BUILDING BUSINESS STRATEGY of ben JSC

GaMBA01.M0709 Graduation Test CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY PERIOD OF 2011 - 2015 – BEN JOINT STOCK COMPANY GaMBA01.M0709 Graduation Test Subject: Strategy Administration Group: 13_ Class M0709 Full name: Nguyen Thi Kim Anh Phung Thi Thu Ha Vu Danh Hiep Do Thi Hoa TABLE OF CONTENTS GaMBA01.M0709 Graduation Test PREAMBLE 1.1 General context, necessity and importance of theme research Research purposes and application capacity Research method CHAPTER I: THEORETICAL BASIS 1.1 FUNDAMENTAL PROBLEMS OF STRATEGY 1.1.1 The concepts of strategy 1.1.2 Strategic Management 1.1.3 Benefits and the role of strategic management for the development of the business 1.2 CONTENT AND STEPS IN BUILDING STRATEGY 1.2.1 Environmental analysis 1.2.1.1 Macro environment 1.2.1.1.1 Economic factors 1.2.1.1.2 Factors of law, government and politics 1.2.1.1.3 Social factors 1.2.1.1.4 Natural factors 1.2.1.1.5 Technological factors 1.2.1.1.6 Worldwide 1.2.1.2 Micro environment 1.2.1.2.1 Competitor 1.2.1.2.2 Customers (Buyers) 1.2.1.2.3 Suppliers: 1.2.1.2.4 Potential rivals: 1.2.1.2.5 Substitution product 1.2.2 Internal conditions of the Enterprise 1.2.2.1 Human resources 1.2.2.2 Research and Development (R&D) 1.2.2.3 Administration: 1.2.2.4 Production - Operation 1.2.2.5 Marketing 1.2.2.6 Information system 1.2.2.7 Corporate culture: 1.2.3 Analyze labor forces to determine essential capacities 1.2.4 Sep up long-term objectives 1.2.5 Select strategy: 1.2.6 Steps to establish strategy 1.2.7 Tools to establish and select strategy 1.2.7.1 Tool supplying information to establish strategy 1.2.7.2 Tools to build optional strategy 1.2.7.3 Tool to select strategy - Quantitative Strategic Planning Matrix (QSPM) CHAPTER II: ANALYZING ACTUAL STATE OF ENTERPRISE 2.1 Overview of Enterprise 2.2 Analysis of factors impacting on business environment of Ben joint stock company 2.2.1 Macro environment 5 8 10 10 10 10 10 10 10 10 10 11 11 11 11 11 11 12 12 12 12 12 13 13 13 13 15 15 16 17 18 18 19 21 23 23 23 23 GaMBA01.M0709 Graduation Test 2.2.2 Industry environment of BEN 2.2.3 Evaluating the opportunities and threats of BEN 2.3 Operation analysis of Ben company 2.3.1 Human Resources 2.3.2 Research and Development 2.3.3 Management 2.3.4 Marketing 2.3.5 Finance 2.3.6 Information system 2.3.7 The company’s culture: 2.3.8 General evaluation of BEN’s internal conditions CHAPTER III: CONSTRUCTION DEVELOPMENT STRATEGY OF SUSTAINABLE CORPORATION 3.1 Perceptions of strategic objectives and strategy 3.1.1 BEN strategic perspective 3.1.2 The goal of the BEN to 2015 3.1.3 Prospects and market forecast 3.2 Construction development strategy of the company 3.2.1 SWOT analysis matrix to suggest strategies 3.2.2 The proposed strategy 3.2.3 Strategic choices CHAPTER IV: SOLUTIONS, CONCLUSIONS AND RECOMMENDATIONS 4.1 Solution to implement strategy 28 30 35 35 37 37 38 39 41 41 42 45 46 46 46 47 48 48 54 56 63 63 63 64 4.1.1 Solution to implement the strategy of market development 4.1.2 Solution to implement strategies on quality improvement and product differentiation 4.13.Solution on implementation of human resource strategy 4.1.4 Solution on implementation of organizational re-structure strategy 4.1.5 Solution on implementation of other function strategies 4.2 Conclusion 4.3 Recommendations REFERENCES 65 66 66 68 69 71 GaMBA01.M0709 Graduation Test ABBREVIATIONS BEN Ben company EFF External Factor Evaluation Matrix IFE Internal Factors Evaluation Matrix SWOT Matrix Strengths - Weaknesses - Opportunities - Threats QSPM Quantitative Strategic Planning Matrix CNTT Information Technology ERP SYSTEM SOFTWARE CORPORATE GOVERNANCE GDP Gross domestic product WTO World Trade Organization LIST NUMBER OF DATA TABLE Table 1: External Factor Evaluation Matrix (EFE) Table 2: Competitive Profile Matrix of BEN Table : Human Resources Structure basing on Business structure of BEN Table 4: Human resources Structure basing on Age: Table 5: Qualification of the Human Resources Table 6: Report of business activity results in 03 years Table 7: Internal Factor Evaluation (IFE) Matrix of BEN Table 8: SWOT Matrix BEN Company Table 9: Strategic Analysis Group S -O Table 10: Strategic Analysis Group S-T Table 11: Strategic Analysis Group W-O Table 12: Summary of strategic options 32 34 35 36 36 40 44 49 57 58 60 61 PREAMBLE: 1 General context, necessity and importance of research Vietnam joined the WTO organization and is now attracting investment from big technological companies such as Intel and Microsoft In 2006, Intel Corporation invested billion USD to build the largest Chip production and testing plant in Asia and it went into operation in October 29, 2010 GaMBA01.M0709 Graduation Test In 2008, IDG, reputable International Data Group of USA decided to invest 500 million USD into Vietnam's IT market, and disbursed to the end of 2010 Therefore, along with the $ 100-million fund of Vietnam Venture Capital Fund IDG operated from 2004 to now, capital of the IDG in Vietnam will reach the figure of $ 600 million IT services will grow fastest with the second growth rank in Asia - Pacific region, after India According to data announced by GFK Market Research Company (Germany), the market size of information technology (IT), Electronics and Telecommunications of Vietnam in 2008 was $ 3.9 billion and was expected to reach $ 4.9 billion in 2009 In 2008, despite the world economic downturn, the information technology industry (IT) of Vietnam achieved the growth of 20% Since 2007, Vietnam entered Top 30 of the most attractive nations in the world of software outsourcing Vietnam now ranks 18th in the world with the number of 21 million Internet users, 6th in Asia on internet development