GLOBAL ADVANCED MASTER OF INTERNATIONAL BUSINESS ADMINISTRATION CAPSTONE PROJECT REPORT BUILDING DEVELOPMENT STRATEGY FOR TERAZO TILES OF NAM THANG TRADE CONSTRUCTIVE INVESTMENT JOINT STOCK COMPANY DURING THE PERIOD OF 2021 – 2026 1 TABLE OF CONTENTS LIST OF ABBREVIATION.6 LIST OF TABLES.7 LIST OF FIGURES. 9 CHAPTER 1: LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT. Definition of strategy. Definition of strategic management.
Roles of strategic management. The meaning of building the business strategy. Process of building the business strategy. Analyze the external environment.1 Analysis of macro environment.16 * Science-technology environment.16 * Culture-social environment.
17 * Political-legal environment. Analysis of micro- environment. External Factor Evaluation EFE. Analyze the internal environment of the company.
Strategy formulation process. Analyze SWOT matrix. The basic business strategies in the practice.25 CHAPTER 2: ANALYZING THE SITUATION BUSINESS STRATEGIES ON TERAZO TILES OF NAM THANG TRADE CONSTRUCTIVE INVESTMENT JSC. Introduction of Nam Thang trade constructive investment Joint Stock Company30 2.
History of development - Vision of the company. Managing structure of the company. Production and business operations of the company. Introduction about the products.
General characteristics of the product. Summarizing producing technology. Distribution methods of products and sales services. External environment analysis.
Macro environmental analysis. Political environment and legal (P):. Natural environment, culture, social (S):.1 Analyze the industry environment.2 Analyzing micro-environment (analyzing five competitive forces).43 * Bargaining power of supplier. Analyze the internal environment.
Internal factor evaluation matrix IFE. Using SWOT Matrix to making strategy for Terazo tiles of Nam Thang TCI Joint Stock Company. 56 CHAPTER 3: BUILD BUSINESS STRATEGY ON TERAZO TILES FOR.58 NAM THANG TCI JOINT STOCK COMPANY IN. Developing objectives of Nam Thang TCI JSC.
Mission and vision confirm of the company. Analyzing SWOT Matrix to making strategy on Terazo tiles of Nam Thang TCI JSC. Choosing developing strategy. Solutions to build development strategy for Terazo tiles of Nam Thang TCI JSC in the period 2011 – 2016.
68 3 LIST OF ABBREVIATION AFTA Asean Free Trade Area ASEAN Association of Southeast Asian Nations ASEM Asia-Europe Meeting APEC Asia-Pacific Economic Cooperation CEO Chief executive officer JSC Joint Stock Company R&D Research and development SWOT strengths, weaknesses, opportunities, threats WTO World Trade Organization LIST OF FIGURES Figure 1.1: Procedures of determining strategy Figure 1.2: Model of 5 competitive forces by Mr.3: Process of building EFE matrix Figure 1.4: Process of building IFE matrix Figure 2.1: Organization structure of the company Figure 2.2: Producing process Figure 2.3: The market share 4 LIST OF TABLES Table 1.1: SWOT Analysis minimalist framework Table 1.2: Compare the characteristics of the general strategies Table 1.3: Quantitative matrix according to the GREAT criteria Table 2.1: The report of result on business activities Table 2.2: Revenue by Terazo Table 2.3 External Factor Evaluation matrix Table 2.4: The substitute products Table 2.5: The competitors Table 2.6: Ballance sheet 2009 – 6/2011 Table 2.7: Labor quality Table 2.8: Average income per labor Table 2.9: Internal Factor Evaluation matrix Table 2.10: SWOT analysis Table 3.1: GREAT matrix 5 ACKNOWLEDGEMENT First of all, the Group No.M1009 would like to express our sincere thanks for the Master of Business Administration Program, the Affiliate Programs between Griggs University, USA and Center for Education Technology and Career Development, Vietnam University Hanoi for organize MBA course in Vietnam and facilitating our Capstone Project Report. Secondly, we would like to express our sincere thanks to the Leaders and staffs of Nam Thang trade constructive investment Joint Stock Company, who have fully supported our team in providing valuable input information for this Capstone Project Report. Last but not least, let our thanks go to our families whose encouragement has helped us complete the course without having any difficulties. We have tried to complete the assignment in the best way using our best knowledge and ability.
However, the shortcomings are inevitable. We wish to receive valuable comments from teachers and colleagues. The title of research “Building development strategy for Terazo tiles of Nam Thang trade constructive investment Joint Stock Company in the period 2011-2016” 2. The reason of research Vietnam has approached the market economy for over 20 years.
This duration is not too long as well as too short for Vietnamese enterprises to apply management methods of the market economy procedure. Strategic management has been considered as one of the most useful business theories which can help enterprises to achieve successes in a long – term. The way they are using these theories, however, should be re-considered in almost all organizations in Vietnam. In 2002, with the approval of Hanoi Planning & Investment Department, Nam Thang trade constructive investment Joint Stock Company was established and started to build the most modern Terazo tiles in Vietnam by a technology chain from Italy.
All equipments of the factory are also controlled and checked by experts from FDT – Italy. Through many years of developments, Terazo tiles - its main product - has achieved a certain position step by step in the market as well as in consumer’s mind. In comparison with other products in the market, however, the awareness of Terazo tiles is not really clear. Moreover, the company often encounters with the situation of lacking products for sales because the production capacity of its unique factory in Quoc Oai, Ha Tay cannot meet the increasing demand of customers.
