CAPSTONE PROJECT REPORT BUSINESS STRATEGY PLANNING OF DHHS (VIETFOMR) DURING THE PERIOD 2011 – 2016 DU DUC HIEP HOANG ANH DUNG NGO THI KIM HUONG TA DUY SON GAMBA01.X0810 H A N O I 2 0 1 1 1 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS STRATEGY PLANNING OF DHHS (VIETFOMR) DURING THE PERIOD 2011 – 2016 Group Number: 4 Student’s name: Du Duc Hiep Hoang Anh Dung Ngo Thi Kim Huong Ta Duy Son HANOI: 2011 Table of Contents 2 INTRODUCTION. Reason for selecting the topic and the meaning of research topic. Objectives and Scope of the research.1 Objectives of the research.2 Scope of the research.1 method of data collection:.2 Method of data analysis. Structure of topic.8 CHAPTER 1: RATIONALE OF COMPETITIVE STRATEGY PLANNING.
Overview of business strategy. Definition of strategy.2 Characteristics of business strategy.3 The role of business strategy with business activities.1 Identify mission, vision and business objectives:.2 Analysis business environment.1 Cost leadership strategy. 28 CHAPTER 2: ANALYSIS OF BUSINESS ENVIRONMENT AND BUSINESS BUILDING STRATEGIES FOR DHHS COMPANY.1 Overview of Company.1 History and development.2 Organizational structure and product structure of DHHS Company.2 Analysis of company business environment.1 Development orientation and the necessity of business strategy planning.3 The basis for formulating strategy.2 Analysis of external environment.3 Analysis of External Environment by EFE Matrix.3 Analysis of internal environment.3 Scientific and technological resource.5 Internal Factor Evaluation Model.6: The competitiveness of Vietnam in 2011 and 2010.62 CHAPTER 3: SELECTION OF BUSINESS STRATEGY FOR DHHS COMPANY IN THE PERIOD 2011 – 2016.1 Developing orientation of DHHS Company in the period 2011 – 2016.1 Product developing orientation.2 Market orientation and distribution.2 Business strategic selection for DHHS Company.1 Strategic selection by SWOT matrix analysis.2 Strategic selection by QSPM matrix analysis.3 Implementation planning of business strategy and development solutions during the period 2011 – 2016.1 Proposed solution for business strategy in DHHS Company.1 Measures of production.2 Training of human resource.3 Measures of consumer products.2 Roadmap for DHHS business strategy to 2016. Reason for selecting the topic and the meaning of research topic 4 Today, in the context of fierce competition talking place in all areas of business, financial and monetary markets, financial market meltdowns, a business to survive and thrive in the marketplace then the most important and necessary thing is monitoring company to the right path which is suitable with the frequent and sudden change of business environment to adapt highly fitness level, ensuring sustainable firm.
In order to achieve this, nothing more, enterprises must identify and plan an intelligent and reasonable business strategy for the business, because business strategy is the foundation, guideline of every business activity. Therefore, the major problem of enterprises today, including enterprises operating in construction field – a strongly developing field due to the customer trend which is one of 3 essential factors of human: food, accommodation and entertainment place-is building an appropriate business strategy which is suitable with its condition and capacity. However, recognizing the fact from the market that enterprises operating in this sector are mainly follow a general type: supply the formed products for the entire or many construction stages or providing the material. There is a need that no Vietnamese enterprise in this field has exploited.
That is go into production tools directly services workers. In construction area, it is impossible to lack of scaffold and formwork. Almost scaffold and formwork systems today are so bulky and not safety that highly affects to the “slogan” of every construction “SAFETY FIRST”. Understanding this market gap and the real demand, DHHS Joint stock company has implemented in manufacture and business this typical product.
However, it is a brand new product of local market, hence, it is necessary to have the accurate business strategy to make need become the desired demand and consumption of customers. This is the innovation of the research project “Business strategy planning of DHHS (VIETFOMR) during the period 2011 – 2016”, this research is aimed to determine the accurate way for company in this current situation. Objectives and Scope of the research 5 2.1 Objectives of the research This topic is constructed with the purpose of research and business strategies to build and develop for DHHS stock companies in manufacturing scaffolding and formwork. In addition, the implementation of business strategy research will help companies to improve the weaknesses of the current business, and help increase profits and expand markets In that spirit, the selection of the theme "Business strategy planning of DHHS (VIETFOMR) during the period 2011 – 2016" is in order to achieve the following objectives: - Analyze the impact of environmental factors to the business activities of DHHS Joint Stock Company - Identify strengths, weaknesses, opportunities, and threats from the environment - Develop an appropriate strategy for the business activities of DHHS Joint Stock Company during the period 2011 - 2016, on a limited basis, to overcome weaknesses and develop the existing strengths to improve the efficiency that the company has achieved today in order to maintain a continuous development and sustainability.2 Scope of the research The internal and external factors affecting business strategy of DHHS Joint Stock Company.
