MBA Program (GaMBA) UNIVERSITY & INTERNATIONAL ACADEMY CAPSTONE PROJECT DEVELOPING BUSINESS STRATEGY FOR CONSTRUCTION JOINT STOCK COMPANY No. 5) IN THE PERIOD OF 2020 - 2035 CONTENT ACKNOWLAGEMENT. General context and meaning of the research. Objectives of choosing the business plan for period 2010 - 2015 of VINACONEX No.
Methods of implementation.4 CHAPTER 1: THEORETICAL FRAMEWORK OF THE STUDY RESEARCH. The general view of business strategy.1 Definition of business strategy.2 Role of business strategy.3 Basic features of business strategy. Process of developing a business strategy. Vision, mission and key values.
Selection of business strategy. Selecting the optimal strategy. Organization and implementation. Evaluation of the set strategy effect.20 CHAPTER 2: ANALYSIS ON THE BUSINESS STRATEGY OF VINACONEX No.
General introduction about VINACONEX No. The profile of company:.2 The history of establishment:. Structure of organization:.4 Main scope of business. Production and business results.
Analysis on outside environment factors impacting on production activities of VINACONEX 5. Lawyer and Political Environment. The environment of social culture - Demography. Analysis on the industrial and competitive environment.
Analysis of inside environment. 49 CHAPTER 3: BUSINESS STRATEGY OF VINACONEX No. 5 IN PERIOD OF 2010 - 2015. Development strategy orientation of VINACONEX Joint Stock Corporation, phase 2008 - 2015:.
Business development strategy:. Strategy on restructuring Enterprise. Proposal and selection of strategy. Selection of appropriate strategy.
Strategic road map. Proposal of development strategy road map from 2010 to 2015. Contents need implementing. Solutions for implementing.
Plans on human resource. Production management plan. Monitoring and evaluation.77 ACKNOWLAGEMENT In order to finish the Master of Business Administration Program and write this capstone project report, we have received enthusiastic instruction, support and suggestion of many people and we cannot get such achievements without them. First of all, we would like to express our sincere thanks to lecturers of Hanoi, Vietnam National University and Griggs University, USA.
Thanks to your enthusiasm and dedication in teaching, we have achieved useful knowledge for our present works. We also express our grateful thanks to all members of Global Advanced Program, Management Board of the Program, training bureau, class management board, etc. Thanks to the help of the Program, we have studied in the most favorable environment. The Program has created favorable conditions for us to both fulfill our duties at working place and ensure study quality.
We have tried our best to complete the capstone project report by our knowledge and capacities; however, it is impossible to avoid shortcomings so that we do hope to receive valuable contributions from our valued lecturers and from you. Members of Group 7 1 INTRODUCTION 1. General context and meaning of the research Developing business strategies is the demand for continuous innovation of companies. At present, most companies in the world consider the development of business strategies the first priority task.
Market economy, business globalization and increasingly competitive environment are pushing back the thought of waiting for luck in business activities. Instead, success only comes to those who are intelligent and apply knowledge of profession; management and practice in order to develop sound business strategies for their own. Vietnam’s strategy on socio-economic development for period 2001-2010 has determined that the overall target is to take the country out of miserable situations, enhance physical and spiritual life of people, and create foundation for Vietnam to basically become a modern industrial country by the year 2020. In that context, the sector of industry and construction is proving its roles as a basic economic industry, playing an important role in the development of the economy of the whole country.
Its roles include: attracting a great number of laborers and grow gradually each year from 18.5% in 2009; making a contribution to the whole economy, increasing from 24. In addition, in the context of increasingly in-depth international integration, construction companies have to face increasingly strict competition not only from domestic competitors but also from foreign ones. Therefore, in order to ensure the sustainable development, the construction companies not only need equipment of high quality, modern technology, skilled workers but they also need to develop excellent business strategies for their own. Consequently, the companies are required to promote strengths 2 and overcome weaknesses, as well as research outside conditions to establish suitable strategies.
Understanding and realizing the significance of building business strategies, our group decided to study and establish a business strategy for a company in the construction sector in which all members of group are working. The name of our topic is “Developing business strategy for joint stock company No.5 (VINACONEX 5), membership units of VINACONEX Corporation in the 2010 2015 stage”. We hope that with knowledge learned from the course and practical experience in work, we will develop a good business strategy, suitable for development demand, ensuring the rapid and sustainable development of VINACONEX 5 in the 2010 - 2015 stage, making the company become a strong member of VINACONEX Corporation in particular and Vietnam construction sector in general. Objectives of choosing the business plan for period 2010 - 2015 of VINACONEX No.
5 - To systematically reset all knowledge learned from the course to apply to reality at the VINACONEX No. 5, as chosen by the group, one subsidiary of VINACONEX Corporation. - From actual situation of the enterprise, the group makes deep analysis and work out strategy on development and solutions which can apply to reality, bringing effectiveness for the enterprise and contributing to the socio-economic development. - From application results for the topic, the group has the background for self- assessment of their achievements of the course as required.
