GRIGGS UNIVERSITY, THE USA GLOBAL ADVANCE MASTER OF BUSINESS ADMINISTRATION CAPSTONE PROJECT GENERAL BUSINESS STRATEGY FOR UHY AUDIT & ADVISORY SERVICES LIMITED FROM 2012 TO 2016 GROUP 10 PHAM GIA DAT NGO CHI TINH LUONG QUANG PHONG NGUYEN THI TUYET MAI CLASS: GAMBA01.N06 HANOI, SEPTEMBER 2011 GaMBA01.N06 - Capstone - Group 10 Foreword FOREWORD Our group has four members from different organization: 1. Ngo Chi Tinh (group leader) - HD Bank 2. Pham Gia Dat - UHY Audit & Advisory Services Limited (UHY Vietnam) 3. Luong Quang Phong - Vietcombank Leasing 4.
Nguyen Thi Tuyet Mai - The Vietnam Development Bank Although we have different knowledge base, real experience and working environment, we all have very valuable contribution to the topic section for the capstone. We all agreed on the selected topic after conferences. The topic was selected due to all members' demand for studying rationale and implementation for the company's business strategy. We chose UHY Audit & Advisory Services Limited whose status, potential development, business environment, scale, organization system and standard operation management is highly appriciated in the market.
Approved by UHY Audit & Advisory Services Limited, we choose the topic “General business strategyBusiness strategy of UHY Audit & Advisory Services Limited in 2012 - 2016”. By the way, we would like to present our gratitude to Capstone assessment committee, leadership in UHY, lecturers and GaMBA program with their great support in our capstone. Due to time and word limitation, we do not analyze solutions for functional strategybusiness strategy development deeply and present functional activities specifically. However, we do believe that out research result is truely practical to UHY Audit & Advisory Services Limited's business strategy in the period 2012 to 2016.
Best Regards, Group 10, GaMBA01.N06, Griggs University và VNU-Hanoi (Ngo Chi Tinh, Pham Gia Dat, Luong Quang Phong, Nguyen Thi Tuyet Mai) 1 GaMBA01.N06 - Capstone - Group 10 Foreword Hanoi, September 2011. TABLE OF CONTENT Content Page FOREWORD. 2 TABLE OF CONTENT.3 LIST OF ABBREVIATIONS.5 LIST OF TABLES.6 LIST OF GRAPHICS. 1 The necessity and significance of the research.1 Methodologies applied for the study and analysis.
The theory of business strategy and strategic management. The theory of business strategic management. The concept of business strategy. The role of business strategy.
Business strategy classification:. Definition of strategic management. Content and significance of strategic management. Theory of business strategy implementation.
Theory of business strategy through models. Theory of external environment through PEST analysis. Sector environment analysis through five-force model of Michael Porter. External factor evaluation (EFE).
Internal factor evaluation (IFE). Internal and external factor evalution (IE). SWOT analysis summary.N06 - Capstone - Group 10 Foreword I. Typical management in service companies.
ASSESSMENT AND COMPLETION OF BUSINESS STRATEGY OF UHY VIETNAM. Overview off UHY's business strategy. Over of the company. About UHY International.
About UHY Vietnam. Overall analysis of UHY Vietnam. Audit & Advisory service business environment. Management mechanism and operation management model.
Relations with career organizations and communities. UHY's current status in the Vietnam audit market. The general strategy of UHY Vietnam. Vision and mission.
Strategic goals and general plans. Business advantages and core competencies. Business strategy implementation analysis and evaluation of UHY Vietnam in the period I (from 2006 to 2011). Evaluating result of strategic target.
Evaluation of general target implementation. Evaluation of specific target implementation. Marketing strategy analysis - Marketing performance assessment. Evaluation of organizational development, system improvement.
Evaluation of scale target implementation. Evaluation of human resource management strategy. Evaluation of financial target and cause analysis.N06 - Capstone - Group 10 Foreword PART 3. UHY'S BUSINESS STRATEGY IMPLEMENTATION IN THE PERIOD II (FROM 2012 TO 2016).
UHY's business environment analysis in the period II. Analysis of Opportunities and threats from business environment of UHY 38 I. Macro-environment factor analysis (PEST model). Political and legal factors.
Analysis of movement in audit sector (five forces model - M. Forces involved in the auditing industry. Analysis of external factors evaluation (EFE). Analysis of competition matrix.
Analysis of UHY's strengths and weaknesses in the period II (2012-2016) 46 I. Internal resource analysis. Professional technique and experience. Relationship building and developing capacity.
Analysis of internal factor evaluation (IFE) of UHY Vietnam. Synthetic analysis if internal-external factors (IE). Business operation analysis (SWOT model). Marketing and communication.
Organization and operation management. Human resource management. Technology, technique and information. Overview and analysis of UHY's strategic status in the period II.
Strategy developing for the period II. Strategic goal specification for the period 2012-2016. UHY Vietnam's market targets till 2016. UHY Vietnam's target of business scale till 2016.
Performance and business efficiency targets.N06 - Capstone - Group 10 Foreword II. UHY Vietnam's business status until 2016. Developing strategies and implementation. Analysis of GREAT model.
Analysis of QSPM model. UHY's strategy implementation in the period II. Solutions and specific activities to implement the strategy. Solutions on the market and services.
Solutions for operation management. Solutions for human resource. Solutions for information technology. Solutions for general operation management.
Schedule division for strategy implementation. Developing annual targets. Specific operation for each year. Conditions to implement strategies.
Strategy of combination of all levels and departments:. Administration and progress supervision. Strategic performance check and evaluation.N06 - Capstone - Group 10 Foreword LIST OF ABBREVIATIONS GRIGGS or Griggs University .Griggs University, the USA VNU-Hanoi. Vietnam National University Hanoi UHY, UHY Vietnam, the rand, or the company.UHY Audit and Advisory Services Limited UHY International.Urback Hacker Young International Limited SSI.
State Securities Commission VACPA.Vietnam association of certified public accountants Big4.4 biggest audit firms in the world (Deloitte Touche Tohmatsu, .PriceWaterhouseCoopers, Ernst and Young, KPMG) Top20.Top 20 leading audit firms in Vietnam (excluding Big4) SWOT.Competing capacity analysis .Macro business environment analysis model .Internal Factor Evaluation Matrix EFE……………………………………………….External Factor Evaluation Matrix IE………………………………………………………….Internal – External Matrix GREAT….GREAT Matrix (Gain, Risk, Expence, Achivebility & Time) QSPM…………………….Quantitative Strategic Planning Matrix M. Michael Eugene Porter ……………………………. Harvard Business University 6 GaMBA01.N06 - Capstone - Group 10 Foreword LIST OF TABLES Table 1-1.Competitive strategy summary Table 1- 2 ……………………………………………………………. GREAT Matrix Table 1- 3……………………………………………………………….
QSPM Matrix Table 2-1 … Status ranking and analysis of UHY in the Vietnam audit market in 2010 Table 2-2.UHY's revenue structure on services (2009-2010) Table 2-3.UHY's revenue structure on groups of client (2009-2010) Table 3-1………………………………. UHY’s competition matrix Table 3-2………………………….………… UHY’s External factor evaluation (EFE) Table 3-3……………………………………………. UHY’s Internal factor evaluation Table 3-4………………………………………………………. UHY’s Internal factor Table 3-5……………………………………………….
UHY’s GREAT factor matrix Table 3-6 ……………………………………………………….UHY’s QSPM matrix Table 3-17:.UHY’s annual business goals (2012-2016) 7 GaMBA01.N06 - Capstone - Group 10 Foreword LIST OF GRAPHICS Graphic 1-1:. Business strategy implementation Graphic 1-2:. PEST model Graphic 1-3:. Five competitive forces model of M.Internal – External Matrix (IE) Graphic 1-45:.
SWOT matrix Graphic 1-5:. Function-based business administration model Graphic 1-6:. Functions in service business Graphic 2-1: .UHY International’s in the world Graphic 2-2:. Business environment of audit sector Graphic 2-3:.
