THE BUSINESS STRATEGY OF CAPITAL COMMERCIAL AND INVESTMENT JOINT STOCK COMPANY IN THE PERIOD OF 2021 – 2025 1. ACKNOWLEDGEMENT During 02 past years, with the whole-hearted assistance of teachers as well as staffs of the Center, we have approached many sources of rich information and acquired a lot of useful knowledge from Global Advanced Master of Business Administration of Griggs University – The US; we sincerely thank teachers, specialists, and managerial staffs of GaMBA program performed by Griggs University associated with Center for Educational Training and Career Development (ETC). Thank you for the class’s managerial works (Ms Hien, Ms Diep), who always stand by us during the course and support us to ensure qualifications for attending and completing the program of the Center; Thank all members of M0909 class, the most loveable friends of ours, who mutually share weal and woe during nearly 02-year period towards conquering challenges of Global Advanced Master of Business Administration; Thank our family members and closest ones who always support, console and encourage us in life. Faithfully thank again! 2 TABLE OF CONTENTS Page Acknowledgement.
2 Table of contents. 3 List of figures - tables 5 Preamble. 6 Chapter I: Main argument foundations about building and making the business 9 strategy…….1 Basic concepts about strategy ……….2 Process of the strategic management; classify the strategy and the specific 10 strategies.1 Process of strategic management.2 Classify strategy and specific strategies.1 Strategy of the leading of the cost.2 Strategy of differentiation of the products….3 Strategy of the focus .3 Foundation to make the business strategy of the Company 15 .1 Five-force Model by Micheal 15 Porter .2 Analysis of SWOT (SWOT matrix). 18 Chapter II: Analysis of basis for the establishment of strategy of Capital 22 Investment and Commercial Joint Stock Company (TD Jsc).1 Overview of the company.1 Establishment and development process of the company.2 Outlook, mission and target of the company.4 Personnel capacity and organizational 25 structure.2 Analysis of business environment 3 2.1 Analysis of macro economic environment 27 .2 Competitive environment of the sector 34 ………………….3 Internal analysis of the company 39 .1 Competence analysis of the company .3 Policy in human resources.2 Analysis of competitive capacity of the Company, core capacity of the 43 company.
Synthesize SWOT matrix. 45 Chapter III: Select the business strategy of Capital Commercial and Investment Joint Stock Company in the period of 2011 – 47 2015. Orientation of business development strategy of the company 47. Select the business strategy .1 Solutions of the personnel – human resource.
Solutions of the finance. Solutions of Marketing. Solutions of investment .4 Roadmap of implementing the plan for business development strategy in the period of 2011 – 2015 52. 55 List of references.
56 4 LIST OF FIGURES Figures Content Page Table of general strategies in the model of 5 competitive forces of Figure 1.1 13 Michael Porter Figure 1.2 Diagram reflects the characteristics of SWOT analysis 16 Figure 1.3 Five-force Model by Micheal Porter 19 Figure 2.1 Organizational Chart of TD Jsc 26 Figure 2.2 PEST model 27 Figure 2.3 GDP growth of Vietnam 29 LIST OF TABLES Table Content Page Table 1.1 Quantitative Matrix according to GREAT model 20 Table 2.1 Business results 23 Education level and competence of staffs and officers in the Table 2.3 Opportunities and challenges for TD Jsc 34 Table 2.4 Opportunities and challenges in the sectorof TD Jsc 39 Table 2.5 Some indicators for evaluating finance and business results 40 Table 2.6 Strong points and weak points of the financial resources 41 Table 2.7 Strong and weak points of technical – material basis 41 Summary of SWOT analysis and strategic orientation for the TD Table 2.1 Table of analysis of strategy under GREAT model 48 Table 3.2 Roadmap of implementing the plan for the strategy 54 LIST OF ABBREVIATIONS Capital Investment and Commercial Joint Stock Company TD Jsc 5 PREAMBLE 1. General context, the urgency and significance of the topic Our country’s economy is running and developing toward the market economy under the State’s management and the integration trend into the world economy. With incentive policies to create facilities for the development of economic sectors of the State, many small and medium-sized enterprises have been established and had considerable contributions to the country’s development. In order to exist and develop, each enterprise has to prepare strategies suitable to the general trend of integration and development of the market.
Starting from that practice, building the business strategy is extremely necessary to each enterprise. It helps enterprises have clear orientations, business objectives and direct sections, individuals to the common objective of enterprises, avoid partial problems, resources’ distraction which will weaken enterprises. The business environment now changes very fast; the global competition requires enterprises to always take the initiative, be creative to adjust with those changes. In order to develop solidly, enterprises depend much on management and establishment of business strategies.
Real estate is a particular field of business, requires a lot of special conditions such as: strong financial source, ability of capital mobilization, good relationship with specialized authorities, orientation as well as long-term vision of the enterprise’s leaders. Real estate business operations are cyclical; therefore, it contains huge risk but going with huge risks is very attractive profit, so this field of business increasingly attracts many enterprises to participate in. Vietnam in general and Hanoi City in particular is developing fast, the need of real estate productions such as: house, office buildings, shopping centers, hotels, etc… is very big, this is an opportunity and a big challenge for enterprises trading in real estate. Capital Commercial and Investment Joint Stock Company (TD Jsc) was officially established in 2004 and run in the field of real estate trading and investment since 2008.
