Chiến lược kinh doanh của công ty cổ phần phân lân ninh bình giai đoạn 2010 2020

LUẬN VĂN THẠC SĨ Chiến lược kinh doanh Công ty Cổ phần phân lân Ninh BÌNh giai đoạn 2010 - 2020 MBA THESIS STRATEGIC BUSINESS OF NINH BINH PHOSPHATE JOINT STOCK COMPANY FROM 2010 TO 2020" -1- -2- TABLES OF CONTENTS Introduction .9 CHAPTER I: THEORITICAL BASIS OF BUSINESS STRATEGY .10 1.1 Concept, roles and business strategy models ……… 10 1.1.1 The concept of strategy and business strategy 10 1.1.2 The role of business strategy .11 1.1.3 Strategy model 12 1.2 Business strategy formulation process 13 1.2.1 Research stages 14 1.2.1.1 Identifying targets of the industry and company… .14 1.2.1.2 Analysing environment 14 1.2.2 Developing strategies 15 1.2.3 Selecting strategies 16 1.3 The major toolsfor strategy formulation and selection .16 1.3.1 SPACE Matrix .16 1.3.2 Matrix SWOT 17 Kết luận chương I .19 CHAPTER II CURRENT SITUATION ANALYSIS FOR NINH BINH PHOSPHATE JOINT STOCK COMPANY .20 2.1 Overview of Ninh Binh Phosphate Joint Stock Company 20 2.1.1 History and development of the company 20 2.1.2 The businesses of the company .22 2.2 The advantages and core competencies of the company .22 2.2.1 Geographical location of the company 22 2.2.2 Advantages of melted phosphate production in Vietnam .22 2.2.3 Production methods of melted phosphate .23 2.2.4 Current capacity and main products of the company: 23 -3- 2.2.5 Characteristics and the differences of melted phosphate as compared to other phosphates: .24 2.2.6 Human resources of Ninh Binh Phosphate Joint Stock Company 24 2.2.6.1 Human resources .25 2.2.6.2 Organizational structure .25 2.2.6.3 Management 25 2.2.7 Financial analysis and business results of Niferco for three years of 2006; 2007; 2008 .26 2.2.7.1 Balance sheet .26 2.2.7.2 Income statement for 2006, 2007, 2008 .26 2.2.7.3 Capital mobilization and employment 26 2.2.7.4 Analysis of financial ratios 28 a Liquidity 28 b Performance 28 c Profitability 29 2.2.8 Position of the company in phosphate industry .30 2.3 Analysis of the company’s business environment 32 2.3.1 Analysis of factors affecting fertilizer demand ……………… 32 2.3.1.1 Cultivated area development 32 2.3.1.2 Crop dependency 33 2.3.1.3 Farmers’ income dependency .34 2.3.1.4 Production practices and cultivation knowledge of each region in the country… 34 2.3.2 Analysis of production capacity and competition of domestic enterprises 36 2.3.2.1 Fertilizer demand and production cability of domestic enterprises .36 -4- 2.3.2.2 Analysis of the competition among rivals in Vietnam fertilizer industry 37 - Companies in the industry 37 - Position of the companies in phosphate industry 39 2.3.3 Analysis of potential rivals 40 2.3.4 Analysis of substitute and imported products 43 2.3.5 Analysis of the negotiation power of the buyers in fertilizer industry 43 2.3.6 Analysis of the negotiation power of the suppliers in fertilizer industry 44 2.4 Analysis of current strategic issues and corporate governance from the theory perspective 45 2.5 Determining current shortcomings of the company and analyzing their causes .4 CHAPTERIII BUSINESS STRATEGY OF THE COMPANY FOR THE PERIOD 2010 - 2020 AND CONCLUSION 50 3.1 The company's mission 50 3.2 Business objectives of the company 50 3.3 Strategy selection model 50 3.3.1 Space Matrix for the strategic position of the company 51 3.3.2 SWOT matrix 52 3.4 Business strategy of the company for the period 2010-2020 53 3.4.1 Strategic investment in core competency building: Increasing the capacity melted phosphate production, investing more in the high quaility NPK production line structure 53 3.4.2 Products differentiatation strategy 54 3.4.2.1 Improving product quality from 15% to over 17% of P2O5 54 3.4.2.2 Strategies for improving product visual designs 55 -5- 3.4.2.3 Competition by quality 55 3.4.3 Production and selling price cost strategy 56 3.4.4 Market expansion and investment strategy 57 3.4.5 Product promoting and advertising strategy 58 3.4.6 Competitive supplier and supplying speed strategy 58 3.4.7 Human resource management strategy 59 3.5 Strategy organization of implementation 66 3.6 Stratege evaluation and checking 67 3.7 Limits of the research and research orientation in the future 67 3.8 Conclusion 68 References 69 Appendix 70 -6- LIST OF ABBREVIATIONS No Meaning Melted phosphate Multi-nutrient fertilizer Multi-nutrient fertilizer Diamon Abbreviation FMP NPK DAP Phosphate General formula : 18 N - 46 P - K Board of Directors Ninh Binh Phosphate Joint Stock Company -7- BoD NIFERCO LIST OF APPENDIX, TABLES, DIAGRAMS No 10 11 12 13 14 15 16 17 Code Diagram 1.1 Bảng 1.2 Table 2.1 Table 2.2 Table 2.3 Table 2.4 Table 2.5 Table 2.6 Table 2.7 Table 2.8 Table 2.9 Table 2.10 Table 2.11 Table 2.10 Table 2.11 Diagram 3.1 Table 3.2 Name of appendixes, tables, diagrams Levels of strategies Example of SWOT matrix Position the company in the phosphate industry Position the company in the melted phosphate industry Table on liquidity