Luận văn MBA chiến lược kinh doanh tại công ty cổ phần tư vấn đầu tư xây dựng hưng khánh

Subjects of Research: Topics to deep analysis, evaluation and give strategic direction to build the company based on the generaltheoretical construct of the business strategy Scope of r

LUẬN VĂN THẠC SĨ – MBA

Luận văn MBA Chiến lược kinh doanh tại công ty cổ phần tư

vấn đầu tư xây dựng Hưng Khánh

THESIS TITLE

BUSINESS STRATEGY CONSULTING COMPANY STOCK INVESTMENT IN THE CONSTRUCTION OF HUNG

KHANH

TABLE OF CONTENTS Acknowledgements Table of conntents List of Abbreviations List of tables List of figures, graphs INTRODUCTION 1 The necessity of a Business Strategy 6

2 Object and scope of study 7

3 Research Methodology 7

4 Structure of the thesis 8

CHAPTER 1: GENERAL THEORY BUSINESS STRATEGY 1.1 Concept and the role of specific business strategies put in three business 9

1.1.1 Concept of business strategy 9

1.1.2 Characteristics of business strategy 10

1.1.3 The role of business strategy 11

1.2 Process of strategic management of business 12

1.2.1 Situation Analysis 12

1.2.2 Building strategy 12

1.2.3 Implementation of the strategy 13

1.2.4 Assessment strategies 13

1.2.5 Require the construction business strategy 13

1.3 Identify tasks and system strategic objectives 14

1.3.1 Strategic tasks 14

1.3.2 System strategic objectives 15

1.3.3 Principles when determining the target 15

1.4 Analyze the business environment of enterprises 15

1.4.1 Macro environmental analysis 16

1.4.2 Environmental analysis sector (industrial work environment) .19

1.4.3 Environmental analysis of enterprises 21

1.4.4 Environmental analysis of international businesses 24

1.4.5 Matrix of opportunities and risks 25

1.5 Distinguish types of business strategy 27

1.5.1 The overall business strategy 27

1.5.2 The business strategy division 32

1.6 Methods of analysis, selection strategies 35

1.6.1 Market share growth matrix BCG 36

1.6.2 Matrix McKinsey-GE (General Electric) 38

1.6.3 SWOT analysis and combined strategies 40

CHAPTER 2: ANALYSIS OF STRATEGIC FACTORS COMPANY INVESTMENT CONSULTING CONSTRUCTION HUNG KHANH 2.1 Analyzing and evaluating the production and trading of shares of the Company Consultant Investment Construction Hung Khanh .42

2.1.1 Process of formation and development company; Business activities, objectives and scope of activities 42

2.1.2 Business activities, objectives and scope of activities 42

2.1.3 Organizational structure 43

2.1.4 Products the company is manufacturing and trading 47

2.1.5 Evaluate performance of production and business of the Company 47

2.2 Analyze the business environment of the company 51

2.2.1 Macro environment .51

2.2.2 Industrial work environment 59

2.2.3 Internal environment 67

2.3 Integrated analysis environment and form matrix 84

2.3.1 Market share growth matrix BCG 84

2.3.2 SWOT matrix 87

2.3.3 Matrix MC Kinsey 89

CHAPTER 3: SOME OF STRATEGIC PLANS AND SOLUTIONS FOR BUSINESS ACTIVITIES PRODUCTION COMPANY'S STOCK INVESTMENT CONSULTING BUILDING HUNG KHANH (PERIOD 2010-2015) 3.1 FACILITIES CONSTRUCTION STRATEGY 92

