Luận văn MBA xây dựng chiến lược kinh doanh bán lẻ giai đoạn 2010 2015 ngân hàng thương mại cổ phần VIB

LUẬN VĂN THẠC SĨ Xây dựng chiến lược kinh doanh bán lẻ giai đoạn 2010-2015 Ngân hàng thương mại cổ phần VIB THESIS TITLE BUILDING UP A RETAIL BANKING BUSINESS STRATEGY IN PERIOD OF 2010-2015 FOR VIETNAM INTERNATIONAL COMMERCIAL JOINT STOCK BANK (VIB) CONTENTS CONTENTS LIST OF TABLES LIST OF FIGURES Chapter SOME THEORIES OF BUILDING THE BUSINESS STRATEGY IN DECORATIVE PAINTS COMPANY 13 1.1 Concepts, classifications and the roles of business strategy in the company 13 1.1.1 The concept of business strategy in the Enterprise .13 1.1.2 Clasifying business strategy in the Enterprise 14 1.1.3 The role of business strategy .15 1.2 Content business strategy in the decorative paints company .16 1.2.1 Strategic content for businesses in the decorative paints company 16 1.2.2 The contents of strategies for functional level in the decorative paints industry 20 1.3 Grounds and procedures for building business strategy in the decorative paints company 22 1.3.1 Grounds to build business strategy in the decorative paints company 22 1.3.2 Analytical methods of environmental to build strategies of decorative paints company 23 Figure 1.1 SWOT / TOWS Matrix .25 Figure 1.2 BCG Matrix 25 Figure 1.3 Porter's Five Forces Model 28 1.3.3 The Business strategicplanning process 30 Figure 1.4 The Business strategicplanning process 30 SUMMARY OF CHAPTER 33 CHATER STATUS OF ACTIVITIES IN ICI PAINTS CO., LTD VIET NAM 34 2.1 Overview of ICI Paints Co., Ltd Vietnam 34 2.1.1 Information of the company .34 Figure 2.1 Diagram of ICI Paint Vietnam Co., Ltd Organization System 36 2.2 Analysis, and assessment of the external environment of the company .36 2.2.1 Analysis of external environment of the company .36 Table 2.1 Country Facts in 2009 36 Table 2.2 Economic Indicators .37 Table 2.3 Effect on decorative paint market development 38 Table 2.4 Urban Migration 41 Table 2.5 Drivers of Market Size 42 A change of households classifying criteria based on relative points equivalent to their durables owned: 43 2.2.2 External assessment .48 2.3 Analysis, and assessment of the internal environment of the company .49 2.3.1 Internal analysis 49 Table 2.6 Volume and Value Share of Vietnam Paints Market in 2009 50 Figure 2.2: ICI company Historical Growth 51 Table 2.7 Financial Profit Summary 51 Table 2.8 Real labor wages in the company ICI 51 Table 2.9 Channel of Vietnam Paint market in 2009 59 2.3.2 Internal assessment 59 SUMARY OF CHAPTER 60 CHAPTER BUSINESS DEVELOPMENT STRATEGY FOR ICI PAINT VIETNAM LTD., CO IN THE PERIOD 2010-2015 61 3.1 Summary of bases for business development strategy proposal 61 3.1.1 Vision, Mission and Strategic Intent of ICI Paint Vietnam .61 3.1.2 Applying analysis models to propose business strategies for Company 63 Table 3.1 ICI’s TOWS Matrix .63 Figure 3.1 BCG with external paint products of ICI 66 Figure 3.2 BCG with internal paint products of ICI .68 Figure 3.3 BCG of ICI with other products and services in the paint industry 70 Figure 3.4 Porter's Five Forces Model analysis of ICI 71 3.2 Company business strategy proposal 71 3.2.1 Enterprise business strategy proposal 71 3.2.2 Strategy proposal at functional levels of the Company 75 Table 3.2 ICI’s financial targets 82 3.3 Recommendation to the State and authorities 86 3.3.1 The State 86 3.3.2.Authorities 87 SUMARY OF CHAPTER 88 GENERAL CONCLUSION 89 LIST OF REFERENCE DOCUMENTS .90 LIST OF TABLES CONTENTS LIST OF TABLES LIST OF FIGURES Chapter SOME THEORIES OF BUILDING THE BUSINESS STRATEGY IN DECORATIVE PAINTS COMPANY 13 1.1 Concepts, classifications and the roles of business strategy in the company 13 1.1.1 The concept of business strategy in the Enterprise .13 1.1.2 Clasifying business strategy in the Enterprise 14 1.1.3 The role of business strategy .15 1.2 Content business strategy in the decorative paints company .16 1.2.1 Strategic content for businesses in the decorative paints company 16 1.2.2 The contents of strategies for functional level in the decorative paints industry 20 1.3 Grounds and procedures for building business strategy in the decorative paints company 22 1.3.1 Grounds to build business strategy in the decorative paints company 22 1.3.2 Analytical methods of environmental to build strategies of decorative paints