X0710 – Strategic Management CAPSTONE PROJECT REPORT Formulating business strategy for Song Da 207 Joint Stock Company in 2012-2016 period Nguyen Hai Ha Pham Dinh Hiep Cao Viet Tung Dao Trung Dung GaMBA01.X0710 – Strategic Management Group 6 – X0710 Nguyen Hai Ha Pham Dinh Hiep Cao Viet Tung Dao Trung Dung Topic Formulating business strategy for Song Da 207 Joint Stock Company in 2012-2016 period 1 GaMBA01.X0710 – Strategic Management CONFIRMATION AND EVALUATION OF SONG DA 207 JOINT STOCK COMPANY 1. Contribution of the study The study of group 6 - class GaMBA-X0710 not only points out suitable scientific theoretical point, but also makes practical contribution to Song Da 207 in formulating business strategy. Scientific implication: In the market economy, business strategy has decisive implication to the success or failure of every enterprise. Business strategy is important to all enterprises rather than a certain one.
To exist and develop, firstly, enterprises must have a good and effective business strategy. There are many approaches to formulate business strategy for enterprises. The scientific implication of the study is summarizing theories from many different sources to create a business strategy formulation process for enterprises in the most basic, understandable and user-friendly way. Practical implication: From the vital implication of business strategy formulation, the study makes contribution to asserting the importance of business strategy formulation, providing enterprises in general and Song Da 207 in particular an approach on the method to formulate business strategy for enterprises.
In the market economy with fierce competition, formulating a successful business strategy is a difficult and complicated task. There are many approaches to formulate business strategy; however, the formulation of an appropriate and effective business strategy is not easy. The study has given out an approach to create a strategy formulation process which is suitable with the current situation in Vietnam and it is not only applicable to Song Da 207, but also to many other enterprises. The basic issues in strategy formulation process include: Determining the objective of the enterprise; evaluating environment factors affecting the enterprise; finding out opportunities and threats to the enterprise’s 2 GaMBA01.X0710 – Strategic Management operation combined with evaluating strengths and weaknesses of the enterprise to establish matrices for strategy formulation and create a complete business strategy.
To Song Da 207, this study is very valuable; it helps the Company’s board of leaders in formulating business strategy; reinforcing and promoting the Company’s brand image via raising product quality and effectiveness of sale services, bringing about high efficiency for Song Da 207. Shortcomings of the study and following research orientation The conclusions of the study are withdrawn based on the real situation at Song Da 207 Company; therefore, according to Song Da 207, the application of these solutions and conclusions into other enterprises will need more researches. On behalf of Song Da 207’s board of leaders, I would like to express our sincere thank to members of group 6 for your study. GENERAL DIRECTOR OF THE COMPANY 3 GaMBA01.X0710 – Strategic Management ACKNOWLEDGEMENT To complete the capstone project report, Global Advanced Master of Business Administration Program (GaMBA), members of group 6 - class GaMBA.X0710 have received support, instruction and enthusiastic contribution from lecturers, staffs of GaMBA Program and Song Da 207’s board of leaders.
We would like to express our gratitude to the Board of Directors, Training Bureau, Class Management Division, etc. of GaMBA Program. We would like to express our sincere thank to the board of leaders and staffs at Center for Educational Technology and Career Development – Vietnam National University, Hanoi and Griggs University (USA). Thanks to your support, we have been able to study in the most favorable environment.
We are also grateful to lecturers of GaMBA and Griggs University for their enthusiasm and conscience in teaching process and impart useful knowledge for us to apply in our current work. Although the group has tried a lot, the quality of the capstone project report still contains a number of shortcomings owing to our work-study condition. We expect and would like to develop the study further in terms of theories as well as application in the real business situation of Song Da 207 with the expectation to contribute a little into the success and sustainable development of Song Da 207 in the coming competitive and integrated environment. We have tried to complete the capstone project report in the best way with our knowledge and capacity; however, shortcomings are unavoidable and we hope to receive valuable contribution from the teachers and friends.
Members of group 6 4 GaMBA01.X0710 – Strategic Management APPENDIX CONFIRMATION AND EVALUATION OF SONG DA 207 JOINT STOCK COMPANY 2 ACKNOWLEDGEMENT. THE NECESSITY AND IMPLICATION OF THE STUDY. OBJECTIVES AND SCOPE OF THE STUDY. Object and scope of the study.
METHODOLOGY OF THE STUDY. STRUCTURE OF THE CAPSTONE PROJECT REPORT. 13 THEORETICAL BACKGROUND OF THE STUDY. CONCEPT, ROLE AND CHARACTERISTICS OF BUSINESS STRATEGY.1 Concept of business strategy.
Background of strategy. Role of business strategy. Basic characteristics of business strategy. STRATEGY FORMULATION PROCESS.
Internal and external environment analysis. Internal environment analysis. External environment analysis. Formulating matrices to select business strategy.
External factor evaluation matrix. Internal factor evaluation matrix. Competitive profile matrix. Business strategy selection.
30 REAL BUSINESS SITUATION ANALYSIS OF SONG DA 207 JOINT STOCK COMPANY. OVERIVEW OF SONG DA 207. Establishment process and organizational structure. Major business lines of the Company.
Business results in 2008-2010 period and the first 9 months of 2011 32 2. ANALYSIS OF BUSINESS SITUATION AND BUSINESS RESULTS OF SONG DA 207. External environment analysis. Industry environment and competition.
Internal environment analysis. Matrices for strategy selection. Internal-External Factor Evaluation Matrices. Competitive Profile Matrix.
73 RECOMMENDATIONS AND SOLUTIONS. OBJECTIVE TO 2016 AND VISION TO 2020 OF SONG DA 207. RECOMMENDATIONS TO SONG DA 207 IN COMPLETING BUSINESS STRATEGY. Business strategy formulation.
