General development strategy of Vicem in 2009 – 2020 and the direction to 2050 CAPSTONE PROJECT REPORT GENERAL DEVELOPMENT STRATEGY OF VIETNAM CEMENT INDUSTRY CORPORATION (VICEM) IN 2009-2020 AND THE DIRECTION TO 2050 Project – Group 4 – Gamba01. N01 1 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 MỤC LỤC INTRODUCTION No. Content Page 1 INTRODUCTION 7 2 GENERAL INTRODUCTION 8 3 Vietnam economic context 8 4 The necessity and meanings of strategic 10 construction. 5 Strategic report structure.
12 CHAPTER I THEORETICAL BACKGROUND 13 1.1 Definition of strategic management process 13 1.1 Definition of strategic management process: 13 1.2 Task of strategic management 14 1.3 Characteristics of effective strategic 15 management are: 1.6 Strategy levels of the business: 16 1.1 History of business 20 1.2 Human resources 20 Project – Group 4 – Gamba01. N01 2 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 1.7 Research and development 23 1.3 Strategy level analysis 23 1.1 External environment analysis 25 1.2 Internal environment analysis 27 1.6 Strategy control and evaluation 28 STATEMENT OF CONDITION CHAPTER II: 30 ANALYSIS AND PROPOSAL STRATEGY 2.1 Condition analysis of Vicem 30 2.1 Currently organizational structure of Vicem 30 2.2 Judgment about Vietnam cements industry 34 2.3 Forecast the cement demand in Vietnam 36 2.4 Evaluating supply – demand balance 40 2.5 Evaluate the cement export opportunities 42 2.6 Evaluating cement price in Vietnam 42 2.7 Evaluating Vicem’s capacity 43 2.8 Evaluating ready-mixed concrete and quality 43 of aggrade 2.9 Evaluating the corporation level among sub 44 companies of Vicem 2.10 Evaluating the control rights of Vicem to sub 44 companies 2.11 Evaluating business items 45 2.12 Evaluating the coal and gypsum of Vicem 46 2.13 Initial evaluation about business operation 47 Project – Group 4 – Gamba01. N01 3 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 results of Vicem 2.14 Evaluation about current strategic 47 administration of Vicem 2.15 Vicem’s SWOT analysis 47 2.2 Suggesting the overall development strategy of 49 Vicem in period 2009-2020 2.1 Mission message of Vicem 49 2.3 Summary the Vicem’s development strategy in 49 the period 2009 - 2020 2.4 Main components in General strategic Plan 51 2009 - 2020 2.5 The industry structure strategy, business lines 52 strategy 2.6 Strategy of synchronization of enterprise’s 53 structure 2.7 Strategy of yield development 54 2.8 Strategy for production management with 54 internal standards 2.9 Strategy for purchasing main materials and 55 combustible and build strategy for material resource 2.10 Strategy for integration to become a brand of 56 Vicem 2.11 Strategies for upgrading distribution system 56 and sales forces 2.12 Strategies of export 57 2.13 Strategies of human resource organization 57 2.14 Strategies of financial organization and 58 operating process 2.15 Strategies of infrastructure development and 58 organization of information technology 2.3 Strategy of organizational structure of Vicem 59 Corporation to 2020 and financial demand for investment of corporation development 2.1 Organizational structure of Vicem Corporation 59 to 2020 Project – Group 4 – Gamba01. N01 4 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 2.2 Financial demands for investment to develop 61 corporation CHAPTER III SOLUTIONS, IMPLEMENTATION 68 PROGRESS AND CONCLUSIONS 3.1 Solutions to field structure, business profession 68 3.2 Comprehensively strategic solutions for 70 structure of enterprise 3.3 Strategic solution to output development 72 3.4 Strategic solution to production management 73 by internal standards 3.5 Strategic solution to source of raw materials 74 and main fuel 3.6 Solution to unify trade mark of "Vicem" 80 3.7 Strategic solutions to improvement distribution 81 system and sales force 3.8 Strategic solution to export 84 3.9 Strategic solution to personnel organization 84 3.10 Strategic solution on financial organization and 85 operation process 3.11 Strategic solution of infrastructure 87 development and information technology organization 3.2 Plan of strategy implementation 87 3.2 General bussiness plan 90 3.3 Strategic administrative board 97 3.1 General strategic objectives 99 3.2 Objective and specific strategy solution 99 3.3 Route of implementing strategic plan 100 3.4 Proposal 101 Project – Group 4 – Gamba01.
N01 5 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 3.1 Matter of export-import cement 101 3.2 Matter of price 101 3.3 Matter of organization model and finance 102 Project – Group 4 – Gamba01. N01 6 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 INTRODUCTION Vietnam Cement Industry Corporation is one of 17 State Corporation which have the organization and operation scale according to the Decision No. 91/TTg dated March 07, 1994 of Prime Minister. The Corporation was established on November 14, 1994 at the Decision No.
