2010 │GLOBAL ADVANCED MBA PROGRAM (GaMBA01.N04) │ CAPSTONE PROJECT REPORT Team No: 2 BUSINESS STRATEGY OF VIGLACERA TIEN SON JOINT STOCK COMPANY Class:GaMBA01.N04 HANOI 2010 GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM THESIS REPORT BUSINESS STRATEGY OF VIGLACERA TIEN SON JOINT STOCK COMPANY Team No. 2 Nguyen Danh Vinh Do Vuong Linh Nguyen The Vinh Nguyen Van Chien HANOI 2011 ENGAGEMENT Our team declare the content of the Thesis report presented in this study is the work of our own group, is not copy of others, the data used in research is true to the original. If the thing is not true, we will take responsibility for ourself. Nguyen Danh Vinh 2.
Do Vuong Linh 3. Nguyen The Vinh 4. Nguyen Van Chien Business Strategy – Viglacera Tien Son Joint Stock Company ACKNOWLEDGEMENT We would like thank to our teachers for helping us with theoretical studies and situation analysis of Viglacera Tiên Sơn Joint Stock Company. We gave some solutions both of macro and micro aspects.
Solutions focus on necessity to change and complete the business strategy of the company. Because of our limited knowlege, moreover our subjective opinions, the work may not be so perfect as expected. So we look forward to receiving feedback and advice from teachers so that we can complete the thesis. 4 Business Strategy – Viglacera Tien Son Joint Stock Company CONTENTS CONTENTS PAGE ENGAGEMENT 3 ACKNOWLEDGEMENT 4 TABLE OF CONTENTS 5 INTRODUCTION 11 CHAPTER 1: THE GENERAL THEORETICAL BASIS OF 14 BULDING BUSINESS STRATEGY 1.
The theories of strategy 14 1. Concept of strategy 14 1. Basis of strategy 16 1. The Strategy process (Chart) 17 1.
Micro environment analysis – Pest model 18 1.Politic – Legal environment. Social cultural environment 19 1. Environment sectors analysis – five-competition- 21 forces model of Michael Porter 1. Analysis of internal business environment 23 1.
SWOT matrix settings and options business strategies 24 1. Matrix (BCG) 28 CHAPTER 2: ANALYSIS OF BUSINESS ENVIRONMENT 30 VIGLACERA TIEN SON JOINT STOCK COMPANY. General introductions of Viglacera Tien Son JSC 30 5 Business Strategy – Viglacera Tien Son Joint Stock Company 2. Process of foundation and development 30 2.
Vision, mission, core value, core business areas of the 31 company 2. Organizational structure of the company 31 2. Functions and business tasks 32 2. Characteristics of Business - Organizational structure 33 management of Viglacera Tien Son JSC 2.
Analysing impacts of the economic environment (PEST Model) 34 to Viglacera Tien Son JSC in 5 groups of factors 2.Political & legal environment. Socio-cultural environment 35 2. Analyzing five competitive forces model of Michael Porter's 39 for Viglacera Tien Son 2. Internal analysis of Viglacera Tien Son JSC.
Analysis of production capacity and technology of 44 Viglacera Tien Son JSC 2. Granite tiles of Viglacera Tien Son JSC 45 2. Analysis of financial capactity of Viglacera Tien Son JSC 48 2. Asset structure, capital sources: 50 2.
On the management and use of company capital 51 2. Payable capactity 52 6 Business Strategy – Viglacera Tien Son Joint Stock Company 2. Financial capactity of Viglacera Tien son JSC 53 2. Analysis of skill and capacity of marketing of 54 Viglacera Tien son JSC.
Distribution systems of Viglacera Tien son JSC 54 2. Direct and consignment export system 60 2. Analysis of products 60 2. Determine customer consumption habits and the 62 products of the company's brick and granite 2.
Human resources of Viglacera Tien son JSC 63 CHAPTER 3: SELECTIONS OF STRATEGY AND SOLUTIONS 64 FOR VIGLACERA TIEN SON JSC 3. Market trend for granite tiles and objectives of company 64 3. Vision of company 64 3. General strategy of company 64 3.
SWOT matrix model of Viglacera Tien Son JSC 64 3. Strengths in financial activities of company 64 3. Strengths in production 65 3. Strengths in marketing strategies of Viglacera 65 Tien Son JSC 3.
Weaknesses in financial activities of company 66 3. Weaknesses in production management 66 3. Solutions to implement the strategy of company 78 3. Promote investment in expanding production growth 78 7 Business Strategy – Viglacera Tien Son Joint Stock Company strategy focused 3.
To boost exports to markets in Taiwan, India, 78 Thailand and Europe 3. Development of production systems, improve the 79 company's internal-oriented low-cost strategy 3. Solutions to improve the company’s finance 79 3. Solutions to improve management of the 80 company's production 3.
