CONTENTS LIST OF ABBREVIATIONS, LIST OF TABLES, LIST OF FIGURES. THE SIGNIFICANCE OF THE DISSERTATION. RESEARCH PURPOSES OF THE DISSERTATION 1. SCOPE OF THE RESEARCH.
STRUCTURE OF THE DISSERTATION.10 Chapter I - THEORITICAL BASIS. BUSINESS STRATEGY FOR THE ENTERPRISE. The Concept of business strategy. The Nature of business strategy.
The Characteristics of business strategy. Generic business strategies…………………………………………………. The leading cost strategy……………………………………………………15 1. The making difference strategy…………………………………………….
The concentrated strategy…………………………………………………. SETTING UP AND CHOOSING BUSINESS STRATEGY OF ENTERPRISE. Process of forming a strategy. Strategic vision, mission and objectives of the business.
External environmental analysis. Sectorial environment of enterprises. Internal environmental analysis. Strategic Planning Method.26 Chapter II - STATUS OF VIGLACERA HA LONG I JOINT STOCK COMPANY .35 1 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 2.
Visibility, task and objective of the Company……………. Business result and financial status of the Company from 2008 to June 2010 …………………………………………………………………………. MACRO ENVIRONMENTAL ANALYSIS AFFECTING OPERATION OF THE COMPANY. Culture and society.
SECTOR'S ENVIRONMENTAL ANALYSIS AFFECTING THE COMPANY’S ACTIVITIES. OPPORTUNITIES AND CHALLENGES. ANALYSIS OF INTERNAL ENVIRONMENT IMPACTING TO OPERATIONS OF THE COMPANY. STRENGTHS AND WEAKNESSES OF THE COMPANY.77 2 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 2.2 Contents of the strategies.
CORPORATE STRATEGIC PLAN OPTIONS, SOLUTIONS, RECOMMENDATIONS AND CONCLUSIONS. CORPORATE STRATEGIC PLAN OPTIONS AND THE METHOD THEREOF. CRITERIA TO CHOOSE BUSINESS STRATEGIC PLANS. OPTIONS OF BUSINESS STRATEGIC PLANS.
THE METHOD TO FINISH THE BUSINESS STRATEGIC PLANS. Steps to finish. SOLUTIONS TO FINISH. Building a strong brand, strengthening the company image, promoting Marketing.2 Investment to strengthen the old production lines, implementing investment plans.
Optimizing production processes to reduce management cost and improve roduct quality. Building and developing human resources with high-level management qualification, skilled technical worker force. Mobilize sufficient regulatory capital calculation and capital structure optimization for production and business activities. Role of the brand Viglacera for Viglacera Ha Long 1………………….
For Viglacera Company.92 3 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 LIST OF TABLES Table 1.1: Summary of appropriate choices of generic business strategy 11 Table 2.1: Balance sheet of the Company of the year 2007, 2008, 2009 and 2010 36 Table 2.2: Business and production results of the Company in 2007, 2008, 2009 and 2010 41 Table 2.3: Financial items of the Company in 2008, 2009 and 2010 44 Table 2. The Customer reviews the companies 69 Table 2.5: Situation of human resources at the company in 2009 72 Table 2.6: IFE Matrix 74 Table 2.7: EFE Matrix 75 Table 2.8: SWOT Matrix 77 Table 2.9: QSPM Analysis 83 LIST OF FIGURES Figure 1.1: Business Strategy 10 Figure 1.2: The process of strategic planning 15 Figure 1.3: Macro environment 18 Figures1.4: PEST Model 19 Figure 1.5: The Five forces that shape industry competition 20 Figure 1.6: Value chain 23 Figure 1.7: SWOT Analysis Model 24 Figure 1.8: SWOT Matrix 26 Figure 1.9: IE matrix 29 Figure 2.1: Organization diagram of the Company 34 Figure 2.2: Financial operation result of the Company 39 Figure 2.3: Business and production result of the Company 42 Figure 2.4: Positioning the companies in the market 69 Figure 2.5: IE Matrix of the Company 76 4 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 LIST OF ABBREVIATIONS Abbreviation Interpretation GDP Gross domestic product ASEAN Association of Southeast Asia Nations AFTA ASEAN Free Trade Area WTO World Trade Organization SWOT Strengths – Weaknesses – Opportunities - Threats EFE External factor evaluation IFE Internal factor evaluation IE Internal-external factor evaluation QSPM Quantitative strategic planning matrix TTGDC Hanoi Stock Trading Center PREFACE 5 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 1. The significance of the dissertation: In the tendency towards the global economy, Vietnam is gradually moving from the centrally planned, bureaucratic economy to an integrated economy. This transition and the international integration helps Vietnam have certain development.
From the accession to the World Trade Organization WTO, Vietnamese enterprises is catching new chances and facing the new challenges for their development and construction into a new height on the international market. A series of the state- owned enterprises have been standing strongly and gradually asserted their roles. Viglacera Ha Long Joint Stock Company is also one of the enterprises that have been transformed from the state-owned companies into the joint stock company, is one company specialized in producing the constructional materials like brick, clay. An enterprise wants to be successful is required to follow the right direction; there are flexible and suitable changes with its business environment.
A right business strategy and a qualified team who are capable of organizing and implementing strategies to help company to catch, take advantage of opportunities and limit risks, develop their strengths, overcome the weaknesses in order to achieve the best profitability. Viglacera Ha Long Joint Stock Company is a small and medium sized company, has just been transited to the form of equitization, severely competitive business environment, the establishment of business strategy for company is so much important. However, due to many different reasons that this problem is less got interested. A main reason is that the Company is a member of Viglacera Corporation.
