Capstone report - Group No.11 – GaMbaX0810 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY OF SONG HONG CONSTRUCTION JSC FOR THE PERIOD FROM 2012-2017 Group Number: No 11 Student’s name: Nguyen Xuan Tien Nguyen Huu Thang Duong Anh Minh Vo Duy Quang 1 Capstone report - Group No.X0810 HA NOI 2011 WORDS OF COMMITMENT We, the group of 11 - Class MBAX0810, would commit the theme: "Building the business strategy of Company Song Hong construction period from 2012 to 2017" is the subject of study by our group. The data relating to the company: the company offers, the prospectus filed with the State Securities Commission, the data of public companies registered with the State Securities Commission and other data synthesized from the stock market, real estate market. Until now, this is the first topic to be studied. The team members have no conflict of interest to any company.
Hanoi, 12/2011 Team No. 11 made: Nguyen Xuan Tien (team leader) Nguyen Huu Thang. Duong Anh Minh Vo Duy Quang 2 Capstone report - Group No.X0810 ACKNOWLEDGEMENTS We send our most sincere thanks to the professor's Ph. program MA International Business Administration (MBA) from University Griggs collaboration with ETC have dedicated teaching and guiding them during my training.
This knowledge is the basis needed to help us build this topic as applied to practical work. We especially thank sincerely to the academic council of the University of Griggs has guided us during the study. We would like to thank deeply Construction Company Song Hong - INCOMEX, allows us to research the company and also enthusiastic to provide data for us to complete the task. Hanoi, 12/ 2011 The authors do: Nguyen Xuan Tien (team leader) Nguyen Huu Thang.
Duong Anh Minh Vo Duy Quang 3 Capstone report - Group No.X0810 TABLE OF CONTENTS Trang Sub cover page Commitment Acknowledgements List of symbols and abbreviations List of tables List of Figures, graphs INTRODUCTION 1 1. Reasons to choose the research thesis 1 2. Object and scope of the research 1 3. Purpose of the research thesis 1 4.
Contribution of the thesis 1 CHAPTER I. concept of strategy, role and basic characteristics of strategy 3 1.1 Concept of strategy 3 1.2 Role of business strategy 3 1. Basic characteristics of business strategy 4 1. Construction process of business strategy 10 1.1 Analysis of external environment and internal environment 10 1.1 Analysis of external environment 10 1.1 Analysis of macro environment 10 1.2 Analysis of industry environment 10 1.3 Analysis of competitors 11 1.
Building of external factor evaluation matrix EFE 14 1. Construction of competitive profile matrix (CPM) 15 1. Analysis of internal environment: 16 1.1 Mission, vision, core values 17 4 Capstone report - Group No.2 Analysis of the nature of competitive advantage: 18 1. Construction of internal factor evaluation matrix IEF 20 1.2 Building and analysis of SWOT matrix 21 22 1.
Business strategy option 1. Organization and creation of business strategy 22 1. Evaluation of strategy efficiency 22 CHAPTER II. EXTERNAL ENVIRONMENT ANALYSIS AND 24 CURRENT SITUATION OF BUSINESS PRODUCTION OF SONG HONG CONSTRUCTION CORPORATION JSC - INCOMEX 2.
Overview on Song Hong Construction JSC – INCOMEX.1 Process of formation and development, operation organization 24 structure of INCOMEX 2. Process of formation and development 24 2. Situation of production and business activities in the three recent 26 years 2. Indicators on general market and revenue 26 2.
Indicators of the financial situation 28 2. Indicators of human resources 29 2. Targets contributing to state budget 29 2. Analysis of business environment factors of INCOMEX 30 2.
Analysis of external environment 30 2. Analysis of macro environment - PEST model 30 2.Industry environment analysis – M. Porter’s model of 5 34 competitive forces 2. Analysis of Competitive profile matrix (CPM) 39 2.
