LUẬN VĂN THẠC SĨ Chiến lược kinh doanh công ty TNHH thành viên Đạm Bắc Hà giai đoạn 2010-2015 đến 2020 THESIS MBA THE BUSINESS STRATEGY OF HA BAC NITROGENOUS FERTILIZER AND CHEMICAL ONE-MEMBER LIMITED COMPANY OVER A PERIOD OF 2010 - 2015 (TOWARDS TO THE YEAR 2020) TABLE OF CONTENTS  Page Acknowledgements i Table of contents ii List of figures, models and charts 01 List of table 02 A GENERAL INTRODUCTION 03 The background and the essential of the capstone studied 1.1 1.2 Background 03 03 The essential of completion of HANICHEMCO development strategy 04 The objectives of the capstone 05 The study method 06 The capstone structure 06 B ANALYSIS 10 CHAPTER I: THEORY OF ENTERPRISE BUSINESS STRATEGY 10 1.1 The concept of strategy and the role of business strategy 10 1.1.1 The concept of strategy and strategic administration 10 1.1.2 The role of business strategy 13 1.2 Tools for analyzing and evaluating the strategy 14 1.2.1 Analyzing the business environment 14 1.2.2 Analyzing the internal environment of enterprise 18 1.3 Tools for determining position and orienting strategy 22 1.3.1 IE matrix 22 1.3.2 SWOT matrix 24 1.4 Types of competitive business strategy 26 1.4.1 Cost leadership strategy 27 1.4.2 Differentiation strategy 27 1.4.3 Focused business strategy 27 1.4.4 Integrated cost leadership/ differentiation strategy 28 1.4.5 Evaluating and selecting the strategy based on GREAT model 28 CHAPTER II : ANALYZING THE CURRENT STRATEGY OF HA BAC CHEMICAL AND NITROGENOUS FERTILIZER ONE-SINGLE MEMBER LIMITED COMPANY (HANICHEMCO) 30 2.1 HANICHEMCO overview 30 2.1.1 General introduction of HANICHEMCO 30 2.1.2 HANICHEMCO production and business situation over a period of 2005 – 2009 2.2 Analyzing and evaluating HANICHEMCO’s real situation 31 34 2.2.1 Analyzing the business environment 34 2.2.2 Analyzing HANICHEMCO’s internal situation 52 2.2.3 Analyzing and evaluating the real situation of HANICHEMCO by IE matrix 57 CHAPTER III: EVALUATING, SUPPLEMENTING, ADJUSTING AND COMPLETING STRATEGIES AND SUPPOSING SOLUTIONS TO THE IMPLEMENTATION OF HANICHEMCO’S DEVELOPMENT STRATEGIES OVER A PERIOD OF 2010 – 2015 61 (TOWARDS THE YEAR 2020) 3.1 HANICHEMCO’s development strategy over a period of 2010 – 2015 (towards the year 2020) 61 3.1.1 HANICHEMCO vision and mission over a period of 61 2010 – 2020 3.1.2 Development strategy for HANICHEMCO over a period of 2010 – 2015 (towards the year 2020) 3.2 Analyzing and evaluating HANICHEMCO strategy 61 63 3.2.1 Analyzing and evaluating the business strategy by SWOT matrix 63 3.2.2 Assess strategies by GREAT method 67 3.3 Assessing strategy of HANICHEMCO 68 3.3.1 The currently existing unreasonable business strategy of HANICHEMCO 3.3.2 Cause of the unreasonable existence 68 71 3.3.3 Some supplements to improve HANICHEMCO’s business strategic management during period 2010 – 2015 (towards the year 2020) 72 3.4 Solutions for the strategy of HANICHEMCO 75 3.4.1 Solutions for expanding production scale (low cost strategy) 75 3.4.2 Solutions to make a difference and keep its difference 76 3.4.3 Solution on product’s diversification 78 3.4.4 Solution on management model and human resources 80 3.4.5 Some other solutions 80 3.5 Suggestion 83 3.5.1 Macro-policies 83 3.5.2 In term of trading environment 83 C CONCLUSION References 84 86 LIST OF FIGURES, MODELS AND CHARTS Pages Figure 1.1: The process of strategic administration 12 Figure 1.2: External environment 15 Model 1.3: M E Porter’s 5-force model 17 Model 1.4: IE matrix 24 Model 1.5: SWOT matrix 25 26 Figure 1.6: Types of business strategies 31 Figure 2.1 Diagram of HANICHEMCO organization structure Chart 2.2: Business norms over a period of 2005-2009 33 Chart 2.3: Output of key products over a period of 2005-2009 33 Figure 2.4: Urea distribution system of the company 44 LIST OF TABLES Pag es Table 1.1: The factors of macro environment 16 19 Table 1.2: Visible resources 20 Table 1.3: Invisible resources Table 1.4: Weighting score 23 Table 1.5 Model GREAT 29 Table 2.1: Production and business norms over a period of 2005 – 2009 32 Table 2.2: Urea’s product capacity of the world 36 Table 2.3: Area and production of cereals 40 Table 2.4: Demand forecast for Urea in Vietnam to 2015 42 Table 2.5: Capacity of fertilizer manufacturing plant in Vietnam 42 Table 2.6: Urea consuming quantity of the company 45 Table 2.7: The amount of purchased coal from 2005 to 2009 47 Table 2.8: The purchasing coal price of HANICHEMCO 47 Table 2.9: Evaluate the strengths and weaknesses compared with other 49 competitors Table 2.10: DAP fertilizer imported quantity into Vietnam from 2003 ÷ 51 2008 Table 2.11: The human resource structure of the company 56 Table 2.12: The external factors 58 Table 2.13: The internal factors 59 Table 3.1: Synthesis SWOT matrix 63 Table 3.2: Quantitative matrix by GREAT criteria 68 Table 3.3: Comparison of two strategies 70 Table 3.4: Quality standard of Urea 77 A GENERAL INTRODUCTION THE BACKGROUND AND THE ESSENTIAL OF THE CAPSTONE STUDIED 1.1 BACKGROUND Viet Nam has built and developed its economy from a poor and backward country, which was seriously devastated by the continuous wars During a long time, Viet Nam had applied centrally planned economy but in