speed The Government, together with IT enterprises and training units set a target by the year 2015: it is estimated that Vietnam will have 600 thousand professionals in IT and increase to one million in 2020 The government also approved funding to support the development of software industry and IT in Vietnam The goal is that by 2020, Vietnam will become a powerful nation in IT Vietnam has 75% of young and highly educated population and more importantly, they always have a positive attitude and really look forward to application of information technology to life These are good conditions for further development of Internet in Vietnam and also a big opportunity for companies trading in hardware and software in Vietnam Computer is considered a powerful and useful tool in life of a modern society The development of used computer generations can also show that a part of growth of a nation Year 2009 is the year that Vietnam Computer market witnessed a truly domination of the notebook computer (laptop) compared to desktop computer (Desktop) Many experts predicted this trend would continue in 2010 According to Mr Thieu Phuong Nam, Sale Manager of Intel in Vietnam and Indochina, the growth of the computer in the Vietnam market in 2009 has exceeded previously predicted expectations and forecast of Intel In particular, the laptop is a product group with the highest growth rate, about 70% in 2009 There are three reasons for this result First, in 2009, despite the impact of global crisis, Vietnam's GDP growth was still positive The second reason is the demand stimulation program of the Government has had a direct impact to the expenditure of Vietnam people, such as, tax reduction program from 10% to 5% for computer products GaMBA01.M0709 Graduation Test Another reason leading thriving of Vietnam Computer market in 2009 is thanks to great demand for purchase of computers by pupils and students in the country Computer now almost become an indispensable learning tool of pupils and students In the condition of the growth and the average need of 20-25% annually for the information technology sector, averagely and annually, dozens of large and small companies are formed BEN Computer Company was formed in 2001 with a very small scale from a computer retail store with an area of 30 m2 and total staff of about 50 people From that it developed to BEN joint stock Company with its head office area up to nearly 1000 m2 with total staff of up to 200 people In an open economy and perfect competition environment, although Company has had a certain place and a certain market share for customers and partners, the board of Directors of company see that Company should have a clear business strategy planned through the qualified experts in business to build the sustainable development competition of the company For this reason, in 2009, the Board of Directors of company assigned managers to study MBA program of Master of International Business Administration (GaMBA) linked to organize by Griggs University (USA) and the Center of Technology Training and Employment System of the Hanoi National University with very clear objectives to acquire knowledge in school and build business strategy for the company in five years from 2011 - 2015 The field selected by the Group 13 as the topic for graduation test is to build business strategies for Ben Joint Stock Company to trade Notebook, set of computer, computer assembly with Ben brand name and distribute IT products as a member of the group is Vice Sale Manager of the Company 1.2 Research purposes and application capacity According to research by IDC, the PC market in Vietnam has faced many challenges in the first half of 2010 due to falling demand However, the laptop market continues to grow despite the inventory and fierce competition on the retail price Demand on desktop decrease due to less demand of consumer, as well as budget cuts for government projects on education IT Products business segment in 2011 is predicted 20% growth by IDC Based on the above predictions, Ben Joint Stock Company has also built a business strategy orienting to 2015 with the following specific objectives: + To transform business form from distribution and retail to fully retail + To expand the scale by opening more shops of utility at new residential area: it is estimated to open 03 Ben Store + Market share of about 10 - 15% retail market share in the North; to rank No on sales of information technology products in the North GaMBA01.M0709 Graduation Test + Average revenue growth of 20-25% per year + To expand products: mobile phone, LCD TV + To coordinate with Intel manufacturers to produce computer with BEN 10 brand with the average number of 5,000 products per year + To coordinate with other computer Corporate such as Acer, Toshiba, HP to build link stores such as Hp Store; Toshiba store, Acer Store to continue success of two Stores in 2009 and 2010 namely Dell Store and Lenovo Store + To build a complete ERP system administration * Applicability of theme The Company has prepared the infrastructure and investment for long-term strategy by hiring more spaces in 2010 According to the overall growth trend of the industry Orientation of leaders about the possibility of sustainable and long term development of enterprise 1.3 Research method To complete the requirements and meet the objectives of the research process, the group conducted concurrently the following methods: Method of investigation, field surveys in the enterprise Analysis of the overall strategy based on planning tools according to BCG Matrix, SWOT and the theory of competitive strategy by Michael E Porter Comparison of evidence and from which to make comments, reviews, effectively and feasible