XÂY DỰNG CHIẾN lược KINH DOANH CÔNG TY sản XUẤT PHỤ TÙNG ôtô và THIẾT bị CÔNG NGHIỆP JAT GIAI đoạn 2012 – 2020 e

THESIS BUSINESS STRATEGY FOR JAT AUTOPART AND INDUSTRIAL EQUIPMENTS MANUFACTURING JOINT STOCK COMPANY PERIOD 2012 – 2020 TABLE OF CONTENT TABLE OF CONTENT .2 INTRODUCTION .8 Thesis significance .8 Thesis objectives and applications .9 Research methodologies .9 Thesis structure and layout: The thesis is divided into parts as followed 10 CHAPTER I .10 THEORETICAL BASIS OF MAKING ENTERPRISE BUSINESS STRATEGIES .10 Overview of the enterprise development strategy 10 1.1 The concept of enterprise strategy 10 1.2 The role of strategy for enterprise .12 1.3 The level of strategic management in the enterprise 13 1.4 The development strategies of the enterprise 13 Strategic planning of enterprise development 15 2.1 Strategic planning process of enterprise development 15 2.2 Strategic planning tools 18 2.3 Principles of choosing strategy 25 2.4 Evaluate the selection strategy 29 CHAPTER II 31 BUSINESS AND PRODUCTION ANALYSIS OF JAT AUTOPART AND INDUSTRIAL EQUIPMANT MANUFACTURING JOINT STCOK COMPANY 31 I GENERAL INTRODUCTION ABOUT JAT AUTOPART AND INDUSTRIAL EQUIPMANT MANUFACTURING JOINT STCOK COMPANY 31 Foundation history and development of the company 31 1.1 Foundation process 31 1.2 Functions and tasks 33 1.3 Mission, vision, philosophy in business 34 Manpower of the company .37 2.1 Capital resource 37 2.3 Human resource 38 2.3 Technology 39 3.1 Investment 40 3.2 Business and production status 42 II ANALYSIS OF BESIDE FACTORS INFLUENCING THE COMPANY 45 Macro environment 45 1.1 Economic environment 45 1.2 Legal – politic environment 48 1.3 Social culture environment 49 1.4 Technological environment 50 1.5 natural environments 50 Analysis of industry environment .51 2.1 Analysis of competitive forces from potential rivals 51 2.2 analysis of customer force 52 2.3 Analysis of supplier’s force 53 Opportunities and challenge 55 3.1 Opportunities 55 3.2 Challenges 56 Analysis of competition, matrix model CPM 57 Matrix model EFE .58 III ANALYSIS OF THE COMPANY INTERNAL SITUATION 60 Analysis of supporting activities .67 2.1 Supplier management 67 2.1 Human resource management 68 2.3 General management 69 Analysis, recognition and evaluation of valuable and core capacity 70 IFE Matrix 71 IV SWOT ANALYSIS 72 CHAPTER III .73 CONCLUSION AND RECOMMENDATION 73 I ENTERPRISE DEVELOPMENT STRATEGY PERIOD 2012-2020 73 The strategy targets 73 1.1 For the scale and market share 73 1.2 Detailed targets 73 II TARGET SUGGESTION .74 TOWS matrix 74 SPACE matrix model 76 Suggestion of strategy selection through QSPM matrix 78 3.1 QSPM matrix for SO group 78 3.2 QSPM matrix for ST group 81 3.3 QSPM matrix for WO group 82 3.4 QSPM for WT group .83 III SUGGESTION OF STRATEGY IMPLEMENTATION SOLUTIONS 85 Human resource solution 85 Financial solutions .87 Marketing solutions 87 The research and development solutions 88 IV PROPOSAL TO THE GOVERNMENT 88 CONCLUSION 90 REFERENCES 91 LIST OF FIGURES Figure 1-1 Strategic planning of enterprise development diagram 16 Figure 1-2 Diagram of comprehensive strategic management 18 Figure 1-3 Flow sheet diagram of analyzing strategy formation .19 Figure 1-4 Model of SWOT matrix 23 Figure 1-5 Model of QSPM matrix 24 Figure 1-6 The main strategic matrix .28 Figure 2-7 Chart of Structure 35 LIST OF TABLES INTRODUCTION Thesis significance Building strategies is a regular work of any enterprises The determination of proper strategies decides the target success and the mission of the enterprises However, not all the Vietnamese enterprises develop right strategies Failure of the enterprises is the evidence for the inadequacy in the strategy Therefore, strategy building is always paid special attention with its full significance and urgency even for the companies with inherent good strategy In the situation of Vietnam integration into the world economy, the strategy building is much more important Good opportunities come together with bigger challenges For competing successfully, the enterprises must determine the right approach, good strategy based on deep acknowledgement on its strength and weaknesses, opportunities and risks In reality, many enterprises, especially small and medium enterprises pay less attention to strategies; even they not build a strategy for their companies The primary reason is because these enterprises are not aware of the significance of strategies During the development history, in the sector of automobile and motorbike manufacture, the immature and slow-developed Vietnam auxiliary industry is the largest barrier which hinders the development of automobile and motorbike industry development One of the reasons for the poor development of auxiliary industry is that the enterprises not focus on building the thorough business strategy The thesis is written as a necessary mean for building a form of small, reduced and effective business unit of manufacturing