fact it was an order and nonmarket economy As a result, it restricted and annulled the motivation and competitiveness between economic forces, affected the mobilization and utilization of country resources in order to create a momentum for development Besides, the management has made several mistakes, which caused by self-opinion, imposition, lack of socio-economic knowledge Therefore, the production and business efficiency was very low and was on the tendency of ever decrease, leading to long lasting stagnant economy Consequently, the socio-economic crisis happened at the end of 1980s Viet Nam has introduced the reform policy since 1986 with its objective of building the market economy according to the orientation of socialism After 20-year of reform, Viet Nam has gradually operated its economy in line with market laws It created a momentum for the country development thanks to the maximization use of the available resources In addition, Viet Nam has overcome the socio-economic crisis and reached growth The socialism-oriented market economy is the generally economic model, which was selected by Viet Nam in the renovation period It is a multi-sector economy in which the State sector plays a key role The State enterprises take the lead position in the economy 1.2 THE ESSENTIAL OF COMPLETION OF HANICHEMCO DEVELOPMENT STRATEGY Ha Bac Nitrogenous Fertilizer and Chemical one-member limited company (HANICHEMCO) is a State enterprise located in Bac Giang province with objective of production of fertilizers and chemicals Over the last 50-year of construction and development, HANICHEMCO has contributed to the production of agriculture and has ensured food security Besides, its other products were supplied to meet the consumption demand of the socio-economy However, in the face of current opportunities and challenges in the international integration, the existing weaknesses of HANICHEMCO need to be overcome are small scale, unreasonably organizational structure, low competitiveness, low investment into the replace of technological process, backward techniques and weak management, etc Thus, it demands to set up a reasonable strategy for business and production development so as the company is able to become a strong unit of Viet Nam Chemical Corporation To so, the company has to continuously increase its production and business efficiency As we know, the business strategy has played an important role and brought about great benefit to enterprise The strategy helps enterprise realize its objectives and the way in its process of business and production; also helps enterprise grasp and make use of business opportunities; simultaneously gives solutions to surmount dangers and threats in the competitive market; contributes to enhance the efficiency for use of resources and to increase the competitive position with a view to ensuring the sustainable development for the enterprise The strategy creates the firm bases for building policies and decisions on production and business suitable for market fluctuation In the past, HANICHEMCO “business strategy” was simply a plan of production and business with the annual objective counted on a basis of result gained in the previous year plus the growth percentage (normally 5% ÷ 10%) Since the Decision No 217/ HDBT was issued on Nov 14, 1987 by the Ministerial Council regarding the reform policies on “socialism planning and self-financing applied to state enterprises”, HANICHEMCO has made great efforts and has been active in building an independent business and production plan Hence, it has obtained quite a lot of renovations and developments; has brought into play its resources effectively to push investment and maintained the high growth rate; has stabilized both production and consumption; has exceeded the planned target and has greatly contributed to the state budget and the society As a result, it is ranked in the chemical industry in Viet Nam The company’s strategy is normally set for a period of 5-year Its production and business strategy for a period of 2010 – 2015 (till 2020 included) was based on the result achieved over a period of 2005 – 2009 and the development orientation of Viet Nam Chemical Corporation However, it is necessary for this strategy to be revised, analyzed, evaluated, adjusted and supplemented to meet new requirements, which derives from market fluctuation, impact of economic recession and the company’s real situation as well as the opportunities and challenges in the years to come Three out of members in our group are currently working at HANICHEMCO By our real experience and knowledge and with the support of teachers in the grade of International Business Administration Master – Griggs University, we unanimously study, analyze and evaluate HANICHEMCO production and business development strategy over a period of 2010 – 2015 (till 2020); given this, we suggest, supplement and adjust for the purpose of completing this production and business development strategy; advise HANICHEMCO Steering Board for an effective implementation THE OBJECTIVES OF THE CAPSTONE *) The study group collected and learned about the theoretic system, tools and methods for evaluation and basic analysis