company 23 Figure 1.1 SWOT / TOWS Matrix .25 Figure 1.2 BCG Matrix 25 Figure 1.3 Porter's Five Forces Model 28 1.3.3 The Business strategicplanning process 30 Figure 1.4 The Business strategicplanning process 30 SUMMARY OF CHAPTER 33 CHATER STATUS OF ACTIVITIES IN ICI PAINTS CO., LTD VIET NAM 34 2.1 Overview of ICI Paints Co., Ltd Vietnam 34 2.1.1 Information of the company .34 Figure 2.1 Diagram of ICI Paint Vietnam Co., Ltd Organization System 36 2.2 Analysis, and assessment of the external environment of the company .36 2.2.1 Analysis of external environment of the company .36 Table 2.1 Country Facts in 2009 36 Table 2.2 Economic Indicators .37 Table 2.3 Effect on decorative paint market development 38 Table 2.4 Urban Migration 41 Table 2.5 Drivers of Market Size 42 A change of households classifying criteria based on relative points equivalent to their durables owned: 43 2.2.2 External assessment .48 2.3 Analysis, and assessment of the internal environment of the company .49 2.3.1 Internal analysis 49 Table 2.6 Volume and Value Share of Vietnam Paints Market in 2009 50 Figure 2.2: ICI company Historical Growth 51 Table 2.7 Financial Profit Summary 51 Table 2.8 Real labor wages in the company ICI 51 Table 2.9 Channel of Vietnam Paint market in 2009 59 2.3.2 Internal assessment 59 SUMARY OF CHAPTER 60 CHAPTER BUSINESS DEVELOPMENT STRATEGY FOR ICI PAINT VIETNAM LTD., CO IN THE PERIOD 2010-2015 61 3.1 Summary of bases for business development strategy proposal 61 3.1.1 Vision, Mission and Strategic Intent of ICI Paint Vietnam .61 3.1.2 Applying analysis models to propose business strategies for Company 63 Table 3.1 ICI’s TOWS Matrix .63 Figure 3.1 BCG with external paint products of ICI 66 Figure 3.2 BCG with internal paint products of ICI .68 Figure 3.3 BCG of ICI with other products and services in the paint industry 70 Figure 3.4 Porter's Five Forces Model analysis of ICI 71 3.2 Company business strategy proposal 71 3.2.1 Enterprise business strategy proposal 71 3.2.2 Strategy proposal at functional levels of the Company 75 Table 3.2 ICI’s financial targets 82 3.3 Recommendation to the State and authorities 86 3.3.1 The State 86 3.3.2.Authorities 87 SUMARY OF CHAPTER 88 GENERAL CONCLUSION 89 LIST OF REFERENCE DOCUMENTS .90 LIST OF FIGURES CONTENTS LIST OF TABLES LIST OF FIGURES Chapter SOME THEORIES OF BUILDING THE BUSINESS STRATEGY IN DECORATIVE PAINTS COMPANY 13 1.1 Concepts, classifications and the roles of business strategy in the company 13 1.1.1 The concept of business strategy in the Enterprise .13 1.1.2 Clasifying business strategy in the Enterprise 14 1.1.3 The role of business strategy .15 1.2 Content business strategy in the decorative paints company .16 1.2.1 Strategic content for businesses in the decorative paints company 16 1.2.2 The contents of strategies for functional level in the decorative paints industry 20 1.3 Grounds and procedures for building business strategy in the decorative paints company 22 1.3.1 Grounds to build business strategy in the decorative paints company 22 1.3.2 Analytical methods of environmental to build strategies of decorative paints company 23 Figure 1.1 SWOT / TOWS Matrix .25 Figure 1.2 BCG Matrix 25 Figure 1.3 Porter's Five Forces Model 28 1.3.3 The Business strategicplanning process 30 Figure 1.4 The Business strategicplanning process 30 SUMMARY OF CHAPTER 33 CHATER STATUS OF ACTIVITIES IN ICI PAINTS CO., LTD VIET NAM 34 2.1 Overview of ICI Paints Co., Ltd Vietnam 34 2.1.1 Information of the company .34 Figure 2.1 Diagram of ICI Paint Vietnam Co., Ltd Organization System 36 2.2 Analysis, and assessment of the external environment of the company .36 2.2.1 Analysis of external environment of the company .36 Table 2.1 Country Facts in 2009 36 Table 2.2 Economic Indicators .37 Table 2.3 Effect on decorative paint market development 38 Table 2.4 Urban Migration 41 Table 2.5 Drivers of Market Size 42 A change of households classifying criteria based on relative points equivalent to their durables owned: 43 2.2.2 External assessment .48 2.3 Analysis, and assessment of the internal environment of the company .49 2.3.1 Internal analysis 49 Table 2.6 Volume and Value Share of Vietnam Paints Market in 2009 50 Figure 2.2: ICI company Historical Growth 51 Table 2.7 Financial Profit Summary 51 Table 2.8 Real labor wages in the company ICI 51 Table 