The previous production plans were mainly based on the Corporation’s assignments. Business strategies were mainly ceased at formulation and implementation of quarterly and annually business plans in line with the Corporation’s common plan. The long-term strategic plans are sketchy and lacking of science. Another reason is due to the lack of theoretical rationale, lack of constructing strategy skills.
Therefore the Company has not have business strategy with a right construing. Stemming from the practical needs and having the desire to 6 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 apply knowledge at the working place where group’s members work. Therefore, the group mutually select the topic of “To establish the Business Strategy of Corporation Ha Long 1 - In the period of 2010 to 2015” as the dissertation of the group. Research purposes of the dissertation Based on learned theory and application into the enterprise’s practice in order to improve production efficiency, lower costs, bring about higher profits for businesses, and enhance the value of the enterprise resulting in increasing the social efficiency.
To apply the theoretical basis, the analytical tools to build an appropriate business strategy for the enterprise. To propose action plans to implement the strategy. To propose solutions and recommendations for the company regarding the implementation of this strategy. Objectives and scope of the research The researching objectives: Viglacera Ha Long 1 Joint Stock Company Scope of the research: analyzing the production and business environment for constructional materials of the Viglacera Ha Long 1 JSC, from which to build the business strategy of the constructional materials of clay for the Viglacera Ha Long 1 JSC in period of 2010 to 2015.
Due to limitation on time and scope of the learning process and requirements of the subject, we were only able to study deeply and build business strategies for current business lines of the enterprise but not to mention extension to other fields. Methodology To apply direct methodology: Gather information from newspapers, magazines, the Internet. The statistics from the published documents, the financial statements, balance sheet and business report in 2008, 2009 and first 6 months of 2010, the rules, regulations, the strategies, and data of the Viglacera Ha Long 1 Joint Stock Company. 7 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 Additionally, to using method of analysis, synthesis, comparison in order to analyze the business activities of the Company.
Structure of the dissertation: THE DISSERTATION: "BUSINESS STRATEGY OF VIGLACERA HA LONG 1 JOINT STOCK COMPANY IN PERIOD OF 2010 - 2015" INTRODUCTION: CHAPTER 1: THEORITICAL BASIS CHAPTER II: STATUS OF VIGLACERA HA LONG I JOINT STOCK COMPANY CHAPTERIII. CORPORATE STRATEGIC PLAN OPTIONS, SOLUTIONS, RECOMMENDATIONS AND CONCLUSIONS REFERENCE MATERIALS CHAPTER 1: THEORITICAL BASIS 1. BUSINESS STRATEGY FOR THE ENTERPRISE 8 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 1.1 The concept of business strategy Johnson and Scholes (Exploring Corporate Strategy) defined “the strategy” as follows: “Strategy means the direction and scope of an organization in a long run to gain competitive advantages for such organization through the formulation of its resources in an alternative environment, to meet market demands and satisfy the expectations of concerned parties”. In other words, the strategy means: What is the enterprise trying to achieve in the long run (direction).
What is the market that the enterprise is competing and what kinds of activities involved in such market? (market; scope). How can companies perform better than other competitors in such market? (advantages). What are the resources (skills, assets, finance, relationships, technical competence, facilities) needed to be able to compete? (resources). What are the environmental factors, external factors that influence on the competitive capacity of enterprises? (environment).
Values and expectations of those who have power inside and around of the enterprise? (concerned parties). Levels of strategy in the enterprise The strategy exists at multiple levels in any organization - from the whole enterprise to each employees. Strategy at the level of company - related to all purposes and scope of the enterprise to meet the expectations of the concerned parties. This is a crucial level because it is strongly influenced by investors in the enterprise and led to make 9 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 strategic decisions throughout the enterprise.
Strategy at the company level is often evident in the “mission statement”. Strategic at the level of business departments - more related to a method of successful competition in a specific market. It concerns strategic decisions about choice of products to meet customer needs, gain advantages over competitors, exploit or create new opportunities. Functional strategy - related to organization of each bodies of the enterprise, to bring to the level of company and level of business departments under a strategic direction.
Thus, the functional strategy focuses on issues of resources, processes, human resources.2 The nature of business strategy Similar to military strategy, competitive strategy of an organization are directed towards achieving a match between the capacity to differentiate and external environment in which participants compete. However, compared to military strategy, business strategy is more complicated. Unlike the military conflicts, the business competition does not always cause outcomes of the winners and losers. The rivalry in the industry sometimes has the opportunity to improve strength and skills as the seeds of competition.
The value of the capacity to differentiate and bring competitive advantages for organizations can be reduced over time by the changing environment. Because of this capacity, competitive strategy includes not only one but also a few different decisions. It is important to continuously explore new opportunities, prevent and repel potential threats, overcome the current weakness and shift power to new fields (Figure 1. Every enterprise needs to respond to strategic decisions continually.
However, a number of strategic decisions can become more urgent and overwhelming in some certain period, it depends on the specific context. 10 BUSINESS STRATEGY OF HA LONG VIGLACERA JOINT STOCK COMPANY 1 IN THE PERIOD 2010 - 2015 Strengths Opportunities Application Maintenance Discover Inside Strategy Outside Strategy Pass Prevent Weaknesses Threats Figure 1.1: Business Strategy (Resource: PhD. Le The Gioi, Doc. Nguyen Thanh Liem, Ma.
Nguyen Huu Hai (2009), Strategic Management, Statistics Publishing Press) 1. The characteristics of the business strategy In business, to achieve successes for the long term, every enterprise needs to constantly upgrade its competitive advantages over time.