ratio Table on performance ratio Table on profitability ratio Financial statements of the company in 2006, 2007, 2008 Financial analysis of the company in 2006, 2007, 2008 Phosphate output of the companies in 2006, 2007, 2008 Phosphate output of other companies Crop area by regions in Vietnam Inorganic fertilizer output from 2000 to 2008 Phosphate output from 2000 to 2008 Melted phosphate output from 2000 to 2008 SPACE matrix for the company’s strategic position SWOT matrix of the Company -8- Introduction Rationale: With the increasingly fierce competition in the market, each company should be ready with effective strategies to survive and develop steadily If an company has the right and appropriate business strategy, it can rely on its internal resources to take advantage of opportunities from the outside environment or to avoid the risks, limit the weaknesses and it will certainly be strong enough to compete and stand firmly on the market For Ninh Binh Phosphate Joint Stock Company, which is a state-owned company just having been transformed into a joint stock company, it faces with many difficulties and challenges than ever before as state sponsor is no longer available Ninh Binh Phosphate Joint Stock Company will have to make lot of effort to maintain market share and develop further This is also the reason we decided to select the project "Strategic Business of Ninh Binh Phosphate Joint Stock Company from 2010 to 2020" as the capstone subject The objective and significance of the project Objective: Appling learnt theories in combination with actual analysis to make an effective business strategy for Ninh Binh Phosphate Joint Stock Company from now to 2020 Significance: This thesis was made based on the management science with the desire to contribute to a unit that one team member have worked for many years Object and scope of research Object of research: Business strategy of Ninh Binh Phosphate Joint Stock Company from 2010 to 2020 Scope of research: Research the business environment of the fertilizer businesses and formulate business strategy for Ninh Binh Phosphate Joint Stock Company Research methodology Many methods such as quantitative and qualitative methods have been used in combination with analysis, statistics and expert interviews, capstone project is -9- done for Ninh Binh Phosphate Joint Stock Company to get the most comprehensive and accurate results Based on that, the report can offer an effective strategy Report structure: Apart from the introduction, the structure of the capstone project report consists of three major chapters: Chapter I: Theoritical basis of business strategy Chapter II: Current situation analysis for Ninh Binh Phosphate Joint Stock Company Chapter III: Business strategy for Ninh Binh Phosphate Joint Stock Company for the period 2010 to 2020 and conclusion Because of the time limit and despite of the committed guidance of instructor and the authors’ efforts, shortcomings can not be avoided in the report We hope to receive comments from the teachers, experts and all the course members - 10 - phosphate However, the company has extensive experiences so the transition will be feasible However, doing this will increase the fertilizer value (because of more nutrients), and this is also the method creating a difference for products produced by NIFERCO New competitors entering the market having little production experience, new investment, high depreciation and high cost so the company will maintain and develop its market As regards to cost leadership strategy, even though high quality is produced but the company will only sell products at low price similarly to 15% type (the company has had cost strategy as stated above) By doing this, the company will be promoting the export of products abroad For example, to export to the Japanese market, the standard prescribed in Japan is at least 17% P2O5 3.4.2.2 Strategies for improving product visual designs - During the distribution of products, the users of the company phosphate products reflect that the phosphate powder often fly away So if melted phosphate is made into grains, it will be easier for them to use, the product design will be good and user number will increase a lot The fertilizer products of the company are currently in the second stage of the product life cycle, which is the growth and development stage The melted phosphate product of the company is different from other fertilizers as besides providing nutrition to plants, the fertilizer of the company also reduce the acid, improves soil, help plants resist from pest and falling very well Therefore, it has won farmers’ trust In the coming period, based on the existing modern technology and new technology, the company will develop different product lines which are suitable for further characteristics of each type of land and crop 3.4.2.3 Competition by quality: To create trust for the users and to keep the users, in addition to low cost, the quality must be good