CAPSTONE PROJECT REPORT BUSINESS STRATEGY OF DONG ANH VIGLACERA JOINT-STOCK COMPANY PERIOD 2020 - 2025 1 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY OF DONG ANH VIGLACERA JOINT-STOCK COMPANY PERIOD 2010 - 2015 FORMULATING AND COMPLETING BUSINESS STRATEGIES OF HA NOI HOUSING DEVELOPMENT AND RESTORATION JSC FOR 2010 - 2020 Group2 No.57: Tran Hop DungTran BUSINESS STRATEGY OF DONG ANH VIGLACERA JOINT-STOCK COMPANY PERIOD 2010 - 2015 We hereby would like to confirm that the content of this thesisCapstone Project Report is made by our full efforts during the study process, include: information collection, study, research and topic selection. To complete this thesis, besides quoted 3 references and data, we were very creative in applying the theoretical knowledge in solving practical issues that we were facing during the study. We also certified that this thesisCapstone Project Report has not been submitted to nay other research or training program. Hanoi, November 15, 2009 Group of authors TABLE OF CONTENT TABLE OF CONTENT.
3 List of Abbreviations.8 List of figures, graphs. Expected outcomes of the thesis.22 THEORETICAL BACKGROUND ON FORMULATION.22 OF ENTERPRISE BUSINESS STRATEGY.Nature of business strategy. Definition of strategy. Importance of business strategy formulation.
Business strategy formulation process. External environment analysis.1 Macro environment analysis.Industry environment analysis (micro). Synthesis of external environment analysis of the company.3 Internal environment analysis. Defining sustainable competitive advantage.63 ANALYSIS OF BUSINESS STRATEGY OF VIGARACERA DONG ANH JOINT- STOCK COMPANY, PERIOD 2010 – 2015.
An overview of Dong Anh Viglacera Joint-Stock Company. History of formulation and development. Chart of Organization and Management. Current business performance of the company.
Introduction about productsProduction and consumption. General features or products. Description of production technology:. External environment analysis.
Macro environment analysis. Industry environment analysis. Internal environment analysis. Identifying the sustainable competitive advantage of the company.104 Conclusion on chapter 2.108 STRATEGY AND SOLUTIONS FOR STRATEGY IMPLEMENTATION.
Strategic development orientation of Dong Anh Viglacera Joint-Stock Company, 2010 -2015:.The company’s objectives during 2010 -2015:. Selection of business strategy for Dong Anh Viglacera Joint-Stock Company. Groups of solutions on strategy implementation. A summary of strategy implementation plans.Designing the organizational structure and strategic controlling system:.1 Designing organizational structure:.2 Strategic controlling system:.3 Strategic Remuneration management:.
130 6 Conclusion of chapter 3. 132 CONCLUSIONS AND RECOMMENDATIONS. 133 List of references. 135 TABLE OF CONTENT.
3 List of Abbreviations. 5 List of figures, graphs. ThesisCapstone Project Report title. ThesisCapstone Project Report significance.
ThesisCapstone Project Report limitations. Expected outcomes of the thesisCapstone Project Report. ThesisCapstone Project Report Structure.15 THEORETICAL BACKGROUND ON FORMULATION.15 OF ENTERPRISE BUSINESS STRATEGY.Nature of business strategy. Definition of strategy.
Importance of business strategy formulation. Business strategy formulation process. External environment analysis.1 Macro environment analysis.Industry environment analysis (micro). SynthesisCapstone Project Report of external environment analysis of the company.3 Internal environment analysis.
Defining sustainable competitive advantage.56 ANALYSIS OF BUSINESS STRATEGY OF VIGARACERA DONG ANH JOINT- STOCK COMPANY, PERIOD 2010 – 2015. An overview of Dong Anh Viglacera Joint-Stock Company. History of formulation and development. Chart of Organization and Management.
Current business performance of the company. Production and consumption. General features or products. Description of production technology:.
External environment analysis. Macro environment analysis. Industry environment analysis. Internal environment analysis.
