Building Business strategies for Engineering construction No.419 joint stock company CAPSTONE PROJECT REPORT “Build up business strategy for Engineering Construction no.419 joint stock company by 2020” GROUP No.6 Nguyễn Kiên Cường - Group leader Hoàng Mạnh Trí - Group member Bùi Văn Phú - Group member Nguyễn Minh Hiếu - Group member Class: GaMBA 01.V03 Nghe An 2011 -1- Building Business strategies for Engineering construction No.419 joint stock company ACKNOWLEDGMENTS We sincerely thank the Board of administor, Board of Directors and departments of Engineering construction No.419 Joint stock company enthusiastically helped us in the process of providing data and advice issues related topics. Besides, we would like to thank the teachers of Griggs’s training program, ETC, management board of the class and leaders of offices, Hanoi national University has provided us with the knowledge and skills in business administration during the course, thank all the member in ETC Center of Hanoi National University has accompanied and supported us in the process of learning and comleting the subject. Our warmly thanks! VARIOUS AUTHORS -2- Building Business strategies for Engineering construction No.419 joint stock company COMMITMENTS We swear that the topic : “build up business strategy for Engineering Construction no.419 joint stock company by 2020” which the topic is studied by our Group. All the databases are supplied by Engineering Construction no.419 joint stock company, all the results in the topic are honesty and has not been published by anyone, any topics before yet.
Vinh, April 2011 GROUP No.6 CONFIRMED BY: ENGINEERING CONSTRUCTION N0.419 JOIN STOCK COMPANY. We realize that: all the datas are supplied by our company and we also thank the authors whom gave out business trategies for our company. -3- Building Business strategies for Engineering construction No.419 joint stock company TABLE OF CONTENTS pages ACKNOWLEDGMENTS.3 CONFIRMED BY ENGINEERING CONSTRUCTION N0.419 JOIN STOCK COMPANY. The need of topic study.
Scientific and realistic significances of the topic:. 9 CHAPTER I ARGUMENTAL BASIS TO BUILD UP BUSINESS STRATEGIES FOR THE ENTERPRISE. DEFINITION AND THE ROLE OF BUSINESS STRATEGIES FOR ENTERPRISE. Definition and the role of business strategies.
Distinction of business strategy. Levels of business strategies. Enterprise level strategy. Business unit strategy.
Functional level strategy. PROCESS TO BUILD UP BUSINESS STRATEGY FOR THE ENTERPRISE. Study business opportunities and prediction of market demand. Requirement and basis to build up business strategy.
Requirement in building up business strategy .13 -4- Building Business strategies for Engineering construction No.419 joint stock company 2. Basis to build up business strategy:. Process to build up business strategies. Select and make decision on business strategies.
Principle to appraise and evaluate business strategies. Standard to appraise and evaluate business strategies. Select and make decision on business strategy. Factors impact on process to build up business strategies in the enterprise.
Global business environment. National economic environment. Internal factor of the enterprise. CONTENTS OF APPROACH BUSINESS STRATEGY .23 CHAPTER II ANALYSIS OF BASIS TO BUILD UP BUSINESS STRATEGIES FOR ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY.
FORMATION AND DEVELOPMENT OF ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY. Formation and development:. Diagram of management machine:. Implemented and being implemented projects.
Mission, strategic targets and operational orientation of the company. Mission of the company:. Main targets of the company. Orientation of the company:.
ANALYSIS OF BUSINESS ENVIRONMENT OF ENGINEERING -5- Building Business strategies for Engineering construction No.419 joint stock company CONSTRUCTION NO.419 JOINT STOCK COMPANY. Analysis of internal environment of the company. Analysis of operational sector. Analysis of marketing capacity (advertise image and products of the company).
Analysis of human resource. Analysis of organizational structure and administration machine of No. Analysis of financial capacity. Some other strengths of Engineering construction No.419 Joint stock company.
General analysis of internal environment of the company. Analysis of external environment of the company. Legal and political environment:. Scientific and technological environment.
Social and cultural environment. Pressure from competitive opponents. Pressure from customers. Pressure from providers.
Pressure from potential competitive opponents. Pressure from replaced products. General analysis of external business environment. Formation and selection of strategy.47 CHAPTER III SOLUTIONS TO IMPLEMENT BUSINESS STRATEGIES IN -6- Building Business strategies for Engineering construction No.419 joint stock company ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY.
CONTENTS OF SELECTED BUSINESS STRATGY IN ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY. Advantage and price –based bidding. Technique and technology based bidding. Financial capacity based bidding.
Non-economic advantage based bidding. Human resource development strategy:. Capital mobilization strategy:. SOLUTIONS TO IMPLEMENT BUSINESS STRATEGIES IN ENGINEERING CONSTRUCTION NO.419 JOINT STOCK COMPANY.
Solutions for bidding strategy:. Solutions for advantage and price –based bidding:. Technique and technology based bidding:. Financial capacity based bidding:.
Non-economic advantage based bidding. Solutions for human resource development strategy:. Solutions for capital mobilization strategy:. CONDITIONS AND ROUTE OF IMPLEMENTATION AND SOME RECOMMENDATIONS .1 Conditions of validity and effect of business strategies .2 Conditions of human factor.
