LUẬN VĂN Xây dựng chiến lược kinh doanh công ty cổ phần khoáng sản VIGACERA THESIS MBA BUILDING BUSINESS-LEVEL STRATEGY VIGLACERA MINERAL JOINT STOCK COMPANY PERIOD 2015 - 2020 HANOI, 2010 1/91 2/91 TABLE OF CONTENT LIST OF ABBREVIATIONS .5 LIST OF TABLES LIST OF FIGURES, GRAPHS INTRODUCTION Rationale of the Study RESEARCH OBJECTIVES SCOPE OF STUDY STUDY METHODOLOGY REPORT STRUCTURE Theoretical BASIS .10 1.1 BUSINESS STRATEGIES FOR BUSINESS 10 Figure 1.1: Business strategy 12 1.2 SELECTING AND PLANNING BUSINESS STRATEGY 14 Figure 1.2: Strategic planning process 17 Figure 1.3: Macro Environment .20 Figure 1.4: PEST model 21 Figure 1.5: Michael Porter's five forces of competitive position model 22 Figure 1.6: Value chain 24 Figure 1.7: Map SWOT analysis .26 Figure 1.8: SWOT Matrix .28 Figure 1.9: IE Matrix .31 ANALYSING CURRENT STATUS OF 36 VIGLACERA MINERAL JOINT STOCK COMPANY 36 2.1 ABOUT COMPANY 36 Figure 2.1: Organizational models of the Company .37 2.2 ANALYSIS MACRO ENVIRONMENTAL AFFECTING ACTIVITIES OF THE COMPANY 46 2.3 ANALYSIS INDUSTRY ENVIRONMENTAL AFFECTING ACTIVITIES OF THE COMPANY .50 2.4 OPPORTUNITIES AND THREATS FOR COMPANY .58 From the results in Table 2.5, we can see that the Company achieved a total score of 3.03; on 2.5 points - a medium level This means that Company can meet the 3/91 external factors in an effort to pursue strategies for the use of the opportunities outside as the stable rate of economic growth, improve the business environment, and take advantage of opportunities for competitors 60 However, the Company should pay attention to factors affecting the success of the Company that the Company also hasn’t a good response as interest credits, recruitment, and some general policy of the State on minerals 60 2.5 INTERNAL ENVIRONMENTAL ANALYSIS AFFECT ACTIVITIES OF THE COMPANY 60 Figure 2.4: Map technological lines of the Company 63 Figure 2.5: Positioning the companies in the market 66 2.6 STRENGTHS AND WEAKNESSES FOR COMPANY .69 Through Table 2.8, shows the total score of 3.13, higher than the average level of 2.5; which the Company has an environment with good internal strength such as application of new technologies for production, experience and production activities, brand goods, customers, service after sale, and management This is the core competence of the Company 71 However, still many weak points such as price, production capacity, distribution, training and developing human resources 72 2.7 ANALYSIS OF IE MATRIX 72 From EFE Matrix and IFE Matrix, position the Company in IE Matrix as follows: 72 Figure 2.6: IE Matrix of Company 72 Currently, the company is in cell I Company should develop and build strategy This means to carry out an extensive strategic and positive Strategy should focus on market penetration, market development and product development 72 2.8 SWOT ANALYSIS 72 SELECTION OF STRATEGIC BUSINESS .78 AND PROGRAM IMPLEMENTATION 78 3.1 CRITERIA OF SELECTION STRATEGY 78 3.2 RESULTS EVALUATION SELECTION STRATEGY .78 3.3 ACTION PROGRAM IMPLEMENTATION STRATEGY 84 3.4 SOLUTIONS IMPLEMENTATION STRATEGY .84 CONCLUSION 89 REFERENCES 90 4/91 LIST OF ABBREVIATIONS Abbreviation FX FM FK GDP ASEAN AFTA WTO SWOT EFE IFE IE QSPM Interpretation The symbol of feldspar bone products The symbol of feldspar enamel products The symbol of feldspar glass products Gross Domestic Product Association of Southeast Asian Nations ASEAN Free Trade Area World Trade Organization Strength - Weakness - Opportunity - Thread Analysis External Factor Evaluation Matrix Internal Factor Evaluation Matrix Internal - External Matrix Quantitative Strategic Planning Matrix 5/91 LIST OF TABLES 6/91 LIST OF FIGURES, GRAPHS Figure 1.1: Business strategy 12 Figure 1.2: Strategic planning process 17 Figure 1.3: Macro Environment .20 Figure 1.4: PEST model 21 Figure 1.5: Michael Porter's five forces of competitive position model 22 Figure 1.6: Value chain 24 Figure 1.7: Map SWOT analysis .26 Figure 1.8: SWOT Matrix .28 Figure 1.9: IE Matrix .31 Figure 2.1: Organizational models of the Company .37 Figure 2.4: Map technological lines of the Company 63 Figure 2.5: Positioning the companies in the market 66 Figure 2.6: IE Matrix of Company 72 7/91 INTRODUCTION RATIONALE OF THE STUDY In recent years, Vietnam's economy moves gradually from the economic planning focus, bureaucracy should be subsidized to a market economy This transition and international integration makes Vietnam's economy has gradually developed Numerous state enterprises were stock stood firm and gradually asserted his role in the economy Viglacera Mineral Joint Stock Company is one of the enterprises converted from