Development of business strategy for song da 11 joint stock company in the period of 2018 2023 with visions to 2030

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - TRẦN THANH GIANG FORMULATION OF BUSINESS STRATEGY FOR SONG DA 11 JOINT STOCK COMPANY FOR THE PERIOD 2018 - 2023 AND ORIENTATION TO 2030 XÂY DỰNG CHIẾN LƯỢC KINH DOANH CHO CÔNG TY CỔ PHẦN SÔNG ĐÀ 11 GIAI ĐOẠN 2018 – 2023 VÀ ĐỊNH HƯỚNG ĐẾN NĂM 2030 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - TRẦN THANH GIANG FORMULATION OF BUSINESS STRATEGY FOR SONG DA 11 JOINT STOCK COMPANY FOR THE PERIOD 2018 - 2023 AND ORIENTATION TO 2030 XÂY DỰNG CHIẾN LƯỢC KINH DOANH CHO CÔNG TY CỔ PHẦN SÔNG ĐÀ 11 GIAI ĐOẠN 2018 – 2023 VÀ ĐỊNH HƯỚNG ĐẾN NĂM 2030 Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS HỒNG ĐÌNH PHI HÀ NỘI - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… i ACKNOWLEDGEMENTS I would like to express my deepest gratitude to all of the following people for helping me complete my thesis Firstly, I would like to express my special thanks to my company for giving favorable conditions for my study and my master thesis completion at Hanoi school of business and management (HSB) Secondly, I am extremely grateful to all of the lecturers from the Department of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process My profound gratitude is also conveyed to my instructor for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support Despite the efforts during the research period, there are still many limitations in the thesis I would hope to receive valuable comments from the teachers and coworkers to make this essay more complete Thank you very much./ Ha Noi, ii 2019 TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENTS ii LIST OF TABLES v LIST OF PICTURES vi INTRODUCTION Chapter 1: LITERATURE REVIEW ABOUT DESIGNING BUSINESS STRATEGY 1.1 Concept and classification of business strategy 1.1.1 Concept of business strategy 1.1.2 Roles of business strategy 1.1.3 Basic characteristics of business strategy 1.2 Business strategy planning process 1.2.1 Analysis of external and internal environment 1.2.2 Develop matrix to select business strategy 15 1.2.3 Select business strategy 20 Chapter 2: ANALYZE AND SELECT THE BUSINESS STRATEGY FOR SONG DA NO 11 JOINT STOCK COMPANY 23 2.1 Overview about the Company 23 2.1.1 History of development, organizational structure 23 2.1.2 Business performance in the period of 2015 – 2017 25 2.2 Analysis of external and internal environment 28 2.2.1 Analysis of external environment 28 2.2.2 Analysis of internal environment 42 2.2.3 Develop matrix to select business strategy 51 2.3 Select business strategy for SJE 64 2.3.1 Develop matrix to select business strategy 66 iii 2.3.2 Select business strategy 69 Chapter 3: SOME POSSIBLE RECOMMENDATIONS TO LAUNCH SJE BUSINESS STRATEGY IN THE PERIOD OF 2018 - 2023 76 3.1 SJE's objectives to 2023 with visions to 2030 76 3.1.1 Objectives to 2023 76 3.1.2 Visions to 2030 79 3.3 Recommendations on implementation solutions 80 3.3.1 Solutions on strategy and plan management 80 3.3.2 Production management solutions 81 3.3.3 Marketing management solutions 82 3.3.4 Solution group on human resources management 83 3.3.5 Financial management solutions 85 CONCLUSIONS 87 LIST OF REFERENCES 88 iv LIST OF TABLES Table 1.1 - External factor matrix .16 Table 1.2: Competitive Profile Matrix .16 Table 1.3: Internal Factor Matrix 17 Table 1.4: SWOT Matrix Table 19 Table 1.5: QSPM Matrix 21 Table 2.1: SJE’s business performance in the period of 2015 – 2017 26 Table 2.2: List of some outstanding suppliers of SJE .41 Table 2.3: SFE’s asset structure in 2015 - 2017 .45 Table 2.4: SFE’s financial structure in 2015 - 2017 47 Table 2.5: SJE’s External Factor Matrix (EFE) 51 Table 2.6: Rival comparison table 52 Table 2.7: SJE’s Internal Factor Matrix (IFE) 53 Table 2.8: Some socio-economic criteria 61 Table 2.9: SWOT Matrix of SJE .66 Table 2.10: QSPM Matrix 70 v LIST OF PICTURES Figure 1.1: Business strategy Figure 1.2 Business strategy planning process Figure 1.3: Macro-environment Figure 1.4: Five competition force model 11 Figure 1.5: Internal and External Factor Matrix (IE) 18 Figure 1.6: BCG Matrix 19 Figure 2.1: Organizational structure 24 Figure 2.2: IE Matrix .54 Figure 2.3: BCG Matrix 55 vi INTRODUCTION Rationale Technology development and increasingly cut-throat competitiveness are always driven by market globalization As a result, strategy becomes an extremely essential factor not only for enterprises but also a whole nation Submerging into the flow of economic integration and development, Vietnam has been gradually launching the country industrialization and modernization, improving the physical facilities and technical infrastructure to serve for the socio-economic development Thanks to the economic integration, Vietnamese enterprises are facilitated to operate in a dynamic business environment and increasingly cut-throat competition is also caused by increased resource scarcity, the society’s ever-changing demand and consumption tastes are recognized Moreover, increased presence of foreign enterprises is recorded With response to such difficulties and challenges, Vietnamese enterprises are required to design a sound, stable and sustainable orientation strategy in accordance with its intrinsic capacity and adaptability to the business environment changes to successfully archive the sustainable development and integration For this purpose, enterprises must identify and