Phân tích sự cần thiết về xây dựng chiến lược – mô hình chiến lược tại công ty trần anh e

Phân tích cần thiết xây dựng chiến lược – mơ hình chiến lược Cơng ty Trần Anh PART I: INTRODUCTION In the context of the fierce competition economy as currency, an enterprise wants to be successful; it may not be passive to the change of environment An enterprise wants to be successful; certainly it must know what it is doing and what will do? And if so, what is result To answer these questions requires a certain knowledge not by rather than subjective feeling By far, the foreign enterprises have been a far and wide vision in business and they have proven their success in occupying the majority of the “lucrative" markets in the local countries However, for Vietnamese enterprises, it is passive with the environment changes, slow changes, not having long term vision which still exists in many enterprises Why foreign enterprises have such flexibility in business? The answer is that most foreign enterprises entering a new market are equipped with certain business strategies Because of the above reasons, exposure to the knowledge of business strategy is essential for an enterprise in Vietnam in general and the commercial enterprises in particular According to my personal opinion, if an enterprise builds a correct strategy, it will bring the basic benefits for the enterprise as follows: The enterprise has orientation in the future, and always is sustainable development, is active in the activities Enterprise will not encounter many risks and obstacles in business, competing with rivals when having the volatility of macroeconomic policies or market changes The enterprise will have high profit, people in the enterprise will have sufficient motivation, psychological stability, and are determined to work long term for enterprise, combining strength and toward to one target of all people in the enterprise PART II: CONTENT Before analyzing basic benefits of business strategy, let's find out what the strategy is, and with method to build the most effective business strategy: 1 Concepts about Business strategy 1.1 The perpection of strategy: According to Alfred Chandler, strategy is “the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals” James B.Quinn defined strategy as “the pattern or plan that integrates an organization’s major goals, policies and action sequences into a cohesive whole” On the other hand, the strategy definition of McKinsey (1978) is “Strategy is an integrated set of actions designed to create a sustainable advantage over competitors" The planning and implementation of business strategies have an important influence on the survival and development of enterprises The role of business strategy is demonstrated through the following aspects: + Business strategy helps businesses realize their purposes, and directions, acting as a basis and guideline for all the business activities of the enterprises + Business strategy helps businesses understand and take advantage of business opportunities, and proactive measures to overcome the risks and threats in the competitive market + Business strategy contributes to improve the efficient use of resources, enhance the competitive position of the business to ensure the sustainable development of enterprises Business strategy also creates a firm basis for the formulation of policy and other decisions about production in regard of market fluctuations 1.2 - Types of strategy Corporate-level strategy Corporate level strategy: a strategy to identify and define the purposes and objectives of the company, identify the business which the company pursue, create policies and plans to achieve basic corporate goals, allocate resources among business activities Company strategy is applied to the entire enterprise - Business-level strategy: This strategy is planned to determine the selection of specific products or the market for their own business operations within the company In the business strategy level, we identify how each business unit must performance to contribute to the achievement of company goals - Functional -level strategy The strategy focuses on functionally supporting for corporate strategy and business strategy For single-industry business units and multi- industry ones, function-level strategy is similar These function-level strategies form the basis for other strategies such as marketing strategy, financial strategy, strategic research and strategic activities to strengthen the competition strategy of the business and determine the actions and processes to gain the business benefits from its competitive position - Global strategy Today, in the world of global markets and global competitions, to gain a competitive advantage and maximize the performance of the company, it is increasingly requiring companies to expand its operations beyond the borders of their home countries Thus, the company would need to consider the different global strategies to pursue The benefits and costs to expand the markets beyond the local borders will be evaluated and considered in the selection process of the suitable strategies Methods for building a business strategy 2.1 Macro Environment Analysis - PEST Model Political and Legal Factors, Economic Factors, Socio cultural Factors, Technological factors 2.2 Industrial Environment Analysis A model of forces affecting the business strategy developed by M.Porter will be used in this analysis Figure Porter’s Forces 2.3 Combining all the parts of the macro environment and industry environment, we have following diagram Economic Environment Technological Environment Pressure of supplier Enterprises and competitors Pressure of the buyer Social cultural environment Subsidiaries Legal, political Environment Natural Environment Diagram: Factors of the macro environment and industrial environment In summary, the analysis of the business environment is extremely important for businesses The goal of the analysis is to examine the environment to identify opportunities and threats, then make reasonable management decisions based on that basis 2.4 Strategic building tools According to Fred R David, important techniques to form a