Building business strategy in vietnam – italy steel joint stock company in period of 2015 2020

MBA THESIS BUILDING BUSINESS STRATEGY IN VIETNAM – ITALY STEEL JOINT STOCK COMPANY IN PERIOD OF 2015 – 2020 TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES LIST OF CHARTS, DIAGRAMS INTRODUCTION Preface Over the past years, Vietnam economy always reached the high and stable growth rate After Vietnam joined the World Trade Organization, Vietnamese enterprises have had opportunities to expand market, production scale and mark their position Apart from opportunities, they also face many threats Market fluctuations are quicker and more complicated and sale becomes more difficult The reason for this condition is that enterprises are supplying more and diversified goods for market Correspondingly, market requires products with higher and higher quality As a result, the competition to have customers is more and more violent Therefore, if enterprises want to have success in business, they are required to process new trading methods and new thinking Besides, they also must use supporting means to grasp and process information flexibly, apply scientific technology as well as propose suitable projects for each period If applicable, enterprises will take advantages in competition Enterprises also must understand the rules of market to be able to produce and sell more products, have quick capital turnover Besides, production reinvestment helps enterprises expand size widely and deeply In which, analyzing business environment and defining target market and building business strategy are matters of concern since they are core issues and control all of activities in enterprises Additionally, these issues are foundation for business administrators to make useful decisions with higher and higher economic efficiency as well as sustainable development In other words, strategy for trading and production is vital to enterprises Together with the growth of national economy as well as Song Da Corporation, Vietnam – Italy Steel Joint Stock Company (VISCO) has gained achievements and had significant contribution to Song Da Corporation in the past and Song Da Group at present in new level Nevertheless, during the process of deep integration to the regional and world economy, business environment will change much with quick speed If basing on advantages and production – trading experience in the past, VISCO will not survive and develop With the desire to have contribution in finding out orientation to maintain and enhance position of VISCO in the future; Based on gained knowledge from Global Advanced Master of Business Administration Program and working process in VISCO, our group selects the topic in line with the theme “Building business strategy in Vietnam – Italy Steel Joint Stock Company in period of 2015 - 2020” Object and target of the study: Based on the analysis of microenvironment, macro environment and production and trading activities in VISCO, the group will find out suitable business strategy to develop market and enhance competitiveness of products in market From that, VISCO will remain their position and ceaselessly develop to become leading steel production company in Vietnam as well as in the region in the future Scope of the study: - Studying space: Vietnam – Italy Steel Joint Stock Company and steel construction market in Vietnam - Studying time: This project focuses on researching production and trading of Vietnam – Italy Steel Joint Stock Company within past years (from 2007 to 2010) Methodology of the study: We mainly use the statistics, survey, methods to collect data, generalization and analysis Source of data: - Data of Vietnam – Italy Steel Joint Stock Company - Data of Vietnam Steel Association Implication: - In theoretical aspect: applying theories of building business strategy and competition theory for specific product in enterprises - In real aspect: being foundation to develop business, enhance competitiveness of VIS product - This topic can be used as reference for building business strategy of other industrial – commercial enterprises in the same sector Limitation: The topic only focuses on VIS product and scope in Vietnam – Italy Steel Joint Stock Company Expected result: - This project will evaluate strengths, weaknesses of Vietnam – Italy Steel Joint Stock Company as well as VIS product of the company It also evaluates business environment of steel products including competitiveness - This capstone project will build business strategy for VIS product in Vietnam – Italy Steel Joint Stock Company in period of 2010 – 2015 Structure of capstone project: Apart from the introduction, conclusion and references, the main content of the capstone project consists of three chapters: Chapter 1: Theoretical base of building business strategy of enterprise Chapter 2: Trading and production activity and business strategy of Vietnam – Italy Steel Joint Stock Company Chapter 3: Business strategy of Vietnam – Italy Steel Joint Stock Company in period of 2011 - 2015 CHAPTER I THEORETICAL BASE OF BUILDING BUSINESS STRATEGY OF ENTERPRISE 1.1 Concept and process of building business strategy 1.1.1 Concept about business strategy of enterprise The concept of “strategy” has been presented for a long time and it originated from military field At present, there are many concepts about strategy: According to Pred R David: “Strategy contains means reach to long-term goals” According to Haroid Kooniz and authors of the book “The main issues in management”, strategy is defined