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STRATEGY FOR FRESH CONCRETE PRODUCT, HAI PHONG CONCRETE AND CONSTRUCTION JOINT STOCK COMPANY IN THE PERIOD 2015 – 2020 NON-PLAGIARY COMMITMENT This is the work of my own research, the results and data in the essay is collected by myself, research and apply their knowledge to complete I hereby declare that all content is presented throughout the study, my analysis of field research thesis registration I will take full responsibility commitments i TABLE OF CONTENT TABLE OF CONTENT ii LIST OF CODES AND ABBREVIATIONS vi Enterprise .vi Revenue vi Hai Phong Concrete and Construction vi Jont stock Company .vi Jont stock vi Fixed assets vi Profit vi Business Income .vi Limited vi Customer vi Business Income .vi vi LIST OF TABLES vii LIST OF FIGURES viii Figure 1.1 Diagram the process of developing business strategy .viii Figure 1.2 Diagram of elements of Michael E.Porter viii Figure 2.2: Concrete mixing and transporting truck viii Diagram 2.1: Diagram of commercial concrete production viii INTRODUCTION CHAPTER 1: THEORICAL BASE OF PRODUCT STRAGIC OF THE ENTERPRISE 1.1 The concept and role of business strategy 1.1.1 The concept of business strategy 1.1.2 The role and significance of strategy for enterprises 1.2 The concept of and product strategy 1.2.1 The concept of product 1.2.2 The concept of product strategy ii 1.2.3 Position and Role of product strategy .9 1.3 Strategy fomulation Process .9 Figure 1.1 Diagram the process of developing business strategy .11 1.3.1 Vision, mission and values 11 1.3.2 Analysis of the external environment 14 Figure 1.2 Diagram of elements of Michael E.Porter .17 (Source: Writer’s collection) 17 1.3.3 Analysis of the internal environment of the enterprise 19 1.3.4 Identifying the mission and targets of the strategy 21 1.3.5 Formation and strategic options 24 1.4 Factors affecting the strategy development process 25 1.4.1 Matrix assess internal factors (IFE - Internal Factor Evaluation Matrix) 25 1.4.2 Matrix assess external factors (EFE - External Factor Evaluation Matrix) 26 1.4.3 Strategy construction: Strength-weakness Matrix, Opportunity-Threat Matrix (SWOT) 27 1.4.4 Matrix strategic positioning and performance assessment - SPACE Matrix (Strategic Position & Action Evaluation Matrix) 29 Figure 1.3: Matrix SPACE 30 1.4.5 Quantitative Strategic Planning Matrix (QSPM) 30 1.5 Construction of researching methods for subject 31 1.5.1 Method of reseaching scope selection 31 1.5.2 Method of data collection .32 1.5.3 The method of data analysis 32 Summary of Chapter 32 2.1 Overview of Hai Phong Concrete and Construction Joint Stock Company .34 2.1.1 History of the formation and Development of the Company 34 2.1.2 The functions and duties of the company 34 2.1.3 The tructure of the organization of Hai Phong Concrete and Building Joint Stock Company 35 2.1.4 The results of business activities and the company's market in 2011-2014 39 2.2 Situation analysis of business activities of HCC 41 iii 2.2.1 The financial situation in HCC 41 2.2.2 The situation of the business results of HCC 46 2.3 Assessment of the status of production and business activities in Haiphong Concrete and Construction Joint Stock Company 47 2.3 The result .47 In this section the respondents were asked to estimate the use attribute rating scale from to including 1: strongly disagree with the quality of service provided and 5:very agree with the quality of service provided 47 2.3.2 Assessment of the status of production and business activities of the company 48 2.4 Analysis of the factors affecting product development strategy of the company 49 2.4.1 Analysis of macro-environmental factors 49 2.4.2 Analysis of micro-environmental factors 52 2.4.3 Analysis of internal factors of the company .56 Figure 2.2: Concrete mixing and transporting truck 59 Diagram 2.1: Diagram of commercial concrete production .60 Summary of chapter II 64 3.1 The purpose, the meaning of establishing product strategy for the company65 3.2 The company's development direction 65 3.3 A number of solutions to build up product strategy at HCC in 2015 – 2020 66 3.2.1 The tools to establish the strategy .66 3.2.2 The strategy execution solution 72 CONCLUSION .76 LIST OF REFERENCES .78 APPENDIX 79 Mark or on assessment scores with corresponding scores below:(1) Not important; (2) Not very important; (3) Normal; (4) Important; (5) Very important 82 iv LIST OF CODES AND ABBREVIATIONS DN Enterprise DT Revenue HCC Hai Phong Concrete and Construction JSC Jont stock Company CP Jont stock TSCĐ Fixed assets Profit LN Business Income TNDN Limited TNHH Customer 10 KH Business Income 11 SXKD v LIST OF TABLES Page Table 2.1: Target production and business results in 2010-2014 39 Table 2.2: Structural analysis and volatility of the assets 42 Table 2.3: Structure and fluctuating funnding in 2013-2014 Table 2.4: Analysis of business results in 2013-2014 Table 2.5: The table reviews