Paris Graduate School of Management Thai Nguyen University PRESENTATION Nguyen Van Loi VN1001239 Class: IeMBA.B03 October, 2013  Introduction  Chapter 1: Theoretical basis for building business strategies of a company  Chapter 2: Analysis of environment and business situation of Nam Duoc  Chapter 3: Conclusions and solutions  References  Appendix Purposes and reasons for the thesis topic Thesis Goals Research Scope Research Methodology Thesis significance Thesis Structure  Strategy and strategic level  Business strategy and its orientations  Role of business strategy for a company  Analysis and development process of a comprehensive strategy  External environment analysis  Internal environment analyzes  Threats - opportunities - weaknesses - strengths (TOWS)  Strategic position and action evaluation Matrix (SPACE)  Quantitative strategic planning matrix (QSPM)  Overview of establishment and development history  Structure of Nam Duoc J.S.C  Functionally, the basic task of the management department  Status of activities Nam Duoc joint stock company period 2010 – 2012 and first six months of 2013   Opportunities Threats Economic  Spending on medicine  Depression & high inflation Political  Government's  Lacks transparency in policy commitment to support management policies Social &  Trend of natural products  Negative image of herbal medicine  Technology of extraction  Herbal material is decreasing  Enforcement of intellectual cultural Technology Environment  Some kinds of disease related Legal  Drug regulatory policies are being tightened property protection is poor  In next years, the pharmaceutical industry is growing by 17% on average  The growth rate of the herbal products market is expected to increasing by about 25%    Advantage/power of the customer: Medium  Advantage/the power of suppliers: High  Threat of substitutes: Medium  The threat of new competitors: Quite high  Pressure from competitor: High Competitive situation in the industry is dispersedy Nam Duoc does not have any really strong capacity and this is really trouble to think means that Nam Duoc didn’t build the significant competitiveness The impact of extenal   factors Importance level Classification Total points   Tổng cộngng cộngng 100   2.57 The analytical results of the matrix of external factors evaluation showed important point of Nam Duoc is 2.57 This means that the ability of NamDuoc response to external factors is medium   • Strengths Marketing  Strong brands Weaknesses  Lack of ETC and comestic distribution channels • Operation  Stabilizing the product  quality • Finance  Kind of medicine form isn’t diversified Good at executive management • R&D  Good relationship with  medicine’s institutions The isolated and purified capacity was weak • Information technology  The applications of IT in the promotion is good  ERP was weak • Human resource  Internal communication was quite diverse  Organizational structure, functions wasn’t clear Nam Duoc The critical No success factors Definition Weight (KSFs) Quantitative assessment (1-4) The average   Total   100  2.8 we have important score is 2.8 It show that internal factors of Nam Duoc is average It is ready to be able to take advantage of opportunities and addressing the challenges of the market to accelerate development in the future   O S W Strategy - "Strategy for sustainable  … development, stability based on  … available capacity”  … …  … Strategy – “Acceleration strategy  … based on external resources”  … …  … …  … … … T … Variables Score Average score • Financial Strength (FS)   4.3 • Competitive Advantage (CA)   -2.3 • Environment stability (ES)   -2 • Industry Strength (IS)   4.5 From the results of the matrix shown in table, we have following conclusions: 1) FS + ES = 4.3 - = 2.3 2) IS + CA = 4.5 – 2.3 = 2.2 Classification 1)The Strategy capable of replacing Strategy Strategy Note AS TAS AS TAS 12 16     185   207   external factors 2) The internal factors Total