as an action program reaching specific objectives Main strategies of an organization contain goals and commitments in resources to reach these goals as well as main based policies when using resources According to Alfred Chandler: “Business strategy covers definition of long term basic target of enterprise, selection of method or action program and allocation of resources to implement that target” In general, if an enterprise wants to exist and develop, they have to pay attention to not only short term and mediate operation project but also activities in many incoming years as long term operation project Furthermore, enterprises need to understand and mitigate influences from external environment, promote strengths, overcome weaknesses and catch up with opportunities to take advantages Such long term thinking is called as strategic thinking Strategy is a plan orienting for future, is the spine for administrators to make decisions In which, business strategy imagines and describes activities of enterprises as well as maps out positive prospect for them Strategy contains targets, policies and a variety of actions Strategy solves unprecedented and unknown problems In the market economy, the existence of each enterprise is connected with many targets to implement mission and mark position in market In a nut shell, it orients to following basic three targets: - Earnings target - Position and strength target in market - Safety target In order to well implement three above targets, enterprises are required to build and conduct business strategy suitably Business strategy of enterprises has three levels regarding as corporate level strategy, business unit level strategy and functional level strategy - Corporate level strategy is comprehensive goals of enterprise in all aspects to ensure success in different sectors and areas - Business unit level strategy is the ones ensuring success for the enterprise (or branch) which that enterprise (or branch) only specializes on one sector or one area - Functional level strategy: is the one defining each operation area Function level strategies have functions as solution strategies to implement comprehensively strategic target of enterprises 1.1.2 Typical features of business strategy Business strategy defines goals and orientation of enterprise in relatively long term from to years Business strategy only drafts long term orientation, in practice; enterprises have to combine strategic goals with situation goals Every important decision in process of building, making decision, and organizing, monitoring, evaluating and adjusting strategy is concentrated by the most senior leaders of enterprise Business strategy is always built, selected and enforced based on comparable advantages of enterprise This requires enterprise to have accurate evaluation about their trading and production reality before building strategy Business strategy is introduced mainly and firstly for business sectors regarding as specialized, traditional and strong business sectors of enterprises As a result, enterprises have to build business strategy with thorough preparation 1.1.3 The role of business strategy Business strategy is the foundation to determine specific production and trading criteria and measure trading result In general, strategy includes three factor groups: - Factor group relates to business environment of enterprise - Factor group relates to reality and solutions of enterprise - Factor group relates to activities of Administration apparatus of enterprise We can say that, business strategy has particularly important role It decides failure and success of enterprises such as: - It helps administrators have a long term view - It is foundation for administrators to make accurate and in time decisions - It helps enterprises make use of available strengths, opportunities in the future to face up with, mitigate threats, recover weaknesses, maintain and enhance position of enterprises 1.2 Process of building business strategy Defining vision and mission for organization Analyzing external environment Analyzing internal environment Defining strategic goals Planning and allocating resources Forming strategy: - Corporate level strategy - Business level strategy - Functional level strategy - International business Taking strategy into effect and reaching integration Organization structure Diagram 1.1: Process of building business strategy 1.2.1 Step 1: Planning strategy, defining mission and orientated goals of enterprise - Planning strategy: is the cooperation and mutual support between strategists with participants in implementing strategy to: + Participants in strategy planning will understand more clearly about possibilities of built strategies with easy and simple implementation + Strategy implementers will understand more clearly about strategy when conducting strategy + Enhancing feasibility of introduced strategies - Defining mission of enterprise: Mission is understood as the existence reason, meaning of foundation and existence of enterprise Mission of enterprise is their declaration with respect to society Normally, mission includes contents as customers, products or services, market, technology, philosophy, interest to community and officials Furthermore, mission demonstrates general prospect in the future of enterprise Mission is important base for selecting goals and development strategy for enterprises - Defining goals of enterprise: goal is the concretizing of content, as the mean to implement declaration about mission of enterprise 1.2.2 