of strategic management science as a foundation for the analysis and evaluation of development strategy for HANICHEMCO over a period of 2010 – 2015 (towards the year 2020) 10 power is supported in the form of price of inlet coal material and is regulated by the Government However, since 2010, only power is supported in the price and this protection for other industries including fertilizer is no more As for import tax of fertilizer, since 2000, the import tax of urea fertilizer is 0% Therefore, HANICHEMCO really comes into the competition with its rivals not only in the country but also in the region and in the world + The price increase of inlet materials: As for HANICHEMCO, the most concern is coal price (power is produced by itself but material is dust-coal) Since 2010, the price of coal is not supported by the Government yet, the company has to buy coal at the market price It means the buying price of coal is high and this price is expected to be on ever increase in the future + As for production of “clean” products and environmental protection: HANICHEMCO produces urea fertilizer, CO2 and other new products as expected including DAP, Sulphat Amon, H2O2, methanol, etc Most ingredients of those products are harmless to the environment and the users as well HANICHEMCO always makes use and gathers redundantly manufactured products from the production, leading to a good environment The company’s environment is better when new production line is invested with modern devices and technology, which have to strictly comply with the environmental standards *) The objective of carrying out the cost leadership strategy:: In order to reach the cost leadership strategy, it is essential to obtain criteria including high output, the modern and advanced production line with low cost, low price of inlet materials + As for output: HANICHEMCO production line is small with the currently annual capacity of 18 thousand of ton vs the average capacity of 40 – 50 thousand of tones by advanced production lines in the world Such an output accounts for 25% of domestic urea consumption It demands the company to expand its production line to increase its output (the expected capacity is 50 thousand of ton) + As for inlet materials: most advanced production lines in the world use dust- 75 coal as inlet materials for production HANICHEMCO uses piece-coal as inlet materials at the double price in comparison with dust-coal, leading to high production price Meanwhile, the sources of dust-coal in Viet Nam are very large Thus, HANICHEMCO should use dust-coal in replace for piece-coal for the purpose of reducing production price and increasing opportunities in business + As for technology: The technology for urea production in the world has dramatically changed Shell and Taxaco technologies are currently leading in the dust-coal production But at HANICHEMCO, some steps in its production line are backward with high expenditure for production management Hence, the introduction of advanced technologies for both old and new production lines is essential (including renovation and expansion) In order to carry out the cost leadership strategy, it is essential for HANICHEMCO to renovate and expand the production scale and to introduce advanced technologies in the world for the production of urea from dust-coal *) The objective of diversification strategy: Product diversification helps the enterprise expand the market, reduce risks in case of ineffective business of major product However, it disperses the enterprise’s resources and is a challenge to enterprise on experience of production management of new product In our opinion, for the purpose of solving the above-mentioned issues, HANICHEMCO firstly should focus on production of products on a basis of redundantly manufactured products from the main production line In such case, we can find that the investment for equipment system is not high, inlet materials are available in the company, resulting in very cheap price of products Otherwise, thanks to an exhaust reduction of CO2, methane, SO2, the production environment and the environment in general are effectively improved Thus, the expense for investment in new product is low, the company resources are less affected and business efficiency is high For a long term, the company should invest in new products with the quality 76 outdone and friendly to the environment with a view to meeting the increasing demand of market However, in order to solve the issues of production and management experience, HANICHEMCO is suggested to focus on nitrogenousoriginal products such as DAP, sunphat amon (NH3)2SO4 – the company has great experience in production of NH3-original products Thus, with the objectives of product diversification and the implementation of this strategy from the inside to the outside and from the small to large scale, the company will invest in new products with high quality (from 2015 – 2020) after the expansion of urea production scale This helps HANICHEMCO balance resources, bring into play its experience and avoid the overlap of strategies *) The objective of differentiation strategy: The competitors are currently focusing on cost reduction aiming at