If the price is low but the quality is not good, it will be much worse Customers will boycott and not continue to purchase, resulting in loosing - 57 - prestige in the market Products can’t be sold, causing production stop Moreover, the manufacturer's responsibility before the law is that it must ensure the product quality as it is published on the product packaging Good quality is the most practical business brand building method which brings users’ trust In the near future, the company will gradually improve all aspects’ quality of the product, especially the packing specifications and associated support services for agricultural production, distribution agents support 3.4.3 Production cost and sale price strategy: As we know, in the economy market today, there are many product supplier to the market Regarding phosphate product, there are now four large companies in the market nationwide Moreover, fertilizer in general and phosphate in particular are the input costs of agricultural production such as growing rice, coffee, rubber, etc So the lower fertilizer input costs is, farmers’ trust is higher because of the higher agricultural production efficiency (assuming selling price of agricultural product output is the same) The unique feature of the fertilizer market is that the consumption of fertilizers is relatively large, so when the manufacturers sell products at low prices, then the consumption will increase The manufacturers will produce at higher volume and cost is even more reduced More importantly, when the product hit the market more, more consumers know and the company brand name will be increasingly confirmed There are many ways to achieve low-cost target The current characteristics of the company are that it has many experiences in melted phosphate production, advanced consumption norms, not much remained fixed assets accounting value, so company has competitive advantage in cost as compared to competitors in the market - Regarding to the materials consumption norms: presently, the consumption of materials and energy of companies are much advanced (ex the coal consumption for melted phosphate production of the company is equivalent to countries such as China and Japan: consuming 0.24 tons of coal per ton of phosphate, China and - 58 - Japan use cup coal so it’s very expensive while Vietnam use domestic lump coal from Vang Dang Uong Bi so it’s cheaper and the supplies are also much available) To reduce to the norms more, the company needs to apply advanced science and technology to further reduce the norms, strengthen the management measures using the JIT production management model to reduce excess costs in production management It should select suppliers for input transportation to supply goods timely at lowest transportation fee, reduce inventory for avoiding waste resulted from too much stock - Regarding to financial management and investment: The current advantages of the company are that the working capital is large and enough to meet the business and production without getting bank loans; fixed assets depreciation is low so the finance cost is low The company needs to promote these advantages which are low and competitive selling price, diversified payment methods to boost the volume of goods sold The company also needs to consider financial investment for the suppliers to create a binding between suppliers and producers Suppliers must also provide timely and cheaply to facilitate the producer to make low cost and good quality products - In short, NIFERCO currently has competitive advantage in cost Therefore, in the period of 2010-2015, it is necessary to take the fullest advantage of this This is a competitive advantage making profit for the company, a condition for the company to diversify businesses to facilitate the sustainable development company as well as to create barriers for new enterprises investing in this market Based on the advantages of raw materials, technology, depreciation costs, and convenient transportation location, the company can make products at the lowest production cost as compared to most competitors So, the company selects competitive strategy by always selling products at competitive prices for the sake of clients and caring for the interests of customers The company always share profits with customers as the customer decide the existence of the company Product - 59 - pricing policy always sticks to the selling prices of competitors and it is usually equal to or lower in all situations, aiming at creating trust in the quality and price for farmers 3.4.4 Market expansion strategy: - Expanding domestic market: At present, the company's products are sold over 45 provinces nationwide In the coming time, the company will improve distribution channel model, in which each province will build from 01 to 02 level I general agents; the general agents will distribute to level II agent system and to consumers In each province, the company has 3-5 customer care staff