Study period: the period of 2011 – 2016 Research area: DHHS Joint Stock Company 3.1 method of data collection: Elementary data collection: Using these methods. - Methods for direct observation of activities that occur daily in the company, mainly working process, contacting with partners. of the employee in the company. 6 - Interviews with leaders and employees in the company (Sales, Accounting and Administration) to understand the customers, suppliers, other partners involved in economic activities company's business and personnel policies that the company is implementing.
Also, can interview immediately the company's workers to understand their attitude to the company today. - Interview with competitors: The sample size 2 (because the subject was limited and analysis identified only two typical competitors of DHHS); the sampling method is convenient method - a simple sampling method based on ease of access to interview subjects). In particular, the subjects were interviewed mostly department managers and employees of the company management. - Interview customers: With an average sample size (still selected by convenient method), the number of samples are distributed to customers who purchased the company's products Collect secondary data: By showing from the following sources: - The report documents the DHHS and the competitors of the company.
The departments provide including: Planning, Sales, Marketing Manager and Accounting office of the Company. - Report of business activity in 2008 to 2010, a detailed report on factors related to the financial ratios, such as asset structure, capital structure. - Documents on the company's partners, including suppliers, customers, lenders. - Refer to the documentation books, textbooks as well as previous studies on the Internet.2 Method of data analysis Comparison and synthesis method: Comparison of achieved targets of company with achieved targets of competitors in the same condition as follow: 7 space, time, economic contents, measurement unit, calculation method, and scale and business conditions.
Inductive method: Assessment of small problems, then go to more general conclusions of the issues to be analyzed. SWOT analysis method: the method of key business strategies in order to find out the strengths and weaknesses within the business as well as the opportunities, risks attached to the external environment but have a strong influence to business. In addition, analytical methods are also used in other matrices such as matrix main strategy. These methods will be presented in the theoretical part of the development strategy for the enterprise.
Structure of topic The research includes 3 chapters: Chapter 1: Rationale of competitive strategy planning Chapter 2: Analysis of business environment and business building strategies for DHHS company Chapter 3: Selection of business strategy for DHHS company in the period 2011 – 2016 CHAPTER 1: RATIONALE OF COMPETITIVE STRATEGY PLANNING 1. Overview of business strategy 1. Definition of strategy 8 Today there are many different definitions of strategy, underlying cause is the different conceptual system about organization in general and different approaches to strategy of organization in particular. According to Johnson and Scholes, strategy is defined: “Strategy is the determination of orientation and scope of an organization in a long period, in which organization must gain advantages by combination resources in a challenging environment, to satisfy best the market demand and meet the expectation of factors involved in the organization.” Hence, strategy of an enterprise is formed by these following questions: Where business activity will take place in a long period? (orientation) Which market the business activity will compete and its scope? (market, scope) How can business activity be conducted better than the competitor? (advantage) Which resources (skill, assets, finance, human, technology, brand …) are necessary to make competitive advantages? (resource) What are the external factors affecting the competitive ability of enterprise? (environment) According to Michael Porter (1996), “Strategy is the creation of balance among activities of a company.
The success of strategy is mainly based on the implementation and combination of works. The core of strategy is “choose what has not been done” Under this approach, strategy is to create the difference in competition, find and conduct what has not been done. The essence of strategy is to build competitive advantage; strategy only exists in the unique activities. Strategy is to build a unique position and impact a group of different activities.2 Characteristics of business strategy Together with the movement of business, strategy perspective always moves and changes to enhance its conformity with the business environment.
However, at 9 any angle, in any stage, strategy still has the certain features, which reflects the nature of business strategy of enterprise. The most basic features are: - Business strategy must clearly define the basic objectives should be achieved in each period and thorough in all aspects, all levels of production and business activities of enterprises. - Business strategy must ensure the maximum mobilization and promotion of optimal exploitation and utilization of resources in the business (labor, capital, technique, technology…), promote advantages, and grasp the opportunity to take the competitive edge in the market. - Strategy is a tool for setting up long-term goals of the business.
- Business strategy always has idea for successful attack on the market. Strategies are planed and implemented based on the detection and use of business opportunities, the comparative advantage of the business to achieve higher economic efficiency. - Business strategy clearly defined scope of business competition. - Business strategy establishes a mutual relationship with the opportunities and challenges outside the company, the strengths and weaknesses of the company which created the company’s competitive edge.
- Business strategy is a clearly defined contribution to economical or non- economic that the company intends to bring its shareholders. In recent years, the term shareholders have actually played an important role in business strategy of each company. This term includes all those who have a relationship directly or indirectly to the process of distributing the profits of the company as capital contribution to maintain the company’s operations.3 The role of business strategy with business activities Characteristic of the business environment has a large impact on the survival and development of enterprises. It has created opportunities for businesses but also put the business before the new challenge.
It forces the business if want to survive must find a new management approach, which is the Strategic Management. In 10 particular, the strategy is the basis of this management method. In the modern business environment, strategy plays an increasingly important role for the survival and development of enterprises. That role is reflected: Strategy is a tool represented long-term goals of institution, enterprise.
The specified, documented business goals through strategy will help members in enterprise and organization knows where they want to go, and so what they need to do. This helps businesses achieve their goals more easily. Strategy attached the short-term development objectives in long-term context. In the modern business environment, enterprises have to be flexible to adapt to the environment.