Andrews University GRIGGS CAPSTONE PROJECT REPORT Building corporate business strategy for Vietnam Australia Refrigeration Electrical Engineering Group Joint Stock Company in i the period of 2012 - 2016 | Group | Nguyen Thanh Phuong - Group leader Doan Thi Ngoc Bich Do Dinh Hieu Dinh Thi Phuong Class GaMBA0O1.X0610 HANOI 2012 CAPSTONE PROJECT REPORT Group No.01- GAMBAOT.X0610 CONFIRMATION VIETNAM AUSTRALIA ELECTRONICS JOINT -STOCK COMPANY Address: 30 — Tran Dai Nghia Ba Trung - Ha Noi Tei: 04 3628 Hai 1698 Fax: 04 3628 3115 Website: kangaroo.vn To: - Date: 45 / 4⁄2 / 2011 Master of business administration program — Grigg University ETC -— Vietnam national university Ha noi SUBJECT: BUILDING THE BUSINESS STRATEGY OF VIETNAM AUSTRALIA ELECTRONICS JOINT -STOCK COMPANY IN THE PERIOD OF 2011 -2015 - Kangaroo has done fully support for Group | — X0610 when they practiced and learned in company about operation status, vision and strategy of company Group members have expressed an enthusiastic and creative have closely followed up current situation of company and receive a good result in working time in Kangaroo hoy | { INA Cty PHAR + ASL TONG GIAM BOC ACKNOWLEDGEMENT On behalf of our group, we would like to give our deep gratitude to dedicated support of lecturers in Center for Educational Technology and Career Development ETC, Post University Department — Vietnam National University; Griggs University — The US We also expressed Refrigeration Electrical our thanks Engineering to Board Group of Management Joint Stock of Vietnam Company Australia providing data for completion of this capstone project Although our group tried our best to weil this capstone project due to limited knowledge this capstone project has limitations Thus, we wish to receive significant contribution of lecturers, colleagues and friends to obtain completed project COMMITMENT Group I of class commits it is our own research project Data given capstone project is honest and has been not published in any scientific projects in this GRIGG UNIVERSITY Strategic management INTRODUCTION PART As participating in the market economy enterprise needs to define its specific objectives and strategies to be able to survive long and strong growth As mentioned by Fredr.David 2006" in "Strategic management concepts - Statistical Publishing House, then "Strategy is the means to achieve long-term goals Business strategy may include the geographical development, diversification of activities, ownership, product development, market penetration, spending cutiing, liquidation and joint venture "and "Targets according the defination are defined achievements that an organization seeks to achieve in pursuit of itss duties." To survive and grow, the businesses need to identify the policies and business strategies to fully take advantage of the opportunities to increase profits and limit at the lowest level of risks, from that to improve production efficiency in business and competitiveness of enterprises Identifing strategy or otherwise forming strategy 1s first job to of every business, this work includes what new business decision to participate? What business industry should be drawn? how ts the distribution of resources, whether or not develop or expand operations? participate in the world market or not? affiliate or joint venture and how to avoid a power of control of competitor Existing and development problems of a business not only enterprise itself but also is influenced information technology and global much unitary depends on the activities of the by environmental are environment factors Today, changes which are changing business model and human society The world we are living is becoming borderless with global citizens, global suppliers and distribution agents The world is changing and businesses must adapt to that change, otherwise they will perish before the face The frequent changes of business environment, consumption are opportunities of these enterprises but also can the demands of be tremendous challenges for other businesses which make them always must set out the matter of survival and growth To want survival and development, map out the policies and Global the enterprises need to business strategies in order to fully take advantage of Advanced (aster of Business Administration GRIGG UNIVERSITY Strategic management business opportunities and limit at the lowest level of risks from which to improve efficiency and competitiveness and efficiency of production and business activities of enterprises Thus, business strategy 1s indispensable has especially important sense for the development of current and future businesses Vietnam Company Australia formerly Refrigeration known as Electrical Vietnam Engineering Australia Group Joint Refrigeration Stock Electrical Engineering Co., Ltd established since 2000 has created a strong foothold in the market of appliances, refrigeration & electrical engineering in the country In 2003, to promote its strengths and to continue to grow, Thanh Do company deployed additional services of event organization and combining with activities, to launch a new product "Household, professional event successfully organized officially organization"and operating renamed ELECTRICAL Refrigeration, into electrical by 2006, model ENGINEERING a major of Team VIETNAM engineering change when Building, AUSTRALIA combined the Thanh company