Step 2: Analyzing environment Business environment of enterprise includes internal and external environment with direct or indirect influences to the existence and development of enterprise Therefore, researching internal and external environment is imperative in planning strategy of enterprise 1.2.2.1 Analyzing internal environment Internal environment of enterprise includes factors which enterprise can control certainly as: management, production, finance, accounting, material supplying, marketing, public relationship, human resource and information system Internal environment factor analysis will make enterprise define strengths, weaknesses to introduce suitable strategy with implementation capacity in near future 10 3.2 Foundation for selecting strategy We set up development strategy for Vietnam – Italy Steel Joint Stock Company to 2015 on following foundation: - Basing on real situation of national and international construction steel market to 2015 - Basing on reality of Vietnam – Italy Steel Joint Stock Company to propose strategies making use of strengths and mitigating weaknesses - Basing on International economic integration of Vietnam - Basing on orientation and development planning for Vietnam Steel sector in period of 2007-2015, prospect to 2020 and 2025 3.3 Forecast on market demand It is essential to have right evaluation for market demand since it is foundation to plan business strategy According to forecast of Ministry of Industry and Trading, demand on finished steel in Vietnam in 2011 is 11-12 million tons; in 2015 is 15-16 million tons; and in 2025 is about 24-25 million tons 3.4 Planning business strategy for Vietnam – Italy Steel Joint Stock Company to 2015 3.4.1 Analyzing the main strategic projects From SWOT analysis, we propose some following main strategies: 3.4.1.1 Forward combination strategy - This is strategy controlling or supervising distributors At present, with respect to national distributors, VISCO entirely can control as VIS trademark has had position in Vietnam construction steel market especially project market with qualified product and healthy finance Conversely, with respect to foreign distributors, VISCO has not been able to control them as VIS product is not well known in foreign countries - Therefore, with national distributors, VISCO continues maintaining and expanding distribution system to expand domestic market share On the other hand, 47 this strategy also promotes advertising for VISCO by means of big board in stores With about foreign distributors, VISCO must pay attention to setting up trademark in foreign countries, improving product quality, enhancing the relationship and looking for many new distributors to gradually improve VISCO prestige in international market - From reality of Vietnam Steel Industry as well as public means of media, weakness of Steel Producers in Vietnam as distribution system At present, there are a few strong distributors while the number of producer is contrary As a result, distributors cause pressure on producers with the aims of reducing price with high discounting support If the producers not apply, the distributors can cooperate together not purchasing or using substitute ones Therefore, VISCO still has potential risks in distribution if they not have more active channel by locating in key areas as Hanoi, Vinh, Da Nang, and Ho Chi Minh City Representative offices or branches of the company can sell directly to create position to all distributors 3.4.1.2 Backward combination strategy - Backward combination is strategy controlling and supervising suppliers VISCO has to establish closer relationship with suppliers to have stable supplying source and competitive price by means of signing long term contract, supporting finance Nevertheless, to implement this strategy, VISCO is required to have strong financial capacity, big revenue and stable growth - With respect to construction steel product, the germ makes up 90% in cost price structure Product quality also depends on germ quality of suppliers and germ export faces up with much risk such as: the time since signing germ purchase contract, open L/C and import germ is about 25-30 days in average (with respect to countries in Asia), with about Russia, Uraina, Turkey, producers spend about 40 -50 days on importing germ With such long time, the business strategy in the purchase time can be different from reality - Although VISCO had right investment direction to germ production factory, the factory has not promoted all capacity It is resulted from that the company has difficulties in purchasing input material, quality and transportation operations 48 - With this backward combination strategy, VISCO is required to focus on the two main sectors: germ and scrap 3.4.1.3 Horizontal combination strategy - Over the past years, especially in 2010, VISCO made use of production capacity with 250.000tons/year Nevertheless, steel supplying for market is always in shortage Therefore, some projects and customers have to purchase another steel kind matching progress in contract If VISCO does not improve this condition, the company will lose market and customers The company also has obstacles in expanding one more factory when Prime Minister and Ministry of Trading and Industry had documents not issuing license for new steel projects since October 2010 As a result: - VISCO can re-purchase and joint venture with enterprises within sector This project helps VISCO reduce initial investment, focus on renovating and exploiting based VISCO strategy - On