strategy consist of three stages, the tools used for this process can be applied to all sizes and types of organizations, and they help administrators identify, evaluate and select strategies, and are expressed through the following stages: Diagram: Model of building a strategy The input stage External Factor Evaluation Competitive Profile Internal Factor Evaluation Matrix (EFE) Matrix (CPM) Matrix (IFE) The matching stage Strengths-WeaknessesOpportunities-Threats Boston Consulting Group Matrix (BCG) External – Internal Matrix (IE) Grand Strategy Matrix Matrix (SWOT) The decision stage Quantitative Strategic Planning Matrix (QSPM) Source: Fred R David, Strategic Management Concepts and Cases, Figure 6-2, P.222 Stage 1: the input stage includes EFE Matrix, IFE matrix, Competition Profile Matrix This stage summarizes the basic information that was entered into the form needed for the strategy Stage 2: this stage is called a combined period to offer feasible strategic options by arranging, combining important elements inside, and outside In this stage, we select one of the matrices such as CPM, SWOT, IFE, and EFE In this thesis, the group has used the above matrices, from which we combine the factors to carry out an appropriate strategy Stage 3: this is the decision-making stage, which includes only one technique that is to use Quantitative Strategic Planning Matrix (QSPM) This matrix uses the information entered in the first stage to objectively evaluate the feasible strategies that can be selected in two stages to choose the most appropriate strategy Analysis of the basic benefits that strategy brings for enterprise 3.1 Enterprise will not encounter many risks and obstacles in business, competing with rivals when having volatility of macroeconomic policies, market changes In the market economy with fierce competition, an enterprise wants to be successful, it must have a strategy That means that business managers must understand the changing trends in the market, finding the key factors for success, to exploit the advantages of the enterprise, recognize weaknesses of the enterprise, understand the competitor, the desire of the customer, the approach to market, from that making the creative decision to deploy or cut operations at the certain time and geographical areas Give a specific and effective business direction, as the guideline for all functional activities of the enterprise Help enterprises to promote the competitive advantage, strengthen business, developing market share Help enterprises to limit the risks to a minimum level, enabling businesses long-term stability and continuous growth The company without a strategy likes a person going on the road without determine where to go, being pushed in any direction they move in that direction If continue to go like that, he will only be a mediocre and alone in the crowd Business will fully adapt to changes in macroeconomic policies to suit modern business conditions, such as policies on tax exemptions for foreign enterprises to invest in Vietnam, increasing competition among domestic enterprises When having the foreign products sold the same or lower prices with the local, if the enterprise does not have previous orientation, it completely has disadvantage because of the market changes, changes in customer amount, and changes in product prices An enterprise will not want to consign future of its enterprise for the market and being leaded by the competitor To so, it must proactively show a path and try to effect to lead the market in this direction which was prepared by the enterprise and therefore will get more advantages than others In any public confrontation, which rival can impose its direction on the opponent, it will be much better chance of winning Therefore, the enterprise can develop and integrate with the world For example: The Story of investing abroad of Viettel is not only special in two neighboring countries Before Viettel come to Haiti (a country in the Americas) to invest, the relationship between Viet Nam and this country is quite limited Even, this country has not had representative agency in Vietnam However, after investment activities of Viettel, the Prime Minister of Haiti have an official visit to Vietnam opened a new high level of relationship Late in 2012, Viettel has become a "special envoy" during a visit of the Prime Minister Republic of Haiti to Vietnam During that trip, there was an unprecedented event in diplomatic history of Vietnam when an enterprise becomes a "partner" of the Government With the presence of Prime Minister Nguyen Tan Dung, Prime Minister Lauren Xanvađo Lamôthê and Hoang Xuan - General Director of Viettel signed a Viettel memorandum that becomes strategic investment partner of the Government of Haiti In fact, Viettel has created a fairy tale in Haiti when the Vietnam company continue to invest after the earthquake that killed more than half a million people and 80 % of the destroyed infrastructure At that time, the AP newspapers has quite a long essay titled “Vietnam Army will become the savior of Haiti's telecommunications industry" After 14 months of construction, NATCOM - Viettel Telecom brand in Haiti has officially provided services and created a leap in telecommunications infrastructure of this country 3.2 The enterprise has orientation in the future, and always develops sustainably, is active in the activities Strategy is very important for development of an enterprise and more important, in today's age of globalization, enterprises compete fiercely, using much guise to attract customers and taking market shock As a leader of an enterprise, we must build a long -term development strategy Building a strategy, it must be careful and meticulous, must have close evidence, must be peer-reviewed and predictions for the future, to choose the path to success for the enterprise Strategy must be implemented seriously, not deviate to the outlined strategy Building highly professional staff to develop strategies for its enterprise Must clearly identify the objectives of the enterprise to plan and formulate strategies accordingly And if not determine your goals and build yourself a specific and