Luận văn Chiến lược phát triển công ty Cổ phần Vật liệu SECOIN

LUẬN VĂN CHIẾN LƯỢC PHÁT TRIỂN CÔNG TY CỔ PHẦN VẬT LIỆU SECOINChapter 1: Fundamental theories of management strategyChapter 2: Actual situation of business management in Secoin Building Material Corporation during recent timeChapter 3: Solutions to strategic management of Secoin Building Material Corporation during the period 20102020

LUẬN VĂN CHIẾN LƯỢC PHÁT TRIỂN CÔNG TY CỔ PHẦN VẬT LIỆU SECOIN DEVELOPMENT STRATEGIES OF SECOIN BUILDING MATERIAL CORPORATION DURING THE PERIOD OF 2010-2020 Strategic Management of Secoin BM Corp during 2010-2020 Page PREFACE GENERAL INTRODUCTION A The importance of making Development Strategies The modern business environment is changing day by day Vietnam by far has been considered one of the fastest growing economy, not just in Asia but the entire world Opening the economy in 1986, Vietnam has undergone almost 30 years toward a real market economy An important milestone in the way of global integration for Vietnam was marked when Vietnam joined WTO A lot of changes have been made and are expected to be made in the years to come, especially the period of 2010-2020 The question is: Will those fast changes have any influence Vietnamese companies? Of course the answer is YES All leaders of Vietnamese companies can easily answer YES without need to think But it will be a much harder question for them to answer: How will their companies cope with those changes? Will they be able to grow sustainably in the road ahead? How they expect their companies to become in ten years time? So, we have come to the point of strategic thinking! The German people has a proverb: “What's the use of running if you are not on the right road?” Strategic thinking will help leader of a company decide where his organization has to go, and whether they are going on the right road or not A leader with a good strategy will make the company grow by grasping the opportunities that the outside world bringing to them By all these thoughts, our team can see the importance of strategic thinking in the mind of leaders of companies who are operating in a fast changing business environment A strategic thinking in the mind of leader shouldn’t be confidential information Strategy defines the future goals of a company and they should be known by all company members The whole staff should have a clear understanding of the Strategic Management of Secoin BM Corp during 2010-2020 Page direction of further development of the company, otherwise the company is doomed to failure We are now in the second half of 2009 The year 2008 and the first half of 2009 has witnessed so much turbulence in the global economy It is expected that the recovery will start from early 2010 Then, the period of 2010 to 2020 may be the time for economic growth Vietnam will be in that growing trend, and Vietnamese companies are driving force of an economic booming Start making a business strategy for 2010-2020 right from today - it is the first thing a company leader needs to if he has not done it yet Realizing the importance of working out a development strategy for the coming 10 years, the leader of Secoin Building Material Corporation can draw a picture of the future prospect for his company What to be put in the picture? It should be a panorama showing in details the environment Secoin is in, how Secoin looks like, and where Secoin needs to go Developing an extensive and comprehensive development strategy is therefore the most important task for Secoin Now, let’s us go together into more details and help Secoin Building Material Corporation work out a perfect “DEVELOPMENT STRATEGIES OF SECOIN BUILDING MATERIAL CORPORATION DURING THE PERIOD OF 2010-2020" B The purpose of researched topic The purpose of conducting this research is to identify strategy and business development to the year 2020 for Secoin Building Material Corporation From there, Secoin can take appropriate action to expand the scale, reduce business costs, use capital effectively, bring profits to enterprise as well as increase efficiency in competition for business Strategic Management of Secoin BM Corp during 2010-2020 Page In this research, we also suggested some solutions to Secoin in order to implement the corporate strategy and business strategy during the period of 2010-2020 C Research methods: For conducting this project, we have used the methods of single complication, statistics, survey, synthesis and analysis Scope of research: This project focuses on reviewing the current strategy of Secoin Building Material Corporation and the existing achievements and the limitations In addition, research on strategic planning and business development of Secoin Building Material Corporation during the period 2010-2020 D Capstone project structure: Our project includes three chapters as follows: Chapter 1: Fundamental theories of management strategy Chapter 2: Actual situation of business management in Secoin Building Material Corporation during recent time Chapter 3: Solutions to strategic management of Secoin Building Material Corporation during the period 2010-2020 Strategic Management of Secoin BM Corp during 2010-2020 Page CHAPTER FUNDAMENTAL THEORIES OF MANAGEMENT STRATEGY 1.1 Overall management strategy: 1.1.1 The concept of strategy and management strategy: The concept of strategy: Strategies are means to ends All organizations, large and small, profitseeking and not-for- profit, private and public sector, have a purpose, which