CAPSTONE PROJECT BUILDING BUSINESS STRATEGY FOR THE CENTRAL INVESTMENT AND INFRASTRUCTURE DEVELOPMENT JOINT STOCK COMPANY Group: 02 1. Nguyen Thi Anh: Group leader 2. Phan Van Anh: Member 3. Nguyen Xuan Hanh: Member 4.
Phung Thanh Vinh: Member Vinh City - Nghe An, 2011 Business Strategy of Central Investment and Infrastructure Development Company Group: 02 1 Class GAMBA01.V03 CONFIRMATION OF SELECTED UNIT FOR DOING RESEARCH Central Investment and Infrastructure Development Joint Stock Company Central Investment and Infrastructure Development Joint Stock Company is the unit having enough all corporate capacity, independent economic accounting, stamp, deposit account and loan in State Bank in accordance with Business Law. Being a young company with stable and sustainable development, our products are high discipline, leading quality and over progress civil – transportation and irrigation construction projects containing high discipline, leading quality and over progress. With good leadership staff and skilful employees, the company is on vanguard to renovate management with investment to in advanced, modern and specialized equipments. As a result, the company satisfies all requirements of customers, investors in project quality, safety as well as progress.
The company has enough capacity and prestige in market and has been highly appreciated and recognized by investors. Furthermore, the company is in development roadmap to be appropriated as reliable address of investors and customers. During the process of development, builind and , planning strategy basing on fully and exactly analysis and assessment toselect and implement strategy for period 2011 – 2015. We also coordinate with author group No 02 – Gamba01-V03 of Global Advanced Master of Business Administration Program – Griggs University.
We confirm that all data from our company is true and guaranteed and we would like to propose Committee and University considering and creating favorable conditions for their completion of this capstone project. CHAIRMAN OF BOARD CUM DIRECTOR MBA Nguyen Hai Lam Business Strategy of Central Investment and Infrastructure Development Company Group: 02 2 Class GAMBA01.V03 TABLE OF CONTENTS Page INTRODUCTION 1. The reason for selecting topic 2. Research objectives and applicability 3.
Structure of the capstone project CHAPTER I THEORETICAL BASIS OF BUILDING BUSINESS STRATEGY 1.1 Definition and the role of strategy and business strategy 10-14 1. Viewpoints about strategy; 1. Features of strategy; 1.3 Kinds of business strategy 1.4 The role of strategy 1.2 Process of building business strategy 14-26 1. Process of building strategy 1.
Defining mission and goals of organization 1. Analyzing external environment factors 1. Influences of external environment factors on business strategy; 1. Analyzing internal environment factors 1.
Analyzing value chain; 1. Analyzing financial condition. Selecting business strategy 1.3 Tools used to analyze business strategy 26-27 1.1 Tools used to analyze strategy 1.2 Selecting analysis tools 1.3 Solutions to implement strategy Business Strategy of Central Investment and Infrastructure Development Company Group: 02 3 Class GAMBA01.V03 CHAPTER II ANALYZING AND BUILDING BUSINESS STRATEGY OF HA TINH CENTRAL INVESTMENT AND INFRASTRUCTURE DEVELOPMENT JOINT STOCK COMPANY UNTIL 2015 2.1 Overview about the company 28-32 2. Process of formation and development 2.2 Analyzing external environment factors: 33-43 2.
Socio-cultural factor; 2. Political and legal factor. Analyzing sector environment: 2. Overview about construction industry in 2010; 2.
Some issues about implementing irrigation construction in Vietnam; 2. Opportunities and threats of construction environment sector 2.3 Analyzing five forces model: 2.1 Competitive pressure from suppliers 2. Competitive pressure from buyers 2. Competitive pressure from potential competitors 2.
Competitive pressure from internal sector 2. Competitive pressure from substitute products 2. Analyzing internal environment factors 43-54 2. Analyzing basic resources of the company; 2.
