Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 emGRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT BÀI TẬP LỚN TỐT NGHIỆP: HOÀN THIỆN CHIẾN LƯỢC KINH COMPLETE BUSINESS STRATEGY DOANH CÔNG TY CỔ PHẦN XI OF MĂNGHOA PHAT HÒA PHÁT CEMENT COMPANY GIAI ĐOẠN IN THE PERIOD 2009 - 2015 2009 - 2015 Nhóm: 7 Học viên: Lê Văn Nam Trần Tất Thắng Nguyễn Thị Trà My Nguyễn Trung Kiên Hà nội, 2009 TABLE OF CONTENTS FIGURES, CHARTS AND TABLES. The necessity and importance of strategy building:. The structure includes.11 CHAPTER I: THEORETICAL BACKGROUND ABOUT BUSINESS STRATERGY. 11 1 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 1.
Business strategy definition:.1 Strategies at different levels in a business:.2 How will the strategy be controlled? – Strategic management. Strategic business area and strategic business unit:.1 The strategic business area:.2 The strategic business units:. Defining the strategic business operations:. Defining the strategic targets with the supports of business complex method:.
Boston Consulting Group method (BCG method):. Business group method on industry attractiveness – competitiveness (McKINSEY).2 SBU’s competitive advantages:. External environment analysis:. Internal environment analysis:.
Product strategy definition:.1 Product collection strategy:.2 Product line strategy:.3 Product innovation strategy:.4 Product positioning strategy:.1 The pricing strategy for product collection:.2 Pricing adjustment strategy:.28 2 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 1.3 Price changing strategy:.2 Product distribution channel:.3 Choosing distribution channel:.4 Wide distribution channel:.5 The selective distribution strategy:.6 Exclusive distribution strategy:.2 The promotion mix:.4 Efficiencies of promotion tools:. Promotion strategy in the period of product’s life cycle:.7 Push and pull strategy:.9 Public Relation and promo:.2 Some major tools of PR:.2 Some direct Marketing forms:. Controlling and evaluating strategies.37 CHAPTER II: REALITY OF COMPANY’S BUSINES STRATEGIES. Establishment process and development situation:.
Company’s functions and mission:.40 3 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 2. Board of Director:. Primary functions and missions of managing sections:. Evaluating Company’s human resources:.
Current human resources:.1 Total Human resources:. Supports from foreign specialists:. Materials and the point:.1 Materials for producing cement:. Quang Ninh powder coal:.
Supplying materials and other spare parts:.6 Sales and Marketing:.7 Cement market analysis:. Cement markets of the world, Asia and Asian:. Vietnam’s cement market:. Ha Nam cement market:.
The Cement markets of Ha Nam’s neighboring provinces:. Forecasting cement demand in the Hoa Phat cement market:. Evaluating cement supply – demand in Hoa Phat cement market:. Analysing the factors affecting to the project:.
71 CHAPTER 3: SOLUTIONS, PROPOSALS AND CONCLUTION.78 4 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 3. Defining Company’s development direction to 2015:.3 Mode of word:.5 Source of materials:. Product line strategy:.2 Restriction strategy for product:.7 Sales and Marketing:. 95 5 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 FIGURES, CHARTS AND TABLES Figures Figure 1.1: Strategic management model (Source: Strategic management 13 textbook, Statistic Publisher, 2009) Figure 1.
BCG Matrix map. Source: Grunig và Kuhn (2004) 16 Figure 1. External environment’s reaction. Evaluating market’s attractiveness by Fire forces model (Source: 21 Strategic Management textbook, Statistic Publisher, 2009) Figure 1.5: Factors affect on making price 26 Figure 1.
Pricing strategy’s targets (source: Principles of Marketing, 28 Economic University of HCMC) Figure 1. Industrial products distribution channel (Source: Principles of 30 Marketing, Economic University of HCMC) Figure 1. Promotion’s roles in Marketing (Source: Fundamentals of 31 Marketing, William j. Communication model of Marketing (Source: Marketing, 32 Warren J.
Push and pull strategy (Source: Fundamentals of Marketing, 35 Economic University of HCMC) Figure 2.1: Ciment Hoa Phat’s Organizational structure 40 Charts Chart 1. Efficiencies of promotion tools (Source: Fundamentals of 32 Marketing, Economic University of HCMC) Tables Table 1.1: Evaluation the industry’s attractiveness’s according to criteria of 18 6 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 Hill and Jones (1992) Table 1. Evaluating competiveness of SBu according to criteria of Hill and 19 Jones Table 1.3: Promotion strategy in the period of product’s life cycle (Source: 33 Fundamentals of Marketing, Economic University of HCMC) Table 2. Human resources allocation 44 Table 2.
Number and type of foreign specialists 45 Table 2. Unit’s working system 46 Table 2. Collection table for reserve calculation result 49 Table 2. Technical requirements for gypsum 51 Table 2.
Cement demands in some East Asian countries and West Asian 54 countries in 2005 and the forecast in 2010 Table 2. Forecasting cement demand in ASEAN to 2010 55 Table 2. Forecasting Vietnam cement demand to 2020 (source Hoa Phat 58 Group) Table 2.9: Overall cement demands of regions in Hoa Phat cement market to 60 2020 (Source: Hoa Phat Group) Table 2.10: Plans on investing and mobilizing quantity of cement plant in 61 Hoa Phat cement market to 2020 (Source: Hoa Phat Group) Table 2. Cement supply – demand balance in Hoa Phat cement market to 62 2020 (Source: Hoa Phat Group) Table 3.1: Analyze the sensitivity of the project 84 Table 3.2: Discount for monopolistic agents 85 Table 3.3: Discount for retailing shop 85 Table 3.4: Discount for monopolistic agents 86 Table 3.5: Discount table for non-monopolistic agents 86 Table 3.6: Discount table for monopolistic agents 91 Table 3.7: Discount table for non-monopolistic agents 91 7 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 FOREWORDS Hoa Phat Cement Joint Stock Company was established on September 25, 2006, the shareholders are: Hoa Phat Corporation Joint Stock Company, Hanoi ACB Investment Joint Stock Company; A Chau Investment Joint Stock Company and Mr.
