CAPSTONE PROJECT REPORT DEVELOPING BUSINESS STRATEGY FOR TRANG AN SECURITIES JSC IN THE PERIOD OF 2012 - 2017 Ngo Giao Hai Duong Manh Hung Nguyen Thi Thanh Huyen Nguyen Minh Quang Class: GaMBA.X0710 H A N O I 2 0 1 1 1 ACKNOWLEDGEMENT First of all, the Group No.X0710 would like to express our sincere thanks for the Master of Business Administration Program, the Affiliate Programs between Griggs University, USA and Center for Education Technology and Career Development, Vietnam University Hanoi for organize MBA course in Vietnam and facilitating our Capstone Project Report. Secondly, we would like to express our sincere thanks to the Leaders and staffs of Trang An Securities JSC - who have fully supported our team in providing valuable input information for this Capstone Project Report. Last but not least, let our thanks go to our families whose encouragement has helped us complete the course without having any difficulties. We have tried to complete the assignment in the best way using our best knowledge and ability.
However, the shortcomings are inevitable. We wish to receive valuable comments from teachers and colleagues. 2 MỤC LỤC ACKNOWLEDGEMENT.1 LIST OF ABBREVIATIONS. 4 LIST OF TABLES.
4 LIST OF FIGURES. The necessity and meaning of the research topic. Subject and scope of the research. Structure of the research topic.
8 LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT. The concepts of development strategy.1 Concepts about strategy. The concept of strategic management:. The role of business strategy.
Process of building business strategy. Defining the business’s vision and mission. Analyzing external environment. Analyzing macro-environment.
Analyzing micro-environment. External Factor Evaluation EFE. Analyzing internal environment. Internal Factor Evaluation IFE.
Strategy formulation process. The Competitive Profile Matrix (CPM). Quantitative Strategic Planning Matrix (QSPM). Strategy evaluation and control.
30 THE REAL SITUATION OF BUSINESS ACTIVITIES AT TRANG AN SECURITIES JOINT STOCK COMPANY. General information of Trang An Securities Joint Stock Company. The organizational chart and controlling system of TAS. Products and services of TAS:.
TAS’s products and services. Some typical products have been made. Vision and mission. The business activities of Trang An securities JSC from 2008 to 2010.
Analyzing external environment of TAS. Analysis of macro-environment. Technological and technical factors. Vietnam securities market in 2011: Face up with many threats and fluctuations before being able to sustainably recover.
Analyzing micro environment. External factor evaluation matrix EFE. Analyzing internal environment of TAS. Marketing and PR work.
The SWOT matrix. 62 PROPOSAL OF BUSINESS STRATEGIES AND IMPLEMENTATION SOLUTIONS FOR TRANG AN SECURITIES JOINT STOCK COMPANY IN THE PERIOD OF 2012 – 2017. Orientation for business strategy of TAS in the period of 2012 - 2017. Proposed strategies and appropriate strategic choices for TAS.
Selection of priority strategy. Solutions for implementing business strategy of TAS. Solutions on human resource. Solution on marketing…………………………………………………….
Solution on capital………………………………………………………. Solution on information technology………………………………………71 CONCLUSION.74 4 LIST OF ABBREVIATIONS APS: APEC securities joint stock company AVC: Au Viet securities joint stock company EFE: External Factor Evaluation GDP: Gross Domestic Product HRM: Human resource management IFE: Internal Factor Evaluation MIS : management information system PEST: Political - Economics - Socio-culture - Technological R&D: Research & develop SWOT: Strengths, Weaknesses, Opportunities, Threats SSC: Sao Viet securities joint stock company QSPM: Quantitative Strategic Planning Matrix TAS: Trang An securities joint stock company JSC: Joint stock company LIST OF TABLES Table 1.1 Example of External Factor Evaluation Table 1.2 Example of IFE matrix Table 1.3: QSPM Model Table 2.1: Some major contracts have been implemented by TAS Table 2.2: The business result of Trang An securities JSC from 2008 to 2010 Table 2.3 Five-force analysis model Table 2.4 SWOT analysis of competitors Table 2.5: Compare some criteria in business TAS against rivals Table 2.6: External Factor Evaluation matrix Table 2.7: Evaluation of internal factors matrix Table 2.8: SWOT matrix of TAS Table 3.1: Some financial ratios Table 3.2: The quantitative strategic planning matrix for optimal strategy selection 5 LIST OF FIGURES Figure:1.1: Process of strategic management Figure 1.2: PEST model in macro-environment analysis Figure 1.3 Five-force model of M.1: Organizational Chart of TAS Figure: 2.2: The GDP Growth of Vietnam from 2007 to present and Forecast for 2012 Figure: 2.3: Inflation of Vietnam in period of 2000-2010 Figure: 2.4: Employee’s qualification of TAS Figure:3.1: Market share of securities of brokers Vietnam 2010. The necessity and meaning of the research topic The world economy has been in more stable phase after economic crisis and is having significant development. Together with general development trend of the world economy, Vietnam is gradually marking position in global economy.
With the open economy, demand on capital in regard to enterprises increases and become diversified. Securities market, by means of a part of market. It is useful took to solve demand on capital. However, the ups and downs of market in 2010 and first half of 2011 have made some securities companies recognize efficiency and adjust their trading activities.
