TABLE OF CONTENTS Page FOREWORD. 1 CHAPTER 1: THEORETICAL FOUNDATIONS. Conceptions about strategies and strategic business management. Conceptions about the business strategies.
Concepts of the strategic management. Procedures of building strategies.1 Building and selecting the strategy. Analyzing the operational environment of the enterprise. Analyzing the macro environment.
Analyzing the industry environment. Analyzing and assessing the internal enterprise. Tools for plan building and strategic choice. IFE - Internal Factors Environment Analysis.
EFE - External Factors Environment Analysis. Competition profile matrix. Quantitative strategic planning matrix.18 CHAPTER 2: ANALYSING THE ACTUAL SITUATION OF LICOGI 16 JSC. Actual situation of Vietnam’s construction.
General overview of Vietnam's construction. In industrial production and construction materials. The total value of production and business. Manufacturing industries and construction materials.
Orientations to develop the construction. Status of Licogi 16 Joint Stock Company. Process of formation and development. Function and main duties of the company.
Organizational structure of the company. The control of LICOGI 16 for the underlies. Business results in 2008. Consolidate the brands into one brand "Licogi 16".
Production and business characteristics of the company. Characteristics of the market, the company's products. Characteristics of construction products. About company’s market executed in the past time.
Business results of the company. Character of human resource of the company. Production and Business Plan of Licogi 16 in the period 2010-2015. Target of the company to 2015.
Key projects to 2015. The building business policy plan assignment. Plan building process at Licogi 6 Joint Stock Company. Base on result of researching market demand.
Base on current sources of the company. Base on situation of implementation plan in previous years. Situation of building and implementing business strategy of the company in the previous years. The factors affect business strategy of LICOGI 16.
Analysis of internal factors of the enterprise.2 The system of income and information processing.3 On human resources:.6 Activities of Research and Development:.7 The capacity of technical sciences - equipment:.8 Management of input factors:. Evaluate Capability of Licogi 16. The achieved results. Select business strategy by matrix method.1 Develop EFE matrix (assessment of external environmental factors).
Establishing IFE Matrix (Evaluating Internal Environmental Factors). Establishing the competitive profile matrix. Selection of strategies. 67 CHAPTER 3: BUILDING BUSINESS STRATEGIES IN 2010-2015 OF LICOGI 16.
The strategy of Licogi 16 JSC. Investment and market expansion strategy of Licogi 16. For construction, the core line of the Company. For the trade of materials and equipments:.
Establish a vision-mission for Licogi 16. Establish a mission - vision, identify common goals and objectives. Convey passion from leaders to each employee. Create confidence in Licogi 16.4 Build a company’s culture.
Some solutions to improve business planning. Marketing strategy formation.3 Distribution and customer approach channels.4 Communications and PR.5 Marketing strategy implementation supervision and adjusment. Solutions to operations management. Input expenses reduction.2 Well-implementation of bidding.
Strengthening the management of changes during the stratey implementation. Human resources solutions. For macroeconomic policies. For business and production operations.90 iv LIST OF ABBREVIATIONS ASEAN: The Association of Southeast Asian Nations.
EFE: External Factor Evaluation. EVN: Electricity of Viet Nam. FDI: Foreign Direct Investment. GDP: Gross Domestic Product.
IFE: Internal Factor Evaluation. LICOGI 16: Licogi 16 Joint Stock Company. ODA: Official Development Assistance. MOC: Ministry of Construction MPI: Ministry of Planning and Investment.
PVN: Petro Viet Nam. QSPM: Quantitative Strategic Planning Matrix. R&D: Research and Development. Song Da 9: Song Da Construction Joint Stock Company No 9.
SWOT: Strengths, Weakeness, Opportunities and Threats. VINACONEX 15: Vinaconex Construction Joint Stock Company No 15. VND: Vietnamese Dong. WTO: World Trade Organization.
Procedure of building the strategy for the enterprise. Management mechanism structure of Licogi 16. Organizational Structure of Licogi 16. Revenue – profit of the Company before capitalization.
Changing capital process. Capital structure on 17/2/2009 (denomination 10. Productivity and Revenue of the LICOGI 16 system. Result of business activity in three years 2006, 2007, 2008.
Mechanism of the company. Target of turnover and interest to 2015. EFE Matrix of LICOGI 16 Joint Stock Company. IFE Matrix of LICOGI 16 Joint Stock Company.
Competitive profile matrix of LICOGI 16. SWOT Matrix of LICOGI 16. QSPM of Group SO. QSPM of Group ST.
QSPM of Group W-O. QSPM of Group W-T. Estimation of labor in the period 2010-2015.83 vi ACKNOWLEDGEMENTS We would like to express our sincere thanks to lecturers in the Global Master of Business Administration Program - Vietnam National University-Hanoi and Griggs University and International Academy - the United States, who have taught and instructed valuable knowledge with the whole heart during the course. We would like also to deeply thank lecturers in the graduation thesis jury for offering practical comments for this thesis.
Our high appreciation to leaders and officials of LICOGI 16 Joint Stock Company and classmates for supporting us information and practical comments during the process of collecting information to complete this thesis. Sincerely yours, 0 CAPSTONE PROJECT REPORT SUBJECT: STRATEGIC MANAGEMENT Tittle: BUSINESS STRATEGIES IN 2010 -2015 OF LICOGI 16 JSC FOREWORD Modern business environment has been daily changing. To date, Vietnam has been considered as one of the fastest growing economies, not only in Asia, but in the world as well. Since the 1986 economic opening policy start, Vietnam has undergone nearly 30 years of striving toward a real market economy.