Solutions for marketing of company 83 3. Solutions to improve human resources 83 management of the company. Developing new products to create the difference 88 3.5 Building corporate culture to the company 89 CONCLUSION 91 REFERENCES 92 Appendix 93 8 Business Strategy – Viglacera Tien Son Joint Stock Company LIST OF TABLES, CHARTS No. Name of Tables, Charts Page Chart 1.1 The Term “Strategy” 14 Chart 1.2 The difference in three ways to use the term "strategy" 15 Chart 1.3 The Strategic Management Process 17 Chart 1.4 Culture and Society 18 Chart 1.5 Analysing five forces models of competition of M.8 Matrix (BCG) 28 Chart 2 Organizational structure of Viglacera Tien Son JSC 33 Table 2.1 Shareholders capital structure at 31/12/2009 32 Design capacity and production of building materials untill 37 Table 2.2 2010 Statistical output of ceramic tiles from Italy by type (Unit: 38 Table 2.3 1000 m2) Ceramics export growth from 2006 - 2008 (Million U.5 Manufacturers of tiles in Domestic 42 Granite tile manufacturing output of the company in the years 44 Table 2.6 2006 - 2009 System which supplies raw materials and fuels in 2009 of 46 Table 2.7 Viglacera Tien Son Joint Stock Company The Brief balance sheet of Viglacera Tien Son in the years 48 Table 2.9 Business statement report in the years 2008 and 2009 49 Table 2.10 Asset structure, capital source of Company 50 Table 2.11 Top of the leading export countries of tiles in the world 52 9 Business Strategy – Viglacera Tien Son Joint Stock Company Table 2.12 Distribution Systems of Viglacera Tien Son JSC 56 Table 3.1 Manufacturer of tiles in Domestic 69 Table 3.2 The sum table SWOT Matrix 70 Table 3.3 The sum model tables of BCG for Viglacera Tien Son JSC 73 Table 3.4 Formation of strategic plans 76 10 Business Strategy – Viglacera Tien Son Joint Stock Company INTRODUCTION: GENERAL OVERVIEWS 1.
General context, the necessity and significance of the research Today, most of successful businesses of Vietnam grew up and developed from special market situation of economic and political situation of Viet Nam. Viet Nam grew up from a centralized economic market where business economic activities are distributed to plans from the top to down but not to the principle of supply and demand, and the market is clearly divided with no competitive factors in business. Some businesses developed from family workshops whose owners realised the chance soon and used up the chances to develope up till now. But factors helping us to gain success in the past are whether or not suitable for business to continue to develope in new market situation when Viet Nam joined WTO, an intensively competive market, a playground where competitors are foreign companies and multinational corporations with abundant capitals, talent and active personels and much experience from other markets.
Obviously, to be successful in the new market environment, businesses must provide themselves with the knowledge of new rules, must master the business strategy in general and competitive strategy that suit with the requirements of new markets. Competitive strategy is one of the most important strategies for anyone who wants to play a role in any market today. From individual to become common, globalization has changed the nature of business activities from concentrating on producing the best products with cheapest price as soon as possible, businesses have to shift their attention to the market. Simply because they want customers to believe and use their products rather than competitors’.
And to do that, companies need to understand customer needs better, they need to communicate better about their products, and they need to build a long- term relationship between the brand and target customer groups. Because of these reasons, the business strategy is a guideline for all activities aimed at improving competitiveness and business performance to help develop sustainable business. 11 Business Strategy – Viglacera Tien Son Joint Stock Company Our country has been in new stage and joined widely in the world economy. The situation has created many opportunities and challenges for Vietnam enterprises especially in the construction industry in general and building materials manufacture in particular.
Today, Vietnam companies construction materials industry have no basical business strategy to maximize the opportunities and overcome challenges to improve competitiveness in the new business environment, maximizing operational efficiency. In the market economy, enterprises to survive and develop need to prepare carefuly for activities, of producing and trading in the future. First of all, these are short-term plans for the immediate objectives and further, the strategy must be improved to accommodate long-term goals. With high competitive and big capital industries, the construction of the development strategy is very important and special meaningful to activity process of the business.
For all these reasons, the business strategic orientation that’s suitable with the specific characteristics of each company to survive, develop and improve competitiveness is the most urgent needs today. This theme will build, analyze and select business strategies and make necessary solutions to implement the strategy to improve competitiveness and business efficiency to help company to sustainably develop. Research purposes: - Research to find out the business strategy of Viglacera Tien Son JSC during the period 2010 - 2015; - Being aware of the strengths (the core abilities), weaknesses, opportunities and challenges of Viglacera Tien Son JSC; - From that, construct, analyse and choose trading strategies and offer nescessary solutions to implement those strategies in the period 2010 - 2015, to improve competitiveness and business efficiency and help Viglacera Tien Son JSC develope sustainably; - Clarifying and applying the theory of building business strategy on a specific business; 12 Business Strategy – Viglacera Tien Son Joint Stock Company - Making a guideline for the company implementing strategy to achieve the goal of bringing the company into a leading enterprise in manufacturing building materials in Vietnam. Approaches: - Approach: The method of calculation, data analysis, statistics, comparisons to evaluate practices and provide complete solutions.
- Methods of data collection: using secondary data from published material; survey market research on industry and construction materials in magazines, on the internet - Methods of analysis of data processing: analysis, synthesis and comparison. - The leading method in the study is the historical materialism, while descriptive statistics associated with the analysis and synthesis, compare. to clarify and specify the content of the dissertation research. Structural assignments Besides the introduction, conclusion and references, content exercises are structured into three chapters as follows: 13 Business Strategy – Viglacera Tien Son Joint Stock Company CHAPTER I THE GENERAL RATIONAL OF BULDING BUSINESS STRATEGY.
The theories of strategy. Concept of strategy The concept of "Strategy" (Strategy) is from ancient Greek, derived from the military field (strategos), the basic argument that a party could crush competitors, including larger rivals stronger, if they can lead the game and putting opponents on the battle-field advantage for the deployment of capabilities (advantage) of his. In the world of competitive business today, the concept is increasingly strategic research and development, but are concentrated in four main categories: plan, model, location, and vision. According to these views, the strategy is: "An unified comprehensive and coordinated plan is designed to ensure that the basic objectives of the business is carried out successfully" (Lawrence R.
Jauch and William F. "A model or plan of an organization to coordinate the main objectives, policies and actions in the order of a unified whole" (Quinn, J., B (1980) Strategy for change: Logical Inscrementalism. Homewood, Illois, Irwin.