2.9 Channel of Vietnam Paint market in 2009 59 2.3.2 Internal assessment 59 SUMARY OF CHAPTER 60 CHAPTER BUSINESS DEVELOPMENT STRATEGY FOR ICI PAINT VIETNAM LTD., CO IN THE PERIOD 2010-2015 61 3.1 Summary of bases for business development strategy proposal 61 3.1.1 Vision, Mission and Strategic Intent of ICI Paint Vietnam .61 3.1.2 Applying analysis models to propose business strategies for Company 63 Table 3.1 ICI’s TOWS Matrix .63 Figure 3.1 BCG with external paint products of ICI 66 Figure 3.2 BCG with internal paint products of ICI .68 Figure 3.3 BCG of ICI with other products and services in the paint industry 70 Figure 3.4 Porter's Five Forces Model analysis of ICI 71 3.2 Company business strategy proposal 71 3.2.1 Enterprise business strategy proposal 71 3.2.2 Strategy proposal at functional levels of the Company 75 Table 3.2 ICI’s financial targets 82 3.3 Recommendation to the State and authorities 86 3.3.1 The State 86 3.3.2.Authorities 87 SUMARY OF CHAPTER 88 GENERAL CONCLUSION 89 LIST OF REFERENCE DOCUMENTS .90 LIST OF FIGURES No Figure No Figure’s Name 1.1 Strategy Types 1.2 Strategy Implementation 3.1 VIB’s Retail Bank Region 3.2 VIB Business Units 3.3 Project team on new business strategy model LIST OF GRAPHS No Graph No Graph’s Name 2.1 Vietnam Retail Banking market 2.2 Customer rate of banking service 2.3 Loan Expansive level 2.4 Vietnam Commercial Joint Stock Bank as per total assets 2008 10 50% of input materials, including raw materials including coloring agent, additives, can and other kinds of wrapping Adjustment of production batch: According to the data of quality control department, 25% of production batches need to be adjusted at least one time before packing The two main reasons are nonstandard viscosity and foam and the inconsistency in the management of materials in accordance with COA standards and material quality Discussion with supplier with stricter requirements for raw materials sources according to the technical specification and stable and consistent quality are recommended Improving the effectivenss of operation and packing: Currently, the effectiveness of packing assembly is 60% compared with the target of 75% This data show the down time for maintaining machines in the packing process is remarkable It is requested to research errors in the operation of the assembly line to improve the effectiveness of operation and packing process 3.2.2.2 Marketing strategy In the next five years, the marketing strategy of ICI needs to pay emphasis on the following stratergies Strategies 2009 Brand Premium 2010-2015 Mega brand Segment High quality perception Aspirational/emotional connection Perfect professional result,Help me find my style, Deliver my Color Simple solution Color collateral vision, Keep up my standard Color consultant Preview Visualization Magazine/Web site/IDs Fashion/Trend/Womanization Seminar/Training Culture and religion 2000 Colours( CP4) Communication Mass (MNI) 3000 Colours( CP5 ) Mass and Segment focus Traditional media New channel: online/digital POSM/shop OOH/Direct marketing 77 Strategies 2009 Activation 2010-2015 Activation Products: ICI needs simplification of products portfoilio and clear 02 brans Dulux and & Maixilite as the below detailed : Category 2004 – 2008 2009 Interior, Exterior, Sealer/Interior, Primer, Putty 2010 – 2015 Exterior, Interior, Exterior, Sealer/ Primer, Putty Sealer/ Primer, Brand Dulux, Glidden, Maxilite,Dulux, Putty Glidden,Dulux, Maxilite Portfolio Farco Maxilite Dulux ,Glidden Duraguard,Dulux; GliddenDulux, Maxilite Exterior Maxilite Interior Dulux 5in1/ Dulux SuperDulux Cover, Duraguard/ Maxilite DuluxEasyclean,Super Dulux,Maxilite, Farco, Putty 5in1, Dulux Putty DuluxDulux 5in1/ Cover,DuluxEasyclean, DuluxEasyclean, Dulux Maxilite, Light&Space, Dulux Putty, Maxilite Dulux Putty, Price: As ICI’s Dulux products are highgrade, the price of Dulux products are high enough to match with its highgrade products ICI never decreases its selling price now and onwards to determine our brand name Given the inflation and market fluctuation, ICI will make periodic and appropriate priceincrease policy, so that customers feel secure about ICI’s products Place: As a leading paint company, ICI has widespread and complete distribution network with 2500 direct and indeirect retailers in Vietnam ICI is ranked the first