_Phân biệtgiốngkhácchiếnlượcquảntrịchiếnlượcchovídụminhhọa Introduction: In the trend of integration of the Vietnamese economy with the international economy and on an extensive area, it has opened up for the Vietnamese business development opportunities, but also challenges in production activities The reason is that it faces more intense competition from competitors This requires businesses to seek and promote the comparative advantage in order to win in the fierce competition and global scope In this situation, each now has new opportunities to exploit, simultaneously to prevent and limit the existing and potential risk Derived from these reasons, enterprises need to adapt to the environment as well as international economic integration to achieve business goals most effectively in the long term Therefore, it requires enterprises need to have strategic thinking that is to have a long-term vision towards the flexibility to ensure the survival and development of enterprises before the events of the current environment Enterprises will implement the proposed strategy through its strategic management activities to organize in the best way and achieve the strategic objectives that every enterprise has built The content has five parts, as followings: Part 1: Introduction Part 2: The concept of strategy - explanation and analysis Part 3: The concept of strategic management - explanation and analysis Part 4: Identify similarities and differences of two concepts Do the above concept and the comparison mean for managers? Take example Part 5: Conclusion Part 2: Concept of strategy – explanation and analysis: IeMBA B02_Trịnh Xuân Thắng 2.1 Concept of strategy: The concept of strategy from ancient Greek, profound derived from the military field, derived from "Strategos" means the role of the generals in the army With the basic point of the strategy, a party can crush its opponents even they are stronger and more numerous They are able to lead the battle and put the opponent on the battlefield to facilitate their development abilities Since then the term of strategy was born, according to the traditional view, "Strategy is the determination of the basic long-term goals of an organization in order to offer specific programs of action together with the use of resources appropriately to achieve the set goal ”- Source: The New Strategists There are many different definitions of the concept of corporate strategy derived from the perspective of each different author However, essentially the similarities between these concepts are able to understand deeply The concept of strategy can select a number of the strategic concept as the followings: • In 1980, Quinn gave the definition: "strategy is the pattern or plan appropriate to basic objectives, policies and action sequences of the organization into a coherent whole" – Source: Statistical Publishing House • In 1996, Michael E Porter introduced the concept of strategy in main points: “Strategy is the creation of a unique and valuable position, including the different activities” "Strategy is the art of building a solid competitive advantage to the defense" "Strategy is creating fit among all the company's activities" Sources- the New Strategists • According to William J.Glueck, “Strategy is a plan of IeMBA B02_Trịnh Xuân Thắng consistency, comprehensive and coordination, designed to ensure that the basic objectives of the organization"- Source: Statistical Publishing House • According to Fred R David, "Strategy is the means to achieve long-term goals Business strategies may include the development of geography, diversification of activities, ownership of goods, product development, market penetration, cutting spending, liquidation and joint ventures " – Source: Statistical Publishing House • According to Johnson and Schole, "Strategy is the direction and scope of an organization over the long term, in order to gain advantage for the organization through its configuration of resources within the context of the changing environment, to meet the needs of the market and meet the expectations of stakeholders " - Source: Statistical Publishing House * In summary: A company's strategy is the direction and scope of an organization over the long term, the strategy will bring advantages for the organization through the optimal placement of resources in a competitive environment to meet market demand and expectations of the capital contribution The details are as followings: - Strategy is a roadmap that company must identify and implement: + What is the goal that company wants to achieve? + Where is the company in the market? + How to achieve it - The strategy is a consistent and harmonious combination of factors: +Increase (Brand name, reputation of company…) + Environment (environment inside and the company's internal environment) + Organizational resources (Finance, HR, etc ) - Strategy should include four factors: IeMBA B02_Trịnh Xuân Thắng + Available information and strategic vision + Orientation of the company + Long-term goals + Action 2.2 More explanation and analysis of strategy concept There are many different views and concepts of strategy, within the framework of this article the concept of Alfred Chandler - one of the smog and the development of strategic management theory will be taken to explain and analyze this concept According to Alfred Chandler, "The strategy is to identify long-term goals and objectives of the business and the accepted sequence of actions as well as the allocation of resources necessary to carry out these goals" – Source: Statistical Publishing House Identification here is the active the management of the