3.1.1 Long-term goals of the company .92

3.1.2 The immediate objective of the company 94

3.2 THE STRATEGIC BUSINESS GENERAL 95

3.2.1 Growth strategy focused .97

3.2.2 Strategy to build high-quality products .99

3.3 THE DEPARTMENT OF ENERGY STRATEGY .105

3.3.1 Improve the quality of human resources .105

3.3.2 Promote marketing activities 113

3.3.3 Improving sales performance .121

3.3.4 Strengthening research and development 122

3.3.5 Investment in technology renovation 123

3.3.6 Enhance the ability to mobilize capital in production and business 124

CONCLUSION 125

REFERENCES 127

LIST OF TABLES

1 Table 1.1: The variables measuring competitive strength

2 Table 1.2: Variables measuring the attractiveness of the market

3 Table 2.1: The works of some of the 2008

4 Table 2.2: Results of business of the Company period 2004-2008

5 Table 2.3: Total of business environment

6 Table 2.4: Total of opportunities and challenges

7 Table 2.5: the situation of labor structure of the company

8 Table 2.6: Effective use of capital of the Company

9 Table 2.7: The key financial indicators

10.Table 2.8: Structure of machinery and equipment of the

Company

11.Table 2.9: Total of strengths, weaknesses of the company

12.Table 2:10: The rate of growth and market share relative

products business of the Company

13.Table 2:11: The power business of the Company

14.Table 2:12: attraction of industry

15.Table 3.1: Standard staff and senior management of the

LIST OF FIGURES, GRAPHS

1 Map 1.1: Simulation of the business environment of the business

2 Map 1.2: Model of five forces of M Porter

3 Map 1.3: Matrix opportunity

4 Map 1.4: Matrix risk

5 Map 1.5: Matrix market share growth BCG

6 Map 1.6: Matrix strategic Mc Kinsey

7 Map 1.7: SWOT Matrix

8 Map 1.8: Establishments selected business strategy

9 Map 2.1: Structure of Production Joint Stock Company Consultant Investment Construction Hung Khanh

10.Map 2.2: Matrix BCG growth share of the company

11.Map 2.3: Matrix Mc Kinsey apply to companies

INTRODUCTION

1 The necessity of a Business Strategy

In terms of our economy transition to a market economy,businesses have a polarized, competition occurs increasingly bitterand more fiercely To survive and thrive, businesses need todetermine for themselves the right strategy, because if there is nostrategy or strategic mistakes are sure to get the failure

Operation of enterprises in market economy is to invest and usethe resources to win war with the rival demands of the market Thepurpose of the business activities in the market economy is toachieve high efficiency as possible a long way Performance of theenterprise is the result of correlation, comparison between thebenefits derived from activities of the enterprise with the resourcesmobilized, used for the benefit For business, develop strategiesappropriate means is especially important, the strategic directionand adjust the strategy is timely basis to bring huge benefits forenterprises

In the context of globalization market, ever-changingtechnology, competition increasingly fierce, more than ever thestrategy increasingly become a crucial factor With the scarcity ofresources is increasing, the needs and tastes of the consumer societymakes changing business environment of enterprises increasinglycomplex and contains many risks To survive and thrive, businesses

Strategy is a special plan , all organizations will need to planactivities For businesses, planning is the first functional system ofmanagement functions to achieve the goals set out by theorganization

Strategic planning must consider many factors outside objectivityand subjectivity within the enterprise, analyzing system informationcan be used for planning activities of the enterprises in the shortterm and long-term focus all efforts and resources on the target sothat the most effective, cope with real situations to, adapt to change Corporation Consultant Investment Construction Hung Khanh(The company) is a unit in the construction industry; the first year ofoperation, the company has undergone several tests, there aresuccesses and failures also; to present the company has achievedcertain achievements Reality has proven, if not determine a correctdevelopment strategy, enterprises can themselves are working onthe pitfalls can not be drawn, leading to business sa situation worseand even bankruptcy So to continue to stand firm in the market andadapt to the changes constantly happening in the businessenvironment requires companies to build yourself an appropriatestrategy

Derived from the importance of building strategic business withthe needs of JSC Consulting Constructing Hung Khanh in strategicplanning; Group 7 we learn and choose topics "Building strategic

Corporation Advisory Constructing Hung Khanh period 2010-2015"who wish to choose a company with the right directions in the nextstage in the future

2 Object and scope of research

Manipulate the theory and methodology of the business strategy ,essay shows the argument to develop strategies for the CorporationConsultant Investment Construction Hung Khanh period 2010-2015

Subjects of Research: Topics to deep analysis, evaluation and

give strategic direction to build the company based on the generaltheoretical construct of the business strategy

Scope of research:

- The problem of strategic reasoning of the business

- The base formed a strategic business

- Develop strategies for companies in the short term and long-termand solutions, specific measures to implement strategy

3 Method Research

The group made research topics based on the knowledge learned,based on primary data collected in the company for analysis,evaluate the entire process of production and business activities ofthe Company Stock Investment Consultancy Construction HungKhanh

Also use methods such as : statistics, synthesis, analysis,comparison, forecasting for analysis and make assessment strategies

Chapter I: General Theory of business strategy.