state-owned companies into joint stock companies, is one of the company's mining and mineral processing as raw materials for industrial production of construction materials (ceramic tiles, glass, porcelain ) A business required succeeding in the right direction, there are flexible and changing in accordance with its business environment A proper business strategy and a team fully capable of organizing the implementation of strategies to help companies capture, take advantage of opportunities and limit the risks, develop the strength and overcome the weaknesses in order to achieve above average returns Viglacera Mineral Joint Stock Company is a small and medium companies have weak financial capability, just out of planning mechanism focused, narrow lines of business, the business environment is not stable, the construction business strategy for the Company is a very important job But for many different reasons that this problem is less interested A major reason the Company is a member of Viglacera Corporation The production plan previously established mainly based on the plan was delivered Corporation Business strategy of the Company to stop at the development and implementation of business plans every quarter and the year, according to the plan of the Corporation The long-term plan, providing strategic, often created sketchy, lacking scientific Another part is due to the lack of theoretical basis, lack of skills building strategies So the Company has no strategy of its business in accordance with what it means Derived from the actual needs with the desire to apply knowledge learned in applications where members of the working group Therefore, the group agreed selected topic "Building business-level 8/91 strategy Viglacera Mineral Joint Stock Company - Period 2015 - 2020" as the subject of the research group RESEARCH OBJECTIVES - Based on the theory we have learned to manipulate reality to enhance business efficiency of production and business, reduce costs, deliver higher profits for businesses, improving enterprise's value and thereby increase effective social - Apply the theoretical basis, the analysis tools to build a business strategy is suitable for business - Draw out the action plan to implement the strategy - Proposed solutions and recommendations for Company on the implementation of this strategy SCOPE OF STUDY Due to limited time and resources should we go further research and build business strategies for the business's current business, not consider expanding lines of business into other areas STUDY METHODOLOGY - Study of the theory of building strategies - use of reference - Collecting data at the enterprise and the information on the Internet - Analysis assessment and quantitative strategies to choose REPORT STRUCTURE Title of the research: "Building business-level strategy Viglacera Mineral Joint Stock Company - Period 2015 - 2020"; except the introduction, conclusion and references, is structured into sections as follows: Chapter 1: THEORETICAL BASIS Chapter 2: ANALYSING CURRENT STATUS OF VIGLACERA MINERAL JOINT STOCK COMPANY Chapter 3: SELECTED BUSINESS STRATEGY AND PROGRAM IMPLEMENTATION 9/91 Chapter I THEORETICAL BASIS 1.1 BUSINESS STRATEGIES FOR BUSINESS 1.1.1 The concept of business strategy As usual means and strategies (derived from the original Greek word is strategos) is a military term used to refer to the battle plan layout and distribution of forces with the aim of votes wins enemies Carl von Clausewitz - the tactic of the 19th century - has described the strategy is “war planning and planning campaigns warfare The campaign he will determine the participation of individual” More recently, historian Edward Mead Earle described the strategy is “the art of controlling and using resources of a country or a coalition of countries aimed to ensure and increase the efficiency of their vital interests” Today, business organizations also apply the concept of strategy is similar to the military Strategy is planned and controlled use of organizational resources such as people, property, financial aims to enhance and ensure the vital interests of there Kenneth Andrews was the first to offer ideas in the book highlights classic The Concept of Corporate Strategy According to him, strategy is what an organization must rely on their strengths and weaknesses in the context with the opportunities and threats Bruce Henderson, strategist at the same time is the founder of Boston Consulting Group has connections with the concept of strategic competitive advantage Competitive advantage is setting a company in a better position to create competition on the economic value