motorbike spare parts, contributing to pushing the car and motorbike industry development and its auxiliary industry development Thesis objectives and applications - For theoretical bases: + All the subjects studied during the course IeMBA are used in the thesis and then applied to the practical manufacture and business of the Jat Autopart and Industrial equipments manufacturing Joint Stock Company in the most effective way - For the practical usage: +Help the Jat Autopart and Industrial equipments manufacturing Joint Stock Company successfully build the highly feasible business strategy for the period 2012-2020 +Build the Jat Autopart and Industrial equipments manufacturing joint stock Company to be an auxiliary enterprise which is small, reduced and effective + Create a breakthrough in strategy contributing to pushing up the development of auxiliary industry in the coming years Research methodologies - The main method used for the thesis research is the description stastistic and the strategic planning matrix ( Internal factor evaluation matrix- IFE, external factor evaluation matrix -EFE, competition image matrix method, SWOT matrix and so on) The theoretical base of these matrixes is presented in the chapter of this paper - Information collection: + Primary information: collected from the Vietnam Automobile Manufacturers Association from the Honda Vietnam and the statistical data from the Jat Autopart and Industrial equipments manufacturing joint stock company will include audited financial and accounting data + Secondary information: Direct interview with employees of sales department and manufacture department Give out survey sheets to customers and suppliers Information analysis: Apply statistical techniques to handle, calculate, compare and assess, then give conclusion for each studies items Thesis structure and layout: The thesis is divided into parts as followed Introduction Chapter I : Theoretical bases for building the business strategy Chapter II : Analyze the current situation of the Jat Autoparts and industrial equipments manufacture joint stock company Chapter III : Conclusion and recommendations Reference list Appendix CHAPTER I THEORETICAL BASIS STRATEGIES OF MAKING ENTERPRISE Overview of the enterprise development strategy 1.1 The concept of enterprise strategy 1.1.1 What is strategy? BUSINESS Figure 3.1: SPACE matrix chart Suggestion of strategy selection through QSPM matrix 3.1 QSPM matrix for SO group Table 3.2: QSPM matrix for SO group Strategies which can be replaced Factors Mixed diversification strategies: Development of new products Product Domestic which are not development market related to the Classification (increase the development existing products current (Develop new in term of product customers) technology and groups) market (auto parts industry development in the international market) Factors Internal factors Good production capacity Stable quality Low-cost production Good relationship with customers Core capacity Effective management system Management team’s competences Technology upgrading ability Good supporting activities Low ratio of 10 liability/total assets (25.7% ) External factors The motorbike market returns to be stable from 2012 year end Government policies for the auxiliary industry Classification Strategies which can be replaced AS TAS AS TAS AS TAS 3 9 12 3 9 4 16 12 4 16 12 12 3 9 12 3 9 3 12 12 3 12 3 9 3 12 0 3 3 9 Strategies which can be replaced Foreign investment in the motorbike assembly industry and the domestication Factors Classification policy The investment shift of Japanese companies from China to the South East Asia Stable political environment The natural environment and the traffic culture of Vietnamese people The integration into global business environment, creating opportunities for export enterprises Large motorbike consumption market Reduced interest rate Total attraction score 6 12 6 9 4 16 12 12 6 165 163 160 The strategy selected for SO group is The product development strategy (increase the current product group) because TAS = 165, which is highest 3.2 QSPM matrix for ST group Table 3.3: QSPM for ST group Factors Internal factors Good production capacity Stable quality Low-cost production Good relationship with customers Core capacity Effective management system Management team’s competences Technology upgrading ability Good supporting activities Low ratio of liability/total 10 assets (25.7% ) External factors The potential competitors of the same sector Strategies which can be replaced The core Building capacity is to Classification thorough focus on the selling price sector policies development AS TAS AS TAS 12 3 9 4 16 12 4 16 12 12 3 9 3 12 3 12 3 9 3 12 12 4 16 2 4 2 4 2 2 2 The current competitors of the same sector The high bargaining of domestic customers The policy of restricting vehicles to large urban areas Macro economic factors are not stable: inflation, exchange rate Legal risks