Business strategy Building of Ha Do Group JSC (2011 – 2015) GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY BUILDING FOR HADO GROUP JOINT STOCK COMPANY (2011 – 2015) Group 11: Do Viet Cuong (Group Leader) Phung Nghia Quan Le Xuan Long Nguyen Quang Duc i Business strategy Building of Ha Do Group JSC (2011 – 2015) HA NOI 2011 Acknowledgement Topic “Building the business strategy of Ha Do Group Company in the period of 2011 – 2015” is the study of master graduation thesiscapstone project in business administration from the University of Griggs associated with Center for technology Training and employment system (ETC) of the Hanoi National University. During the implementation of this topic, I we get a lot of help and guidance of the teacher, teacher of ETC. Besides, the cooperation and provision of the figures of leadership Ha Do Group Company and the staff helped us a lot in the process of implementation of this assignment report. Through this, we would like to sincerely thank everyone who has guided us to this great exercise, thanks to ETC, the valuable cooperation of the leaders, staff of Ha Do Group Company.
Due to our limited experience and knowledge, the project certainly can not avoid certain shortcomings, the glass would teachers consider, evaluate and make suggestions on ways to better our. We show ourare very gratefulness to our friends, colleagues, relatives for their encouragement during this course. Sincerely yours! Group 11 - Class X0410 1. Do Viet Cuong 2.
Phung Nghia Quan 3. Le Xuan Long 4. Nguyen Quang Duc ii Business strategy Building of Ha Do Group JSC (2011 – 2015) TABLE OF CONTENTS Acknowledgement. i TABLE OF CONTENTS.
ii LIST OF ABBREVIATION.vi LIST OF TABLES. vii LIST OF FIGURES, GRAPHS. Rationale of study. Objectives and scope of study.
Scope of study. Analysis of data. 4 BASIC THEOTY OF BULDING BUSINESS STRATEGY OF BUSINESS IN MARKET ECONOMY. DEFINITION OF BUSINESS STRATEGY.
Definition of business strategy. Definition of strategic management. Duties of strategic management. CONTENT OF PROCESS OF BUILDING BUSINESS STRATEGY FOR A BUSINESS.
Strategic vision, mission, objectives. Analysis the external environment. Analysis general environment - PEST. Analysis sector’s environment.3 External Factor Evaluation Matrix (EFE).4 Competitive Profile Matrix (CPM).9 iii Business strategy Building of Ha Do Group JSC (2011 – 2015) 1.
Internal environmen analysis.5 Research & Development resources. Internal Factor Evaluation Matrix (IFE).TOOLS FOR STRATEGIES SELECTION.2 Internal – External matrix(IE). Quantitative Strategic Planning Matrix. 18 ANALYSIS OF HA DO GROUP JOINT-STOCK COMPANY’S FACTUAL SITUATION.
The company’s functions and mission:. Ha Do Group’s structure. Company’s current position. HDG’s position in real estate sector.
External environment analysis.1 Political and legal environment.24 iv Business strategy Building of Ha Do Group JSC (2011 – 2015) 2. Economic environment analysis:. Socio-cultural environment. Five-force model analysis.
Internal environment analysis. Evaluation matrix elements inside (IFE) of the HDG. 47 SELECTION AND CONSTRUCTION OF STRATEGIC BUSINESS FOR HA DO GROUP COMPANY. The goal of the company in 2011-2015.
Selection of strategy:.1 Analysis on SWOT matrix. The internal and external matrix: (IE):. Analysis on SPACE matrix:. Analysis on QSPM matrix:.
The forming of strategy for Ha Do Group Joint Stock Company.1 The strategies on the product development and the market expansion:54 v Business strategy Building of Ha Do Group JSC (2011 – 2015) 3.2 The differentiation product strategy.3 The diversified strategy:. Solutions to the business strategies:. Human resource solution:.60 vi Business strategy Building of Ha Do Group JSC (2011 – 2015) LIST OF ABBREVIATION ETC Center for educational Educational technology Technology & career Career developmentDevelopment HDG Ha Do Group No. Number HADOCO Ha Do Company VNR Vietnam on Revenue STL Song Da – Thang Long Joint stock Company NBB NBB Investment Corporation LCG LICOGI 16 Joint Stock Company NPAT Net profit after tax ROA Return on assets BIDV Bank for Investment and Development of Vietnam Vietcombank Joint-stock Commercial Bank for Foreign Trade of Vietnam VietinBank Vietnam Join-stock Bank for Industry and Trade ACS Auto climbing system TV Television Ad Advertising GDP Gross domestic product WTO World Trade Organization vii Business strategy Building of Ha Do Group JSC (2011 – 2015) LIST OF TABLES Table 2.1: Vietnam’s economic growth rate over several years 22 Table 2.2 Ha Do Group in comparison with others in the same business field.3: Matrix of external environmental assessment of the HDG.4 Competitive Profile Matrix of HDG.5: Human resources data of the company in three years 37 2008, 2009, 2010.6: HDG’s table of Assets and Capital structure.7: Business performance of HDG.
Revenue structure in term of company’s portfolio. Cost structure in term of company’s portfolio.10- The key financial indicators. Evaluation matrix elements inside (IFE) of the HDG.1 : SWOT matrix of Ha Do Group Joint Stock Company .2 The internal and external matrix (IE).3 : SPACE matrix’s factors.4: QSPM matrix for Ha Do Group Joint Stock Company 52 viii Business strategy Building of Ha Do Group JSC (2011 – 2015) LIST OF FIGURES, GRAPHS Figure 1.1: Model of 5 competitive forces.2 Main content of competitor analysis.1: Company’s organizing structure.1:Human resource quality of the company in three years 2008, 2009, 2010 37 Figure 3.1: SPACE matrix of Ha Do Group Joint Stock Company.1: Labor structure of joint stock companies of Ha Do 36 Corporation (2010). ix Business strategy Building of Ha Do Group JSC (2011 – 2015) INTRODUCTION 1.
