CAPSTONE PROJECT REPORT A BUSINESS STRATEGY OF THE 189 ONE MEMBER LIMITED LIABILITY COMPANY FOR THE PERIOD OF 2012 -2015 Nguyen Thi Van Anh Nguyen Thanh Chung Pham Thanh Hai Vu Minh Hai Bui Thanh Thuy GaMBA01.X0810 H A N O I 2 0 1 1 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT A BUSINESS STRATEGY OF THE 189 ONE MEMBER LIMITED LIABILITY COMPANY FOR THE PERIOD OF 2012 -2015 Group Number: 01 Student’s name: Nguyen Thi Van Anh Nguyen Thanh Chung Pham Thanh Hai Vu Minh Hai Bui Thanh Thuy HA NOI 2011 A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 ACKNOWLEDGMENTS In each path of education, there cannot lack the appearance of teachers who have provided generations of learners with enormous knowledge. With the valuable knowledge transferred from our teachers, we have completed this graduation research project. This graduation project is completed with the support from the teachers of the MBA program provided by the Griggs University – the ETC Center of the Vietnam National University. This is the result of what we have learned from this course.
Our special thanks go to local and international teachers who have participated in teaching the course of Strategic Management and provided us with knowledge and directions for our completion of this graduation project. We believe and hope that this project will be highly valued because of its application and feasibility of the strategy that we have studied because we know “once we have our belief, certainly we will be successful”. Thank you very much. i A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 TABLE OF CONTENT Page Cover page Acknowledgement i Table of content ii List of Tables v List of figures vi Confirmation of the 189 Company vii INTRODUCTION 1 CHAPTER 1: THEORITICAL BACKGROUND FOR RESEARCH, 4 DEVELOPMENT OF A BUSINESS STRATEGY FOR THE 189 ONE MEMBER LIMITED LIABILITY COMPANY 1.
Concepts on strategies and roles of business strategies 4 1. Concepts on strategies and strategic management 4 1. Process for development of strategies 6 1. Roles of business strategies 7 1.
A strategy for market invasion. Business environment analysis 9 1. Macro environment analysis 9 1. Industrial environment analysis 12 1.
Internal environment analysis 14 1. Tools for identification of positions and development of business 16 strategies 1.1 SWOT Matrix 186 Foundation for selection of strategies (TOWS) 18 1.2 A model for selection of business strategies 19 1.3 Methods for assessment of strategic options (QSPM) 1920 1. Identification of duties and strategic targets 2021 1. Development of options for strategies ii A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 1.
Selection of strategies 1. Organization for implementation of the strategy 201 CHAPTER 2: ANALAYSIS OF THE ENVIRONMENT AND REAL 210 SITUATIONS OF BUSINESS AND PRODUCTION OF THE 189 ONE 2122 MEMBER LIMITED LIABILITY COMPANY 2. Overview of the companyGeneral introduction on the company 2. Main business areas of the Company 2422 Functions and duties 2423 2.
Organization and management structure 2423 2. Vision, missions, core values of the Company 2526 2. Analysis of impacts of the business environment on the Company. Social-cultural factors 34 2.
Analysis of the five competitive force in the model provided by 36 Michael Porter in the 189 One Member Limited Liability CompanyAnalysis of the five-force model of M. Competition among companies in the industry 3839 Pressure from suppliers 3940 2. Competition from potential competitors 3940 Pressure from alternative products 4341 2. Alternative products 4351 Pressure from potential competitors entering the industry 5145 2.
Pressure from customers iii A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 2. Pressure from suppliers 5245 2. Analysis of the matrix of external elements (EFE) Pressure from competition among direct competitors 49 2. Internal analysis of the 189 One Member Limited Liability 54 Company 564 2.
Real situations of business and production the 189 One 547 Member Limited Liability Company for the period of 2007 – 2010Analysis of areas in Corporate management 557 2.2 Analysis of real situations of development of business areas at the 189 One Member Limited Liability CompanyAnalysis of core capacity 595 and competitive advantages 6056 2. Competitive advantages of the company based on its core 6159 value 5962 2. Summary of strength, weakness, opportunities, threats of the Company. WeaknessThreats 6470 CHAPTER 3: SELECTION OF A STRATEGY AND SOLUTIONS FOR 6670 IMPLEMENTATION 72 3.
Development of goals 73 3. The SWOT matrix and selection of a strategy 73 3. Strategic solutionsSolutions for implementation of the strategy 75 3. Investment capital solutions Financial and investment solutions 3.
Solutions for market development iv A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 Human resource solutions 3. Solutions for development of products and trade marks Technological solutions 3. Solutions to human resources Marketing solutions 3. Technical and technological solutions Organization solutions 3.
