional companies expand investment in Vietnam and further beyond projects to invest in high-rise buildings, rental properties, land for lease, industrial parks - Joint venture Strategy Cooperation and joint ventures with domestic and international partners to implement a number of real estate projects Especially financial corporations, real estate business is famous around the world to enlist experienced project management, technology and strong financial resources of the group from which to strong and thoroughly for key sectors that the company has chosen In addition to joint ventures with other partners such as: University, Corporate Travel, Transport Company, Promote the strengths of the company through a joint venture with the domestic and foreign investors: put the land is currently in joint-venture projects, develop diversification h nh business operations, reduce risk in investment, taking advantage of the technology transfer in the field of Real Estate business as a foundation for the development of the company's business activities, and contribute to brand value for the company - Product diversification Implementation of this strategy by diversifying their real estate products, Datxanh Group will offer a wide variety of real estate products to further meet the needs of customers Products apartment previously only sold directly to customers, this will add to the luxury apartments for rent Sunwiew 1.2 office is as fully equipped office equipment, machinery, furniture rental for a higher price Products previously ground, mainly green land distributed to other investors (brokerage) today and the upcoming Green Earth to focus on the project lands in the environs of the city as well as Phan Thi Mai Phuong, ID: 2444702 Page 39 of 43 neighboring provinces cities such as Long An, Dong Nai, Binh Duong The product of this land to achieve quality service and fine drawings of the project For example, residential land projects must have complete infrastructure, to commercial centers, entertainment areas, as well as system trees in accordance with standard regulations state that the provisions for the project is the total land area of service accounts for 46% or more on the total area of investment projects Currently the new company should strike hard on real estate during the upcoming Green Land Company should first research and development sectors can come and related sectors have made such as: Tourism - Real Estate, Opening or training linked to the real estate brokerage industry, transportation industry Increasingly diverse customer needs, housing needs, the hotel increases, so the company will expand into the field-based hotel investment company's ability to raise capital This is a new field of investment, therefore, need to be cautious before making investment decisions With strengths in capital, the ability to manage the cost of the good parts together with the growth of the Vietnamese economy is growing, join the world economy, rising living standards, the company need to make the expansion of the field of investment into the tourism sector, hotels 5.3.2 - ST strategies Marketing strategy This strategy aims to take advantage of the opportunity to limit the weaknesses of DatXanh group Build complete structure of the organization, the functional departments, recruitment and training of human resources, to meet the growing development of DatXanh Group Promote the application of information technology in management, construction management process in accordance with international standards Creating financial liquidity, financial transparency in public companies, in order to create conditions for attracting capital to grow the company Besides creating surplus value capital gains is also one of the factors represent the mobilization of financial strength When good fingers to meet business needs as well as financial capability, then it will create good products, as well as differences lead to a competitive product - Product strategy High-quality products, apply technology learned through the process of learning from previous successful companies, as well as the company is a joint venture partner link Products are standardized according to the type of products for people with low income, medium or high House or office products or other products of the company are subject to the standards set by the State - Strategy the selling price based on a different principle: Consider both minimum profit, maximum profit that the company earned, expenses to products / services, and the current market price Phan Thi Mai Phuong, ID: 2444702 Page 40 of 43 - Distribution strategy The form of wide distribution, providing information to customers quickly and easily, via the head office, representative office, branch… - The rear vertical integration strategy Currently Datxanh Group has built for his a unified service business block across from north to south due to this volume use and continuous operation whole Datxanh Group to spend a fairly high cost Take advantage of their strengths as well as reduce risks in the market at any Estate freeze Datxanh Group established business corporations Datxanh Group Real Estate Services (DXS) in order to manage the volume of real estate services to manage in order to meet the investment put their products quickly to consumers while ensuring appropriate prices Besides Datxanh Group has established a total investment firm Datxanh Group and Construction Joint Stock Coporation Datxanh Group to meet adequate supply of products suitable to follow the strategy of Datxanh Group set out, on the one hand reduce the pressure from suppliers, the scarcity of the product, reduce operating costs for the company, increase profits as well as to ensure their real estate products are managed effectively - Innovation strategy and development R & D Demand on the market Properties are increasingly complex and more investment in human and material resources for R & D, strengthening active on the study of the current needs of customers depth study and further new customer segments to facilitate the company to expand its market to new segments, to better meet customer needs, create better value for customers goods 5.3.3 WO strategies To organize training programs to improve the quality of governance at all levels in the company management, advanced specialized skills for staff, improving business skills in the field of Property production, in