Xây dựng chiến lược kinh doanh cho công ty cổ phần bóng đèn phích nước Rạng Đông

Xây dựng chiến lược kinh doanh cho công ty cổ phần Bóng đèn Phích Nước Rạng ĐôngBUILDING BUSINESS STRATEGIES FOR RANG DONG LIGHT SOURCE AND VACUUM FLASK JOIN STOCK COMPANYResearch objectives are SWOT Matrix and IE MatrixApplication SWOT Matrix and IE Matrix analysis model on building business strategiesSWOT Matrix and IE Matrix Model – An effective instrument in building business strategiesBusiness strategy is the collection of longterm goals and the ways to achieve longterm goal that is based on objective and subjective conditions, and the resources of the business

LUẬN VĂN XÂY DỰNG CHIẾN LƯỢC KINH DOANH CHO CÔNG TY CỔ PHẦN PHÍCH NƯỚC RẠNG ĐỘNG BUILDING BUSINESS STRATEGIES FOR RANG DONG LIGHT SOURCE AND VACUUM FLASK JOIN STOCK COMPANY IN THE PERIOD OF 2010 – 2015 - PAGE - INTRODUCTION In the competitive world today, the existence and development of enterprises depend greatly on the ability of continuous innovation and adaptation with the changes of environment In order to that, companies need to clearly identify their abilities, purposes, achievements, challenges Those firstly depend on their setup and implementation of enterprises’ business strategies Proper business strategies will ensure the existence, rapid development, long-term sustainability according to the long-term goals There has been a lot of research on business strategy and method of business strategy Many researchers used quantitative and qualitative approaches in their works Each approach has its own advantages and disadvantages Optimal solution is to apply these two approaches in building business strategies for enterprises to maximize advantages and minimize disadvantages Within the research of this great exercise, two selected matrices are: Strengths-Weaknesses-Opportunities-Threats Matrix (SWOT Matrix) and Internal – External Matrix (IE Matrix), which is representative for qualitative and quantitative methods of analysis Research methods will be applied to a specific case: Building business strategies for Rang Dong Light Source and Vacuum Flask Join Stock Company in the period of 2010 – 2015 Rang Dong Light Source and Vacuum Flask Join Stock Company (Rang Dong Company) was established in February 1961, which was originally as Rang Dong Light Source and Vacuum Flask Factory In June 1994, it was renamed as Rang Dong Light Source and Vacuum Flask Company On 30 March 2004, Ministry of Industry (now Ministry of Industry and Commerce) decided to switch the Rang Dong Light Source and Vacuum Flask Company to Rang Dong Light Source and Vacuum Flask Join Stock Company Vietnam’s process of integration into the world economy not only affected on the macroeconomic environment but also directly on production of individual - PAGE - business enterprises For Rang Dong Company, integration created not only opportunities but also great challenges which required the company to define proper and well planned business strategies in the future However, the process of setting up business strategies was not properly interested Therefore, a research on selecting setting up approach is unprejudiced and necessary Research purposes Firstly, systemization of basic knowledge on business strategies and business strategy approaches Second, research on the ability, approach and conditions to apply SWOT Matrix and IE Matrix; the coordination of both matrices to formalize and select business strategies for enterprises Third, application of research results on building the business strategies for Rang Dong Light Source and Vacuum Flask Join Stock Company in the period of 2010 – 2015 Research Objectives Research objectives are SWOT Matrix and IE Matrix Scope of research is the ability, approach and conditions to apply both matrices in building business strategies for enterprises in general and for Rang Dong Light Source and Vacuum Flask Join Stock Company in particular Research methods Thesis using the method of the research combination of logic and history, general analysis methods, the scientific statistics method Thesis based on the theory contruct of business strategies in the market mechanism, combined analysis of synthesis of empirical research Research result to dates Until now, there are many researches on business strategies and method of building business strategies, SWOT Matrix and IE Matrix specifically However, those researches only used either qualitative or quantitative approach Contribution of this exercise is the ability, approach and conditions to apply both tools - PAGE - In Rang Dong Company, there are not research on business strategies and method of building business strategies The activity of business strategies, which is implemented by Accounting - Finance Department, is not the scientific and professional Therefore the exercise of “Application SWOT Matrix and IE Matrix analysis model on building business strategies for Rang Dong Light Source and Vacuum Flask Join Stock Company in the period 2010 – 2015” is necessary and valuable in practical constraints Structure of the exercise Besides the introduction, conclusion, table of contents and reference materials, the exercise is divided into three main sections: Chapter I: SWOT Matrix and IE Matrix Model – An effective instrument in building business strategies Chapter II: Application of SWOT matrix and IE matrix models in analyzing business strategies Chapter III: Application of SWOT matrix and IE matrix models