Do was REFRIGERATION GROUP JOINT STOCK COMPANY Since then, this breakthrough product has gained the attentions of the customer, becoming one of the development strategy of VIETNAM ELECTRICAL ENGINEERING the went company ACADEMY OF ENGINEERING one more VIETNAM GROUP GROUP step AUSTRALIA JOINT as putting AUSTRALIA JOINT STOCK STOCK into REFRIGERATION COMPANY operation REFRIGERATION COMPANY." In 2009, "TRAINING ELECTRICAL This academy was built on the campus of entertainment V'star located in Hoa Binh, Hoa Binh province, both a resort combined with the game system for its customers Today, VIETNAM AUSTRALIA JOINT STOCK household steam REFRIGERATION COMPANY nearly 100 ENGINEERING lines of other GROUP refrigeration and products such as meat grinders, blenders, food detoxify ozone jacuzzi, fan, rice cooker products, has ELECTRICAL as the In which, long-term business and development Global appliances development strategy process, VIETNAM Advanced are considered of the company AUSTRALIA Master of Business the most special Through its REFRIGERATION Administration GRIGG UNIVERSITY Strategic management ELECTRICAL ENGINEERING GROUP JOINT STOCK COMPANY _ has achieved many successes, the company's revenue Is increasing the income of staff members is increasingly household society the company ahs also contributed products with high quality to serve consumer demands and believed development, supply improved and selected the demand by domestic and foreign for the whole consumers for product quality as well as the demand service to the society is increasingly demanding, many During for product the company has been growing over its scale and diversity of products However, in a straight angle in the actual operations of the business, the company still exists some defects which have not high competition to catch up the flow of the enterprise such as product price for the same products of the businesses at the same industry 1s still high, customer care is not enough to attract employees and customers to come to the business which 1s mainly due to the prestige and brand of the company domestic and foreign markets, promote and overcome compete with construction based on the strengths some weaknesses which businesses in the same Based industry, for the period of 2012-2016 on the needs of of the company should are faulty, not strong enough the corporate business strategy is set out as a matter of urgency thesis "Building corporate business strategy for Vietnam to The Australia Refrigeration Electrical Engineering Group Joint Stock Company in the period of 2012 - 2016" is carried out by the student group of the MBA Associate company, Prof Dr combined Vu Thanh with Hung class at the company with the help of along the knowledge with learned the team of staff within in the class, we have the learnt, studied and completed the graduation capstone with the thesis: Study objective of the thesis - Systematization of the theoretical issues on strategic management - Analysis enterprise, from and evaluation which of the to evaluate internal the strengths, and external weaknesses, situation of the opportunities challenges for the enterprise Global Advanced (aster of Business Administration and GRIGGS UNIVERSITY Strategic management - Propose some strategic complete solutions of the company in the period of 2012-2016 Scope of study General theoretical basis and foundation boxes Scope of study does mobile phones, not toform the business strategy include building materials industry safety deposit solar energy - Analysis & evaluation of the internal and external situation of the enterprise, evaluation of strengths, weaknesses, opportunities and challenges for the enterprise - Determination of some strategic complete solutions of Vietnam Australia in the period of 2012-2016 Research method - Use of the available documents (secondary data) to consider the size, structure and trend of the market - Research, investigation and survey to collect primary data which is mainly qualitative method - Interview method Structure of the thesis: In addition to the introduction and conclusion, the thesis is divided into three chapters: - Chapter |: Theoretical basis - Chapter 2: Business strategy construction for KANGAROO - Chapter 3: Selection of strategic implementation GRIGGS UNIVERSITY Strategic management CHAPTER THEORETICAL International trends along with I BASIS the scarcity of resources Is increasing, the rushing development of technology, especially the explosion of global information technology and beside is the needs of the domestic and foreign market which require more rigorous for the commodities products with quality, design and type of more diversity Survive and thrive in the business environment ts constantly fluctuating and increasingly fierce competition between peers today requiring every business must have a strategy for survival and development of his own business and also to contribute to the survival and development of the industry in which business enterprises to participate For each enterprise, the construction of proper business strategy is indispensable, to form the right strategy will create the ability to seize opportunities, ability of success, and avoiding the threats and risks, ensuring the stable and sustainable development of the business Since the '60s, the twentieth century, the strategy was applied to the business field and the term of "Business Strategy" was born The concept of business strategy developsover time and we approach it in different ways In 1962, Chandler defined strategy as "the identification of long-term fundamental goal, purpose of the enterprise and the application of the sequence of actions as well as the allocation "(Chandler, of necessary A (1962) Strategy and Structure resources to implement Cambridge this goal Massacchusettes MIT Press) By the 1980s, Quinn gave definition which was more general "strategy is the pattern or plan to integrate the major goals policies, and action sequences into a tight cohesive whole"(Quinn, Incrementalisn Homewood, Global JB1980 Strategies for Change: Illinois, Irwin) Advanced Master of Business Administration Logical (GRIGG UNIVERSITY Strategic management Later, Johnson which had and Scholes re-defined a lot of rapid organization for long change: term strategy "Strategy to gain is the competitive in environmental direction advantage and conditions scope of an for the organization through format of its sources in the changing environment, to meet market demand and satisfy the expectations of stakeholders "(Johnson, G., Scholes, K (1999), Exploring Corporate Strategy , 5th Ed Prentice Hall Europe) 1.1 Concept 1.1.1 Concept of business strategy 1.1.1.1 Traditional approach "Strategy" is a term derived from the Greek "Strategos" used in military Modern time military theorist Clawzevit also said that: Military strategy 1s the art of commanding in advantageous position A publication of the Larous dictionary considered: strategy is commanding art of the means to win Scholar Dao Duy Anh, in the Vietnamese Dictionary wrote: strategy 1s plans set to win on one or more fronts Thus, in the field of military, the term of strategy in general has been considered as a commanding art to win a war 1.1.1.2 Approach in the new concept In addition to the traditional approach as above, many business organizations approach strategy in the new ways: Business strategy is a plan to control and use human resources, finance, assets with the aim to improve and ensure its vital interests Kenneth Andrews Is the first one to make this prominent idea in classic book "The Cencept of Corporate Strategy", he said, strategy 1s what an organization should based on its strengths and weaknesses in the context of opportunities and threats Brace Henderson, strategist and the founder of Boston Consulting Group has connected with the strategic concept with advantage is the placement of a company competitive advantage Competitive in a better position than competitors to create economic value for its customers "The strategy is a careful search for a plan Global Advanced Master of Business Administration GRIGG UNIVERSITY Strategic management of action to combine and develop competitive advantage of the organization The difference between you and your competitor is basis for your advantage." He believes that it can not coexist two competitors if their business method ts identical New differences should be made then it can exist Michael Porter also agreed the strategy 1s related to the difference identification of Henderson: "Competitive It is careful selection of a different series of activities to create a set of unique values " Despite any approach, the nature of the business strategy 1s outline of future image of the enterprise in the field of operation and exploiting ability In this understanding, the term of business strategy is used by three most common senses: - Determination of long-term goals of the business - Recommendation of general action programs - Selection of the action plans, deployment of the allocation of resources to implement that goal 1.1.2 Characteristics of strategic management The achieve strategy in each clearly period identifies the basic and thoroughly objectives, complete business direction to in the areas of administrative activities of the business Orientation of the strategy aims at ensuring the business to develop continuously and firmly in the business environment which often volates Business strategy only draws operation directions of the business in the long term, Operation frame of the business in the future Strategy is orientation and in business practice requires combining strategic objectives with economic objectives, consider the reasonableness and adjusted to suit the environment and business conditions to ensure business efficiency and overcome the bias due to the strategic orientation of the cause Business strategy is built on the basis of the competitive advantage of the business to ensure maximum and i use of resources (human Global Advanced mobilization and combine well with the exploitation resources, both tangible and Master of Business invisible assets), core Administration ... out as a matter of urgency thesis "Building corporate business strategy for Vietnam to The Australia Refrigeration Electrical Engineering Group Joint Stock Company in the period of 2012 - 2016"... gained the attentions of the customer, becoming one of the development strategy of VIETNAM ELECTRICAL ENGINEERING the went company ACADEMY OF ENGINEERING one more VIETNAM GROUP GROUP step AUSTRALIA. .. by 2006, model ENGINEERING a major of Team VIETNAM engineering change when Building, AUSTRALIA combined the Thanh company Do was REFRIGERATION GROUP JOINT STOCK COMPANY Since then, this breakthrough