in terms of distribution channel and number of stores However, ICI should improve its retail agents In fact, almost all of its retail agents sell both various types of paint 78 products and building materials Therefore, it is not professional and fake and imitative products can be integrated in the real and genuine ones, which causes worries to customers ICI should expand its total colour soltution shops for both products and colour consultant and step by step replace or build the modern distribution channel in Vietnam in next years busines goals It is necessary to increase the quantity and quality of tinting machines Currently, ICI has 400 color mixture machines ICI should have 1500 tinting machines by 2015 provided to districts and cities Promotion: Promotion activity is not enhanced as to Vision “The decorative paint leader in Vietnam, forever” ICI should increase expenditure for the activity from 6% of its revenue to 10 % of its revenue between 2010 and 2015 Advertising activities should be remarked with the environmentfriendly feature (green paints ) and focus on building Dulux is becoming mega brand in global & Vietnam Advertisement design should be professional in image quality and message Public relationship activity should be strengthened, especially further interested in activities for communities and cultural and sports events, painting schools, “ I love my city “ campaign… 3.2.2.4 Research and development strategy Based on research results from such models as V SWOT, BCG, Porter, research and development strategy should be focused as follows: Product research and development: According to BCGbased research result, some products of the company should be reduced while some should be promoted as follows: Criteria Product/ Outstanding Reason for reduction market Glidden, feature or promotion Exterior and inetrior Advanced products to to be Super paint top coats in be launching these old reduced or Cover mid tiers Products taken out Outputs products are not favored due to obsolete feature 79 Criteria Product/ Outstanding market feature Reason for reduction or promotion and few colours choice Outputs and selling revenue reduced dramatically Therefore, the company will be lost if continuing production premium Customers want to Light& Supper Space Dulux paint interior enjoy bright and fresh 400.000L Class A top 2015: coat with atmosphere with family 2010: Lumitec technology, after full day of working 900.000L double Develop new light hard reflection,VOC and House area in Vietnam green standard is small, it is not enough light product Class A income want to from be satisfied by current differentiation in quality ones and advanced technology They want to “ well – being” are happiness, weath and high spirits and good New products in new field Enamel feeling Metal and woods Increasing demand for Class A covering paint with enamel paints 2011: 600.000L with shining, durable and sespecially highgrade 2015: 2.0 Dulux superior Million Class B VOC features, paints and green few competitors to be liters 80 Criteria Product/ market with Outstanding feature standard Maxilite Reason for reduction or promotion invested for premium Outputs enamel products, just focus on enamel in mid tier Total estimated market size in 2009 of enamel in Vietnames is about is $ 15 million US (5 million liters) and increasing up to USD $ 30 million US ( 10 million liters) by 2015 Renewing business procedures: The urgent issue that ICI encounters is improving its quality management process The company should outline a more accomplished quality management process from manufacturing procedure to finished product procedure to meet quality requirements Concurrently, it should cooperate with competent agencies and customers to examine agents to find out fake and imitative products as follows: No Objects/examina tion procedures Input materials Quality management process Performer Examine type, quality, volume as Quality Material required management Examine materials in terms of type and Production preprocessing volume control Examine stirring temperature Examine smoothness of power 81 No Objects/examina Quality management process Performer tion procedures Finished Examine materials before storing and Production product putting into production (in terms of type control mixture and volume) Color mixture Examine viscosity