CAPSTONE PROJECT REPORT CORPORATE DEVELOPMENT STRATEGY FOR HA DO GROUP JOINT STOCK COMPANY IN THE PERIOD OF 2010-2015 Nguyen Thanh Long Nguyen Duc Toan Pham Ngọc Vu Nguyen Thi Huong Giang GaMBA01-X02 Hanoi - 2010 GaMBA01.X02 Group 3 ACKNOWLEDGEMENT We would like to express our gratitude to the lectures, professors and managers of GaMBA program of Griggs University – Center for Education Technology and Career System (ETC), who have been accompanying us during the training program and providing us with essential information as well as new knowledge in business management From knowledge gained during the program those have been applied in our work, we has learnt how to change the way of thinking and management method, resulting in some specific results. The development of corporate development strategy of the company is an important task to help the company to achieve the its mission and objectives, which has not been managed by the business that we are working for. By knowledge we learnt during the program, we have proposed a corporate development strategy for Ha Do Group, which our group members are working for, to help it to better orient the business, production, enhancing production efficiency and sustainable development. Due to limited time and knowlege, this report might have some weakness.
We welcome any recommendation or suggestion from readers to make the Report on “CORPORATE DEVELOPMENT STRATEGY FOR HA DO GROUP JOINT STOCK COMPANY IN THE PERIOD OF 2010-2015” feasible and practical. Thank you! 2 GaMBA01. 2 LIST OF FIGURES AND TABLES. THE NEED AND MEANING OF THE RESEARCH TOPIC.
OBJECTIVE OF THE RESEARCH. SUBJECT AND SCOPE OF RESEARCH. COMPOSITION AND STRUCTURE OF THE THESIS.9 CHAPTER 1: THEORETICAL BASIS.1 DEFINITION OF THE STRATEGY.3 REQUIREMENTS TO THE STRATEGY.4 BASIS FOR THE DEVELOPMENT OF THE STRATEGY.Error! Bookmark not defined.2 The process of strategic management.3 Analysis of influence of environment on enterprise’s business strategy.1 The economic environment.2 The technological environment:.3 The cultural and social environment.4 The demographic environment.5 The political and legal environment:.6 The global environment is consisted of :.6 Implementation of strategies.28 CHAPTER 2: ANALYSIS OF THE ENTERPRISE’S SITUATION.1 OVERVIEW ABOUT HA DO GROUP JOINT STOCK COMPANY.2 – Establishment and development:.2 ANALYSIS OF EXTERNAL ENVIRONMENT:.1 Analysis of macro environment.1- Political, legal environment.2 – The world and local economic environment:.3 – Natural environment and population:.4 – The cultural and social environment.5 – Technological, scientific and technical environment.2 – Analysis of the sector environment:.1 The potential competitors:.2 The current competitors in the sector.3 Pressure from suppliers:.4 Pressure from the customers:.5 Pressure from alternative products:.6- Matrix on evaluation of external environment:.3 ANALYSIS OF THE INTERNAL ENTERPRISE:.2 Human resource capacity:.3 Analysis of material and technical facility:.4- Analysis of organization and management capability.5 Analysis of production and business capability.6 –Analysis of maketing activities:.7- Internal Environment Evaluation Matrix of HaDo Group.4 SWOT COMBINATION OF HADO GROUP:.7272 CHAPTER 3: SELECTION OF STRATEGIES, SOLUTIONS AND RECOMMENDATIONS.3 – SELECTION OF STRATEGIC PLAN.1- Analasys of strategy group :.4 – STRATEGIC IMPLEMENTATION SOLUTION:. Production and technology solutions:.6- Completion of controlling and evaluation system.ERROR! BOOKMARK NOT DEFINED.91 APPENDIX 1: ORGANIZATION STRUCTURE OF HADO GROUPERROR! BOOKMARK NOT DEFINED.9 Appendix 2 The typical projects those are invested by HADO:Error! Bookmark n 4 GaMBA01.X02 Group 3 LIST OF ABBREVIATION HaDo Group Hado Group Joint-stock Company HaDo Hado Group Joint-stock Company HDG HaDo Group CTCP Joint-stock Company CTCPTD Group Joint-stock Company WTO The World Trade Organization BQP Ministry of National Defense TPHCM Ho Chi Minh city BĐS Real estate TTS Total property TSCĐ Fixed property TSLĐ Floating property VCSH Ownership capital HTK Inventory BCTC Financial Statement SXKD Production and Business FDI Foreign Direct Invesment 5 GaMBA01.X02 Group 3 LIST OF FIGURES AND TABLES Figure 1.1 Model of Strategy Management Figure 1.2 : Diagram of Procedure for building strategy Table 1.
Diagram on the planning of corporate business task Figure 1.3 Diagram of the procedure for building an IFE matrix Figure 1.4 External environment factors Figure 1.5 Diagram of the procedure for building an EFE matrix Figure 1.6 Diagram of Porter’s five force model Table 1.2: SWOT matrix (Strong point, Weak point, Opportunity and Threat) Table 2.1: Subsidiary companies and joint-venture companies of Ha Do Group Joint-stock Company Table 2.2 Some main indicators of the first seven months in 2010 against the same period of the previous year (%) Table 2.3 The investment capital of the society in the first six months of 2010 Table 2.4 Area and population of districts of Hanoi Figure 2.1 Diagram of Porter’s five force model Table 2.5 : Comparison of some major competitors Table 2.6 : Evaluation and analysis on strength and weakness of competitors Table 2.7: Evaluation Matrix of external factors Table 2.8 The Balance sheet: Table 2.9 Business outputs Table 2.10 Financial indexes: Table 2.11: Level of management staffs Table 2.12 Professional Level of Workers Table 2.13: Summary on some business and production indicators Table 2.14: Value of products, services by year Table 2.15: Evaluation matrix on Internal Environment Table 2.16 SWOT combination Table 3.1 : IE Matrix Table 3.2: The route of implementing the strategic solutionsFOREWORDS GENERAL INTRODUCTION 6 GaMBA01. The need and significance of the research topic In the recent years, the market economy of Vietnam has gained strong development. With the incentive policy to create condition for the development of state-owned economic sector, many small-size and medium-size enterprises in private sector are established and make considerable contribution to the development of the national economy (According to Ministry of Planning and Investment, there are more than 76.5 thousand newly-established enterprises in 2009, representing an increase of 28. To exist and develop in the market of fluctuations and violent competition, both domestically and internationally, they have to determine their long-term objectives.