plan its objectives, develop a sound and feasible business strategy and launch a series of solutions to deploy the strategy in the most effective manner A good business strategy facilitates the enterprises to grasp the business opportunities, obtain the biggest profit, the reliable and safety market position, expand its market share and affirm the trademark Therefore, business strategy planning must be considered with many external and internal, objective and subjective factors in combination with systematic data analysis to act as the basis of the enterprises’ short term and long term operation plan Former a Utility Team under Thac Ba Hydropower Corporation, Song Da No 11 Joint Stock Company was incorporated on 1st June 1961 In 1976, the entity moved to Hoa Binh town to build Hoa Binh Hydropower Plant and renamed as “Power and Water Assembly Enterprise” under Song Da Corporation In 1989, Power and Water Assembly Enterprise was upgraded as a Power and Water Construction Company in accordance with the Decision No 03/TCT-TCLĐ of Song Da Corporation dated 12th December 1989 In 1993, Power and Water Construction Company was renamed as “Energy Construction Company” under Song Da Corporation as decided by the Ministry of Construction On 11th March 2002, the Ministry of Construction promulgated the Decision No 285/QD to rename as Song Da 11 Company With response to the Resolution TW3 on renovation and restructure of the State-owned enterprises, the Ministry of Construction promulgated the Decision No 1332/QĐ-BXD on 17th August 2004 to transform Song Da 11 Company into Song Da 11 Joint Stock Company and operate under the Law on Enterprises since then Thanks to its long history and extensive experience, it is the Company’s extremely big strength in the fields of electric construction and installation and a great strength to become a powerful company In order to successfully develop in the market in the economic integration and cut-throat competition against other SJE companies, it is required to setup the objectives of business plan and strategy so that it is not only harmonized with the extrinsic context, compatible with the intrinsic capacity but also well matched with the long-term development orientation, creating the future competitive strength of the enterprise By determining the problem significance, the topic “Development of business strategy for Song Da 11 Joint Stock Company in the period of 2018 - 2023 with visions to 2030” is selected as the author’s research topics It is launched with the hope that the Company may be facilitated to successfully recover the available shortcomings and have basis to initiate the strategic plans in the coming time to obtain a further prosperity and development with the author’s recommendations and suggested solutions Objectives, subjects and scope of the research  Objectives - Systematize the strategy management issues - Conduct macro, micro and local environment analysis to recognize the opportunities and challenges as well as strength and weakness, directly affecting SJE’s development and competitiveness upholding its strengths, it is strongly believed that Strengths may expand the market of power and water construction toward agriculture and traffic modernization of the Government in such areas in a short period of time In order to ensure the annual growth rate of productivity and revenue under the production and business development strategy in the period of 2018- 2023, market expansion efforts are essential to SJE  Differentiation-focused competition strategy It gives out some specific different construction technologies Currently, SJE is well known as the power construction unit Therefore, it is required to have a wide range of special construction plants and equipment, ensure construction safety and work schedule Therefore, SJE is required to focus on market survey of new products and future technologies such as: Balloon-based wiring technology; flying equipment-based wiring technology; technology of constructing and installing the built-in control and protection system for high-ultrahigh voltage transformer station (220kV-500kV) to serve for the smart station; Construction of smart grid, PV modules, etc., construction technologies of water supply and drainage systems to ensure quick, lightweight, scheduled, environment-friendly construction, etc Therefore, differentiation-focused competition strategy is suitable with this period of Vietnam development, particularly remote areas and rural areas  Product development strategy It requires high costs, extended time and faces with a series of barriers such as restructuring organization apparatus, changes in working method, procurement of production line and equipment, retraining technician workers to access and master the technology Meanwhile, with the experienced employees and available equipment assembly, SJE may completely undertake the key and hard projects and works to fulfill its development strategy objectives in the period of 2018- 2023  Low cost competition strategy This strategy is at 4th rank and very important although this period is characterized by low price and low product quality, non- assured progress and unavailability of product commitment This purpose shall not be pursued by SJE 74 and a powerful brand on power and water construction has been successfully developed by SJE The Company’s revenue and profit shall be remarkably affected by the price reduction However, the study on reducing product