CAPSTONE PROJECT REPORT FORMULATING BUSINESS STRATEGIES OF HOUSING RENOVATION AND DEVELOPMENT J.C FOR 2020 - 2030 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT FORMULATING BUSINESS STRATEGIES OF HOUSING RENOVATION AND DEVELOPMENT J.C FOR 2010 - 2020 Group No.7: Tran Hop Dung - Leader Pham Vinh Ha Vu Manh Hung Nguyen Quang Huy COMMITMENT We hereby commit that this thesis is the result of our own process of researching, investigating, selecting research topic (excluding reference materials and cited data). We also commit that the content of this thesis has not been submitted to any other research or training programs. Hanoi, 21/12/2009 Authors of the thesis i ACKNOWLEDGEMENT Firstly, we would like to express thanks to the Schools, professors, experts, lectures and staffs of THE CENTER FOR EDUCATIONAL TECHNOLOGY AND CAREER DEVELOPMENT, HANOI NATIONAL UNIVERSITY and GRIGGS UNIVERSITY – USA, who were always with us during the course. Via this course, we learn have chance to approach a high education with advanced teaching method, method of theoretical application and information gathering in management practices in for improved business efficiency.
Regarding this thesis, we would like to thank Mr. Dung for his guidance and help for its improvements. Yours Sincerely! TABLE CONTENT ii Content Page Commitment i Acknowledgement ii Table content iii List of figure vii List of table viii Abbreviations ix Introduction 1 1. Title of the research 1 2.
Purpose of research 2 4. Scope of research 2 5. Sources of data 3 7. Structure 5 Chapter 1 – Basis for developing the company’s strategy 1.
Define business mission 7 1. Analyzing external business environment 8 1. Analysis environment within the enterprise 9 1. Developing and selecting and selection business strategy 15 1.
Some business strategies 17 1.2 Basis for developing company strategy 20 1. Fundamental characteristics of the real estate market 21 iii 1. Development trend of the market 26 1. Customers’ behavioral characteristics 26 1.
Conclusion of chapter 1 27 Chapter 2 Current situation of business strategies of Housing Renovation and 30 Development Joint Stock Company 2.3 Major business lines 30 2.Corporate organisational structure 32 2.2 Operational strategies of the company in the recent years 35 2.2 Mission, Value and Strategic Orientations 35 2.3 Analysis of macro environment 36 2. Political and legitimate environment 38 2.3 Environment of nature, culture and society 39 2.6 Overall effect of the macro environment on the CTP.4- Assessment of the competitive ability company 42 2. The housing development situation in Viet Nam 42 2. Situation on the housing development in Hanoi 47 2.
Analysis of five competitive forces 51 iv 2. Assessing strengths, weakness of the company 61 2.5- Business strategy of the company 64 2.1 Competitive Advantage of the company 64 2.2 Review, comments on the advantages and disadvantages of 66 business strategy 2.6 Assessment of organizational structure and control work of the 70 company for the past time 2. Control mechanism of the company 70 2.7 Overall comments 71 Chapter 3 73 Business strategy for the company for the 2010-2020 period 3.1 Development direction of the company 73 3. Strategic objectives in the period 2010-2020 74 3.2 - Strategic development of the company 75 3.2 Selection of the best strategy according to model GREAT 80 3.3 - Solutions to implement the strategies 84 3.1 Build up the production process to ensure quality 84 3.2 Building up of the process to diversify product 85 3.