occupying the market share but they are not concerned about the improvement of product quality We find that HANICHEMCO should pay great attention to the improvement of product quality for making its own difference in addition to cost leadership and diversification strategies Especially, HANICHEMCO has to minimize toxic ingredients in its products, which are harmful to the crops and environment; has to improve the preservation and package of products 3.3.3.2 Supplementing and completing the strategies Given the analysis and evaluation of HANICHEMCO’s current strategy, we propose to supplement and adjust HANICHEMCO strategy over a period of 2010 – 2015 (towards the year 2020) with a view to bringing into play it strengths and overcoming its weaknesses including: + Uniform the expanding production scale, having a clear guideline for implementation of specific investment and upgrading + Focus on exploitation of new products from wasted stuff of urea producing and investment for new products which could replace traditional fertilizer products + Improve further the quality of the company’s products, which focuses first 77 on the company's urea products With specific issues, consultant group will going to clarify in the part of solutions 3.4 SOLUTIONS FOR THE STRATEGY OF HANICHEMCO Through analysis and evaluation, consultant group suggests some specific solutions to improve chosen strategic as follows: 3.4.1 Solutions for expanding production scale (low cost strategy) Investment to expand production scale, combined with improvement of existing production lines to ensure synchronization between the two lines, with the goal of using available low cost natural raw material (gas coal production from dust coal) to increase production capacity, reduce production costs, lower product price Contents include: + Implement a new urea production line with to the old line, combined renovation and modernization technological equipment of the current production lines to increase the whole factory’s capacity with estimated at 500 thousand tons: in which the current production line is 18 thousand tons and the new line is 320 thousand tons + Using technology gasification from dust coal of Shell Company, this technology is considered as the most modern and reliable in the world This technology is to use dust coal to produce gas, allows to change raw materials from stone coal to dust coal (with a lower price) to reduce costs + Ensure the synchronization of the system by having two production lines to use the same coal gas manufacture, the finished product and packaging process Moreover, equipment choices are also considered carefully to maximize the capacity of current production line, coordinate and support each other to maintain stable productions (system of sharing pipes system of factory, available office, and new equipment choice) This will help to reduce the cost of initial investment to expand production scale When using dust coal as raw materials, with large reserves available quantity in 78 domestic, and raw material prices will cut in half compared with the price of stone coal, it will reduce the cost of production by 40% (as raw materials accounts for 50% of production cost) 3.4.2 Solutions to make a difference and keep its difference The differences focus on: the difference in products; differences in services; differences in human resources; differences in images Content of the solution is: + Implementation of new programs and management strategies to improve the quality of products (including urea products and other products), maintaining business and stable production, maintain and enhance its brands, make a difference for the product + Expanding potential market First of all, focus on Northern market and Northern Central Coast (mainly from Quang Binh) In the long term, the company needs to consider southern markets or fertilizer export The specific key contents are: - Make a difference in quality and image of urea products: Urea products of the company today meet the standard of TCVN - 1994 The objective of the company is to improve product quality to international standards (see table) Table 3.4: Quality standard of Urea Number Quantitative Current standard Expected standard standard Nitrogen content Humidity Size Burette content ≥ 46% ≤1% 1,5 ÷ mm: ≥90% ≤ 1,5 % ≥ 46% ≤ 0,5% ÷ mm: ≥ 90% ≤ 0,7 % Committing and continuing to implement quality management system standard ISO 9001:2008 79 - Create a difference in term of supply service In addition to the difference in terms of quality, utility, characteristic and form of trademark etc, the products of Ha Bac fertilizers (Urea) are always supplied with the best services, in a quickest manner, at the same time, the customer not waste lots of money in the process of sending and receiving products The company will take responsibility about product’s quality despite customers are direct or indirect buyers of Ha Bac Urea, besides, customers and the final consumers are always guided in details about the using and storage of the products In case of having trouble for each product, Company is directly meet with customer and find out solution to settle the issues to ensure benefits of customers - Create a difference in human resource In order to create a difference in products and service provided in the market to gain competitiveness with other companies, the first important thing that need attention in the development of human resource The technical producers must have high quality to control machines so as create good and stable products that is appropriate with user’s requirement Officer in the company, especially officers directly deal with product’s consumption stage must have good characters, opened mind and understand customer’s needs - Create difference in images + Pushing the company’s product advertisement and promotion + Building the brand name that attaches to the company’s logo and slogan One difference is responsibility with public and social community: The company commits to well implement standards on waste water drained to the environment, labour safety and labour’s benefits according to laws and regulations Actively participated to social works and charitable works, set up social issues for the poor, flood protection, humanity, for study encouragement, building some schools and social works o help the poor in the far and remote areas 3.4.3 Solution on product’s diversification 80 Invest in production of new chemical products, of this focusing on products where company has experience in production and high demand on the markets, at the same time produce products derived from other finish products from key production line, with the objective of reducing production cost and improve environmental conditions and product diversification Chemical products need to be produced as follows: 3.4.3.1 Products of Liquid CO2 using residue from Urea + Liquid and solid CO2 products are basically use in many industries and food and pill reservation This products use redundant CO2 of Urea production line The redundant gas can be restored and produce and amount of 60 thousand ton of CO2 per year Until 2012, the company will invest in two production lines in order to utilize all redundant gas from CO2 The production of Liquid and Solid CO2 serving markets with existed materials with relatively high price has created relatively high annual income and benefits for the company In other side, the utilization of Co2 gas will reduce the Co2 exposed to environment The product of H2O2, a chemical product, is used in knitted and pharmaceutical industries The product is produced from charcoal gas with low contents during Urea’s production With the gas, an amount of 10,000 H2O2 can be reached each year The company is investing in a production line with capacity of 10,000 tons a year, it is expected that in the beginning of 2011, the production line will official activate As similar as CO2 product, production of H2O2 has high value and can address environmental issues The product of methanol is industrial alcohol to be used widely in pharmaceutical and other specific industry This product is produced from waste gas in the coal refinery process with key contents of Methane gas The revoked gas can produce more than 20,000 tons of methane per year Currently, HANICHEMCO is focusing on research to invest in production line with capacity of 15,000 tons per year As above mentioned products, the product will increase the efficiency as well as well settle environmental issue of HANICHEMCO 81 3.4.3.2 Other new chemical products The product of Sulfate Amon and DAP is a type of fertilizers with Nitrogen content (DAP has Phosphate content), the group of products have similar characteristics compared to other products and even more than Urea for plants These products are produced from key materials of Ammoniac As a result, HANICHEMCO needs to focus on the investment in the production of the products in order to increase competitiveness in the fertilizer markets 3.4.4 Solution on management model and human resources 3.4.4.1 Consolidate, reinforce the current management model + Continue to consolidate the management system to meet the work requirements in the present as well as in the future Consolidate the functional system and responsibility of units, offices to ensure systematic operation without overlapping + In order to bring into play in the operation of production and trade, some units have full conditions for equitization The company has implement equitization the unit to produce NPK, establish JS Company H2O2, of this the company hold a major share Keeping the equitization of the production line of liquid and solid CO2 should be paid attention 3.4.4.2 Direction for organizational structural model in the future With the program and orientation of Vietnam Industrial Chemical Industry Group and with the approval of the government, HANICHEMCO will be a key unit to establish and set up General Fertilize and Chemical Contents Corporation under VINACHEM General view is applying a model of parent company Of this the merge of Ninh Binh Fertilize Plant is key factor This is a good solution to minimize pressure from competition with other companies It is in need of applying model on decentralization for the current management model of the company Presently, this is online management with other support divisions and operates in ineffective and