price must be considered for the construction and installation in general when the bidding is subject to the cut-throat competition 2.3.2.2 Identify the business strategy Originated from the objectives, market situation, existing conditions of SJE’s available resources and strategy selection matrices analyzed above, SJE's production and business strategy in the period of 2018-2023 is described as follows:  Corporate-level business strategy SJE continues affirming its position and trademark in the fields of power and water construction and installation It is assumed to strengthen construction development of power grid and transmission systems, transformer stations, wire lines and station systems of the hydropower plants; Construct, install, manage and operate the power and water supply system for constructing the hydropower plants in the coming time The Company also quickly looks for, penetrates extensively and intensively the construction of power works in the industrial parks, urban areas, urban underground power grid system, water supply & drainage system in the city and urban areas, high rise buildings, investment into small and medium hydropower plants, solar power and wind power plants, etc., in accordance with the available background in accordance with the industry’s general development trends  Divisional strategies In order to successfully launch the master strategies, the divisional strategies and solutions must be initiated The reason why SJE selects the market expansion strategy and differentiation competition strategy is that the Company selfdetermines its market position, understands its strengths, weaknesses, opportunities and threats from the external environment Market expansion strategy and differentiation competition strategy must be supported with solutions and qualified human resources to be the key to the success, ensuring long term sustainable development, as the important background for SJE to accumulate the financial resources to serve for next business investment scalability 75 Chapter 3: SOME POSSIBLE RECOMMENDATIONS TO LAUNCH SJE BUSINESS STRATEGY IN THE PERIOD OF 2018 - 2023 3.1 SJE's objectives to 2023 with visions to 2030 With awareness of advantages, difficulties, challenges as well as strengths and weaknesses of the Company, some contents on SJE vision, missions and objectives in the period of 2018 - 2023 and orientations to 2030 are recommended as follows: 3.1.1 Objectives to 2023 3.1.1.1.Vision and missions  Vision Become a local leading power and water construction company, available to undertake the power and water construction for the large scale hydropower plants, wire lines and transformer stations up to 500KV with modern technology and high quality; Undertake the EPC contract for the water supply & drainage systems in industrial parks, urban areas and construct the hydraulic works with high complexity and large scale  Missions - Take economic efficiency as key measure to ensure the sustainable development, ensuring the good harmony of benefits between the enterprise, shareholders, and combined benefit groups during development - Ensure increasingly high income for employees, attract talents with high expertise and qualification; improve the spiritual cultural life for the employees, create favorable conditions for the employees to work, engage and devote for the Company’s sustainable development - Provide premium products, different in terms of technical functions, aesthetics and technology utilities to the highest satisfaction of the customers; - Enhance the business cooperation position with the domestic and international partners 76 3.1.1.2 Specific objectives to 2023 Phase (2018 – 2020) - stable and development period: * Complete the technical physical facilities: - Invest in hi-tech physical facilities, technologies and different construction capacity to develop and expand SJE image and trademark; - Refer to the existing conditions to maintain 1-3 Branches in some key economic zones to expand its business; * Train and improve the human resources qualification: - Train and improve the human resources qualification; gradually acquire the professional knowledge and expertise and international working capacity; - Design and develop the treatment and talent attraction policies, ensuring the competition with other organizations * Network the cooperation relation: - Setup the expansive cooperation relation with the Vietnamese and international Project Owners, Principal Contractors; Involve in the Professional Associations to improve the Company prestige and cooperation and development capacity; * Develop SJE brand: - Develop SJE brand in combination with other famous brands via investment cooperation and business activities; - Create a humanism, friendly and community attachment brand for SJE * Develop advanced IT system: - Sharply apply IT in management and control, facilitating smooth, quick and effective communications at management levels, simplify the administrative procedures; * Improve the financial position: - Enhance the financial autonomy; increase the chartered capital by additionally issuing the shares, mobilizing the capital from the stock market - Improve the financial picture by strengthening capital collection, payment acceptance, increasing inventory turnover, etc * Form the product and service system and launch business: 77 - Sharply develop the electric construction and installation sectors for power grid and transmission system, transformer