may or may not be articulated in the form of a mission and/or vision statement “The flame of competition has changed from smoky yellow to intense white heat For companies to survive and prosper they will have to have a vision, a mission and strategy They will pursue the action arising from that strategy with entrepreneurial skill and total dedication and commitment to win.” (Peter B Ellwood, Chief Executive, Lloyds TSB Group ) “Far too many companies either have no goals at all, other than cost reduction, or their boss hides them in his head There’s no hope for companies in Britain unless more top managements accept the need for a widely communicated set of clear objectives.” Peter Beck, ex-Chairman, The Strategic Planning Society, 1987 At their simplest, strategies help to explain the things that managers and organizations These actions or activities are designed and carried out in order to fulfill certain designated purposes, some of them short term in nature, others longer term The organization has a direction and broad purpose, which should always be clear, articulated and understood, and which sometimes will be summarized in the form of a mission statement More specific milestones and targets (objectives) can help to guide specific actions and measure progress Strategic Management of Secoin BM Corp during 2010-2020 Page Strategies, then, are means to ends They are relevant for the organization as a whole, and for the individual businesses and/or functions that comprise the organization They are created and changed in a variety of ways They have, however, one common feature: they all have life cycles and need changing, either marginally or dramatically, at certain times While strategic management incorporates major changes of direction for the whole business, such as diversification and growth overseas, it also involves smaller changes in strategies for individual products and services and in particular functions such as marketing and operations Decisions by managers in relation to their particular areas of product or functional responsibility have a strategic impact and contribute to strategic change To some extent, all managers are strategy-makers Strategic management is a complex and fascinating subject with straightforward underlying principles but no ‘right answers’ Strategy is about issues and perspectives on problems - there is no single, prescriptive doctrine which satisfies everyone’s views Companies succeed if their strategies are appropriate for the circumstances they face, feasible in respect of their resources, skills and capabilities, and desirable to their important stakeholders - those individuals and groups, both internal and external, who have a stake in and an influence over the business Simply, strategy is fundamentally about a fit between the organization’s resources and the markets it targets - plus, of course, the ability to sustain fit over time and in changing circumstances Morrison and Lee (1979) concluded that successful companies seem to be distinguished from their less successful competitors by a common pattern of management practices: ■ First, they identify more effectively than their competitors the key success factors inherent in the economics of each business For example in Strategic Management of Secoin BM Corp during 2010-2020 Page the airline industry, with its high fixed costs and relatively inflexible route allocations, a high load factor is critical to success It is important, though, that high load factors are not at the expense of healthy sales of more expensive seats, and this requires skilful marketing ■ Second, they segment their markets so as to gain decisive competitive advantage, basing the segmentation on competitive analysis and often separating segments according to the strengths and weaknesses of different competitors This enables them to concentrate on segments where they can both maximize their competitive advantage and avoid head-on competition with stronger competitors ■ Third, they carefully measure and analyze any competitive advantage This requires a sound basis for assessing a company’s advantages relative to its competitors ■ Fourth, they anticipate their competitors’ responses Good strategic thinking also implies an understanding of how situations will change over time Business strategy, like military strategy, is a matter of maneuvering for superior position and anticipating how competitors will respond, and with what measure of success ■ Fifth, they exploit more, or different, degrees of freedom than their competitors Specifically, they seek to stay ahead of their rivals by looking for new competitive opportunities Whilst innovation and constant improvement are essential, there are also potentially huge rewards for organizations which are first to reach the new competitive high ground by changing the currently practiced rules of competition ■ Finally, they give investment priority to businesses or areas that promise a competitive advantage Because there are many views on strategy and strategic management and no single, universally accepted, approach, a study of strategic changes in a variety of different organizations is valuable An examination of outcomes, followed by an analysis of the Strategic Management of Secoin BM Corp during 2010-2020 Page decisions which led to these relative successes and failures, is rich in learning potential Examples should not be confined to just one sector Manufacturing and service businesses, the private and public