the criteria for concrete products of HCC 44 46 48 Table 2.6: External factor evaluation matrix of the company (EFE) 55 Table 2.7: The situation of the structure layout of company Table 2.8: List of machinery and equipment Table 2.9: Internal factor evaluation matrix (IFE) Table 3.1: SWOT analysis for Haiphong Concrete and Construction 57 58 64 68 joint stock company Table 3.2: Analysis of QSPM matrix of Haiphong Concrete and 70 Construction JSC vi LIST OF FIGURES Figure 1.1 Diagram the process of developing business strategy Figure 1.2 Diagram of elements of Michael E.Porter Figure 2.1: Organization structure of the company Figure 2.2: Concrete mixing and transporting truck Diagram 2.1: Diagram of commercial concrete production vii Page 11 17 35 59 60 INTRODUCTION Urgency of the topic In the trend of development nowadays, business strategy plays an important role for the survival and development of enterprises Business strategy helps businesses identify their purpose and direction, which is the basis and guideline for all activities of the enterprise Besides that, when business environment condition changes and develops rapidly, business strategy will facilitate enterprises to get and take advantages of business opportunities, and actively seek solutions to overcoming challenges and threats in the market competition In addition, business strategy also contributes to improving efficiency of resources and enhancing the competitive position to ensure the continued growth and sustainability of the firm Finally, the development and implementation of business strategy also create a solid basis for policies and decisions consistent with the fluctuations of the market Practical operation of many businesses shows that if a business has right business strategy with broad vision, create action thought towards specific strategic goals, it can stand and succeed in competitive environment today, and otherwise it will fall into standstill, operate inefficiently or go bankruptcy In the strategy of the whole enterprise, strategy plays a very important role It is the basis for building and implementing other strategies and plans such as investment strategy for development, pricing strategy, distribution strategy and promotion strategy With the advantages of commercial concrete, today demand for commercial concrete for large projects is increasing Doing business on commercial concrete of Haiphong Concrete and Construction JSC has achieved certain successes However, nothing ensures a sustainable future for the company in the context of complex market volatility as today Therefore, research on strategy for Haiphong Concrete and Construction JSC is a necessity in order to bring efficiency in the ion and distribution of to generate revenue and profit for the company Understanding the importance of this matter, The author chose the topic named:"Strategy for fresh concrete at Hai Phong concrete and construction Joint Stock Company" to be my Master thesis with the desire to contribute little practical experience for the company and myself Purpose of research This study aims at researching actual fresh concrete business situation at Hai Phong Concrete and Construction Joint Stock Company and then suggesting strategic plan for development of fresh concrete at Hai Phong Concrete and Construction Joint Stock Company in the period 2015- 2020 The study is implemented to: Evaluate the business and jion activities of fresh concretes at Hai Phong Concrete and Construction Joint Stock Company Research competitors of the company and find out competitive advantages of its fresh concrete compared to its rivals’ Assess strengths, weaknesses and opportunities and threats to the company business Strategy for ready-mix concrete Hai Phong Concrete and Construction Joint Stock Company in the period 2015- 2020 Object and scope of research Objects of the study: + Fresh concrete of Hai Phong Concrete and Construction Joint Stock Company + Business operation at the firm including data of years from 2012 to 2014 + The factors of external environment affecting the company's activities Scope of the study: + Space: the study was conducted at Hai Phong Concrete and Construction Joint Stock Company + Time: from 2014 to 2020 Research methodology Methods of collecting and analyzing data in order to: Identify operational situation, the competitive position of the company over its rivals on Hai Phong market have the good judgment of its products in the market The work needs to continue implementing: - Establishing separate information department, the department is responsible for collecting and synthesizing information provided by each department, then processed, drawn comment as a basis for decision-making to board of directors Strengthen internal networking system to exchange smoothly and more quickly, from which the company has internal management plans more effectively and timely processing of the the process works