stations as well as construction, management and operation of power and water supply & drainage system to serve for hydropower plants - Develop, construct and install the power and water systems in the industrial parks, urban areas gradually strengthen the construction of electric works in the hirise buildings, urban underground power network and water supply & drainage system in the cities; construct hydraulic works * Invest into expansion: - Raise some departments in the Company to a new height to raise the accountability and business capacity; continue studying to look for investment into some small and medium hydropower projects, Solar power plants in combination with job generation for the main business lines Phase (2020-2023) - Acceleration phase: In this phase, human resources, IT, products and services, etc., are basically completed Operation and growth should be focused by the Company * Investment activities: Strengthen investment in improving the workmanship, creating the difference in technology, priority in investing the small and medium hydropower projects * Business activities: Continue maintaining the traditional activities and strengthen launching the key products and services to create the new breakthrough * Advanced training: - Continuously invest in training and improving the human resources quality to launch the new business fields; - Train and prepare the resources to study the solutions and products to obtain the breakthroughs when SJE is entered into the saturated phase * Scalability: Continue enhancing the activities in the international and regional markets, focusing on new markets such as solar power and wind power, etc Key economic index in the period of 2018 - 2023: Strive to obtain the operating value to ensure the average annual growth rate of 10%-20% 78 Obtain total production and business value of over VND 1,350 billion Obtain total revenue of VND 1,200 billion Obtain profit of VND 100 billion Obtain value of capacity-building investment in the period of 2018-2023 worth approximately VND 150 billion Ensure annual dividend of 20-25% The business sector structure is described as follows: - Value of constructing and installing wire lines, transformer stations, power transmission works, power systems: Making up 50% of total operation value - Value of constructing and installing power works in the industrial parks, urban areas, high rise buildings, urban underground power system, making up 10% of total operation value; - Value of constructing and installing water supply & drainage system in the industrial parks, urban areas, hydropower works and urban water supply & drainage system, making up 10% of total operation value; - Value of industrial production and power business, making up 30% of total operation value 3.1.2 Visions to 2030 Construct and develop as one of the local and regional leading power and water service providers, taking construction of power works as the key Study, invest and cooperate to invest and develop the offerings to the highest satisfaction of the customers, uphold the resources, improve the competitiveness and prestige in developing SJE trademark in the marketplace After a sharp growth period, the growth rate starts going down due to reaching the critical point on resources and restrictions on business model Therefore, it is required to take the breakthrough renovations and reformation steps such as: Re-determine the target customers and market, expand operation to the international and regional market by gradually strengthening the business investment activities in Cambodia and Laos and studying to expand to new markets 79 in the region such as Solar Power, Wind Power; Screen and manage risks for every aspects of the Company 3.3 Recommendations on implementation solutions 3.3.1 Solutions on strategy and plan management Currently, SJE is not supported by a separated department in-charge of strategy development and management The strategy development is assigned to the Economics Planning Department and only 5-10 year plans have just been designed However, the strategy management is not really concerned, only generally Therefore, SJE is required to establish the department in-charge of strategy development and management in accordance with the procedure: Situation analysis - Target identification - Implementation - Evaluation and Control - Management of situation analysis: In the ever-changing marker economy, SJE is required to quarterly analyze the situations of internal and external factors, affecting factors, strengths, weaknesses, opportunities and threats, etc., to identify the Company’s strategy to include the shortcomings to perfect Therefore, is is assumed to supplement the qualified human resources with good knowledge and capacity to analyze the strategy - Management of target identification: From the above analysis, strengths, weaknesses, opportunities and threats are identified Accordingly, medium and long term strategies are designed or the strategy and plan adjustments are worked out to uphold the Company’s strengths, optimize the opportunities, and minimize the threats for further development - Management of strategy implementation: Implementation is essential A good strategy and plan shall not deliver a sound result if it is not properly implemented Therefore, SJE must setup a scientific strategy program, procedure and budget, orienting towards the target system as set by the Company - Management of evaluation and control: In an