sectors and not-for-profit organizations are all relevant Everyone who can make or influence decisions which impact on the strategic effectiveness of the business should have at least a basic understanding of the concepts and processes of strategy The processes will often be informal, and the outcomes not documented clearly, but they still exist, and managing the processes effectively determines the organization’s future Without this understanding people often fail to appreciate the impact of their decisions and actions for other people within the business They are less likely to be able to learn from observing and reflecting upon the actions of others They are also more likely to miss or misjudge new opportunities and growing threats in the organization’s environment Overall Definition: Johnson and Scholes (Exploring Corporate Strategy) define strategy as follows: "Strategy is the direction and scope of an organization over the longterm: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations" In other words, strategy is about: * Where is the business trying to get to in the long-term (direction) * Which markets should a business compete in and what kind of activities are involved in such markets? (markets; scope) * How can the business perform better than the competition in those markets? (advantage)? Strategic Management of Secoin BM Corp during 2010-2020 Page * What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources)? * What external, environmental factors affect the businesses' ability to compete? (environment)? * What are the values and expectations of those who have power in and around the business? (stakeholders) Strategy at Different Levels of a Business Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business Corporate strategy is often stated explicitly in a "mission statement" Business Unit Strategy - is concerned more with how a business competes successfully in a particular market It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc Operational Strategy - is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction Operational strategy therefore focuses on issues of resources, processes, people etc The concept of management strategy There are a number of aspects to strategic management First, the strategy itself This is concerned with the establishment of a clear direction for the organization and for every business, product and service, and a means for getting there which requires the creation of strong Strategic Management of Secoin BM Corp during 2010-2020 Page competitive positions The second requirement is excellence in the implementation of strategies in order to yield effective performance Third, creativity and innovation are needed to ensure that the organization is responsive to pressures for change and that strategies are improved and renewed Fourth is the ability to manage strategic change, both continuous, gradual, incremental changes and more dramatic, discontinuous changes Innovation and change concern the strategy process in an organization Sound implementation and innovation should enable an organization to thrive and prosper in a dynamic, global environment, but in turn they depend on competencies in strategic awareness and learning Organizations must understand the strategic value of the resources that they employ and deploy, and how they can be used to satisfy the needs and expectations of customers and other stakeholders while outperforming competitors Strategy is about actions, not plans - specifically the commitment of resources to achieving strategic ends … concrete steps that immediately affect people’s lives, not abstract intentions Andrew S Grove, CEO, Intel In its broadest sense, strategic management is about taking "strategic decisions" - decisions that answer the questions above In practice, a thorough strategic management process has three main components, shown in the figure below: Strategic Management of Secoin BM Corp during 2010-2020 Page 10 These strategies are highly suitable with the company’s development in 20102020 However, the strategies for 2010-2020 will be shown by new development objectives which are higher that those in the current period These objectives are presented hereinafter 3.5 Development objectives of Secoin Building Material Corporation in the period 2010-2020 3.5.1 Qualitative objectives: Focusing into KEY TARGET MARKET based on consistent positioning of the core products by: NON-BURNT – OUTDOOR – HIGH GRADE, those markets are:  Big and high-grade real estate projects in the domestic market (residential areas, apartment buildings, resorts, high class hotels, office complex, key public and transport projects,…)  Expanding export market, especially Middle East, the US and Europe Investing and expanding to set up chain of Secoin non-burnt building material factories in areas North – Centre – South of Vietnam, enlarging the covering scope and influence of Secoin brand all over the country Deeply penetrate into Da Nang and other market in the Central area through M&A: Buying out a company or a factory in the same industry or buy majority of stock to control and integrate it into Secoin system Opening more member companies or branches in other countries, selecting potential market to build up non-burnt building material factory Focusing into potential market like Australian market (with high-grade products and existing distribution channel) and African markets (basic products for high consumption market) Implementing new investment