GRIGGS UNIVERSITY GAMBA X0710 CLASS TOPIC REPORT BUILDING BUSINESS STRATEGY FOR SONG DA THANG LONG FOUNDATION JOINT STOCK COMPANY TO 2016, VISION 2020 Group: 11 Members: 1. Nguyen Van Khoi 2. Đao Trung Dung 3. Nguyen Đinh Hung 4.
Nguyen Hoa Thuan Ha Noi, December /2011 GaMBA01. X0710 – Group 11 Trang 1 / 91 Table of contents THE INITIAL. Theory of business strategy to Enterprise06. Some definitions of Strategy.
The basic features of business strategy. The process of developing strateg. The model of analyzing external environment. 5 competitive forces model - Industry Analysis.
Model of analyzing inside enterprise. Sustainable competitive advantage of enterprise. The EFE matrix and IFE matrix , image competition matrix. Image competition matrix.
The overall competitive strategies. Model of analyzing and choosing strategy by the weight method. Leading cost strategy. Product differentiation strategy.
Selection and strategic decisions.25 CHAPTER 2: ANALYSIS ON THE REAL CONDITIONS OF SONG DA THANG LONG FOUNDATION JOINT STOCK COMPANY 2. Generall overview of Song Da Thang Long JSC. Formation and development process. Business fields of the company.
The management structure. Vision, mission and objective of the company to 2016. Strategic objectives until 2016 and 2020. An analysis of the external environment of Thang Long Foundation Joint Stock Company (TL JSC).
Macro environment analysis. An analysis on the sector’s environment. The internal analysis of Thang Long Foundation JSC. Value – chain model.
Competitive advantages of Song Da Thang Long Foundation JSC.5 SWOT Matrix Analysis of Song Da Thang Long Foundation JSC. Selecting a business strategy for Song Da Thang Long Foundation JSC by weighting method.65 CHAPTER 3: RECOMMENDATIONS AND CONCLUSION 3. Solutions for successful implementation of selected strategies. Enhancing and putting more investment into both quantity and quality of construction equipment and machinery.
Optimizing management process, making contribution to cost reduce and quality raising. Expanding construction and developing human resource with advanced management capacity and skilled technical. Ensuring adequate business funding and calculating optimal capital structure for production and business. Subcontracting capital mobilization and providers.
Recommendations, limitations and directions for further research. Directions for further research.Theory of business strategy to Enterprise. Some definitions of Strategy. The basic features of business strategy.
The process of developing strateg. The model of analyzing external environment. 5 competitive forces model - Industry Analysis. model of analyzing inside enterprise.
Sustainable competitive advantage of enterprise. General analysis model (SWOT). The overall competitive strategies. Leading cost strategy.
Product differentiation strategy. Model of analyzing and choosing strategy by the weight method.21 CHAPTER 2: ANALYSIS ON THE REAL CONDITIONS OF SONG DA THANG LONG FOUNDATION JOINT STOCK COMPANY 2. Generall overview of Song Da Thang Long Joint Stock Company. Formation and development process…………………………………………….
Business fields of the company……………………………………………………24 2. The management structure…. Vision, mission and objective of the company to 2016………………………. Strategic objectives until 2016 and 2020…………………………………….
An analysis of the external environment of Thang Long Foundation Joint Stock Company (TL JSC)………………………………………………………………28 2. Macro environment analysis. An analysis on the sector’s environment ……………………………………. The internal analysis of Thang Long Foundation JSC …….
Value – chain model ……………………………………………………………. Competitive advantages of Song Da Thang Long JSC………………………50 GaMBA01.5 SWOT Matrix Analysis of Song Da Thang Long Foundation Joint Stock Company (JSC). Selecting a business strategy for Song Da Thang Long Foundation JSC by weighting method……………………….……………………………………………………62 CHAPTER 3: RECOMMENDATIONS AND CONCLUSION 3. Solutions for successful implementation of selected strategies.
Enhancing and putting more investment into both quantity and quality of construction equipment andmachinery…………………………………………………. Optimizing management process, making contribution to cost reduce and quality raising…………………………………………………………. Expanding construction and developing human resource with advanced management capacity and skilled technical ………………………………. Ensuring adequate business funding and calculating optimal capital structure for production and business….
Recommendations, limitations and directions for further research…. Directions for further research……………………………………………. X0710 – Group 11 Trang 6 / 91 GaMBA01. X0710 – Group 11 Trang 7 / 91 THE INITIAL In recent years, in term of business, together with strong development of economy, many enterprises are found and gradually assert their role.
However, in business activities, especially, in the context of marketing economy, it is essential for businesses to constantly reform, strengthen ability of responding to market. Businesses need to clearly determine where they want to go? And how to go? Therefore, they have to well set up and implement business strategies. An adequate business strategy will guarantee enterprise’s existence, long and stainable development, achieving their goals. However, business strategy’s creation and implement in many Vietnamese business, in general, and in constructing business, in particular, is limited, moreover, a lot of businesses are lack of knowledge and facility to access the new.
Song Da Thang Long Foundation Joint- stock company (JSC) is a young company, hence, the company’s marketing activities have not well been concerned and researched. New business strategy has just been creation and carrying out annual business strategy. But "medium term plans" and "long term plans" is often sketchy, lack of science, sometimes arbitrary, voluntarism and difficult to meet market’s requirements. It has not assessed impacts from inside business to outside business, determined potentials in master relationship to see strong points and weak points of the company, identify opportunities and challenges of market, yet.