in formation and selection of business strategies for Rang Dong Light Source and Vacuum Flask Joint Stock Company in the period of 2010 - 2015 - PAGE - Chapter I SWOT MATRIX AND IE MATRIX MODEL - AN EFFECTIVE INSTRUMENT IN BUILDING BUSINESS STRATEGIES 1.1 BUSINESS STRATEGIES AND BUSINESS STRATEGIES PROCEDURES 1.1.1 Business strategy 1.1.1.1 Business strategy viewpoint "Strategy" which is a term used in military, that is intrigues conducting the war It is based on the military, political, economic, geographical conditions of the two opposing forces and war situations to prepared and to use military force There are many views on business strategy: Strategy is the ways to achieve long-term goals Business strategy can be a strategic geographical expansion, diversification of products, mergers, product development, and market penetration, reduce or waive take-over or joint venture Strategy is a collection of goals and policies as well as essential plans to achieve those goals Business strategy of an enterprise is an action plan to implement goals of the enterprise Business strategy is intriguing strategy, roads, measures to ensure stable and long-term existence, development in accordance with development goals that enterprises have set based on the objective and subjective conditions, the resources of business So there are lots of opinions about business strategy, but it could be the most common point of business strategy as follows: Business strategy is the collection of long-term goals and the ways to achieve long-term goal that is based on objective and subjective conditions, and the resources of the business Business strategy is determined for a certain period; it is the orientation and can be adjusted to changes of the environment Based on the scope, business strategies are divided into two types: general strategy (or overall strategy) and partial strategy - PAGE - Based on building-level strategies, business strategies are divided into: strategy of enterprise, strategy of base unit (SBU) and functional strategy Based on the content and the field of governance, business strategies are divided in accordance with management fields in enterprises Based on the nature and scope of work, business strategies are divided into four types: combination strategy, specialization strategy, expansion strategy and specific business strategy (narrow, link ) 1.1.1.2 Business strategy requirements Business strategy of an enterprise should ensure the following requirements: Firstly, business strategy has to ensure the generalization Business strategy is an overall plan of the enterprise; it decides the relationship of the enterprise with the outside environment Generalization is shown as followed: (i) in accordance with conditions, development trends of the enterprise; (ii) in accordance with national conditions, development trends of the country in a certain period; (iii) in accordance with integration trends into international economy A strategy with generalization is important to ensure the judicious and sustainable development of the enterprise Secondly, business strategy has to ensure the orientation This is important, it ensures enterprises have a right direction in the long term, and avoids pursuiting inefficient movement To have good business strategies, it is necessary to have good forecasting socio-economic development trends Successful business strategy must base on accurate forecast Thirdly, business strategy has to ensure the increase of internal forces to gain competitive advantage for enterprises If there are no competitors business strategy does not need to be developed Business strategy is really necessary when there is competition in the market The more severe the competition is, the more important business strategy is In order to create competitive advantages companies need to thoroughly exploit their comparative advantages, invest resources to utilize the strengths rather than invest too many resources to overcome weaknesses - PAGE - Fourthly, a business strategy has to ensure the safety for enterprises Business activities always contain risky factors that enterprises must cope with However, higher profit rate usually connects with higher risk but the factor of safety is very important for business To achieve this requirement, a business strategy must identify “safe scope”, at which the risk can still occur with lowest probability Do not build business strategies as the following idea "all or nothing" Finally, it is necessary to determine the business scope, objectives, action plan and the basic conditions to achieve objectives In the present competition context, the decisions of the enterprises are always limited by resources constraints Thus business strategy has to determine the scope of business in which the enterprise must well define objectives of the business to avoid the spread of resources A well-defined business plan is a set of policies, measures and resources - technology - labor conditions for the achievement of business objectives Requirements for the explanation of business plan are adequate, concise and clear 1.1.1.3 The role of business strategy It is difficult to find a direct relationship between business strategy and the increase of profits However, it cannot be denied indirect contribution to the benefit of the business strategy through the exploitation of opportunities and competitive advantages Firstly, business strategies help business leaders and individuals in the enterprise