projects for member companies belonging to Secoin, including: - Investment project for light-weight concrete production - Investment project for composite decking production - Investment project for artificial quartz slab production Strategic Management of Secoin BM Corp during 2010-2020 Page 95 - Investment project for composite roofing sheet production All these products are new non-burnt building materials which have never been made in the Vietnamese market They are considered high-grade materials destined for a market when the current non-burnt building materials have become too familiar and too popular Establishing strategic alliance: Instead of cooperating as normal partners, each member in the strategic alliance will be a part of a supply chain to create added-value to customers Other members in the supply chain will become strategic investors in Secoin Building Material Corporation The strategic alliance includes: - Raw material suppliers for the factories within Secoin system - Shipping companies, logistics for domestic transport and export shipping for Secoin products - Distribution channels (distributors, dealers, export representatives) for Secoin products in Vietnam and Foreign markets - Investors of big real estate projects (residential areas, industrial zones), traditional constructors who use Secoin products - Banking institutions, Investment funds, Securities companies to provide credit fund to Secoin system - Suppliers of technologies and equipment to Secoin factories 3.5.2 Quantitative objectives: The plan of developing Secoin group during the period of 2009-2013: Source: Secoin’s Business Development Plan towards 2015 Strategic Management of Secoin BM Corp during 2010-2020 Page 96 Other criteria for 2009-2013: Criteria Member Unit 2009 2010 2011 2012 2013 Company companies Factories Area for land Factory m2 and building Total production m2 2.300.000 3.200.000 3.700.000 4.200.000 5.500.000 output Labor force Average income Person VNĐ 750 1.000 1.200 1.350 1.700 2.700.000 3.000.000 3.400.000 3.700.000 4.100.000 80.000 110.000 125.000 135.000 11 160.000 per person Source: Secoin’s Business Development Plan towards 2015 3.6 Some solutions to strategic management of Secoin Building Material Corporation in the period 2010-2020 3.6.1 Group of solutions to organizational structure: Organizational structure of Secoin includes: Mother Company and member Companies in which Mother Company owns over 51% of owners’ equity In the system: - Mother Company in Hanoi: responsible for:  Setting up & supervising general management system of the whole Secoin group -  Conducting research & development for member companies  Establishing distribution channels for the whole Secoin group  Building and developing Secoin brand Member companies: responsible for production and supply to target markets Organizational structural of member companies: As shown in Chapter 3.6.2 Group of solutions to production: With the aim of keeping Secoin Building Material Coporation at the top position in South East Asia and supplying high quality non-burnt building materials to high-end market segment, the Company needs to concentrate and invest into its Strategic Management of Secoin BM Corp during 2010-2020 Page 97 production systems, putting special emphasis on:  Investing in equipment to increase production capacity and meet with increasing demand for non-burnt building materials  Investing in Research & Development (R&D) Center in Mother Company to research the diversification of products, new products to meet with the diversified market demand At the same time, always studying and applying latest technologies for non-burnt building materials into Secoin group  Dividing groups of products to be manufactured by member companies in view of geographical locations, so as member companies not make the same products for the same markets On that basis, dividing markets and product groups to each member company  Carrying out maintenance of machinery and equipment, so as they operate in smooth conditions and make high quality products  Enhancing the product quality control Putting it right to the procedures under ISO management system in terms of quality management and environment management Maintaining and enhancing the application of Kaizen and 5S as instructed by Japanese experts  Applying quality management tools such as Total Quality Management, sigma, Just-in Time JIT  Improving training and education for the production staff Apart from onspot training, it is necessary to apply tele-training or customized training at Universities or Business Institutes 3.6.3 Group of solutions to marketing and distribution channels It is expected that by the year 2010, the production capacity of the Company will reach 3.200.000 m2 With this capacity, Secoin will concentrate in the solutions to expand market and protect product brands, manage to reach export share of 50% to 70% Marketing solutions to be applied by Secoin are:  Every year, Mother Company will establish marketing strategy for the whole group, in which clearly defining: Strategic Management of Secoin BM Corp during 2010-2020 Page 98  Choosing target markets: for each geographical location, it is necessary to identify the target market, market segment and appoint a specific member company to be in charge of that target  Positioning each specific non-burnt building material in specific target market (both domestic and foreign markets)  Consistently following DIFFERENTITATION strategy throughout the