appropriate trading strategies, the enterprise will not develop, and not follow any, or pale next to other businesses same industry or business is bankrupt Thus the enterprise can exist and develop and proactive in work, not depend on any factors Example: In term of building strategy, willing to be loosen in short term to build long -term development strategy of the Tran Anh electronic retail system Tran Anh currently has 11 supermarkets, with the goal to build 25 supermarkets in 2015 The company mainly used the own capital Late in 2012, the equity is over 245 billion, plus the new investment of 64 billion of Nojima, Tran Anh has a total of 300 billion, enough for its plan Also, when the real estate market is slow down as currently, opening supermarkets not cost as before; a maximum of about 10 billion Dong for one location It is when having to renovate, even if in the form of the building, it were built with at less more than billion Dong Thus, we can calculate that if they open up to a dozen supermarkets, it is less than 100 billion which is of the company's capabilities With the amount of equity of 300 billion, Tran Anh is still pretty confident The worst scenario is that, the company could at least years of losses With the above strategy, Tran Anh is expected to improve the ranking position on the retail enterprises and achieve goals in the top in next years 3.3 The enterprise will have high profit, people in the enterprise will have sufficient motivation, psychological stability, and are determined to work long term for enterprise, combining strength and toward to one target of all people in the enterprise With the suitable and timely construction and development of strategies, catching the opportunity, not waste time and money; Always being ahead of competitors in the market exploration, making rational policy, strengthen relationships with customers, together with the Marketing team to have that professional market research and competitor controversy, so the development of businesses will surely bring success and profit for that business But to sustain and grow, must have steady steps So now sets targets associated with the long-term development of employees and enterprise These goals are not esoteric things far removed from reality, which is clear, understandable to everyone, since it changes the basic mindset of each employee’s awareness to better understand their responsibilities and obligations for the enterprise, contribute their effort, intelligence, enthusiasm for the incremental development of the enterprise Taking human resource as the root, building positive relationships with staff, making decision at the right time For example, Building linkages between enterprises and employees of the Huu Nghi Confectionery Company: The Human resources of Huu Nghi are young people with basic academic background, is entering the stage of "ripening" of the age and seniority Leaders are well trained, with good vision It's the "man of Huu Nghi" will create a “Huu Nghi culture" The creating enterprise culture is conducted from the smallest and the most practical things in the operation of the enterprise In Huu Nghi, she has created the material conditions and cultural environment to fully develop the professional capacity, creative thinking, and passionate dedication of the staff to build a personal career and development of the company in a sustainable way Spiritual life of officers and employees are interested, visit the sick, to be held quarterly birthday, visit and participate in cultural festivals, fitness, sports Work environment is continuously improved, work space is ensured with industrial hygiene children of officials and employees are concerned, are rewarded when having achievements in learning thus in the context of difficulties as currently, it 's critical of leaders is to have the link among stages, parts, united as one, from the Board of Administration to the Board of Directors and all officers and employees create general strength, steadily implement outlined strategy to overcome difficulties, take the enterprise grows To this, she and the executive board have determined to direct the production, business to reduce costs, enhance innovation, technical innovation, improve labor productivity, innovative research, and produce differentiated products which are rich in gray matter volume in order to create competitive advantage Become a number one food and Confectionery Company in Vietnam and among the top 10 largest confectionery manufacturers in Southeast Asia in 2025 that is the target of Huu Nghi in the future In the near future, Huu Nghi completes nationwide distribution – sale networks and boosts exports to countries in Europe, North America; ensure the proportion between domestic consumption and exports reached 7030 % ratio with the sales scale of 1,500 billion VND in 2015 The above mention is my assignment of Strategic Management subject, I look forward to receive the comments of the lecture to further complete my assignment and I would especially like to thank Assoc Prof Vu Thanh Hung – National Economic University has transmitted me the incredibly useful knowledge about the Strategic Management subject References: The curriculum of Assoc Dr Vu Thanh Hung, (Deputy Director, Institute of Business Administration - National Economics University, Hanoi) Concept of Strategic Management, Fred R.David, Statistics Publisher 2006 Competitive Strategy - Michael E.Porter Publishing House of Science and Engineering Hanoi Saigon Economic Times http://www.vietnamnet.vn http://www.cafef.vn 10 ... close evidence, must be peer-reviewed and predictions for the future, to choose the path to success for the enterprise Strategy must be implemented seriously, not deviate to the outlined strategy... strategy contributes to improve the efficient use of resources, enhance the competitive position of the business to ensure the sustainable development of enterprises Business strategy also creates... advantages of the enterprise, recognize weaknesses of the enterprise, understand the competitor, the desire of the customer, the approach to market, from that making the creative decision to deploy