GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION ***** CAPSTONE PROJECT REPORT *** Topic: BUILDING BUSINESS STRATEGY FOR HTC COMPANY WITHIN THE PERIOD OF 2011 – 2015 Group 11 Group members: Nguyễn Xuân Tuyến – group member Nguyễn Ánh Ngà – Group leader Hoàng Hà – group member Hoàng Xuân Cường – group member BUILDING BUSINESS STRATEGY FOR HTC Ha Tinh, April 20th 2011 COMMITMENT Our group pledge that: Our finished graduate essay based on many document sources and real basis. This essay has not been copied any existing document contents. We will be responsible for this report content. THANKFULNESS We want to show our gratitude to Ha Tinh Tourism Joint Stock Company (HTC) that has provided data as well as meetings to construct business strategy for the company.
Besides, we also want to show great gratitude to professors, doctors who have provided us with skills and knowledge of enterprise administration during the course. Such knowledge is the basic foundation for us to prepare this topic as well as apply into working reality. Especially, we want to thank academic council of Griggs University that has instructed us during study process. Prepared by : Nguyễn Xuân Tuyến – group member Nguyễn Ánh Ngà – Group leader Hoàng Hà – group member Hoàng Xuân Cường – group member GAMBA01.V03 GROUP 11 Page 1 BUILDING BUSINESS STRATEGY FOR HTC Ha Tinh, March 23rd 2011 To: The concerned persons The comment of HTC about the Group 11’s graduate essay, Ga.V03 course – Griggs University, America.
All the members in group have analysed thoroughly the real situation to define the HTC’s strength, weak point also judge the market to define the chances and challenges aim to build a high practicability strategy. All the members in group have taken part in many straight discussions with the Board of Directors of HTC to bring out clear – headed strategy solutions and creative ideas. The content of the subject have adhered development target of HTC as a result its science and reality application are very good. HA TINH TOURISM JSC - HTC Director GAMBA01.V03 GROUP 11 Page 2 BUILDING BUSINESS STRATEGY FOR HTC TABLE OF CONTENTS PREFACE Page I.
The need of topic 8 II. The purpose of topic study and appliability 8 III. Reasearch method 9 IV. Report structure 9 CHAPTER I: ARGUMENT BASIS FOR BUILDING BUSINESS STRATEGY 1.
Definition and the role of strategic management 10 1. Definition of business strategy 10 1. The role of strategic business management 10 1. Process to define business strategy 11 1.
Vision, mission and target of the enterprise 12 1. Analysis of external environment 14 1. Analysis of internal environment 18 1. Build and select strategy 20 1.
Strategy system in enterprise 22 1. Strategy implementation 23 CHAPTER II: ANALYSIS OF BUSINESS ENVIRONMENT OF HTC 1. General introduction of HTC 24 1. General introduction 24 General introduction of the company 24 Member units 24 Organizational diagram 25 1.
Formation and development of HTC 25 1. Vision, mission and core value of HTC 27 1. Analysis of external environment of HTC 28 GAMBA01.V03 GROUP 11 Page 3 BUILDING BUSINESS STRATEGY FOR HTC 1. Analysis of economic factor 28 1.
Analysis of political and legal factors 30 1. Analysis of social cultural factors 33 1. Analysis of natural factor 34 1. Analysis of technological factor 36 1.
Analysis of sector environment according to five competitive pressure model of Michael Porter 37 Analysis of competitive intensity of opponents 38 Analysis of threats of potential opponents 38 Analysis of pressure from customers 39 Analysis of pressure from provider 40 Analysis of threats from substitute product 41 1. Summarizing external factors of HTC 41 Summary of Opportunity (O), Threats (T) of HTC 41 E.E table of HTC 43 1. Analysis of internal factors of HTC 44 1. Evaluating capacity of HTC 44 Brand name of HTC 44 Human resource 44 Financial capacity 46 Infrastructure resources 48 Management-leadership capacity 49 Technological capacity 50 1.
Summarizing internal factor of HTC 50 Summary of Strengths (S), Weaknesses (W) of HTC 50 I.E table of HTC 52 GAMBA01.V03 GROUP 11 Page 4 BUILDING BUSINESS STRATEGY FOR HTC CHAPTER III: FORMATION AND SELECTION OF STRATEGY AND STRATEGIC SOLUTION FOR HTC 1. Development orientation of HTC 53 1. Prospect of the market 53 1. Strategic target of HTC 55 Prospect of HTC 55 Targets of market 55 Targets of human resource 55 Financial norms 56 1.
Formation of business strategy option 56 1. Qualitative approach – SWOT matrix 56 1. Quantitative approach – IE matrix 59 1. Selection of business strategy for the company within the period of 2011 – 2015 and vision by 2020 60 1.
Co-centre diversification growth strategy 60 1. Vertical integration growth strategy 60 1. Leading cost and difference strategy 61 1. Concentrated growth strategy 62 1.
Solutions to well implement given strategy 63 1. Solutions on investment and finance 63 1. Solutions on human resource 64 1. Solutions on market 65 1.