recommendations and solutions CHAPTER I THEORETICAL BASIS Focusing on intensive research of business strategy (as a scheduled index) and concurrently, add knowledge in the fields studied in other universities: + Marketing Administration + Corporate Finance GaMBA01.M0709 Graduation Test + Human Resource Administration + Development of leadership skills Define the business strategy of the company: Different and low cost 1.1 FUNDAMENTAL PROBLEMS OF STRATEGY 1.1.1 The concepts of strategy There are many different definitions of strategy; each definition is more or less varied depending on the different views of each author In 1962, Chandler defined strategy as “The determination of the basic long-term goals and objectives of an enterprise and the adoption of the courses of action and the allocation of resources necessary for carrying out these goals.”1 In 1980, Quinn defined a more general strategy as "a strategy is the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole”2 Then, Johnson and Scholes have redefined the strategy in the changeable environment as: "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations”3 According to Mintzberg, definition of strategy can be summarized with the Ps Plan: Sequence of actions planned in a consistent manner Pattern: consistency in behavior, whether or not intended Position: "match" between organization and environment Perspective: A way of perceiving the world Ploy: a specific manoeuvre intended to outwit an opponent or competitor In essence, the definition of strategy depends on standpoint, however, in the most common, the strategic levels include: Company-level strategy, Business Unit level strategy and functional strategy According to Charles W.L.Hill and Gareth R Jones: "Strategy is a process of determining the basic and long term objectives of an enterprise, choosing the method or the direction of operation and allocation of resources necessary to implement that goal" Fred David: "Strategy is the means to achieve long-term goals." William J Glueck: "Strategy is a unified, comprehensive and integrated plan designed to assure that the basic objectives of the enterprise are achieved” Business strategy of an enterprise is a general action program towards the implementation of the optimal objective of the enterprise However, the strategy is not Chandler, A (1962) Statregy and Structure.Cambrige Massacchusettes.MIT Press Quinn, J,B (1980)Statregies for change; Logical Incrementalism Homewood Johnson, G, Scholes, K (19990 Exploring Corporate Statregy, 5th Ed.Prentice Hall GaMBA01.M0709 Graduation Test aimed to specifically outline how to achieve those goals but only to frame to guide thinking and action The important feature of all business strategies when are formed and paid attention to is the "competitive advantage" because it is used to distinguish them from other business plans In fact, any competitor develops their own strategies because strategy is the only purpose and ensures for enterprise to search and gain their sustainable advantages before their competitors Through access to the above definition, whether expressed, but we can generalize the Strategy as “A complex series of actions to mobilize the resources possible of an organization to achieve a certain goal" 1.1.2 Strategic Management According to Garry D Smith, "Strategic Management is defined as the process of studying the current environment as well as in the future, planning objectives of the organization: propose, implement and supervise the implementation of decisions designed to achieve the objectives in current environment as well as in the future” According to Fred R.David, “Strategic Management can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objective Strategic Management focuses on fusion of the management, financial and accounting marketing, manufacture, research and development of information systems and business sectors to achieve success " There are many different concepts of strategic management, but according to the document "Strategy & business policies" of the doctor Nguyen Thi Lien Diep, we can set the following three approaches: •Environmental approach: "Strategic Management is a decisive process aimed at connecting the internal ability of the organization with the opportunities and threats of the outside environment." Characteristics of this approach are to make company-oriented environment, exploit opportunities and deal with risk •Approach of the objectives and measures: "Strategic Management is a part of decisions and administrative actions set long-term performance of a company." This approach allows administrators to define precisely the objectives of the organization, which is the foundation of management as well as to use efficiently the resources of the organization •Approach of action: "Strategic management is carried out considering the present and future circumstances, create goals of the organization, make decisions and control decisions, focus on implementing objectives in the current and future situations " 10 GaMBA01.M0709 Competitive environment in Vietnam also has many inadequacies Graduation Test T2 12 9 12 4 12 6 3 3 16 6 9 3 3 12 6 12 198 (Calculation results of group) 16 172 FACTORS IN 10 11 12 The solidarity and loyalty of employees Reputation of trade mark and quality of services Healthy financial situation High professional qualification and skill Information system of the Company Modern equipment and technology Human resource training Marketing Management Joint-venturing Quality of products and services Research & Development Total number of attractions S1 S2 W1 S3 S4 S5 W2 W3 W4 W5 S6 W6 2 3 3 Reviews: Through analysis of the matrix group SO QSPM seen: Strategies for market development with