CAPSTONE PROJECT REPORT BUSINESS STRATEGY ON CERAMIC TILES AT VIGLACERA HANOI J., FOR THE PERIOD FROM 2010 TO 2015 ACKNOWLEDGEMENTS We trust that this capstone project has been prepared with the best efforts by all of us as author member in studying & selecting capstone project and method of analysis, and base on other documents (with citations attached ). We trust that this capstone project has not submitted to any study or training programma. Ha Noi, October 20, 2009 Group of Authors Mai Cong Ho Le Manh Quang 1 Nguyen Viet Trung Vu Thi Thuy Ha TABLE OF CONTENTS SUBPAGE COVER PAGE Acknowledgements 2 Table of contents 3 List of Abbreviations 6 List of Tables 7 List of figures, graphs 8 INTRODUCTION 9 1. The name of the topic 9 2.
The reason to choose the topic 9 3. Scope of research 10 5. Source of the research data 11 7. The expected result 11 8.
The limitation of the capstone project 12 9. Main content of the capstone project 12 CHAPTER 1: THE THEORETICAL BASIS TO ESTABLISH BUSINESS 13 STRATEGY FOR THE COMPANY 1. The nature of business strategy 13 1. The concept of the strategy 13 1.
The meaning of establish the business strategy 16 1. Process of establish the business strategy 16 1. Analyze the external environment of the company 19 1. Analysis of macro environment 19 1.
Analyze the industry environment. Analyze generally the internal environment 25 1. Analyze the internal environment of the company 25 1. Research and development (R&D.
Analyze generally the internal environment through value chain 28 1. Establish and choose the business strategy 30 1. Analyze SWOT matrix 30 3 1.2 The basic business strategies in the practice 30 CHAPTER 2: ANALYZE THE REAL SITUATION OF BUSINESS 45 STRATEGY ON CERAMIC TILES AT VIGLACERA HANOI JSC 2. Introduction about the company 45 2.
History of development - Vision of the company 45 2. Managing structure of the company 47 2. Production and business operations of the company 48 2. Introdoction about the products 49 2.
General characteristics of the products 49 2. Summarizing producing techlonogy 50 2. Customer service and additional products 51 2. External environment analysis 52 2.
Macro environmental analysis 52 2. Analyze the industry environment 60 2. Analyze the internal environment 70 2. Value chain analysis 70 2.
Determine stable business advantage of the company 77 CHAPTER 3: ESTABLISH BUSINESS STRATEGY ON CERAMIC 79 TILES AT VIGLACERA HANOI JSC, THE PERIOD FR. Choose the business strategy on ceramic title for the company 79 3. Using the SWOT matrix synthesis 79 3. Select the business strategy 83 3.
Anticipate the result of the strategy 85 3. Groups of solution to impplement the strategy 86 3. Summaze the plan to impplement the strategy 88 3. Check 93 CONCLUSION AND RECOMMENDATIONS 94 REFERENCES 96 4 APPENDICES 98 LIST OF ABBREVIATIONS Abbreviations Full names AFTA ASEAN Free Trade Area ASEAN Association of South-East Asian Nations APEC Asia – Pacific Economic Cooperation Forum ASEM The Asia-Europe Meeting CEPT Common Effective Preferential Tariff CPI Consumer Price Index GDP Gross Domestic Product GREAT Gain – Risk – Expense – Achiveble - Time JIT Just In Time 5 JSC Joint Stock Company PEST Polictics – Economy – Society – Techlonogy ROA Return on total assets ROE Return on common equyty ROS Return on sales SWOT Strengths – Weaknesses – Opporturnities – Threats VIBCA Vietnam Building Ceramic Assosiation WTO World Trade Organization LIST OF TABLES No Names Page 1.1 SWOT Analysis minimalist framework 30 1.2 General Strategies of M.3 Compare the characteristics of the general strategies 42 1.4 Quantitative matrix according to the GREAT criteria 43 2.1 The result of some criteria (2005-2009) 48 2.2 Reduction Tarif of ceramic tiles when joining AFTA 59 2.3 Situation of production and consumption of ceramic tiles 61 2.4 The competitors in segmenting high quality market 63 2.5 The competitors in segmenting average quality market 64 6 2.6 Investigating consumming trends of ceramic tiles 68 2.7 Quality of labor in 2008 71 2.8 Average income per labor 72 2.9 Forms to improve company's human resources 73 3.1 SWOT model of Viglacera Hanoi Company 82 3.2 Strategic analysis according to the GREAT model 84 3.3 Some objectives of the Company period 2010 – 2015 88 LIST OF FIGURES, GRAPHS No Name of figures, diagram, graph Page 1.1 Process of managing the strategy 15 1.2 Procedures of determining strategy 17 1.3 Corporate and factors related 18 1.4 Model of five competiors 23 1.5 Model of value chain of M.6 The process of identifying sustainable competitive advantage 29 2.1 Organization structure of the company 47 2.2 Brief diagram of manufacturing techlonogy 50 2.3 Chart of GDP growth of Vietnam in 1999 - 2008 53 7 2.4 Market share Diagram 66 3.2 Chart of growth in the period 2010-2015 89 INTRODUCTION 1.
The name of the topic BUSINESS STRATEGY ON CERAMIC TILES AT VIGLACERA HANOI J.C, FOR THE PERIOD FROM 2010 TO 2015 2. The reason to choose the topic World-wide intention and integration are the current indispendable trends. Our Viet Nam has implemented world-wide integration to develop the country economics , such as: signing agreements between Viet Nam – United Stated of America, ASEAN, APEC, ASEM, WTO,…and other both-parties or multi-parties agreements. During this worl-wide integration, our Government has launched a lot of new regulations or 8 performs to encourage development investment, to improve the competion by and between economic industries, including construction material industry.