Examine color creation substances (type Production an volume) control Examine colors to be produced Prepackaged Examine viscosity Quality products Examine acid and alkali index management Examine lightness Examine paint cover (effervescent or Barrel smooth) Examine volume of packaged barrel packaging Market control Examine type, quality and price of Quality products products and services Production management 1.2.2.5 Financial strategy ICI needs to develop strategies appropriate finance General as follows: Financial targets: Table 3.2 ICI’s financial targets Unit : Euro Mn 2008 2009 2010 2015 Revenue Cost of Sales Gross Profit 40.6 18.7 21.9 44.5 18.6 25.9 52.7 22.1 30.6 110 45.1 64.9 Advertising expenditure Promotion expenditure Manpower Cost Overhead Cost 9.68 2.64 1.44 1.36 10.2 2.77 1.68 1.52 11.20 2.90 1.80 1.60 23.4 6.0 3.0 3.9 82 Unit : Euro Mn Profit Before Tax 2008 6.78 2009 9.73 2010 13.1 2015 28.6 54% 58% 10% 18% 22% 58% 18% 18% 25% 59% 109% 112% 26% Ratio Gross Margin Sales growth Profit growth Profit before Tax / Sales 17% Source: ICI Paints Asia Key Challenges – Finance: Banking System: Availability of quality banking in provinces; Market crunch and devaluation exposure Internal Control to keep pace with growth: Anticipation and definition of processes Market Connect: Feel for ground issues – credit & pricing Key Initiatives – Finance: Business Partnering: Leading OWC improvement; Market Survey and Credit Policy and management; Information system support Internal Control to keep pace with growth: Ensure robust system controls on plant operations; Processes and procedures; FCA and NFLOR Tax Regime: Maximize tax benefits Integration and Transition: System setup for integrated operation Team building: Functional preparedness to meet growth Business Partnering: Partner banking with HSBC; Constant dialogue with bank / internal customers to mitigate FX exposure; Revised Credit Policy; Information system support Internal Control to keep pace with growth: Sustain GIA Ratings; Creation of Internal Controls position Tax Regime: Capitalize on two plant operation; Seek avenues of improving tax benefits New Plant Transition: Operating framework Team building: Training and coaching 1.2.2.6 Human resource strategy 83 ICI will need to built strategic human resources consistent with the vision, mission and strategic goals of it As follows: HR to focus on following areas: • Training & Development • Recruitment & Retention • Compensation & Benefits • Admin & HR Services Build “level leadership” capabilities: Fast Track of Development Build “Training Develop & Development Identifying ment Strengths & Center Opportunities New Core Values New Success Factors AMP & MEP Foreign Assignment Programs” for new employees: Situational Leadership Change Management Initiative & Follow Through Regular Track of Development: Statistics Analysis Personal & Project Planning Recruitment & Selection Team Dynamics Management Leadership Development Improve Job Standards T&D Program (6 mths1year) Identify Strengths & Areas for Development Level: Effective Meetings Finance for NonFinancial Managers Creative Problem Solving Skills Presentation Skills P&DD Recruitment & Selection Planning & Execution NonManagement Level: English Communications Teamwork & Motivation Interpersonal Skills Time Management Skills 84 To encourage and stimulate the laborers in working as well as to attract skilled people, ICI should improve the preferential treatment policies in following aspects: Salary increase level: Due to the fact that Vietnamese people’s salary level is only at an medium level in foreignowned enterprises, ICI should raise salary at a higher speed to encourage labourers to make more and more effort Detailed: No Work completion level OS (Over Target) AT (Above Target) OT (Ordinary Target) BT (Below Target) Increase level each time (compared with current time) 2009 2010-2015 12% 15% 8% 10% 6% 8% 0% 0% Regarding body healthcare and medical healthcare, the Company should buy these two services for two family members of supervisors; the Company should buy for the all the family members of those who are heads of departments or above Business supporting means and equipment: Currently, Directors or above are provided with personal car for traveling and after years, the Company officially hand over the car ownership to them This policy should be applied to heads of departments, heads of branches Laptops currently are equipped to heads of departments of above The Company should also equip supervisors with laptops as they usually work at site and need support from laptop Drive a high performance culture, in partnership with line managers • Employ performance appraisal process (P&DD) to foster line managers frequently review past objectives and create new ones as well as provide personal development opportunities and introduce career planning to ensure a degree of “stretch” in the aims that people agree • Provide training & development in management skills for line managers to control P&DD more effectively 85 Recruiting the right people in a timely manner is a critical element of success for companies "Attract, develop, retain good performers" is at the heart of our company's needs and our manager's job • Have effective applicant tracking and candidate management systems • Train managers to hire effectively employee 3.2.3 Proposals on control and improvement of the Company’s strategy Once implemented, the results of the strategy need to be measured and evaluated, with changes made as required to keep the plan on track Control systems should be developed and implemented to facilitate this monitoring Standards of performance are set, the actual performance measured, and appropriate action taken to ensure success No Measure Compare variable Continueon Indentify implementati with implementing checking on results checking regconize standards The strategic management process is dynamic and continuous A change standard resultsin one s strategy As such, the process must component can necessitate a change in the entire be repeated frequently in order to adapt the strategy to environmental changes Throughout the process the firm may need to cycle back to a previous stage and Variable make adjustments In order to control and improve strategies can be implemented according to the above process Adjusting according 3.3 Recommendation to the State and authorities to To facilitate the construction of business standards startegy of Viet Nam ICI Paint Company Ltd in particular and Viet Nam enterprises in general, authorities and the State should implement some mearsures as following: 3.3.1 The State Improvement Construct and complete domestic and international economic information system so enterprises can be provided with necessary information supporting research, evaluation of business environment Organizing centres for researching and training on necessary information serving business strategy of enterprises, improving knowledge of enterprises on business 86 strategy Maintain, stabilize macroeconomic policies, avoiding great impacts on business environment, creating favourable conditions to enterprises o have solid base for business strategy setup Complete legal system, especially law on economic, creating synchronized environment as one of the base for enterprises to set up their business strategy 3.3.2.Authorities Ministry of Construction needs give colour standards in construction, following “international colour code” as at the moment, each brand follows a code which is not synchronized to each other Therefore, this may badly impact those who follow international standards and cause difficulties to architects as well as apprasing agencies In the future, the Ministry of Construction should consider issuing “Colour in construction handbook” to settle mentioned above matters Ministry of Science and technology, Ministry of Construction and related ministries and departments should research and give detailed criteria on “clean paint” – Currently consumers are unaware of how to identify clean and safe paint Hence, it is necessary to have regulations on ecological standards and paint brands must meet these standards before being allowed to carry out work in ecological areas or in long term in the whole market In the meantime, authorities should popularize the list of standards – meeting paint brands for the benefit of consumers and fairness in competition; clean paint brands shold be also awarded and recommended in the future At present, there is no effective sanctions against fake goods in circulation and construction Therefore, that fake goods are mixed with real goods, and the work which is commited in contract