TOPIC: BUILDING BUSINESS STRATEGY DOMESCO MEDICAL IMPORT-EXPORT JOINT- STOCK COMPANY IN THE PERIOD 2010 - 2014 Group No. Le Quang Huy 2. Nguyen Duy Ky 3. Nguyen Thanh Nguyen 4.
Bui Ngoc Thiên Y 5. Bui Tat Thanh THANKS 1 Over time study learning Master of Business Administration International Program by Griggs University (United States), members of group 7 was collected by many important knowledge , help work management in our company. Special subjects "Strategic Management" is a general knowledge of all subjects before, helps businesses manage a panoramic view of their business, helping us options and planning strategies for business units. With topics that the group seven made the following, taken from a practical business unit in Vietnam where a member of the working group.
We sincerely appreciate your guidance teachers in subject areas, as well as teachers of the program have suggestions for us to complete the subject. We would like to thank leaders of Domesco Medical Export-Import Joint stock company created conditions, providing information and data for us perform written papers of us. Collective group 7 CERTIFICATION 2 Representatives Domesco Medical Export-Import Joint stock company - Vinh Branch confirming that we provide data and information of the company within the research project for them: 1. Le Quang Huy 2.
Nguyen Duy Ky 3. Nguyen Thanh Nguyen 4. Bui Ngoc Thien 5. Bui Tat Thanh to proceed with writing their projects.
I confirm the data on the exact information with content that Domesco Medical Export-Import Joint stock company allowed in all public companies. DOMESCO MEDICAL IMPORT EXPORT JOINT STOCK COMPANY VINH BRANCH DIRECTOR Pharmacist. LE PHU SUNG TABLE OF CONTENTS Page no. The urgency of the subject ………………………………………………………….
Objects and scopes of the research:…………………………………………………11 4. Structure of subjects ……………………………………………………………….12 CHAPTER I: THEORETICAL BASIC……………………………………………………….13 CONCEPTS, CONTENT OF STEP USED IN BUILDING BUSINESS STRATEGIES………………13 1.1 The concept of business strategy:………….2 The steps to build strategy: ………………………………………………………14 1.1 The stage sets up strategy. The stage of implementing strategy………………………………………………14 1. The stage of evaluating strategy……………………………………………….
ANALYSIS OF BUSINESS ENVIRONMENT ACCORDING TO PEST: ………………. Institutional factors – the Law ……………………………………………………. The socio-cultural factors:…………………………………………………………16 1. ENVIRONMENTAL ANALYSIS ACCORDING TO MICHEAL PORTER:………17 1.
The competitive pressure of suppliers………………………………………………18 1. The competitive pressure from customers…………………………………………. The competitive pressure from potential entrants:………………………. The competitive pressure from substitute products:………………………………20 1.
Internal competitive pressure in the industry……………………………………20 1. COMPANY ANALYSIS BASED ON SWOT…………………………………….5 BCG GROWTH MATRIX MODEL……………….…………………………………22 CHAPTER II: REAL SITUATION OF ENTERPRISE ANALYSIS ……. OVERVIEW OF DOMESCO ………………………………………………………24 2.1 General Information, the process of formation and development of Company……24 2.1 General information about the company…………………………………………24 2.2 Functions and tasks of the company…………………………………….1 Main line of business…………………………………………………….3 The Company's main products include:……………………………………. Organizational structure of management ……………………………….5 The cultural identity: Solidarity, sharing and developing the community……27 2.7 Slogan: DOMESCO - for quality of life………………………………….8 Logo: The logo of the two acronyms - Dong Thap…………………………….6 Location of Domesco in industry …………………………………………………28 4 2.2 Market share and distribution system………………………………………….
OVERVIEW OF THE VIETNAM PHARMACEUTICAL INDUSTRY ………………………29 2.1 Industry is in growth phase……………………………………………………….1 Increased drug consumption:……………………………………………………29 2.3 Increase the business standard:…………………………………………………31 2.2 Depending materials import………………………………………………………32 2.3 Main products are not high in value………………………………………………32 2.4 Distribution system characteristics……………………………………….3 ANALYSIS RESULTS OF BUSINESS OF DOMESCO MEDICAL IMPORT EXPORT JOINT STOCK… 34 2. Fluctuation assets analysis of the company ……………………………………34 2.2 Fluctuating capital Analysis of the Company……………………………………37 2.3 Results of business operations Analysis of the Company…………………………38 2.4 Financial index Analysis……………………………………………………….5 Analysis of the ability to create money of company… ………………………….6 Evaluation of the financial policy of the Company…………………………….7 Analysis of financial potential compared to competitors…………………….8 Analysis Dupont compared to competitors……………………………………….9 The changes to the financial situation in 2009…………………………………. ANALYSIS BUSINESS ENVIRONMENT BASED ON PEST…………. Business environment analysis …………………………………………………….