course  Implementing marketing mix (4P+3P): Product, Price, Promotion, Place and Packaging, Process, People  Building up advertising campaigns, participating and domestic and international exhibitions, promotion programs, supportive documents and stationeries for the sales of the whole group This will help reducing marketing cost for each member company but still maintain the marketing efficiency  Working out specific marketing plan to enter big projects, then coordinating with member companies for implementation  Focusing into creating target markets:  Big and high-grade construction and real estate projects in the domestic market (new towns, apartment buildings, resorts, high class hotels, office complex,…)  Expanding the export markets, especially Middle East, the US and Europe  Forming sales teams who work efficiently, professionally and closely coordinate among member companies, to be specific:  Mother Company: being in charge of export market  Member companies: being in charge of domestic market, each member company has its own sales department to take care of its target market Member companies can act as the others’ agent for selling products crossing the market  Pushing up training and education for staff in charge of marketing, trade promotion, brand building, diversifying sales and distribution channels Strategic Management of Secoin BM Corp during 2010-2020 Page 99 3.6.4 Group of solutions to human resources management: Human resources play an important role in the production-trade process of the company in order to have highest result In this regards, the following tasks have to be done:  Recruiting and building up high-level management teams in member companies This is currently a weakness of Secoin Working out effective solutions to keep talented people: apart from salary and bonus, there should be long-term measures such as Employee Stock Ownership Plan ESOP issued on 8/8/2009  Mother Company needs to establish standard regulations for human resources management and enclosed instruction such as: employee handbook, regulations,…  Building a compact, efficient and professional structure  Setting up job title and standard for the company’s workforce, especially standards for leaders (heads and deputy heads of departments, heads of member companies) to be the foundation for internal training, job allocating and recruiting  Having a system to encourage members of the company to have selftraining, self-learning to improve professionalism  Developing unions to take care of living conditions for employees and support the company’s production and trade activities  Setting the system of short-term and long-term exchanging workforce among member companies Suggested implementation program for training and developing human resources in Secoin corporation In order to work out solutions to the problems in training and developing human resource in Secoin, the very first task that Secoin’s Board of Directors need to is to analyze the internal environment, from there to pose solutions (1) Analyzing internal environment in Secoin to evaluate the need for training: consisting of analysis: Strategic Management of Secoin BM Corp during 2010-2020 Page 100 - Organizational analysis: It is necessary to orient the training strategy of Secoin; training program should be made in accordance with Secoin’s goal and action plan; Some basic factors for analysis are: -  Secoin business situation at that point of time  Secoin products situation  Secoin market situation  Situation of Secoin’s competitors Job analysis: To figure out the necessary skills and behavior for employees to perform their work well Once the tasks or goals which training must reach have been determined, the next step is to make a detailed analysis of each part of the job - Employee analysis: The company needs to determine who have to go through training as well as skills, knowledge to be provided or emphasized during the training course Training programs should only focus into those who really need to be trained - Objective staff to be trained in Secoin can be divided into groups: firstly, it is the group of high-level managers – to be divided into managers and manager source (future managers); secondly, it is the group of supervisors and the third group is direct production workers (2) Designing training program Periodically, each member company, factory or office belonging to Secoin makes training programs for themselves, giving a proper time frame for training and estimating the training cost Such a program is then sent to the head office and an overall program is made to submit to the Board of Directors The training programs also specify training organizations (trainers) to be chosen (3) Choosing time frame for training Strategic Management of Secoin BM Corp during 2010-2020 Page 101 Based on production and business plan and the overall training plan, member companies of Secoin have to coordinate with the head office to make a training plan for the whole year right from the beginning of the year The training courses should be organized in such a way that employees will be split away from their daily work so as they can concentrate their best into their study (4) Evaluation training programs When evaluating training programs, it is necessary to make table of questions for asking the level of satisfaction of participants immediately after the training courses finish The company should also ask the trainers to examine the learning process of trainees, to test the