CHAPTER 2. ANALYZE THE CONDITIONS FOR BUILDING A REAL
3.4.5. Createa cultural environment that supports the implementation of
- Identify appropriate cultural elements and sub-elements in the enterprise through meetings with individuals and groups. Discuss and review until there is a central principle agreement in the cultural environment.
- Organize reporting and learning activities about the aspects of corporate culture such as issues of duties, powers, working style, working relationships ... of managers and employees.
- Identify the importance of cultural products and their relevance to the intended strategies as a basis for assessing the risks that corporate culture may have.
- Identify cultural factors of special importance for the implementation and evaluation of strategies. Forecast cultural changes that are appropriate with strategic changes.
3.5. Recommendation
Currently, companies operating in the field of real estate business are facing
many difficulties in the process of production and business due to the lack of synchronization of the legal system related to the real estate market. From the construction investment, real estate transactions to the management of real estate use, there are provisions in various documents that are overlapping, many regulations do not keep up with the development of the field as well as the fact that many problems arise but are slowly studied, amended, supplemented and perfected.
In order to develop the industrial joint stock company in an active, open and sustainable manner, the author makes a number of recommendations.
Recommendations to the Government and local authorities:
Further simplification of procedures, records from the start of the project to the acceptance of completed works put into use. The process is too complicated for procedural documents that sometimes takes a lot of time, sometimes years, during the implementation of the project, not only causes trouble for the Company,in terms of expense but alsonegatively affects the quality and progress of the project.
Consolidate the laws, the Law on Real Estate Business, the Housing Law, the Investment Law, the Land Law, the Construction Law as a stable and solid basis, and increase the safety of companies operating in Real estate business.
Adopt appropriate inflation control policies to avoid the continuous price increase of construction materials in order to reduce the damage to companies in the industry and anxiety to investors when deciding to build a construction. With imported materials, there should be a tax reduction policy and a stable exchange rate to make the materials more affordable, so that customers can increase their choice of goods at an affordable price..
Provisions on the land use levy of the project should be based on the progress of capital collection of the investor instead of a lump sum after the current determination of unit price.
Change the method of calculating land use levies by the present method as there are many inadequacies in determining the revenue and cost of the project.
Propose not to collect land rent to build roads, infrastructure of condominium projects, create conditions for real estate businesses to invest.
Suggest the Government issue specific regulations and support enterprises in renovating and building old apartment buildings..
Thegovernment shall adopt policies to create conditions for social housing development in order to step by step improve houses for social policy beneficiaries, civil servants, armed forces and low-income people, contributing to Political stability, social security..
Create legal corridors and conditions for real estate transactions to be facilitated, publicized and transparent in the real estate market. Enhance the management and control of the real estate market, the State shall manage the real estate market by means of legal instruments. The State actively regulates the real estate market as a representative of land owners, regulate the supply of primary land use rights in the market and the flexible use of tax and fiscal policies.
Strengthen the State management role in the efficient exploitation and use of land resources. The State proactively regulates the supply of real estate through sectorial development planning, urban planning and planning, especially controlling the supply of land to the primary market through the allocation of land, leasing land, changing land use purposes.
Restructure the real estate market, develop multiform of real estate goods, especially residential real estate properties, including apartment houses, individual houses; commercial housing, social housing; housing for sale, housing for lease, affordable housing for different groups in the society, overcome the situation of supply – demand mismatch in housing development. The State shall actively provide and adopt preferential policies and encourage all economic sectors to participate in the development of social houses for social beneficiaries. develop and create conditions for financial institutions, such as real estate investment funds, real estate trusts, housing savings funds, to develop and attract capital to the real estate market. Flexibly adjust the credit and fiscal policies to facilitate medium and long- term capital for market participants, help businesses and citizens, especially for social beneficiaries, low income people have access to credit for the purpose of housing improvement. improve policies on taxes, fees and charges related to real
estate to encourage the efficient use of real estate properties, reduce speculation and tax evasion as well as increase revenue for the Country.
Buildan information system for the real estate market as a basis for effective policy and market management..
3.6. Limitations of the thesis
Due to time limit, the author's thesis will be inevitably limited.
The business field of Industrial Construction Joint Stock Company are diversified, when discussing the scope of research to select the business strategy, the author concentrates only on real estate business research of Industrial Construction Joint Stock Company from 2018 to 2022. Therefore, the thesis lacks thecompletenessof the overall business strategy of the company.