Dang Cong Minh (104, To Hien Thanh, Hai Ba Trung, Hanoi). Company’s initial target building Hoa Phat Cement Factory with the real productivity of 1 million ton/year at Thanh Thuy village, Thanh Liem commune, Ha Nam Province. It is supposed to be put into operation as expected but at the end August, 2009, Factory has primarily completed, Company has imported clinker from factories in the region for crushing plant’s operation. According to actual plan, It is planned that on November, 2009, the last portfolio is the clinker calcinations kiln to be completed and the factory will operate formally.
Company’s business strategy defines that: following low cost production, at this time, Company has build the detailed plan to the end year 2009 and 2010. With the desire to apply the knowledge from the Master program on International Business Administration to the reality, besides, as the shareholders of Hoa Phat Corporation Joint Stock Company, group 7’s members in Class N01.Gamba01 want to contribute some things in building the Corporation stronger, and our group has chosen the topic: Complete the business strategy of Hoa Phat Cement Joint Stock Company in period 2009 – 2015 as the group’s graduation composition. During the time carry out this project, We would like to receive the instructions and helps from Assoc. PhD Vu Tri Dung; Program advisory board, board of director Hoa Phat Cement Joint Stock Company, however the project is not as profound as we desire because we do not have time conditions and survey the overall conditions of Corporation, We would like to receive the supplement contribution from the evaluation board to make our project more complete.
Respectfully thanks! 8 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 INTRODUCTION 1. General background The first root of Vietnam Cement Industry is Hai Phong Cement Factory, started construction on December 25, 1899 with the labels Rong Xanh (Blue Dragon), Rong Do (Red Dragon). Hoa Phat Cement Joint Stock Company is a company of Hoa Phat Group, was established on September 25, 2006, was expected to put into operation in July 2010. As predicted, the end of 2009, the country will have 105 operating cement plants supply cement market.
In recent years, Vietnam economy has had some active changes to the market economy which continuously develops, opens and integrates with the regional and world economy. The business which operates in business is always put in the new conditions, beside great opportunities; there are more difficulties, threats compared to previous time in the domestic and international market. And how to make business continuously develop and have competitiveness and achieve the successes in the variable and competitive market economy is the permanent cares of all businesses in country in the economic management aspect; they want to find and uphold at maximum the comparing advantages in the fierce competitive environment beside opportunities and threats. The financial crisis in region in the end 1997 reacted positivity to Vietnam economy.
Total product in country in 1992 – 1997 archived the growth rate of 8 – 9%, suddenly decreased to 5.8% in 1998 and increased 4,8% in 1999. But from 2004 – 2008, our country has taken the growth rate which increased year by year, however, to the year 2008, the growth rate decreased because of the world economy crisis exploded in 2007 (2004: increase: 7. Within 5 years from 2004 to 2008, total products in country increased 7. This growth rate is not only higher than the average growth rate 6.95% each year in the 5 year plan from 1996 – 2000, but also stays in the line of economies 9 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 which have high growth rates in region and the world.
However, according to the forecast of the Asian Development Bank, the Vietnam's GDP in 2010 will be lower than in 2009, showing that the economy will be difficult in the coming years. In those conditions, knowledge about modern strategic management, economic theories are guidelines for business operations of administrator in all levels in managing, organizing business activities. Basing on that foundation, Company’s business strategies play important roles in deciding the existence and development of business. The necessity and importance of strategy building: As one of the projects in the development strategy of the group Hoa Phat period 2006-2010.
As initially expected to be put into operation in July 2010, but by the end of August 2009 the plant was basically completed. Expected at the end November 2009 the last category of clinker kiln will be completed and officially put the plant into operation simultaneously. But the present time the company only to build more detailed plans of their work to the end of 2009 and 2010 and the plans are small, minor, in the short term. Besides, after the research, considering and evaluating the state of apparatus organization and management model, current producing business.
the team also found that the company still has many inadequate problems need to reform orientation. On the other hand the actual cement production is an industry must use the resources in place, the cost of distribution, transportation accounts for high proportion of product price, so the development plan should be calculated carefully on the basis of statistics as well as the fact-oriented development of the whole industry. To overcome these exist weaknesses, determine the direction of development objectives in the coming period, the Group found that the company needs to realize clearly the urgency of the mission to identify the longer-term vision of the business and build appropriate business strategy to ensure 10 Complete business strategy of Hoa Phat Cement Company Joint Stock Company in the period 2009-2015 sustainable development, and develop business for the production and consumption of cement to ensure the company is implementing strategies to pursue more production costs low, gradually became a business manufacturing and selling cement top in Vietnam. Then rapid capacity building and business management improve knowledge and access information on markets, competitiveness of the company towards innovative and modern.
Research purposes: The purpose of the project is great contribution to build a strategic function in the business strategy of the Corporation Hoa Phat Cement including: product strategy, pricing strategy, distribution strategy and strategic promotion.