As a new company, the Trang An Securities JSC has to face more competition not only the domestic companies but also foreign firms with strong finance because the growing number of competitors will reduce the TAS's market share Coming from above problems, our groups realized the particularly important role of building strategy for existence and development of a securities company. Therefore, the group decided to select topic “Developing business strategy for Trang An Securities Joint Stock Company in the period of 2012 - 2017" with the desire to apply the our knowledge to contribute to the sustainable development of the Company in the current situation. Researching objectives - To systematize basic knowledge and theory of strategic management and strategy building. - To initially approach to actual operations of securities company in particular and Vietnam securities market in general and building a new business strategy for company.
- To propose some solution strategies for the TAS during the period 2012 - 2017. Subject and scope of the research - Subject: Analysis on the business environment of Trang An Securities Joint Stock Company helps us build the business strategies for the Corporation during 2012-2017. - Scope of the research: 7 Trading activities of Trang An Securities Joint Stock Company, Vietnam securities market and some factors in currency market IV. Research methodology Primary data source used is the prospectus, annual report of the company, the other companies in the industry and the data on public companies in the market.
From In addition to that, analysis and synthesis of data, logical thinking, deductively etc. are also the methods used to complete the capstone project. Structure of the research topic Chapter 1: Literature review of strategy and strategic management Chapter 2: The real situation of business activities of Trang An Securities joint stock company Chapter 3: Proposal of business strategies and implementation solution for Trang An securities JSC in the period of 2012 – 2017. 8 CHAPTER 1 LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT 1.
The concepts of development strategy 1.1 Concepts about strategy From the past up to now, there are many views on the strategy. For example, as is the view of Alain Threlart, ME Porter, G. But they all revolve around the internal affairs such as: "Strategy is the art" or "strategy is a special plan" or "the strategy is a plan, just as art" According to the school of Harvard Business University (1965): “Strategy is system of goals, targets stated under the form of sectors/business activities that the company wants to, entry, size, position that the company wants to achieve and basic policies as well as plans to implement predetermined targets”. According Michael Porter: “Strategy is the creation of unique and valuable position including differentiation, exchanged selection to focus on resources; from that it brings advantages for organization”.
From above definition, we can see that strategy relates to long term and basic goals of an enterprise. Nevertheless, building and selecting the strategy oriented goals are not enough; strategy must be defined as matching to vision, mission of organization and methods as well as means to reach those goals the most effectively. If applicable, it promotes strengths, overcomes weaknesses, makes use of opportunities and mitigates threats from external environment. Thus, we can define strategy in general as following: “Strategy is a series of complex activities to mobilize resources of organization and gain certain objective.
The concept of strategic management: - Strategic management is the process of researching, analyzing the external and internal environment of a company in the current and future period; defining the company’s objectives; planning, implementing and evaluating the strategy to effectively utilize the resources and reach the desired goals. - The process of strategic management: 9 Figure:1.1: Process of strategic management 1. The role of business strategy The role of business strategy in enterprise is demonstrated through following issues: - Business strategy helps enterprise define their orientation in each specific period of time. It is guideline for all production and trading activities of enterprise.
- Business strategy helps enterprise catch and make use of opportunities, promote strengths and have initiatives to overcome weaknesses, avoid or respond to mitigate damages from external threats in competitive market. - Business strategy has significant contribution to the effect of using resources, promotes position of enterprise and ensures the continuous as well as sustainable development. - Business strategy creates solid foundation for enterprise to make decisions in accordance with displacement of market. It also creates solid foundation for research and deployment, development investment, human resource training, market expansion and product development.
Process of building business strategy 1. Defining the business’s vision and mission Vision: Strategic vision demonstrates the highest and the most general desires and wishes that organization wants to achieve. We also consider vision as 10 routine of enterprise in which it shows the destination in the future and the way enterprise will follow to reach that destination. Or in other words, strategic vision is to draw a picture of destination together with reasons and means to do.
Defining and stating vision have particularly important role since it gathers expectations of all members in enterprise and encourages them making efforts to gain goals, career and noble ideas. Mission: Mission or function is a statement having long term value in objective and distinguishes this company to others. Such statements are also called as business philosophy, business principles and belief of the company. According to Drucker, the business mission statement gives answer to the question “What is our business operation?” “What would we do and how would we do to reach the vision statement?” Core thinking Core thinking defines long term features of an organization.
It is consistent definition over life cycle of product or market, technological breakthrough, ways of administration and leaders. In fact, core thinking creates the most important and stable contributions for success in a company with further vision. Core thinking is basic and sustainable regulations, principles of organization. Core values do not need to external defense.
They have value and important within organization. A company must determine value as a core that is dependent on current environment, competitive environment and administration methods. In order to recognize core value, we need to sort the honesty and define the central one. Analyzing external environment External environment includes factors, forces and regulations happening out of enterprise.
Enterprise cannot control them but they have significant influences to efficiency and operation of enterprise. Recognizing and assessing opportunities and threats from external environment led enterprise define their mission and functions correctly and obviously. Furthermore, enterprise can build strategies and reach long term target as well as policies to reach annual targets. External environment contains: 11 - Macro-environment or known as general environment; - Sector environment or known as micro-environment or competitive environment.
Analyzing macro-environment Macro-environment is the environment covering activities and having direct or indirect influences to all activities of company. We can use PEST model to analyze macro-environment. The model includes: - Political - Economics - Socio-culture - Technological Figure 1.