Methods of implementation 3 - Each learner in independent groups should propose research and topic accession direction, choosing an implementer. The group shall reject and come into agreement to choose topic, with a specific enterprise to implement. - Collecting information on enterprise according to requirement of the topic, analyzing and assessing problems in line with experience and knowledge of each learner. - Learners working in chosen enterprise (VINACONEX 5) shall clarify information on the enterprise for the research group.
- Meeting and exchanging with the enterprise to verify information, seizing intention, development strategy orientation of the enterprise to consult and choose topic direction. - The group building outline and content of research shall consult with managers of the enterprise, researches and colleagues to complete supplementation (if any). - Proposing specific strategy, completing main content of the topic, asking for rejection of researchers, enterprise managers who have research topics, summarizing such ideas. The group adjusting topic shall present the research to the council.
- Transferring topic, giving advice for the enterprise to implement. - Generally watching, assessing results of topic implementation and applying in reality. Structure The project includes: - Introduction; - Chapter 1: Presenting the theoretical framework of research project - Chapter 2: Analyzing current business strategies of construction joint stock company No.5 4 - Chapter 3: Business strategies of construction joint stock company No.5 in the period 2010 -2015 stage. - Conclusion 5 CHAPTER 1 THEORETICAL FRAMEWORK OF THE STUDY RESEARCH 1.
The general view of business strategy 1.1 Definition of business strategy The term “strategy” originated from the ancient Greek times. This term has deep origin from military, derived from word “strategos” that means role of a general in the military. In the human being history, many military ideologists like Sun Tzu, Alexander, Clausewitz, Napoleon, and Stonnewal Jackson, Doulas MacArthur have mentioned and written strategy on many points of view. Accordingly, basic theoretical points of the strategy is an opposing party can crush his opponent - even a stronger and more crowded opponent if they can lead the battle position and drive the opponent to battlefield that is favorable for deploying his capacities.
The result of military strategy is the outcome of winner and loser. However, compared with military strategy, business strategy is more complicated. Unlike military disputes, competition in business does not constantly cause the outcome of winner and loser. The competition in the sector sometimes results in the improvement of strengths and skills as the origin of competition.
Below is the description of business strategy: Opportu Strengths nities Apply, Discover maintain Inside Strategy Outside Overcome Prevent Weaknesses Threats Figure 1. Business strategy (Source: Lecture documents course "Strategic Management") 6 Scholars have opinions and acknowledgement of business strategy at many aspects. Michael Porter, famous strategic administrator of Harvard University, business strategy is considered an art to compete in the market and develop company: “Business Strategy is an art of building stable competition advantages to defend”. According to viewpoints of management category, business strategy is a form of plan; G.Arlleret said “Strategy is to determine roads and means to achieve set goals through policies”.Bizrell and authors group acknowledge “Strategy as a general plan leading or directing company to get desired goals.
It is basis for making policies and demonstrator procedures. According to viewpoint of combining unification, business strategy is an art of combining activities and controlling them in order to achieve long-term goals of the company. According to Professor Alfred Chandler of Harvard University, he defines” “Business strategy is a process of determining long-term basic goals of company, choosing action directions and distributing resources to implement such goals”. Accessing with many viewpoints of the business strategy helps us more understand because each definition shows different aspects that should be covered.
There are three levels of business strategy recognized at minimum: company level: direct to general purpose and scope of organization; business unit level: is generalization of engagements and actions to help industry get competitive advantages by exploiting their key capacities into specific product markets; and functional strategy: are strategies that help the strategies at business level and company level effectively implement thanks to components on resource aspects, progresses, human and necessary skills. In the point of view of strategic scope, there are: “Common strategy or called general strategy, deal with the most important, embraced, longest-meaning and decisive matters of the company, particular strategy is second-level strategy like: marketing strategy, financial strategy, price strategy, distribution strategy, etc. The general and particular strategies are in close with each other to become a perfect business strategy. Levels of strategy (Source: Lecture documents course "Strategic Management") According to strategy access direction, there is central strategy: only focus on key points that have decisive meanings for production and business operation of the Company but not deploy resources; the Strategy bases on relative advantage: Strategic determination idea is based on analysis, comparison of its products or services with that of competitors; find strong points as support for making business strategy; Offensive creation strategy: the business strategy based on new creation to achieve advantages before competitors.
Free strategy: is a strategy that does not aim at key factors that develops factors surrounding the key factors 1.2 Role of business strategy Business strategy helps company clearly recognize its goals, direction as basis and guideline for all production and business activities of the Company. It helps the Company grasp and take full use of business opportunities, simultaneously have solution to actively overcome risks and threats in the competitive market. Developing business strategy contributes to increase effect of using resources, increasing competition position and ensuring stable development of the company. The business 8 strategy creates stable basis for making policies and deciding appropriate production and business operation with changes of the market.3 Basic features of business strategy The business strategy determines basic goals and business directions of the company at each period.
Orientation feature of the strategy is to ensure constant and stable development of the Company in a business environment full of changes. On the other word, the business strategy ensure maximum mobilization of capital and optimal contribution of development and use of resources of the company at present and in the future, upholding advantages and catching opportunities to achieve advantages in competition. With the business strategy feature reflected during continuous progress, the business strategy always has an idea of attacking, getting win in business market and often built in a period from 3, 5, 10 years or more.