the other hand, joint venture will create bigger production capacity, meet more types of product, balance resource, strengths of the company, and approach foreign markets as well as research market more effectively Specially, joint venture with foreign companies also provides management level, product quality, technology and market for VISCO with positive results 3.4.1.4 Product development based concentrated growth strategy - Product development is strategy raising revenue by improving or modifying available products to enhance consumption in market as well as meet demand of market in the future - According to research in Vietnam Construction market, there have been positive transitions over the past years when foreign investors and contractors penetrate Vietnam Construction projects have increase in scale with high buildings designed anti-earthquake As a result, demand on using high intensive steel has significantly increased namely SD490, RB500W, and BS449 49 - VISCO needs to enhance for research and development in expenditure, human resource and equipments to create higher quality product The company can base on support from national and foreign institutes and universities 3.4.1.5 Market penetration based concentrated growth strategy - The company should enhance for advertising, promotion, customer care to improve their available market share - VISCO also invites professional marketing companies to consult and support their marketing activity 3.4.1.6 Market development based concentrated growth strategy - With respect to domestic market: improve distribution system, provide products to remote areas where people still use unqualified, false products of small enterprises Instruct consumers by means of films or reportage and coordinate with local construction departments - With respect to foreign market: Enhance promotion activities, look for partners, participate in exhibition, appoint officials to survey market and seek for partners basing on close cooperation with Embassy and Trade Representative Office of Vietnam in foreign countries 3.4.2 Selected strategy From the mainly feasible strategies set up above by analyzing, using Quantitative Strategic Planning Matrix (QSPM), QSPM matrix makes use have objective assessment for possibly alternative strategies As a result, we can choose suitable one The foundation for marking classification is the same to external factor evaluation matrix The attractive score in matrix is the combination between theory and consideration of experts And total attractive score will provide objective and positive conclusion for VISCO We can select the main strategies for the development of Vietnam – Italy Steel Joint Stock Company to 2015 as following: - Period of 2011-2013: The most suitable strategies are: reorganization strategy, market penetration strategy especially the South and Central market (increasing the consumption density of civil market), product development strategy, market development strategy combined with horizontal development strategy At 50 present, VISCO is a young producer one and their market share has not been solid It is essential for them to conduct strategies mentioned in period of 2011-2013 to gradually improve potential and competitiveness in market - Period of 2013-2015: The most suitable strategies are: horizontal development strategy, backward combination strategy and forward combination strategy To this phase, VISCO has enough capacity in internal force, management experience, prestige to attract, control suppliers, distributors with interest On the other hands, with the world economy integration trend, VISCO will better out of domestic market; exploit regional and international market step by step Horizontal combination strategy is suitable for VISCO to have more success in new phase 3.5 Strategic solutions for Vietnam – Italy Steel Joint Stock Company to 2015 With analysis of activities and sector environment in Vietnam – Italy Steel Joint Stock Company and planning development strategy for the company to 2015, we propose some following solutions to contribute for better implementation 3.5.1 Solution on marketing Establishing marketing strategy for each line of products - Setting up marketing strategy for lines suiting each market area and kind of customer - In order to maintain and develop the brand, it is necessary to invest and build up the most effective advertising project so that VISCO steel brand becomes the popular and trustworthy sound for consumers Advertising cost must be considered as “investing capital for brand”, or the fixed investing item (which is depreciated year by year) - Increasingly strengthening popularizing task in the media like the central and local television, big posters or in sponsoring activities… Viet-Italia steel brand is so famous in the market of projects, which is believed to use for the national scale project by investors, tenders and consultant agents Meanwhile, most of households using the products not remember and realize This makes profit limited 51 The solution of cutting cost to exploit civil market: - The civil market is almost not exploited although the ability of payment in this market is so fast with stable yield and widespread feature As a result, VISCO wants to expand the marker share VISCO should concern much about the civil market through the production line at average price, aiming to the customers with low and middle income who have limited knowledge on steel - With the strategy on middle price, in order to guarantee profit, the company needs