CAPSTONE PROJECT REPORT SITUATION AND SOLUTIONS FOR NHUNG CERAMICS JSC TO IMPROVE BUSINESS STRATEGIES GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT SITUATION AND SOLUTIONS FOR NHUNG CERAMICS JSC TO IMPROVE BUSINESS STRATEGIES Group No.4: Dang Van Tuan Pham Thi Nhung Pham Thi Mai Ly Nguyen Dinh Nhuan TABLE OF CONTENTS Acknowledgements Table of content Introduction .6 Chapter 1: BASICAL ARGUMENT OF BUSINESS STRATEGY. Vision, Mission and core competencies. Selecting and implementing strategy .23 Chapter 2: SITUATION OF BUSINESS STRATEGY OF NHUNG CERAMICS JOINT STOCK COMPANY INCLUDE LAST TIME. Commitment to business strategies in the last few years.
Analysis of macro-environment. The assessment of competitive ability of the Company. Analyzing industry environment. Evaluation of company’s strong and weak points.
Evaluation of the business outstanding competence. Analysis of value range. The current business strategy. The current organization and controlling mechanism.
Nhung Ceramics's position in the market .63 Chapter 3: SOLUTIONS FOR NHUNG CERAMICS JSC TO IMPROVE BUSINESS STRATEGIES THE PERIOD 2010 – 2015. Some orientation in formulating the Company’s strategy. The Company’s development directions. Targets and strategy for the period 2010-2015.
External environment analysis. Internal environment analysis. Business strategy for the period 2010 – 2015. Competition and investment strategy.
Strategic solutions in production and technology. Strategic solutions in finance. Strategic solutions in HR and organizational structure. Strategic solution in marketing.
Organization for implementation .89 CONCLUSION AND RECOMMENDDATION. 92 List of tables Table 1.1 – SWOT matrix Table 1.2 – Strategy implementation Table 2.1 – Table of general analysis on macro-economic environment Table 2.2 – Result summary of five competitive forces model analysis Table 2.3 – Evaluation of company’s strong and weak points Table 2.4 – Evaluation of the company’s outstanding competences Table 3.1 – Table of assessment of business environment factors Table 3.2 – The table of assessing key internal factors Table 3.3 – Sum up table of assessments under SWOT matrix Table 3.4 – Table of results under the GREAT model Table 3.5 – the Company’s targets for 2010 - 2015 Table 3.6 – Gantt chart List of figures, graphs… Figure 1.1 – The strategic management process Figure 1.2 – Step in planning strategy Figure 1.3 – The external environment analysis model Figure 1.4 – Industry environment analysis model Figure 2.1 – The company’s organizational structure and Board of management Figure 2.2 – the Company’s revenue from 2002 to 2008 Figure 2.3 – Vietnam export ceramics market Figure 2.4 - Market of company Figure 3.1 – Organizational structure Figure 3.2 – GE matrix model Figure 3.3 – Types of potential competitive advantages INTRODUCTION 1. Urgency of the subject The first thing we mention the importance of business strategy. Indeed, an organization in general or in particular business to succeed needs to be able to cope with any situation, be completely autonomous, decide and take responsibility for all their activities.
Therefore, requires organizations to understand the trends are changing, that exploit the strengths and reduce the weakness to create innovative step for you, in other words to build them a suitable strategy. Can say the role of business strategy is becoming especially important for business especially in terms of economic integration, production level and increasing competitiveness in the increasingly fierce market. In fact, many enterprises in Vietnam has not really interested in the formulation of strategies for them. In recent years, when Vietnam opens its economy, promote the export of thousands of businesses are established and take a new look for the economy, businesses of diverse industries enough, enough fields in which traditional industries, handicrafts, especially pottery manufacturing enterprises contributed an important role in national economic structure.
From ancient pottery to date are associated with living art, pottery has become a witness to the lives of people; it changes in sign of economic social cultural and religious history at each stage country. In many ceramic kilns across the country, Phu Lang pottery kiln is still a familiar name to people our country with several hundred pottery kilns of which Nhung Phu Lang pottery known and famous both at home and abroad. Production units Nhung Phu Lang pottery has established a joint stock company Nhung Pottery, started its operations in 2002 with initial membership of 40 members of the village of ceramic artisans, Director is Nhung Vu Huu, now the basis of the number has grown up to 800 workers, skilled workers so that more and more sophisticated products, profits yearly rise. Vu Huu Nhung, 33 years old born and grew up in Phu Lang village, he graduated from the University of Industrial Arts in 1997.
Unlike other students who stay in Hanoi, after his graduation, he returned home Nhung has returned homeland to start his career by the crafts of traditional handicraft village. Nhung ceramics joint stock company located 20km north of Hanoi, where we will be witnessed the process of making pottery, and we understand why he choose this profession. He is a talented artisan pottery, he had the idea of making ceramic products in its traditional beauty of the Vietnamese soul. Over many generations, Phu Lang village only make simple products such as: vases, peace, jar, coffin and other common households.
He is a pioneer in creating ceramic art products, brings the brand name for Phu Lang pottery village. In Phu Lang today,there are many small pottery kilns with small business, Nhung is only kiln which make valuable artproducts.There were vases, the bottle contained creactivity and unique style and design, and they have been exhibited in many galleries in Hanoi and Ho Chi Minh. These products have brought many valuable not only known in the country but also attract attention, favorite friends all over the world (The USA and EU). Since its establishment (2002).