understand the goals and direction of their enterprise Through which people know their position, role, responsibilities and their ability to contribute to common goals So through the enterprise achievement of common goals, each member also achieves his goals Besides, in business practices, the environment changes also require enterprises to adjust it and to adapt to those changes Business strategy to help enterprises keep to their objectives Secondly, when building business strategies managers must make predictions about the business environment in the future Therefore business - PAGE - strategies help business manager’s better capture and take advantage of opportunities, reduce the risk that may occur in the future Thirdly, thanks to business strategy that the decisions of the enterprise are completely active Enterprises without clear business strategies often react passively when the business environment changes Sometimes this reaction also is effective but building clear business strategies and change forecast help enterprises react better with environment changes and take command of the situation 1.1.2 Process of building business strategies for enterprises In general there are many steps to build business strategies of enterprise Based on the ideas and research objective that researchers present different models and steps The first viewpoint is Plan-Do-Check-Act Model (PDCA) by Shewart: Table 1.1: PLAN-DO-CHECK-ACT MODEL BY SHEWART Check Act Plan SWOT Matrix (Strengths, Weaknesses, Opportunities, Threats)  Review the business environment  Effective indicators + In the past + In the present  Customer needs and the beneficiaries + Inside + Outside  Evaluation project data in years  Source of input Development/ Review /Check  Vision  Value  Duties      General objective Specific objectives (annual) Strategy Schedule Review Plan - PAGE - Do Implementation of project Check Check and communicate  Monthly  Quarterly  Annually Review or standardize  Based on the evaluation Act Different point of view states that the building business strategy consists of following 10 steps: Diagram 1.1: BUILDING PROCEDURES OF 10-STEP STRATEGY Analysis of objective conditions Business Orientation and fields Strategic goals Business strategy Analysis of subjective conditions Strategic thought Implement business strategy Path design and selection, measures to achieve goals Strategies of functional divisions Assess and improve business strategy According to this point, the construction business strategy is 10 steps work, dividing into three main steps: analysis of objective and subjective conditions of enterprise; design of business strategy, assessment and improvement of business strategy Also following 10-steps procedure, the following model start from the review mission objectives and current strategies of the enterprise: - PAGE - Diagram 1.2: COMPREHENSIVE STRATEGIES MANAGEMENT MODEL Environment research to identify main opportunities and challenges mainly Review mission objectives and current strategies Set long term goals Set short term goals Distri bute of resour ces Define mission Internal analysis to identify strengths and weaknesses Draw out the departme nt policy Choose strategy to proceed Build strategy Measure and evaluate the level of implement ation Implement strategy Assess strategy There are many opinions about building business strategy of the enterprise; departing points of each model are different However, in general, the process of the business strategy must include basic steps as follows: - PAGE 10 - Based on results analyzed in the matrix IE, the company can choose the strategies of SO and WO This means that, in the business environment and in current conditions, the company should take advantage of the strengths, overcome some weaknesses to capture business opportunities from the environment In strategies of group SO and WO there is some remarkable strategies as follows: S1-S2-O1-O3: Promoting research and producing new products to meet domestic needs and exporting W1-W4-O3: Strengthening marketing activities, collecting market information to promote export W3-O6: Taking advantages of the ability to mobilize capital in stock market to increase production capacity 3.3.2 Selection of strategic scenarios 3.3.2.1 Content of scenarios Content of S1-S2-O1-O3 strategy It is necessary to promote research activities, to develop of light source products and lighting equipments which are high quality, high performance, power saving and environment protection; to develop products which are synchronous, diversified For fluorescent lights, the company continues to develop T8 product, which is energy savings with different capacity, to replace production materials to improve product performance, power saving, and price This is the product which can meet the needs of the market with low and average income For compact lights, these products are expected to grow strongly in the future Price of this product group is appropriate to markets with medium and high income The company should focus on innovation research for this group of products to meet different need groups (office, civil, public schools, enterprises, schools ); diversifying designs and models; designing synchronous products - PAGE 82 - For round bulbs, the company should reduce the output in order to meet the needs of strategic products For vacuum flasks, based on traditional strength of these products, the company should focus on electricalization of