Chapter II: Analysis of strategic factors Corporation Consultant

Investment Construction Hung Khánh

Chapter III: Some oriented strategies and solutions for

production and business activities of the Company Stock InvestmentConsultancy Construction Hung Khanh (Period 2010-2015)

CHAPTER 1 GENERAL THEORY OF BUSINESS STRATEGY

1.1 Concepts, characteristics and role of business strategy in the enterprise

1.1.1 Concept of business strategy

Business strategy is more interested economists andresearchers have come up with many different definitions of the

- The decisions, actions or plans associated with each other, isdesigned to draw out and implement the objectives of theorganization

- As a result of the process of building strategies

- The art of building competitive advantage

- A set of decisions and actions toward the goal to the capabilitiesand resources of the organization to meet the opportunities and

- By Alfred Chandker "strategy encompasses the objectivesassigned to the basic long-term industry, and how the selectionprocess of action and allocate resources necessary to carry out thatgoal"

- Source Wiliam.J.Gluech: "Strategy is a plan to bring uniformity,comprehensiveness and coordination designed to ensure thefundamental goals of the business is done."

Also business strategy or competitive strategy also defined

- Market products: business opportunities depends on its products,

markets it serves, the competition that it can confront or evade, and

- The level of investment: the ability to choose the following

options: either invest or expand investment market entry product, orinvest to maintain the current position or reduce the investment towithdraw or liquidation to close a business

- Strategy functions: how competition might accrue to one or more

of the following functions: product strategy, strategic position,pricing strategy, distribution strategy, manufacturing strategy,strategic public information technology, strategic segmentation,global strategy

- Property strategy and capability strategic capacity strategy is

remarkable aspects of the business Strategic assets, the strength ofthe business resources in comparison with other competitors Whenthe strategy should pay attention to costs as well as can create /maintain assets and capabilities as the basis for long-termcompetitive advantages of enterprises

- The allocation of resources: financial resources and non-financial

resources such as factories, equipment, people all have to beallocated Decided to allocate a key element for the strategy

- Effects between the United business: only those companies

achieve the same effect United have remarkable advantages incomparison with those companies to ignore or exploit the effects ofthis same half

Overall, the strategy is a set of actions and decisions relatedclosely to help organizations achieve the objectives set out, and itshould be built so take advantage of the strengths of the includingthe resources and capacity of the organization as well as to consideropportunities and challenges of the environment

Business strategy is seen as a principle, the guiding principles

in business So businesses want to succeed in business, aprerequisite to have business strategies or organization make goodstrategies

1.1.2 Characteristics of business strategy

Although there are many concepts and approaches of differentcategories of strategies song features basic business strategy is theconcept of relatively uniform The basic characteristics which are:

+ Strategy + business is computer oriented in a long time, itmade the target, the direction of business for each industry specificproduct the same time clearly defining the basic tasks, solutions and

+ Strategy + business flexibility, flexible, because businessstrategy is built on the basis of the market predicts that the futuremarket is always fluctuating For appropriate strategy, right, helps

+ Strategy + business is a continuous process from stage tostage of construction implementation, inspection and supervision.

+ Strategy + business is always with the thought process towin victory in the competition Business strategy formulation andimplementation is based on the findings and take advantage ofbusiness opportunities, the comparative advantage of the business toachieve higher business performance

+ All important strategic decisions in the process of buildingand organizing the implementation, evaluation and control strategiesare focused on senior management team to ensure the standards oflong-term decisions, the confidential information in competition

Thus from the concept and characteristics, we can understand

a simple and specific: "Business strategy is the process ofdetermining the overall target enterprise development and use ofsynthetic technical factors, economic organizations and business towin the competition and achieve objectives "

1.1.3 The role of business strategy

Market economy is always fluctuations , to survival anddevelopment require companies to adapt to such fluctuations.Modern business management that can not survive is with themarket change if businesses do not have a business strategy anddevelop existing properties and can attack Only on that basis,enterprises discovered the need to take advantage of opportunities orthreats may occur for a book to suit you Lack of a proper businessstrategy may lack the initiative and attack, lack of take care ofconstruction and development strategy, the enterprise can notoperate production business and the economic efficiency even inmany cases led to the bankruptcy