knowledge they gain from the training courses On the other hand, leader of each member company has to take the initiative to organize and control the application of the knowledge into practice after the training courses (5) Building a separate team specialized in training The company needs to appoint a Director for Training and Developing Human Resource working at head office and helping specialized employees at member companies for training implementation (6) Some training methods and plans to be applied in Secoin group:  High-level training: for leaders at the high ranking positions, after the training courses, they will get valuable certificates like Master, Doctorate,…  On-the-spot training: This method is for training on job-site for each position in factories, office, head office in Secoin group  Work-designed training: Depending on the work position, the company will design a training program specifically for that position  In-class training: A professional trainer will train employees of the company in class To get the highest efficiency, the company has to Strategic Management of Secoin BM Corp during 2010-2020 Page 102 attach high importance to the training, to ask many employees to participate, to divide them into small groups for discussion and practice  Training by communication: Training to be done through communication with the main methods such as: Booklet, Catalogue, Audio and video recording, Youtube, internal or external seminars,…  Online training: Due to the characteristic that member companies are located far away from one another, online training is highly necessary to make training for providing new knowledge in a timely, time saving and cost saving manner (7) Other noteworthy points:  Regard training as a bonus for employees: Any employee has the ambition of development when joining an organization Training is nothing but the way for them to achieve their goal  Building a culture of learning: Learning in Secoin has to be built from all levels: from the top leader to the guard In short, for a growing company with a wide network of member companies like Secoin, training and developing human resource is one of the key decisive factors to determine the company’s success To gain success in this issue, there must be a strong determination from the top leader of the company to all members of Secoin 3.6.5 Policy for employees: The company always highly appreciates the labor force, considers it the most valuable asset and commits to apply all measures to develop its human resources Only when doing so can the company maintain and enhance its capacity in all aspects of production and trade Policy for bonus will be diversified to encourage production and trade Aware of the important role of people & people’s motivation in the business development, Secoin’s management needs to pay substantial attention to searching & setting up a system of motivators to employees Strategic Management of Secoin BM Corp during 2010-2020 Page 103 (1) A competitive complex of salary and benefit Policy for salary will be mostly based on units produced and units sold Bonus and allowances on the occasions of holiday, new year, especially highest bonus for Lunar new year In addition, there are other subsidies like illness subsidy, maternity subsidy, … according to the Labor Law of Vietnam (2) Incentive schemes Schemes are designed for specific departments, such as sales teams, financial teams, as well as production lines For the Sales the Incentive scheme is directly linked to sales performance of salesman in term of volume and turnover on quarterly basic For production line it’s based on cost saving, and for financial team such as money collectors, it’s based on debt rate This policy not only makes employees happy but also encourages them to compete with each other and result to the high productivity (3) Recognition In alignment with Incentive scheme we’ve set up a recognition award on monthly basis and the award is announced in the Information board of the company People are very excited of being “Employee of the month”, “Employee of the year” (4) Promotion Since Secoin is a big Group with many subordinate companies, people have many opportunities to be promoted The promotion is based on their knowledge, ability & strong performance in work, not taking in to account of relationship to the Directors or the owners (5) Training policy On the foundation that the current labor force has been trained and working stably for many years, the Company will continue training to increase efficiency of all the current labor force, at the same time selecting capable leading teams Every year, the Company will have on-site training, old workers train new ones, high skill workers train low skill ones to timely meet the production requirement (6) Chance to buy company stock, that makes staff feel they are owners of the business, thus they try to make it profitable In particular, the Company will apply Employee Stock Ownership Plan ESOP for leaders and staff to attract talented people, enhance the connection between employees and the Company and let employees be the real owners of the Company to get rich for their own Strategic Management of Secoin BM Corp during 2010-2020 Page 104 (7) Corporate culture Secoin makes effort to organize a lot of entertainment, sport & leisure activities, so employees have no stress in the working environment and consider the company their second home 3.6.6 Group of solutions to finance:  Establishing financial