Rationale of study When our country's economic developed under the centralized planning mechanism, the business has produced as targets from top to bottom. Accordingly, the product consumption has a fixed address. Thus, firms do not care development strategy in the strict sense of the word. However, strategic issues have begun coming into existence and development of enterprises the market economy under the management of the State.
Businesses want to survive and develop in the volatile market and fierce competition in both domestic and abroad markets; they have to determine the long- term goals. Ha Do joint stock group company is trading real estate, mainly in Hanoi, Ho Chi Minh City and some neighboring provinces of Ha Tay,. Over the years , the company has business strategic business objectives, analyzed current operations and the potential for business. Furthermore, Ha Do Group Joint Stock Company also initially analyzes and forecasts the business environment in order to determine the chance for investment, production, consumption and anticipates the risks and threats from the external environment.
However, the building housing business strategy of Ha Do group joint stock Company still has many disadvantages for us to research and resolve. Sales department of the company is not organized reasonably that leads to restriction of business performance. Our country is on the first stage of WTO participation, the economic changes in market economy will affect more or less to the business. Therefore, it is necessary to assess situation correctly and find out effective business strategic solutions to make housing business performance effective.
This problem is essential for company in both the present and future. Starting from the practical knowledge, our group has chosen the topic: "Building the business strategy of Ha Do group joint stock Company (Hado group joint stock Company) for the period 2011-2015” to reach. Objectives and scope of study 1 Group 11 – X0410 Business strategy Building of Ha Do Group JSC (2011 – 2015) 2. Objective Topic: "Building the business strategy of Ha Do group joint stock Company (Hado Group Joint Stock Company) for the period 2011-2015” aims: Identifying important opportunities and threats for real estate business, investing in infrastructure for housing business, real restaurant business, as well as finding estate services, ecotourism and out strengths and weaknesses of the company.
Developing appropriate business strategy for the company in period 2011-2015, to overcome the weaknesses and promote strengths is to take advantage of business opportunities and maintain sustainable and stable development. Scope of study - The scope of study: The company works on many fields: real estate business, construction of civil works engineering, transport, irrigation and hydro- power production and investment and doing power business; designing consultancy of the construction, transportation, irrigation. but from the beginning, the company has identified the real estate business is a key field. To make the company grow, the proper attention to real estate is indispensable.
Moreover, each field of the company has the separate independence. This topic focuses on real estate business. Analysis of data The reports and documents of the company and its competitors. Report of business performance in 2008 -2011, (Planning – Sales department).
Statement of Ha Do joint stock group company in 2010, (Finance – Accounting department). Introduction of capacity profile in Ha Do group joint stock Company (Planning – Business department). The report detailed about the financial ratios, such as asset structure, capital structure. Materials of planning and direction for operation of the company since 2009, (planning department - Sales, Marketing department).
2 Group 11 – X0410 Business strategy Building of Ha Do Group JSC (2011 – 2015) The document about provider, partners, sponsors, (Department of Business Planning, Marketing department). Finding information on the press, television, the Internet. Mostly on internet, with websites: http://hado. Data processing - Method of comparison: comparing business activities of companies with business performance of the competitors - Methods of analysis of trends: analysis, comparing the performance, the business environment of the company over the years.
Thereby, company can turn out the data for the future. - Method of induction: the problems are identified from small details to general conclusion of problem to be analyzed. - Methods of analysis matrix: SWOT Matrix is mainly used in developing strategies to build a set of strategies which can chosen from a combination of strengths and weaknesses in the business as well as opportunities and risks from external environment. These have great impact on businesses.
Besides some other matrixes are used: External factors evaluation matrix (EFE), internal factors evaluation matrix (IFE), SPACE matrix, main strategic matrix, QSPM matrix. The tools, "sensitivity of price / interest level of the difference, matrix" The number of competitivenessses and value of them which will be used in the formulation process. In addition, our group also uses the competitive profile matrix CPM, internal and external matrix (IE) to analyze the company. 3 Group 11 – X0410 Business strategy Building of Ha Do Group JSC (2011 – 2015) CHAPTER 1 BASIC THEOTY OF BULDING BUSINESS STRATEGY OF BUSINESS IN MARKET ECONOMY 1.
DEFINITION OF BUSINESS STRATEGY 1. Definition of business strategy Business strategy is the art of coordinating activities and managing them in order to reach long-term objective of organization. Thereby, we can clarify the basic characteristic of strategy as follow: Business strategy is built based on organization competitiveness to maximize mobilize and associate exploit and use resources (human resources, tangle and entangle asset), with a view to catch opportunities and advantages in competitiveness. Business is reflected in a continuous process from building to organizing, evaluating, testing, adapting strategy.
Definition of strategic management “Strategic management is the art and science of building, carrying out and assessing all decisions to reach its target.” According to Fred R. David: “Strategic management is defined as art and science of formulating implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. As we can see from this definition. Strategic management focus on the combination of administration, marketing, finance – accounting, production, research and development, information system, fields of businesses to gain organization’s achievement “.
Duties of strategic management The process of strategic management should be an orientation supporting organization to overcome the difficulties in business and reaching to a future by its effort and ability. The process of strategic management should support the company to best adapt the long-term changes.