attractive total (TAS) is 189, while the strategic development of products with attractive (TAS) only 172 During this period, the company should focus BEN for strategic market development in the long term and strategic product development in the short term 3.2.3.2 Through strategic choices for groups QSPM Matrix S-T Table 10: Strategic Analysis Group S-T Alternative strategies can Basis of the Strategy to Technological number of Or Class create Innovation attractions der Other important factors ificati differences Strategy nu on AS TA AS TAS mb 58 GaMBA01.M0709 Graduation Test S I EXTERNAL FACTORS O1 Economy grows and stably O2 Vietnam has a stable politics Economic policies of the Government The impact of economic integration The development of science and technology The influence of natural conditions The support of industry, support of foreign companies about capital, monopoly and the investment incentives in expanding business activities Competition of domestic and foreign enterprises The impact of price increases of input factors Competitive environment in Vietnam also has many inadequacies strongly 2 4 4 16 16 9 12 12 12 9 6 12 6 6 12 O3 O4 O5 O6 O7 T1 T2 T3 FACTORS IN The solidarity and loyalty of employees Reputation of trade mark and quality of services Healthy financial situation High professional qualification and skill Information system of the Company S1 S2 W1 S3 S4 59 GaMBA01.M0709 Graduation Test Modern equipment and technology Human resource training S5 W2 W3 W4 W5 10 11 16 16 3 3 9 Marketing Management Joint-venturing Quality of products and services S6 16 12 12 Research & Development W6 Total number of attractions 200 187 (Calculation results of group) Reviews: Through analysis matrix QSPM S-T group we find: improving the quality strategy and create a total different attractions (TAS) is 188, while the innovation strategy of technology Attractions (TAS) is only 181 Therefore, in the current period, can be both strategic development, but companies should focus on improving the quality of strategy and product differentiation in the short term by current equipment, technology The Company is quite modern In the long term company strategy can make technological innovation to improve competitiveness of companies 3.2.3.3 Through strategic choices for groups QSPM Matrix W-O Table 11: Strategic Analysis Group W-O Alternative strategies can Or Classifi Strategic Crossder cation human linking Other important factors nu resource strategy mb development er TA AS TAS AS S I EXTERNAL FACTORS Economy grows strongly and stably O1 4 Vietnam has a stable politics 2 Economic policies Government The impact of of Basis of the number of attractions the economic O2 O3 2 4 60 GaMBA01.M0709 Graduation Test integration The development of science and technology The influence conditions The support of industry, support of foreign companies about capital, monopoly and the investment incentives in expanding business activities Competition of domestic and foreign enterprises The impact of price increases of input factors Competitive environment in Vietnam also has many inadequacies of O4 12 12 12 4 9 8 12 12 6 6 12 12 4 3 16 9 2 16 4 12 3 12 186 12 179 natural O5 O6 O7 T1 T2 FACTORS IN 10 11 12 The solidarity and loyalty of employees Reputation of trade mark and quality of services Healthy financial situation High professional qualification and skill Information system of the Company Modern equipment and technology Human resource training Marketing Management Joint-venturing Quality of products and services Research & Development Total number of attractions S1 S2 W1 S3 S4 S5 W2 W3 W4 W5 S6 W6 2 3 61 GaMBA01.M0709 Graduation Test (Calculation results of group) Reviews: Through analysis matrix QSPM WO group shows: Strategic Human Resource Development has a total of attractions (TAS) is 177, while cross-linking strategy is very attractive total (TAS) is 164 Although the difference in compelling total score of strategies is not big but the Company can focus on human resources development strategy in the long term and cross-linking strategy in the short term Conclusion: Through analysis matrix QSPM we can draw a number of strategic options for company shares BEN as follows: Table 12: Summary of strategic options GROUP MAIN MENU STRATEGY NAME STRATEGY Strategic Market Strong market penetration by offering COMPANY Development (Combined: products with competitive advantage, LEVEL S1, S2, S3, S4, S5, S7 + superior brand, high quality, competitive STRATEGY O3, O4, O5, O6 ) price, stable quality, development of distribution systems, supply and to dominate a market and target customers Strategies improve Expansion of products to meet market quality and product investment research projects on the basis differentiation of the existing capacity of the company (Combined: S1, S2, S3, S4, S5 + T1, T4…) FUNCTIONAL LEVEL STRATEGY Strategic human resource development: ( Combined: W1, W7 + O1, O2, O3, O4, O5,O6 ) Focusing on training, improving and developing human resources, particularly management staff, technical Strategic restructuring of Focused restructuring, further organizational structure strengthening the departments are more (Combined: W1, W2, professional, trained staff of qualified, W3, W4, W5 + T2, T4, T5 enthusiastic to deal effectively with these …) competitors (Calculation results of group) 62 GaMBA01.M0709 Graduation Test CHAPTER IV SOLUTIONS, CONCLUSIONS AND RECOMMENDATIONS 4.1 SOLUTION TO IMPLEMENT STRATEGY 4.1.1 Solution to implement the strategy of market development - Focus on investment, expansion of retail in the retail outlets, investment and decoration for retail stores to attract customers; rental locations in convenient places for customers for garage with crowded