products, expanding markets for vacuum flask products with boiling and cold abilities Content of W1-W4-O3 strategy Current company's marketing capacity is weak Marketing activities have not been properly respected, are spontaneous and lack of professionalism The content of this strategy is strengthening marketing activities, collecting market information, promoting products export Besides, the company should expand network of distribution channels and better exploit domestic market As for image building, Rang Dong Company is a brand name with over 50year tradition In addition to prestigious brand name, Rang Dong Company may also represent an image of "backward", "classic", less dynamic in the market economy Therefore, the investment of resources (financial, human resources ) in building a new, dynamic, modern, integrated image is very important and necessary New image of Rang Dong Company should be chosen as: Rang Dong Innovation - Creation - Integration The company should invest in brand name promotion activities through advertising on mass media, through social activities for community benefit Previously, these activities were not well interested so effectiveness was not high Specifically, it is necessary to create impressive, youthfully and modern advertisements in mass media, especially on television Community activities should be organized regularly to create high social effects such as: Pilot-sponsored lighting school schemes; Offering super power saving lights to government-supported families, difficulty families and poor families; Awarding scholarships to students overcoming difficulties, possibly building the program "Together with Rang Dong lighting your future" ; - PAGE 83 - Supporting lighting system in street, alley, or hamlet Improving market research ability and market information collection ability; conducting information collection through networks of distributors and renting professional companies to conduct large-scale surveys when necessary Improving business performance and expanding distribution system of the company, especially in Central market and South market Building incentive policies and support, and discounting policy for new agents Rang Dong Company should also conduct information research; enhance active trade promotion activities to expand export market for the company The company needs to collect detailed and clear information of market needs, main competitors, strengths and weaknesses of the competitors, constraints of tariff and non-tariffs barriers Content of W3-O6 strategy Current production capacity of the company is relatively small, especially for strategic products The output of fluorescent lamps of the company usually is about 22 million products per year whereas bound capacity of production is 25 million products per year For compact lamps, real output accounts for about 33% capacity (8.3/25 million products per year) However, production capacity of this strategic product equals to 25% of that of the strongest competitor Dien Quang (100 million products per year) Therefore, the marker coverage ability of the company in the future is weak To implement this strategy, the company uses the capital raised from stock market and credit market for expanding and increasing production capacity This strategy helps Rang Dong Company continue building the second base near Que Vo Industrial Park - Bac Ninh Province This strategy ensures the conditions for the strongly growth ability of the company in the future Based on the increase of production capacity, Rang Dong Company will utilize the economic advantages of scale to increase market - PAGE 84 - occupation and covering, and increase its impact on the market, decrease market control of competitors However, with weak marketing capacity of the company, implementation of this strategy is also fairly risky Risks may occur due to the accuracy of market information and limited capacity of distribution channels 3.3.2.2 Selection of strategy by ranking method Determination of evaluation criteria, and strategy selection Here are some of the questions considered strategic assessment criteria: • Are strategies suitable to the environment? + Are they suitable to integration trends of the economy? + Do they comply with orientation and policies of the Government? + Are they suitable to development trend? • Do strategies help the company obtain any advantages compared to competitors? + Do they help the company take advantages of strengths? + Do they help the company avoid direct facing or ward competitors’ strengths off? • Are strategies corresponding to organizational structure, internal policies, and management style and business philosophy of the company? + Is organizational structure appropriate? What needs to adjust considerably? + Are governance style and business philosophy adequate? + Do internal policies facilitate or hinder strategy implementation? • Do human resources of the company meet the requirements of the strategies implementation? + Does the number of current employees meet the requirements? What is weak department? What department needs to be established? + How is the quality of human resources? + How is retraining cost? - PAGE 85 - • How is the risk to financial capital for strategies implementation? + What is the ability to mobilize investment capital? + What is the ability of capital payback? What is the deadline for capital payback? • Are potential benefits corresponding to the risk? • Are strategies appropriate