LUẬN văn THẠC sĩ xây DỰNG CHIẾN lược PHÁT TRIỂN CÔNG TY TNHH THÀNH LINH e

BUILDING A DEVELOPMENT STRATEGY FOR THANH LINH CO., LTD FOR 2013 – 2018 STAGE TABLE OF CONTENTS FIGURE 1.1: MATRIX OF OVERALL COMPETITIVE STRATEGY 11 ACCORDING TO THE AUTHORS D.SMITH GARRY, DANNY R.ARNOLD, BOPBY G.BIZZELL IN "STRATEGY AND BUSINESS STRATEGY" THAT THE BUSINESS ENVIRONMENT INCLUDES: INTERNAL AND EXTERNAL BUSINESS ENVIRONMENTS 18 2.2 Efficient of business 42 LIST OF ACRONYMS Acronyms DN : Meaning Enterprise TNHH : Limited liability KD : Business TM : Trade WTO : World Trade Organization -2- LIST OF TABLES FIGURE 1.1: MATRIX OF OVERALL COMPETITIVE STRATEGY 11 ACCORDING TO THE AUTHORS D.SMITH GARRY, DANNY R.ARNOLD, BOPBY G.BIZZELL IN "STRATEGY AND BUSINESS STRATEGY" THAT THE BUSINESS ENVIRONMENT INCLUDES: INTERNAL AND EXTERNAL BUSINESS ENVIRONMENTS 18 -3- CATALOGUE OF CHART FIGURE 1.1: MATRIX OF OVERALL COMPETITIVE STRATEGY 11 ACCORDING TO THE AUTHORS D.SMITH GARRY, DANNY R.ARNOLD, BOPBY G.BIZZELL IN "STRATEGY AND BUSINESS STRATEGY" THAT THE BUSINESS ENVIRONMENT INCLUDES: INTERNAL AND EXTERNAL BUSINESS ENVIRONMENTS 18 ABSTRACT Necessity of the topic Today, in the context of fierce competition taking place in all areas of business, if an enterprise wants to survive and develop on the market, the most important and necessary thing for them is to direct the enterprise to a right way and in accordance with frequent and sudden changes of the environment to achieve high adaptability and -4- sustainability To achieve these, enterprises must identify and build a proper development strategy for their your own business In 2007, the event that Vietnam formally joined World Trade Organization (WTO) marked a major turning-point for the economy of Vietnam The opportunities offered by economic integration have been welcoming dynamic enterprises who know to seek and take advantage of investment opportunities However, besides opportunities, there are always threats and potential risks that can come at any time and enterprises will get stuck into difficulties without good preparation and suitable measures to cope with In addition, the continued advance of science and technology also helps to shorten the development cycle of products and services, the market globalization helps to increase significantly existing and potential competitors This means that the business world gives customers more and more freedom to choice, but also helps to increase competitive pressure and promptness in responding to new demand In this context, success does not depend on the position of an enterprise at a certain time, it is just the ability to interact with competitors in the long term Therefore, each enterprise needs to plan and implement appropriate and effective strategies to be able to survive and develop in a sustainable manner A strategy that has ability to promote internal power and take advantage of opportunities coming from external environment or to avoid, limit risks and weaknesses will surely help the enterprise to have enough competitiveness and stand steadily on the market Therefore, an enterprise to be successful and profitable in business must have a good strategy with optimal solutions As an young enterprise in the field of petroleum, automotive and manufacturing of biological products, Thanh Linh Co., Ltd has had right direction to overcome challenges from economic integration and effectively take advantages of opportunities to develop the company However, in recent years, and in the future, the changes and instability of the economy in the general and difficulties on the markets of the company create lots of complicated and unpredictable challenges to the -5- company To implement strategic objectives, it's necessary to determine specific development strategies to accomplish that objectives as well as to determine the priorities of business activities, capacity and mobilizing resources; target customers; products and services objectives will provide to customer; from this background to create competitive position in the sector and long-term performance goals Therefore, the author decided to choose the topic "BUILDING A DEVELOPMENT STRATEGY FOR THANH LINH CO., LTD FOR 2013 – 2018 STAGE" for master thesis Purposes and applicability of the thesis a- Systematize knowledges of building strategy for an enterprise b- Analyze factors from external environment and internal business to indicate opportunities, challenges, strengths and weaknesses of the company c - Propose orientation and strategic strategy for Thanh Linh Co., Ltd, period of 2013-2018 Researching methods The topic uses methods of description, information gathering, synthesis, analysis About information gathering, the topic mainly uses secondary information such as financial reports, market analyzing reports and other types of reports of the company About information analysis, it includes information processing, aggregating, calculating, comparing, evaluating and making conclusion The information gathered from the sources mentioned above is analyzed and classified to groups of important information, statistical information will be handled according to the principles of statistical analysis Conclusion is based on the analysis and evaluation of data Structure and layout of the thesis a- Chapter I: Theoretical background for building development strategy b- Chapter II: Analyze business situation of Thanh Linh Co., Ltd c- Chapter III: Conclusion and recommendations -6- CHAPTER I: THEORETICAL BACKGROUND FOR BUILDING DEVELOPMENT STRATEGY 1.1 Overview