Business strategy to help businesses identify future directions

to reach by his own efforts; help enterprises determine thefundamental goals should be achieved in each period and should bethoroughly consistent in all levels, all areas in business activities, inorder to exploit and optimize use of resources, promote theadvantages and seize opportunities to gain advantage incompetition

Besides , the process of developing business strategies on thebasis of a continuous monitoring events occurring both inside andoutside the enterprise understand the trends of the markettransformation; along with developing implementation of businessstrategies will help companies adapt to the market, and even changethe operating environment to dominate the competitive positions,

achieve higher profit, increased labor productivity, improved of theenvironment, improve the image of the enterprise market

1.2 Process of strategic management business

In the process of strategic management, the management made

a series of activities as follows:

1.2.1 Situation Analysis

Before deciding on the direction or appropriate responsestrategies need to analyze the current situation Analyze thesituation requires consideration of organizational context, theenvironmental perspective outside and inside the organization:

- The body of internal factors within the enterprise: strong or weak

- The environmental factors outside the business: opportunity or risk

- Strategy functions: the decisions and actions target the short-termconstruction of parts of different functions within an organizationsuch as parts production (manufacturing), marketing, research anddevelopment, human resources, financial accounting, informationtechnology

- Competitive Strategy: the strategy of competitive researchcompetitive advantage that organizations are or want, and look tothe organization that conducted compete in any business or industrycertain

1.2.3 Implementation Strategy

Formation or construction strategy is not enough foremployees of organizations that need to implement the strategy.Implementation of the strategy is the process to the differentstrategies of the organization to implement Measures to make thedifferent levels of strategy are bonding with the constructionstrategies

1.2.4 Review strategies

Final phase of strategic management is the evaluation strategy.All strategies are subject to change future because of factors insideand outside changes regularly Three major activities of this phaseare: (1) Review the factors is the basis of current strategies (2)Measurement of achievement (3) Perform the operation control.Stage assessment strategy is needed because the current successdoes not guarantee success in the future Success always creates

new problems more, organizations have thought meet to pay for thedecline

1.2.5 Requirements when developing business strategies

In the construction business strategy should note thefollowing:

- Business strategy must be linked to the market:

Businesses build business strategies on the basis of investigationand research of market demand and make the most of opportunities,the advantages and resources to produce products with quantity,quality number, types and duration appropriate Can be considered

"strategy must reflect the market to do business" is our motto, is theprinciple of strategic management of the business

+ The construction business strategy to increase the strength of thebusiness, gain competitive advantage in the market

+ Strategy must show flexibility and thus develop strategiesmentioned only general issues, not specific

- When building business strategy must consider the safety ofbusiness, limiting risk to a minimum

- The business strategy should identify key objectives, the businessstrategy and the basic conditions for achieving that goal

- Business strategy must reflect a combination of harmony betweenthe two strategic business strategy includes general issues coveringgeneral, an organized and most decisive and strategic businessdivision includes nature of the problem parts as product strategy,

pricing strategy, marketing strategy, promote strategic

- Strategic business is not a general presentation, which must reflectthe goals specific, feasible for the purpose of achieving maximumefficiency in production and business

A very important problem if only to build business strategy isnot enough because even though the strategy is to first build aperfect if not implemented well, do not turn it into programs andpolicies consistent business with each stage of development willbecome useless, absolutely no value to increase business efficiencyand still suffer the cost of business for this work

1.3 Identify tasks and system strategic goals

1.3.1 Strategic tasks

This is a statement with fixed long-term nature and purpose ofthe enterprise, it distinguishes companies with other businesses Thestatement may be the principle business objectives, businessphilosophy since then identify business products and services,market demand

Content of the strategic tasks that only general issues, therebydetermining the scope of business activities in the field of productand market As set out strategic tasks necessary to pay attention tothese factors: a history of formation and desire of the board, theenvironmental conditions of business, resources available and theability of the business school facilities Strategic tasks to helpleaders identify targets more easily, more specifically, it determines

priorities of the business to assess the potential of each business unitand outlines future directions of the business