Business strategy selection. Bases for selection. Determining business strategy.84 * Corporate-level strategy.84 * Functional-level strategies. SUGGESTION ON SOLUTIONS FOR IMPLEMENTATION.
Solutions on operation management. Solutions on marketing management. Solutions on human resource management.89 LIST OF REFERENCES.X0710 – Strategic Management LIST OF TALBES AND FIGURES Table 1.1: External Factor Evaluation Matrix Table 1.2: Internal Factor Evaluation Matrix Table 1.3: Competitive Profile Matrix Table 1. SWOT Matrix Table 1.
Strategy selection Table 2.1: Business results in 2008, 2009 and 2010 Table 2.2: Business results in the first 9 months of 2011 Table 2.3: Construction and installation revenue in 2008, 2009 and 2010 Table 2.4: List of some major material suppliers for Song Da 207 Table 2.5: External Factor Evaluation (EFE) Matrix of Song Da 207 Table 2.6: Internal Factor Evaluation Matrix of Song Da 207 (IFE) Table 2.7: Competitive Profile Matrix (CPM) of Song Da 207 JSC Table 2.8: Some socio-economic targets Table 3.1: SWOT Matrix of Song Da 207 Table 3.2: Comparison of possible strategies Table 3.3: QSPM for strategy selection LIST OF FIGURES Figure 1. Business strategy Figure 1. Business strategy formulation process Figure 1. Macro-environment Figure 1.
Five Forces Model Figure 2. Revenue and profit over the past three years Figure 2.2: Revenue and profit in the first 9 months of 2011 Figure 2.3: Structure of products and services by output Figure 2.4: BCG Matrix 8 GaMBA01.X0710 – Strategic Management PREFACE 1. THE NECESSITY AND IMPLICATION OF THE STUDY As we may know that the world economy has fell into the worst crisis in many decades. That is the financial crisis that has resulted in the collapse of many banking systems, securities market and real estate bubble.
After the economy has just entered the process of reformation and recovery; in 2011, the world continues to face the debt crisis that has been happening in many countries and territories. Along with the world economic integration, Vietnam is stepping into the age of industrialization and modernization; developing infrastructure and socio-economy in the context that the world economic situation becomes worse. In the market economy, enterprises need to make careful preparation for business and production activities in the future in order to exist and develop. There must be short-term plans for short-term objectives; and strategies for long-term goals.
With high competitive businesses and high investment, the formulation of development strategy is very important and has significant implication to enterprises’ operation process. The world economic integration always has two aspects. It opens new opportunities of economic cooperation, helping domestic construction enterprises to access science, technology and learns advanced and effective management methods. Besides, it also brings about tougher competition, forcing domestic construction enterprises to non- stop renovate, establish and plan correct orientation; sustain and ceaselessly expand market share; and operate effectively in the short-term and in the long-term in the context that the macro-economy contains a lot of risks.
Construction sector is a specific business field and has special importance in the process of the world economic development, but is also very sensitive to the changes in domestic and international economic-politic-social environment. Therefore, activities of enterprise in construction sector is also paid attention and checked strictly. Besides, the industry rivalry has become tougher and tougher along with the world’s deep economic integration. Therefore, effective studying and formulating business 9 GaMBA01.X0710 – Strategic Management strategy is an urgent requirement of all enterprises in general and construction enterprises, especially Song Da 207 Joint Stock Company in particular.
Song Da 207 Joint Stock Company (Song Da 207), a member of SongDa Holdings was established in 2002. With 10 years of establishment and development, Song Da 207 has been participating in constructing many traffic, civil projects, etc. Therefore, the formulation of objectives, plans and operating strategies for the whole Company really plays an important role in the development orientation and creates competitive advantages for the Company in the following stages and in the long-term. Therefore, our group decided to select the topic “Formulating business strategy for Song Da 207 in 2012-2016 period and vision to 2020” as the topic of the capstone project report.
The study will prove the importance and practical implication of the strategy formulation for Song Da 207 in the context that domestic and international economies experience complicated changes. At the same time, the study also provides Song Da 207 and its board of leaders the process of formulating business strategy; analyzing and evaluating the real business and production situation of the enterprise; analyzing objective and subjective factors affecting its business and production situation. From that, we will give out recommendations on selecting the most suitable business strategy for Song Da 207 in 2012 - 2016 period and vision to 2020. OBJECTIVES AND SCOPE OF THE STUDY 2.
Objective - Applying theories learned from MBA Program to handle problems in real situation of the work. - Formulating theoretical background for the business strategy formulation of Song Da 20 JSC. - Analyzing and evaluating macro, micro and internal environment of the Company to recognize opportunities and threats from business environment as well as strengths and weaknesses affecting the Company’s development.X0710 – Strategic Management - Formulating strategic objectives for the business and production of the Company in 2012-2016 period and suggesting plan for implementing that strategic objective to help the Company develop sustainably in the environment of competition and integration. Object and scope of the study - Object of the study: Song Da 207.
However, to analyze and clarify the contents, the study also expands the objects of the study to competitors of Song Da 207 in construction sector. - Scope of the study: includes issues related to business strategy of Song Da 20 JSC in the fields of construction, installation, investment and real estate trading. - The period of the study: Statistics in 2008-2010 and the first 9 months of 2011 and factors affecting business and production of the Company to 2016 to analyze the business and production situation of the Company. METHODOLOGY OF THE STUDY To realize the above-mentioned objectives and implication, we have select and apply many basic quantitative and qualitative research methodologies including: - Theoretical background of the study is theory of the subjects: Strategic management, Operations Management, Managing Human Capital, Marketing Management, etc.