in the future? Are they suitable to life cycle of products? + Are strategies appropriate to current development period in the life cycle of the products? + Do strategies predict and catch the product development trends in the future? + Is the time of strategies implementation appropriate and effective? + Are analysis, consideration and hypotheses practical? Table of strategies assessment is made based on the following principles: • Total ratio of all factors equals to 1; • Points are ranked on reaction ability of each strategy by each factor is determined by the following principles: + - 2: Weak + - 4: Poor + - 6: Average + - 8: Good + - 10: Excellent • The total points of each strategy are in range of - 10 • Selection guidelines: + Remove all the factors with the total point less than 5.00 + Select the strategy with the highest total point - PAGE 86 - Table 3.4: TABLE OF ASSESSMENT STRATEGIES FOR RANG DONG COMPANY Order Criteria Importance S1-S2-O1-O3 W1-W4-O3 W3-O6 Rank Point Rank Point Rank Point 0.12 0.96 1.08 1.08 Appropriate environmental circumstances to Help the company obtain advantages in comparison with competitors 0.12 0.96 0.84 0.84 Appropriate to organizational structure, internal policies, management style and business philosophy 0.12 0.96 0.84 0.84 Human ability 0.10 080 0.70 0.70 Safety of financial resources 0.12 0.84 1.08 0.84 Corresponding of benefit potentials to the risks 0.12 0.96 1.08 0.96 Appropriate to future development, and life cycle of products 0.10 0.90 0.80 0.80 Appropriate time of implementation 0.10 0.80 0.90 0.80 The accuracy of analysis and consideration 0.10 0.70 0.80 0.70 10 Total points 1.00 resources - PAGE 87 - 7.88 8.12 7.56 Thus, based on results of final analysis, the selected strategy is W1-W4-O3 strategy: Strengthening marketing capacity of the company, focusing on collecting market information to better exploit domestic market and promote export 3.4 SOME RECOMMENDATIONS TO RANG DONG COMPANY TO EFFECTIVELY APPLY SWOT MATRIX AND IE MATRIX MODEL SWOT Matrix and IE Matrix tools are very effective for analysis, formation and selection of strategies To apply methodically and effectively this tool, the company must meet the following conditions: 3.4.1 Building an information collection system The company will need to efficiently develop information collection systems Specifically: Building evaluation criteria system: the criteria are used to evaluate the business environment and internal environment of the company Each environment has its own characteristics, including a variety of factors, and interacts one another Therefore the evaluation criteria system should ensure that the company not only recognizes the impacts of each factor to business activities but also recognize the multi-dimensional impacts Building a system to collect formed information: based on evaluation criteria system, the company develops a system to collect formed information for assessing the factors according to these criteria Information collected in the forms is the basis for analysis and evaluation of factors Setting regular information evaluation procedures according to application standards of the SWOT matrix and IE Matrix: Usually information is collected monthly, quarterly, and annually Because of large and complex information, so it is useless if processing and analysis procedures are not scientific even though information collection is effective The setting information evaluation procedures will allow the in-order and scientific implementation Setting a system of information management software to help managers store and systematize information, filter necessary information for each research - PAGE 88 - objective Building software system applying SWOT and IE models to automatically calculate in case of enough information 3.4.2 Conditions of human resources For managers • Depth understanding and be able to apply SWOT and IE Model; • Able to build and organize the system to collect information frequently and effectively; • Able to manage and operate information management system; • Able to mobilize resources for the company to implement strategies (finance, resources, research ); • Able to flexibly use these two tools to adjust strategies in cases of environmental changes For staff administrators • Understanding of SWOT and IE models, how to apply to IE and SWOT models in analysis and building business strategies; • Need to be regularly trained on SWOT and IE based on working position • Able to apply to IE and SWOT analysis in professional assignments; - PAGE 89 - CONCLUSION In a world, only the competition principle is constant but business environment changes every day, enterprises can only survive and develop if they are continuously innovating and enhancing the ability to adapt to the fluctuations and risks To so, building and implementing business strategies play very important roles Business strategy is the guideline that the senior managers will need to lead and run the business There are many tools supporting managers in analyzing and building business strategies for enterprises, of which SWOT Matrix and IE Matrix tools are powerful and easily applicable SWOT Matrix analysis model which is a qualitative tool allows analyzing information about opportunities and challenges, strengths and weaknesses of the enterprise and grouping strategies plans IE Matrix model allows analyzing quantitatively internal environment of the enterprise and the reactions of the enterprise