ever-changing environment, sometimes the Company’s strategy is no longer suitable Hence, it is required to evaluate whether such strategy is correct to timely take the corrective measures 80 Moreover, strategy is a measure to speed up and remind all employees to concentrate all efforts to successfully launch the strategy set by the Company 3.3.2 Production management solutions - Manage raw material supply source: The unexpected fluctuation of material price with the unstable exchange rate not only affect the production and business plan but also reduce the operating performance of SJE Delayed acceptance and capital collection result in late capital turnover, adversely affecting the material payments The recommended solution is: With a large number of Steel, Iron and Cement providers, in order to reduce the product price, negotiation should be made to purchase raw materials with the lowest price On the other hands, budget plan should be designed to take material plan to satisfy the production demand - Goof production management: Damages caused by loss on norms and product defects should be minimized thanks to the system management Cost optimization is mainly initiated by productivity management to reduce the fixed costs per unit This largely decides the competitiveness and bid award capacity - Reduce material loss norm: Material costs include: Main material costs (cement, steel, bolts, grounding wire, insulator and electric materials, etc.) and auxiliary materials (soldering rod, etc.) Loss rate should be minimized but the product quality is still assured by strict surveillance and management measures in accordance with the onsite production and construction procedure Transportation vehicles, earthworks and specific work volume should be optimized for each concrete block of foundation and column, etc Finished products must be released with the highest quality and defective products must be minimized in accordance with the following procedures: Strictly adhere to the ISO 9001-2000 procedure: Check the product quality; the nonconformity product control procedure; preventative action procedure; corrective action procedure; strictly adhere to the State's acceptance procedure on power and water construction works - Labor costs: Proper production organization should be made by arranging the proper production premises, locations of plants and equipment, production line 81 assembly, outperforming the preparation of raw materials and site so that manpower is not waste Optimal method statements should be applied The unreasonable works should be minimized during production By saving labor costs, the productivity shall be increased, reducing fixed costs per unit - Apply new technology: The new construction technology solutions should be worked out in accordance with the available background to increase the labor productivity and reduce price in using construction equipment The past time was recorded with the Leaders’ special concern about this solution of cost reduction and productivity improvement This was demonstrated by works undertaken by the company, recognized and highly evaluated by the customers Costs were saved for the Company thanks to the advanced method statements in the past time 3.3.3 Marketing management solutions - Market penetration: Mixed marketing policies are applied by SJE (with new advertisement campaigns to popularize the Company appearance; disseminating and enhancing the consumption network, etc.) to successfully attract the prospects, expand market share, attract customers of the competitors Accordingly, SJE shall penetrate into the urban infrastructure traffic market in the areas Social policies for the poor shall be concerned in the places where the unit operates, occupying the relationship with the local persons and local authorities - Customer care: SJE's available offerings are always perfected with the best quality and fastest progress with highest workmanship of workers and modern technology New techniques are studied to improve the quality and schedule to the highest satisfaction of the customer SJE always concerns and attentively listens to the partners’ and customer’s comments on the products offered by the company, even when it has been completed and put into operation for many years When technical cases are arisen to be handled beyond the warranty period, the Company is still enthusiastic and devoted to timely conduct troubleshooting for the Project Owner and clients, ensuring the company's prestige - Product development: With the strengths in the fields of power and water construction, SJE continues upholding and expanding this market to successfully 82 improve the corporate value and product development In addition to focus on perfecting the available product quality, SJE should take the bidding marketing policies for big projects as soon as possible Human resources should be regularly trained and improved to access to the projects 3.3.4 Solution group on human resources management In the period of 2018 - 2023, some solutions should be outperformed by the Company as follows: - Human resources recruitment and training: In order to ensure a stable human resources for the Company’s development strategy to 2023, SJE should always focuses on recruitment to select the best candidates with proper skills, qualifications, experience, enthusiastic and sharing the same development orientation with the Management, accepting to make high cost (remuneration) to satisfy the current