people, building retail sales process to customers quickly, minimizing time; and also organize activities to introduce new products; give free gifts at the new opened stores; intensify home warranty service, online warranty, organize free maintenance program for products sold by company, and build discount programs for loyal customers (gold and silver, copper customers) + Regularly make promotion activities to maintain brand image and corporate brand image of the company associated with large firms such as Acer, Dell, Lenovo creating influence and trust to customers - Maintain and develop sustainable relationships with traditional customers Maintain sustainable revenue growth, profit growth Increase investment and research new products and services to suit customer’s requirements At appropriate time, the company might consider developing a relationship with these customers to a new level For example, the relationship between suppliers and the exclusive service users in the industry The collaboration will always follow the rules "Win-Win" (mutually beneficial), which will help the company plan production planning and development strategy for a long time - Continue to maintain and supplement finance for research and development activities of new products, marketing, search and access to target customers and markets Carefully study the current needs of the target market, and the requirements for the quality of services; Select proprietary products (purchased separately from supplier shipments separately); build BEN 10 PC brand products; diversify products offered on the market, develop some new items such as phones, LCD, TV and so on Step up marketing activities in all northern markets, particularly the marketing strategy must be thoroughly researched and completely built with advice of professional marketing consultants, meanwhile build for the company a professional marketing department for long development strategy of the company It can be said that marketing is the most important factor that decide the success or failure of development strategies in this market In face of competition trend is increasingly fierce of the national computer companies and especially in the northern market, image promotion and perfect marketing strategies would be one of decisive factor to the success of the business 63 GaMBA01.M0709 Graduation Test - Develop appropriate and flexible price policies for each traditional market, from which to penetrate into potential markets The construction of price must be based on competitive prices for services of the peers, the competitive advantage of the company, supply-demand relations of the market, and policies on development of information technology by the Government It should maximize advantages of the company in the process of building the pricing policies and strategies - Build good relationships with vendors to gather information fast, win the greatest privileges brought by providers, thereby making timely decisions to most benefit the business 4.1.2 Solution to implement strategies on quality improvement and product differentiation 4.1.2.1Solution on technology Continue to invest in modern equipment, uniform and build internal networks attractive, Website systems, provide adequate information and facilities in providing, consultancy and introduction of products with customers in website of the company In addition to invest in equipment for business, the company needs to build a quality management system, effectively apply ISO quality management system for the operation of the company Invest in equipment for the inspection and control; particularly complete ERP management system which is a software to help a company manage their key activities include: accounting, financial analysis, purchasing management, inventory management, planning and production management, logistics management, relationship management with customers, personnel management, tracking orders, sales management, etc ensuring appropriate resources of the business such as human resources, supplies, machinery and money available with sufficient quantities when needed, by using planning tools Improve use efficiency of equipment, modern technology, reduce management costs, reduce product costs, and create competitive advantage of the Company Need to focus investment in research and access to equipment, modern technologies, advanced management level 4.1.2.2 Solution on product quality Product quality is the key factor deciding the company's survival The development of technology industry is increasingly high, the life cycle of technology products is increasingly low, and more customers are interested in quality and maximum utility of the technological product they use and frequently change and update the new products with superior features Also, the quality of the service decides 64 GaMBA01.M0709 Graduation Test return to that brand or not, and customers only accept for long-term with brand kept its reputation for quality It is also one of factors that the hi-tech business enterprises have unique and differential products to create competitive advantage despite the very high price So the company should put the quality of services on top Based on the differences, only one supplier is capable of imposing price (exclusive) for new products, with superior features, from which impose costs, and increase profits To improve the quality of products, services, the company is not only interested in purchasing investment in modern equipment, but also pays attention to the construction of the warehouse system, standard station, investment for standard inspection room Maintain ISO system through internal audits periodically These are technical and managemental standards and