Group 3 Class: GeMBA01.V01 Capstone Project Report Table of contents Page Preface 3 Chapter I: Generally theoretical basis of business strategy and 5 Establishment of enterprise’s business strategy. I / Business strategy and levels of strategy 5 1. Concept business strategy and strategic administration. Role of business strategy for enterprise’s development 5 3.
Levels of strategy 5 II / Establishment of enterprise’s business strategy 6 1. Requirements and grounds in establishment of business strategy 6 2. Concepts to be grasped thoroughly on establishing business strategy 7 3. Procedures of business strategy establishment 7 4.
Models of strategy analysis 12 Chapter II: Analysis of reality of business strategy establishment 15 in Truong Son Construction Corporation. Process of formation and development and Primary technical and 15 economic features influencing strategy establishment in Truong Son Construction Corporation. Process of formation and development of Truong Son Construction 15 Corporation. Primary technical and economic features influencing business 16 strategy establishment in Truong Son Construction Corporation II.
Analysis of reality of business strategy establishment in Truong 21 Son Construction Corporation in stage of from 2006 to 2010. Analysis of business environment 21 2. Determination of objective 30 3. Measures of objective execution 34 III.
Reality of strategy management organization 37 IV. Real situation of professional staff executing strategy 39 establishment V. Evaluation on reality of business strategy establishment in Truong 40 7011Chiencq;Duonghv;Sonlh;Huongpt. 1 Group 3 Class: GeMBA01.V01 Capstone Project Report Son Construction Corporation 1.
Cause of shortcomings 44 Chapter III: Some proposals of business strategies in Truong Son 46 Construction Corporation. Direction of business strategy establishment in Truong Son 46 Construction Corporation. Some proposals of strategy establishment in Truong Son 48 Construction Corporation until 2020. Completion of process of business strategy establishment in Truong 48 Son Construction Corporation.
Strategy management mechinery in Truong Son Construction 64 Corporation. Improvement of quality of planning staff. 64 In conclusion 66 References 67 7022Chiencq;Duonghv;Sonlh;Huongpt. 2 Group 3 Class: GeMBA01.V01 Capstone Project Report Preface 1.
Why choose the topic After twenty years of our State and Party’s execution of economic renovation, especially from open-door for integration, Vietnam economy has considerately prospering. Process of shifting in the economy from centralized planning mechanism to socialist oriented market mechanism, first and foremost Vietnam’s full membership of WTO on January 11 th, 2007 has led to increasing polarization among enterprises, increasingly severe and keen competition. For existence and development, enterprises must determine their own duly business strategy. Without business strategy or worthless or erroneous one shall result in fail in business.
After study and investigation of Global advanced master of business administration program associated by Griggs University, United State and postgraduate department of National University based on study and collection of data on production and business operations of Truong Son Construction Corporation, we realized that the Corporation’s foremost concern is how to have duly direction and reasonable business development forecasts in business and production operations in severe competition environment and rain-storm development of technology science as present. This requires the Corporation’s business strategy establishment must be extremely sharp and level-worthy of organization’s scale. Nevertheless, this operation has had many shortcomings and needs to be appropriately invested for improvement and perfection. This imperativeness created premise for our group to implement research-intensive and choose topic “Business strategy establishment in Truong Son Construction Corporation until 2020” for Group 3’s Final exercise.
The Object of research Research aims to apply generally theoretical basis of strategic administration so as to analyze and evaluate reality of business strategy establishment of Truong Son Construction Corporation in stage of from 2006 to 2010, thence; lessons and experiences are drawn in order to propose completion of this operation in stage of from 2010 to 2020, simultaneously useful solutions are defined and proposed strategy are successfully applied to help the Corporation 7033Chiencq;Duonghv;Sonlh;Huongpt. 3 Group 3 Class: GeMBA01.V01 Capstone Project Report overcome current inflation storm and globally economic crisis in order to become comprehensively powerful Corporation. Method of Research 3. Method of data collection The Primary data collection: By real observing of the corporation, personal interview ( mainly the officer, the staff who work in the aspects of plan, finance, human resource, marketing.) The secondary data collection: Collect from the reports and docucments of the agencies, Statistical Yearbooks, the information in the press, television, internet and legacy previous studies.
Method of Comparison and synthesis: Comparison a target with base (original target) for the data of business results, the parameters of the market, the average target, the other targets can be compared. Conditions of comparing is the data has to fit with the space, time, economic content, units of measurement, methodology, scale and business conditions.3 Statistical methods in the table: Using synthetic data through statistical tables to find trends or common characteristics of the factors analyzed directly. SWOT method: Find out the strengths, weaknesses within the business, opportunities and risks outside the enterprise. This is the key in building business strategy.
Scope of study. Research projects about business production activities of Truong Son Construction corporations to g between 2006 -: -2009 and propose business strategies for this company in the period 2011-2020. Group 3’s capstone project structurally has 3 chapters including the following specific contents: 7044Chiencq;Duonghv;Sonlh;Huongpt. 4 Group 3 Class: GeMBA01.V01 Capstone Project Report Chapter I Generally theoretical basis of business strategy and establishment of enterprise’s business strategy I.
Business strategy and levels of strategy 1. Concept business strategy and strategic administration. There are many different concepts on business strategy and strategic administration, of which the most popular concept is “Business strategy is generalization of long-range objectives, policies and great solutions on business and production, finance and human factor handling in order to develop enterprise’s business operation up to new status in higher quality”. “Business strategy is a series of commitments and actions that a company uses to take competitive advantage by exploiting core capacities in the market ".