company that must calculate and orient Therefore, company needs to determine the current position in the market compared to relative competitors The market share of the business is large, medium or small so that the company can know what the limitations and advantages to be able to shape the company's strategy to be achieved The objectives are the things that the company needs to achieve This is the overall goal that each company should choose to achieve the "value" of the company including vision and mission - Implied vision of an excellent standard is an ideal It is an allusion to a choice of the value of the company as the company's brand image… In addition, the vision of the unique nature is to reflect the business to create something unique and different from other businesses Therefore, when talking about the company, customers have learned the value of the outstanding brand of the company, good vision that should be directed - The mission of the company is understood as reason for existence, the IeMBA B02_Trịnh Xuân Thắng meaning of the existence and activities of the organization The mission of the company has shown great importance of the existence and has expressed "service” to meet the interests and needs of the parties including: customers, employees and other stakeholders Long-term goal is what the company needs to achieve but concretized than the objectives of the company, the purpose is: - Includes financial goals: sales, market share, cost, profit and nonfinancial objectives such as: quality of work, work environment, the level of community support - Create priorities (goals need to be taken before the importance and value of the target) and form the basis for the selection and trade The accepted sequence of actions: Acceptance is that other things cannot, and the consensus of both company management and staff perform the sequence of actions (a process from putting forward the idea, set out strategic objectives and the methods to implement the company's strategy) They are a series of actions that all enterprises need to understand and perform most effectively Allocate the necessary resources: is calculated and divided by the rate, structure of the company's resources (human resources, finance, marketing, production, etc.) in a reasonable and effective way to ensure the implementation of the objectives of the company without interruption and waste of resources The allocation of resources is extremely important because it is crucial to the results of the strategic objectives, especially the financial goals of the company Part 3: Concept of strategic management, explanation and analysis: 3.1 Concept of strategic management There are many different concepts of strategic management, but there are typical concepts: • According to Alfred Chander, "Strategic management is the process of IeMBA B02_Trịnh Xuân Thắng determining the basic long-term goals of the organization, choice or way of action and distribution of resources necessary to implement those goals" – Source: Statistical Publishing House • According Fred R.David "Strategic Management can be defined as an art and science to set, implement and evaluate decisions related functionality to allow an organization to achieve the goals set out " - Source: Statistical Publishing House • According to John Pearce II and Richard B.Robinson, "Strategic Management is a system of decision-making and to form and implement action plans to achieve the objectives of the enterprise" - Source: Statistical Publishing House *In summary: Strategic management is a process of aligning a flexible strategy, the operations and business results including human resources, leadership, and technology and treatment options This is an ongoing activity for the company to establish and maintain strategic direction and operations of a business In addition, the daily decision-making process will resolve the situation that is changing and challenging in the business environment 3.2 Explanation and analysis of strategic management concept: In the framework of this article, the concept of John Pearce II and Richard B.Robinson will be taken to explain and analyze "Strategic Management is a set of decisions and actions to establish and implement plans to achieve the objectives of the enterprise" Decision and action are the analysis and synthesis of information, the leaders made many decisions The decision here understood as the solution should be implemented immediately, it demonstrates the importance in the blink of business opportunities and the main thing in time; decisions may include decisions about the personnel organization, control costs and new market entry decisions Action here is the implementation decided on, in fact, leadership gave the decision and staff will be responsible for implementing these decisions IeMBA B02_Trịnh Xuân Thắng Planning here is understood as the implementation program that the company has set out before, it may be planning on Finance: Sales, profits, costs… there may be plans for development of new products or acquiring other companies Therefore, decision-making and implementation of this plan are based on the shown strategic management that always bring logically, consistently and scientifically The company's goal is the overall goal of the company (vision and mission) Part 4: Identify similarities and differences of two concepts Do the above concept and the comparison mean for managers? Take example 4.1 Similarities Strategy and strategic management are developed and implemented for the purpose of developing and increasing the competitiveness of enterprises and achieve the ultimate goal to bring the highest