During its development, the Company had a lot of distinct advancements and had been 6 increasingly prestigious on the market. However, apart from successes, the Company’s operations still contain many forthcomings; i., it hasn’t used its resources as well as strengths effectively to pass over other peers. Business results haven’t still corresponded with the available potentialities of the Company. In order to develop firmly in the future, the urgent matter is TD Jsc should define a stable, long-term and flexible business strategy facing to changes of the business environment, meeting the need of urbanization, higher and higher need of housing, contributing to the career of industrialization and modernization of the country.
In order to develop TD Jsc to become a Company strong in the field of real estate in the current competitive economy, our group selects the topic “Build the business strategy of Capital Commercial and Investment in the period of 2011-2015” to be the capstone of Master of Business Administration. We hope that this topic will be an important reference including the practical significance for building and implementing the strategy of TD Jsc. Research purpose Research purpose of the topic is how to give the following issues in the current economy with severe competition: - Systemize and supplement main arguments about the business strategy of enterprises trading in real estate. - Evaluate the current status of building the business strategy of TD Jsc, indicate weaknesses as well as their causes in building the business strategy of TD Jsc.
- Suggest solutions to build a scientific and feasible business strategy in the period of 2011 – 2015 of TD Jsc. Implementation method During research, the topic uses methods of analysis and summary, statistics, information collection, specialist, comparison, industry analysis and enterprise analysis in order to gather and analyze theoretical and practical issues related to build the business strategy of enterprises trading in housing. Research object Research object of the topic includes theoretical and practical issues in building the 7 business strategy of Capital Investment and Commercial Joint Stock Company in the field of real estate. Research scope of the topic: + Focus on researching main argument foundations about the business strategy of TD Jsc in the field of real estate.
+ Focus on researching the practice of the business strategy of TD Jsc in the field of real estate. + Solutions to build the business strategy in the period of 2011-2015 suggested applying to TD Jsc. The capstone’s structure: The capstone is divided into 3 chapters: Chapter I: Main argument foundations about building and making the business strategy Chapter II: Analysis of basis for the establishment of strategy of Capital Investment and Commercial Joint Stock Company (TD Jsc). Chapter III: Select the business strategy of Capital Commercial and Investment Joint Stock Company in the period of 2011 – 2015 8 Chapter I: Main argument foundations about building and making the business strategy 1.
Basic concepts about strategy Strategic concept is from ancient Greece age. This term is originated deeply from the military, from “strategies” or the role of General in the military. Through the time, until now there are many definitions of strategy, each definition has less or more difference depending on the concept of each author. After that, many authors developed new tactical concepts related to business operation, and by now, there is no the only concept and also no general concept about this term.
Mentioned below could be some most used concepts: “A strategy is a model or a plan of combining the big targets, large policies and the operation series of an organization to become an overall with close structure. A strategy which is formed well will help to arrange and define the clear position of the resources in an organization into the only and independent position basing on the inner advantages and disadvantage, foreseeing the changes in the environment and stimulated by the intelligent competitors” (Strategic process, Henry Mintzberg & James Brian Quinn, page 5); or M.Porter thinks that: ‘‘Strategy is the art of building the firm competitive advantages to defense’’; and General Ailleret thinks that: ‘‘Strategy is defining the methods and the application means to reach the defined targets through the policies’’. Although there are many different concepts, all are agreed about the content that: ‘‘Business strategy reflects the activities of the business unit including the process of making the targets and the used methods, means to reach the targets“. With the above concept, we can see the benefits of business strategy that are: - Help the enterprises to see clearly the orientation of the unit in the future, realize the opportunities and the threats possible to happen, aiming at helping the enterprises to make the proper, suitable decisions with the environment, ensuring the business production to reach the highest effectiveness.
- Help the enterprises to create the better business strategies through using the approach method to the system, create the foundation to increase the connection and the attachment of the management staff in implementing the enterprise target. 9 - Business strategy helps to increase sales revenue, increase the labor productivity and management effectiveness, avoid the financial risks, increase the ability of prevention, prevent the difficult problems of the enterprise. Process of the strategic management, classify the strategy and the specific strategies 1. Process of strategic management: In the past, decision of business strategy was implemented once for a long time and it is the task of the high-ranking administration.
Currently, the process of strategic management is a frequent, continuous process and a process of requiring the participation of all members in the enterprise, it includes the followed contents: Analysis of business environment Analysis of business environment aims at finding out the opportunities, threats, strengths, weaknesses of the enterprise. Management of business strategy is taking advantage of and promoting the strengths, overcoming the weaknesses in exploiting the opportunities and avoiding the threats from the environment. Business environment of the enterprise is divided into external and internal environment. Analysis of internal environment: it is analysis of the influence of the external factors on the business production activities of the enterprise to realize the threats to avoid; the opportunities to take advantage.