to have solutions to reduce manufacturing cost but ensure quality like: heightening skills of workers so as to raise working productivity, reduce salary cost, reduce material waste rate; finding the input materials with competitive price; checking to eliminate the processes without value…to reduce price per product unit - Besides that, VISCO should still maintain and keep market share in project market because this segment has been bringing a lot of profits like increasing revenue, interest and higher value of the brand VISCO VISCO needs to survey and research market to give a competitive price in comparison with rivals and imported products as well as ensure high profit rate When penetrating different markets, VISCO ought to give flexible prices for each For example, in Ha Noi, Da Nang… VISCO can select the high price; in others, the price can be middle with a few changes - The price resolution not only maintains profit for the company, but also helps it penetrate the markets more effectively Distributing solution - Open branches and stores in the key markets to distribute products in order to reduce unfavorable pressure from distributors as well as to update information about market - Plan to take part in fairs and exhibitions inside and outside the country to find more distributors and popularize the brand - Speed up selling online products which is more and more popular distributing model in the world since it saves time and cost 52 - Sign the long-term contract with big and prestigious distributors and customers, at the same time create supporting policies like credit provision, strategic share holders, and bonus…to cut down the case distributors find other suppliers In such competitive market, the risk of losing distributors is totally high 3.5.2 Solution on finance - The financial potential of VISCO is rather strong with high financial indexes gaining considerable appreciation from investors VISCO should take this advantage to mobilize financial sources from outside forces through new projects with feasibility However, VISCO also considers reasonable mobilization, avoiding dependence on outside too much - Liquidity of VISCO is evaluated well compared with other firms in the same industry In one hand, it attracts the suppliers, in other hand; it makes unreasonable cost due to keeping big liquid asset Hence, VISCO should recheck the term of payment for each supplier group to reduce debts to banks - Carry out fixing cost toward each department, set up award and bonus policy for those who use fewer items in order to stimulate parts to find solutions to cut down cost as well as price of completed products - For the main distributors, the company should make policy on supporting credit like: proper depreciation depending on time of payment, if distributors get stuck in finance, the payment deadline can be lasted… 3.5.3 Solution on human resource - Strengthen qualifications of human resource because the rate between high qualified employees and the whole laborers in VISCO is not high They can send employees to training courses or recruit new ones, giving priority to high qualification candidates for R&D, personnel, marketing, import-export business departments - Suitable salary and treatment policy to keep talented officers in VISCO simultaneously attract qualified employees from outside Doing like that will meet the demand of human resource for development of VISCO - Keep income with the working result of employees; reward the case of 53 norm excess, especially for business and marketing departments in order to encourage their effort - Build up corporate culture, create condition for closer relation among employees and cadres as well as keep strong attachment of customers to VISCO 3.5.4 Solution on production and operation 3.5.4.1 Solution on materials - As mentioned above, steel rough is the main material in production, making up 90% of cost price VISCO now has to import 60% of steel rough, so the cost price is still high The company also has to face up abnormal impact from the market, so production gets much difficulty For the future, it is absolutely essential to invest a steel rough production line, which has survival meaning for the development of VISCO VISCO not only is totally active in providing steel rough for production, so the price of steel rough will be much cheaper than selling outside, but also can compete with other companies manufacturing steel rough like: Thai Nguyen steel company, the South steel company and Hoa Phat steel company besides Viet-Australia, Van Loi, Cuu Long, Dinh Vu companies which have invested, are being built and will supply steel rough in the coming time Taking long-term profit as fundament of VISCO, they have invested a factory manufacturing steel rough in Hai Phong with the productivity of 400.000 tons/year Since the end of 2009, in the period I, the factory has run officially and provided the steel rough for laminating factory This factory will increase its productivity and since 2011 the company will have supplied for themselves totally After the period I, VISCO will research to expand the steel rough refining factory and increase the productivity to 500.000 tons/year in order to provide to both inside and outside markets So as to ensure material source for the steel rough refining factory, VISCO will appoint representative to foreign countries in order to collect wastage and accessories - VISCO needs to find the wholesale suppliers and negotiate about price as 54 well as relevant items to guarantee the input materials