profit for the business • Strategy and strategic management are developed and implemented based on the internal resources of the enterprise (competitors, customers, suppliers and potential substitutes) and external resources (general environment, industry environment) • Strategy and strategic management aims in the long term • The methodology and implementation of strategic management program must always be consistent with building company strategy; the company's strategy must always be consistent with the method and manner of strategic management Results of the Strategy and Strategic Management are beneficial to the parties: leaders of the company, shareholders, labor and government 4.2 Differences: • Strategic management is process, and strategy is the product of the process IeMBA B02_Trịnh Xuân Thắng • Strategic management is the cause, but the strategy is the result obtained • The senior managers (leaders) build strategy, while staffs conduct strategic management • Strategic management is a combination of means, manner, method, while strategy is a set of goals to be achieved • Strategy is the long-term goals and fixed, while strategic management is not a static process that is always changing, adjusted to match the strategic objectives set out • The strategy often involves element of "value" Strategic management contains elements of "efficiency" of the implementation process 4.3 The meaning and the comparison of the two concepts for managers: The meaning of the concepts: - Help managers view the location, purpose and direction of the company, so that the shape and choose the long-term direction in order to achieve set objectives - Help managers see the strategic importance of the company, but to implement the strategy, managers need to make concurrent implementation and harmonization of both factors, namely: + Make the right target + Maximize the benefits for staff - Through the concept, it helps managers understand their responsibilities to build long-term goals and direction for the company At the same time, it will help managers organize; assign job responsibilities for each individual company within the company, as well as the organization and administration of the functions not overlap or conflict with the proposed objective strategy of the company IeMBA B02_Trịnh Xuân Thắng - Help businesses identify opportunities and challenges from the external environment, the strengths and weaknesses within the current business so that managers can offer total solutions to promote the intrinsic advantages and restrictions, to prevent the threat from external impact of business activities - Help managers make business decisions in accordance with the business environment in order to improve efficiency and productivity in the production of the company's business - Help managers to select appropriate competitive advantage in the ever-changing business environment, which will figure out how to survive and grow in order to improve the competitive position of the business Example: - Through common environmental analysis, namely social factors (GDP), the managers found that: If the country's national income is from $ 1,000 or so, there will be a boom market (high demand) Prior to 2005, GDP income in Vietnam is 500-600 USD / person, the analysis predicts the national income is expected to reach $ 1,000 / person in 2010 To take advantage of business opportunities that match and took the opportunity during 2005-2010, in Vietnam there are many large-scale projects with the investments in time As a result, from 2010 in Vietnam, market boom had a much larger time in a long time, making a major breakthrough and dominating the market for this business in Vietnam This proved that the management of the company has relied on the analysis and forecast market demand to determine the direction the company's goal and expand investment in this period In addition, it helps managers make the concentrated solution and the most effective allocation of resources to accomplish goals As result, the company has to make good use of these opportunities, achieve major in business, thereby increasing brand value and the company’s strategic goals Part 5: Conclusion IeMBA B02_Trịnh Xuân Thắng Business strategy and business strategic management are that how the company uses to achieve competitive advantage in the marketplace, its role is very important because the strategy is considered the guideline for all activities of the company In a business environment with fierce competition, strategy is vital and no longer holds for a long time because of the tendency of the product life cycle increasingly and the level of increasingly modern science technology in the world and constantly changes Therefore, opportunities and challenges of the market are changing daily In addition, there are the increasing requirements on the profits of the shareholders to the company and it requires the company to build the fair and active strategies in order to make the position of company to a higher level in the market 10 Thắng IeMBA B02_Trịnh Xuân ... the perspective of each different author However, essentially the similarities between these concepts are able to understand deeply The concept of strategy can select a number of the strategic... great importance of the existence and has expressed "service” to meet the interests and needs of the parties including: customers, employees and other stakeholders Long-term goal is what the... Similarities Strategy and strategic management are developed and implemented for the purpose of developing and increasing the competitiveness of enterprises and achieve the ultimate goal to bring the