GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY FOR HANOI CONSTRUCTION CORPORATION FROM 2011 TO 2015 Class: GaMBA01.X0610 Group Number: 7 Student’s name: 1. DAO XUAN VU 2. NGUYEN THI THUY ANH 3. DAO XUAN HONG 4.
NGUYEN QUYNH CHI HANOI: 2011 Capstone Project Report Gamba01.X0610 - Group No 7 1 ACKNOWLEDGEMENT In the first words, we would like to send our thankfulness to our teachers and professors at the Centre for Educational Technology and Career Development – Higher Education – Vietnam National University and Griggs University for creating the most favorable situation for all trainees during the whole course, especially, when we carrying out this capstone project report. Our group also would like to thank the Board of Directors of HANCORP and related sections for guiding us enthusiastically and providing us with necessary data to complete this report. Despite our best effort in collecting data, the report still has some unavoidable shortcomings. We sincerely hope to receive comments from our professor and peers to make it better.
COMMITMENT Our group commit that this is our special work. Data and figures in this report are accurate, our analysis and conclusions have not been announced in any other scientific research. Hanoi, Nov 22nd 2011 Group Leader Capstone Project Report Gamba01.X0610 - Group No 7 2 TABLE OF CONTENTS ACKNOWLEDGEMENT. Reason for selecting the topic and the meaning of research topic.
Objectives and Scope of the research.1 Objectives of the research.2 Scope of the research.1 method of data collection:.2 Method of data analysis. Structure of topic.9 CHAPTER 1: GENERAL RATIONALE FOR BUILDING BUSINESSS TRATEGIES.1 Overview of Business Strategy 1.1 The concept of strategy.2 Characteristics of the business strategy.3 Role of economic strategies in the modern market economy.2 The process of strategies developing.1 Define the missions and goals of the organization.2 Analyzing the environmental impacts on business.1 External environment of Business.2 Internal business environment.3 Assessing the environmental impact basing on EFE analysis roll comparing EFE and CPM comparing competition one.26 Capstone Project Report Gamba01.2 The strategy chosen tool.28 CHAPTER 2: SITUATIONAL BUSINESS PLANNING STRATEGIC ANALYSIS IN HANOI CONSTRUCTION CORPORATION IN RECENT YEARS.1 Overview of company.1 Company History and Development.2 A few comments on the production of the company's business.1 Status of operation and production and business period from 2006 to 2010:.2 The main targets achieved in 2010:.2 The limitations and the causes.3 Analysis of development strategy state of the HaNoi Construction Corporation.1 The fundamental basis for business strategy.1 Identifying the need for formulating strategies.2 The basis for formulating strategies.2 Analysis of the external business environment.3 Opportunities and Challenges.4 The model evaluated the impact of external factors EFE and CPM.3 Analysis of the internal business environment.1 Analysis of company resources.5 Assessment of internal factors (IFE Matrix).67 CHAPTER 3: STRATEGIC SOLUTIONS AND RECOMMENDATIONS FOR THE PERIOD 2011 to 2015.70 Capstone Project Report Gamba01.1 Identifications of industry development trends in 2011-2015.1 Development Orientation of Sector.2 Company Development Targets.2 Proposed strategies for the HaNoi Construction Corporation general construction company in Hanoi in 2011-2015.87 Capstone Project Report Gamba01.X0610 - Group No 7 5 INTRODUCTION 1. Reason for selecting the topic and the meaning of research topic Today, in the context of fierce competition in all areas of business, in the financial and monetary markets, and in the financial market meltdowns, a business must continue to survive and thrive in the marketplace. The most important things are to monitor the company and to guide it to the most suitable path in order to avoid the frequent change of business environment.
To achieve this, enterprises must identify and plan an intelligent business strategy for the business. Business strategy is the foundation, guideline of the company’s daily activities. Nowadays, enterprises in the construction field are facing many problems from unfavorable factors such as high inflation, rising interest rate, high corporate tax. Thus, businesses need an appropriate strategic planning, which is most suitable with its condition and capacity.
This is the innovation of the research project “Business construction strategies in HANOI construction corporation phase 2011- 2015”, this research is aimed to determine the accurate way for construction companies in this current situation. Objectives and Scope of the research 2.1 Objectives of the research This topic is constructed with the purpose of researching for a business strategy for HANOI Construction Corporation. In addition, the implementation of business strategy research will help companies to improve their weaknesses of the current business, helping to increase profits and expanding the potential markets. Capstone Project Report Gamba01.X0610 - Group No 7 6 With that idea, the selection of the theme “Business construction strategies in HANOI construction corporation phase 2011- 2015" is in order to achieve the following objectives: - Analyzing the impact of environmental factors to the business activities of HANCORP - Identifying strengths, weaknesses, opportunities, and threats from the environment - Developing an appropriate strategy for the business activities of HANCORP during the period 2011 – 2015.
On a limited basis, to overcome weaknesses and to develop the existing strengths in order to improve the efficiency that the company has achieved.2 Scope of the research The internal and external factors affecting business strategy HANCORP Study period: the period of 2008 – 2010 Research area: HANOI Construction Corporation 3.1 Method of data collection: Elementary data collection: Using these methods. - Observing directly activities that occur daily in the company, mainly working process, contacting with partners of the employee in the company. - Interviewing leaders and employees in the company (Sales department, Accounting department and Administration department) to understand the customers, suppliers, other partners involved in economic activities company's business and personnel policies that the company is currently implementing. Also, to interview immediately the company's workers to understand their attitude of the company today.