Identifying the sustainable competitive advantage of the company.100 Conclusion on chapter 2.103 STRATEGY AND SOLUTIONS FOR STRATEGY IMPLEMENTATION. Strategic development orientation of Dong Anh Viglacera Joint-Stock Company, 2010 -2015:. Market forecast: SWOT matrix.The company’s objectives during 2010 -2015:. Selection of business strategy for Dong Anh Viglacera Joint-Stock Company.
Groups of solutions on strategy implementation. A summary of strategy implementation plans.Designing the organizational structure and strategic controlling system:.1 Designing organizational structure:.2 Strategic controlling system:.3 Strategic Remuneration management:.125 Conclusion of chapter 3.127 CONCLUSIONS AND RECOMMENDATIONS.129 List of references.130 9 List of Abbreviations 10 Abbreviations Full text AFTA ASEAN FREE TRADE AREA ASEAN Association of southeast Asian Nations APEC Asia-Pacific Economic Cooperation ASEM The Asia-Europe Meeting CEPT common effective preferential tariff CPI Consumer price index GDP gross domestic product GREAT Gain – Risk – Expense – Achievable – Time JIT Just In Time PEST Political, Economic, Social, and Technological ROA Return On Assets ROE Return On Equity ROS Return On Sales SWOT Strengths – Weaknesses – Opportunities – Threats VIBCA Vietnam Building Ceramic Association WTO World Trade Organization 11 List of tables Table 1.1: Simplified SWOT analysis Frame.2: GREAT Quantitative Matrix.1: Result on some ratios 2005- 2009 (Estimated figures for 2009).2: Current situation of terracotta production and sales.3: Rivals in the segment of high quality and strong brands.4: ANALYZE-COMPARATION THE QUANTITATIVE CRITERIA OF THE ALL CONPETITOR.5: Rivals in segment of average quality.7: Average income of employees.8: Methods of improve education level for the company’s HR.1: SWOT Model of Dong Anh Viglacera Joint-Stock Company.2: Some specific objectives of the company in the period of 2010 - 2015.3: Table of strategic analysis by GREAT model.115 List of figures, graphs Figure 1.1: Strategic planning process.2 : Strategic planning steps.3: Enterprise and influencing factors.4: Five forces Model of M.5: Value chain Model of Michael Porter.6: The process of realizing the sustainable competitive advantage.7: Porter's Generic Strategies.8: Generic Strategies and Industry Forces.1: Organizational chart of the enterprise.2: Summary of production process.3: GDP growth rate of Vietnam from 1999 to 2008.71 12 INTRODUCTORY GENERAL INTRODUCTION 1. ThesisCapstone Project Report title Business strategy of Dong Anh Viglacera joint-stock Company, period 2010 - 2015. Company overview: - Dong Anh Viglacera joint-stock Company is analysis member of Viglacera Corporation.
- Head office: Block 35 - Dong Anh Town - Dong Anh district - Hanoi City - Main business sectors: Production and business of terracotta products, including various categories: - Building and construction bricks: Solid bricks, various hole bricks - Tile for houses and constructions: 22 unit /m2 tile, decorative tiles of various forms and models… - Brick slices background, bricks against hot, - Other bricks decorative v. - Designed Production Capacity : 40.000 product/year - Production Technology : Italian formulation equipments, Tunnel kiln-dry Drier complex, which is now the most advanced and modern technology in Vietnam - The products are mainly distributed in Hanoi and Northern provinces 3. Rationale In the past years, Vietnam’s economy achieved continuous growth and development. That’s the results of the innovation process under the right and effective 13 leadership of our Party and Government.
With a policy of gradually moving Vietnam from a central economy to a market economy, our Party and Government issues many policies and guidelines to create business momentum and a favorable business and investment environment for the strong development of all economic sectors and enterprises Together with the tremendous growth of the whole economy, the industry of building and construction materials also keep growing dramatically. In the integration and globalization tendency, thanks to much new and modern technology in the world applied in this sector, many new building and construction materials products are launched in Vietnamese market. They are of various categories, models such as : ceramic bricks, granite, high quality paving bricks, artificial stone, construction glass… Currently, Vietnam is ranked No 5 in Asia for the production output of ceramics. Terracotta products are traditional products of Vietnam.