overlapping manners To coordinate with TKV Corporation as material sources are supplied by TKV If the cooperation is good, it should link the responsibility between TKV and 82 HANICHEMCO; this will release the pressure and rights of service providers with HANICHEMCO 3.4.5 Some other solutions 3.4.5.1 Actively apply scientific and technologic advancement + Strongly promote technical initiative and economic solution in production and management Deeply invest in research activities and development of the company; frequently update scientific and technological advancement to apply in company’s production reality Bring into full play technical improvement, economic solution in production and management so as to reduce the waste in terms of materials, increase labour capacity and product quality as well as saving costs and reduce production’s cost Research and implement application of informatics program in the management and production, gradually apply System on Enterprise Resource Planning + Continue to research, implement program and scientific schemes such as: Program on Energy saving, topic on dust-splitting method for Urea during process of creating seed + Focus on research to gradually replace old equipment and underdeveloped by new ones with high efficiency as well as ensure the compatible characteristics in term of technology in the existed production line 3.4.5.2 Formulate and improve the system on technical indicator at appropriate level to act as basic for the implementation Setup and improve indicators to all progress in the process of production as a basic for the management of production cost at each stage Technical norm must base on reality and ensure at advanced levels At the same time of formulating technical norms, the appraisal and evaluation of norm implementation must be conducted Apply appropriate bonus and penalty mechanism for units and individuals, who have appropriate solution in organization, production management so as to reduce materials waste 3.4.5.3 Improve management solutions so as to save expenditures 83 + Apply appropriate form in the works of purchasing materials, fuel thru forms of bidding, competitive offers so as to select units having capacity to supply goodquality products with suitable prices + Set up maximum/ minimum storage capacity for materials so as to actively ensure the frequent production and the efficiency of fund utility: buying together with using, restricting the good in stock as well as saving mobilized capitals for the Company + Revoke maximum redundant material after production so as to classify materials for reusing or selling to get income The “allocation mechanism” for some units such as: Stationary, telephone calls and other office means should be used so that the units can actively conduct the material management 3.4.5.4 Training, develop and improve human resource quality + Set up strategies and organize the plan on training and developing officer’s quality such as: technical/ technological engineers, especially chemical/ automatic/ informatics engineers etc with good qualification Those engineers must have deep understood about production technology, management, technical norm standards, at the same time, they must have understanding in term of foreign language and international regulations It is in need of arranging and selecting potential manager to ensure the management in the future These potential managers will be trained in some courses funded by Company (or company will fund a part of training cost or company will invite good experts to teach staffs at the company’s office) + Training and improve skills for staffs, supporting young staffs, maintaining and developing staff with high experiences and good quality to be key officers serving current demand as well as preparing for the future The objective of solution is setting up a “study and learn” organization 3.4.5.5 Setting up enterprise’s culture The success of an enterprise decided by many factors, including organization’s culture, for enterprise, this called enterprise’s culture HANICHEMCO have existed 84 wonderful culture and as a result, it is in need to consider enterprise’s culture a modem management mean, the objective is to convert enterprise’s culture to community’s culture HANICHEMCO must have appropriate investment scale and realize its precious value formulated by its staffs 3.5 SUGGESTION 3.5.1 Macro-policies The state should continue to formulate, improve and promulgate legal documents such as: Chemical Laws Law on Fertilizer in order to create a specific legal frameworks for the production and trade of fertilizers, establishing legal ways in production areas and trade of these commodities, limit and eliminate the production of poor quality products with unclear origin so as to create a transparent markets 3.5.2 In term of trading environment In order to create a transparent working environment amongst branches, sectors and industries so as to ensure the fair development of all sectors and fields in the economy, it is recommended that: - The government needs to have clear policies and itinerary not to allow one company to produce and trade coals (Currently, this is Vietnam Coal and Mineral