GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT CAPSTONE BUILDING PROJECT BUSINESS REPORT STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK BUILDING BUSINESS STRATEGY FOR 12/9 COMPANY IN PERIOD OF 2010 - 2020 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD Group: OF 2010 - 2020 12 -VO110 Students: Group: 12 -VO110 1. Nguyen Thi Le Tram (Group leader) 2. Students: Phan Sy Thang 3. Tran Nghia Nguyen Thi Hoa Le Tram (Group leader) 4.
Bui PhanThai Truong Sy Thang 5. Ngo TranVan Toan Nghia Hoa 4. Bui Thai Truong 5. HA NOI Ngo 2011 Van Toan TABLE HAOF CONTENTS NOI 2011 ABBREVIATIONS.
4 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 INTRODUCTION. General background and rationale of the assignment topic. Purpose and object of the study. The assignment is divided in to 3 main chapters as follows.6 CHAPTER 1: THEORETICAL BASIS TO BUILD CORPORATE’S BUSINESS STRATEGY.
The concept and the role of corporate strategy:. Corporate Business Strategy concept:.2 Role of business strategy to the corporate. How Strategy is Managed - Strategic Management.1 Determining the function, mission and the strategic objective of the corporate. Assessing the external environment.
Macro environment – National business environment (using PEST model).3 Analysis of internal business.1 Resource analysis of a corporate.2 Analysis of competition competence of businesses. Developing strategic planning.4 Analysing and selecting stategy. Selecting corporate strategy. Selecting product strategy - business base strategy.
The specific characteristics of building business strategy of PVC 12/9.24 CHAPTER II: BUSINESS ENVIROMENT ANALYSIS AND INTERNAL ANALYSIS OF 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY 25 2. History of establishment and development.Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 2. Functions and duties:.3 Vision and Strategic Mission of the Company.5 The major business areas:. Analysis of elements affecting business performance of 12/9 PetroVietnam Cement Joint Stock Company.
Law – Political elements. Sector environment analysis. Pressure of suppliers. Pressures of customers.
Threat of potential rivals. Threat of substitute products. Analysis of competition intensity of the current rivals. Analysis of internal PVC12/9.1 Resource analysis of PVC 12/9.
Staff and management:.3 Material and Technical facilities:. Analysis of PVC 12/9 ‘s competition ability. Strengths, Weaknesses, Opportunities and Threats of PVC 12/9. SWOT matrix of PVC 12/9.Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 Chapter III: PROPSING STRATEGIES AND PERFORMANCE SOLUTION OF THE COMPANY.
Developing strategy of PVC 12/9 from 2011-2015 and orientation to 2020. Selection of strategies. General strategy of an enterprise from SWOT matrix. Expanding marketing strategy.
Strategies to promote the competitiveness. Strategy to diversify industries and businesses. Selection of a specific business strategy. Product and services strategy.2 Distribution channel development strategy.
The strategic solutions. Product and service solution. Science and technological solution. Organizing structure and controlling production.
Human resource development. Distribution channels and market development solution.Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 ABBREVIATIONS Orde Abbreviation Meaning r 1 PVN Vietnam Oil and Gas Group 2 PVC 12/9 PetroVietnam Cement Joint Stock Company 3 CP Share Share of PetroVietnam Cement Joint Stock 4 CP PX1 Company 5 CBNV Staffs 6 UBND People’s Committee 7 ROA Return on Asset 8 ROE Return on Equity 9 WTO World Trade Organization 10 AFTA ASEAN Free Trade Area 11 HĐQT Board of Directors 12 BGĐ Board of Managers 4 V0110.Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 INTRODUCTION 1. General background and rationale of the assignment topic The globalization and international economic integration, with the strong development of science and technology have created huge opportunities, however; also pose many challenges for enterprises. Enterprises always face with competitions which are severe and have the sense of “internalization”, therefore, to survive and develop in this context, each enterprise is required to have its own business strategy to exploit advantages and to turn international commitments into their actions, to promote internal resources combining production and business closely, to renew continuously technology, and improve the product quality and the competitiveness to strengthen its position in global economic integration.
Participating in production and business activities in the cement industry and construction material manufacturing industry- an industry currently is facing with the severe competitive pressure, not only among domestic enterprises but also competition with exported cement- this fact requires enterprises in cement and construction material industry in general as well as PVC12/9 in particular have to a reasonable business strategy to keep their positions stably and develop. Starting from the above fact, the group 12-VO11 has chosen the topic: “Building up business strategies for PVC 12/9 in the period of 2011-2020” to research with the aim of building a reasonable business strategy for PVC 12/9, to help the company be active in business, perform well short-term goals as well as be more successful in the future. Purpose and object of the study * Purpose of the study: 5 V0110.Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 - To analyze and assess the state of the whole production and business of PVC 12/9 - To select and propose business strategies for the company in the period of 2011-2020. * Subject of the study: Internal and external environment of PVC 12/9; business strategies of the company in the period of 2011-2020.