Model of management basing on functions of UHY Vietnam (2006- 2011) Graphic 2-4:. Criterion-based ranking chart of audit firms in Vietnam Graphic 2-5: ….Criterion-based ranking chart of UHY Vietnam in the audit sector Graphic 2-6: .UHY Vietnam's annual growth (2006-2011) Graphic 2-7: .Diagram of UHY business growth (2007-2011) Graphic 2-8: .Revenue rate structure on each service in 2010 Graphic 2-9: .Revenure rate over clients in 2010 Graphic 3-1: .The business environment of UHY Vietnam (2012-2016) Graphic 3-2: .SWOT analysis of competitive capacity of UHY (2012-2016) Graphic 3-3: .UHY's service structure movement (2012-2016) Graphic 3-4: .UHY's corporate administration model (2012-2016) Graphic 3-5: .UHY's functional activities implementation (2012-2016) 8 GaMBA01.N06 - Capstone - Group 10 Foreword 9 Capstone - Group No.N06 Prologue PROLOGUE Problem Statement Since its establishment, each enterprise does care much about and invest in defining business objectives, plans and operation in order to make highest profit. The plans and strategies depend much on managers' vision of movement of all elements in business, strengths and core competences of their own companies. Business strategy is long- term and throughout orientation for firms to direct operation in each departments.
An appropriate business strategy can orient the firms soundly and stably, from that all resources are fully taken advantage of to reach the set goals. The necessity and significance of the research Appeared in Vietnam in 1991, independent audit activity has made certain achievements, contributed to development of national economy in general, investment and financial market in particular and helped Vietnam integrating with the world economy. Although the number of Vietnam audit companies keeps increasing, moreover famous foreign audit firms have entered the domestic market with fierce competition, supply and technical capacity in the sector has not met the demand and expectation of the insuring and advisory service market. Despite many opportunities for development in the market, audit companies are still facing competition to survive.
They also face the risk of rejection due to regulations, professional standards and the State's governance and participants' supervision in the market. Therefore, improvement of resource management and operation to enhance the service quality and financial efficiency is a vital principal of Vietnamese audit firms currently. In recent years, UHY Audit & Advisory Services Limited (UHY Vietnam) did define the targets, strategies and business management to achieve the set goals. In six years of operation, UHY Vietnam has completed the first phase in the business strategy to 2016 and is moving on the second one.
The strategic target set to 2016 is to support Capstone - Group No.N06 Prologue UHY Vietnam to become one of 10 leading audit firm in Vietnam basing on these principle: firm position, scale, total service revenue, professional capacity and business effectiveness. Our topic - research objective is: "General business strategyBusiness strategy for UHY Audit & Advisory Services Limited from 2012 to 2016". Research methodology, result and set goals will be stated in this study: Business environment will be analyzed comprehensively, result of the strategy for UHY Vietnam from 2006 to 2011evaluated and plans drawn up to achieve the set business goals in the period. Methodologies applied for the study and analysis The study is based on systematic theories on business strategy, strategy management, strategy application and practice in UHY Vietnam through specific strategies and models.
The analytic technique for accessing the result of the business strategy of UHY Vietnam in the previous period was aimed at finding out how to be successful and what are weaknesses. Besides, comprehensive analysis of business environment and updating big changes affecting the strategic goals are bases for proposal plans to reach complete the strategy of UHY Vietnam in the next period. Those above are three main parts in this study. We do hope and believe that the result of this research is really useful for strategic management mission of UHY Vietnam.
Capstone - Group No.N06 Part 1: Rationale PART 1. RATIONALE The main task of this study is to perfect and propose functional business strategies to complete the general business strategyBusiness strategy in 2012 - 2016 of UHY Audit & Advisory Services Limited (hereinafter called UHY or UHY Vietnam or The Company). Our rationale is the general theory of business strategy, strategic performance management as well as analytic model studied in the GaMBA program. At the same time, we access the result of the strategy performance in 2006 - 2011 of UHY, analyze the situation in the company, internal and external factors; and base on theories and rationale analysis on the business context of the company in the next five years.
Then, we propose specific functional business strategies to complete the general strategy of UHY Vietnam from 2012 to 2016. The theory of business strategy and strategic management I. The theory of business strategic management When entering the market, every firm needs to define certain goals which might be throughout the whole business process or just adjusted for each operation phase. At the same time, the company should identify and select ways to achieve the set goals.