before the impacts of business environment Each model has its own advantages and disadvantages points, so using both matrices in analyzing and building competitive strategies of the enterprise is suitable Quantitative analysis results of IE matrix are basis to select the SWOT strategies and then select the dominant strategy of the enterprise In this assignment, analysis method combining SWOT matrix and IE Matrix is used to build business strategies for Rang Dong Company in the period 2010 2015 According to analysis results in IE matrix, the company has some internal limitations, particularly weak marketing capacity, but in general the company has reacted quite well to the impacts from the environment Combined with the analysis results in SWOT Matrix, Rang Dong Company should select the SO strategy or WO strategy to take advantages of the strengths and overcome weaknesses to grasp the opportunities in the market Final analysis results showed that in the first phase (from now to the year 2010) the company should select investment strategy to improve marketing capacity, improve the ability to exploit and capture market information, exploit - PAGE 90 - effectively and expand distribution channels and promote Rang Dong Company brand name In the next phrase (2011 – 2015), the company should focus on increasing production capacity and new products research and development capacity to occupy the market and to take advantages of marketing strategies With the fact that business strategies are methodical, scientific and appropriate to objective and subjective conditions, are supported by all staffs of the company, it is able to believe that the strategies will be implemented very effectively to help Rang Dong Company increasingly assert its leading position in lighting industry in Vietnam - PAGE 91 - REFERENCES Announcements of Rang Dong Light Source and Vacuum Flask Join Stock Company in 2006 and 2007 Financial Statements 2005, 2006, 2007 (audited) of Rang Dong Light Source and Vacuum Flask Join Stock Company Financial Statements 2006, 2007 (audited) of Dien Quang Company Nguyen Thi Lien Diep, Pham Van Nam (2006), Business Strategy and Policy, Publishing House of Labor - Society Hanoi Nguyen Thi Lien Diep (2005), Management Education, Publishing House of Statistics Nguyen Thanh Do, Nguyen Ngoc Huyen (2002), Enterprises’ business strategy and development, Publishing House of Labor - Society Hanoi W Chan Kim and Renee Mauborgne (2007), Blue Ocean Strategy, Publishing House of Knowledge Micheal.E.Porter (1996), Competitive Strategy, Publishing House of Science Engineering Hanoi Le Van Tam (2000), Strategic Management, Publishing House of Statistics 10 Institute for management research and training VIM (2006), Set up and deploy business strategy - The road to success, Publishing House of Labor - Society Hanoi - PAGE 92 - APPENDICES Appendices Functions and responsibilities of departments – Rang Dong Light Source and Vacuum Flask Join Stock Company  General Director Office is responsible for administrative works, official documents  Production Organization and Operation Department: is responsible for human resources management, income distribution, staff allocation for production; materials guarantee, operation planning and management, inventory materials statistics  Storage Department: is responsible for materials management, inventory goods and assets management; storage entry-exit procedures; materials informs to related departments  KCS Department: is responsible for input –output quality control  Market Department: is responsible for marketing research; building marketing strategies, sales promotion and product advertisement, market expansion  Engineering and Technology Department: is responsible for building science-technology strategies, applying new technologies, improving – changing – replacing machines and equipments, controlling investment activities of machines and capital construction  Statistics- Accounting – Finance Department: is responsible for financial planning and management; accounting statistics according to national rules; providing information for financial management and capital effectiveness  04 branches: including Hochiminh City Branch, Can Tho Branch, Đa Nang Branch, Khanh Hoa Branch, are responsible for business operations; market organization, market management, and customers management; information collection and report; consultancy services, exhibition activities, product advertisement - PAGE 93 -  04 representative offices: in Hai Phong, Thai Nguyen, Nam Dinh, are representative of the company in supervising sales and market promotion; support trading activities, exhibition activities, advertisement activities  Lighting consultation services center: promotes trading activities and market expansion; after-sales services; promotes consultation services to encourage using synchronous and energy products; directly provides services of design, installation and replace lighting products  Security Department: protects production activities and assets; and maintains discipline in the company  Clinics: is responsible for health care of staffs, building and organizing precautionary measures for epidemic diseases  At the present, the company has established Project Management Board which is responsible for implementing construction of second base near Que Vo Industrial Park – Bac Ninh Province - PAGE 94 - Appendices Branches and Representative Offices – Rang Dong Light Source and Vacuum Flask