Solutions on technology 67 1. Human resources for implementation 68 GAMBA01.V03 GROUP 11 Page 5 BUILDING BUSINESS STRATEGY FOR HTC 1. Evaluating risks and suggesting scenarios 69 CONCLUSION 70 REFERENCES 71 LIST OF ABBREVIATIONS HTC Ha Tinh Tourism Company SWOT Strengths, Weaknesses, Opportunities and Threats HĐLD Labor contract CBCNV Cadres and employees US The United State GDP Gross Domestic Products LIST OF TABLES : Page Table 2.1: Statistics about Ha Tinh Tourism Sector 36 Table 2.2: External factors evaluation E.3: Structure, qualification of cadres of HTC by 12/2010 43 Table 2.4: Business results report 44 Table 2.5: Brief balance sheet in three recent years 44 Table 2.6: Scale of hotels 45 Table 2.7: Internal Factor Evaluation I.1: Target of market of HTC 51 Table 3.2: Target of human resource of HTC 51 Table 3.3: Financial norms of HTC 52 Table 3.4: Investment expenditure within 2014-2015 63 LIST OF FIGURES : Trang GAMBA01.V03 GROUP 11 Page 6 BUILDING BUSINESS STRATEGY FOR HTC Figure 1.1: Basic model of strategic management 11 Figure 1.2: PEST model 13 Figure 1.3: The model of five competitive pressure of Michael Porter 16 Figure 1.4: SWOT matrix 19 Figure 1.5: IE matrix 20 Figure 2.1: Organizational structure of HTC 23 Figure 2.2: The model of five competitive pressure of Michael Porter 26 Figure 3.1 : IE matrix of HTC 55 GAMBA01.V03 GROUP 11 Page 7 BUILDING BUSINESS STRATEGY FOR HTC PREFACE I. The need of the topic Resolution of National Party’s Congress Legislature IX has defined “Development of tourism to become a key economic sector”.
National Party’s Congress Legislature X also defined clearly: “strong development and raising quality of tourism, diversifying products and tourism services”. Strategic mission of Vietnamese Tourism Sector has set up strategic targets for the coming years which enable Vietnamese Tourism quickly follow nations of developed tourism in South East Asia then enables the nation to become a tourism center within the region. Understanding its role in orienting national development as well as provincial development, Ha Tinh Tourism Joint Stock Company has tried to become the leading tourism enterprise within the region which can create many good impressions on tourists when coming to Ha Tinh. To implement such expectations, the company needs to define a long term strategy.
Via implementing such topic, our group has constructed business strategy for Ha Tinh Tourism Joint Stock Company with the expectation that the strategies will be the guideline for the company to develop strongly and sustain ably. The purpose of topic study and appliability Study and systemize theories on constructing business; make the company understand the importance, decisive role of business strategy on the existence and development of the enterprise; construct process and method to choose the most suitable business strategy for the enterprise. Use argument basis system and models to analyze, assess internal environment, external environment of the company then construct business strategy for the company. Based on learned knowledge, synthesize and accumulate via many subjects, especially the subject of strategic management and marketing management as GAMBA01.V03 GROUP 11 Page 8 BUILDING BUSINESS STRATEGY FOR HTC well as human resource management then recommend development strategy for the company to ensure that: The company must follow given mission The company can give optimal solutions for customers The success of customers is also the success of the company.
Research method: Applied methods in the topic include: Qualitative method: use method of expert and individual interview. Collect, process and analyze data: use data from previous plans and reports of the company. Do research materials of strategic management, marketing …and papers to analyze accurately in term of theory in constructing business strategy. Study reality; make references on achievements of the companies that are successful then combine with theory to have accurate argument, effective recommendations for constructing business strategy.
The group has asked for consultancy from experts in strategic management as follows: 1. Doctor – Ngô Kim Thanh – National Economic University 2. Nguyễn Ánh Ngà - General Director of Phú Tài Đức Group - 3. Nguyễn Việt Sơn – Director of HTC IV.
Report structure Apart from preface, conclusion, list of references, the report includes three chapters: Chapter 1: Argument basis to construct business strategy Chapter 2: analysis of business environment of Ha Tinh Tourism Joint Stock Company Chapter 3. Formation and selection of strategy and strategic solutions for HTC.V03 GROUP 11 Page 9 BUILDING BUSINESS STRATEGY FOR HTC CHAPTER I: ARGUMENT BASIS ON CONSTRUCTING BUSINESS STRATEGY 1. Definition and the role of strategy management 1. Definition of business strategy: The definition of “strategy” originates from military force which originates from the word “strategos” which means the role of the General in military force.
Nowadays, strategy is popularly used and considered as the factor to increase capacity of success and reduce capacity of failure of the enterprise. The followings are some popular definitions: According to Lajred Chandler: ”strategy includes basic and long term targets of enterprise then choose the method and process for action, allocate necessary resources to implement such targets”.(Charles, Hill and Gareth, Jones. 1995 "strategic administration", Washington, page 21) According to Jame Quinn, Dar Mouth University defined: “strategy is the model or plan of an organization to coordinate main targets, policies and action order in a whole”. Strategy for change: Logical Instrumentalism.
Homewood, Illois, Irwin.) According to Micheal Porter: ”strategy is to study to find out a suitable competitive position in an industry, a main operational scope that happens competitive activities.” According to this definition, strategy emphasizes competition. The contribution of Industrial Organization to Strategic Management. New York: Wiley.) Strategic management includes management decisions and actions to define long term effect of the company. Strategic management includes constant activities: consider environment (internal and external environment); build strategy; implement strategy and assess then control strategy .Yiu (1982), “Theory and Research in Strategic Management: Swings of the Pendulum”, Journal of Business.
The role of business strategy management GAMBA01.V03 GROUP 11 Page 10 BUILDING BUSINESS STRATEGY FOR HTC Business strategy has important role for the existence and development of the enterprise. The role of business strategy for enterprise is as follows: Business strategy can help enterprises to realize clearly their own orientation in the future to be the guidelines for all activities of the enterprise. Business strategy plays important role in long term orientation of the enterprise which is the firm basis for implementing operational activities. The lack of strategy or strategy is made unclearly without firm argument then will make activities of enterprise lose orientation; many arisen problems in short term are not connected with long term problems that cannot realize the role of the whole activities in the enterprise.
Business strategy can help enterprise to grasp and make use of business opportunities at the same time have active method to cope with threats and risks on business market.