with their interests associated with sales of general agents - Expanding foreign markets: The company is currently exporting products overseas to such as Korea Japan, Laos, Cambodia etc However, the product export of the company has no long-term plan and no plans for market establishment, distribution channel setting up, image creating in foreign markets Currently, mostly are exported at the orders of the partners with no high price and no images to the final consumers The company will develop proposals for exporting products abroad Firstly it will formulate projects bring products to countries that the company has already exported products to and some countries having developed agriculture and close relations with Vietnam 3.4.5 Product promotion strategy: The company are applying various forms of promoting products such as organizing direct media conferences to consumers; free product trial (in areas not using yet); newspaper and magazine advertising such as articles; Voice of Vietnam radio advertising; billboards on major roads, funding programs, advertising on Voice of Vietnam radio, VTV1 channel; participating in the Vietnamese Golden Star Grand Prix or Vietnam strong brands etc - 60 - 3.4.6 Supplying speed competitive strategy: There are two problems of supplying raw material input and providing products to output distributors: In order to have enough raw production material and material reserve, the speed of material supply must ensure the plan Large supply affects the company’s finance and capital which leads to high cost price If material supply is not enough, workers to be off work and there will not be enough products for the distributors Concerning the distributors, of the speed of supply must also comply to plan because if there are not enough goods for distributors, the distributors will sell other products causing the company loosing market If the supply is too much and cash can not be collected, it will affect the finance of the company 3.4.7 HR management strategy of the company 3.4.7.1 Training and capacity development for human resources: The industry characteristic of the company is that it operates in the field of chemical fertilizers In the current market mechanism, the competitiveness is increasing and this activity must be done regularly and continuously - The training demand for workers directly work in production area: To satisfy the increasing number of technical workers every year and replacing retired workers, improving the required quality and reducing production costs annually - The training demand for managers: from production unit heads to the heads and deputy heads of departments, workshop managers and deputy managers, professional staff - The training demand for marketing staff: to satisfy the requirements of market development, marketing - The training demand for the company leaders: to satisfy the requirements for specialization in each division of the company Due to the operation area feature of the company is that it both continuous produces and circulates products nationwide, the company identifies the training in and out the company and for each division In the near future, the company will improve the quality of staff as follows: - 61 - - Training for the line production divisions: Since the company is a business member of the Vietnam Chemical Corporation in which there is a vocational chemical training school (with projects to upgrade it to chemical university) So, the company mainly has training contracts with the school to organize the training for line production staff every year In addition, the company also applies on the job training for engineers with higher skilled workers instructing lower level workers or newly employed workers regularly done in the company Moreover, it also applies coaching - Training for managers, leaders, professional staff: Because the company is a state-owned enterprise, it always focus firstly on the political viewpoint which is usually trained through the specialized political schools in the province or political institute in Hanoi Then the company has policy for higher professional education For example, those having a bachelor degree in economics can study further to master of business administration or master of finance, or those having a high school degree will be upgraded to university degree During the study, the company has policy of funding, promoting after graduation and putting in the company’s succession plan In addition to these kinds of training, the company also applies job rotation with the purpose of letting managers know that different jobs and discovering new factors - Training for marketing staff: This field is difficult and even more difficult in the chemical fertilizers field As the users of fertilizers are mainly farmers across the country while their characteristics are that they are poor farmers, agricultural productivity depends greatly on weather, prices of agricultural products depends on the export price Therefore, the human resource working in this area requires enthusiasm, field works, being close to farmers, being sensitive to market, being honest and loyal to the job In order to train and develop human resources, in recent years the company is following two directions of recruiting of university bachelor graduates specialized in economics, chemical, agriculture; and sending staff to professional capacity building in universities Besides these trainings, the company - 62 - also applies the coaching forms through thematic courses which don’t take too much time but are very practical 3.4.7.2 Salary and compensation The Ninh Binh Phosphate Joint Stock Company has made a lot of efforts in salary and compensation for staff However, in order to fit the actual present situation, the company should have certain adjustments They are: Firstly: To have an accurate payment for workers, the company needs to improve work targets The work target system that the company used before was no longer suitable to the actual situation This was due to some technology production lines of the company has been modernized So, sometimes the salary does not reflect the actual quantity and quality of the workers The problem arises is that the company needs to rebuild a suitable work target because this is the basis for calculating wage and salary unit price accurately The more accurate the unit price is, the closer to reality the salary is Therefore, the company should improve the work target calculating method, strengthen a labor work force working to targets, monitor and evaluate for appropriate adjustments Secondly: To have fairer payment for workers, the company should pay attention to the job analysis and performance evaluation Completing job analysis and performance evaluation is to properly and accurately assess the contribution of workers Only when this is done well can the salary tool be used really effectively Job analysis requires the company to have specific and clear job description As regards to assessment methods, the company can apply the highly scientific and systematic assessment methods like combining balance scorecards pair comparison The content of these methods is very easy to understand and apply Compensation tools - Increasing the bonus to make it become really more attractive, especially when the salary policy still have many shortcomings, changes and living cost is increasing - 63 - - The company needs to study and formulate bonus policy specifically and clearly, and more reasonably; it needs a more accurate assessment of the performance quality of workers besides the assessment based on the working days to consider the bonus To classify workers closely and specifically, the company may use the monthly A, B, C voting standards as follows: - For production workers, sales staff or line workers: + Number of working days: Type A: Working more than 22 days per month Type B: Working from 18 to 22 days per month Type C: Working less than 18 days per month + Productivity: Type A: Completing 100% or more of target Type B: Completing from 90% - 99% of target Type C: Completing under 90% of target + Product Quality: Type A: Quality of products made from 98% or more Type B: Quality of products made from 95% - 97% Type C: Quality of products under 94% - For indirect employees: + Number of working days: similar to what applied to direct employees + Completion of the work: Type A: Outstanding completion of work Type B: Satisfactory completion Type C: No completion + Attitude - responsibility: Type A: High Type B: Average Type C: Low Score for each rate: - 64 - Type A: points Type B: points Type C: point Determine rate of each person then calculate total score achieved After that calculate bonus for each person according to the formula of: Bonus of employee i = Total bonus fund allocated Total score of all employees in the company Total score rated for X employee i With the bonus allocation application as above will have effect in timely giving workers incentives, encouraging them to not only ensure working time but also improve the quality of work and be responsible for the job - The company should expand more forms of bonus For example, in addition to the bonus for saving raw materials, there can be another bonus for reducing product defect rate in the production process This will make workers more careful and pay more attention at work and therefore the product defects will decrease significantly - Bonus assessment time should be more flexible It can be conducted monthly to timely encourage the spirit of individuals and teams having good achievement and it should not wait until the end of the quarter or year as it will reduce the spiritual encouragement for employees 3.4.7.3 For benefit - welfare tool Benefits and welfare are offered by the company quite thoughtfully and completely So far, the use of this treatment has brought good results Therefore, the company should continue to promote the effectiveness of this tool Company should increase allowances to encourage staff more This will speed up their work completion and help the company to meet or exceeded targets The company should apply some allowances such as expensive living cost allowance, - 65 - away from home allowance For those having disadvantages, the company should have a small allowance to help them overcome difficulties and be assured at work Company should have more policies concerning staff’s children such as awards for encouraging children to have better academic achievement, giving gifts on occasion of the first of June This shows the interest of the company not only in the staff but also in their families In response, the staff will stick to the company, be more assured at work when their children are also taken care of Then they can orient their children’s career, show them their experiences accumulated and summarized during their working process However, in order to avoid budget deficits, wrong expenses the company should control more closely the expenditures so that there will be no either waste or tightness, ensuring appropriate and adequate expenses and unity in the company 3.4.7.4 Improving the working environment and conditions for employees in the company In the immediate and long term, improving the working environment is always necessary because it gives employees comfort and safety in mind when working Here after are some solutions to improve the working environment and conditions in Ninh Binh Phosphate Joint Stock Company: - Creating a quiet, harmonious and refreshing working layout with enough light; streamlining working areas of production workshops and and the workplaces of the office building; using appropriate materials to reduce the noise of machinery; planting more trees; using pastel color in accordance with working frame to give comfortable feelings to employees - Gradually investing and upgrading, repairing and building new workshop system and other departments so they will be wider and more comfortable - Investing in modern technical machinery, equipment and material for the processing workshops as well as functional departments to help them get the job done better For example, equipping the office block with computers with Internet - 66 - connection, funding employees to learn how to use and exploit information on the network The company can further set up internal network or website to create favorable conditions for operation management and administration - Constructing working and break time reasonably: arranging internal between work and break to ensure labor productivity and workers health It is also necessary to further strengthen labor disciplines, consolidate the work routine like strict regulations and control for work start and ending time to avoid late show-up and early office closing - Organizing and communicating work safety and protection to each employee in the company so that they have knowledge about occupational safety Providing sufficient personal labor safety equipment like clothing, shoes, gloves and other safety equipments when working - Conducting surveys on staff opinions in the company to find out the wishes on working conditions and environment then specifying solutions clearly 3.4.7.5 Developing healthy culture and atmosphere in the company - The main purpose of this activity is to improve and strengthen the relationship among individuals and between individuals and the teams To achieve that, the company should focus on applying some of the followings: Successful implementation of democratic policy to facilitate employees in expressing opinions on management activities, policies and regimes of the company through congress, meetings between the management board with representatives of workers Building culture and environment in the company like holding company's tradition day through which to communicate the community sense, highlighting the pride and commitment of workers with the company Focusing on developing union activities, constructing and developing Communist Party activities to help facilitate the excellent workers to join the Party In the work, teams can be formed among workers so they can mutually share, help and learn experiences At the same time, the organization of cultural and art - 67 - exchange activities should be enhanced between the department and workers to contribute lifting up their spirit – In the job To motivate employees through the job, the company can apply some of the followings: Paying attention to the desires of workers about their job because everyone feel excited in certain tasks The company should explore and try to arrange the desired tasks to them by surveying workers’ feedback on how they enjoy their current job and whether they have any wish to change Being to use the right capacity of each worker, appointing them with jobs in accordance with their ability, interests and aspirations, enabling them to improve their capabilities and increasing abilities