In addition, there are more and more tiles products and the market is becoming so competitive. It is clear that Terazo tiles is sort of clear and effective strategies, especially marketing strategy or financial strategy to stay stable in the material constructive industry. This topic does not only apply knowledge of strategic management but also contributes significant practical recommendations for the development of Nam 7 Thang trade constructive investment Joint Stock Company as well as Terazo brand. Purposes of the research The research focused on following issues: - Fundamental theories of strategy and strategic management.
- Useful models to analyze the process of establishing and choosing strategy. - The real situation in which Nam Thang trade constructive investment Joint Stock Company has been implementing its strategy for Terazo tiles - Analyze factors of the external and internal environment which affect on company’s strategy - Appropriate solutions to build the development strategy for Terazo brand of Nam Thang trade constructive investment Joint Stock Company. Objective, scale and methodology - Objective and scale: The research focuses on current strategic management activities of Nam Thang trade constructive investment Joint Stock Company and provides some solutions for the period of 2011-2016. - Methodology: The research used two kinds of information sources: Primary and secondary information.
The secondary information came from various sources. However, a major percentage of them were from reports about current business situations of Terazo tiles which were provided by Nam Thang trade constructive investment Joint Stock Company. Besides, we were also gathered from many opened sources such as internet and books. Structure of the research Introduction Chapter 1: Literature review of strategy and strategic management Chapter 2: Analyzing the situation business strategies on Terazo tiles of Nam Thang trade constructive investment jsc Chapter 3: Some solutions to build development strategy on Tarezo tiles of Nam Thang trade constructive investment jsc 8 CHAPTER 1: LITERATURE REVIEW OF STRATEGY AND STRATEGIC MANAGEMENT 1.
Definition of strategy There are many different definitions on strategy, but the most popular definition is "Strategy is a series of complex actions to mobilize the resources of an organization to achieve a certain goal." – Text book of “Strategic Management”- Global Advanced Master of Business Administration, Hanoi, 2010. We know that in all definitions of policy there is some word with different meaning. According to Mr.Mintzberg, there is 5 words (5P): Plan, Partern, Position, Perspective, Ploy. Until now, Plan is an important part in definition of business strategy.
Alfred Chadler (Harvard University) thinks that “strategy is to determine long –term corporate targets, to select method or plan of implementation and distribution resources necessary for achieving that target”. - (Source: Johnson & Scholes- Exploring Corporate Strategy, 2009) There is a lot of such definitions, because strategy has a large concept with complicated meaning. However, strategy can be recognized by certifying its character and by distinguishing strategy and tactics. * By characters, strategy has 3 main following contents: - Long-term missions that company wishes to achieve.
- Setting-up and selecting the solutions for achieving mission. - Implementing and distributing resources for mission achievement. Corporate business strategy is master action program to focus on mission achievement. Strategy does not define exact method to achieve the mission, because this is the target of other supplemented programs.
Strategy makes only the frame of guidance on mind and action for corporate management leaders. * By level, in any business corporate, strategy has some different levels, along whole the corporation (or some of corporations) to every employee who works in the corporation. 9 + Corporate strategy: is at corporate level to focus on master mission with whole corporate scope, satisfying expectations by owners of capital contribution. + Business strategy: is in relation with how corporation can compete successfully in the market.
+ Functional strategy – is strategy supported to corporate and business strategy achieving the mission based on recourses, procedures, personnel and other necessary skills. + World-wide strategy (international business) – is a selection, facing to international business when corporate operates multiple business outside its border. Definition of strategic management Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It involves the systematic identification of specifying the firm's objectives, nurturing policies and strategies to achieve these objectives, and acquiring and making available these resources to implement the policies and strategies to achieve the firm's objectives.
Strategic management, therefore, integrates the activities of the various functional sectors of a business, such as marketing, sales, production etc., to achieve organizational goals. It is generally the highest level of managerial activity, usually initiated by the board of directors and executed by the firm's Chief Executive Officer (CEO) and executive team. Strategic management hopes to provide overall direction to the company has ties to the field of organization studies. Strategic management includes these following specific steps: Strategic planning Strategic implement Strategic checking and evaluation.
Roles of strategic management 10 Characteristics of business environment have a big affect to existence and development of company. They can create new opportunities and challenges for corporation. And the company which wants to exist has to find out a new management method, it is exactly “strategic management” - strategy is the basis of this management method. In model business environment, strategy becomes more and more important to existence of company.
From below analysis we can see very important roles of strategy in enterprise’s performance so; strategic management becomes one of the most necessary keys which help enterprise open the door to advance toward success. Strategic management brings theses following advantages: More efficient in making plans by using more reasonable and logical approach method when choosing strategies Widely take care of related beneficiaries of enterprises (stock holders) Connect short term development in long term development. Take care of both efficiency and effectiveness. The meaning of building the business strategy Setting up business strategy is one of the most important activities managed by the corporate leaders.
This gives to corporate the best benefits, such as: - Define exactly the corporate mission in every business period; Support corporate to have a future trend for achievement of targeted mission. - Help corporate leaders to see opportunities and challenges from outside, to know the corporate strong & weak point, to forecast the changes in the future and to have possible solutions for competition and satisfying with new business conditions. - Help corporate to control and use effectively all resources, to promote the most of corporate abilities for development. - Help corporate to distribute reasonable resources in every period, to improve corporate business result.
11 - Improve the corporation and agreement between company leaders to get the targeted mission.