which have good and stable quality, competitive price, stable supplied volume, and fast delivery to reduce storing cost… VISCO needs to sign the long-term contracts so that suppliers keep their mind on the work After all, VISCO will reduce price and improve competitive ability in market - The company should apply the solution of entrusting concretely the purchasing department with the cost of materials in order that they are active in operating There should be rewarding and punishing regulations so that they are stimulated to strengthen working effectiveness 3.5.4.2 Solution on manufacture Cut down manufacturing cost: - Proper production plan to exploit maximum productivity of machines, pay attention to reduce price of products by limiting to the lowest waste level, cut down unnecessary processes without creating value - Stimulate engineers, officers…to research solutions to enhance working capacity, replace imported machines and equipments to save money - Save materials, fuel (electricity, F.O oil, metal) and other costs to cut down products: * Save metal: In order to keep metal waste at the lowest level, it is necessary to carry out the following issues: - Utilize good quality steel roughs guaranteeing technical standard and right size - Adjust and shorten the time of firing steel rough in kiln to reduce the rate of fired metal waste Regularly check and clean equipments to reduce maximizing problems during laminating process * Save consumed electricity: - Heighten quality of electricity supplying system - Reduce process or stop production in peak hours Basing on breaking down 55 level and time of fixing, operators can cut down some unnecessary additional charges For the problem taking over hours, it must cut down electricity-using devices and electricity for lighting in unimportant places - For the problems taking over 05 hours, the engines with large consuming power must operate without additional charges and some starting easily should stop * Using coal gas in stead F.O oil: According to design, roll steel burning of VISCO uses FO oil, and current fuel lost is about 35.5 kg/ton of product with the cost of 400.000 VND/ton of product Since VISCO has been gaining many achievements in coal gas technology, the company moves to use lump coal 4b Quang Ninh In estimation, the coal escape is about 70 kg/ ton of product, the metal loss and expenditure on fuel will be reduced with the value of 200.000 VND/ton of product Improving product quality Improving product quality is leading and important factor for existence and development of VISCO It is demonstrated obviously in: - Product quality is decisive factor for competitiveness of enterprises in market It also creates prestige and reputation for long term development - Improving product quality means to improve social labor productivity Thanks for increase of product quality, use value and economic interest per one input cost unit is high As a result, input material and production cost will be declined as much as possible Improving product quality is also a useful method to enhance trading effectiveness in VISCO - Product quality is important tool in improving and enhancing competitiveness capacity of each enterprise - Product quality is formed during process from preparation, production to storage Therefore, enterprise needs to implement methods to monitor product quality as following: Input germ quality examination: to ensure product quality, the company has to have close examination for input germ quality When importing germ, they 56 are required to consider origin, geometric dimension, surface and chemical component Input germ must reach Vietnam production standard and other international standards + Production technology examination + Examination for quality of final product: when rolling, KCS department has to check sample Furthermore, batch has to reach standard in quality, weight, package model In order to enforce stipulated requirements about quality, VISCO mush have methods, policies and targets regarding as: - Ordaining regulations and monitoring procedure in production technique - Issuing principles encouraging labor in productivity enhancement as well as product quality improvement with good treatment - Well implementing quality management system ISO 3.5.4.3 Solution on quality management Applying product quality management systems: - Environment management system certificate ISO 14000 - Applying advanced management tools: 5S, Kaizen, Statistical Process Control, Failure Mode and Effect Analysis FMEA 3.6 The roadmap for implementing strategy No Strategy 2011 Reorganization and market penetration Product development Market development Forward combination Backward combination Horizontal combination 3.7 Recommendations 3.7.1 To State 57 2012 2013 2014 2015 - Do not encourage importing in mass meanwhile national steel products are in redundant - Promote quality management system to control imported steel quality - Apply automatic import license as well as control C/O (certificate of origin) matching to content to define origin - Encourage national enterprises manufacturing mill to meet demand of domestic market - Have encouragement policies to enhance construction projects - State needs to have many control methods as: quality of steel in market, anti fake products and preventing from tax lodge 3.7.2 To Sector Sector needs to promote the role of Steel producer association to support to each other, compete with regional and international competitors Annually, association should organize more conferences