help the company operating routine Ensure to take our customers with consistent service on quality and best meet their requirements Improve product quality, create a difference winning edge in competition with rivals This is a major strategic to develop services of the Company so that products or services have unique characteristics, respected and highly appreciated by customer than the products of competitors; continue building BEN 10 brand products into a major reputable brand, in the whole northern, and research and create new brands for the long term development strategy of the company when the life cycle of the product is no longer necessary to change, creating an innovation and differentiation 4.1.3 Solution on implementation of human resource strategy: This strategy plays an increasingly important role in the survival and development in a sustainable way in any business, particularly in the context of the fierce competition among peers Active control of human resources is the basis for enhancing competitiveness of enterprises Focus on training, improve and develop human resources, particularly management staff, technicians Invest funds suitable to re-training plans for staff - the current staff of the Company Establish clear policies on recruitment, staffing and career development for managers and technical staff Develop policies to encourage the employees to study advanced qualifications, foreign language such as support costs, create challenges and opportunities, and increase income for employees after completing the course Periodically check the skills of technical staff There is adequate remuneration for skilled workers such as wage increase, the appointment of a higher position to encourage the employees to complete their professional skills 65 GaMBA01.M0709 Graduation Test - Implement policies to attract excellent persons to the company (for both production and management parts) such as the attractive compensation, stock incentives and rewards timely to improve qualifications Develop and apply policies of salary payment according to ability and job performance Build reward regime, preferential policies, and reasonable payoff in time, to avoid scratching by ideological motivation, which will not create working dynamics and does not exploit the capabilities of each individual Create a favorable working environment for employees, particularly in the sites of the Company Implement the policy to move the working position of employees in the company, implement the policy which a person knows many works, meanwhile keep professional in every stage, each division, encourage and create expectations on the advancement of each in the company upon completion of their tasks, as well as when not complete, violating the law of the company 4.1.4 Solution on implementation of organizational re-structure strategy: - Focus on restructuring, training of staff with qualifications and enthusiasm to deal effectively with these competitors Rebuild the organizational structure appropriate to each individual industry, in which focus on intermediate-term management-range (departments and stores, call centers ) to ensure thoroughly implementation decisions of their superiors, promote the creativity of subordinates, avoid duplication in management - Arrange organizational apparatus in the subordinating units under the direction of streamlining and ensure good relations between the parts of the organization so that information is transmitted quickly and promptly Consider the reasonable ratio between the volume of work and the number of employees, avoiding excess labor - Establish marketing department with an experienced, highly professional staff under the direct management of the Board of Directors - Establish research and development (R & D) division to conduct research of new products to diversify the types of products, increase competitiveness and development of the Company - Develop a positive working atmosphere, create excitement in the job Timely settle conflicts arisen in the Company for its purposes and benefits - Establish effective information systems to timely reflect information on the production, business of the company, information on market, suppliers, competitors and human resources - Develop internal control system closely and effectively 4.1.5 Solution on implementation of other function strategies: 4.1.5.1 Solution on management 66 GaMBA01.M0709 Graduation Test - Organize and restructure departments of the company, particularly Sales Office marketing, store systems of the Company so that this unit works really effectively, meeting the current urgent needs of the company - Develop an organizational culture of the company: The Company needs to create the style that everyone in the company desires and feels complete peace of mind, looks in the same direction, concerted consensus made her mission Build, and improve brand and reputation of the company, creating a strong image of an efficient business, pay attention to the development of staff and workers in the company and the community Organizational culture of the company is built under the model of the harmonious combination between order and discipline, professional behaviors and values of traditional culture of Vietnam such as essential interdependence, solidarity and cooperation in production - Be interested in training, improving qualification and management capacity of leaders of the company Have deserved preferential treatment to those who have initiatives and are wholehearted to the development of the company 4.1.5.2 Solution on finance - Implement policies to control and manage costs Build plans for use of capital and cash management processes The Company needs to take measures to invite investment