With high pining for applying studied knowledge into practice at the company where one member of our group is working for. Yet, the theme “setting up business strategy for Song Da Thang Foundation Long joint-stock company JSC to 2016, vision 2020” is selected. For result of limited time and students, our group just focuses on researching, analyzing and setting up business strategy for the field: “foundation implement and treatment”- one of the main business activities of the Company. X0710 – Group 11 Trang 8 / 91 CHAPTER 1 RATIONALE 1.
Theory of business strategy to Enterprise 1. Some definitions of Strategy “Strategy” is a term derived from the Greek- "Strategos", used in military, Clazevit – a military theorist in modern era said that military strategy is the art of monitoring at advantage position. Edward Mead Earle historian described the strategy is "The Art of controlling and using resource of a nation or a coalition of nations to ensure and increase the efficiency of its essential interests”. Since the 60th decade, the twentieth century, the strategy was applied in business and the term "Business Strategy" was born.
The concept of business strategy has developed over time and human beings have approached it in many different ways. There are a lot of such definitions of strategy as: Identifying of objective, long-term fundamental purpose of enterprises and the applying of a chain of actions as well as the allocation of essential resources to implement this goal (Chandler, 1962). The strategy is plan of controlling using organizational resource of human, property, finance. to improve and secure its vital interests.
TKenneth Andrews was the first person who gave these prominent ideas in the classic book “The Concept of Corporate Strategy”. From his point of view, strategy is what an organization must do basing on their strengths and weaknesses in the context of having both opportunities and challenges. The basic features of business strategy - Strategy clearly identifies the basic targets, business directions which need to be achieved in each period and thoroughly complete in the fields of business administration. The orientation of the strategy will ensure business to constantly and stainablystainable develop in the often alternate business environment.
- Business strategy just outlines the direction of operating the business in the long term, the business’s framework in the future. Business practice requires GaMBA01. X0710 – Group 11 Trang 9 / 91 combining strategic objectives with economic objectives, considers, adjustments to suit business environment and condition to ensure business’s efficiency and overcome difference resulted from the strategic orientation. - Business strategy is built on basis of business competitive advantage to ensure maximum mobilization and good combination with the exploitation and using resources, core competence of enterprises at the present and in the future to promote the advantages, catch the opportunity to gain competitive advantage.
- Business strategy is reflected in a constant process of construction, implementation, evaluation, testing, and strategy adjustment. - Business strategy always trends to win in the competition and is formed, implemented based on detecting and taking advantage of business opportunities, comparative advantages of the business to gain high business effect. - All of important strategy decisions in the process of organizing, developing, assessing and regulating strategy have focused on team of senior managers to ensure the accuracy of long-term decisions, the information confidentiality in competition. The process of developing strategy: It requires strategic thinking and the answer 3 questions to develop a strategy : "Now where are we? Where do we need to go? And how do we get there? ", through 7 following steps as: 1.
Evaluating present: mission, objectives, strategies. Analyzing business environment 3. Analyzing macroAnalyzing macro environment 4. Analyzing inside enterprise 5.
Analyzing strengths, weaknesses, opportunities and challenges. Analyzing strategic options 7. Evaluating performance GaMBA01. X0710 – Group 11 Trang 10 / 91 Managing strategy process include: Analyzing outside environment to identify opportunities and challenges, and analyzing inside environment in order to find out strengths and weaknesses to outline the strategies and choose appropriate strategy.
Managing strategy process described in Figure 1-1 below: Figure 1-1: Model of strategy management process Mission, vision Inside analyzing: Outside analyzing: + Model: Constructing & + Macro Analyzing: - Value Chain choosing outside environment. - Competitive advantage + Micro Analyzing: 5 strategy + Conclusion: competitive forces model (SWOT) - Strengths + Conclusion: - Weaknesses - Opportunities Strategy options - Challenges -Leading in cost - Varying products - Concentrating - Diversifing products Making structure of Implementing and Monitoring and organization regulating strategy evaluating strategy’s appropriate to strategy implementation Source: Documents in Strategy Management lecture - Gamba X0710 Vision: The most important factor of developing and selecting strategy is vision of individual or group involved in strategy planning; this factor depends on intuition of each person or group. Analysis and intuition is foundation for giving decisions about forming strategy being suitable with business environment. X0710 – Group 11 Trang 11 / 91 Mission of business: Each organization has a specific mission or task even when this has not been officially informed.
Identifying tasks, goals, current business strategy is the first point in governing. As business has developed in a changeable business environment, managers will find that they need to determine the initial target. Goals and tasks: - Ensuring consensus on purpose within company - Providing a basis or standard for delivering company’s resources - Serving as a focal point for individuals in order that they can identify with Company’s purpose and direction and prevent people who are incapable of joining the market, the operating field of Company. - Favoring for making goals and working structure related to allocating tasks to responsible elements within the company - Clearly determining purpose of Company and transforming these goals into objectives in a way of cost, time and performing parameters can be assessed and managed.
The model of analyzing external environment 1. It is often used to analyze macro environment - objective environment of the business. In order to analyze and synthesize elements existing outside the enterprise, deciding effect on survival and development of enterprises. Enterprise must realize opportunities, challenges which objective environment brings to, business have to not only adapt, but also promote environmental change.
The elements of the macro environment is expressed through the following model: GaMBA01. X0710 – Group 11 Trang 12 / 91 Figure 1-2: External Environment Source: Documents in Strategy Management lecture - GambaX0710 - Analyzing of the demographic environment Population size: Observing the change of the demographic of population to highlight the importance of this segment. Age structure: To see opportunities of elderly care services, insurance services. However , it can hide potential threats of human resources issue to the business.
Geographic Distribution: May bring advantages for telecommunication technology. People can stay home and communicate with via others telecommunication networks by computer. - Analyzing political and legal environment GaMBA01.