"Strategic administration is process of investigating environments at present as well as in the future, planning organization’s objectives, proposing, implementing and inspecting performance of decisions in order to successfully achieve those objectives in environments at present and in the future as well; many investigators stated that strategic administration is both an art and a science ". Role of business strategy for enterprise’s development. Firstly primary function of business strategy aims to create a uniform orientation for types of plans in enterprise. In other words, business strategy helps enterprise be thoroughly aware of its objective and direction, which is guideline for all enterprise’s business operations.
Although only one type of plan has not ensured enterprise to reach their expected goals, strategy is key basis for other plans and policies of operations, therefore; it is preferred to handle first. Secondly together with prompt change and development of business environment, opportunities and threatening risks always exist in the market. At that time, business strategy helps enterprise catch and take full advantage of all business opportunities, take initiative in finding solutions and overcome trapping risks of market. Thirdly business strategy makes contribution to increase performance of enterprise’s resources, strengthen competitive position and ensure its continual and strong development in long term.
7055Chiencq;Duonghv;Sonlh;Huongpt. 5 Group 3 Class: GeMBA01.V01 Capstone Project Report Fourthly establishment and implementation of business strategy creates firm basis for enterprise to propose policies and decision in conformity to market fluctuation. Levels of strategy. In each field, products, market and customers are relatively independent.
These enterprises usually have different strategies for different levels of operations. In general, there are three levels of strategy including: 3. Strategy at enterprise level This strategy determines enterprise’s operation line and position in environment and role of each business line in enterprise. Strategy at business unit level.
It defines position of business line in enterprise and position of branch in environment and specifies how to compete in each its field of operation. Strategy at functional level. This strategy is established to support implementation of strategies at business unit level and at enterprise one, which includes Research and development, Production, Marketing, Personnel and Finance. In words, one unit usually has three distinguished levels of strategies.
However, owing to orientation of strategies, strategies that are at the higher level play more important roles. Establishment of enterprise’s business strategy 1. Requirements and grounds in establishment of business strategy. Requirements On establishment (planning) of business strategies, the following requirements need to be met: - Ensuring increase in enterprise’s strength and attainment of competitive advantage in business world; - Enterprise must determine target market; thereof define safe area in business and specify business scopes and permissible degree of risk; - Specifying key objectives and primary conditions for implementation of those objectives; - Having thorough gasp of information and constructing information system on market, customers, suppliers and competitors; 7066Chiencq;Duonghv;Sonlh;Huongpt.
6 Group 3 Class: GeMBA01.V01 Capstone Project Report - Constructing standby strategies and substitution ones for use if necessary and avoiding passive position which disturbs system when current performance of strategies meets with troubles; - Seizing opportunity and maximally take full advantage of opportunities and having decisiveness. Each enterprise operates business and production in order to seek profits. Therefore, it must produce products for customers and use factor inputs and process optimally so as to create highest quantity of products with lowest cost. However, not only the enterprise produces those commodities and services, many other enterprises that also produce them are competitors of the enterprise.
Accordingly, for attraction of more customers, the enterprise’s products and services must have better designs and quality than competitor’s or the enterprise has better competitive advantage. Consequently, important grounds for establishment of business strategies include: + Customers + Competitors + Enterprise. Economists consider these as strategy threesome that enterprises must depend on to establish their own business strategies. Concepts to be grasped thoroughly on establishing business strategy.
- Establishment of business strategy must be based on exploitation of enterprise’s key factors for taking success; - Establishing business strategy based on promotion of comparative advantages; - Business strategy is established depending on exploitation of new and creative factors; - Establishing business strategy in order to absolutely exploit surrounding factors and key ones. Procedures of business strategy establishment. External environment research and forecast. Analysis of external environment aims to be thoroughly aware of opportunities and threatening risks for enterprise’s business operations.
a) Macro-environment 7077Chiencq;Duonghv;Sonlh;Huongpt. 7 Group 3 Class: GeMBA01.V01 Capstone Project Report a1) Economic factors include: Growth of economy rising new demand for development of economic sectors; inflation rate impacting interest and interest rate of investment; unemployment rate affecting recruitment and demission; and exchange rate influencing banker's rate, financial policies and control of pay price and financial balance. a2) Political factors This group of factors that increasingly keeps important position includes stabilization of public authorities, regulations on tax, charge and fees, rules of labor recruitment and demission, and stipulations of environment protection and safety, etc. a3) Social factors These include life quality, common practice, regional culture and population growth rate, etc.
a4) Natural factors These factors are resources, environment pollution and shortage of energy, etc. a5) Technological factors This type of factors has remarkable and direct influence on enterprise’s business strategy because in age of rain-storm development of technology at present appearance and change of new technologies always create opportunities but not few implicit risks threatening existence and development of enterprise. Therefore, enterprise needs to have strategy of flexible application of technology and science to avoid falling into passive and underdeveloped position. b)Operation environment (Micro) Operation environment includes factors in Industry and are external factors for enterprise, which decides competitive nature and grade in that Industry.
There are five primary factors (five forces model ) including Buyers , Suppliers, substitutes, New entrants, Industry eompetitors. Enterprise must analyze these factors to recognize opportunities and risks that enterprise meets. Research and forecast of enterprise’s factors That is analysis of reality and real ability of enterprise’s resources. Analysis of reality and real ability of enterprise’s resources means analysis of internal factors for recognition of strong movements as well as weak points, thence measures for 7088Chiencq;Duonghv;Sonlh;Huongpt.
8 Group 3 Class: GeMBA01.