of business development strategy 1.1.1 Concept of "Strategy" of the company 1.1.1.1 Concept of "strategy" The term "strategy" is derived from Greek and were first used in the field of military to indicate large and long-term plans given on the basic of certainty that the subjects can implement and in an common manner, strategy is understood as plan and art of military commanders -7- There are a lot of definitions of "strategy" According to Fred R David, strategy is considered as means to achieve long-term goals Alfred Chadler defines strategy as defining basic and long-term goals of enterprises and means outlining a course of action and allocation of necessary resources to carry out that goals In general, although there is difference in strategy definitions, they still covers the content of: being the study of current and future market, planning of business goals, establishing, implementing and supervising the implementation of decisions in order to achieve that goals in current and future environment 1.1.1.2 Concept of development strategy Today, many enterprises also apply the same concept of strategy in the military Strategy as plan of controlling and using resources of the organization such as manpower, assets, finance aiming to enhance and ensure its essential interests And currently, there are more and more perspectives and approaches to development strategy as follows: In Kenneth's opinion, Kenneth Andrews was the first to offer these outstanding ideas in the classic book "The Concept of Corporate Strategy" According to him, strategy means things that an organization must implement relying on their own strengths and weaknesses as well as opportunities and threats in the context In Bruce Henderson's opinion, a strategist and founder of Boston Consulting Group had strategic connections concept with a competitive advantage Competitive advantage is to put a company in a better position to create rival economic value to the customer Henderson wrote that "the search strategy is a prudent action plan to develop and incorporate competitive advantage of the organization The difference between you and the competition is the basis for your advantage " Henderson believes that it can not coexist competitors if their business practices are same Need to create new differences may exist Michael Porter also agreed with the endorsement of Henderson: "Competitive strategy related to differences It is the careful selection of a different chain activities to create a set of unique values " -8- Under the traditional approach, the strategy is to develop long-term view of the overall as an organization to achieve long-term goals The researcher of history of management , Alfred D Chandler said that "strategy is the determination of the basic long-term goals of the business and operations of the program along with the allocation of resources necessary to achieve that goal." As such, his ideas reflected a strategic planning process with lucidity, in which businesses choose their goals, define action plans to accomplish the goals that best and find ways to allocate resources accordingly Traditional approach has the advantage that helps businesses easily imagine the work that needs doing to strategic planning and see the benefits of a comprehensive strategy for the long-term plan However, in the business environment with fluctuating shows the limitations of traditional approaches because it does not have the ability to flexibly adapt to the change of business environment Under the modern approach, the strategy can what the broader that business plans to implement According to Mintzberg's conception, he said that strategy is a pattern in the flow of decisions and action plans The pattern can be any type of strategy: strategies designed in advance or mutation strategies He provided models: Modern approach to help businesses easily respond flexibly to changes in the business environment and promote the creativity of the members of the enterprise However, it requires leadership, managers must have the qualifications, the ability to predict the conditions for the implementation of strategies and assess the value of the mutation strategy Through the above approach, we can understand that: Development strategy of a business is the art of building a long-term goal and the implementation of policies to guide and create competitive advantage of enterprises 1.1.2 Role of developing strategy for business Development Strategy plays an important role for the existence and development of every business Proper development strategy will create a good direction for enterprise, development strategy can be regarded as a guide to lead the way in the right direction In fact, there are many small businesses have developed the -9- right strategy to achieve this success, surpassing competitors and make their position in the market Development strategy brings many benefits to the enterprise, its importance is reflected in the following aspects: - Development strategy helps business to guide its activities in the future by analyzing and forecasting the business environment Business as activity is always under the influence of external and internal factors Development strategy helps businesses both proactive flexibility to adapt to the fluctuations of the market, while also ensuring that business operations and development in the right direction That can help businesses to strive to achieve the objective of improving its position in the market - Development strategy helps businesses to seize the opportunities