management standard in each member company and between Mother Company and member companies  Restructuring capital resources in each member company, balancing between liabilities and owners’ equity based on actual characteristics of each member company  Making the most use and maximizing source of fund from credit organizations or financial institutions such as Banks, investment fund, securities companies,… to distribute to member companies  The Company will apply internal financial management system, combining with the formation of accounting standards to ensure that accounting tasks are done quickly and accurately according to prevailing laws and regulations Each member company needs to establish annual financial criteria and control based on the set criteria  Focusing into financial analysis and forecast to efficiently evaluate the use of capital and work out suitable investment strategy 3.6.7 Group of solutions to expand the whole group of company: With the Corporate Level Strategy of RELATED DIVERSIFICATION, in the period of 2010-2020, the solution to expand the whole group will be based on the target markets below: Region City/Prov Qty of Qty of companie factories Timing s Midland and mountainous areas in the North Red River Delta North Central area Central area Lao Cai 1 2012 Quang Ninh Vinh Da Nang 1 1 1 2013 2012 2010 Strategic Management of Secoin BM Corp during 2010-2020 Page 105 Dac Lac Tay Ninh Can Tho Australia/ Tay Nguyen Highland East of Southern Delta West of Southern area Overseas investment 1 1 1 2013 2011 2010 2015 Africa Source: Secoin’s Business Development Plan towards 2015 Member companies mentioned above will be newly established, but the focus strategy is through merger & acquisition 3.7 Some petitions to Secoin Building Material Corporation: Secoin needs to take determined action to restructure the Company into shareholding and have Mother Company listed in the stock market in 2010 Going through various analysis, we find out that the weakest point in Secoin group lies in human resources Therefore, the Board of Directors should have maximum focus into building up and enhancing the capacity of human resources management with the solutions recommended in the earlier part Secoin needs to concentrate in investing for the system in the second half of 2009 and early 2010 to be ready for the economic recovery in the world and in Vietnam as well as the grand coming back of the real estate and construction market Strategic Management of Secoin BM Corp during 2010-2020 Page 106 CONCLUSION After months researching and working quickly and seriously, our team has completed the project: “Establishing development strategy for Secoin Building Material Corporation in the period 2010-2020” By applying the latest knowledge and analysis tools, we have looked intensively, posed opinions, solutions and petitions to the Company This is really an interesting topic for our team as one of the team members is the leader of the targeted company – this gives us the chance to take a deep research and acquire actual information and data Another member of our team is high-level leader of Hanoi Municipality in charge of construction – the industry in which Secoin Building Corporation is operating, so we have got good consultation in terms of macro policies On the other hand, Secoin is a private company - a spearhead in the economic development of the country in the future, and in addition Secoin has over 20 years of experience, starting from a family-run business then being socialized to become Publicly Listed Company Thanks to this fact, we can study about the Company from various “aspects” – identifying and analyzing “advantages, disadvantages” Another interesting point is that the industry Secoin is operating in is receiving appreciation from the Government, authorities and the entire society The prospect of the industry is very bright – it is the prospect of Non-burnt Building Materials To have a brief conclusion to our project, we would like to emphasize that “The strategy that Secoin Building Material Corporation has been applying and will apply in the period of 2010-2020 is Related Diversification and Differentiation – this strategy is completely suitable with the industry, the product line and the position that Secoin has built up during the past 20 years” Due to the limit of time and our knowledge may not be wide enough, the project surely will have certain short-comings We would highly appreciate comments and advice from the Evaluation Council to improve our project Our sincere thanks towards Secoin Company for giving information to complete this very important project in time Strategic Management of Secoin BM Corp during 2010-2020 Page 107 REFERENCE Abraham, 1999: “Strategic Alternatives and Choice – The Heart of Strategic Planning” Ass Professor, Dr Le The Gioi, Dr Nguyen Thanh Lien, MA Tran Huu Hai: “Strategic Management” – Statistics Publisher 2009 Blocher and co-authors, 2002: “Strategic Analysis and Strategic Cost Management” Brown and co-authors, 2002: “Customer Value Measurement” Denise L.Wells and Linda M.Doherty, Ph.D “A Hand Book for Stratetgic Planning” Draft of “Program for developing non-burnt building materials until 2020” of the Government – 7/2009 FredR.David, 2000: “Concepts of Strategic Management”, Statistics Publishing House Garry D.Smit, Danny R Arnold, 2003: “Business Strategy and tactics” Statistics Publishing House Griffin, 2005: “Competition Strategy” 10 Hill and Jones, 1998: “Strategic