- Due to time limit, the data collection for reference and analysis in the thesis is notsufficient and varied.
- The conclusions on the selection of real estate business strategies from 2018 to 2022 were researched based on both business theory and practice of the company. The author needs to do more reaearch on building the real estate business strategies for the upcoming years.
CONCLUSION
Over the past 57 years of establishment and development, Industrial Construction Joint Stock Company has got the brand products in the market and developedinto a strong business in the field of real estate, and construction.
However, as other enterprises are operating in the territory of Vietnam, the Company has encountered difficulties and challenges with the lack of long-term strategic thinking which causes the enterprise to risk losing imbalance in the process of development, andpassively react to changes in the market.
In order to bring into full play all its strengths as well as overcome all the difficulties and minimize the weaknesses and challenges, it is the sum of many factors, but the key element throughout the process is the formation of Appropriate business strategies which are the guidelines for all the activities of the business in the right direction to bring the highest business efficiency to the Company.
Regarding building a real estate business strategy for Industrial Construction Joint Stock Company, the thesis has analyzed and assessed in detail the business environment, the real estate market, the production and business operation of ICJC.With the desire that based on the theories learned , the application of theories of competition, models of competitive strategy development, models of external environmental analysis, analysis of the internal environment of enterprises and EFE, IFE, SWOT matrices, the thesis has built real estate business strategies for Industrial Construction Joint Stock Company from 2018 to 2022:
- Strategy to enter the real estate market for low income consumers
- Strategy for further development and expansion of the commercial housing market
- Strategy for technological innovation, and investment in appropriate equipment
- Strategy for joint venture, association, brand development
Because the real estate business environment is always changing and cyclical, the strategies and solutions to implement the strategy should be selected with the actual situation of the Industrial Construction Joint Stock Company.
The thesis of "Built a real estate business strategy for Industrial Construction Joint Stock Company from 2018 to 2022" is necessary to help the Board of Directors of ICJC. get a comprehensive overview, and accurate thinking in the construction and selection of appropriate business strategies as well as offer solutions to implement that strategy, enhance the competitiveness of the Industrial Construction Joint Stock Company, build the brand, make the company grow in the market of real estate business and construction of the country.
REFERENCES
1. Lecture notes: Strategic management and plan: Assoc. Prof. Dr. Hoang Dinh Phi 2. Le Van Tam (2000), Strategic Management Textbook; Statistical publisher 3. Hoang Van Hai; Strategic Management Textbook; Vietnam National
University Hanoipublisher
4. Phan Thi Ngoc Thuan (2005), Business Strategy and Internal Business Plan, Science and Technology Publisher
5. Charrles W.L.Hill and Gareth R. Jones (1995), Strategic Management;
6. Fred R.David (2000), Concept of Strategic Management; Statistical publisher.
7. Garr D. Smith, Danny Putti (1996), Strategy and Business Strategy, National Political publisher
8. Philip Kotler (1997), Marketing Management; Statistical publisher
9. Dao Duy Huan (2007), Strategic Management in Economic Globalization; Statistical publisher
10. Garry D. Smith, Danny R. Arnol, Bobby G.Bizzell (1997), Strategies and Business Strategies; Statistical publisher
11. All figures and information are based on reports and statistics of the Company; as well as based on all references, newspapers, statistical data of the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, and the office of Hanoi People‟s Committee
Appendix 01: Survey form SURVEY FORM
For the purpose of reference of your opinion, who are the Leaders, Key persons of Industrial Construction joint stock company, and to complete a Master thesis on
“Creating the Real estate strategic business plan for Industrial Construction Joint- Stock Company (ICJC) – Period: 2018 – 2022”
I would like to send you this survey form I look forward to your ideas
Your faithfully
Name :………....
Positions :………..
Unit: ………...
Please fill in table below.
Question1: Based on your opinion, what are the external elements related to Real – estate business of ICJC ?
Elements Points
1. Competitors are strong
2. Housing demand is increasing sharply 3. Human resources supply is plenty and cheap 4. Building materials are available
5. Technician execution 6. Payback speed
7.Prices fluctuate, difficult to control, dependent on suppliers 8. The business environment of the economy
9. Stable political environment
Total 100
SURVEY FORM
For the purpose of reference of your opinion, who are the Leaders, Key persons of Industrial Construction joint stock company, andto complete a Master thesison
“Creating the Real estate strategic business plan for Industrial Construction Joint- Stock Company (ICJC) – Period: 2018 – 2022”
I would like to send you this survey form I look foward forwardto your ideas Your faithfully
Name: ………...