Analysis of external factor analysis evaluation matrix (EFE) 48 2.2 Analysis of internal environment of INCOMEX 49 2.1 Mission, vision, core values 49 2.2 Evaluation of operation situation of Incomex in 2008, 2009, 50 2010. 5 Capstone report - Group No.3 INCOMEX’s strongs are 61 2.4 INCOMEX’s weaknesses are 62 2.5 Analysis of internal factor evaluating matrix of INCOMEX 62 CHAPTER III: 64 BUSINESS STRATEGY SELECTION AND CONSTRUCTION SOLUTION OF INCOMEX IN THE PERIOD OF 2012 - 2017 3. Objectives of INCOMEX by 2017 and vision by 2020 64 3. Immediate objectives and targets by 2017: 64 3.2 Objectives of the period of 2018 - 2020: 65 3.
Analysis of nature of sustainable competitive advantage 67 3. Development and recommendations on Incomex’s business 69 strategies 3.1 SWOT matrix construction to select strategies for Incomex 69 3.2 Construction and analysis of IE matrix to choose strategy for 72 Incomex 3. Business strategy selection of Incomex 72 3. 1 Objectives of strategy 73 3.
A number of business strategy solutions of Incomex 75 3.1 Low cost strategy 75 3. Strategy implementation roadmap of Incomex 78 3. Limitations of the study and risks: 79 CONCLUSIONS AND RECOMMENDATIONS 80 1. Summary of Incomex business strategy in the period of 2012 - 2017 80 2.
Recommendations 81 REFERENCES APPENDIX 6 Capstone report - Group No.X0810 Confirmation of research units LIST OF SYMBOLS AND ABBREVIATIONS GRIGGS hoặc Griggs University ………………………. Griggs University, USA VNU-Hanoi ………………………………….National University, Hanoi, Vietnam Incomex.Song Hong Construction SJC ICG………………………………………. Stock of Song Hong Construction SJC PVC……………………………………………….PetroViet Nam Construction SJC PVN……………………………………………….……Vietnam Oil and Gas Group SWOT………………………………………………. Model of competitive analysis (Strengths, Weaknesses, Opportunities and threats) 7 Capstone report - Group No.X0810 LIST OF TABLES Figure 1-1: Analysis of competitors Figure 1-2: EFE Matrix Figure 1-3: Matrix image analysis competition Figure 1-4: Results from a combination of four sustainable competitive criteria Figure 1-5: IFE Matrix Figure 1-6: SWOT analysis summary table Figure 2-1: Some investment projects and large construction have been implemented by INCOMEX Figure 2-2: Summary table of indicators of financial situation Figure 2-3: Inderect HR of the company over the years 2008-2010 Figure 2-4: Contributions budget and the annual social security Figure 2-5: List of supplyer Figure 2-6: Analysis of competitors Figure 2-7: Incomex’s EFE matrix evaluating response response ability for external conditions Figure 2-8: Evaluation of awareness of the internal environment of INCOMEX Figure 3-1: Solutions for all types of market Figure 3-2: Sustainable competitiveness Figure 3-3: SWOT analysis synthesis of Incomex Figure 3-4: IE Matrix Figure 3-5: Business strategy selection 8 Capstone report - Group No.X0810 Figure 3-6: Applied strategy and market Figure 3-7: Roadmap for Strategic LIST OF FIGURES, GRAPHS Figure 1-1: Process of strategic planning Figure 1-2: Business strategy Figure 1-3: Decisive factors of competitiveness in the industry Figure 1-4: The components in the analysis of competitors Figure 2-1: Organizational chart of Incomex Figure 2-2: FDI attracting chart for real estate investment sector Figure 2-3: Supply chart of apartments in Hanoi 9 Capstone report - Group No.
Reasons to choose the research thesis: Vietnam's economy is gradually integrating into regional and the world economy, environment of enterprises is extended but the competition is becoming tougher. This has created business opportunities also contain potential risks that threatening the development of enterprises. In volatile market, ignoring the random element, the affecting factor of the success business is strategyfrom time to time. On the stock market, one of the stocks that investors have chosen to invest, ICG is a stock code with many waves and high liquidity right from the time of listing in April 2009.
It become one of the notable events on the listing market of HNX. Moreover, the necessity to study and provide a report on one enterprise through the aspect of "strategy construction"; and also in the research group there are some members as officials who have been working in SONG HONG CONSTRUCTION CORPORATION JSC -– INCOMEX has applied strategy management that brings success since it’s establishment. Knowing the important of business strategy and some of we are Incomex’s staff , so our group have agreed to decide to select the thesis: "Business strategy construction of Song Hong Construction Corporation JSC - Incomex in the period of 2011 - 2015" with the hope to apply the learned knowledge to contribute to the sustainable development of the Company in the current situation. Content of report has three parts as follow: PART 1: THEORICAL OF STRATEGY MANAGEMENT PART 2: CURRENT SITUATION OF INCOMEX’S BUSINESS PRODUCTION PART 3: BUSINESS STRATEGY SELECTION AND BUSSINESS STRATEGY SOLUTION OF INCOMEX 2012 2017 10 Capstone report - Group No.
Object and scope of the research: - Object: Real estate bBusiness strategy of the company - Scope: Base on research time limitation this report only focus on real estate of Incomex JSC in HanoiWithin the framework of training program and Vietnam market. Purpose of the research thesis: - Systematization of the theoretical issues of strategic construction - Analysis and evaluation of business situation at Song Hong Construction Corporate JSC - Incomex. - Apply strategy management to real estate business strategy of Incomex JSC from 2012 - 2017 4. Research methodology: Primary data source, which is used, source which is used is official information of the business, the prospectus, annual report of the Company, of the other companies in the same industry and the data on public company in the market.
From there, using research methods such as analysis and synthesis of data, logical thinking, deductive. to complete the graduation capstone. Contribution of the thesis: Recommendations on strategicstrategiic solutions for the Company in real estate field during the period of 2011 - 2015. - - Supporting of the company to identify its position in the market and then having plan to develop and implement other strategies for stable, sustainable development 11 Capstone report - Group No.
concept of strategy, role and basic characteristics of strategy 1. Concept of strategy What is strategy? Strategy is a term used to 3 meanings follow: (1) activities program and using resource to gain the goal. (2) is the organization's programs, the need ed source to use to achieve the goal and operating policies of collection, using and resources 12 Capstone report - Group No.X0810 arrangement, (3) determine the long-term goals and selection guidelines and allocate the resources to achieve the goal. As operating, in general, every business must develop its own strategy.
If the company has a clear strategy and everyone in the business knows – captures that strategy, then that business will be successful in the market. In contrast, an enterprise has no clear strategy, sooner or later, will fail in the market. So what is strategy? Understanding in a simpler way, business strategy is a set of plans, methods and objectives in order to bring above-average profits or giving the business a competitive advantage over rivals. So far, there are many views on the strategy.
For example, the views of Alain Threlart, ME Porter, G. But they all revolve around the internal contents such as: "Strategy is art" or "Strategy is a special plan" or "Strategy is a plan, just an art" In summary, the built strategies must help the business achieve the set goals. However, in the process of strategic building and decisions towards the goal is not enough, the strategy must make a roadmap to implement on specific times, associated with certain resources. Role of business strategy Strategic management enables a company to be more active rather than reacting in shaping the future.
It allows a company to create and influence (rather than just reaction) with the environment and thus, controlling its own destiny. The small-business owners, senior managers, presidents and administrators of the profit and non-profit organizations have received and been aware of the benefits of strategic management. To summaries, Strategic management is designed to help organization that pass to adapt to long-term change Strategic management offers the benefits: 13 Capstone report - Group No.X0810 - It allows the identification, prioritization and taking advantage of opportunities. - It gives us an objective perspective on issues of governance.
- It represents the structure of the cooperation and improvement control for operations.