1.3.2 System strategic goals

Strategic objective: is to target only specific businesses want toachieve, be derived directly from the function of the specific tasksand more clearly, the weight into the numbers: growth, income levelprofit, sales, market share There are two types of goals: short-termand long term

+ Long-term goal: the overall desired results last thing businesses

want to achieve in a longer period than one year, with specificcontent: the benefit received, productivity, competitive position, hasdevelopment work, community relations, location technology,social responsibility

+ Short-term goal: the results of specific companies expected to

achieve in a cycle, the volume into a number

1.3.3 Principles for determining the target

- Be clear in each stage of development of the enterprise;

- There are computer links, reciprocally, this goal does not interfere

- Must identify priority objectives, which represent the hierarchicalobjectives and tasks set out for businesses in each period

1.4 Analyze the business environment of enterprises

The purpose of environmental analysis is to identify businessopportunities and risks for enterprises, including the macroenvironment and micro (also known as the environmental sector)

That review process of various environmental factors and determinethe influence of chance or risk to the enterprise Judgmentsenvironment (diagnostic) based on the analysis and review ofenvironment from which to take or owned the risks affecting thebusiness

Map 1.1: Simulated business environment of enterprises

(Source: Le Van Tam - 2000, the Catholic strategic management,

Statistics Publishing House)

1.4.1 Analysis of macro environment

3 Production

4 Financial accounting

5 Marketing 6.Routine organizational

- Environment macro

consists of the external

factors that affect

1.4.1.1 Economic Environment

Status of the economy and future trends affecting the successand strategy of the enterprise, the main factor is the growth rate ofthe economy, interest rates, inflation, unemployment, exchange rateexchange rates Variation of these factors will affect business

- Economic growth: Economic development with high-speed

reflects the growth of the market, so will contribute to reducecompetitive pressure Purchasing power of the overall market higherfacilitate business development of enterprises

- Interest rate: interest rate is one element of monetary policy High

or low interest rates have a direct impact to business and marketneeds High deposit interest rates will encourage residential andbusiness depositors led to the liquidity of the market is shrinkingpurchasing power is declining risk for enterprises

- Foreign exchange rates: Foreign exchange rates have a large

impact on the business enterprises in activities related to import andexport

- The rate of inflation increased to control the price, amount of labor

does not own is, threats and increase business

1.4.1.2 Environmental technologies

Technological factors influential to the business strategy ofenterprises and industries Moment is the time when industrialdevelopment should the judgments tend to industrial problems isvery important for the development of enterprises Changes in

technology affecting to the life cycle of products and services The dimension / events in the technology may be opportunitiesfor those companies able to mobilize investment capital, but would

be a threat to the bonding companies were on the old technology

In the development of society, is must surely move to newtechnologies But not so suddenly that businesses are using oldtechnology losses, because: one is the old technology still buyers inthe long run, partly because the business continued to improvetechnologies that; two are difficult to predict the advent of newtechnology, because the new research is very expensive andincomplete; it more often starts from the secondary market; andagain the new technology has tended to create new markets and notencroach current market Therefore, enterprises need to get the righttechnology, to create opportunities for enterprises in developingproducts and services

1.4.1.3.Cultural and Social Environment

For strategic management, cultural factors, social sensitivity,

or change one Lifestyle of the inhabitants themselves rapidlychanging trends introduced the new lifestyle, leading to consumerattitudes change Of higher level, thus increasing demand ofconsumers for high quality, rich category of products will be higher.This is a challenge for manufacturers

Every business enterprise is operating in the culturalenvironment - social constraints Business and cultural environment

- social relationships are close and impact each other back Providesocial resources that businesses need and consumption of productsand services that businesses produce Cultural and socialenvironment can affect strategic decisions such as selecting areasand items, select the brand, color, style, change the channels

Concepts of value and value of life consumption: the concept ofthe value of life will arise on the concept of value and influenceconsumer decisions and purchasing goods declined or reducedprocurement other goods appear as chance or threat for business

1.4.1.4 Natural Environment

Natural environment factors include geography, climate,ecological environment To threaten from climate change asinfluential for business Therefore anticipate the factors of climatechange weather makes business more active in making decisionsabout their products