Management: An Integrated Approach” 11 http:// www.secoin.vn 12 http://cde.athabascau.ca/online_book/ 13 http://tutor2u.net/ 14 John Thomson with Frank Martin, edition: “Strategic Management; Awareness and Change” 15 Lecture on “Strategic Management” GeMBA - Griggs University and Hanoi National University 2009 16 Lecture on “Strategic Management” of Trade University, Vietnam 17 Micheal A.Hitt, R Duane Ireland, Robert E.Hoskission: “Strategic Management: Competetiveness and Globalization (Concepts and Cases)” edition, South-Western Cengage Learning, 2009 18 Neil Ritson “Strategic Management”, Ventus Publishing ApS, 2008 19 Prime minister’ s Decree: Strategy of developing Vietnam Construction Sector and Vietnam Electricity Sector from 2004-2010 and development trend to 2020 Strategic Management of Secoin BM Corp during 2010-2020 Page 108 20 R Alan Hill: “Strategic Financial Management”, Ventus Publishing ApS, 2008 21 Randall G Chapman, PhD “LINKS Marketing Strategy Simulation”, Revised June 2009 22 Raymond- Alain Thietart, 1999: “Enterprise’s Strategy”  Secoin business strategy and planning for 2009 23 Secoin Corporation’s source:  Secoin’s history book 24 Strategic Management textbook: Strategic Management - Strategic Management textbook Statistics Publishing House, 2007 25 W.Chankim, Renée Maubourgne: “Blue Ocean Strategy”, Havard Business School Press Strategic Management of Secoin BM Corp during 2010-2020 Page 109 [...]... external factors For example, an opportunity could be a developing distribution channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a company's products A threat could be a new competitor in an important existing market or a technological change that makes existing products potentially obsolete Strategic Management of Secoin BM Corp during 2010-2020 Page 28... Management of Secoin BM Corp during 2010-2020 Page 35 destroy a performance; a chain is only as strong as its weakest link A successful organization, therefore, needs people with appropriate skills and competencies who can work together effectively People must be: committed (commitment can be improved) competent (competencies can be developed, and can bring improved product quality and productivity) cost-effective... business These would include: - Business principles (e.g social policy, commitments to customers) - Loyalty and commitment (e.g are employees inspired to sacrifice their personal goals for the good of the business as a whole? And does the business demonstrate a high level of commitment and loyalty to its staff?) - Guidance on expected behavior – a strong sense of mission helps create a work environment... deadlines also need to be realistic 1.3 Strategy Analysis: We found that, how the organization is typically one of a number of competitors in an industry; and to a greater or lesser degree these competitors will be affected by the decisions, competitive strategies and innovation of the Strategic Management of Secoin BM Corp during 2010-2020 Page 17 others These interdependencies are crucial, and consequently... family size and effort consumer) composition; changing nature of International Government spending occupations) Labor / social trade (overall level; specific mobility and development regulation Consumer spending priorities) Policy towards Lifestyle changes Speed of protection unemployment (minimum (e.g Home working, technology New discoveries wage, unemployment single households) Employment benefits, grants)... Porter (1980) argues that five forces determine the profitability of an industry They are featured in Figure 1.4 At the heart of the industry are rivals and their competitive strategies linked to, say, pricing or advertising; but, he contends, it is important to look beyond one’s immediate competitors as there are other determinants of profitability Specifically there might be competition from substitute... though they are part of a different industry There may also be a potential threat of new entrants, although some competitors will see this as an opportunity to strengthen their position in the market by ensuring, as far as they can, customer loyalty Finally it is important to appreciate that companies purchase from suppliers and sell to buyers If they are powerful they are in a position to bargain... there are five forces that determine industry attractiveness and long-run industry profitability These five "competitive forces" are: - The threat of entry of new competitors (new entrants) - The threat of substitutes - The bargaining power of buyers - The bargaining power of suppliers Strategic Management of Secoin BM Corp during 2010-2020 Page 22 - The degree of rivalry between existing competitors... company's profitability If suppliers have high bargaining power over a company, then in theory the company's industry is less attractive The bargaining power of suppliers will be high when: - There are many buyers and few dominant suppliers - There are undifferentiated, highly valued products - Suppliers threaten to integrate forward into the industry (e.g brand Strategic Management of Secoin BM Corp during... Buyers threaten to integrate backward into the industry - Suppliers do not threaten to integrate forward into the buyer's industry - The industry is not a key supplying group for buyers Intensity of Rivalry The intensity of rivalry between competitors in an industry will depend on: - The structure of competition - for example, rivalry is more intense where there are many small or equally sized competitors;