Since long time ago, bricks and tiles are still the main building materials for houses and constructions. In previous year, these products also experience continuous growth. Since 1994, after the tunnel kiln-dry technology was launched, it changed the product quality and increased the growth in the national scale. At the moment, there are over 500 production chains of these products all over country.
In the integration and globalization trends, our Government has issues many innovative policies in order to encourage investment for development, which creates more opportunities for business sectors to improve their competitive capacity, in which there is also the terracotta industry. As an enterprise operating in business and production of terracotta products, in such a fast changing social and economic context and a booming of construction 14 materials producers, Dong Anh Viglacera joint-stock Company sees many business opportunities, but also big challenges. In the last few years, Dong Anh Viglacera joint-stock Company has implemented many strategic solutions for the enterprise’s survival and development, such as: intensive investment, technology innovation, advanced technology application , product quality improvement, market expansion and development… However, the enterprise is still facing many challenges of disadvantage changes in the business environment such as: increase in cost of raw materials, petrol, energy; the change in the credit policy by the Government, inflation, and global financial crisis 2008-2009. Right solutions on business and production of the company has full upheld all of its resources and created the stability and sustainable development for the company.
However, the fact showed that, the production and business operation of the company is still at the stage of short-term planning for each year, lacking of investment for a long term strategy. This led to the limitation in efficiently using the resources of the company, which will result in missing some business opportunities and being passive in front of the disadvantage market changes. Because of the above issues, It is really critical and indispensable to build a long-term business strategy as a lodestar guiding the company’s operation in next five years, which will aim at using efficiently resources, taking full advantage of opportunities, overcoming challenges and ensuring the growth and sustainable development of the company. With such an importance and rationale, the author group selected the topic: “Business strategy of Dong Anh Viglacera joint-stock Company, period 2010-2015” 15 to study in our group thesisCapstone Project Report.
Research Objectives Based on the theoretical background on business strategy analysis and its application, we will conduct analysis of environmental factors and their impacts on the business and production performance of Dong Anh Viglacera joint-stock Company in order to recognize the business opportunities and threat analysis. We will also do internal environment analysis to define the strengths, weaknesses, mission, vision, objectives… and we will finally suggest a business strategy for Dong Anh Viglacera joint-stock Company in the next period together with solutions for the feasible and efficient implementation of this business strategy. Research scope Regarding the research scope of this thesisCapstone Project Report, author group: - Use the theory on strategic management and business strategy - Mainly focus on analysis of key factors influencing the company’s performance and review the current situation of company in an aim to build an optimum business and production strategy of Dong Anh Viglacera joint-stock Company during period 2010-2015 6. Research methodology Aiming at an intensive and qualified research outcome, the author group used following research methods: Systematic method, synthesisCapstone Project Report method, logic method, comparative & probability method… to analyze and define the relationship between different issues, review the movement and changing process in terms of time and space.
Then, we can find out suitable interactive approaches to fully employ the opportunities and strengths, improve and reduce the weaknesses, 16 minimize the threats and finally propose optimum solutions during the process of business strategy formulation of the company. Data sources - Usage of primary and secondary data from activities report of Dong Anh Viglacera joint-stock Company. - Usage of secondary data in industrial reports of Vietnam Building Ceramic Association (VIBCA) and Ministry of Construction. - Data on production of terracotta products at Viglacera Corporation - Data from other sourses 8.
ThesisCapstone Project Report significance - Firstly, in this context of globalization and market economy, building development strategy and long-term business strategy is an important and essential task of all enterprises. This thesisCapstone Project Report will offer an overview of current situation and a recommendation on business strategy in long-term. - Secondly, this thesisCapstone Project Report propose a business strategy for the period of 2010-2015 on the basis of internal and external analysis and forecast of business development orientation of the company Thanks to the thorough survey and assessment by a highly experienced group, of which some group members are in the management board of Dong Anh Viglacera joint-stock Company, this thesisCapstone Project Report will surely become the lodestar for business and production operation of Dong Anh Viglacera joint-stock Company in the next period.