A roadmap for implementation of strategic solutions CONCLUSION REFERENCES LIST OF TABLES Page Table 2.1: Table on overall assessment on strength and weakness of the five 39 competitive forces v A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 Table 2.2: Report on business outcome 39 Table 2.3: Main financial ratios 40 Table 2.4: List of contracts with big value that are on going 4650 Table 2.5: Matrix for assessment of internal elements (IFE) 56 56 Table 3.1: The SWORT matrix 58 Table 3.2: Selection of strategic option 6474 Table 3.3: A roadmap for implementation of strategic solution 18 Table 3.31: A roadmap for implementation of strategic solution LIST OF FIGURES Page vi A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 Figure 1.1: An overall strategic management model 7 Figure 1.2: General environment 10 Figure 1.3: The five-competitive-force model of Michael Porter.5: A model for selection of strategies of MC.6: QSPM matrix 20 23 Figure 2.1: Organizational chart of the company 30 Figure 2.2: GDP grow rates and CPI over years 59 Figure 2.3: Baltic Dry Index vii A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 viii A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 INTRODUCTION Necessity and implication of the research project: In recent years, the economy of Vietnam has seen significant and positive movements towards a market economy. It has continuously developed and expanded its regional and international economic integration. Business companies have always been put in new conditions. In addition to new opportunities, there have been more threats and difficulties than before.
A regular concern of most of companies is how to ensure their continuous development, their competitive power and their victory in a market economy that is full of changes and competition. In a current competitive environment, there exist both domestic and international companies. Multinational groups have had many years of experience with an abundant source of capital. Accordingly, for their survival and development, companies need to be provided with new rules of the game and they should have in their hands business strategies and competitive strategies that are suitable with requirements of the new market.
In that condition, knowledge on modern strategic management, economic theories will serve as guidelines for business activities of managers at all level in management and organization of activities for companies. With that foundation, business strategies play a very important role in deciding the survival and development of companies. In the past years, the maritime transport has seen increasingly strong development which leads to increasing development of the ship building industry. For the 189 One Member Limited Liability Company (under the General Department of Defense Industry) is one of the companies with its long tradition in the field of ship building and repair.
The company has had many advantages in terms of geography, production technology, scientific and technological capacity; capital sources.and thus, their new ship building products and renovated or fixed ones at present and in future are capable of competition in the market. 1 A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 The open economy has brought about many opportunities along with big threats. The ship building industry has been a potential one of the country, thus, competition among companies in this industry has become increasingly severe. To improve its competitive capacity, the company is required to catch up opportunities and understand its strength as well as threats and overcome its weakness.
To that end, the company has to analyze the business environment and its competitive capacity for achievement of the goals that have been set up. The 189 One Member Limited Liability Company is one of the first leading companies in the ship building market in Hai Phong and it has reached to neighboring provinces and the entire country. Gradually, it has gained and implemented ship building contracts and orders from foreign countries. A business strategy helps the company outline its image in future and is a guideline for its future activities for achievement of goals that have been developed.
Development of business strategies helps the Company make good assessment on its competitive capacity as well as that of competitors in the ship building industry so as to retain its current market shares and to seek for potential markets, for its further development and growth. With our desire to apply the knowledge that has been gained from the program in reality, the Group has selected a project: A business strategy for the 189 One Member Limited Liability Company for the period of 2012-2015. Objectives of the research project: The objective of the research project is to develop a business strategy for the 189 One Member Limited Liability Company for the period of 2012-2015. The analysis will help us identify advantages and difficulties, opportunities and threats, core capacity of the Company before deciding some measures for overcoming limitation and development of strategic goals for the Company as well as strategic solutions for implementation of the strategy that has been developed.
Research methods: 2 A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 The research method used in this project is synthesis of statistical data and then comparative analysis of the current situation in the Company; directions on industrial development, business areas along with information on the ship building industry that has been published on mass media for clarification and specification of the research content of this project. Scope and objects of the research project - The object of the research project is The 189 One Member Limited Liability Company for the period of 2012-2015, which is analyzed based on statistical data; real situations of the Company, directions for industrial development, Government policies. - Data on finance and labor and so on of the 189 One Member Limited Liability Company from 2008 to 2010 - Research period: From 10/2011 to 12/2011. Project structure: Apart from the introduction part with overview of objectives, implication, research methods, tables and illustrations, conclusion and references, the project includes three chapters as follows: CHAPTER 1: THEORITICAL FOUNDATION FOR RESEARCH AND DEVELOPMENT OF A BUSINESS STRATEGY FOR THE 189 ONE MEMBER LIMITED LIABILITY COMPANY CHAPTER 2: ANALYSIS OF THE ENVIRONMENT AND REAL SITUATIONS OF PRODUCTION AND BUSINESS OF THE 189 ONE MEMBER LIMITED LIABILITY COMPANY CHAPTER 3: A BUSINESS STRATEGY OF THE 189 ONE MEMBER LIMITED LIABILITY COMPANY AND IMPLEMENTATION SOLUTIONS 3 A business strategy of the 189 One Member Limited Liability Company for the period of 2012 -2015 Chapter 1 THEORITICAL FOUNDATION FOR RESEARCH AND DEVELOPMENT OF A BUSINES STRATEGY FOR THE 189 ONE MEMBER LIMITED LIABILITY COMPANY 1.
Concepts on strategies and roles of business strategies 1. Concepts on strategies.