For example, finding out which job they like best with new employees For longtime employees, continuing to find ways to maintain their interest at work through the assigning new tasks and new challenges Allocating labor not appropriately will lead to unwanted consequences Facilitating young worker teams in particular and workers in general to have opportunity to be promoted in their career Assigning clear tasks and responsibilities to improve the responsibility of employees toward work as well as to control more easily The company management should regularly monitor, urge, remind, take interest, share and solve the difficulties that workers face with in their work, through which encouraging of the working spirit of workers while detecting competent people for training plans and developing their ability 3.4.7.6 Recruitment: To expand the scale and improve efficiency of production and business, the company should have a qualified and expertise work force Therefore, recruiting people with capacities and qualification is necessary It is essential that the company needs to build their own job descriptions, recruitment procedures and - 68 - regulations in accordance with the company characteristics that it is both producer and trader 3.5 Strategy implementation: to maximize the strategy effects, the company should have a specific and in time plan to implement - At the beginning of 2010: Assigning tasks, keeping target control, enhancing personal responsibility of engineers, technical staffs - Establishing working groups, closely monitoring the targets of competitors, designing to improve furnace productivity, reducing production costs - In first quarter of 2010, working with suppliers, strengthening relationships in promoting financial investment and business cooperation for mining investment and ore mining for phosphate production - Promoting marketing activities, expanding domestic and regional markets; maintaining direct communication program, continuing advertisment on VTV1 - Maintaining the evaluation and making timely adjustment, maintaining solutions to achieve the strategy goals to ensure the business growth of 15% per year 3.6 Strategy evaluation and checking - During the the implementation of those strategies above, it’s necessary to make frequent strategy evaluation and checking A strategy checking process should be built with the content, criteria for evaluating and checking, and quantifying performed results - Comparing and evaluating the results of strategy implementation - Identifying the causes for distortions, timely adjusting and finding remedy 3.7 Limits of the research and research orientation in the future - During the research, due to the limit of time, accurate data and information about the current fertilizer market demand in Vietnam, so it somehow affects the accuracy of the strategy (such as investment strategy to enhance the production capacity) - 69 - - Marketing efforts in the field of fertilizer production and trading is very special The laws on of fertilizers in Vietnam is not strong enough for enforment so fake products are flooding the market This affects strongly the strategy planning, implementation and marketing as well - Input material policy of melted phosphate is completely domestic available These suppliers are monopoly providers who depend on government policies which affect much to the efforts of implementing the company strategy For example in 2009, despite of economic recession, government policy stipulates that coal price is determined by the market price So the coal price has risen by 95% as compared to the price early 2009 - In the future, Vietnam economy integrates deeper in the market economy The strategic planning and implementation in each period is very important This report will be more meaningful in helping the company to figure out the way to go in the coming period of 2010-2020 More studies, evaluation and decision should be made for early application in practice 3.8 CONCLUSION The business strategy for the period of 2010-2020 for Ninh Binh Phosphate Joint Stock Company is very necessary and extremely important because the strategy has identified the road and means to achieve the goal that by 2015 the company revenue will be more than VND 1,000 billion and it also helpt to implement the company's mission: NIFERCO is the leading supplier for plant livelihood in Vietnam However, in the development progress of the company, the company still can find out another and new way to achieve set objectives e.g producing others types of fertilizers like organic and leaf obsobtion fertilizer etc The group looks forward to receiving the comments from the teachers and friends to make this report more completed and could be applied in practice sooner and more efficiently - 70 - REFERENCES Associate Prof PhD Nguyen Thi Lien Diep, Pham Van Nam (2006), Business Strategy and Policy, Labor – Society Publisher; Associate Prof PhD Nguyen Thi Lien Diep (2005), Management, Statistical