Analyzing the main financial criteria; 2. Analyzing service product groups of the company; 2. Analyzing resource and management capacity of the company: Business Strategy of Central Investment and Infrastructure Development Company Group: 02 4 Class GAMBA01.4 Assessing opportunities, threats, strengths and weaknesses of 45-57 Central Investment and Infrastructure Development Joint Stock Company: Selecting the main business strategies of Central Investment and Infrastructure Development Joint Stock Company through SWOT matrix. CHAPTER III SELECTING STRATEGY AND SOLUTIONS TO IMPLEMENT STRATEGY OF CENTRAL INVESTMENT AND INFRASTRUCTURE DEVELOPMENT JOINT STOCK COMPANY 3.1 Strategy development orientation of the company in the future 58-59 3.3 Business strategy solutions for the company 59-69 3.1 Solutions on finance 3.2 Solutions on management 3.3 Solutions on human resource 3.4 Solutions on competitiveness 3.5 Solutions on technology 3.6 Solutions on Marketing Recommendation Conclusion References Appendix AUTHOR GROUP Business Strategy of Central Investment and Infrastructure Development Company Group: 02 5 Class GAMBA01.V03 Business Strategy of Central Investment and Infrastructure Development Company Group: 02 6 Class GAMBA01.V03 LIST OF CHART AND TABLE Chart 1.1: Business strategy procedure Chart 1.Porter’s five forces model Chart 2.1: Organization structure of the company Chart 2.2: Organization structure of the company Table 1.1: Opportunities and threats Table 1.2: Strengths and weaknesses of the company Table 1.3: SWOT matrix Table 2.1: Expenditure of the company Table 2.2: Implemented construction projects Table 2.3: Implemented transportation projects Table 2.4: Implemented irrigation projects Table 2.5: SWOT matrix applied for the company Table 3.1: Strategy selection for the company ABBREVIATION HAD: Central Investment and Infrastructure Development Joint Stock Company SWOT: Strengths, weaknesses, opportunities and threats HASTC: Hanoi Securities Trading Center US: The United States of America USD: US dollar GDP: Gross Domestic Products BOM: Board of Managers Business Strategy of Central Investment and Infrastructure Development Company Group: 02 7 Class GAMBA01.
The reason for selecting topic The second half of 2009 and 2010 is the period of economic crisis for Vietnam as well as all around the world. In that general context, national and foreign Investment and construction sector fell in the stagnation since investment capital was controlled, material price was declined significantly. As a result, there were many projects delayed and not reached progress in contract. Closing the project year of 2009 – Trading and production value of the company was 123.437 billion VND increasing 14% in comparison with corresponding period of preceding year.
Many big projects have been conducting and being in completion phase since the decrease of material price, interest rate began getting public investment effect and ODA disbursement was promoted. Nevertheless, during the operation process, enterprises in construction industry especially basic construction ones face up with many difficulties resulted from the world financial crisis. Furthermore, the difficulty in mobilizing capital leads to shortage of budget and delay of many projects. Besides, the operation of administration and management in some companies are quite limited which does not meet management requirements for a large scale.
Many key sectors of construction industry have been not paid much attention and lack of professional in attracting investment capital and developing. As a result, it has remarkable influences to earnings of the company and many other economic objectives. Ha Tinh Central Construction and Infrastructure Development Joint Stock Company is the one focusing on construction investment in infrastructure and transportations projects to develop the economy in urban and rural areas nationwide. Especially, in Ha Tinh province, the company has the leading market share in comparison with other in the same sector with 15 years of foundation and development.
Nevertheless, apart from successful investment projects with positive earnings, the company still has many shortcomings after the global economic crisis. Business Strategy of Central Investment and Infrastructure Development Company Group: 02 8 Class GAMBA01.V03 Furthermore, the company has not made use of their available strengths to out pass ones in the same system. Trading results are not proportional with their potential. After integrating in WTO, construction companies have accessed many advanced methods and technologies with entire opportunities for more development.