to use good paint is carried out with low quality paint is happening critically Ministries and departments should propose strong measures to the Government to prevent mentioned above issues to protect consumers and paint industry To the benefit of both parties, people’s commitees in provinces and cities in which 87 there are paint factories should create favourable conditions in terms of both policy and human resource to help factories in development in right direction Particularly, there should be strategy on at site human resource building to fulfill the demand as paint industry requires great skilled human resource with higher incomes than the general level Should provinces and cities not build up human resource, it will a disadvantage to the localities and cause many difficulties to paint plants which have to use outside labour force SUMARY OF CHAPTER Chapter of theme collect basis to propose business stategy to ICI through strategic vision, target and summary on research results in chapter with suitable analysis model Basing on these, the theme give proposals on setting up business strategy at business level and functions to the company; together with programmes on implementing controling, and improving the strategy 88 GENERAL CONCLUSION In this current context, dramatic changes in business environment, competition market are more and more visible, an enterprise is demanded to have a proper business strategy for its longterm success and sustainable develpment In order to develop a business strategy for a decorative paint company, it is necessary to get to know about the strategy, its content, basis and developing procedure, obtain the general overview of the Vietnam ICI Paint, analyse the current status of company business environment, assess the strengthsweaknesses, opportunitiesthreads given Based on these studies, the group collect the basis for developing business strategy and represent the results via the Vision, Mission, Strategic Goals/Targets and apply such models as SWOT, BCG, “5 forces – Michael Porter” to analyse and propose straetegies for enterprises and functional divisions of the company Meanwhile, proposals for implementation, control and quality innovation are provided At the same time, the thesis provides proposals, petitions to the authority bodies so as to create a favorable environment for developing and implementing the planned strategies, for the stable development target of the paint industry generally and Vietnam ICI Paint Co., particularly Due to limited time and knowledge, our assigment still remains mistakes and defects We look forward to the comments from teachers and friends 89 LIST OF REFERENCE DOCUMENTS Ian Chaston (1999), Client Oriented Marketing, Vietnamese translation, Dong Nai Publisher Fred R David, translator group: Truong Cong Minh, Tran Tuan Thac, Tran Thi Tuong Nhu (2003), General Discussion on Strategy Management, Statistic Publisher, Ha Noi Viceprofessor Dr Nguyen Thi Lien Diep, Dr Pham Van Nam (2003), Strategy and Policy on Business, Statistic Publisher Rowan Gibson edit (2004), Thinking in future – Vietnamese translation, Youth Publisher Viceprof.Dr Le The Gioi – Dr Nguyen Thanh Liem, Ma Tran Huu Hai (2007), Strategy Management, Statistic Pubisher Dr Bui Le Ha, Dr Nguyen Dong Phong, Dr Ngo Thi Ngoc Huyen (2001), International Business Management, Statistic Publisher, HCMC Viceprof.Dr Le Thanh Ha, Hoang Lam Tinh, Ma Nguyen Huu Thuan (1998) Application system theory on business management, Youth Publisher HCMC Dr Doan Thi Thu Ha, Dr Nguyen Thi Ngoc Huyen (2002): Management Cirriculum, Finance Publisher Don Taylor Jeanne Smalling Archer, translator group: Nguyen Tien Dung, Nguyen Hong Ling, Hoang Phuong Thuy (2004), To compete with the giant, Statistic Publishers, Ha Noi 10 Philip Kotler (2003), A framework for Marketing Managementsecond edition, Prentice Hall 90 11 Philip Kotler (1997), Marketing Management, Statistic Publisher, Ha Noi 12 Thomas J Peter and Robert H Waterman, Jr – Tran Xuan Kiem composed (1998), Finding the perfect, Dong Nai Publisher 13 Michael E Porter (1998), Competition Strategy – Vietnamese translation, Statistic Publisher, Ha Noi 14 Garry D.Smith, Danny R Arnold, Boby R Bizzell, translator: Bui Van Dong (2003), Strategy and Policy on Business, Statistic Publisher, Ha Noi 15 Viceprof.Dr Ngo Kim Thanh (2009), Business Strategy Lectures, GRIGGS University 16 Ton That Nguyen Thiem (2003), Market, Strategy, Structure – HCMC Publisher 17 “Enterprise Law – 2005” – Statistic Publisher 91 [...]