GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Subject: BUILDING THE BUSINESS STRATEGY OF VIETNAM CONSTRUCTION JOINT STOCK COMPANY NO. 21 – VINACONEX IN THE PERIOD OF 2011 -2015, VISION BY 2020 Group No : 10 Class : GaMBA01. Nguyen Quoc Dung 2. Ngo Van Dung 3.
Le Thi Thu 4. Nguyen Thi Xuan Hoa Hanoi, November 2011 1 COMMITMENT We hereby commit that the contents of this capstone have not been submitted to any master’s degree program as well as other degree programs. We also commit that this capstone is the attempts of all members in group 10 - GaMBA 01. All results, analyses, inferences of this capstone (excluding quoted parts) are the findings of our group.
SINATURE OF MEMBERS Nguyen Quoc Dung Ngo Van Dung Le Thi Thu Nguyen Thi Xuan Hoa 2 ACKNOWLEDGEMENT We would like to thank Center for Educational Technology and Career Development (ETC), VNU, as well as lecturers and officials of the faculty for having wholeheartedly taught, guided and facilitated us during our study process at class GaMBA 01.X0410 for the course completion. We also would like to express our gratitude to all teachers who have taught and guided us enthusiastically and responsibly in order to help us research and fulfill this capstone successfully. Finally, we would like to thank Board of Directors and officials of departments from Vietnam Construction Joint Stock Company No. 21 – VINACONEX for having created favorable conditions to help us collect factual data to fulfill this capstone.
Thank colleagues, friends and family for encouraging and supporting us. Faithfully thank! 3 TABLE OF CONTENTS PREAMBLE: Page 1. The urgency of the subject ……………………………………………………. Scope of research ………………………………………………………………10 4.
Method of research …………………………………………………………. Structure of the subject ………………………………………………….10 CHAPTER 1: THEORETICAL FOUNDATION OF BUILDING THE BUSINESS STRATEGY ………………………………………………………………….1 Theoretical foundation of strategy ………………………………………….1 Concept of strategy ………………………………………………………. Concept of strategic management ………………………………………. Roles and tasks of strategic management …………………………………12 1.
Roles of strategic management ………………………………………. Tasks of strategic management.2 Build the business strategy……………………………………………. Vision, mission and objectives of the strategy ……………………………13 1. Strategic vision and mission.
Analysis of external environment………………………………………. Analysis of general environment…………………………………………17 1.2 Analysis of industry environment …………………. External Factor Evaluation - EFE Matrix. Competitive Profile Matrix (CPM).3 Internal Factor Evaluation – IFE Matrix ………………………………….
Selecting the business strategies. Quantitative Strategic Planning Matrix (QSPM)……………………….22 CHAPTER II: ANALYSIS OF THE REAL SITUATION OF VIETNAM CONSTRUCTION JOINT-STOCK COMPANY NO. Introduction about Vietnam Construction Joint-Stock Company No. History on the establishment and development of the company……….2 Function and mission of the Company.
The current business position of the company .5 The characteristics of the company ………………………………………. The results of business activities of the Company. The development orientation of the company in the next time………….2 Analysis of the external environment …………………………………………. Political environment, law and policy ………………………………….
Social – cultural environment ……………………………………………34 2. Barrier joining the industry ……………………………………………. Using EFE matrix to evaluate the external competitive factors. Using competitive profile matrix.
Analysis of internal environment ……………………………………. Analysis of financial situation of the Company in 2008 - 2010…………. Assets and capital resource of the company. Analysis of management situation of the company ….
Situation of using technology, facilities of the company. Analysis of Marketing activity of the company…………………. Activity of market research………. Activities of Communication, product distribution, price.
Capacity of supervision. Internal factor environment evaluation (IFE Matrix).…53 CHAPTER III: SELECTION AND ESTABLISHMENT OF BUSINESS STRATEGY FOR VIETNAM CONSTRUCTION JOINT STOCK COMPANY No. Strategic goals of the Company period 2011 - 2015 and vision by 2020……. Basis for goal setting.
Goals of the Company period 2011 -2015…………… ………………. Orientation of strategic goals…….2 Analysis of SWOT matrix….3 Analysis of I-E Matrix….4 Analysis of BCG matrix. Figures for BCG matrix……….5 Identification of business strategies of Vietnam Construction Joint Stock Com- pany No.1 Cost leadership strategy.3 Market development strategy (ST). Market development strategy (QSPM Matrix).
Solutions to implement .3 Human resources solutions. Schedule of implementation of business strategies………………………….7 Estimation of revenue, budget and risks. Proposals to Vietnam Construction Joint Stock Company No. Proposals to Vietnam Construction and Import - Export Joint Stock Corpora- tion (VINACONEX).
Proposals to State.72 Appendix 01: Financial plan for the year 2011 - Vietnam Construction Joint Stock Company No.The urgency of the subject From 1986 to present, our country’s economy has made rapid, strong and solid progresses, our country transformed from a centralized economy based on administrative subsidies to an economy towards open market economy and economic integration regionally as well as internationally. How enterprises can do business successfully, profitably, not be bankcrupt, stand steadily in the market economy with severe competition, especially during the period of inflation, economic crisis as today. In order to do that, enterprises should maintain and strengthen the competitiveness, maintenance, expansion of products. Therefore, missions are given: planning, building, implementing the development strategy, business production strategy which are extremely important, essential needs in order to help enterprises be sharp with the change of the market.
Also, enterprises should actively cope with risks, breakdown, failfure in business to exist and develop firmly. Thus, not only our country but also global enterprises has attached much importance to build the business strategy and regarded it as the top mission. Vietnam Construction Joint Stock Company No. 21 – VINACONEX is directly under Vietnam Construction and Import-Export Joint Stock Corporation.
Its forerunner is II Architecture Company in Ha Tay found in 1969. During 42 years of establishment and development, the company has affirmed its position and prestige in the market, been trusted by customers inside and outside the city. However, within the current context that the world economy as well as the domestic economy has met with a lot of difficulties, instability due to high inflation, post-economic crisis. In order to maintain and expand the business market confronting with a lot of difficulties and challenges; in order to exist and develop, the company should take some long-term suitable business strategies in conformity with the change in the society, business production environment, to occupy the market, build the company to be more and more developed, contribute to the success and career of industrialization, modernization.
For all reasons mentioned above, Group 10 of GaMBA01-X0410 selects the subject: “Build the business strategy of Vietnam Construction Joint Stock Company No. 21 – VINACONEX in the period of 2011-2015 and vision by 2020” with the aim of suggesting the 9 most suitable business strategy for Vietnam Construction Joint Stock Company No. 21 – VINACONEX in the period of 2011-2015. Research objectives Research the subject aims at: - Systematize and summarize theoretical matters of business strategy and building the business strategy.
- Help students obtain skills to practice building the business strategy of Vietnam Construction Joint Stock Company No. - Analyze and evaluate opportunities, challenges, strengths, weaknesses of Vietnam Construction Joint Stock Company No. - Build the orientation of the development strategy in the period of 2011-2015 and vi- sion by 2020 for Vietnam Construction Joint Stock Company No. Scope of research Scope of research is the business production environment of Vietnam Construction Joint Stock Company No.
21 – Vinaconex in the period of 2008-2010. Method of research The subject has applied the following methods: Qualitative and quantitative approaches: Method of comparison, analysis and synthesis: Analyze the data from the financial statements through periods, summarize and make comments Method of matrix analysis to analyze and handle research results of environment, help- ing enterprises to make strategies scientifically, etc… Statistical and analytical approaches: table statistics, then withdraw inferences of trends to evaluate the operation situation of the Industry and enterprises. Structure of the subject 10 Apart from the preamble and conclusion, the subject is divided into three chapters: Chapter I: Theoretical foundation of building the business strategy. Chapter II: Analysis of the real situation of Vietnam Construction Joint Stock Company No.
Chapter III: Selection and establishment of business strategy for Vietnam Construction Joint Stock Company No. 11 CHAPTER I THEORETICAL FOUNDATION OF BUILDING THE BUSINESS STRATEGY 1. Theoretical foundation of strategy 1. Concept of strategy “Strategy” derived from the Greek “Strategein” means art and science as a general.
Art of commanding means to defeat the opponent. There are a lot of definitions of strategy, Michael Porter defined that: “Strategy is an art of building solid competitive advantages for defense”. Arlleret defined that: “Strategy is the determination of roads and means to achieve given objectives through policies”. Gluecl defined that: “Strategy is a type of comprehensively unified and synthetic plan designed for ensuring that corporate objectives shall be implemented”.
What is strategy? According to MBA program – GRIGGS: Strategy is a mass of commitments and actions to mobilize all resources of an organization and individual in order to achieve a certain objective. Concept of Strategic Management Strategic management is art and science of building, implementing and evaluating decisions in relation to many functions allowing an organization to achieve given objectives. Strategic management focuses on unifying management, marketing, finance-accounting, production, market research and development and information systems of lines of business to achieve the success. Strategic management includes processes: Building strategy, implementing strategy and controlling the process of implementing as-built strategy.3 Roles and tasks of strategic management 1.1 Roles of strategic management - Business strategy helps enterprises clearly recognize their purposes, directions as a guideline for all business production activities of enterprises.
- Business strategy helps enterprises catch and take advantage of business opportunities, and take proactive measures to overcome threats and risks in the fiercely competitive market. 12 - Business strategy contributes to enhance the effectiveness of resources, strengthen the competitiveness of enterprises, ensuring their sustainable development. - Business strategy creates strong foundations for proposing policies and decisions on business production in conformity with the market fluctuations.2 Tasks of strategic management - Create a strategic aspect describing the future image of enterprises, clearly determine where the enterprise shall go, how it shall become. So, provide a long-term orientation, specify the image which the enterprise wants to become, transmit it emotion of purposeful action.
- Build objectives: transform from strategic perspective to specific achievements which the enterprise must obtain. - Build strategy to achieve expected objectives. - Enforce and manage selected strategies effectively and efficiently. - Evaluate the implementation and carrying-out of perspective adjustments, long-term orientation, objectives, strategy or the implementation based on experience, variable conditions, new initiatives and opportunities.
Build the business strategy 1.1 Vision, mission and objectives of the strategy.1 Strategic vision and mission - Strategic vision is values which the enterprise strives for the future achievement (What do you want to become), pursuing markets or products needed to innovate technology in order to create differentiation or cost reduction, etc… Vision helps enterprises, organizations to catch market opportunities and create competitiveness in the business world. Unifying the operation process in order to achieve objectives and strategic tasks of the enterprise, and this will pro- mote the enterprise to use limited resources in most effective way. Therefore, enterprises should rapidly catch opportunities in the business world, make the most of available capabili- ties to create new competitive advantages. 13 - Strategic mission is to help enterprises determine their position in the future.
It must answer the question “Who are we and what are we doing?” In the future, which type of prod- ucts shall the corporate capacity supply to customers? etc, … 1. Strategic objectives: Strategic objectives made from functions and tasks are more specific and may change in a certain period. There are 2 types of objectives: short-term and long-term ones. - Long-term objective (from 3 years and above but depend on industry): determine a big direction but not go into the details or fix a specific figure.
- Short-term objective (to 1 year and also depend on industry): specifically direct and guide long-term objectives of the enterprise.2 Analysis of external environment: Analysis of external environment is analysis of aspects in a wide society having an influence on a industry and internal companies. The external environment is divided into macro environment and industry environment.