Join Stock Company  Da Nang Branch: 410 Hung Vuong street –Vinh Trung ward– Đa Nang City Tel: 0511.3689777; FAX: 0511.3818660  Nha Trang Branch: 51B1 Le Hong Phong street–Nha Trang City– Khanh Hoa Tel: 058.3875331; FAX: 058.3875631  Hochiminh City Branch: 6/26 Binh Phu street – Ward 11– District – Hochiminh City Tel: 08.38769452; FAX: 08.3856381  Can Tho Branch 54 Hung Vuong street –Thai Binh ward– Can Tho City Tel: 071.3813346; FAX: 071.3813342  Representative Office in Thai Nguyen: 26 Cach mang thang street - Thai Nguyen City Tel: 0280.3752773  Representative Office in Hai Phong: 222 Ton Đuc Thang street – Hai Phong City Tel: 031.3857786  Representative Office in Nam Đinh: 35 Truong Chinh street– Nam Đinh City Tel: 0350.3865668  Representative Office in Vinh: 323A Le Duan street – Trung Đo ward - Vinh Tel: 038.3563439 - PAGE 95 - Appendices Business operation results – Rang Dong Light Source and Vacuum Flask Join Stock Company 2006 - 2007 2006 Item Fluorescent Lamp Output (unit) 2007 Value (thousand VND) Output (unit) Value (thousand VND) 19,970,000 125,395,000 13,219,223 86,635,510 76,846 2,334,000 13,499,975 288,882,888 8,781,545 16,826,000 6,506,010 12,805,966 Ballast 395,533 5,798,000 365,483 6,797,753 Plug 129,415 3,439,000 128,345 5,070,830 Compact Lamp Round bulb Other 6,503,986 44,354,659 Total 160,397,986 Source: Accounting – Finance Department 444,547,606 - PAGE 96 - [...]... management, working style, ethics For direct workers, the most important aspects are working skills, qualification and discipline Assessment of financial capacity must base on three main criteria: payment ability, rate of capital turnover and profitable ability Payment ability shows the capacity of payment of critical debts; the rate of capital turnover expresses business capacity and business management;... capacity 2 Technology capacity 3 Research capacity 4 Human resources quality 5 Financial Capacity 6 Marketing capability and and Ratio Points 1-4 Convert Points structure, production development … Total 1 1-4 Like EFE Matrix, IFE Matrix construction should include 6 steps: Step 1, analyzing the internal environment of enterprise Step 2, listing factors which are identified in step 1 Factors typically... To assess production capacity, it is necessary to consider: production ability of main products, productive equipment and technology, organization and operation of the manufacturing process, the quality management system, products structure, life cycle and the competitiveness of each product To assess the capacity of research it is necessary to pay attention to the ability to develop new products... utilization of enterprise’s production potentials and power; enterprise’s financial, facility and labor ability, in accordance with the internal policies, business philosophy, management style of the enterprise… 1.2 SWOT MATRIX AND IE MATRIX MODEL 1.2.1 SWOT Matrix 1.2.1.1 SWOT Matrix Description Strengths - Weaknesses, Opportunity - Threats Matrix (SWOT Matrix) is a tool to develop strategies which combines... and the ability to change the new provider, (iii) customer’s ability to incorporate back (with suppliers), (iv) impact of the monopoly and quality of selling product on consumer’s product quality Impact of suppliers to the enterprise is contrary to the customers In relationship with this counterpart, the enterprise’s impact-bearing ability depends on the position of the enterprise in comparison with... measure was particularly encouraging for enterprises which performed effectively and had good financial capacity In recent years, electricity demand has increased dramatically while power supply is limited The whole nation faces a serious problem of electricity shortage Therefore, electricity saving is highly interested, which is expressed in the Project of replacing 20 millions incandescent lamps... enterprise; Market There is no perfect substitute product, so the pressure from substitute products is nearly unavailable; Products are diversified in size, style, type, capacity Market needs is high, diversified, and increasing in scale, moves to high capacity and economic products; As direct consumption products, distribution channels must be widespread; Technology and materials Technology changes with high... market  Competitor can have great ability to cover the market  Lost the market share due to weak marketing capacity  Competitors create joint-venture to diversify their products Table 2.7: EFE MATRIX - COPING ABILITY OF RANG DONG COMPANY AGAINST COMPETIOTORS Convert Order Factors Ratio Score score 1 Competitive position in the market 0.20 3.00 0.60 2 Ability to cover market 0.20 2.00 0.40 3 Product... with competitive price and quality They are well-qualified products with higher price than the domestic ones 2.1.2 Political and legal environment analysis Politically and legally, high economic growth and political stability are the main factors attracting foreign investors to Vietnam Enterprise Law 2005 created a - PAGE 27 - good and equal business environment for all types of businesses Administrative... cooperation show the sensitive ability to capture market needs choose business partners to minimize the weaknesses and to utilize strengths - PAGE 14 - 1.1.2.3 Identify of strategic goals Strategic goals of the enterprise is the results that the enterprise must achieve in a period of time in accordance with objective and subjective conditions, and the enterprise’s ability toward defined plan A good strategic