for customers Henderson wrote that “Search strategy is a prudent action plan to develop and combine competitive advantage of organizations The difference between you and the competition is the basis for your advantage” Henderson believes the two cannot coexist if the competitor's business they are identical Need to make a difference may exist Michael Porter also received the approval of Henderson: “Competitive strategies related to the 10/91 * S-T strategies (Strategy 3): ST1 - Sort customers, diversifying products to serve different needs of customers Gradually standardizing and guiding customers to use appropriately ST2 - Improve product quality, exploiting the maximum strength of materials, equipment and technology to create products with the distinctiveness ST3 - Advantage of the Company image, enhance employment skills, improving life staff employees * W-T strategies (Strategy 4): WT1 - Investment, exploration and new mines licensed with high quality WT2 - Improve the quality of financial activities, to ensure capital for production and business activities and capital structure optimization Summary Chapter Through analysis of external environmental factors, industry environment factors, environmental factors inside the Company to draw strengths, weaknesses, opportunities, threats to proceed with the construction and analysis encoding IE Matrix and SWOT Matrix table to find out the business strategy may consider applying to the Company 77/91 Chapter III SELECTION OF STRATEGIC BUSINESS AND PROGRAM IMPLEMENTATION 3.1 CRITERIA OF SELECTION STRATEGY To select the appropriate strategy for the Company based on criteria the following: - Stable source of raw materials and in accordance with strategic - Technology equipment (to meet current levels to implement strategies) - Ability to mobilize financial resources to execute strategy - Professional qualifications of staff to meet the requirements of strategic - Management capacity of leaders to implement strategies - Ability to meet development needs of staff - Position and ability to control the Company's market - Expectations of the management agency - Reputation of the Company - Sustainable Development 3.2 RESULTS EVALUATION SELECTION STRATEGY With the factors analyzed in Chapter 2, building Quantitative Strategic Planning Matrix (QSPM) for comparison and evaluation of plans for business strategy as follows: Points change Rating point Points change Strategy Rating point Strategy Points change Strategy Rating point Points change Strategy Rating point Criteria igh We Table 3.1: QSPM Matrix 0.12 0.12 0.12 Strengths Equipment and material 0.04 0.16 inputs are preeminent 78/91 strength Process technology production uninterrupted, modern, can produce more type of products - stable quality, high reliability 0.04 0.16 0.16 0.12 0.08 0.04 0.16 0.12 0.04 0.08 0.03 0.09 0.09 0.09 0.09 0.03 0.09 0.09 0.09 0.09 0.02 0.06 0.06 0.04 0.02 0.03 0.12 0.09 0.06 0.03 0.02 0.04 0.04 0.04 0.04 Ownership of production technology for glass products and glass plates Capture the customer needs better Customer relationship closely Image of the Company to customers is good Select a market segment and distribution channel appropriate Capacity to research and development Management of human resources relative items The staff of qualified and capacity Interested in training and development Officials and employees believe in the sustainable development of the Company Construction work plan is concerned - well assigned and authorized 79/91 Having good relations with the State management agency Update changes in policy to regulate activities 0.02 0.06 0.06 0.06 0.04 0.01 0.02 0.03 0.03 0.02 Weaknesses Make additional material from outside to produce porcelain enamel products Production capacity is limited (low output) High price Supply is not timely to the needs of customers Sales force professional level is not high Systems analysis work and evaluation system 0.04 0.04 0.08 0.08 0.12 0.02 0.08 0.06 0.02 0.01 0.04 0.16 0.12 0.12 0.08 0.03 0.09 0.06 0.06 0.03 0.03 0.09 0.06 0.06 0.06 0.01 0.02 0.02 0.02 0.02 0.03 0.03 0.06 0.09 0.12 incomplete Financial Accounting and Accounting Management weak, financial potential is not strong Opportunities Vietnam's economic growth is relatively high and stable, the recovery of the world economy 0.04 0.16 0.12 0.08 0.04 0.03 0.12 0.09 0.03 0.03 after the crisis created high demand Manufacturer’s localization raw materials 80/91 Field work is a priority sector in the development policy of 0.03 0.12 0.06 0.06 0.06 0.03 0.09 0.09 0.09 0.06 0.03 0.09 0.06 0.06 0.06 0.02 0.04 0.04 0.04 0.04 0.03 0.12 0.09 0.06 0.06 0.03 0.12 0.09 0.09 