like protection of intellectual property right Energy shortage (Electricity) Total attraction score 149 147 The selected strategy for ST group is that The core capacity is to focus on the sector development because TAS = 149, which is the highest 3.3 QSPM matrix for WO group Table 3.4: PSPM for WO group Factors Internal factor Recruitment and training system Young and less experienced R&D department Young, less experienced and less skilled laborers The financial source is not strong enough The information management The production scale is not large Market share is not high External factors The motorbike market returns to be stable from 2012 year end Government policies for the auxiliary industry Strategies which can be replaced Cooperating Building Building with partners and the strategy who are smallClassification deployment of scale production of Human developing company to resource the IT deploy large development system orders AS TAS AS TAS AS TAS 12 6 3 9 2 4 6 12 2 4 3 3 4 0 3 6 Foreign investment in the motorbike assembly industry and the domestication policy The investment shift of Japanese companies from China to the South East Asia Stable political environment The natural environment and the traffic culture of Vietnamese people The integration into global business environment, creating opportunities for export enterprises Potential of large motorbike consumption Reduced interest rate Total attraction score 3 9 6 6 6 16 12 12 12 108 110 103 The selected strategy for WO group is to build and develop the IT system because TAS=110, which is highest 3.4 QSPM for WT group Table 3.5: QSPM matrix for WT group Factors Strategies which can be replaced Cooperate with Building and enterprises of the promoting the same scale in the strategy of country, Classification investing into participate into the R&D departments association to for substitute improve the product competitive developments strength Internal factors Recruitment and training system Young and less experienced R&D department Young, less experienced and less skilled laborers The financial source is not strong enough The information management The production scale is not large Market share is not high External factors The motorbike market returns to be stable from 2012 year end Government policies for the auxiliary industry Foreign investment in the motorbike assembly industry and the domestication policy The investment shift of Japanese companies from China to the South East Asia Stable political environment The natural environment and the traffic culture of Vietnamese people The integration into global business environment, creating opportunities for export enterprises Potential of large motorbike consumption Reduced interest rate Total attraction score AS TAS AS TAS 12 12 6 3 2 4 2 3 3 6 6 2 2 2 3 99 87 The selected strategy for WT group is to build and promote the investment into the R&D department to research and develop substitute products because TAS=99, which is higher than the remaining selections In short, through strategy analysis by the QSPM matrix, we can choose the following strategies (by the priority order) The product development strategy ( increase the number of product groups in the current market by marketing effort and customer relationship Development of domestic market ( bring equivalent products into the market consumption by new domestic customers) Mixed variation strategy: Development of new products which are not related to the existing products in term of technology and market (Autoparts development in the international market) The strategy of focusing on sector development, which is core capacity 5.Building the strategy of IT system development Building and promoting the strategy of investment into R&D department to study and develop substitute products III SUGGESTION OF STRATEGY IMPLEMENTATION SOLUTIONS Human resource solution Adjustment of the organization structure to aim at customers Figure 3.2: JAT organization chart - Divide the work into functional departments - Each department is working towards meeting customer needs, and have an equivalent relationship with customers - Supplementation of staff positions for human resources planning, who are responsible for HR strategy, in charge of recruitment and public relation - Amendment to the policy of wages, allowances, bonuses to attract qualified personnel and to retain capable and enthusiastic employees to work in the company for long time To timely recognize and reward employees with achievement and reward information is publicly available in the entire company Decentralize the power and give authorization reasonably, at the same time monitor the authority implementation of all level thoroughly Increase the attractiveness of work by adding task specific features to the job description Perform the constant staff rotation policy to create regular new feeling and challenges to the middle management staffs Financial solutions - Improve