On the contrary, they also have to compete with foreign construction ones. At this time, barriers and advantages of national companies are threatened. Prior to that context, it is necessary and imperative for construction companies to build and select a strategy, a stable solution to develop business condition. An effective business strategy not only provides the company with stability, sustainable development and earnings but also is a good solution contributing for the development of sector and the country.
From above reasons, the group selected topic in line with the theme “building business strategy for Ha Tinh Central Investment and Infrastructure Development Joint Stock Company until 2015”. The group also carried out the project as well as possibility with mission of developing the company in particular and construction industry in general. Research objectives and applicability The project has important meaning in reality. It supplies the comprehensive overview about operations for the development of company in crisis and violent competitive environment among members in construction industry.
Additionally, the topic will provide general picture about reality of the company recent years, analyze strategies relating to their activities, propose some solutions on organization management, business strategy and promote other strategies to enhance strengths. The research can be used as reference for projects and researches of construction industry. Additionally, the research has theoretical value and delivers new vision about strategy and business management methods of the company. Research scope: Business Strategy of Central Investment and Infrastructure Development Company Group: 02 9 Class GAMBA01.V03 With researched and analyzed data about operations of Ha Tinh Central Investment and Infrastructure Development Joint Stock Company, the group proposes business strategy for the company until 2015.
Research method: We generally used qualitative research methods basing on surveying, collecting information to synthesize and analyze with logical methodology. - Survey the reality to have assessment, correlation and comparison; - Consult viewpoints of experts in managing construction groups and companies as well as investment and development companies; - Sum up primary and secondary data collected from different sources in interviews with experts and discussions. Structure of the capstone project: This capstone project includes three chapters: - Chapter I: Theoretical foundation for building business strategy - Chapter II: Analyzing reality of the company - Chapter III: Solutions – recommendation and conclusion. Business Strategy of Central Investment and Infrastructure Development Company Group: 02 10 Class GAMBA01.V03 CHAPTER I THEORETICAL FOUNDATION OF BUILDING BUSINESS STRATEGY 1.1 Definition and the role of strategy and business strategy 1.1 Viewpoints about strategy From the past up to now, there have been many definitions about strategy according to different viewpoints.
We would like to introduce and analyze some traditional and modern notions to have relatively entire and extensive view about strategy conception. According to traditional notions, strategy is understood as: “Strategy is the research to find out suitable competitive position in an industry, a main operation scale happening competitive activities” – Micheal Porter. From this definition, strategy emphasizes the competitive aspect. According to Alfred Chandler “Strategy is the definition of long term basic targets for the enterprises, action programs together with allocation of essential resources to implement those targets”.
Jame Quinn, Dar Mouth University defines “Strategy is a model or plan of an organization to coordinate key targets, policies and operation orders within unification”. Definition of Willam F.Gluck said that: “Business strategy is a united, comprehensive and cooperative one designed to ensure the enforcement of basic targets in enterprise”. Nevertheless, this viewpoint has been not entire. In fact, officially planned projects do not take effect.
Therefore, enterprises need to have providing projects to respond in business process. In general, traditional viewpoints reveal their weaknesses. The essence of strategy is a science and an art to gain achievements. Nowadays, introduced viewpoints about strategy gradually replace traditional ones.
These viewpoints do not emphasize on the accounting and planning, they focus on selecting strategy up to predetermined goals of organization. In other Business Strategy of Central Investment and Infrastructure Development Company Group: 02 11 Class GAMBA01.V03 words, modern strategy viewpoints attempt coming back essence of strategy term as well as ensure the adaption to this term in fluctuated business environment. In the most general way “Strategy is collection of long term basic goals, matched to mission, vision of organization. Strategy is also methods, means to gain those goals the best such as promoting strengths, overcoming weaknesses, making use of opportunities and mitigating threats from external environment.2 Features of strategy.