0.06 0.03 0.06 0.06 0.06 0.06 0.15 0.15 0.10 the Government The opponent’s inexperience difficult to penetrate the market Field production for essential needs of the economy should have the opportunity to develop long-term The equalization period corporations to increase the autonomy of the Company The competitors are not eligible to penetrate into the market segment of the Company Integration into international economy creates opportunities for export goods Increasing population, speed urbanization large Level of living of people increases, the demand for building big power increase demand of building materials in the coming years Threats Quality requirements and 0.05 0.15 81/91 increasing stability Inflation and economic crisis at risk for re- 0.03 0.03 0.06 0.09 0.12 0.04 0.04 0.08 0.12 0.16 0.04 0.08 0.08 0.08 0.08 0.03 0.06 0.06 0.06 0.06 resources management to 0.04 0.08 0.12 0.12 0.16 0.02 0.04 0.04 0.04 explosion Interest credit increased, making the increased cost Policy management of environmental resources to tighten up more and more closely to reduce the cost and benefits, make it difficult for the Company’s operation Legal system in the process of adjusting to the additional influence the management of the Company Recruit personnel problems, lack of human reach a new style of modern management Speed world economic recovery slowly Direct impact to the operation 0.02 of the Company Total 2.91 (Notes: i Total weighing of evaluated items is 82/91 2.52 2.49 2.38 ii Attractive point is given as follow (on the basis of evaluating conformity to current alternative): Very attractive: 4; Attractive: 3; Unattractive: 2; Very unattractive: 1) Based on evaluation and scoring results above, it can be seen that the Alternative is scored highest point In other words, this is the most attractive business strategy plan for the Company Therefore it is selected It can be considered more as a maximum total score of all items rated as 4, while the total score of Alternative is 2.91 That is still many opportunities for the Company to further enhance the performance of their production and business Strategy is selected: Maximize the advantages of raw materials, equipment and technology, maintaining traditional markets Gradually expand production Improve supply; develop the capacity of staff, research and development of new products for export Innovation methods leadership, strengthen the training development, capacity building and autonomy of the working group Building a good image of Company to Company became a company supplying materials professional, highest quality in Vietnam Strategy for the Company is differentiation strategy This strategy is expressed as follows: - Company’s products producing high quality than the competitors; high stability, smaller particle sizes of products, avoid losses, and reduce energy costs for grinding materials to customers in the embryo than use Company's products serve the needs of glass manufacturing, construction glass, but other businesses can be difficult to achieve - Advise customers to use raw materials and calculate how to coordinate a suitable material, ensuring the most effective in reducing the use and production preparation costs to customers There was this difference is due to company resources and capabilities to run more powerful competitors This has been analyzed in the previous section 83/91 3.3 ACTION PROGRAM IMPLEMENTATION STRATEGY 3.3.1 Objectives to be achieved In 2010: a stable production and improving the line raw mill, capacity existing factory to 150,000 tons per year Research plans for new investment line 100,000 tons/year with modern equipment and technology In 2012: approving new investment projects, implementation of investment procedures and compensation for land release; exploration, for permission to expand the mining of raw materials Prepare capital for development investment Will training and development about capacity and autonomy of the working group In 2013 - 2014: the development of investment, building new factories Will focus research new products and export markets In 2015: update of the factory production capacity to 250,000 tons per year with product quality higher than competitors 3.3.2 Steps to implement the strategy - Communicate content strategy - Prepare the necessary resources - Organizations implement strategic goals in each period - Assessment results for each stage, from experience, adjust strategies 3.4 SOLUTIONS IMPLEMENTATION STRATEGY 3.4.1 Enhance the product introduction work Promote the image of the Company through building a strong brand - Using 0.35% revenue contribution to the parent company to build Viglacera brand general - Advertising products through assessment of users, assessment must be built carefully to meet all interested customers to use products - Strengthening ÷ human resources for parts market, coupled with the training Personnel working in the market must have qualified for University business administration and professional, technical college or higher level 84/91 - Develop plans to reduce delivery costs of the Company's inventory and customer - Closely associated parts market with parts manufacturing, financial and strategic planning department to draw out the production plan for each time by standardizing and improving internal information systems - Develop and expand markets for new customers are going into production, technical support for customers in the process of using - Will developing policies to encourage consumption volume and fast payment ÷ 5% discount price, depending on purchase volume, payment terms - Will expanding fields of activity, providing more customers other materials (The agent provides for other manufacturers to ensure mutually beneficial) - Conduct market survey and organizations product sales for customers (As sales agent for manufacturers) - Through the help of consumer products, the export of raw materials steps by step to regional markets and world markets 3.4.2 Investment in strengthening the old production lines and development plans for investment in appropriate - Focus additional investment to renovate existing operation and maintenance reasonable Capacity of the existing plant to 1.5 times by investing in additional raw mill system - Focus on building and selecting investment projects suitable modern ensure economic efficiency in the future - The selection of investment projects must be based on financial analysis carefully and accurately - Establishment of project management; Hiring of consultants with experience to build the projects 85/91 3.4.3 Optimize process manufacturing management, help reduce costs and improve product quality - Build a complete mechanism for management from the Company to groups working towards decentralization thoroughly - Will speeding up the application of quality management system ISO 90012000 Combine between the power of collective leadership and implementation of staff to complete tasks - Find all measures to mobilize maximum resources and capacity available, organize production management, investment management logically Promptly remove obstacles - Implementation and application of information technology in management, ensuring internal information timely and accurately, strictly followed by the information processing hierarchy - Strengthening quality management Applicable inspection forms multiple times to reduce errors - Strengthening research and development new products for export 3.4.4 Construction and development of human resources with high level management, force of skilled technical workers - Enhancing funding for training development Each year approximately 1% revenue gain for the training and development - Organize the training in place Organizing an annual competition for skilled workers Organizing professional exam every year to arrange for appropriate management officials - Consolidating apparatus professional, perform management functions obliterated the world title between departments, divisions - Building standards staff specific to each title, complete payroll policies, review the system of responsibility and complexity of work assigned, the form of products or entrepreneur, the level of a the task for reasonable, respected statutes, 86/91 regulations applicable material reward Building regulations supplement the salaries for staff performance management - Good settlement regimes, policies of social insurance, health insurance, insurance body, unemployment insurance for workers - Strengthen and improve the system regulation, regulation of working personnel, ensure the high autonomy of the division in the recruitment, job analysis, evaluation and policy staff paid, internal agency rules and regulations of financial accounting 3.4.5 Regulate and mobilize enough capital and calculates the optimal capital structure for production and business activities - Maintain and strengthen relationships with traditional banks - Calculation of capital structure to ensure appropriate cost of capital is most appropriate, release capital to increase three times now with the roadmap to conduct investment - Enhance capital accumulation from production and business efficiency Ensure the provisions of the banking system of mortgage assets - To intensify the recovery of debts, reduce accounts receivable days to 60 days to increase working capital spins Enhance liquidity and efficiency of production and business 3.4.6 Improving the quality of financial management, overcoming the weakness of the financial accounting activities - Recruiting additional finance director for Company - Consolidating and strengthening personnel training for financial accounting apparatus - Construction machinery operation and management accounting for all activities of the Company, in association with the autonomy to working groups - Develop plans for funding activities of the Company, detailing each month; control and timely adjustments, ensuring funds for activities 87/91 - Calculations, proposed plans for mobilizing capital and good management to carry out investment and business development Summary Chapter From the analysis and evaluation in Chapter 2, manipulate summarize the theory systemized in Chapter 1, combined consideration of issues related to specific business, company positioning strategies as well as strategic goals to reach, in Chapter have conducted reviews, compare options and recommendations as well as business development strategies consistent with Company objectives in the longterm and short-term, to propose programs and measures implemented to achieve strategic business objectives defined 88/91 CONCLUSION Because of time limitations as well as other resources, this report is inevitable that certain limitations This report is only in the construction business strategy for Viglacera Mineral Joint Stock Company in production and business feldspar powder, not calculated to expand the field activities of the Company The report also does not consider a full on competition on the production aspects of their business, the priority development of their manufacturing sector The prediction market stop at considering the needs of the plant material on the basis of current investment, not consider fully the impact of the market to the operation of the companies Although there are so many deficiencies, but the business strategy of Viglacera Mineral Joint Stock Company is relatively consistent Get through looking at the opportunities, threats, strengths and weaknesses of the business can help Company deal with flexible, timely and right direction, consistent with the fluctuations of the business environment Addition and evaluate these issues will help the Company adjust strategies logically Report: “Building business-level strategy Viglacera Mineral Joint Stock Company - Period 2015 - 2020”, our expectation that the Company will manipulate it to practice in enterprises From this strategy, the Company will determine the proper system objectives, policies and measures that Company need to make in the future Because the report still limited as stated above, we hope to receive contributions from all teachers and colleagues to business strategy is more complete Sincerely thanks! 89/91 REFERENCES Vietnamese: Pro /PhD Le The Gioi, Dr Nguyen Thanh Liem, MBA Nguyen Huu Hai (2009), Strategic Management, Statistics Publisher Associate Pro Dr Ngo Kim Thanh, (2009), Lecture presentation - Business Strategy, International Master of Business Administration Program - Griggs University Huynh Minh Em (translated) (2008), MBA within reach - Marketing subject, Ho Chi Minh City’s General Publisher Ph.D/DBA Nguyen Huu Than (2008), Human resource administration, Labor & Social Publisher Viglacera Mineral Joint Stock Company, Report organizational structure 2007 Viglacera Mineral Joint Stock Company, Business Report 2007, 2008, 2009 Viglacera Mineral Joint Stock Company, Financial statements 2007, 2008, 2009 Viglacera Mineral Joint Stock Company, Learnt from the market Report 2008, 2009 English: Robert A Pitts and David Lei (2000), Strategic Management - 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A Quantitative Approach.” Long Range Planning 19, no (October 1986): 102 Also, David, Fred, Strategic Management Concepts and Cases, (Prentice-Hall Publishing Company): Upper Saddle River, NJ, 2009 91/91 ... improved capacity and reputation Potential capabilities of the enterprise are the ability to use resources that are integrated with an aim to achieve a desired goal state The ability to produce... manufacturing capacity While this capacity may be considered a strength that competitors not share, it also may be a considered a weakness if the large investment in manufacturing capacity prevents the... and the ability to make a difference, these options also affect each other Table 1.1: Main features of overall business strategy Create differences of the product Market segment Ability to create