line with the business strategy outlined above Aims to build corporate culture based on core values of every member of the company, the company will adjust the old rules in the direction of integration and make some new rules to suit trends the current direction Improved technologies for the production, and more specifically for the project, the company is implementing in order to save time and cost Meet the growing needs of existing customers as well as potential customers 4.2.4 WT strategie Major contents of the strategy are a combination of weaknesses and challenges of the company.To enhance customer service, after-sales services, such as: more attention to the products Phan Thi Mai Phuong, ID: 2444702 Page 41 of 43 sold to customers, regularly check the quality of their homes after the sale to ensure supremacy credit quality Distribution channels to provide better information to consumers so that they understand more about the products and services of the company Create favorable conditions for the clients understand the company, they will look more priority to the products / services of the company Housing counseling services to ensure customers and better meet their needs, further customer-oriented consulting services / products of the company CHAPTER VI : CONCLUSION This chapter has set out the strategic objectives for business development in the future of DatXanh Group based on the actual situation of DatXanh Group at the time Determining business strategy development, basic long-term goals of an enterprise, and choose how to proceed as well as the processes to implement and allocate the limited resources of the business industry to implement these objectives Develop business strategies real estate of DatXanh Group, the thesis has made the analysis, a specific assessment of the business environment, the real estate market in Ho Chi Minh City, the production and business activities business of the company in recent times With the goal of becoming a leading Vietnamese enterprises, a pioneer in the field of real estate business, the period 2012 - 2017 is defined as the period of significant transformation for sustainable development of DatXanh Group Through the SWOT matrix analysis method, the thesis has developed a number of strategies and development of solutions to implement these strategies Because the real estate business environment is always changing and cyclical, so all strategies and measures to implement the strategy should be selected line accordabce with the actual situation of DatXanh Group at the time Thesis strategy real estate DatXanh business Group 2017 is an objective reality and essential contribution to the Director DatXanh Group has an overall look, cover, right thinking propriety in the development and selection of appropriate business strategies As well as providing solutions to implement these strategies, to further improve the competitiveness of DatXanh Group, brand building, the company developing growing, is a Vietnamese company pioneered in the field of real estate business Phan Thi Mai Phuong, ID: 2444702 Page 42 of 43 REFERENCE Books - Strategic management concepts and case global edition 13th by Fred R David, Francis Marion University Florence, South Carolina - Slide Lecture Strategic management, Dr Ho Thi Thu Hoa Online resources and magazines - www.businessdictionary.com/definition/vision-statement - http://www.hamasco.com/vision - http://en.datxanh.com.vn/about-us/362-14-vision-mission-and-core-value.aspx - http://www.mofahcm.gov.vn/vi/mofa/nr040807104143/nr040807105001/ns081217091422 - http://www.bangkokpost.com/business/news/327830/vietnam-expanded-at-slowest-pacesince-1999 - Source: Statistical Yearbook 2010 and criticized the report on the socio-economic 2011 Statistical city, Ho Chi Minh City - Source: Statistical Yearbook 2010 and the report on the socio-economic 2011 - Statistical HCM City - Source: Statistical Yearbook 2010 and criticized the report on the socio-economic 2011 Statistical city Ho Chi Minh City - Source: the report on the socio-economic 2011 - Statistical HCM City - Source: Department of Tourism in Ho Chi Minh City - Source: real estate consulting firm Knight Frank - Sources from the department Business Datxanh Group - http://www.bach-khoa.edu.vn - http://www.writing.utoronto.ca/advice/specific-types-of-writing/literature-review - http://www.tilburguniversity.edu/education/masters-programmes/strategic-management/ - http://strategicmanagement.net/ - http://www.managementstudyguide.com/strategic-management.htm - http://www.scribd.com - http://bookboon.com/en/textbooks/strategy/strategicmanagement - http://www.summary.com/management-ad?gclid=COLS0YSfsrUCFShU4godzHkALA - http://www.pim.com.pk/faq.htm Phan Thi Mai Phuong, ID: 2444702 Page 43 of 43 [...]... the business department of Dat Xanh Group) d Application of EFE Introduction EFE Matrix allows strategic management rules summary and evaluation of the economic information, social, cultural, demographic, geographic, political, legal, technological and competitive That helps the administrator can identify strategic opportunities and external threats affecting the company There are five steps in developing... group are Group A projects, with total investment from a few dozen to several hundred million dollars require the syndication of many new bank lending enough to for Dat xanh group Dat xanh group has built strategic cooperation relationship with domestic banks such as Industrial and Commercial Bank of Vietnam (VietinBank), Lien Viet Bank, FPT Capital, 3.4.9 Dat xanh group potential rival According to Decree... trend of globalization, international economic integration and trade liberalization are the outstanding issues of the world economy today - Of all the events and trends in the environment can affect the strategic position of a company, affecting competition is often considered the most important Competitive image matrix to identify the major competitive advantages and disadvantages of their special -... professional manner, ensuring quality, harmonious lines of modern architecture with traditional culture, meet the requirements for use, Dat Xanh GROUP has been the construction of the relationship long-term strategic cooperation with foreign management and consulting expertise Some consultants that Dat Xanh Group has been cooperating: - WOOD Zapata Inc., (USA) is the international architectural design firm