Publishing House; Associate Prof PhD Dao Huan Duy (2006), Management in the globalization, Statistical Publishing House; Associate Prof PhD Ngo Kim Thanh (Editor), Assoc TS Le Van Tam (Co-editor) (2009), Strategic Management Textbook; Business report Ninh Binh Phosphate Joint Stock Company in 2006, 2007, 2008; Michael E Potter (1996), "Competitive Strategy", Science and Technology Publishing House, Hanoi Phillip Kotler (1999), "Marketing Management", Statistics Publishing House, Project proposal for developing Vietnam chemical industry up to 2010 (2020 period included) (Approve and attached with the Decision No 343/2005/QD-TTg December 26, 2005 of the Prime Minister); Websites: - Website of the Vietnam Chemical Corporation: www.vinachem.com.vn; - Website of the General Statistics Office: www.gso.gov.vn; - Website of Agriculture Newspaper: www.nongnghiep.vn - 71 - [...]... capital use efficient 2.1.7.4 Financial ratios analysis: a Liquidity: The liquidity of the company is increasingly better for 2 consecutive years with all short-term debts of the company are ensured with assets of the company, specifically: Table 2.3 Table on liquidity ratio I Liquidity ratio Short-term liquidity Quick liquidity Current liquidity 2006 1.63 1.04 0.03 2007 1.80 1.26 0.25 2008 2.30 1.39 0.22... capital structure has changed significantly with the trend that equity making up larger portion than liabilities (in 2006 liabilities/total capital rate was 58%, equity/total capital rate was 42%, in 2007 liabilities/total capital rate was 53%, equity/total capital rate was 47%, in 2008 liabilities/total capital rate was 42%, equity/total capital rate was 58%) Based on the data, we see that the short... 2.1 Overview of Ninh Binh Phosphate Joint Stock Company - The international transaction name (company brand name) is NIFERRCO - The company has registered exclusive logo which is certified by the Intellectual Property Department of the Science and Technology Ministry in paper 2.1.1 History and development of the company The Ninh Binh Phosphate Joint Stock Company today was previously the Ninh Binh phosphate... more (2.2 times per year in 2006, 2.5 times per year in 2007, 2.85 times per year in 2008) c The profitability ratios: Table 2.5 Table on profitability ratio III Profitability ratios ROA (%) ROE (%) EAT / Revenue(%) 2006 9.84 23.62 4.49 2007 12.96 27.49 5.17 2008 40.96 70.14 14.36 The profitability ratio of the company has increased over the years, especially in 2008 it has increased sharply as the company... functional areas and business areas Whatever the level is, strategies all complies with the following basic process: - 13 - Company level - Analyze environment - Define tasks and objectives - Phân tích lựa chọn chiến lược- Analysis to select strategy - Thực hiện- Implement - Kiểm soát- Control Information Business level - Analyze environment - Define tasks and objectives - Analysis to select strategy -... is capable of competing with cost strategyy 2.2.4 Current capacity and main products of the company Melted phosphate (FMP): 300,000 tons / year Assorted multi-nutrient NPK: 150,000 tons / year The products are manufactured according to the National standards in conformity with the international standards and regulations Current capacity is only sufficient to meet the current demand In the future in... of Directors is Deputy Director - Comments on the management of the company are that it is compact, all members are inside people in the organization so in operating company, there are many advantages as well as limits such as the time for the company management and concerns over long-term strategy is little, the access possibility to the new things outside is still slow, the ability to attach the work... course, it does not mean that other crops don’t require using inorganic fertilizer It is very necessary but the capacity is limited, so people must have to prioritize major crops first (to ensure national food security, creating large goods for export .) Therefore, when the investment ability of farmers grows, the crops being fed with inorganic fertilizer will be further expanded and thus the demand of... are two types of objective: long-term and short term The objective is either long-term or short term depending on the period The short term objective tends to be completed within a year while the one taking longer is the long-term goal Long-term objective: It is the target that shows the desired results in a long period of time Longterm objectives are usually set up for the issues of: profitability, productivity,... Similarity: providing nutrients to plants with a similar concentration of equivalent P2O5 from 15-17% + Difference: The difference of melted phosphate product as compared with other phosphate is the prominence of the product – Melted phosphate is alkali so it can reduce acid in soil very well In Vietnam, 80% of the population are farmers who live on agriculture, 80% of agricultural land is salty and