demand and develop to well prepare the future strategies Moreover, the employee training should be fostered, especially key personnel to create key human resources for the Management to successfully launch the production and business plan Moreover, standby human resources should be prepared to set off the HR variations and satisfy the demand of production and business expansion - Encourage and motivate employees: Recruitment aims to select the qualified candidates, training and development aim to provide them with the required skills to serve for the current and future strategy The encouragement policy is acknowledged as the solution to maintain stable human resources to satisfy the production and business demand Employee motivation is demonstrated by financial and non-financial factors such as income distribution, rewards and discipline mode and satisfaction with the working environment Currently, the above objectives are only satisfied at a moderate level against other companies in the Industry The Company's internal communication is not outperformed Many guidelines and policies are not widely disseminated to each employee, resulting in delayed work On the other hand, the income distribution mode is not really fair 83 Reward and discipline policies are not deserved or fair It fails to motivate employees to optimize their competences Therefore, treatment policies must be renovated by SJE, concretely: - Income distribution mode to employees: The top priority of the employee is still rested in income Therefore, proper income distribution mode should be applied to successfully motivate the employees: + Employee income must be gradually increased by years and set off the price escalation of consumables and inflation rate in the market On the other hand, SJE income must be higher than the average income of the same scaled partners to avoid brain drain and attract talents from the competitors + Income distribution regulation must be setup in accordance with the task fulfillment results, title coefficient, responsibility coefficient, etc., in SJE to ensure equality so that the employees may raise their high awareness of responsibility, selfdiscipline and competence optimization - Proper reward and discipline policy: It includes the deserved award to the individuals and teams with high achievements, initiatives offering the benefits to SJE Awards are delivered by each event and annual and quarterly reward evaluation should be made, etc All of such activities aim to encourage and motivate the Company’s employees to uphold their capacity in working Moreover, sufficient disciplines must be applied to warn and prevent the actions from causing harm to SJE - Create professional working environment: Working environment is one of the most important factors to decide the loyalty, productivity, quality and work performance of the employees In addition to the implemented works such as: working on time, uniform, full provision of PPEs and equipment for the works, development of solidarity between employees, etc., the Company should: + Arrange the ventilated, good, safe and scientific workspace, etc., so that the employee may conveniently work and improve his work performance + Develop the friendly and close working environment between the leaders and employees, between departments and employees Create favorable conditions for the employees to share the feelings and expectations to create the most convenient ideology and maximize the personal competence 84 + Develop the healthy competitive working environment to drive the development by improving working capacity for each employee - Ensure treatments for the employees: The Company should focus on clear, transparent and well informed treatments for employees such as social insurance, health insurance, allowances for the employee, etc 3.3.5 Financial management solutions Although the Company's financial resources are relatively stable, SJE should setup a relatively safe and stable financial structure between production and investment This is the key factor for SJE to successfully overcome the most difficult phase of the financial crisis and economic depress However, some solutions should be applied to improve the financial position concretely: - Reduce number of turnover of receivable assets and inventories: + Complete the regulations and guidelines on acceptance and payment of implemented work volume of the works, adjusting properly with each project works; The Company's departments and direct construction units by its decentralization must regularly speed up, inspect, control, collect the complete documents and materials in accordance with the procedures; pay special attention to well address the working relation with the Supervisor, Design Consultant and representative of the Project Owner at site; timely report the questions to the Management for settlement; + Fulfillment of procedures with additional and arisen work volume, price adjustment is still recorded with many shortcomings However, the Company should forecast such figures and early put forward the recommendations to the Project Owner and request the Project Owner to timely handle and avoid damages incurred by the Contractor The tasks assigned to the related departments should be timely handled The shop drawings should be supplemented, prepared and submitted for approval with the related cost estimates; + Improve the debt collection: It is required to accurately carry out the handover, final acceptance and