GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT “BUILDING BUSINESS STRATEGY FOR VIETTRUST JSC TO THE YEAR 2030” ACKNOWLEDGMENTS We would like to express our thankfulness to the lecturers, facilitators and experts of the GaMBA between Griggs University and Education Training Center (ETC) for your enthusiastic provision of very important information and knowledge which help to equip us with new style and skills of management. The changes in thinking and management style of ourselves and our colleagues, especially the effectiveness of the management work at our office during the recent time, are wonderfully crystallized from this important course. Due to limited time, there are still some mistakes in the Project, even we commit that this capstone project is result of our real study and practice in VIETTRUST JSC. We would therefore like to welcome all recommendations and comments to perfect our Capstone Project on “BUILDING BUSINESS STRATEGY FOR VIETTRUST JSC TO THE YEAR 2020”.
Thank you very much! 1 TABLE OF CONTENTS ACKNOWLEDGMENTS. 1 TABLE OF CONTENTS.2 LIST OF TABLES, FIGURES AND CHARTS. 5 THEORETICAL BASIS OF BUSINESS STRATEGY BUILDING. The concept and role of strategy.1 The concept of strategy.2 The role of strategy.3 The content of strategy.4 Strategic management process.
The technical analysis strategy. Analysis the five competitive forces of M.4 Tools of building strategy and selecting strategy.5 Tools of strategy selections.21 BASIS FOR THE FORMULATION OF BUSINESS STRATEGY FOR VIETTRUST JSC. Overview of VIETTRUST JSC. Analysis macroeconomic of VIETTRUST JSC.1 PEST analysis of VIETTRUST JSC.2 Industry environmental analysis.3 Analysis of internal environment of VIETTRUST JSC.3 Technical – material facilities resources.5 The BCG matrix.
45 SELECTION OF BUSINESS STRATEGY FOR VIETTRUST JSC IN THE PERIOD 2011 – 2020.2 Objective of VIETTRUST JSC.1 EFE Matrix of VIETTRUST JSC. IFE Matrix of VIETTRUST JSC.4 SWOT matrix of VIETTRUST JSC. Selecting strategies for VIETTRUST. Market development strategy.
Enhance competitiveness strategy. Joint venture Strategy. Selecting Strategy for VIETTRUST JSC.1 Human resources solutions.6 The road map for implement strategy of VIETTRUST JSC. 57 3 LIST OF TABLES, FIGURES AND CHARTS Figure 1: A comprehensive strategic-management model.9 Figure 2: PEST model.10 Figure 3: Five forces model of M.14 Figure 4: Organizational chart of VIETTRUST JSC.22 Figure 5: Comparing logo of TONMAT and LONG GIANG.32 Chart 1: Market share of 3-layer soundproof and heat-resistant industry.34 Figure 6: The BCG Matrix of VIETTRUST JSC with two division through 3 year period 2008-2010.43 Table 1: SWOT MATRIX.16 Table 2: Model of IE Matrix.18 Table 3 : QSPM - Quantitative Strategic Planning Matrix.19 Table 4: Market share of VIETTRUST JSC.23 Table 5: Vietnamese GDP rate in recent years.26 Table 6: List of companies in industry.33 Table 7: Competition images of major companies.34 Table 8: Opportunities and threats of industry analysis.37 Table 9: Employes qualification of VIETTRUST JSC.37 Table 10: Strengths and weaknesses of human resources.38 Table 11: Summary of and business results of enterprises.39 Table 12: Strengths and weaknesses of financial sources.40 Table 13: Strengths and weaknesses of technical and material facilities.41 Table 14: Sales of TONMAT in period 2008-2010.42 Table 15: Sales of TONMAT Logistics in period 2008-2010.42 Table 16: VIETTRUST JSC.
portfolio with two divisions.43 Table 17: EFE Matrix. 45 Table 18: IFE Matrix.46 Table 19: The road map for implement strategy of VIETTRUST JSC.53 4 5 CHAPTER I THEORETICAL BASIS OF BUSINESS STRATEGY BUILDING 1. The concept and role of strategy "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations”. Strategy of a business was formed to answer the following questions: How long will business activities take place? Which market will business activities compete in? What is the scope of activities? How business will be conducted better than competitors in the market? Which resources are needed to create competitive advantage? How factors in the external environment affect the competitiveness of the business? 1.1 The concept of strategy Business strategy is the overall strategies of business identifying goals and direction in a long period of 5 or 10 years, and be thoroughly grasped in all business activities of enterprises to ensure sustainable development of enterprises.
Business strategy only outline the long-term orientation, but in practice business have to make the combination of strategic objectives with the goals in specific situations, a combination of strategy and tactics, between short and long term. From that ensures business efficiency and overcome the bias caused by strategy. All important decisions in the process of building, decision, implementation and testing, assessment and adjustment strategy must focus on the highest leaders of the business. This ensures the accuracy of long-term decisions, for the confidentiality of information.
6 Business strategy is always built on the basis of comparative advantage. This requires in formulation process, the enterprise must correctly assess their current status of production and business to find out the strengths, weaknesses and regularly review the internal factors when implementing strategy Business strategy first and foremost, is built for business, specialized business area and the traditional strengths of the enterprise. This puts companies in the situation to build, to choose.2 The role of strategy Business strategy plays an important role in the process of the company's existence anddevelopment. Strategy is a tool to summarize all the long-term goals of the company.