Capstone Project Report Gamba01.X0610 - Group No 7 7 - Interviewing competitors: The sample size 2 (because the subject was limited and analysis identified only two typical competitors of HANCORP); the sampling method is convenient method - a simple sampling method based on ease of access to interview subjects). In particular, the subjects were interviewed mostly department managers and employees of the company management. - Interviewing customers: With an average sample size (still selected by convenient method), the number of samples is distributed to customers who purchased the company's products. Collect secondary data: by showing from the following sources - The report documents of HANCORP and its competitors of the company.
The departments provide including: Planning, Sales, Marketing manager and Accounting office of the company. - Report of business activity in 2008 to 20,010, a detailed report on factors related to the financial ratios, such as asset structure, capital structure. - Documents on the company's partners, including suppliers, customers, lenders. - Refer to the documentation books, textbooks as well as previous studies on the Internet.2 Method of data analysis Comparison and synthesis method: comparison of achieved targets of company with achieved targets of competitors in the same condition as follow: space, time, economic contents, measurement unit, calculation method, and scale and business conditions.
Inductive method: assessment of small problems, then go to more general conclusions of the issues to be analyzed. Capstone Project Report Gamba01.X0610 - Group No 7 8 SWOT analysis method: the method of key business strategies in order to conclude the strengths and weaknesses within the business as well as the opportunities, risks attached to the external environment but have strong influences to the business. In addition, analytical methods are also used in other matrixes such as the main strategy matrix. These methods will be presented in the theoretical part of the development strategy for the enterprise.
Structure of topic The research includes 3 chapters: - Chapter 1: General rationale for building business strategy - Chapter 2: Situational business planning strategic analysis in Hanoi construction corporation in recent years - Chapter 3: Strategic solutions and recommendations for the period 2009 to 2015 Capstone Project Report Gamba01.X0610 - Group No 7 9 CHAPTER 1: GENERAL RATIONALE FOR BUILDING BUSINESSS TRATEGIES 1.1 Overview of Business Strategy 1.1 The concept of strategy Currently, there are many different definitions of strategy, the underlying reasons for the differences are due to different concept system of organization in general and the different approaches to the organization's strategy in particular. According to Johnson and Scholes, strategies are defined as followings: "Strategy is the determination of the orientation and operation scope of an organization in the long run, in which organizations must gain advantage through the combined resources in a challenging environment, in order to satisfy needs of the market the best and meet the expectations of the agents involved in the organization." In other words, a business strategy is formed to answer the following questions. In the long term, where will business activities take place? (Orientation) In which product market will businesses activities compete? And what is the market scope (Market, Activities Scope) How can business activities be conducted better than competitors in the market? (Advantage) What resources (skills, assets, finance, personnel, technology, brand, etc.…) needed to create competitive advantage? (Resources) What are external environment elements that affect the business’s competitiveness? (Environment) Capstone Project Report Gamba01.X0610 - Group No 7 10 According to Michael Porter (1996), "Strategy is the creation of a balance in the activities of a company. The success of the strategy is based on the implementation many activities and combine them with the core strategy is to "choose which has not been done." Following this approach, strategy is to make a difference in the competition, find and implement which has not been implemented.
The essence of strategy is to build competitive advantage. Strategies exist only in the unique activities. The strategy is to build a unique position and get the value to impact a different group activity.2 Characteristics of the business strategy Along with the economic mobilization, a strategy perspective is always modified and changed in order to ensure its conformity with the business environment. However, at any angle, in any stage, the strategy still has its most common features; it reflects the nature of the business strategy of the businesses.
Within those ones, the most basic features are: Business strategy must clearly determine the basic objectives that must be achieved in each period and it must be consistent in all aspects and all levels of enterprises’ production. Business strategy must ensure the maximum mobilization and promotion of optimal exploitation and utilization of resources in the business (labor, capital, technology) to promote the advantages, and to seize the opportunities to get a competitive edge in the market. - Strategy is a tool for setting up long-term goals of the business. - Business strategies always tent to obtain winning positions in the marketplace.
Capstone Project Report Gamba01.X0610 - Group No 7 11 Strategies are planned and implemented based on the discoveries and usages of business opportunities, the comparative advantage of the businesses to achieve higher economic efficiency. - Business strategies clearly determine the scope of business competition. - Business strategies establish a mutual relationship with the opportunities and challenges outside the company, the strengths and weaknesses of the company that create the company's competitive edge. - Business strategy is a clear determination of economic or non-economic contribution to that the company intends to bring to its shareholders.
In recent years the term “shareholders” have actually played an important role in business strategy of each company. This term ‘shareholders’ includes who have direct or indirect relationships to the process of distributing the profits of the company as well as capital contributions to maintain the company's operations.3 Role of economic strategies in the modern market economy Characteristics of the business environment have a huge impact on the survival and development of enterprises. It has created opportunities for businesses but also put them to face with the new challenges. If the businesses desire to survive, it forces the businesses to find a new management approach, which is the Strategic Management.
In which, the strategy is the basis of this management method.