Natural environment is deteriorating a challenge for mostbusiness enterprises in different fields; the supply of raw materials,energy depletion, increasing pollution levels, adverse weathercomplex, flood drought cause losses Things that make businessexpenses increased due to extra cost, more devices equipped withwaste treatment, taxpayers than as required by environmentalprotection

1.4.1.5 Environmental government, law, politics

Legal factors, political influence development strategies ofenterprises in different directions They can be opportunities for thisbusiness is the risk to other enterprises Policies to encourage moreopen economic sectors involved in producing a business risk to thestate-owned enterprises, but an opportunity for manufacturersbusiness private market participants

Can be seen the influence of government policies for theproduction and business how For example, tax policies: highertaxes will benefit any business, low taxes will encourage business

In terms of Vietnam's businesses in addition to interest tax rate alsoconcerned about the stability of the tax rate Tax rate is not stable itdifficult for the expected long-term business strategy of thebusiness Political stability, complete legal system is always a biginterest of manufacturers business

1.4.2 Environmental analysis sector (industrial work environment)

Customer Supplier

Potential new competitors

The competitors in the

industry

products and services substitution

Map 1.2 : Five forces model of M Porter

(Source: Le Van Tam - 2000, the Catholic strategic management,

Statistics Publishing House)

1.4.2.1 Analysis of existing competitors

The first force in the model of M Porter is a scale competitionamong enterprises have the opportunity to increase price and earnmore profit Competition between enterprises in the industry oftenfocus on the following main contents:

- Nature of competition: among the substitutes for each other to

satisfy a desire the same, ie competition of priorities whenpurchasing the product uses a different set of relationships forrevenue Added; compete in the same category of products;competition between brands

- Pressure in a competitive industry: competitive structure which is

the number and size of companies competing in the same business

If the business is small, no business dominates the structure ofcompetition will be distributed If market demand is hugecompetitive pressure will decrease, in contrast, if market demand,the competition is becoming fierce

- Barriers to exit from the industry: when business conditions

deteriorate in the industry, business difficulties forced businesses toconsider withdrawing from industry stories; costs to withdraw from

the sector to enterprises with losses and losses, even bankruptcy,including:

+ Cost of capital: factories, equipment, technology

+ Direct costs of investment preparation, and administrativeprocedures

+ Social costs: training workers, firing workers

1.4.2.2 Analysis of potential competitors

The potential competitors are likely to enter the enterprisesector in the future, threatening to businesses currently produce.Current businesses often try to prevent potential competitors toparticipate in industry because the market will be fierce competitionover market and profits will be shared, even the location of thebusiness can be change Level of profit potential rivals dependsmainly on the cost of joining high or low branches (barrierindustries), including:

- High initial capital investment the ability to join the industry's new

rivals will be less When you start taking a business, the investormust put a certain amount for procurement of inputs such asmachinery, raw materials, to create outputs Thus if the originalinvestment, the greater the risk the greater the risk, traders want toenter the industry to consider more than when the investmentdecision

- Price advantage: When companies hold high technology for

production supply the products with low cost will have the

advantage in competition Want to keep this advantage, businessesmust always lead in technology, not focusing on businessmanagement, to reduce costs, improve production efficiency andbusiness

- The advantage of label products, goods and services: the customer

was familiar with the brand name is often used in, the cost ofbuilding a brand new goods usually takes more time and cost costs

- Advantages of production scale: a large-scale production, the

average fixed costs for a unit of product decreased, large-scaleenterprises will have a competitive advantage over new competitors

as much

- Legal barriers: are the provisions of the State on the conditions to

participate as a condition of business capital, the equipment, thelevel of the workforce the more stringent regulations willobstructing the business sector to join and vice versa

1.4.2.3 Pressure of Suppliers

Suppliers is likely to be a threat to pressure industry when theyraised prices, limited quantity, not quality assured Enterprisesshould pay attention to the negative impacts from the suppliers.However, providers can only be pressure for businesses in thefollowing cases:

- There are few suppliers industry

- There are few products and services instead

- Have the advantage of specialized products and services

Customers are the main target involved in the marketing ofproducts, identify customers and the impact on customers todetermine the basis of market products, services and investmentstructure needed Needs of customers is one key factor in theproduction and business interests to decide should or should not bemaintained long-term competitive advantage for that product.Ability to pressure customers higher risk of disadvantage to largerbusinesses Customers often pressure for businesses in the followingcases:

- They are the customers who buy large scale

- There are many vendors with a product, there are manyoptions

- Ability to backward integrate to own all or part of theproduction of the product

When customers have the advantage over the seller,indispensable to reduce the price and increase product quality,service, means that profits will decrease

1.4.2.5 The substitute products

Substitute products are not competitive but it can affect theability of the market is profitable threat to business Need specialattention to the product replacement likely to improve, change due

Most new replacement product is the result of the explosion oftechnology Want to achieve success in their business enterprisesneed to spend the resources necessary to develop new technologies

in development strategies

1.4.3 Analysis of internal business environment

Internal business environment is all that belongs to theenterprise itself, directly related to production and businessoperations of the business to identify strengths and weaknesses ofthe enterprises that provide the basis for strategic planning andimplementation of business strategy Object to be considered are themain factors occur inside the enterprise, the control of the business.The main factors, namely: human resources, finance, accounting,marketing, information systems, organizational system

1.4.3.1 Factors of human resources and organizational

Human resources play a role very important for the success ofthe enterprise People provide input to planning objectives, thecontext of environmental analysis, selection and implementation oftest strategies of enterprises Only people working efficiently createeffective new business, elements of human resources including:

- The leadership, professional qualifications and experienceleadership

- Organization and management accordingly

- The skill level, from the morality of the staff employees, the policystaff flexibility and efficiency

Work organizations is extremely important, it has a positiveimpact or interfere with the implementation of program productionand business activities of an enterprise Organizational factorsrelated to level of ability and experience of leaders at all levels,making the business become dynamic and adapt to thetransformation of the market The construction of the folds held areasonable, flexible and able to encourage staff works with highestyield, which was attached to a business, built up a healthy corporateculture

1.4.3.2 Factors research and development

Research development business can help companies maintainsolid leadership position in the industry or vice versa Factorsresearch and development production, including: experience,competence scientific capability acquisition and application ofscientific and technical achievements and production to meetdemand increasing market

Research and development department to regularly monitorthe environmental conditions of business, information technologyinnovation, management Help system is updated and

supplemented the information flow to a new strategic innovation intime technology

1.4.3.3 Factors financial accounting

Functions of financial accounting department, includinganalysis, planning and implementation of the inspection work of thegeneral financial companies, set up the financial statements andreflect the financial situation of the general company in a timelymanner Division financial accounting impacts related directly to allareas of activities, with main responsibilities related to financialresources, ability to mobilize short-term capital, long-term programsinvestment and development of the company, control financialexpenditure regime, the cost of capital, ability to control price, plancost, financial costs and profit

1.4.3.4 Factors of production, technical

Production activities associated with the creation of products,

it affects the success of the business, which includes issues related

to technical production, production technology, productivity, ability

to control production costs, inventory, supply of raw materials.Factors of production, technical capabilities that meet the needs ofquality and quantity as required by the market, controlling theproduction costs are important, it relates to pricing policy of goodsproducts

1.4.3.5 Factors Marketing, consumer products

Marketing department of the business is very important in theorganization of consumption goods, which studied the needs of themarket to set out policies on product, price, distribution channels,improve production bring new products to market, supply goodsaccording to a large scale, collect market information to identifyappropriate policies for enterprises

Consumer policy research and marketing strategy is common

to pay attention to the following aspects:

- Most forms chemical products, product structure, quality,product life cycle

- Organizing activities of the channels, the ability to supplylarge scale

- Pricing policy, promote communication, sales promotion,labeling products

- After-sales service, customer care

1.4.4 Analysis of international environmental business

Today, the trend of globalization affect the production andtrading of domestic enterprises, especially for those sectors related

to import and export The change of international environment oftenmore complex, more competitive, requiring businesses to identify,analyze from which to create opportunities for themselves orminimize the risk that all for chemical, chemical area offers Vietnam's WTO accession ASIAN and create moreopportunities for products with a competitive advantage, but that's

the next challenge for businesses Vietnam could expand the exportmarket to many countries, but the challenge of competition will bemuch larger Trade liberalization is also a threat to themanufacturer's business in Vietnam