the method of estimating and managing the operation budget - Search for the low-cost capital sources for the product expansion projects like foreign capital, foreign investment funds - Diversify the mobilization method to minimize risks Marketing solutions - Re-enforce the customer relation - Enhance the company image advertisement to partners + The Company builds a measurement set to assess the customer satisfaction by periodical investigation questionnaires released to the staffs communicating with customers from the doorman, the warehouse men to production workers who use products and their managers to investigate the slightest dissatisfaction and have immediate solutions + The company builds the fast-response procedure with positive feedbacks to customer’s complaint + The company encourages staffs to keep the best relationship with colleagues of the same levels and same customer relationship by exchanges, visit and conversation about families and closed people + The company builds the policy of key people (who hold the special role in customer relation), tries to develop and keep the best relationship with them with the aim of creating value, trust and loyalty to the company In addition, the Jat Autopart and Industrial equipments manufacturing joint stock company is a medium company, so the business management policy can easily satisfy the customer requirements, so the company has been conquering the trust and love of customers ( which has not been successfully done in many large companies) + Electronic channel management system: The company has built a website to promote the commercial activities with foreign partners, taken part in forum of autoparts in the country and in foreign countries to exchange information, learn from experiences and find partners The research and development solutions + The company determines that for long term and stable development, it is neccessary to build the sufficiently strong R&D department to take deep researchs on the future market trend and design products of high technology IV PROPOSAL TO THE GOVERNMENT 4.1 Support enterprises of the auxiliary industry in general and the automobile parts in particular in term of supporting policies, staff training through training on management sknowledge and skills, seminar, automobile and motorbike special training in Vietnam 4.2 Supporting the enterprises of the auxiliary industry in general and the automobile parts in particular by trade promotion for expanding the market to foreign countries (because in the domestic market, the automoblie industryy has not been developed) 4.3 Complete the related main industry development planning in mid term and long term, which is the high standart steel production serving the autopart manufacture, steel tube welding, cold surface hammering of steel tubes with high precision 4.4 There are policies for domestic companies not to be discriminated by some foreign companies 4.5 Create the healthy business enveironment, completing the legal system CONCLUSION The thesis has been written in a short time, month, which is not sufficient for the author to take a deep research with full description of the market situation and the company internal situation The evaluation and weighted score for the factors is done with the author’s ideas, so it is partly subjective I would like to say sincere thanks to the Professor, Doctor Duong Ngoc Dung and the Professor, Doctor Vu Thanh Hung, who have instructed me to complete the thesis REFERENCES Strategic Management Lessons– Associate Professor, Doctor Vũ Thành Hưng, National Economics University, Lecturer of Strategic Management Subject b01- PGSM Effective Business Strategy, First News and Hochiminh Complex Publishing House Don Taylor and Jeanne Smalling Archer (2004), Up Against the Wal-Marts, The Statistical Publishing House, Hanoi Fred R.David (2006), Strategic Management, the Statistical Publishing House Garry D.Smith, Danny R.Arnold, Bobby G.Bizell (1997), Business Strategy and Policy, the Statistical Publishing House Ian Chaston (1999), Customer focused marketing, Dong Nai Publishing House Michael E.Porter (2006), Competition Strategy Complex Publishing House, Hochiminh city Stephen J.Wall and Shannon Rye (1995), The New Strategists, The Free Press Wchan Kim and Reneé MauBozgne (2006), Blue Ocean Strategy, Intellectual Publishing House ... create the inertia reduces impacts of the next strategies 2.3.6.5 The external dependence level Some enterprises depend greatly on one or many external factors (a supplier or a customer) These... Identify the suitable investment portfolio Need to select a suitable investment portfolio to create the expected efficiency through the implementation of the enterprise-level goals However, the... strategies is a regular work of any enterprises The determination of proper strategies decides the target success and the mission of the enterprises However, not all the Vietnamese enterprises develop