for enterprises in sector to have contribution, cooperation and develop general strategies Sector also mitigates competitiveness, focus internal forces to compete with enterprises in the world Basing on development orientation and forecast on product demand of VISCO, we built development goal of VISCO to 2015 Furthermore, by means of analyzing solutions and recovering factors influences to VISCO as well as evaluating the interactive relation among factors; we defined following strategies: • Forward combination strategy • Backward combination strategy • Horizontal combination strategy: • Product development based concentrated growth strategy: • Market penetration based concentrated growth strategy: • Market development based concentrated growth strategy: To increase the feasibility of strategies, these strategies have to be selected or combined in comprehension During the implementation process, the company should frequently monitor to have suitable adjustment to specific conditions 58 CONCLUSION Business strategy planning has vital implication for each enterprise It is useful method for enterprises to use resources effectively as well as define right direction in the development process In such fluctuated business environment, if enterprises only depend on previous advantages without adapting to changes, they will face up with many difficulties in marking position and developing In fact, there are few enterprises in Vietnam planning their development strategy honestly and scientifically Basing on analysis of external and internal factors to define strengths, weaknesses, opportunities and threats; we analyzed possibilities and recover those factors We also proposed the key business strategies as following: • Forward combination strategy • Backward combination strategy • Horizontal combination strategy: • Product development based concentrated growth strategy: • Market penetration based concentrated growth strategy: • Market development based concentrated growth strategy: Implementing flexibly and comprehensively above solutions will bring positive results, increase prestige and market share of Vietnam – Italy Steel Joint Stock Company in market Nevertheless, during implementation process, the company should frequently monitor to have suitable adjustment to specific conditions Business strategy planning is difficult and complicated Therefore, with limited capacity, this capstone project has many mistakes Our group wishes to receive contribution of teachers and friends for more completion REFERENCES Pham Lan Anh (2000), Strategy Management, Science and Technique 59 Publisher Ministry of Planning and Investment about growing rate of Steel industry http://www.mpi.gov.vn/ttkt-xh.aspx?Lang=4&mabai=1415 Ministry of Science and Technology http://www.most.gov.vn/Desktop.aspx/Van-ban-KHCN/Quochoi/68B8D9AB4F534366BA506EA95CF279BF/ Ministry of Finance http://www.mof.gov.vn/Default.aspx?tabid=612&ItemID=38660 Trading result reports and financial statements – Vietnam – Italy Steel Joint Stock Company in period of 2007-2010 Thai Nguyen Iron and Steel Joint Stock Company http://www.tisco.com.vn/?f=Distribute&op=6&p=6 Vietnam Steel Joint Stock Company http://www.thepviet.com.vn/news.php?cat=5 Vietnam – Italy Steel Joint Stock Company http://www.vis.com.vn Vietnam – Australia Steel Joint Venture Company http://vinausteel.com.vn/vn/aboutus.aspx?pageid=108&pid=4 10 Hoa Phat Steel Company http://www.hoaphat.com.vn/Home/About.aspx?id=0 11 Vietnam – Korea Steel Company http://www.steelvps.com.vn 12 State Records Management and Archives Department of Vietnam http://www.archives.gov.vn/Thongke/ 13 Vietnam Communist Party http://www.dangcongsan.vn/cpv/Modules/News/Search.aspx 14 Associate Professor Doctor Nguyen Thi Lien Diep (1995), Business Strategy and Policy, Statistics Publisher 15 Associate Professor.Doctor Nguyen Thi Lien Diep (1997), Management, 60 Statistics Publisher 16 Associate Professor Doctor Le The Gioi – Doctor Nguyen Thanh Liem – Master Tran Huu Hai, Strategy Management, Statistics Publisher 17 Hill, M., Ireland, R., and Hoskinsson, R.,7/e, 2007 Thomson Sơưthwestern 18 Doctor.Nguyen Thanh Hoi, Doctor.Pham Thang (2005), Management, Statistics Publisher 19 http://www.mckinseyquarterly.com./home.aspx 20 http:/harvardbusiness.org/resources/strategy 21 http://www.strategy-business.com/strategy_and_leadership 22 Nguyen Huu Lam, Dinh Thai Hoang, Pham Xuan Lan (1998), Strategy Management – Competitive advantage Management, Education Publisher 23 Associate Professor.Doctor Ngo Kim Thanh (2009), Strategy Management, National Economics University Publisher, Ha Noi 24 Doctor.Vo Thanh Thu (1996), foreign economy, Statistics Publisher 25 Central Statistical Office of Vietnam http://www.gso.gov.vn/default.aspx?tabid=387&idmid=3&ItemID=4679 26 UNDP(United Nations Development Programme) http://www.undp.org.vn 27 Central Economic Research Institute http://www.ciem.org.vn/home/vn/home/index.jsp 61 ... business strategy of Vietnam – Italy Steel Joint Stock Company Chapter 3: Business strategy of Vietnam – Italy Steel Joint Stock Company in period of 2011 - 2015 CHAPTER I THEORETICAL BASE OF BUILDING. .. which Vietnam – Italy Steel Joint Stock Company is protected and using: 20 Vietnam – Italy Steel Figure 2.1: Logo of Vietnam – Italy Steel Joint Stock Company Figure2.2 Big board of Vietnam – Italy. .. process in VISCO, our group selects the topic in line with the theme Building business strategy in Vietnam – Italy Steel Joint Stock Company in period of 2015 - 2020 Object and target of the