2 0 1 0 G L O CAPSTONE PROJECT REPORT B A L BUSINESS STRATEGY FOR URBAN HOUSING A DEVELOPMENT OF HAIPHAT INVESTMENT JSC., D PERIOD 2021 – 2030 V A N C E D M B A P R O 1 G R TABLE OF CONTENTS HANOI 2010 TABLE OF CONTENTS 2 LIST OF TABLES 5 LIST OF FIGURES, CHARTS 5 INTRODUCTION 6 CHAPTER I: THEORETICAL BACKGROUND 9 1. Overview on Strategic management 9 1. Types of business strategies 11 1. Importance of business strategy 11 1.
Requirements for a business strategy 12 1. Basis for business strategic planning 13 1. Business strategic management 13 1. Definition of Business strategic management 13 1.
Roles of business strategic management 14 1. Strategic management process 15 1. Affects of environmental factors to business strategic management 20 of enterprise 1. External macro-environment 20 1.
Human Resources based elements 27 1. Production and technique operation elements 27 2 1. Marketing and sales elements 27 1. Business strategy formulation 28 1.1 Generic business strategies 28 1.
Selecting the optimum strategy 35 1. Business strategy implementation 37 CHAPTER II: ANALYSIS OF THE BUSINESS STRATEGY AT HAI 40 PHAT INVESTMENT JSC. Overview of Hai Phat Joint Stock Company 40 2. Foundation and development 40 2.
Production process and core products 44 2. Human Resources Capacity and Organizational structure 44 2. Analysis of Business Environment 45 2. Scale and Structure of market 45 2.External Environment analysis 49 2.Business industrial environment 52 2.Internal Environment Analysis 56 2.Production capacity and core products 58 2.Human resource policy 58 2.Marketing and PR activities 60 2.Analysis of Competitive Advantages 63 CHAPTER 3: BUSINESS STRATEGY FORMULATION OF HAI 66 PHAT INVESTMENT JSC.Development Orientation of the company 66 3.Scale, Structure and trends of market 66 3 3.Summary on SWOT analysis 70 3.
Vision, mission, strategy orientation and goals 71 3.Building the business strategy of Hai Phat Investment JSC 71 during 2010-2015 3. Selection of the business strategy 72 3. Solutions on technology and production 74 3. Solutions on human resources 74 3.
Solutions on finance 75 3. Solutions on marketing 75 3. Improving the organizational structure, evaluation and control 76 3. Improving the organizational structure 76 3.
Improving the evaluation and controlling system 76 3. Road map for solutions 76 CONCLUSION 79 REFERENCES 80 4 LIST OF TABLES Table 1.2: SWOT Matrix Table 1.2: GREAT Model Table 2.1: Business outcomes Table 2.2: The professional qualification of the company’s staffs Table 3.3: Opportunities and challenges for the company Table 2.4: Some important financial ratios and business outcomes Table 2.5: Strengths and weaknesses of Hai Phat Company Table 2.6: Competitive Profile Matrix Table 2.7: Evaluation on the core competencies and competitive advantages Table 3.1: Expected supply Table 3.2: Forecast of apartment block projects in Hanoi Table 3.3: Summary on SWOT analysis and strategic orientation of Hai Phat JSC.4: GREAT Quantitative Matrix Table 3.5: The Implementation Process of Strategic Solutions LIST OF FIGURES Figure 1.1: Five tasks of strategic management Figure 1.2: The three components of the business vision Figure 1.3: Michael Porter's Five Forces Model Figure 1.Porter’s Generic strategies Figure 3.1: Operation of primary market (All types in 2nd quarter of 2009) 5 INTRODUCTORY 1. Rationale In the market economy, enterprise must operate in a changing business environment : The regulations system is changed and more and more improved, the competition, both inside and outside of the industry, is increasing fierce, and customers are more demanding…For sustainable survival and development, enterpirse must define and select the right business strategy to adapt well to external and internal environmental changes. Business strategic planning is a process of anlyzing the external and internal business environemtn, proposing strategies and implementation solutions in order to mobilize all efforts and resources in realizing strategic goals the most effectively as well as coping with unexpected stituation and adapting to changes.
In recent years, the Vietnam’s market economy grows tremendously. With the encouragement policies facilitating the development of all economic sectors, many non-state small and medium enterprises were founded and contributed positively in the national economic growth. Hai Phat Investment Joint Stock is a company specializing in real estate investment. During the development process, the company has big development steps and gain more and more prestige on the market.
However, despite the success, the company operation is still subjected to some limitation , it can not take full use of all resources and strengths to go over the industrial competitors. The business results are not equivalent to the company’s potential There are many reasons, both subjective and objective, but the key question is that the company did not pay enough attention to business strategy. In reality, the company has some business strategies, but they are not built upon a logic process and scientific base. Together with the economic development, the competitive pressure increase more and more for enterprises.
Business environment factors keep changing, which require enterprises to have long-term strategic orientation as well as the adaptability 6 to these changes. For long term effective existence and development, enterprise needs a good strategy with a suitable implementation plan, which should be detailed according to defined objectives. Therefore, planning and selecting an optimum strategy is essentially important for the enterprises. As a moderate people’s enterprise, the Hai Phat Investment Company gradually affirmed its position in the general economic development.