as well as a full range of risk for the development of resources It helps business to operate and use resources, promote the strength of the business - Strategy to create a trajectory for business operations, business help link individuals with different interests together towards a common goal, and business development It creates a close bond between employees and between managers and staff Thereby strengthening and further enhance the enterprise's internal resources - Development Strategy is a tool of effective competitive business In the conditions of globalization and economic integration now makes the influence and mutual interdependence between enterprises That process has created fierce competition between enterprises in the market In addition to competitive factors such as: price, quality, advertising, marketing, business strategy also used as a tool to develop effective competition 1.1.3 Level of business strategy The strategy is divided into main categories: i) Business strategy is the strategy of the corporation or enterprise to guide business's activity and how to allocate resources to achieve common goals Businesslevel strategy is a statement of the long-term goal, the development orientation of the organization - 10 - Restructuring Strategy X  Comment: Thus, the results of the use of multiple tools to carry out the construction of strategic plans helped Thanh Linh company limited to issue and decide strategic choice between the tools, it is the strategy of: market penetration, product development and diversification 3.2.4 Strategic selection and decision Thus there may be a number of strategies that can be put in place to implement under conditions of limited resources and focus on direct the implementation of resource mobilization, among the possible strategies, to select the most appropriate strategy QSPM Matrix has introduced as used for the choice and decision Strategic choice and decision QSPM Matrix Table 3.4 QSPM Matrix Factors Opportunity Political stability Policies to encourage the development of petroleum Economic growth Demand for oil is high Increasingly scientific and technical development Rising gasoline demand in the future Challenge Rising inflation Social pressure on the oil and gas Market Development Assessment Strategy AS TS Market Entry Strategy AS TS Diversification strategy AS TS 6 4 16 3 12 4 12 16 4 3 3 6 2 3 12 4 16 - 71 - business Participation of new companies into the sector Not material resources provided New business trend, replacement products Fierce competition between rival Strengths Financial Capability Reputation Stable source Direct Retail Systems Level and quality of human resources Flexibility in payment Dealer Network Dominate market share Pre-support services, during and after sale Weaknesses Prices are flexible (retail, wholesale, dealer fees ) Transport capacity Quality and quantity of goods Facilities, modern equipment Freight route Ability to identify the opportunities and threats Organizational structure of the company support Information systems Total 8 3 9 12 3 9 12 3 4 4 12 16 16 3 12 16 4 12 12 12 12 4 4 16 16 12 3 12 12 12 2 8 4 16 16 12 4 3 3 2 4 3 6 3 3 6 3 4 6 6 263 241 235 Thus QSPM analysis table showed the following results: - Market development strategy with a total score (TS) is 263 and is the best plan - Market entry strategy with a total score (TS) 241 is the 2nd option - Diversification Strategy with a total score (TS) is 235 is the 3rd option According to the author's calculations, the market development strategy will be applied firstly to the Company during its continued development Later in the deployment process will evaluate and adjust the logical plan for the new developments 3.3 Proposed solution for implementation straegy - 72 - 3.3.1.Human Resource Solution Nowadays people have become centers of economic - social processes This is one of indispensable crucial and inputs of all production - business processes Thus the planning and allocation of human resources for strategic distribution of a company is inevitable With a good and dynamic, resourceful staff teams, that company can overcome competitors, but also strong growth in the market In fact, we found that, the oil and gas business is not out of this case In the petroleum business, the price managed by the State, product quality is also not different between distributors Thus the competitors in the quality of services and the rapid capture of information This is determined by the staff and employees of the company and as such, planning, recruitment and human resource allocation strategy of Linh Thanh Co., Ltd becomes important The human resource planning requires the company is trying to anticipate the changes in the human factor in the system in many ways There are three important factors when conducting workforce planning that company need to consider as: Identify manpower needs, recruiting and training and development Identification of human needs: This is an important task when company conduct human resource planning The company needs to identify in detail the human need for bringing development strategy of gasoline distribution network to its ultimate success This includes determining the specific number of officers, employees, type of work and level of skills required At the same time, the company needs to have a detailed plan about way which required manpower can be reached Recruitment, selection: After determining detail, specific human needs, the company needs to implement the selection process to get the necessary