the company encountered Encourages the Department and each employee mutualy exchanges information and focus on the importance of collecting information about the objects that they are responsible for the management (including all the information about the market, customers, suppliers and competitors ) In product strategy, system information also plays a very important role in studying and accessing to advanced technology, scientific level-modern techniques, about the needs of the market, the needs of the consumers of products, speed to pursue and the ability of current and potential competitors , from which the company has to make the right decisions about the existing products on market as well as improve the quality of the company's current products 75 CONCLUSION By analyzing the general situation of business activities of Haiphong Concrete and Construction JSC, the efforts of a team of dedicated staff and the efforts of the leadership of the Company HCC has achieved certain achievements: building a strong brand in the industry to offer concrete and build the foundation of works, products with high quality and stability to meet the customer's requirements, always towards perfection , ready to serve with the whole service from the drafting of the plan, design with a reasonable price to bring to a firm foundation for the works, However, besides the company still have some weaknesses: we are not expanding the market in many other provinces, market activities are still limited and the market is not yet large enough so the investment vehicles are limited To achieve goals for business activities set out to 2020, HCC should invest much more the work of research and development of new products, with superior features to expand into many other markets To achieve these objectives, in addition to the efforts of the Board of Directors requiring the efforts of cadres and workers with the spirit of the strategy taken seriously In the business operations of each enterprise, construction and strategy selection of products is a matter of utmost significance, because it has the location and very important role, is the basis for building and implementing the comprehensive development plan of the enterprise Issues raised with respect to the company's need to plan an effective product strategy helps company respond flexibly to the changes of the business environment, overcome the challenge, winning the active integration and competitiveness to go up With this reality, the author has chosen the subject: "Commercial concrete development strategy of Hai Phong Concrete and Construction JSC in 2015 - 2020" with the desire to contribute a small part to the company and also to have more practical experience after school To creatively apply in specific circumstances, the thesis was to examine the most common problems of product strategy of the enterprise in the market economy On the basis of analyzing the external business 76 environment and internal environment of the company combined with the general theoretical basis for planning and choosing a product strategy for the company The content of the thesis can not avoid certain restrictions I am looking forward to receiving the share, feedback from teacher colleagues to make the thesis more complete 77 LIST OF REFERENCES Fred R.David (2000), Outline of strategic management, Statistics Publisher, Hanoi Do Thi Tuyet (2008), Strategic management lecture, Can Tho University Nguyen Toan Binh (2000), Business activity analysis Ho Chi Minh National University Publisher Philips Kotler(2001), marketing management, Statistics Publisher Nguyen Van Dinh (2005), Syllabus of Business Administration Insurance – National Economics university Ngo Kim Thanh (2009), Strategic Management Syllabus, National Economics university Le The Gioi, Nguyen Thanh Liem & et al , Strategic Management, Publisher Statistics, Hanoi, 2009 Report revenue in 2011, 2012, 2013, 2014 by Haiphong Concrete and Construction JSC www.quantri.vn 10 www.hcc.vn/Index/Trangchu.aspx 78 APPENDIX APPENDIX STAFF SURVEY PART I: INFORMATION ABOUT COMPANY The level of disadvantages/advantages when the new company? (Answer all lines) Specific assessment score as follows: (1) very hard; (2) harder;(3) normal; (4) favorable; (5) very favorable Level of assessment Lack of capital The lack of raw materials Lack of sale network / marketing / distribution service / packaging Lack of marketing skill Lack of needed machinery / equipment Difficulty in finding the appropriate manufacturing location Complicated / difficult permit procedures Lack of skilled labor Lack of development services / business consult The lack of associations/appropriate organizations Other reasons The level of support enterprises get to overcome the difficulties ? Specific assessment score as follows: (1) absolutely not received; (2) A little; (3) normal; (4) Much; (5) Very much Level of assessment The granted authorities State Commercial