Human resource & organization strategies 87 3. Marketing strategy 87 Conclusion and recommendations 91 References 93 vi LIST OF FIGURE Content Page Figure 0.1: Strategic management process 2 Figure 1.1: The process of strategic management 6 Figure 1.2: Model of five competitive forces of M.3: Model of Michael Porter's value chain 13 Figure 1.4: The process of identification of sustainable competitive 14 advantage Figure 2.1: Diagram of the corporate organisational structure 33 Figure 2.2: Graph FDI in first 10 months of 2009 45 Figure 2.3: Price fluctuation of luxury apartments 47 vii LIST OF TABLE Content Page Table 1.1: Quantitative matrix as per GREAT criteria 16 Table 2.1: Results of the business in 2008 34 Table 2.2: The development in the period 1998-2008 in Hanoi 48 Table 2.3: The demand on housing development in Hanoi period 2010-2020 50 Table 2.4: A comparison of core competencies among subsidiaries in the 53 Corporation Table 2.5: Comparison with rivals in the construction field 54 Table 2.6: The competition in the segment of high quality 56 Table 2.7: The housing projects being implemented by the Cpmpany 62 Table 2.8: Capacity building and housing development of CTP.9 - Capability outstanding business 65 Table 3.1: Detailed Objectives 75 Table 3.2: Strategic Scenarios 78 Table 3.3 Swot model of CTP.4: Strategy anlysis by Great model 83 viii ABBREVIATIONS ADB Asian Development Bank ASEAN Association of South East Asian Nations BTA Bilateral Trade Agreement CEO Chief Executive Officer CFO Chief Financial Officer CTP.CP Hanoi housing renovation and development joint stock company FDI Foreign Direct Investment GDP Gross Domestic Product IMF International Monetary Fund ODA Official Development Assistance SWOT Strength Weakness Opportunity and Threat USD United State’s Dollars USA United States of America VND Vietnam Dong WTO World Trade Organization ix INTRODUCTION 1. Title of research of the research Formulating and completing business strategies of Ha NoiHanoi hHousing Rrenovation and Ddevelopment Jjoint Sstock Ccompany for 2010-2020 period. Rationale “Strategies are the process of identifying long-term fundamental objectives of a company, selecting the method and orientation for action and allocation of basic resources to achieve those objectives” (Alfred Chander).
With the above-mentioned definition, we can see that for every enterprise aiming at long-termsustainable and effective development in the current economy, formulation of strategies is the most important task. In the context of the national integration and economic development, the fact that each enterprise formulates proper and suitable strategies commensuratinge with the development requirement of the industry and government policies will not only enable enterprises to develop strongly but also contribute to the overall development of the nation. We, Group 7, (“the Group”) has All the four4 members operatingworking of Group 7 work in the field of construction and two , with 2 members working in the public sector. Therefore, we are aware that the formulation of strategies must be based on profound understanding of the field of operation of the the enterprise’s business lines and factors affecting corporate strategies.
With such orientation, the Group 7 has selected the topic: “Formulating and completing business strategies of Hanoi hHousing rRenovation and dDevelopment jJoint sStock Ccompany” with the hope so that the Company canwill take full advantages of the Government’s encouraging seize the opportunities from 1 Government encouraging policies, improve the organizational structure and human resources in order to improve the competitiveness of the enterprise …. In other words, this meansor towards formulating “comprehensive, united and cooperative plans designed to ensure that the basic objectives of the company can be achieved” (William J.1: Strategic management process 3. Research pPurpose of research Based on analysis of the real estate market and Government policies having direct impacts theres oon this market, the Group 7 will identify the opportunities and threats from external environment, analyze the current situation to define the strengths and weaknesses of the company in order to formulating and completingformulate business strategies of Hanoi Housing Rrenovation and Ddevelopment Jjoint stock Stock Ccompany for 2010-2020 period. Scope of research The authors willThe Group studiedy theories of strategic management, business strategies, marketing strategies, human resources management strategies in order to formulate overall strategies for the Company.
Given the requirement of the research issue and of the assignment, ourthe Group will focus on practical issues and on analyzing policies and solutions based on the theoretical background acquired as well as market information. Given the context of the real estate market and the progress nature of with requirement on the progress of construction products which consists of various progresses and stages, the Group decides to formulate strategies for the 2010-2020 period. Research methodology From the purpose and the scope of research mentioned above, the Group 7 decides to used the following research methodologies including: systemizing, methodology, summarizing methodology, logical inference methodology, comparingson and statistics methodology. to analyze and identify the relationship between different issues, analyze their development process in terms of time and space.