Nhung Ceramics Joint stock company tends to make use of methods of strategic management in business management and in fact, has brought good results. With awareness of the importance of planning business strategies in the business we boldly choose project "Perfect the business strategy of Nhung Ceramics Joint Stock Company stage 2010 - 2015" in order to put knowledge to Business Reality. Research problems - Factors in the external environment impact the construction business strategy. - The elements of internal enterprise impact on the construction business strategy.
- Analysis and assessment of general state construction business strategy of Nhung Ceramics Joint Stock Company. - Orientation business strategy for 2015 includes joint stock company based on a combination of theoretical and practical analysis. Objective study Perfect strategic fit of business enterprises in the period from now to 2015. Scope of research Analyze the business environment and consider the factors to the success of the company in recent years for business-oriented strategy on the domestic market and abroad in 2015.
Methodological Major exercises using secondary sources and primary as follows: - Collecting data through secondary sources such as newspapers, internet, distribution channels, internal documents. - Collecting primary data: Using the method of quantitative and qualitative data collection to record levels. - Using a statistical analysis method to analyze the primary data collected. - Interview with the members of the company's leadership as Chairman, members of the Board, Director,.
the development orientation of the company in the future. The contribution of major exercises - Systematize a number of theoretical basics of business strategy; - Analysis and assessment of general state construction business strategy of Nhung Ceramics company. - Propose a complete solution to build business strategy at Nhung JSC. Structure of great exercises - Chapter 1: Basical arguments of business strategy - Chapter 2: Situation of business strategy of Nhung ceramics joint stock company includes the last time.
- Chapter 3: Solutions for Nhung ceramics JSC to improve business strategies the period 2010 - 2015. CHAPTER 1 BASICAL ARGUMENT OF BUSINESS STRATEGY 1. Concept of strategy The word "strategy" has military connotations, because it derives from the Greek word for general. According to American Encarta, a strategy is the art and science of military management.
It is a plan of action designed to achieve a particular goal. According to Larousse Dictionary, strategy is the mean or the tool by which objectives are consciously and systematically pursued and obtained over time. The strategy definition most commonly known today as in business environment – business strategy. The word "strategy" has been used implicitly in different ways even if it has traditionally been defined in only one.
Explicit recognition of multiple definitions can help people to manoeuvre through this difficult field. Mintzberg provides five definitions of strategy: Plan Strategy is a plan - some sort of consciously intended series of action Ploy Strategy is a ploy, really just a specific manoeuvre intended to outwit competitor. Pattern Strategy is a pattern - Show the firms and behaviour of the company till time. Position Strategy is a position - means the match betweem company and its environment.
Perspective Strategy is a perspective Show the awareness of the leaders Match the different definitions about business strategy, we can see that “a coordinated series of actions which involve the deployment of resources to which one has access for the achievement of a given purpose. The Strategic Management Process Involves the full set of: Commitments Commitments Decisions Decisions Actions Actions •• Strategic Strategic Basing Basing on on Combination Combination Visions Visions external/intern external/intern between between •• Strategic Strategic al al environment environment structure structure and and Mission Mission analysis, analysis, control control •• Core industry industry Core competence environment environment competence and and SWOT SWOT analysis.1 - The Strategic Management Process (According to: The lecture on the strategy management - Griggs University) A set of decisions and actions the CEO and lower-level managers use to gain a general commitments. Traditional process of strategic management – responsibility of the CEO is out of date. But a multi-level strategic management system is replaced with the same goal in the action to carry out the business strategy.
Therefore, the primary commitments will be the key factors of the whole system. Vision, mission and core value The first step of strategic management process is the firm’s commitments. It is the process of specifying the firm's mission, vision and core values, which are designed to achieve these objectives. - Vision: Defines the desired or intended future state of a firm in terms of its fundamental objective and/or strategic direction.
Vision is a long-term view. - Mission: Defines the fundamental purpose of a firm, basically describing why it exists and what it does to achieve its vision. - Core values: Core values are resources and capabilities that can serve as a source of Competitive Advantage. Strategic management Identifying strategic groups equivalently to the firm’s defined strengths, weaknesses, opportunities and threats.
Strategic management process can be summarized as in the following diagram. Mission and the goal Strategy formulation and strategy building The external The internal environment Functional Strategy analysis environment (oppotunities and analysis threats) Business-Level Strategy Global Strategy Corporate-Level Strategy Matching Control and structure to Structure of Strategy Organizational organization Control Change in strategy Figure 1.2 - Steps in planning strategy (According to: Chapter 1 - Associated professor, Doctor Le The Gioi and Doctor Nguyen Thanh Liem a course book on “Strategy Management” – Statistical Publishing House) These core strategic management processes will help firms define their strategic competitiveness on the background of analyzing to find out resources, capabilities, and core values to develop chosen strategies. Strategy formulation is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose. This includes Corporate-Level Strategy, Competitive Strategy and Functional Strategy with supporting justification, that revise as necessary the mission and objectives of the organization, and supply the strategies for accomplishing them.
Corporate-Level Strategy Specifies actions taken by the firm to gain a competitive advantage by selecting and managing a group of different businesses competing in several industries and product markets.