Resource) Mineral resource can be monopoly control by the government, but it can not be considered enterprise’s monopoly - Currently, coal is exported with a large amount Coal is non-reproduced material, and it is considered an important material of the country The export of raw material can bring a benefit for the coal industry at present, but in the long run, it can be disaster for the nation It is expected that the Government should have policies to limit the exportation of coal and encourage the production of coal products serving exportation and country’s needs 85 C CONCLUSION As a result, our consultant group has entered into the conclusion for the policies orientation to complete business strategy of Ha Bac fertilizer and chemical residues There are some basic contents in the paper as follows: Chapter 1: The key chapter for basic argument of the paper, including the definition of strategy and role of business strategy The chapter introduces some method and methodology to analyze, evaluate business strategy of enterprises Accordingly, the analysis of enterprise’s internal as well as outdoor environment can consider an output for the development and implementation of the strategy Theory about analysis means as SWOT, model on five competitors of Michael Porter are also presented for the analysis in the following chapters Chapter II: With the contents of analyzing the currently real situation of HANICHEMCO via the production and business results that the company has gained within the last years (2005 – 2009) Studying the outside environment includes the macro-economic condition and sector economy Of this clearly indicate the increasing demand for future uses of Urea fertilizers and other chemical products as well as sensitive issues in term of prices Some risks have been clearly defined such as fierce competition of the importation of Urea fertilizers from China as well as the competition from local enterprise like DAM PHU MY Company In addition, the rights of distributor are tremendous due to monopoly In the coming time, the company must deal with fierce competition since the two new players will join the markets soon in 2012 As a result, some other analysis has been conducted to clearly define the weakness and strength of the company 86 Our group uses analysis method in macro-economy and sector environment (5 competitive pressures), using IE matrix to analyze and evaluate HANCHEMCO’s real situation Chapter III: Introducing HANICHEMCO’s strategy over a period of 2010 – 2015 (towards the year 2020) that include vision, mission and strategy content Besides, the consultant group uses SWOT analyzing tool to analyze and evaluate HANICHEMCO strategy and to determine the shortcomings as well as unreasonableness in this strategy Simultaneously, the causes for these shortcomings and unreasonableness are also found Given such issues, the consultant group has proposed adjustments and supplements with a view to completing HANICHEMCO strategy for a period of 2010 – 2015 In order to support for the organization of carrying out this strategy successfully, the consultant group also give several key solutions for the purpose of getting the objectives This is restructuring solution for the organization, expand current plants to improve capacity and apply new technology in production and software to develop a green brand name towards customers as well as diversify products At the same time, proposals on macro policies and business environment to facilitate HANICHEMCO in particular and enterprises producing fertilizers in trade and production of fertilizer are being mentioned for the sustainable development The research group tried their best to conduct the paper; however, mistake and limitation cannot be avoided The paper is a basic for deeper research is “To develop the project on plant expansion of HANICHEMCO so as to meet the market’s demand towards objectives on environmental and social goals Thank you for the supports of teachers and company’s leader during process of conducting the paper REFERENCES 87 David, Fred R (1999) Strategic Management: Concepts (7th ed.) 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ThitruongID=7607&cateID=1 http://www.fertilizer.org/ifa/Home-Page/FERTILIZERS-THE-INDUSTRY/Marketoutlooks.html http://tintuc.xalo.vn/2067284570/work_starts_on_ca_mau_fertilizer_plant.html http://www.highbeam.com/doc/1G1-177312075.html http://www.damhabac.com.vn http://www.shell-livewire.org/business-library/business-planning/why-u-need-abusiness-plan/PEST-analysis/ http://www.mba-tutorials.com/strategy/65-porters-five-forces-model.html 89 ... OF 2010 – 2015 61 (TOWARDS THE YEAR 2020) 3.1 HANICHEMCO’s development strategy over a period of 2010 – 2015 (towards the year 2020) 61 3.1.1 HANICHEMCO vision and mission over a period of 61 2010. .. of 2010 – 2015 (towards the year 2020) on a basis of the analysis mentioned *) To propose adjustment and to supplement strategy of HANICHEMCO over a period of 2010 – 2015 (towards the year 2020) ... DEVELOPMENT STRATEGY OVER A PERIOD OF 2010 – 2015 (TOWARDS THE YEAR 2020) 3.1 HANICHEMCO’s the development strategy over a period of 2010 – 2015 (towards the year 2020) 3.2 Analyzing and evaluating