Analysis of environmental politics and law policy …………………………. Analysis of cultural – social environment ………………………………………52 2. Analysis of technological environment…………………………………………. Environmental analysis based on Michael Porter’s five forces ……………………53 2.
Pressure from potential entrants:…………………………………………………53 2. Competitive pressure of suppliers. Competitive pressure from customers. Competitive pressure from substitute products.
Competitive pressure from internal industry : …………………………………. ANALYSIS OF THE COMPANY’S PRODUCTS STRUCTURE ACCORDING TO BCG …………………. Cardiovascular – diabetes group…………………………………………………. Group of medicinal products, food, and functional food …….
Common products Group ………………………………………………….5 ANALYSIS COMPANY BASED ON SWOT MATRIX…………………………………61 CHAPTER III: BUILDING STRATEGY AND PERFORMANCE SOLUTIONS………………64 3. DETERMINING OBJECTIVES AND STRATEGIES…………………………. SOME SOLUTIONS FOR BUSINESS STRATEGY……………………………………71 3. Human resource solution………………………………………….
Solutions in manufacturing and products. Distribution system solution…………………………………………. Solutions for quality management and science and technology.75 References : ………………………………………………………………………………76 LIST OF ABBREVIATIONS 6 1. JSC : Joint Stock company 3.
WTO : World Trade Organization 4. SWOT: Strengths, Weaknesses , Opportunities , Threats 5. BCG: Boston Consulting Group Matrix 6. PEST: "Political, Economic, Social, and Technological 7.
GDP : Gross Domestic Product 8. ICB: Industry Classification Benchmark 9. GPP :Good Pharmacy Practices 12. EBIT : Earnings Before Interest & Tax 13.
ROE : Return On Equity 14. OTC: Over-the-counter 15. GSP : Good Supply Practice for Pharmaceutical Products 16. GMP: Good Manufacturing Pratice 17.
GLP: Good Laboratory Practice 18. EBT : Electronic Benefit Transfer 19. CPI: Consumer price index 7 Page no. LIST OF TABLES Chapter II: REAL SITUATION OF ENTERPRISE ANALYSIS .1 Company's asset fluctuation in the year 2008.2 Fluctuating capital of the company in 2008.3 Results of business operations Analysis of the Company.4 Financial costs of the company in 2007, 2008.5 :Financial index Analysis……………………………….6: Analysis of the ability to create money of company………….7 Evaluation of the financial policy of the Company.8 Analysis of financial potential compared to competitors.9 Analysis Dupont compared to competitors…………………………….10 Situation of assets and capital resource of the Company.11 : Comparison results of business operations in 2008 and 3, 2009.12 Group graded on production, sales and profit groups products.
LIST OF FIGURES,GRAPHS Chapter I: Basis of methodology .1 Factors affecting the business environment in Pest .2 Model analysis of five competitive pressure M. 23 Chapter II: BUSINESS ANALYSIS THE ISSUE .1 Structure of the company's apparatus .2 The proportion of the company's revenue by business sector in 2008 .3 Graph drug consumption in Vietnam from 2001 to 2008.4 Graph drug spending money / capita from 1993 to 2008 .5 5 Drug consumption in Vietnam from 1993 to 2008 .6 Comparing enterprises VN standard GMP,WHO 1996 to 2008….7 Graph export pharmaceutical raw materials into Vietnam .8 Graph materials imported into Vietnam .9 Structure drug distribution in hospitals in 2008 ….33 Figure 2:10 Table number of establishments in the system of treatment. 33 Figure 2:11 The structure of the drug distribution trade system in 2008. 34 Figure 2:12 Table structure commercial distribution system.
34 Figure 2:13 Comparison Chart 10 countries most exported to VN. 56 Figure 2:14 chart sales, some companies in Vietnam. 57 Figure 2:15 The proportion of drugs imported into Vietnam…………………… 57 9 INTRODUCTION 1. The urgency of the subject In trend the international economy integration More and more deep and wide in recent years has created many chance to enterprise but also has many difficulties and challenges.
There are many successful enterprise, asserts its position in the market but also have enterprise have suffered defeat because of strict law of the market. They must compete with each other not only in quality but also price and other factors. According to stair needs of Maslow , the first and most basic needs are physical and physiological, in particular such as breathing, eating, relaxing, sex, etc. Therefore, human health is a key factor that has never been forgotten.
Today, society are mobilizing and developing with time, parallel with the results and achievements of scientific and technological activities take place by strong, the disease and the health of human are thus also problems that humanity today very mindful to the occurrence of these phenomena, pathological abnormalities that sometimes progress of science cannot keep up. Standing before this great and urgent need, the health sector in general and in particular the pharmaceutical industry is becoming more important for the whole society. According to WTO commitments route starting on January 1, 2009 Vietnam opened the retail market. At that product on the market diversified types, rich patterns and designs.
Thus to survive and develop lasting business should scrap the self in all aspects of production and business activities from the investment and use of capital to organizations producing consumer products. Enterprise must take advantage of that capability, opportunity and choice for themselves a proper 10 direction. In order to get this point, one of the necessary measures that each enterprise must build yourself a business strategy accordingly. Pharmaceutical industry of Vietnam in WTO era, and has experienced extremely difficult periods, but was regarded as the industry is more profitable revenue in 2008 - a time when the economic crisis broke out in stages strong worldwide.
The problem is that despite economic recession, the health of people still need to ensure more and better care, so the need to use drugs in health care is not limited to, it is increasingly increasing the quality and quantity, etc. This reason makes us more interested in choosing firm DOMESCO MEDICAL IMPORT EXPORT JOINT STOCK COMPANY to BUILD BUSINESS STRATEGY in the new period with many challenges. Research purposes Combined with the general fact of the pharmaceutical industry, the economy such as Vietnam have used theory and research, our group 7 in class GeMBA.V01, choose topic: "BUILDING BUSINESS STRATEGY DOMESCO MEDICAL IMPORT EXPORT JOINT STOCK COMPANY PERIOD 2010 - 2014” From the actual situation in pharmaceutical in general and Domesco in particular, with the objective view of the outsider after completion of subject Strategic Management of GeMBA Program of Griggs University; and with the subjective view of insider, we propose the solutions business strategy for companies in the new period. Objects and scopes of the research: Objects of research: Business Environment, environmental industry, environmental affairs of DOMESCO MEDICAL IMPORT EXPORT JOINT STOCK COMPANY Time: From 2007 to period 4th of 2009 Scope of research: Financial, personnel, products, distribution systems and marketing activities.
Research methodology: Data collection method Statistical, synthetic, table expression methods. Method of analysis and comparison. SWOT matrix method. BCG growth matrix method 5.
Structure of subjects Includes three chapters: Chapter 1: Theoretical basic Chapter 2: Analysis of state enterprises Chapter 3: Solutions and conclusions. 12 CHAPTER I: THEORETICAL BASIC 1. CONCEPTS, CONTENT OF STEP USED IN BUILDING BUSINESS STRATEGIES.1 The concept of business strategy: Strategy is the direction and scope of the organization in the long term: strategy will bring advantages to organizations through the optimum arrangement of resources in a competitive environment to meet market demand and expectation of the capital contribution. In other words, the strategy is: • Where businesses trying to reach in the long term (directions) • Companies have to compete on the market and what types of business activity carried out on the market (market, size)? • Companies will be how to work better than competitors on the market (advantage)? • What resources do (skills, assets, finance, relationships, technical capacity, equipment) need to be able to compete (the resources)? • The factors from the external environment affect the competitiveness of enterprises (environment)? • The values and expectations that people have the inside and outside the enterprise need is what (the capital contribution)? Business Strategy - relating to the overall objectives and scope of the enterprise to meet the expectations of the capital contribution.
This is an important level because it is heavily influenced by investors in enterprises and at the same time it also guides the process of strategic decision making across the enterprise. Business Strategy is often presented in a clear "mission statement". Business Strategy - more related to how a business can compete successfully on 13 a specific market. It relates to strategic decisions about product selection, to meet customer needs, gain a competitive advantage over competitors, exploit and create new opportunities, etc.
Business strategy work - related to each part of the business will be organized how to achieve the strategic direction the company level and each department in the enterprise.