However, the business strategy of the company is presenting many critical issues to be resolved. This encouraged a research on “Business strategy of Hai Phat Investment Joint Stock Company during 2010-2020.”As a leader of the company and a member of this research team, we decided to choose the topic: “Business strategy for urban housing development for Hai Phat Investment in the period of 2011-2020” for the capstone project. We do hope that, this research will be come an important reference documents for business strategy formulation and implementation of Hai Phat company. Research problem - External environmental factors influencing the business strategy formulation - Internal factors influencing the business strategy formulation - Business development orientation to 2020 for Hai Phat Investment Company is based on the link between theory and real situation analysis 3.
Research Objectives - Study literature issues on building and implementing business strategy - Apply theoretical issues in planning and implementing business strategy at Hai Phat Investment Joint Stock Company. Working out solutions to implement the business strategy of the company during 2010-2020 4. Research objects and scope - The research focus on business strategy planning of enterprise - Research scope” Business strategy planning of Hai Phat Investment Joint Stock Company to 2020. The research will focus only on the urban housing development acitivites of Hai Phat.
Research methods - Documentary methods: The documents to be reviewed including publications, survey results, maps, statistics, reports… on the business operation of the enterprise and relating issues. - Qualitative methods: interview and consultancy with some leaders, managers of the enterprise as well as outside experts in relating with enterprise for management and business. The discussion should be focused on basic issues of strategic management over the past. - Statistical method, information and data analysis and synthesis 6.
Expected results - Strategic Analysis (Analysis of the macro environment, competitive environment and internal environment) for the Hai Phat Investment Joint Stock Company; - Proposal of business strategy and some fundamental solutions during strategic implementation in order to improve the competitive position, increase the business effectiveness. Limitation Despite many efforts of the research team, but the research outcomes are still limited. - Information and statistics are not collected sufficiently for the objective and concrete analysis and evaluation. - Strategy and suggested solutions are applied with the flexibility on the business features of each company.
Capstone Report structure Beside the introductory and conclusion, the thesis includes 3 chapters: Chapter I: Theoretical Background Chapter II: Analysis on the business strategy of Hai Phat Investment JSC. Chapter III:Building business strategy for Hai Phat Investment JSC., period 2010 – 2020 8 CHAPTER I THEORETICAL BACKGROUND 1. Overview on Strategic management 1. Definitions Due to different approaches to strategy, its definitions are various.
Liam Fahey van Rober M.Randall believed that strategy can be understood as the premium approach taken concerning processes, attitudes, human resources, tangible asset, technology and information power, competitiveness, capacity, and resources. In a 1996 Harvard Business Review article and in an earlier book, Porter argues that competitive strategy is "about being different." He adds, "It means deliberately choosing a different set of activities to deliver a unique mix of value." In short, Porter argues that strategy is about competitive position, about differentiating yourself in the eyes of the customer, about adding value through a mix of activities different from those used by competitors. In his earlier book, Porter defines competitive strategy as "a combination of the ends (goals) for which the firm is striving and the means (policies) by which it is seeking to get there." Thus, Porter seems to embrace strategy as both plan and position. While Henry Mintzberg, in his 1994 book, The Rise and Fall of Strategic Planning, points out that people use "strategy" in several different ways, the most common being these four: 1.
Strategy is a plan, a "how," a means of getting from here to there. Strategy is a pattern in actions over time; for example, a company that regularly markets very expensive products is using a "high end" strategy. Strategy is position; that is, it reflects decisions to offer particular products or services in particular markets. Strategy is perspective, that is, vision and direction.
Mintzberg argues that strategy emerges over time as intentions collide with and accommodate a changing reality. Thus, one might start with a perspective and conclude 9 that it calls for a certain position, which is to be achieved by way of a carefully crafted plan, with the eventual outcome and strategy reflected in a pattern evident in decisions and actions over time. This pattern in decisions and actions defines what Mintzberg called "realized" or emergent strategy. Mintzberg’s typology has support in the earlier writings of others concerned with strategy in the business world, most notably, Kenneth Andrews, a Harvard Business School professor and for many years editor of the Harvard Business Review.
Strategy can be defined in many ways, including the following useful examples: - According to the text book published by the National Economics University (2000), it’s summarized that: strategic management focus on the premium combination among management fields, marketing, finance/accounting, production/operation, R&D of information systems to achieve the business success. Historically, the fundamental meaning of strategic management is enabling organization to formulate better strategies by more professional and reasonable application and better approached concerning strategic selection. In other words, Strategy is the pattern of activities to be followed by an organization in pursuit of its long-term purpose’, includes its ‘placing’ within the movement. In simple terms: ‘Where we are now, where we want to go and how we intend to get there’.’ Strategy is an agreed-upon course of action and direction that helps manage the relationship between an organization and its environment.
The goal is to achieve alignment or synergy so that an optimal flow of resources to the institution is achieved. Strategy can also be defined as the process of identifying, protecting, leveraging and renewing the strategic capabilities of an organization through its definition of purpose its organization and processes, and its choice and support of people. So, what most concerned strategy can be: - An understanding/assessment of the organization’s resources and capabilities - An understanding/assessment of the external environment - From these, a decision on the best way to use and apply the former to achieve an agreed aim in the latter. Types of business strategies *By scope of business strategy: Grand strategy (Overall strategy): Grand strategy usually mentions the most important and common issues with long term direction.
Grand strategy is vital for the business survival.