of customers and applies flexible payment in production schedule - Restructure the portfolio, develop and expand market in a sustainable way; Focus on resolving long outstanding debts, promoting the payment; set up risk reserve fund; Give priority on carrying out orders with quick billing capabilities and fully exploit the preferential policies of the government, especially taking advantage of the capital policy; carry out insurance for activities participated by the company, insurance of assets, risk - Check to classify customers according to the debt state, have plans and policies to collect debts for bad debts by customers to address the situation of the company's working capital Balance, calculate policies, reward for customers in a quick way to motivate and encourage them to sell goods for the company Have a financial plan in each short-term and long term period to implement the objectives of the company without capital passion Immediately the company should invest and expand the retail establishments in Hanoi, when the systems in Hanoi is finished, then reaching out to other markets in the north, while build sales system with regional nature, effective intercity, possibly attract customers by cluster to reduce the unnecessary investment cost - Periodically conduct internal audit and possibly hire an independent auditor annually for healthy financial of the company 67 GaMBA01.M0709 Graduation Test - Flexibly apply bank capital; optimize cash flow by buying long-term debt but retail for cash; invest to purchase goods from abroad to improve profitability; at the same time conduct equitization, issue shares to attract investment capital, raise responsibilities of shareholders and employees in the company 4.1.5.3 Solution on research and development - The company should establish research and development department to undertake the market development strategy as well as product development strategy This is a proper and necessary request So in the future, the company needs to invest in personnel and necessary equipment so that the research and development department implements long-term goals of the company In the short term, it needs to pay attention to the following issues: Explore the market in northern and regional markets; Research and Develop construction activities and research and invest in retail system in potential markets - Have a policy and funding for research and development, encourage material and mental for technical innovations and valuable researches Possibly recruit good experts from outside the company and give deserved treatment regime to keep them - To avoid the investment of money, time and effort without efficiency, research and development need to perform additional tasks such as explore the market, try to apply, take customer’s opinions and implement the marketing of services output Ensure the implementation of investment projects is really effective for the company, from which may continue to accumulate and reinvest Summary: To successfully implement the chosen strategies, BEN should implement comprehensive solutions, in which solutions on the organization of production, management and finance- accounting are decisive to success of the strategies 4.2 CONCLUSION In market economies, the trend of globalization and international economic integration are being promoted, the enterprises in Vietnam in general and BEN Corporation in particular, to survive and develop, need to build a good and suitable business strategy Theme "Building Strategic Business Period 2011 - 2015 at BEN JSC” to address the main objectives, namely: The first objective: Analyze business environment, identify strengths, weaknesses, opportunities and challenges for the company The second objective: Develop and evaluate strategic alternatives, thereby selecting feasible business strategies for the company The third objective: Propose solutions to achieve strategic objectives in line with the actual conditions of the business in the period 2011 to 2015 The result is the reply to the first objective including: 68 GaMBA01.M0709 Graduation Test • Subject has achieved the purpose of analyzing the strengths and weaknesses of the company as well as the opportunities and challenges from the external environment which has big influence on development of the Company The identification of these factors helps the company overview their current situation for appropriate adjustment steps in the short term and in the period from 2011 to 2015 • Subject has mentioned the important elements necessary for planning development strategy of the company, particularly when the business of the Company are highly competitive, together with complex changes the world and domestic economy are challenges the company has to overcome and stand firm on the market The result is the reply to the second objective including: • Subject was based on the analysis and evaluation of the internal situation of the company, based on a comparison with competitors in a certain number of criteria • Subject was based on analysis of the external environment, finding out the factors as opportunities, as well as the factors as challenge for the business activities of the company • In the correlation of SWOT matrix between the combination among strengths and overcome weaknesses to exploit the opportunities and minimize external challenges, the subject has launched seven specific strategies These strategies not only help the company develop their activities according to objectives set out by 2015 but also orient long-term development of the company After the selection steps, the subject proposed five measures to implement integrated strategies in particular: Solution to implement market development strategy