Businesses do not offer directly with foreign countries stillneed the ability to affect the calculated international environment as

it affects indirectly to the business environment through macro andmicro

- Influenced economic environment: every fluctuation of the

economy in the world are certain to affect the economy of thecountry in varying degrees The economic development of thecountry affects the development of other countries and relevant tothe world economy

- Influenced political environment law: On the basis of

diplomatic relations between the government will look into theexchange trading system on the international market Any changes

in diplomatic relations can lead to adjustments in economic policyand foreign policy adjustments that work directly or indirectly to thebusiness

- Influences of environmental technology: Progress of science

and technology world to create new working tool or new productsaffect the environment in water technology

- Social factors, natural abroad can affect whether the

business enterprise does not directly work on the international

market, such as oil drilling difficulties, the world oil price increasethe cost to business in the country increased Foreign customers arealways parts of the potential customers that you have a potentialgrowth opportunity, the enterprise must consider Enterprises alsoneed to consider foreign suppliers as potential customers, especiallywhen the cost benefit Any foreign enterprise which can be launchedsubstitutes; therefore need to track developments of products andstrategic capabilities of the foreign company operating the field

1.4.5 Matrix opportunity and risk

Method of matrix helps managers to identify the bestopportunities and the worst risk, and balance between elementsstrong, weak, opportunities and risks so that the most beneficial.This method is based on the principle of the limited resources ofeach enterprise, thus to delimit the elements in order of priority Themodel is based on the expected value, calculate d using the value ofthe expected results of the probability can occur

- Opportunity matrix

Map 1.3: Opportunity matrix

HIGH

AVERA GE LOW

low priority

Medium priority

Impact of chance

high Average Low

(Source: Le Van Tam - 2000, the Catholic strategic management,

Statistics Publishing House) Evaluate the impact of opportunity depending on theimportance of chance and probability that enterprises can takeadvantage of opportunities If the opportunity in the upper leftcorner of the high priority, if the lower right corner, the domain islow priority, also in three cells, the cross-table priority is medium

Risk matrix: Matrix impact assessment of risk and probability

that enterprises encounter danger is high or low level of risk tobusiness from insurance to poor light

Map 1.4: Risk matrix

(Source: Le Van Tam - 2000, the Catholic strategic management,

Statistics Publishing House)

1.5 Distinguish types of business strategy

We can distribute all kinds of business strategies into twocategories: general strategies and strategy division Strategicoverview of the implementation strategy at the enterprise to buildcompetitive advantage for businesses on the basis of satisfying the

Serious Critical Dangerous Light

Impact of risk

high

Averag e Low

e

requirements of the most senior leaders of the business Strategicpart of the strategy is implemented at the departments of thebusiness functions to accomplish the objectives of the overallstrategy

1.5.1 The overall business strategy

1.5.1.1 Growth Strategy focuses

a Market penetration strategy

To grow in the current market with products currentlyproduced can follow the directions below:

- Increase buying power products: indicated the relationship

between purchase frequency and volume of purchase per trip So toincrease the purchasing power can persuade customers to use aproduct more often or to use each number more

- Involve clients competitors: a marketing strategy for product

policy, price, place and consumer promotion, after sales service

- Acquisitions, mergers competition if new market

opportunities are not attractive, the other company may considertrying to buy off or merged with a competitor in his direct

- Increase the size of the overall market, by making people

ever not consumer products that are genuine business consumer market relatively) began to find those products by meanslegal marketing, stimulus measures

(non-b Strategic Market Development

Inding new markets for consumer products firms that areproducing is very important to expand the ability to consume goodsand products:

- Find markets in the new areas, including finding newdistributors and expanding sales force or open networks consumenew or integration across the company are looking for a differenttarget market

- Find the new target market: find audiences entirely newtarget market currently Also, make development of newconsumption channel or use the new ad medium

- Find out the value of using new products: products withmultiple uses that firms can exploit Each new use of the productcould create a whole new market, in this case marketing campaign

to create a new life cycle of the product

c Strategic product development

Strategic product development including development of newproducts for consumption on the current market or sell to existingcustomers This strategy may be aimed at specific products or allitems of business

- Develop specific products:

+ Improve product features by additional conversion orrearrangement of features, the contents of the old products

+ Improve the quality increase reliability, speed, durability,taste or other features of the product