As one of the companies , having business operation in manufacturing and trading construction materials Viglacera Ha Noi JSC has faced to very fast social- economic changes and industry hard competition. For the past time, the Company had faced to many disadvantages in increasing material price or Government credit policies, especially world-wide economic crisis in 2008-2009, even the Company had tried the best efforts to survive and develop famous trade mark, such as renew technology, improve product quality, expand business market share….Business policies on manufacturing and trading applied by the Company had minimized bad effect to its business and encouraged all corporate resources for stable operation and development. However, the Company business budgets had prepared for short-term one calendar year without any long-term business strategy. This is to minimize effective by corporate resources, fail good business chance,and face hardly to market changes.
From the fact we can see that the definition of business strategy on effective management of all corporate resources to minimize risks and to seize good opportunities is very important task for the Company at the current situation when the economic world-wide crisis is going to finish and international and Vietnamese economy is have been recovering. Based on this concept, group of authors decided to select this capstone project under the name of “Business strategy on ceramic tiles in Viglacera Ha Noi JSC for period from 2010 to 2015 “ to study and make it as capstone project report for our author group and for the Company. Research purposes Based on studying theory of business strategy, we have analysing environment effects imposed on Viglacera Ha Noi JSC, seizing opportunities or risks, certifying 9 actual Company situation with the strong or weak points inside the Company in order to determine Company targets, to recommend a business strategy for the next period and to set-up its implementation plan. Scope of research Within this capstone project limitation, author group can do the followings: - To use theory of strategic management and business strategy.
- To focus on analysing main issues effected to the Company business to set-up the most effective and feasible business strategy on manafacturing and trading ceramic tiles from now to 2015. Research methodology Willing to achieve good result, author group has used method of studying, systematic methor, general method, logical method, statistic and comparison method… to analyse and define the relations, to check operation period changed with time and places. Basing on it we have found out reasonable methods to explore the most of opportunities and strong points , to improve the weak points , to minimize the risks and to recommend the best solutions related to setting up the Company business strategy. Source of the research data The following data have been used during this Topic’s preparation: - Reports on business operation of Viglacera Ha Noi JSC.
- Reports of Vietnam Buiding Ceramic Association (VIBCA). The expected result First of all, in the current situation of world-wide intergration and market economy conditions, setting up the best business strategy is very important task for any 10 company. This capstone project is as a report summarised the Company actual operation and recommendation for a business strategy in the future. Secondly, the capstone project gives a business strategy for period from 2010 to 2015 based on analysing internal Company operation and outside environment to focus business development trend of the Company.
Because of investigating and certifying actual Company operation , and writing by the persons involved in the Company actual implementation, the Business strategy mentioned in this capstone project can be considered as guideline for manufacturing and trading business of Viglacera Ha Noi JSC in the next years. Some results can be reached as below: - Define the theory of business strategy applied for the Company ceramic manufacturing and trading operation. - Ceritfy actual operation and set-up business strategy and resolution of implementation for Viglacera Ha Noi JSC in period from 2010 to 2015. Limitation of the capstone project Because of definition of the capstone project to study mainly manufacturing and trading business of Viglacera Ha Noi JSC , so group of authors does not mention other Company business here.
As investigation of figures and data inccurred in 5 years ago and for next 5 years, this capstone project can give the overall trend of business strategy only and does not recommend any plan in details. Main content of the capstone project This capstone project consists of Introduction, 3 Chapters and Conclusion & Recommendation as below: 11 CHAPTER 1: THE THEORETICAL BASIS TO ESTABLISH BUSINESS STRATEGY FOR THE COMPANY CHAPTER 2: ANALYZE THE REAL SITUATION OF BUSINESS STRATEGY ON CERAMIC TILES IN VIGLACERA HANOI JOINT STOCK COMPANY CHAPTER 3: ESTABLISH BUSINESS STRATEGY ON CERAMIC TILES IN VIGLACERA HANOI J.C, THE PERIOD FROM 2010 TO 2015 Author group has tried the best to finish the capstone project ; However, causing by limitation of time and capstone project’s scope , the capstone project can have some mistake or unsatisfy. Author group appreciates highly if you have any comment for capstone project’s improvement in order to support the Company in setting up the best business strategy in next 5 year. CHAPTER 1: THE THEORETICAL BASIS TO ESTABLISH BUSINESS STRATEGY FOR THE COMPANY 1.
The nature of business strategy 1. The concept of the strategy Business strategy had been long time ago and has the meaning as “ Science on definition and management of corporate operations” (by Webster’s New World). This term has resource from military. Day by day when economy has been developed militaty term is used more in business.
There is a lot of definitions of strategy. We can introduce some as followings.: 12 - “strategy is a long trend and a long scope of work of corporation in order to seize competitive opportunity for corporation by determining its resources in changeable environment in compliance with market demand and in satisfaction of concerned parties’s hopes. , 1999, Exploring Corporate Strategy. Prentice Hall Europe) - “strategy is one of complicated actions in order to mobilize corporate resources to achieve a determined target”.
We know that in all definitions of policy there is some word with different meaning. According to Mr.Mintzberg, there is 5 words (5P) : Plan, Partern, Position, Perspective, Ploy. Until now, Plan is an important part in definition of business strategy. Alfred Chadler (Harvard University) thinks that “ strategy is to determine long –term corporate targets , to select method or plan of implementation and distribution resources necessary for achieving that taarget”.