Solution to implement strategies on raising product quality and making difference Solution to implement the strategy of human resources development Solution to implement the strategy to restructure the organizational structure Solution to implement the other function strategies To be able to successfully implement the strategies, the research team would make some proposals as follows: 4.3 RECOMMENDATIONS 4.3.1 With the Government 4.3.1.1 In the context of the current economy, although the Government of Vietnam has many solutions to support enterprises to develop production and business, the Government should continue to have policies for macroeconomic stability, particularly to curb inflation, stabilize the dong exchange rate, and operate policies of the exchange rate carefully, not to shock the economic sectors, as well as affect the import businesses as current; have policies to reduce interest rates, not to tighten monetary policy by raising interest rates too high, affecting the business of the Company, not to encourage investment 69 GaMBA01.M0709 Graduation Test in manufacturing industry aside , but possibly perform a number of measures such as reducing credit growth, increasing the required reserve ratio for commercial banks 4.3.1.2 In the coming time, the state should continue to support small and medium sized enterprises of Vietnam on long-term loans, tax exemptions, import support, reducing the administrative procedures, bidding, buying and selling equipment, particularly the open policy for all economic sectors to participate in procurement projects of equipment in state management agencies, at the same time, carrying out the public and healthy bidding mechanism 4.3.1.3 The state should encourage and attract foreign and domestic investment in the field of information technology, create technological business environment, produce modern, dynamic and most developed technological products in Asian area, gradually build the brand for Vietnam in the technology sector worldwide, comparable to developed countries now such as India, China, Japan and so on 4.3.2 BEN Corporation In the study, the subject had raised a number of existing weaknesses in the company as well as threats and challenges from the external environment The proposed strategies are likely to limite weaknesses, threats and create conditions for sustainable development for the company in the coming period However, to implement all the proposed strategies is a great pressure So the company needs to have a lot of efforts in the process of implementing the strategies In the course of operation, the Management Board, Board of directors of the company should study and implement some weak points as follows: - Professional marketing department - Professional market research and development department - Not to equilize the Company to issue shares, not to exploit, look for other sources of the company to supplement charter capital increase for the company, while enhance the working capital to develop production business - Over the years the company has developed markets in the Northern provinces, as well as not to focus on developing markets in central areas - Continue to research and develop projects of new products bearing the brand of the business Above are the full text on analysis, evaluation and proposal of development strategies and measures to implement the strategy of BEN by 2015 The team hopes the strategy will be successful and make positive contributions in the development of the BEN Corporation We would like to thank the professional council who has many important ideas to contribute to the project / Hanoi, March 28th 2011 70 GaMBA01.M0709 Graduation Test Team 13 - Class GeMBA 0709 REFERENCES On 07/07/2007 at hand 07/CT-BBCVT Orientation Strategy on Information Technology and Communications Vietnam for the period 2011 to 2020’ Oriented development strategy on Information Technology and Communications Vietnam for the period 2011 - 2020 (referred to as "Strategy Loaded") - Ministry of Information and Communication Vietnam News Agency May 01/2011 thematic "Some predictions about the global economy" Peran Perose - "Overview of fiscal policy and public financial management"Economist of UNDP in Vietnam Dr Nguyen Xuan Thanh, "Public investment and capital budgets - Practices in Vietnam" Investment Law of the National Assembly of Socialist Republic of Vietnam No 59/2005/QH11 November 29, 2005 Bidding Law of the National Assembly of Socialist Republic of Vietnam No 61/2005/QH11 November 29, 2005 Nguyen Dinh Cung - Implement the Investment Law and Enterprise Law: Looking from the perspective of institutional reform Nguyen Minh Thuan, Nguyen Minh Phong - Current status and prospects of ODA attraction in Hanoi 10 Dr Le World, TS Liem Nguyen Thah "strategic management curriculum" Statistics Publishing House, 2009 11 Nguyen Minh Kieu, analyze financial statements and business valuation - Statistical Publisher, 2008 12 Besel Committee on Banking Supervision, the International Bank for payment, "Enhancing corporate governance for banking organizations" in 2006 71 GaMBA01.M0709 Graduation Test 72 ... implementation of strategy of the company, competitive strategy of the unit Support for the implementation of strategy of the SBU and company includes: o Marketing Strategy o Administrative Strategy. .. opportunities and threats of BEN From the analysis of the macro environment and industry environment of BEN, the opportunities (O) and threats (T) of BEN are drawn in the business operation of the Company... short-term profit of the business The choice of strategy depends on cultural aspects, political factors and the role of the strategic management board which is most dominant in the selection of strategy