An important landmark in the integration process of Vietnam in the global economy is the event when the nation was admitted to World Trade Organization (WTO). Such a lot of changes have been achieved and are expected to be implemented in 2010-2015 period. Under the general assessments of Ministry of Planning and Investment (MPI), Vietnam’s socio-economic conditions and situations in six first months of 2009 have been under the positive changes with the GDP growth rate of 3. Value of industrial production is estimated to be about VND342.5%), higher than that of the same year with 4.
Some localities such as Quang Ninh, Ba Ria-Vung Tau have high industrial growth rates of 11. Agricultural, forestry and fishery industries have overcome difficulties to reach good results with the estimated value of VND96.6 trillion in first six months, a year-on-year 2. Despite a mount of economic difficulties, decreased consumption demands, the combined retail value and turnover from services in June have still gained the growth rate of 2.3% (to VND94 trillion) from that of May, raising the total flow of goods and social services in first six month up to VND547 trillion, a 20% increase compared with the same period. 1 Volume of export in first six months of 2009 is estimated to be up to USD$27.1% decrease from the same period.
However, according to Ministry of Industry and Trade, if calculated by the quantity (volume of exporting crude oil and minerals is decreased) and absolute value due to the exclusion of sudden increases in oil price of the year 2008, the export turnover of first six months of 2009 is still increased from the same period of the year 2008. For import, import value in June of 2009 is estimated to be USD$5.1% increase from that of May 2009. Combined import value of first six months is USD$29.7 billion, a fall of 34% from the same period of the previous year. However, June also is the third consecutive month when Vietnam restarted the overbalance of import after three first months of export surplus.
MPI forecast only for June in import excess can be up to USD$ 1 billion and combined for six moths up to more than USD$2 billion. State collection computed under the progressive calculation since the early year till first half of the year is estimated to be about VND171 trillion, accounting for 49.3% of the general estimate of the year. This is evaluated to the good turnover level. Necessity of building strategies, objectives and applications a.
Proposal In 2008 and first half of 2009, we have witnessed the global economic crisis in which many large-scaled and world leading groups have fallen into the bankcrupcy, etc. However, experts forcecast that the economic recovery will start in the year 2010. Afterwards, the 2010-2015 period may be the time for the economic growth and Vietnam is also in this general circulation of the global economy. Starting to kick of a business strategy for 2010-2015 period right now is the top necessity that the Company leaders shall be aware to promote the company to develop together with the market economy.
Being aware of the importance of working out business strategies for five coming years, executive officials of Licogi 16 Joint Stock Company should propose development orientations, operational principles for the company. 2 We, as consultants of planning strategies, do hope to propose orientations, operational solutions and business strategies for the 2010-2015 period for Licogi 16 Joint Stock Company. Objectives of the research project The project is designed to define strategies and business development for the 2010- 2015 period. Then, Licogi 16 can properly operate to expand its scale, reduce the business expenses, effectively use capital, bringing the profits for the enterprise as well as increasing the competitive edges.
In this paper, we also propose some solutions that Licogi 16 can implement its strategies and business strategies in the 2010-2015 period. Case study methods In order to carry out this project, we have applied methods of statistics, survey and analysis. Scope of study This report shall focus on considering the current strategies of Licogi 16 Joint Stock Company, available achievements and shortcomings. Moreover, it also studies strategic planning and business development of Licogi 16 in 2010-2015.
Structure of the report Our report consists of the three chapters: Chapter 1: Theoretical foundations. Chapter 2: Analyzing the status quo of LICOGI 16 Joint Stock Company Chapter 3: Some orientations of completing the business strategies of the Company in 2010-2015 period. Conclusion and recommendations. 3 CHAPTER 1 THEORETICAL FOUNDATIONS 1.
Conceptions about strategies and strategic business management 1. Conceptions about the business strategies The scholar Dao Duy Anh said in the Vietnamese Dicitionary: Strategy is plans set out to win in one or multiple battlefields. From 1960s of the previous century, strategies were applied to business and the term “business strategy” was born. With different time and approach, there are various business strategies: In 1962, Chandler defined the strategy: is seen as the determination of the basic long-term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals and objectives.
In 1980, Quinn issued a more general definition "the pattern or plan that integrates an organization’s goals, policies and action sequences into a cohesive whole. A well-formulated strategy helps to marshal and allocate an organization’s resources into a unique and viable posture based on its relative internal competencies and shortcomings, anticipated changes in the environment and contigent moves by intelligent opponents" Johson and Scholes defined the strategy under the environment with rapid changces: "Strategy is the direction and scope of an organization over the long term: ideally which matches its resources to its changing environment". In spite of any approach, the nature of approaches is still to illustrate the future enterprise image in the operational field and capacity of exploitation. Accordingly, the term “business strategy” is used with three major meanings: 4 - To determine the long-term objectives and goals of the enterprise.
- To work out general action plans. - To select action plans, allocating resources to implement such objecticves. It can be said that the construction and implementation of real strategies have become the top tasks and an important functional content of the business management and widely applied in the enterprises. The current popular viewpoints are that “Competitive strategy is the art of combining activities and controlling them in order to reach the long-term objectives of the enterprise”.
Concepts of the strategic management Garry D.Smit said that “Strategic management is the process of studying current environments as well as environments in the future, planning goals and objectives of the organization; setting out and inspecting the implementation of decisions to achieve objectives in the current and future environments”.