Then we will find out suitable interventions in order to fully utilize the opportunities and strengths, improve weaknesses, avoid the threats and propose optimum solutions for formulating corporate strategies. Sources of data Statistics, data and information on the business operations are from of Hanoi Housing rRenovation and dDevelopment jJoint Sstock Ccompany Data from large, world-famouswell-known foreign real estate are collected from consulting companies operating in Vietnam. 3 Data are also obtained from Ddocuments internally published by the Government, Ministry of Construction, Ministry of Planning and Investment, General Statistics Office, Hanoi Construction Department, Hanoi Planning and Investment Department … as well as Mmarket information published byin real estate journals 7. Implications With our experience in formulating policies in the field of real estate area, in implementing construction works and in investing in the field, the Group 7 believes that this Assignment will provide an overall view of Vietnamese real estate with focus on theon Hanoi market.
This thesis also awakes authorities on the biggest issue of the area, i. in the field of construction of the scarce high-quality human resources, which would results in risk of potential losses in domestic market. In addition, the strategic proposals put forward in this thesisherein indicates clearly positive and negative impacts of government policies on different entities in the real estate market. This provides a suggestion for enterprises participating in this market in the near future.
Limitations The thesis will mention issues relatinged to real estate business and civil construction activities fields of a business, which are interrelated fields of business assince the end products of real estate business are civil constructions. Therefore, the Group 7 will not mention in depth specific activities of the civil construction business. Besides, other minor business activities which are not the major activities of the Company will not be mentioned either. Besides data for the last 5 years, the most updated government policies and government orientations which are suitable for the formulation of strategies for a 10-year period (2010 to 2020), the thesis has yet to mention all business strategies in details.
4 Non-economic factors such as power, individual competition, individual alliances etc. in the business context will not be mentioned. Results - Overview and summarsummarizey of Vietnamese real estate market. - Identifying the current situation for of formulating business strategies and proposing solutions to for the 2010-2020 period of Hanoi Hhousing Rrenovation and Ddevelopment Jjoint sStock Ccompany.
- Indicateing the theories for formulation of business strategies applied in real estate business and civil construction fieldsactivities. Structure The thesis comprises of Introduction, 3 chapters, conclusion and recommendationis structured as follows: INTRODUCTION Chapter 1: Overview of the real estate marketOVERVIEW OF THE REAL ESTATE MARKETBasis for developing the Company’s strategy Chapter 2: Current situationconditions of business strategies of Hhousing rRenovation and Ddevelopment jJoint sStock Ccompany Chapter 3: Set up a cComplete business strategy for the Ccompany for the period 2010-2020 period CONCLUSIONS AND RECCOMMENDATIONS 5 BEING EXPERIENCED MANAGERS IN THE FIELDS OF REAL ESTATE BUSINESS AND CONSTRUCTION IS ALSO CONSIDERED OUR ADVANTAGES AND DISADVANTAGES SINCE IT MAY PREVENT US FROM HAVING AN OBJECTIVE VIEW POINT ON THE ISSUE FROM AN OUTSIDER, WHEN WE MAY LACK ANOTHER VIEW OF THE ISSUE. BESIDES, WITH LIMITED RESEARCH EXPERIENCE, DESPITE OUR EFFORTS, THIS THESIS MAY HAVEREVEAL SOME SHORT-COMINGS. WE HOPE TO RECEIVE INPUTS AND COMMENTS FROM THE PROFESSORS, REPRESENTATIVES OF HANOI HOUSING RRENOVATION AND DDEVELOPMENT JJOINT SSTOCK CCOMPANY, CLASSMATES AND COLLEAGUES TO IMPROVE THIS STUDY.
THANK YOU VERY MUCHAND BEST REGARDS,. CHAPTER 1 OVERVIEW OF THEBASIS REAL ESTATE MARKETFOR DEVELOPING THE COMPANY’S STRATEGY 1.