fulfill the payment documents to early recover the capital 85 - Restructure financial resources and increase the chartered capital: + Currently, the loan percent is high against total resources of the Company The financial leverage is still applied at a relatively high However, in the next phase, it is required to restructure the equity density increase to ensure the payment safety and improve the financial autonomy + Increase chartered capital: SJE is a listed company Additional placement of share to increase chartered capital may have more benefits In order to ensure that the construction capacity has difference against that of the competitors, SJE should be supported by additional resources to successfully improve the technology and technical facilities With the business plan in the period of 2018 – 2023, SJE is expected to develop the capital increase plans in 2019 It may be launched when the stock market is better In 2019, the Company capital may be increased to VND 150 billion and up to VND 250 billion by 2030 - Increase the business performance, facilitating to supplement the own fund: + Complete the production and business management regulations and rules in general and production and equipment contracting policies Conduct proper duty assignment between the functions and direct production department Outperform the mechanisms of accelerating, checking, controlling, reducing the overheads and increasing the profit + Strengthen asset and equipment management; uphold the performance and capacity of construction equipment Well maintain and service the equipment to ensure that the remaining value is high in fact When the equipment is out of depreciation, it shall be the relatively high resources for the Company It is required to outperform the regulations on managing and contracting the construction equipment; strengthen the equipment maintenance and use management and control system from the Company to construction units; strictly launch the maintenance works, especially major repairs 86 CONCLUSIONS The possible strategies are compared in accordance with the objectives, market and SJE existing conditions and strategy selection matrices GREAT model is applied to select the best strategies for the Company in the period of 2018 - 2023, i.e., market expansion strategy, differentiation competition strategy in construction technology to release the premium products with high techniques - aesthetics and utilities The solutions on strategy and plan management, production management, marketing management, human resources management and financial management are also recommended to overcome the shortcomings and uphold the advantages to successfully launch the Company’s overall strategies The key point in the business strategy and sustainable development, in addition to the best strategies, SJE is suggested to change its solutions on strategy and plan management, production management, human resources management, financial management, etc., to fulfill the objectives with the highest performance Currently, the global economy is recorded with a series of complicated development Vietnam is also faced with the internal difficulties, especially the harmony between the macro objectives to be pursued such as high growth inflation, etc In this context, designing a long term business strategy is survival for SJE However, the business strategy set for the period of 2018 - 2023 is not invariable SJE Management is recommended to take the flexible adjustments from time to time to adapt with the society’s general development trends and assure fulfilling the set targets Although changes are subject to certain challenges, it is strongly believed that with the great tradition of Song Da unit developed from key works, supported by high social responsibility, SJE shall successfully overcome all difficulties and launch the business strategy in the period of 2018 - 2023 with vision to 2030 87 LIST OF REFERENCES Song Da No 11 Joint Stock Company (SJE), Statistic reports, audited financial statements from 2015 to 2017 (http://www.songda11.com.vn) Strategy management of co-authors Ass.Prof.Dr Le The Gioi, Dr Nguyen Thanh Liem, Tran Huu Hai, M.A- Statistical Publishing House, 2009 Proposal on Strategy Management of Fredr.David - Statistical Publishing House The General Statistics Office, figures on socio-economic development index of Vietnam (http://www.gso.gov.vn) Vietnam Electricity Construction Joint Stock Company (http:/www.vneco.com.vn) PECC (http:/www.pecc.vn) Power Construction Joint Stock Company No.1 (http:/pcc1.vn) Financial portal: http://www.cafef.vn EVN: http://www.evn.com.vn 10 Song Da Corporation: http://www.songda.vn 11 The Decision No 1028/QD-TTg of the Prime Minister dated 21st July 2011 on approving the National Power Development Plan in the period of 2011 2020 with vision to 2030 88 ... strength of the enterprise By determining the problem significance, the topic Development of business strategy for Song Da 11 Joint Stock Company in the period of 2018 - 2023 with visions to 2030 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TRỊ VÀ KINH DOANH - TRẦN THANH GIANG FORMULATION OF BUSINESS STRATEGY FOR SONG DA 11 JOINT STOCK COMPANY FOR THE PERIOD 2018 - 2023 AND ORIENTATION TO 2030 XÂY DỰNG CHIẾN LƯỢC KINH DOANH... Analysis of SJE's existing conditions and selection of business strategy for SJE Introduce the history of development of SJE, its main offerings and brief summary of business performance in the period