Route of implementation.59 -7- Building Business strategies for Engineering construction No.419 joint stock company PREFACE 1. The need of topic study In recent years, Vietnamese market economy with the appearance of many economic sectors has got many positive changes in which economic growth rate is rather high, State’s policy has been gradually improved, business environment has been more and more in equality that creates many good condition for enterprises. In global economic integration, Vietnamese enterprises must cope with many opportunities as well as new, complex and risky business environment. During the time when studying Global executive Master of business administration in Viet Nam organized by Griggs University, we have approached many theories of business administration in enterprise; approaching theory without applying into reality will not bring good results, which has impacted on our ideas on this capston project report.
With such significance, we are bold to choose the following topic “build up business strategy for Engineering Construction no.419 joint stock company by 2020” as the topic for our report. Study target: This topic has the target which is to construct a business strategy to promote the development of Engineering Construction no.419 joint stock Company within 2011 -2020. Study method: We have used the following methods: applying theory of system, prediction, general analysis (qualitative and quantitative), statistics and comparison. Secondary data are collected in Engineering construction no.419 joint stock Company (abbreviated name: EC NO.419 JSCO) and some directly competitive companies, opponents of no.419 traffic project construction joint stock Company.
Besides, there are also some financial data, economic data via papers, Websites… 4. Study scope: This topic is done in correlation with many different scientific sectors such as -8- Building Business strategies for Engineering construction No.419 joint stock company economy, finance, law, problems of global economic integration, updated news….However the topic is just within the study scope on business activities of EC NO.419 JSCO and enterprises of the same sector with the consideration of general situation of transportation sector in current period and in the coming time. Scientific and realistic significance of the topic: - The topic can help managers and administrators of EC NO.419 JSCO to have a general view on business strategy of enterprise, consolidate knowledge and skills to construct and present business strategy of the enterprise. - The topic provides the company with a plentiful references and concrete business strategy within 2011 -2020, which is a significant period for development strategy of the company as well as transportation sector.
- The topic can raise the importance and significance in analyzing and predicting business environment of the enterprise, quantified problem of influence level of environmental factors (internal factors– external factors) in constructing and analyzing matrix in analysis frame of strategy formation. Topic structure: The main structure of the topic includes 3 chapters (preface and conclusion). Chapter 1: Argumental basis on business strategy of enterprise Chapter 2: Content to construct business strategy of Engineering construction no.419 joint stock Company. Chapter 3: Methods to implement business strategies of Engineering construction no.419 joint stock Company.
During the time to study and finish the topic, our group has received great help from lecturers and teachers of Griggs’s training program, ETC, management board of the class and leaders of offices, divisions of Engineering Construction no.419 joint stock Company. Then on behalf of group 6, I want to show my great gratitude to all of you! -9- Building Business strategies for Engineering construction No.419 joint stock company CHAPTER I ARGUMENTAL FOUNDATION TO BUILD UP BUSINESS STRATEGY FOR THE ENTERPRISE I. DEFINITION AND THE ROLE OF BUSINESS STRATEGY FOR THE ENTERPRISE. Definition and the role of business strategy Since 1950s of twentieth century, business strategy has been applied rather widely in management and strategic administration has been proved as an effective management method which has been widely applied in enterprises of developed nations.
Within any scope of management, strategy can still prove its own advantage on all following aspects: - Orient long term activities and be the strong basis for implementing operational activities. - Create firm foundation to study, implement, invest, develop, and train human resource. - Create foundation for enterprise to be active in developing business orientation suitable to the environment based on exploiting opportunities, promoting advantages of enterprises in business. - Improve situation, position of a company, sector and locality; profits in term of finance and non-finance.
Currently, there are many different definitions on business strategy. “Business strategy is a series of commitment and action that a company can use to get a competitive advantage by exploiting core capacity in a defined market ". Currently popular approach defines: “Business strategy is total long term targets, financial policies and big solutions of production – business, finance and solving human factor to bring business activities of an enterprise to a higher qualitative development”. - 10 - Building Business strategies for Engineering construction No.419 joint stock company 2.
Distinction of business strategy Within the scope of business strategy and enterprise development, distinctive features are rather consistent including: + Strategy to define targets and orientation of enterprise development within a rather long period (3 years, 5 years, 10 years.) + Business strategy just drafts long term orientation while in doing business we must follow the principle “combine strategic target with situational target”; “combine strategy with policy as well as operational business options ". + All important strategic decision in building strategy, organizing to implement and check, assess, adjust strategy must be concentrated on the highest leader of the enterprise. + Business strategy is always constructed, selected and implemented based on comparative advantage of the enterprise. This will require enterprise to evaluate the right reality of its own business activities when constructing strategy and considering internal factors in implementing strategy.
+ Business strategy is firstly and mainly constructed for business sectors, specialized business forms, tradition and advantage of the enterprise. This will make enterprise build up, select and implement as well as join in the market with preparation and advantage. Levels of business strategy With regard to each product and market, customers also have relative independence; with regard to such enterprises, there will be different strategies for different operational levels; as usual there are three strategic levels: 3. Enterprise level strategy This strategy can define operational sector of the enterprise, position of enterprise in environment and the role of each business sector in enterprise.
Business unit strategy. It can define the position of business sector in enterprise, position of the sector - 11 - Building Business strategies for Engineering construction No.419 joint stock company in environment and how to compete in each operational sector. Functional level strategy. This is the strategy to support implementing business unit level strategy and enterprise level strategy including the followings: researching and development, producing, marketing, personnel, and finance.
In brief, each unit often has three distinctive strategic levels; completion of strategy must be comprehensive in three levels; however it is due to the orientation of strategy then strategy in higher level will play more important role.