Ha Do Group Joint-stock Company (Ha Do Group) is a company under the Ministry of National Defense with the main business functions as investment in the sectors including real estates, high-class hotels, relaxation villas and hydropower… During its development, the Company has gained its obvious growth and built up its prestige in the market. However, in addition to success, the operations of the Company show some limitations such as inefficient use of resources and strength to overpass the enterprises of the same sector. For example, Company has not exploited its full resources in national defense sector and prestige to promote and expand new market, or financial resource for its long-term development. In this reality, the development of business strategy is essential to Ha Do.
It helps the Company to understand its business orientation, objectives; to avoid locality, the disperse distribution of resources resulting in weakening the enterprise. In the quick change of the current business environment and the global competition require the enterprise to be active and creative to get adapted to such change. Objective of the research - To study theoretical and practical issues of the business strategy in the enterprise. - To apply theoretical issues in the planning and implementation of the business strategy of Ha Do Group.X02 Group 3 - To evaluate business operation and development of Ha Do Group, aiming at identifying weakness and reasons for limitations in the development of the business strategy of the enterprise.
- To analyze the factors impacting on the business and production environment of the Company in combination with its orientations, objectives to establish a successful business development strategy for Ha Do Group in the period of 2010-2015. - To propose solutions to implement the business development strategy of the Company in the period of 2010-2015 to ensure scientific ground and high feasibility. Subject and scope of research The subject of the project report is the theoretical and practical issues in the formation of the business development strategy of Ha Do Group. Moreover, basic theoretical and practical issues on the business development strategy of Ha Do Group are also focused.
The solutions to implement the business development strategy are proposed to be applied to Ha Do Group. Research method Method of document study: Research information, documents including publications, survey results, maps, and statistics data, summary reports… on the company’s business, production situation and issues related to the research topic. Qualitative research method refers to the method including interview and reference to some leaders, managers of all levels in the company and external experts involving in the management and business relation with the Company. Moreover, other methods like information collection, data statistics, analysis, combined method or comparison are used to analyze the operation of the enterprise.
Composition and structure of the project report The project report is divided in the following parts: 8 GaMBA01.X02 Group 3 The forewords Chapter 1: Theoretical basis Chapter 2: Analysis on business situation Chapter 3: Selection of strategy, solutions, recommendations Conclusion 9 GaMBA01.X02 Group 3 CHAPTER 1 THEORETICAL BASIS (Reference to curriculum of Griggs University) 1.1 Definition of the strategy Strategy is a general action plan to achieve the specific objectives. The strategy of an organization refers to the fact that such organization has to identify the objectives it desires to gain, the method of implementation and the required resources.Porter says that “Strategy is the art in creating stable competitive advantages for defensive purpose.” Alain Threlart believes “Strategy is the art that is used to fight against competition and to win a victory”. General Ailleret thinks “Strategy is the determination of roads and the means to achieve the objectives those are identified through policies’’. Gluecl says “Strategy is a type of plan that is united, comprehensive and combined to ensure that the objectives of the enterprise shall be implemented”.
Liam Fahey and Rober M.Randall believe that strategy can be best understood in the form of specific operation that is applied such as all activities related to the process, practice, human resource, properties, technologies, the use of information strength, the competitiveness, competence and the resource. In accordance to the condensed point of view that is combined from the theory and the practice mentioned in the curriculum of Grigg University, strategy is understood to be series of complicated actions to mobilize the resources of the organization to achieve a certain objective.2 The role of the strategy The business strategy management helps the enterprise to be aware of its objectives, targets and directions. It makes managers to review and identify the what is the direction and when the company can gain a specific position.X02 Group 3 Thank to strategy management, the enterprise can attach decisions to related environmental conditions. Due to increasing variation and complication of the environment, enterprises need to try the best to take active or passive situation in raid.
Active decision is an effort to predict the environment condition and then take action to change the predicted conditions so that the corporate can achieve the proposed targets. Passive decision is to predict future environmental conditions and then to optimize the enterprise’s position by avoiding foreseen issues and making better preparation to implement the potential opportunities. Enterprises normally do not make use of strategy management via passive decisions in which actions are only taken after the environment change. Those passive decisions are sometimes effective; however, strategy management with centre as environmental issues can help enterprises to make better preparation for environmental changes and the control of variations.3 Requirements to the strategy It is required to ensure safety in business, since there are a lot of risks in business.
The issue is how to limit risks at the lowest level. Scope of business, objectives and basic conditions to implement such objectives are identified to avoid the waste of resource. Future business environment is also forecasted to propose the suitable action plan. The accuracy of this forecast corresponds to the feasibility of the business strategy.
The strategy should enable the enterprise to achieve its targets and to increase the power of the enterprise and win competitiveness. Therefore, it is necessary to make use of comparison advantage of the enterprise with focus on the methods to realize the strength during the development of business strategy. Reserve business strategy must be proposed to deal with variations in the market.