Andrews Q University ES Global Advanced Grice MINDS CAPSTONE PROJECT IN THE REPORT BUILDING BUSINESS STRATEGY FOR HOANG LIEN LIMITED COMPANY IN PERIOD OF 2013 - 2020 Class Group : Member: : GaMBA.M0311 04 Cao Ba Quy Hoang Hong Hanh Nguyen Duy Hoa Luong Thi Van Giang HANOI - 2013 MAKING ACKNOWLEDGEMENTS Lao Cai, March 17, 2013 Hoang Lien Limited Company, Address: N° 136, Hoang Lien street, Lao Cai city, Lao Caiprovice Business phone: (+84)20.3820560 Confirmed: The BUSINESS STRATEGY information and data FOR HOANG in the captone report LIEN LIMITED project “BUILDING COMPANY IN PERIOD OF 2013-2020” The data provided by the Hoang Lien to Groups is consistent with the actual Companies appreciate the captone report project of Group — Ga.M0311 in the Global Advanced MBA and considering this is valuable content advisory business strategy for this company since 2020 Derector iy ol Ne AN ops “ “8 ““côNG TY ` ae cá 45.5.2 =—=— N CAI aN ¿ ae UPL z Nguyen Phi Son MOST WRISGY UNIVERSITY - Croup Capstone Project TABLE OF CONTENTS | Page | CHAPTER THEORETICAL BASIS FOR MAKING BUSINESS STRATEGIES 1.1 BUSINESS STRATEGY 1.1.1 Concepts of business strategy 1.1.3 Roles of business strategy 1.2 STRATEGY ANALYSIS AND FORMULATION 1.2.1 The input stage 1.2.2 The matching stage 1.2.3 The decision stage 12 CHAPTER ANALYSIS ON BUSINESS SITUATION OF HOANG LIEN LIMITED COMPANY 16 2.1 INTRODUCTION OF HOANG LIEN LIMITED COMPANY 2.1.1 History and development 2.4.2 Vision and mission —_ 2.1.3 Organizational structure _ 2.1.4 Products and services > 2.15 Business activities 2.2 STRATEGY ANALYSIS ZF Global Advanced Master of Business Administration 20 ` - v ' ụ " Project Capstone MO311-Group GRIGGS) UNIVERSIT 2.2.1 Analysis on external & internal environment 20 2.2.2 Matrixes formulation 38 CHAPTER STRATEGY SELECTION AND SOLUTION FOR HOANG LIEN LIMITED COMPANY IN PERIOD 2013-2020 44 3.1 QSPM MATRIX 44 3.2 STRATEGY SOLUTIONS 47 3.3 SOME SUGGESTIONS 48 3.3.1 Overall 48 3.3.2 Specific suggestions 49 CONCLUSION 53 REFERENCES 54 MOS NIV 11-CGroup Capstone Project SITY, LIST OF ABBREVIATIONS Agribank: Vietnam Bank for Agriculture and Rural Development Apatite: Apatite Vietnam Limited Company Cuu Lam: Cuu Lam Limited Company Dang Tuyet: Dang Tuyet Limited Company HLC: Hoang Lien Limited Company HST: HST Limited Company Mai Long: Mai Long Limited Company PCI: Provincial Competitiveness Index Phu Minh: Pha Minh Vocational Centre 10 Tien Loc: Tien Loc Investment Joint Stock Company 11 Tien Thanh: Tien Thanh Trading Limited Company 12 Trung Lan: Trung Lan Limited Company 13 Viet Y: Viet Y Limited Company 14 VND: Vietnam dong 15 YAVN: Yamaha Motor Vietnam Co., LTD 16 38: Sale - Service - Spare Parts MOST 1-Group Capstone Project VARIGGS UNIV ERSITY LIST OF TABLES Page | _ Table 1-1: Corporate strategy 15 Table 2-1: Basic technical parameters of the motor in Lao Cai 24 Table 2-2: Motorcycle businesses in Laocai 25 Table 2-3: Identify opportunities and challenges from factors external to HLC 30 Table 2-4: CPM matrix of HLC 30 Table 2-5: EFE matrix of HLC 31 Table 2-6: Identify strengths and weaknesses of HLC 37 Table 2-7: IFE matrix of HLC 38 Table 2-8: Combination of SO, WO, ST, WT of HLC 39 Table 2-9: SWOT 40 matrix of HLC Table 2-10: Variables FS, CA, ES, IS of HLC Table 3-1: Suggested strategies of HLC Table 3-2: QSPM of HLC Table 3-3: Selected strategies of HLC MO311-CGroup Capstone Project UNIVERSITY LIST OF FIGURES ‘Page [Figure 1-1: The Strategy- Formulation Analytical framework Biptre 1-2: Business environment ~ “Figure 1-3: SWOT Matrix Figure1-4: SPACE matrix 10 Figure 1-5: Grand Strategic matrix example 11 Figure 1-6: QSPM Figure 2-1: Ôrgrmizsifon SiruefiiB Figure 2-2: SPACE matrix of HLC Figure 2-3: Grand Strategic matrix of HLC ce 17 42 | MO311-CGroup Capstone Project GRIGGS UNIVERSITY LIST OF APPENDIX | Appendix 2.1: BALANCE SHEET in 2010 "Appendix 2.2: BALANCE SHEET in 2011 Appendix 2.3: BALANCE SHEET in 2012 STATEMENT 2010 61 Appendix 2.5: INCOME STATEMENT 2011 62 Appendix 2.6: INCOME STATEMENT 2012 63 Appendix 2.7: CASH FLOW STATEMENT 2010 64 Appendix 2.8: CASH FLOW STATEMENT 2011 65 Appendix 2.9: CASH FLOW STATEMENT 2012 66 _ Appendix 2.4: INCOME (GRIGGS MOTI - Group Capstone project UNIVERSITY INTRODUCTION i The significance of study The world economy in general, Vietnam's