human resources The selection, recruitment and human resources must be tied to the company's strategic direction and goals that the company wants to achieve To this well, the company needs to build a system of selection criteria for each position, each job: As the standard of qualifications, professional training, work experience in a similar position, foreign language skills, computer skills, as well as dynamic, enthusiastic in your approach - 73 - Training and development: Due to the huge role the government can not to be confirmed that, staff teams need to have training and development of human resources should be respected This activity should be conducted in regular The content of education and training should focus not only on improving the qualifications and skills for staff and employees, but also the propagation of the target, the seam of the company strategy These activities not only to staff, new employees, but also for existing staff and employees The development of human resources to ensure the implementation of strategy, but the problem should not be underestimated about the quality Besides, the company also should have policies and plans for the re-training of workforce every year, as well as to create favorable conditions for their own training, improve professional skills Not only for Thanh Linh Company Limited but also the Company focus on the exploitation and management of human resources so that the most effective, and this is considered an important activity within the organization Therefore, in preparation to deploy a strategy, the company needs to develop their own plans for human resources allocation The plan for the allocation of resources should be based on certain and obviously grounds That's manpower needs identified above, the ability to meet the labor market, strategic goals and objectives of the company, and plans to implement its strategy Plan allocation of human resources to focus on answering every type of question: what part is allocated for? Where area is allocated for? When? With how many? What plan is like? Plan allocation of human resources also need to be determined for each period, each year 3.3.2 Financial Solutions To put the strategy into success requires the company to plan, allocate and manage resources effectively Capital plays a vital role not only for the implementation of the distribution strategy of the company but also for the business operations of the Company The implementation of strategy of distribution network development requires the company to raise a large amounts of capital The capital must be large enough to meet the basic construction process, containing costs transportation and sales In terms of venture capital is still limited, to have sufficient working capital, in addition to its investment, the company needs to raise additional capital from other - 74 - sources like banks and venture capital In this respect, the company should consider the capital mobilization from joint ventures According to this mobilization, the company has been able to solve business problems which may have exploit the advantages To manage capital most effectively, the company needs to establish a clear investment plans, detail for each investment period In fact, investment management by plan, program is flexible and can manage effectively The method of management allows the company to closely monitor investment process, investment monitoring progress closely to each item of work, from the capital investment Then, the company will minimum capital losses, tightly controlled process and improve the efficiency of capital investment 3.3.3.Marketing Solution * Development of retail system: According to Expert's study about the development of the petroleum market, the Vietnam retail demand will reach about 65% in 2015 compared to total demand Ie retail gasoline demand was about 16 million tons in 2015 Meanwhile, the number of stores of oil is very limited The Company needs to develop retail systems, retail store and station system development The company needs to build many gas retail stations in the strategy? Where station is located? and what form is built? New construction or upgrade, 100% equity investment or joint-venture? as questions that must be resolved in the development strategy The company expects to build about 12 to 15 kilometers of gasoline service stations - Location of retail stores, gasoline service stations in the petroleum business, choosing a place to sell for customers to keep a decisive role because oil is a commodity has been target standardization of economic - technical indicators, so the quality of the product quality should not be a competitive weapon to attract customers Oil prices are set by the government for the whole country Therefore petrol service stations and store only use quality of services to attract customers The convenience factor for customers to buy is a most important factor - Reasonable density to avoid competition within the company, but also to remove space without stores - 75 - - In addition to conducting joint ventures with partners to build and renovate and build retail stations, the company should evaluate them carefully To accurately assess partners, the company should have a system of clear criteria as a basis for comparison and evaluation for partners include: Location of gas plants, oil trading experience, financial capacity, human resource, potential partners as well as store * Organize sales force of the company: With these functions, the company is entitled to operate - in