Positions :………
Unit :………...
Please fill in table below.
question2: Based on Your opinion, which are the external elements that willaffectthe real- estate business of the company?
Elements Strong Above
avarage Avarage Few 1. Competitors are strong
2. Housing demand is increasing sharply
3. Human resources supply is plenty and cheap
4. Building materials are available
5. Technician execution
6. Payback speed
7.Prices fluctuate, difficult to control, dependent on suppliers
8. The business environment of the economy 9. Stable political environment
SURVEY FORM
For the purpose of reference of your opinion, who are the Leaders, Key persons of Industrial Construction joint stock company, and to complete a Master thesis on
“Creating the Real estate strategic business plan for Industrial Construction Joint- Stock Company (ICJC) – Period: 2018 – 2022”
I would like to send you this survey form I look foward forward to your ideas Your faithfully
Name:………....
Positions:………
Unit:………...
Please fill in table below.
question3: Based on your opinion, what are the internal elements shown in table below will affect the Real – estate business (Please allocate 100 points in all the elements)
Elements Point
1. The leadship are enthusiastic and have stratergic vision, have good relations with authorities
2. There area great number of projects and grounds to implement 3. Experienced in implementing investment projects
4. In good relationship with banks and credit agencies 5. Ability for constrution
6. Ability of Equipment for construction 7. Brand of Company
8. Management at departmental level is not systematic 9. Financial ability to carry out investment projects 10. Time to carry out projects affects profit and oppotunity
11. The number of workers is low and dependent onseasonal workers 12. Payback speed
13. Efficiency in using fund and equipment
Total 100
SURVEY FORM
For the purpose of reference of your opinion, who are the Leaders, Key persons of Industrial Construction joint stock company, and to complete a Master thesis on
“Creating the Real estate strategic business plan for Industrial Construction Joint- Stock Company (ICJC) – Period: 2018 – 2022”
I would like to send you this survey form I look foward forward to your ideas Your faithfully
Name:………....
Positions:………..
Unit:………...
Please fill in table below.
question 4: What do you thinks about the internal elements shown in list below will impact to real-estate business plan for Industrial Construction Joint-Stock Companyand How
Element Strong Above
avarage Avarage Few 1. The leadship are enthusiastic and have stratergic
vision, have good relations with authorities
2. There area great number of projects and grounds to implement
3. Experienced in implementing investment projects 4. In good relationship with banks and credit agencies 5. Ability for constrution
6. Ability of Equipment for construction 7. Brand of Company
8. Management at departmental level is not systematic
9. Financial ability to carry out investment projects 10. Time to carry out projects affects profit and
oppotunity
11. The number of workers is low and dependent onseasonal workers
12. Payback speed
13. Efficiency in using fund and equipment
Addendum2: General investigate result
Table 1: General assessments important level and environment internal impact Assessment votes
Internal elemen
Impotarn level
Impact to company
total votes
Assessm ent point
Total Averag
e point (Excha
nge)
Strong Abov e Avera
age Ave rage
Few Total Point
Averag e point (
Exchan ge)
1. The leadship are enthusiastic and have stratergic vision, have good relations with authorities
10 0.1 10 0 0 0 40 4 0.4
2. There area great number of projects and grounds to implement
10 0.1 1 7 2 0 27 3 0.3
3. Experienced in implementing
investment projects 10 0.1 1 8 1 0 30 3 0.3
4. In good relationship with banks
and credit agencies 5 0.05 0 9 1 0 29 3 0.15
5. Ability for constrution 8 0.08 8 2 0 0 36 4 0.32
6. Ability of Equipment for
construction 7 0.07 0 7 3 0 27 3 0.21
7. Brand of Company 7 0.07 0 8 2 0 28 3 0.21
8. Management at departmental
level is not systematic 5 0.05 0 2 8 0 22 2 0.1
9. Financial ability to carry out
investment projects 5 0.05 0 8 2 0 28 3 0.15
10. Time to carry out projects affects
profit and oppotunity 7 0.07 4 6 0 0 34 3 0.21
11. The number of workers is low and dependent onseasonal workers
8 0.08 0 3 7 0 23 2 0.16
12. Payback speed 8 0.08 0 8 2 0 28 3 0.24
13. Efficiency in using fund and
equipment 10 0.1 0 0 4 6 14 0.1 0.1