Bank State enterprise The non-governmental abroad organizations, donors The unions Private Banking / other private companies Friends, family/relatives Business Association Other 79 PART II: EVALUATION OF THE ACTIVITY OF THE COMPANY Please review about the activity of the company ? Mark or on assessment scores with corresponding scores below: (1) Very limited; (2)limited; (3)normal; (4) good; (5)very good The level of assessment Product design The ability to innovate product design The ability to improve and add new features of the product The ability to develop new products Technique / production technology The ability to design / select appropriate and effective production process The ability to control the process - production technology The ability to acquire and apply new technical advances and manufacturing The ability to improve manufacturing processes The ability to access and transfer techniques / technologies The ability to develop new production technologies The ability to diversify products Controlling cost and quality The ability to establish and maintain stable and longterm relationships with suppliers The ability to control the purchase price of inputs The ability to develop new raw material sources more efficiently The ability to manage machinery The ability to lower the cost of production The ability to control product quality Marketing and customer service The ability to detect new needs The ability to penetrate new markets The ability to promote the image / product of company The ability to control distribution channels 80 The ability to provide information about the product / service to customers Leadership / Strategy Clear strategic objectives The strategic goal is associated with the action plan The strategy has made it clear the order of priorities in the enterprise The management decisions are made based on strategy The determination of objectives, developing policies and procedures to be implemented at all levels There mission statement, principles and purpose of official activities The process of checking eriodically update of the strategy periodically 2: Mr / Mrs evaluate their overall satisfaction on the performance of company? Mark or on assessment scores with corresponding scores below: (1) Not dissatisfied; (2) Not very dissatisfied; (3) Normal; (4) Satisfied; (5) Very satisfied The level of assessment The growth of the market share of the Company The growth of income / profit of the Company The growth of revenue of the company The stability of the company The products of the Company Technical / Technology Company Cost of Company Marketing and customer service The financial capacity of the company Management system of the Company Strategic issues/ leadership Employee The support of the State, local governments The competitiveness of the Company The overall success of the company 81 3: Please determine the level of important factors to ensure the success of enterprise's competitiveness: Mark or on assessment scores with corresponding scores below:(1) Not important; (2) Not very important; (3) Normal; (4) Important; (5) Very important The level of assessment Prices of products / services Quality of products / services Designs / models of products / services Distribution system Conditions of sale (eg, delivery, payment) Brand establishment Other 4: Please evaluate the following factors compared to competitors Mark or on assessment scores with corresponding scores below: (1) My enterprise is much weaker; (2) My enterprise is weaker; (3) My enterprise is not stronger/weaker; (4) My enterprise is stronger; (5) My enterprise is much stronger The level of assessment The strategy, business direction of the Company The quality and professionalism of the workforce Enterprise Finance Marketing activities and Brand establishment The company's consumption market Supply of raw materials for the production The quality and price of products Big and longtime consumers Labour productivity Management Qualification about technology, machinery, equipment The process of production, management of the business Other 82 5: Will the company have a project of product development, new production lines in the future? ☐ Yes ☐ No Câu 6: Will the company improve the product in coming time? ☐ Yes ☐ No PART III: PLANNED ACTIVITIES OF THE COMPANY IN THE FOLLOWING YEARS Please tell us your opinion on the business plan of the Company in the next years? (Circle in the corresponding order) Likely to increase the scope of business Will continue to business with the current scaletại Likely to reduce the scope of business May be closed Thank you for your cooperation ! 