many areas of business, including oil and gas business is a key field Therefore, to ensure efficient operations - business, organizing different units to undertake one or more activities associated as the essential requirements According to the business activities of oil also require a separate functional units, assist director and responsible for this activity before the board of directors This function unit will manage the petroleum distribution of company for the intermediate units, and gasoline sold for customers by the retail stores of the company * Finding intermediate distributors: As the above analysis, to minimize the weaknesses and experience and capital and maximize the advantages of intermediaries, alongside its sales force, the company should look for the intermediate distributors It is the merchant, other wholesalers and retailers The company must know how to attract high quality intermediate distributors for selected channels And of course there will be many intermediate distributors voluntarily join the Company's distribution channels But not all of them meet the criteria To attract high-quality intermediate distributors, the company should have tools, specific policies, satisfactory The Company to build intermediate distributor selection criteria system The selection criteria should focus on the assessment highlighted collaboration of intermediate distributor, goods category traded, growth profile and profitability, solvency, ability to cooperate, performance and business reputation Also need to consider the capacity and sales force of intermediaries and their place These indicators should be clearly developed, specifics for each type of intermediate ( wholesalers and retailers) * Encourage members of distribution channel: - 76 - The mediator should be continually encouraged to fulfill their tasks These conditions have brought them to the channel has created a certain encouragement, but the conditions that need to be added training, supervision and encouragement The company must always believe that not only sales through intermediaries, but also sales to them The stimulus channel's members to operate most effectively, must come from an understanding of the needs and desires of those intermediate distributor Thus, we can see that the primary concern of intermediate distributor is economic benefit They mainly focus on selling products that customers demand with consumption volume as large as possible and achieve the ultimate goal is maximum profit At the same time they also want to benefit from vendors such as commissions, bonuses, preferential credit Besides there needs to survive and grow, have a foothold on market and rightful place, important distribution channel system also valued To encourage members of distribution channel, the company must have an adaptive management approach There are many management methods that the company can apply It is a method of organization - administration, economic methods, psychological and education methods For each these management methods have a variety of different tools allow the company impact on the needs of distribution space This tool is built based on the certain power system of provider In the management of distribution channel's members, to encourage intermediaries distributors, the company can use the following types of benefits: - Coercive power - Bonus Power - Legal Authority - Professional expertise Power - Reliable Power Based on certain conditions, the Company may choose one or a combination of the power to manage and stimulate the members of the channel, so that the relationship was on the basis of the cooperation, collaboration and the distribution plan, the principle of mutual benefit The company will take advantage of the most closely cooperate in the extent possible, if care power, professional expertise power, - 77 - and reward power in that order, and generally should avoid the use of coercive power The company should only use coercive powers in cases of urgency, when really necessary The company can choose to make the relationship of long-term collaboration with its intermediaries To this, the company needs to develop a clear idea of what the company wishes to cover the market to ensure the implementation of Marketing for caring accounting and providing technical service and market information, the company should seeks consensus intermediaries distributors with those policies In addition to payment for the performance, the company should take fund to encourage adequate reserves, timely payment and provide information on the status of the customer's purchase * Organization of coordination team The core of a successful sales operation is to have a pair of good sales staff Know selection, they must be people who have the habit of development, there is always the need to win and influence to others That's who dare to take risks to achieve goals that are closely associated with their customers They appreciate the benefit of customers, see themselves as a team with customers than competitors The sales staff should be trained carefully and systematically They need to know the exploration and evaluation of customer with the introduction to good, handling declines Salespeople need to be trained in skills to negotiate a deal to end opportunity, how to install and execute perfect services to customer Salespeople should be encouraged to monitor and continuously encouraged to improve their performance Sellers are motivated as well, stimulating more committed to their work and better results - then