670/TTg of Prime Minister and the forerunner is the Cement Department Union. For over 10 years establishing and operating, Vietnam Cement Industry Corporation has greatly contributed to the industrialization and modernization, carried out all the strategic missions that State appoints to ensure the balance of cement in domestic market, stabilize market and is the physical instrument for State to regulate the economy according to Socialist direction. In the current integrated economy, our country is joining in the WTO ground, before the opportunities and threats to economy, it is necessary to have innovations in managing regime; build the development strategy and long term perspective for the Corporation. With the desire to apply knowledge from the Master program on International Business Administration to the reality, basing on the knowledge in building strategy in training program together with the real research on Vietnam Cement Industry Corporation, Group 4 – Gamba 01.N01 has build the project on the general development strategy of Vietnam Cement Industry Corporation in 2009 – 2020 and its direction in 2050.
During the time carry out this project, We would like to receive the instructions and helps from Assoc. PhD Vu Tri Dung, Management board and other departments of Vietnam Cement Industry Corporation, however the project is not as profound as we desire because we do not have time conditions and survey the overall conditions of Corporation, We would like to receive the supplement contribution from the evaluation board to make our project more complete. Respectfully thanks! Project – Group 4 – Gamba01. N01 7 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 GENERAL INTRODUCTION 1.
Vietnam economic context In 2007, Vietnam became the formal member of WTO and carried out the PNTR commitment with America, so the export market is open; the Vietnam trade barriers to WTO country members are removed and restricted. Vietnam position in the international market is improved due to the APEC Conference in the end 2006. The diplomatic relationship, economic corporation activities, investment, export market expansion are consolidated and improved senior visits of Party and State leaders as well as business participation. The stable and ensured conditions of politic, security and defense have created the favorable environment to attract foreign investors as well as domestic enterprises.
The above context has impacted directly and completely to the procedure, business results from industries and businesses. In 2007, GDP growth rate in Vietnam was 8, 44% as the third position in Asia (after China: 11, 3% and India: 9%). This is the important physical premises and the primary advantages for the industry to carry out planned target in 2007. Besides, in 2007 Vietnam suffered some disadvantage factors such as natural calamity, diseases which are going on in the complex way, in addition, the disadvantage fluctuation in the world price market and cause serious results, the consuming price in country increase rapidly and has non-stop point.
To the year 2008, the economic and social development situation suffer the interactive reaction between the international economic integration. The global economy fluctuates seriously: the oil price increase rapidly and the food price escalates to August of 2008; the global financial crisis explodes in the September of 2008 and the world economy is deep in depression. These effects has had the great effect on Vietnam economy like high inflation, deficit in commercial goods and current balance, risks in banking system increase. Before the inflation situation, in April of 2008, Government issued the policy in pushing growth to inflation.
To October of 2008, the economy has to resist in the negative way in the global crisis and depression storm and once more time, Government move to the centralization policy to be against the economic depression, stabilize the macroeconomic, social insurance, the monetary policy is relaxed Project – Group 4 – Gamba01. N01 8 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 gradually from December of 2008. The economic growth rate in 2008 is slow down at 6,2%, this is the lowest growth level from 2000. However, the 6,2% is recorded as the valuable achievement compared to the developing countries in the region (the growth rate in industrial – construction area: 6,1%, the agricultural – forestry – fishery: 4,1%).
The investment capital of overall society to 2008 take the 40% percentage of GDP, mainly from the investment capital in FDI area and outside state area, invested significantly reduced public sector (-11.9%) and the first year the state has invested a small proportion of total investment in social development. Effective investment of public sector low, especially for corporations and state-owned enterprises (SOE) large scale. After more than two years that FDI flow massively into Vietnam, the economy has revealed many inadequacies in the ability to absorb capital efficiency. Planning, decentralization of state management on investment is heavy administrative procedures and not appropriate.
2009 is the third year marks the comprehensive integration of Vietnam's economy with the world economy. The decline of the world economy as factors detrimental to our economy, an economy based heavily on foreign investment and exports. In the country, the implementation of economic stimulus policies, in a certain extent, will result in increased inflationary pressures. Therefore, the goal of economic growth which is set out by Congress for 2009 will be difficult to test, if the negative impacts to the economy Vietnam became reality and the implementation of policy stimulus did not reach the desired effect.
The forecast of international organizations also showed the ability to grow the economy Vietnam will lower the growth rate in 2008. IMF (2009) and WB (2009) forecast GDP growth of Vietnam in 2009 and 3. Estimated by ADB (2009) and EIU (2009) average growth of 4. Thus, the ability to achieve the target GDP growth above 5.5% in 2009 seems hard to become a reality.
In short the economy of Vietnam in recent years have high growth rates, the industry production is expanded and develop many new urban areas in many localities in country. However, since 2007 inflation and trade deficit increased, macroeconomic have bad changes and the negative impacts to international markets and also affects on the Vietnam Project – Group 4 – Gamba01. N01 9 General development strategy of Vicem in 2009 – 2020 and the direction to 2050 economic growth rate. All of this express show the weaknesses in the institution, economic structure, development quality, administration capacity, competitive capacity of country.
The necessity and meanings of strategic construction. In order to complete the market economy institution according to the socialist direction and improve industrialization and modernization, the X th Meeting of Party has suggest the strategic mission to establish and develop Vietnam business system which have great competitiveness and brand name. In order to archive the above target, State owned enterprise, Party and State improves the arrangement, innovation and improvement in business efficiencies; Improving the establishment of some strong economic corporation in region with the stock participation of economic components, and State keeps the rule shares in order to improve efficiencies and competitiveness, taking well the core roles in key industry and improve economic development.