economy in particular in the last years were challenging, the disruption in the public sector, financial market crisis, the word "restructuring" is usually mentioned in economic news of Vietnam Many small businesses fall into difficulties due to lack of orientation to adapt to new circumstances Thus, group decided to build business strategy for Hoang Lien Limited Company (hereinafter referred to as HLC) HLC, a small business in Lao Cai (related to a member of Group 4) met certain confusion about strategic direction to 2020, Group expect to find advice on the direction, the best opportunities for development of HLC ii Objectives of study By summarizing theoretical basis of business strategy and effective methods, Group can apply our useful knowledge to develop the business operations of all kind of enterprises regarding its type, scale and location Group desires that our capstone project will be submitted to the leaders of HLC and persuade them to utilize this study as a useful consulting material iii Method of study With data provided by Hoang Lien Limited Company (HLC) and collect more information, Group will analyse the external environment and internal environment of the HLC by using analysis tools as EFE, IFE, PEST, forces of Michael Porter, SWOT, SPACE, Grand strategic matrix and QSPM From these matrixes and our experience, group will suggest to select business strategy and some solutions in term of human resource, marketing, finance, production from now to 2020 iv Structure of study: there are chapters Chapter 1: Review of Literature on business strategy Chapter 2: Analysis on Business situation of Hoang Lien Limited Company Chapter 3: Strategy selection and Solutions to implement selected strategy for Hoang Lien Limited Company during the period of 2013-2020 Global Advanced Master of Business Administration | RIGGS) MO311-Group Capstone Project UNIVERSITY CHAPTER REVIEW OF LITERATURE 1: ON BUSINESS STRATEGY 1.1 BUSINESS STRATEGY 1.1.1 Concepts of business strategy Strategy is a term derived from the Greek word "Strategos", used in the military, that is the art of leader to win Since the mid-twentieth century, the strategy was applied in business and the term "business management" was used Over the economists has many opinions, approaches on different business the time strategies There are the followings: Chandler, A (Strategy and Structure Cambrige, Massachusettes MIT Press 1962): "Strategy is the determination of objectives, basic long-term goals and the application of a sequence of actions as well as the allocation of resources needed to accomplish this goal” Quinn, J., B (Strategies for Change: Logical Incrementalism Homewood, Illinois, Irwin 1980): “Strategy is the pattern or plan to integrate the major objectives, policies and sequences of actions into a tight cohesion” Brace Henderson connected concepts with strategic competitive advantage "business strategy is careful search for a plan of action to develop and combine competitive advantage are the basis for The differences between the company and its competitors the company’s advantage.” Michael Porter also agreed with Henderson “competitive strategy related to the differences It is the careful selection of a series of special activities to create a unique set of values” Through “Business the reviews, Strategy current popular understandings is the art of coordination of business strategy is: and activities control in order to achieve long-term goals of the business” By studying the theory of business strategy, Group considers the business strategy f(^S Global Advanced Master of Business Administration lo is the general plan of what to in a certain period of time based on the awareness ... Analysis on Business situation of Hoang Lien Limited Company Chapter 3: Strategy selection and Solutions to implement selected strategy for Hoang Lien Limited Company during the period of 2013-2020. .. Project TABLE OF CONTENTS | Page | CHAPTER THEORETICAL BASIS FOR MAKING BUSINESS STRATEGIES 1.1 BUSINESS STRATEGY 1.1.1 Concepts of business strategy 1.1.3 Roles of business strategy 1.2 STRATEGY. .. 2013 Hoang Lien Limited Company, Address: N° 136, Hoang Lien street, Lao Cai city, Lao Caiprovice Business phone: (+84)20.3820560 Confirmed: The BUSINESS STRATEGY information and data FOR HOANG in