they can be rewarded more so kindly and eager to try more and more Salespeople have to explore, search and cultivate new customers They must know and fully convey clear information about products and services of the company, must know about the art of sales, including: approach, introduced, refused to answer and end the sale They also provide customer services - advisory, technical assistance and support to arrange and delivery Salespeople have to work on regulatory and market and reports of services They also conduct coordinated scarce goods during shortages - 78 - Salespeople should spend 80% time for existing customers and 20% for future customers and 85% stability of the stable product and 15% for the new product Salespeople must know how to create satisfaction to customers and profitability for the company They must know how to analyze sales data and market potential measurements, collect news and market deployment strategies and marketing plans CONCLUSION To meet the increasing demand of petroleum products, petroleum, Thanh Linh Company Limited needs to develop long-term strategies, to include nature, location, personnel, opportunity, external forces, internal forces or combined forces Title of thesis: "Building a development strategy for Thanh Linh Co., Ltd for 2013 – 2018 stage" in order to contribute little to the overall strategy From the Chapter I, the thesis codified the basic concepts of theory of the development strategy Chapter II-depth analysis of the business operations of the Company Since then evaluate the strengths, weaknesses, opportunities, challenge, then Chapter III, the proposal to build a development strategic solutions to improve the efficiency of business operations for Thanh Linh company limited in the near future Due to the content of research is quite wide, so the thesis also has limitations I look forward to the valuable contributions from Scientists, Teachers and all Readers interested in this thesis for more complete essays - 79 - REFERENCES Fred R David (2006), "Explanatory on Strategic Management", Vietnamese version, Statistical Publishing house Michael Porter (2009), "Competitive Advantage", Vietnamese version, Tre Publishing house Michael E.Porter (1996), Chiến lược cạnh tranh, NXB Khoa học Kỹ thuật Philip Kotler (2003), Quản trị marketing, NXB Thống kê Nguyen Thi Lien Diep, Pham Van Nam (2003), "Strategy and Business Policy", Statistical Publishing House GS.TS Hồ Đức Hùng (2000), Quản trị toàn diện doanh nghiệp, NXB đại học quốc gia Tp.HCM PGS.TS Trần Ngọc Thơ (2007), Tài doanh nghiệp đại, NXB Thống kê FRED R.DAVID, Concept of strategic management, Statistic Publishing house in 1998 Garry D.Sith Danny R.ARnold - BobbyG.Bizzell, Strategy and business strategy - Statistic Publishing house 1997 10 Report of business results, financial statements of Thanh Linh Co., Ltd in 2010, 2011, 2012 - 80 - APPENDIX Here is the statement regarding the matter: The impact to business results and competitiveness of Thanh Linh Company Limited Please answer by marking in box, expressing your choice under below standard Importance rating: Choose 1: Absolutely not important Choose 2: Less important Choose 3: Average Important Choose 4: Quite important Choose 5: Very important Assessment of response (dynamics) of the Company: Choose 1: Weak response Choose 2: Average response Choose 2: Quite response Choose 4: Good response Assessment of internal operations: Choose 1: Weak Choose 2: Average Choose 2: Good Choose 4: Very Good - 81 - OUTSIDE ENVIRONMENTAL FACTORS Company's Importance response Political stability 4 4 4 4 4 4 4 4 4 4 4 Policies to encourage the development of petroleum Economic growth Rising inflation Demand for oil is high Social pressure on the oil and gas business Increasingly scientific and technical development Rising gasoline demand in the future The participation of new companies Not all resources provided New business trend, replacement products Fierce competition between rival - 82 - FACTORS IN COMPETITIVENESS Response Importance of Company The growth rate of gasoline Market shares of the Company Prestige of brand Size of the company Quality of service Sales Policy Ability to compete on price, remuneration Financial ability Marketing ability of the Company After-sales service Place of business advantage System-wide distribution - 83 - INSIDE ENVIRONMENTAL FACTORS - 84 - Importance Reviews of quality Financial Capability 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 Flexible price (retail price, wholesale, dealer fees ) Reputation Stable source Direct Retail Systems Dealer Network Dominate market share High capacity transport Level and quality of human resources Flexibility in payment Quality and quantity of goods Pre-support services, during and after sale Facilities, modern equipment Near freight route Ability to identify the opportunities and threats Organizational structure of the company Support Information systems - 85 - ... ability to make a difference 1.1.4.2 Typical strategy of enterprises Definition: Typical strategy is a comprehensive approach, in order to achieve the overall objectives of the business The typical... competitors The ability of the price squeeze suppliers Supplier The risk of new competitors The ability of the customer price The pressure competitors in the sector The intensity of - competition... companies have competitive advantages in product quality, after-sales services or the possibility of product specialization The brand loyalty is preventing new participating businesses from grabbing