Methodology This study uses qualitative research methods including observation, interview, group discussion to synthesize, analyze and compare the primary sources as well as secondary sources about business environment and operation condition of PVC 12/9. - The quantitative methods such as statistical analysis, comparison, and synthesis, etc are based on the analysis of primary data and secondary data. The secondary sources are collected from various source such as PVC 12/9, PVN, Minister of Construction, Minister of Industry and Trade, Minister of Planning and Investment, Nghe An Statistic Department and reports of Anh Son district (Nghe An), press information. The primary sources are collected from the meeting, interviewing of the PVC 12/9‘s leaders, and staffs to learn more about those information which is not released in annual reports and about some strategic orientation of the company in the following years 4.
The assignment is divided in to 3 main chapters as follows Chapter 1: The theoretical background to corporate’s strategy Chapter 2: An Analysis of business environment and internal environment of PVC 12/9 Chapter 3: Recommendation of strategy and solutions for PVC 12/9.Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 CHAPTER 1: THEORETICAL BASIS TO BUILD CORPORATE’S BUSINESS STRATEGY 1. The concept and the role of corporate strategy: 1. Corporate Business Strategy concept: In economics, there are now many definitions of strategy which are different depending on each author’s conception. In 1962, Chandler defined “Strategy is the determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals.
Chandler is one of the first to initiate strategic management theory. Until 1980 when the subject of strategic management has become ripe, Quinn gave a more general definition: "a strategy is the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole. Then, Johnson and Schole define strategy as follows: "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations". In other words, business strategy is: - Where is the business trying to get to in the long-term (direction) - Which markets should a business compete in and what kind of activities is involved in such markets? (Markets; scope) 1 ? [ ] Chandler, A.
(1962) Strategy and Structure.Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 - How can the business perform better than the competition in those markets? (advantage)? - What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources)? - What external, environmental factors affect the businesses' ability to compete? (environment)? - What are the values and expectations of those who have power in and around the business? (stakeholders) * Features of a business strategy: - A business strategy defines the purpose and the development direction of an enterprise in a relatively long period (three years, five years, even more…) to ensure the business of this enterprise to develop continuously and steadily in volatile business environment of the market economy. - A business strategy only outlines a long-term and oriented direction while in practice, business has to implement the principle of combining the strategic objective with the situation objective, combining strategy with tactic and plans of operational business. Building up a strategy is to outline the framework for long- term business activities of an enterprise in the future on the basis of information collected through the process of analyzing and forecasting. - All decisions of important strategies in the process of building, deciding, organizing to implement, evaluating, and controlling strategies are focused on the highest leaders of an enterprise.
However, the development/construction of an enterprise’s strategies is by the staff of consultants participating in providing information, but making important decisions belongs to the leaders of that enterprise. - A strategy is guaranteed the secrets of business information in the market economy.Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 - A business strategy firstly and mainly is built up for businesses, specialized busisness fields, tradition, and strengths of an enterprise. That makes an enterprise to develop, select and implement strategies as well as participating in business on the marketplace with preparation and strengths.2 Role of business strategy to the corporate In any filed of management, a business strategy is still confirmed the important role in the following sides: - To orient long-term activities and to be a solid foundation for the implemetation of operational activities. Lack of strategy or unclear strategy will make activities lose direction, only see in the short term but cannot see in the long- term, only see a part without seeing the whole.
- To create a solid foundation for activities of research and development, investment, training human resources; to strengthen the competitive position of enterprises, and to ensure the sustainable development of enterprises. In fact, most of negotiation mistakes of investment, and implementation research are derived from lack or mistakes in determining strategic objectives. - To provide the foundation for enteprises to actively develop aprropriate business directions to environment on the basis of making use of opportunities, avoiding risks, and promoting the advantages of enterprises in business. Strategy at Different Levels of a Business Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it.
Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement".Group12 BUILDING BUSINESS STRATEGY FOR 12/9 PETROVIETNAM CEMENT JOINT STOCK COMPANY IN PERIOD OF 2010 - 2020 Business Unit Strategy - is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc.
Operational Strategy - is concerned with how each part of the business is organized to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc.