Building Business Strategy of CJC 475 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY OF CONSTRUCTION JOINT STOCK COMPANY No 475 (CJC 475) IN PERIOD OF 2011-2015 Group: 12 Class: Gamba 01. Tran Quoc Hoan 2. Tran Chien Thang 3. Nguyen Sy Quynh 4.
Phan Manh Hung VINH, 2011 GROUP 12- GaMBA 01.V03 1 Building Business Strategy of CJC 475 TABLE OF CONTENTS INTRODUCTIONACKNOWLEDGEMENT 4 INTRODUCTION 5 1. The reason for selecting topic 55 2. Research object and scope 65 4. Structure of the capstone project 76 CHAPTER I: THEORETICAL FOUNDATION ABOUT BUILDING 87 BUSINESS STRATEGY 1.
Definition of Strategic management 87 1. The role of Strategic management 87 1. Classification of business strategy 87 1. Corporate level strategy 98 1.
Functional level strategy 98 1. Business unit level strategy 98 1. Process of building strategy 98 1. Vision, mission and core value 98 1.
Analyzing internal environment 12 11 1. Strategy analysis model 13 12 1. Basic competitive strategies 14 13 GROUP 12- GaMBA 01.V03 2 Building Business Strategy of CJC 475 1. Cost leadership strategy 15 14 1.
Product differentiation strategy 16 15 CHAPTER II: ANALYZING FOUNDATION FOR THE 18 ESTABLISHMENT OF BUSINESS STRATEGY FOR 17 CONSTRUCTION JOINT STOCK COMPANY No 475 (CJC 475) 2. Overview about Construction Joint Stock Company No 475 (CJC475) 18 17 2.1 Foundation and development process 18 17 2. Current development orientation 19 18 2. Analyzing external environment of Construction Joint Stock 23 Company No 475 ( CJC 475 ) 21 2.
Analyzing sector environment 25 23 2. Development prospect of the sector 25 23 2.2 Analyzing based on M.Porter’s five force model 27 25 2. Analyzing internal environment 28 27 2. Analyzing resources of Construction Joint Stock Company No 28 475 (CJC475) 27 2.2 SWOT matrix 38 GROUP 12- GaMBA 01.V03 3 Building Business Strategy of CJC 475 36 CHAPTER III: SELECTING BUSINESS STRATEGY IN PERIOD OF 43 2011-2015 FOR CONSTRUCTION JOINT STOCK COMPANY No 475 41 3.
Selecting development strategy (2011-2015) 45 43 3.1 Focused growth strategy 45 43 3. Solutions on human resource 49 47 3.2 Solution on production management 53 51 3.3 Solution on marketing 55 53 3. Conclusion 56 55 REFERENCES 58 57 GROUP 12- GaMBA 01.V03 4 Building Business Strategy of CJC 475 ACKNOWLEDGEMENT To fulfill the program of Global Advanced Master of Business Administration and the capston project report, we have received the instruction, help and useful comments from many people, without whom we cannot reach current results. First of all, we want to show our great gratitude to all lecturers of Ha Noi National University and Griggs University – the US.
Thanks to the enthusiastic teaching of all lecturers, then we have achieved useful knowledge for our current jobs. We also wants to send our gratitude to all members of the program of Global Advanced Master of Business Administration, director board, class management board, educational services division…Thanks to the help of the program, we have been taught in the most favorable condition. The program has created good condition for us to fulfill the given tasks in our working places as well as to ensure learning quality. Last but not least, we want to include our family’s members.
Thanks to their cares, encouragement and helps, we have fulfilled the course without any difficulties and troubles. We have tried our best to fulfill the capston project report by our own knowledge and capacity, however, we cannot avoid making mistakes, then we wish to receive valuable comments from lecturers and all class members. Verification of CJC 475 Group 12 GROUP 12- GaMBA 01.V03 5 Building Business Strategy of CJC 475 BUILDING BUSINESS STRATEGY OF CONSTRUCTION JOINT STOCK COMPANY No 475 (CJC 475) IN PERIOD OF 2011-2015 INTRODUCTION 1. The reason for selecting topic Vietnam integrated the World Trade Organization (WTO).
In the current context of globalization, enterprises are having significant opportunities to build and develop to a new level and facing up with potential threats. To survive and develop, enterprises are required to build suitable business strategy and orientation basing on researching, analyzing external and internal factor environment. As a result, they are able to make use of opportunities, mitigate threats from business environment as well as promote strengths and control weaknesses. Coming from the reality, it is particularly imperative for enterprise to build business strategy.
It helps enterprise have obvious business orientation and goals. Departments and individuals also drive to those general goals. Furthermore, current business environment changes quickly and global competitiveness requires enterprises to be active and creative to adapt to those changes. Therefore, in order to sustainably develop and adapt to ceaselessly fluctuated environment, Construction Joint Stock Company No 475 has to build suitable business strategy as soon as possible.
After researching the conditions of Construction Joint Stock Company No 475, our group decides to select the topic in line with the theme “Building business strategy for Construction Joint Stock Company No 475 in period of 2011 – 2015” for this capstone project.V03 6 Building Business Strategy of CJC 475 2. Research objectives Systematizing theoretical foundation about strategy to analyze factors affecting to the company, set up strategy, and apply to the reality in selected company as Construction Joint Stock Company No 475. From the reality of the company, the group deeply analyzed and introduced development and solutions to apply to reality. As a result, the company will have efficiency and significant contribution to the socio-economic development.
From the applications of the topic, our group has foundation to assess the results of training course in accordance with requirements. Research object and scope Research object of this capstone project is Construction Joint Stock Company direct under the governing of Construction Corporation No 4 with the trading sectors of implementing construction projects nationwide. Research method Each member in group independently proposed the researching and approaching method as well as selected sample enterprise. The group discussed and came to the end of topic in the specific enterprise for the implementation.
Collecting information about enterprise based on requirements of the topic, analyzing and evaluating reality connected closely to hands on experience and gained knowledge of group’s members. Member working at enterprise (Construction Joint Stock Company No 475) clarified and supplied information for the research of group. The group also had appointment and discussed to enterprise to confirm information, understand development orientation and map out guidelines for project.V03 7 Building Business Strategy of CJC 475 The group outlined the research content, consulted viewpoint of managers in enterprise, scientists, colleagues for supplementing and completing. We also introduced specific strategy, completed the main content of topic, and consulted critic ideas of managers and scientists.
After that, we generalized contribution, edited to make report prior to council. Transferring project, consulting for the implementation of enterprise Monitoring, assessing the application of project into reality 5. Structure of the capstone project This capstone project includes three chapters Chapter 1: Theoretical basis about building business strategy Chapter 2: Trading reality of Construction Joint Stock Company No 475 Chapter 3: Building business strategy for Construction Joint Stock Company No 475 in period of 2011 – 2015 GROUP 12- GaMBA 01.V03 8 Building Business Strategy of CJC 475 CHAPTER I: THEORETICAL BASIS ABOUT BUILDING BUSINESS STRATEGY 1. Definition of Strategic management Strategic management is the process researching environments at present as well as in the future, planning goals of organization; proposing, conducting and monitoring the implementation of decisions to obtain predetermined goals in current and coming environment (Garry D.
The role of Strategic management - Planning role: Business strategy helps enterprises indentify their purpose and orientation. It also shows the ways for administrators to consider and determine the time of gaining expected result. - Predicting role: In a fluctuated environment, opportunities as well as threats always happen. Strategy planning process helps administrators analyze environment and propose forecast for suitable strategies.
Thanks for that, administrators have capacity to better catch up with opportunities, make use of opportunities and mitigate threats relating to environment. - Managing role: Business strategy helps administrators use and allocate available resources optimally as well as combine functions in organization effectively to gain given targets.V03 9 Building Business Strategy of CJC 475 1. Classification of business strategy Business strategies are formed in one of three levels: corporate level strategy, functional level strategy and business unit level strategy. In which, business unit level strategy is the main segment placing the competitiveness in sector.
Corporate level strategy Corporate level strategy defines and describes objectives as well as targets of the company. It also defines business activities that the company having been pursuing. Additionally, corporate level strategy creates basic plan to gain general objectives of the company and distributes resources among business activities. Company level strategy is applied for all systems in business.
Functional level strategy: In functional level strategy, people concentrate on supporting company level strategy and other sectors as operating and trading ones. Business –unit- level strategy: Business- unit -level strategy is planned to determine the selection of products or specific market for business activities within the company. In business- unit -level strategy, people have to define the ways of each business unit used to complete their mission and function. Consequently, it will have significant contribution to the efficiency of company level strategy.
Process of building strategy 1. Vision, mission and core value When a company founded, it was attached with prospect in the future. Michael Porter gave explanation for the necessity of prospect in competition “if people do not have obvious outlook about the ways to be entirely new and unique as well as meet requirement of different customers predominantly in comparison with competitors, they will be killed by the features of competition”.V03 10 Building Business Strategy of CJC 475 Theory and reality point out that: any feasible prospect has to demonstrate core value of the company since prospect is formed by core value and guidelines as well as regulations. The core objective is the most basic reason of a company to survive without generalizing in core value establishment.
Each company has their own operating reality and core value. Prospect supply a determination about target but they do not show strategy, orientation or methods for the company to pursue goals. The mission declaration will undertake this task as a key order in the form which organization considers requirements of relating sides. Additionally, mission is foundation to meet prospect.
The mission declaration creates basis for all of strategy planning operations with reference point for assessing strategic objectives of organization. One important phase of setting up mission declaration is to point out the business definition of the company. Thus, it orients to customers, sectors and markets for company as obvious as possible. In order to implement following steps in the formation of mission declaration, it is necessary for the company to have the main goals.
Goals are future state that the company has been trying to pursue or the final result of predetermined actions. Goals have to ensure “(i) the accuracy and measureable feature; (ii) important factors orientation; (iii) challenges and feasibility; (iv) a period of time or accurate time to obtain. The binding in time is very important in view of the fact that the company will gain objectives matching to the programmed time. Finally, positive goals provide tools to assess the enforcement of managers.
Therefore, it is the first and most important factor to build business strategy. PEST model PEST analysis is also macro-environment one to give comprehensive answers to questions what is enterprise facing up? There are four factors in macro- GROUP 12- GaMBA 01.V03 11 Building Business Strategy of CJC 475 environment facing up enterprise namely: political –legal factor; economic factor; social factor; technical – technological factor. These factors not only affect to organization independently but also combine to other. Legal and political factor: influences of legal and political factor on enterprise are more and more significant.
Enterprises have to comply with rules of hire, lending, safety, price, advertising and rules about competition; tax, etc.