83 APPENDIX CUSTOMER SURVEY ABOUT COMMERCIAL CONCRETE PRODUCTS Hello! In order to survey the level of satisfaction of clients as well as the tastes of concrete product (also called raw concrete or ready-mixed concrete) of Haiphong Concrete and Construction joint stock company I give you a survey to study about the needs and desires of customer need So I am looking forward to your help CUSTOMER INFORMATION ☐ Male Sex: ☐ Female Address: …………………………………………………………………………… Phone number: …………………………………………………………………… … Job: ………………………………………………………………… Age: ☐ From 10 to 20 years old ☐ From 20 to 30 years old ☐ From 30 to 40 years old ☐ From 40 to 60 years old ☐ Over 50 years old QUESTIONS 1: Have you known or heard about commercial concrete (raw concrete or readymixed concrete) yet? ☐ Yes ☐ No 2: Through the introduction of the product, how you feel? ☐ Like it very much ☐ Like it ☐ Normal ☐ Don’t like very much ☐ Don’t like 3: Have you ever known or heard about commercial concrete (products of Haiphong Concrete and Construction Joint Stock Company) yet? ☐ Yes ☐ No 84 4: Which sources you know about the commercial concrete? ☐ On internet ☐ Newspaper ☐ Presenter ☐ See works under construction ☐ See used works ☐ Other source 5: Have you ever study about commercial concrete yet? (if yes, please answer the followings additional questions) ☐ Yes ☐ No Which sources you study? ☐ On Internet ☐ Contact with the company ☐ Ask acquaintances ☐ Other sources 6: According to your opinions, which factor helps you to select commercial concrete? ☐ Good quality for works ☐ Reasonable cost ☐ New trend ☐ Other 7: When you decide to choose commercial concrete for the works, which factors help you choose the suppliers? Mark or on assessment scores with corresponding scores below: (1) Not important; (2) Not very important; (3) Normal; (4) Important; (5) Very important The level of assessment Prestige and fame of suppliers Construction experience of suppliers The professionalism of suppliers 85 Typically large projects were supplied Cost is cheaper than the competitors’ one in the market Clear warranty commitment Good service Standard service Other 8: Which technical characteristics of the commercial products help you decide to choose them ? ☐ The product can applied quickly thanks to the shaping ☐ Products are suitable for many categories of works ☐ Usability ☐ Other 9: Which works are you going to choose the commercial concrete for? ☐ House ☐ Villas, apartment ☐ Building, office ☐ Other 10: What changes you suggest HCC doing for products ? 86 APPENDIX INVENTORY SHEET Indicator 2013 Amount 2014 Amount % % Up / Down Amount % 2.247.877.01 1.Raw materials 7.193.825.633 11.215.052.32 36 9.441.702.646 12.842.807.57 36 1.627.755.25 2.Business costs 56 49 14,5 2.038.417.40 1.656.469.589 20.065.347.54 3.694.886.989 26.249.397.21 15 6.184.049.66 3.Product Inventory 31 123 100 100 30,8 (Source: Hai Phong concrete and construction JSC) 87 APPENDIX LIST OF MACHINERY AND EQUIPMENT OF THE COMPANY No I II 10 11 12 13 14 15 16 17 18 III Equipment TRANSPORTING Truck IFA 125 Heavy truck Heavy truck Light truck CONSTRUCTION Concrete mixing station Mixing truck Pumping truck Crane 10-30 Tón Wheeled loader Bulldozer Excavators Grader Vibrating roller Compactor Motar mixer Flat compactor Concrete vibrator machine Pump (50-70)m3/h Generator Welding machine Steel bending machine Scaffolding SURVEYING Theodolite Automatic level IV PRODUCTION Pole and centifugal concrete pillar production line Centrifugal electric pole mold Kinds of concrete formwork Production line of centrifugal concrete culvert Payload, capacity Unit Quantit y Year of manufact Origin ure tons 10 tons 10 tons 2,5 tons set set set set 4 1995 2004 2005 2008 Germany American KOREA KOREA 60m3/h 7m3÷10m3 set set set set set set set set set set set set set set set set set set 1 2 01 02 10 16 02 1500 2008 2007 2009 2004 2004 2004 2005 2003 2002 2004 2003 2005 2006 2003 2005 2002 2004 2003 KOREA KOREA KOREA Japan Japan Japan Japan Euro Japan Japan CHINA CHINA CHINA Russia Japan Japan CHINA Vietnam set Japan set 2006 2004, 6m÷20m set 2002 Vietnam 6÷12m set m2 33 1800 2002 2004 Vietnam Vietnam D200÷D1200 set 2002 Vietnam 30Tons 200 HP 200 HP 150&200 HP 195 HP 25T 80-250 l 0,6÷1 kW 0,8÷1,5 kW (50-70) m3/h 10 kW 15kW kW 88 2011 Japan 10 Centrifugal pipe mold Welding machine Steel bending machine Lifting Crane Boiler system Pneumatic system D200÷D1200 set 12 2009 Vietnam 15kW set 10 2002 Japan kW set 2005 CHINA Tons set 2002 Vietnam 100 m3/h set 2005 Vietnam bar set 2005 vietnam (Source: Hai Phong concrete and construction JSC) 89 ... of aesthetics, ethics, lifestyle, profession; customs, practices and traditions; the priority concern of the society; the level of awareness, education of the society, d Natural conditions Natural... competitors + Researching the adaptability; tolerance (the ability to cope with lasting competitions); responsive ability (counter-attack) and growth possibility of the competitors b Potential Competitors... the ability to mobilize short-term and long-term capital; the total capital of the enterprise; the flexibility of the capital structure; the ability to leverage financial strategies; ability to
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