Business strategy plays an important role in the process of the company's existence and development. Strategy is a tool to summarize all the long- term goals of the company. The company's goal is a specific purpose that the company wants to achieve in the course of business. Specifically, through all the strategic documents of the company to help members of the company to know where they will come, what they need, what they should do.
This helps the companies to complete the objectives obviously. The strategy also contributes to ensuring the consistency and direction of the company's operations. In the history of the existence and development, the strong trends of labor allocation in both width and depth, all the works are being done in many different parts. That is the specialization which improves performance of the job, however, each department is only care of improving business operations by itself without regard to other departments and the entire companies.
Therefore, some activities can be an obstacle for others and caused severe impact to the company's objectives. The strategy will provide a practical comprehensive and systematic in problem solving, to create synergy of the whole industry and all members of the company. From this it goes in one direction is the goal of the company.3 The content of strategy Business strategy firstly represents the views and thoughts to exist and develop of business. The views of existence and development confirms the role and tasks of the business.
It answers the question: Enterprise exists for what purposes? In which area do businesses exist? And what is the orientation of the enterprise? The basic objectives are: revenue, profit, budget, the average income of workers etc. A reasonable objective of the proposed strategy must fit both on the basis of enterprise needs (derived from the requirements of the environment - the opportunity, and the enterprise itself - the problem), and on the basis of what the business might have (potential and resources). Strategic solutions answers the question: How to achieve enterprise's objectives? How to determine the structure of the apparatus? Where to get budget to implement the objectives? How to allocate and manage most effectively? Strategy tools help us answer the question: How achieve enterprise's goals? Business strategy includes three main contents, such as: The point of ideology, objectives, solutions and tools. And must meet requirements such as: - Increase the power of the business and gain competitive advantage.
To achieve this while formulating strategies, enterprises must fully exploit their comparative advantage. Ensure the safety business for enterprise. Business strategy has to determine the safety zone, business scope and to identify the acceptable levels of risk. To meet these requirements enterprise's must conduct research and forecast the business environment in the future.
The more accurate prediction, the higher rate of safety for enterprise is. This requires enterprise's to have an amount of information and specific knowledge. - Clearly define the objectives and the basic conditions to achieve the objective. 8 - To build reserving and alternating strategies.
The reason to do so is because of ever-changing environment, while strategy is the decision of the future, the reality in the future may differ from the predictions of the strategy. - To combine the opportunity and maturity. That means a business strategy is built and implemented with the right times. Even a perfect strategy will be meaningless if it is set out when the opportunity has passed - The ways of business: The mission of the business impacts the objectives of strategy.
Business strategy have to be developed and implemented base on the policy of the business, and must focus on the implementation of the supreme goal of the business. - Defining the enterprise's business strategy must also be based on the capacity of the enterprise, because it it relates to the feasibility of the strategy. Business strategies are only implemented on the basis of what the business might have. It is the capacity of enterprises on the capital, people and technology.
- The main elements of the business environment: in the current conditions of competition, business activities of enterprises are depending more and more closely on the environment. Business decisions not only based on their qualifications but must consider the relationships between environmental impact and businesses themselves. - Customers are the basis of survival of the business, so is crucial to the business strategy of the enterprises. In order to develop business strategy, enterprises have to research the number of customers for its products, tastes and income of customers.
On that basis, enterprises will segment the market and build targets to meet market needs, sales to be achieved, adjust the list and sizes of products etc. - The competition: Every business has competitors. While building the business strategy, strategic planner must also study and compare the performance of the business with the competitors to find out the advantages, and make full use of those advantages.4 Strategic management process Figure 1: A comprehensive strategic-management model Perform external audit Develop Establish Generate, Implement Implement Measure and vision and long-term Evaluate and Strategies – Strategies – evaluate mision objectives Select Management Finance, performance Strategies issues Accounting, R&D and Perform MIS issues internal audit Strategy Strategy Strategy Formulation Implementation Evaluation (Source: Strategic management concept and case, twelfth edition, Fred R. The technical analysis strategy 2.
PEST Analysis Model study of factors affecting the company, including the political environment and legal, economic, environmental, social cuture and technology environment. Political, and legal environment affect more and more to the company's operations. The influence of political and legal means government provide regulations for businesses to monitor or prohibit. The government plays a major role in the macro economy through economic, financial and monetary policy.
In relation to the company, the government is important to control, encourage, support, regulate, prohibit and restrict. Besides political issues, economic factors directly and initiatively affect the enterprise. Economic factors include the trend of GDP, growth speed, interest rates and trends of interest rates, international payments, trends of exchange rate, 10 inflation, tax rates and tax system, the fluctuation in the stock market, business cycles and economic times. Culture and society is the third in the PEST model.
Technology environment is always changing because it offers many opportunities and threats for business. Changes in technology affect many aspects of society mainly through the products of the technology process. These include activities related to the creation of new knowledge, moving knowledge into output. Suppliers can make threats to the company via price and payment method.