... members in the group 01.M05 and we all are agreed re to select the theme: "To Build the business strategy for Co ICI Paint Vietnam 2010- 2015 2 Purpose of Research: The purpose of the topic is to develop the smart business strategy for ICI Paint Co., Ltd Vietnam in the period 2010- 2015 and have the right solutions to implement effectively this strategy 3 Objective and scope of research: 11 Objective of research... external environment is an important part of the strategic planning process in the Paint firms Environmental factors internal to the firm usually can be chiến lượcassified as strengths (S) or weaknesses (W), and those external to the firm can be chiến lượcassified as opportunities (O) or threats (T) Such an analysis of the strategic environment is referred to as a SWOT analysis The SWOT analysis provides... strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage Examples of such strengths inchiến lượcude: patents; strong brand names; good reputation among customers; cost advantages from proprietary knowhow; exchiến lượcusive access to high grade natural resources; favorable access to distribution networks… Weaknesses: The absence of certain strengths... opportunities for profit and growth Some examples of such opportunities inchiến lượcude: an unfulfilled customer need; arrival of new technologies; loosening of regulations; removal of international trade barriers… Threats: Changes in the external environmental also may present threats to the firm Some examples of such threats inchiến lượcude: shifts in consumer tastes away from the firm's products; emergence... macroenvironmental analysis inchiến lượcudes political, economic, social, and technological factors and sometimes is referred to as a PEST analysis An important aspect of the microenvironmental analysis is the industry in which the firm operates or is considering operating Michael Porter devised a five forces framework that is useful for industry analysis Porter's 5 forces inchiến lượcude barriers to entry,... strategy in the decorative paints company Chapter 2 Current status business of ICI Paints Co., Ltd Vietnam Chapter 3 Solutions to build the business strategies for ICI Paint Co., Ltd Vietnam for the period 2010- 2015 12 Chapter 1 SOME THEORIES OF BUILDING THE BUSINESS STRATEGY IN DECORATIVE PAINTS COMPANY 1.1 Concepts, classifications and the roles of business strategy in the company 1.1.1 The concept of business... within the firm itself, such as: Company culture Operational capacity Company image Brand awareness Organizational structure Market share Key staff Financial resources Access to natural resources Exchiến lượcusive contracts Position on the experience curve Patents and trade secrets Operational efficiency … A situation analysis can generate a large amount of information, much of which is not particularly... responsive enough for rapidly changing competitive 32 environments In times of change, some of the more successful strategies emerge informally from lower levels of the organization, where managers are chiến lượcoser to customers on a daytoday basis Another drawback is that this strategic planning model assumes fairly accurate forecasting and does not take into account unexpected events In an uncertain... Source: ICI Paints Asia The economic indicators over the past three years are relatively good in comparison with the world and Vietnam is one of the few countries which can recover strongly in the period 2010- 2015; this will be very advantageous to paint industry development, shown in Table 2.2 36 ... Co ICI Paint Vietnam 2010- 2015 Purpose of Research: The purpose of the topic is to develop the smart business strategy for ICI Paint Co., Ltd Vietnam in the period 2010- 2015 and have the right... Environmental factors internal to the firm usually can be chiến lượcassified as strengths (S) or weaknesses (W), and those external to the firm can be chiến lượcassified as opportunities (O) or threats (T)... advantage Examples of such strengths inchiến lượcude: patents; strong brand names; good reputation among customers; cost advantages from proprietary knowhow; exchiến lượcusive access to high grade natural