GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE TITLE “BUILDING BUSINESS STRATEGY OF AN PHAT PLASTIC AND GREEN ENVIRONMENT JOINT STOCK COMPANY - PERIOD 20122016” Group Members: oe £ Khuc Dinh Dung Nguyen The Vinh Bui Quang Hai Nguyen Hoang Nguyen Xuan Truong Ha Noi, 2012 19" December 2011 To whom it may concern Subject: Comments of An Phat Plastic and Green Environment Joint Stock Company on the project of Group 2, GAMBA01.X0710 Class - Griggs University NN The Research Team have closely followed up the current situation of the organization structure and the business activities of An Phat Plastic and Green Environment JSC to implement the project; The content of "Building business strategy of An Phat Plastic and Green Environment Joint Stock Company - period 2012-2016" project mentions the goals that An Phat JSC is trying to reach, and has high feasibility; The content of the project is excellent + For and on behalf of An Phat Plastic and Green Environment JSC Kiện Nguyen Le Trung General Director COMMITMENT We, the research team, would like to commit that this Capstone project is our own research which is accomplished thanks to various sources of documents and real situation The Capstone project is not copied from any other available documents We undertake any legal responsibilities for the contents contained within this report Hanoi, December 2011 ACKNOWLEDGEMENT The Research Team would like to express our deep gratitude to: The lecturers of the MBA knowledge; training program Managers of Griggs University and staff of the Centre - who provide for Educational and Technology share and Career Development - Hanoi National University (ETC) - who are enthusiastic and indispensable helpers in the process of learning; The Research Team would also like to thank the Managers and staff of An Phat Plastic and Green Environment Joint Stock Company - who are main supporters in the process opportunity, of studying about provide support the the situation of time of the so that Company members and create the of the group can complete the project Finally, we would like to send the most sincere thanks to families, colleagues and classmates - who are the solid basis of spirit for members of the group during the participation of Griggs University MBA program and the process of completing the Capstone Project "Building business strategy of An Phat Plastic and Green Environment Joint Stock Company - period 2012-2016" TABLE OF CONTENTS a PREAMBLE The reason for topic selection mm LF Purpose and scope of the study Implementation method Capstone Project Report’s structure | 1.1 1.1.1 Ẫ x OVERVIEW OF BUILDING BUSINESS STRATEGY Concept of strategy Role and significance of strategy |Chapter! | THEORY BASIS 12 Lol 2.2 | ik Ì „2s22 12.3 1.3 13,1 13.1.1 13.1.2 1.3.1.3 Lou 1.3.2.1 Lo 1.3.3 PROCESS OF BUILDING STRATEGY ˆ _ The enterprise’s vision and mission determination External environment analysis Macro-environment analysis Environmental analysis of industry Internal environment analysis STRATEGY SELECTION AND ANALYSIS TECHNIQUE Analysis and Information collection phase EFE matrix IFE matrix Competitive profile matrix Combination phase SWOT matrix SPACE matrix Strategy Decision and selection phase Chapter II | ANALYSIS OF DEVELOPMENT STRATEGY FORMATION BASIC OF AN PHAT PLASTIC AND GREEN ENVIRONMENT JOINT STOCK COMPANY 2.1 OVERVIEW OF AN PHAT PLASTIC AND GREEN ENVIRONMENT JOINT STOCK COMPANY rạn The Company’s formation and development history Dee Major information of the Company 243 The Company’s organizational structure 2.1.4 The company’s human resource structure pm ee, Business Operating result form 2008 to 2010 21,0 Mission and vision zu EXTERNAL ENVIRONMENT ANALYSIS +.2zÌ Macro Environmental analysis để „is Ð „ Political environment: (P) Đố la: vớ Economic environment: (E) £ g8 si y2 Social environment: (S) Z số mi si Technological environment: (T) Page l l 2 3 3 7 10 11 lì 12 13 15 16 17 19 21 24 24 24 20 28 30 31 33 a3 i 37 39 40 42 | Judo | 22x z] | Dee a2 | 2a | 2.2.2.4 Dida es 2.2.3.1 | eee Industry environment analysis_ The The The The potential competitors current competitors customer’s power supplier’s power 44 _ 44 a sổ 46 Substitution products 47 Opportunities and Threats evaluation of An Phat JSC 49 Opportunities and their ranking Threats and their ranking 49 49 Competitive Profile Matrix of An Phat 51 tên External Factor Evaluation (EFE) matrix of An Phat JSC 2.2.3.4 50 INTERNAL ENVIRONMENT ANALYSIS 2.3.1 | Internal Environment analysis of An Phat JSC 52 a2 res, 54 Dash 2.5.1.2 |Zotel Equipment resource, infrastructure capacity The company’s position in industry Technological level 52 53 54 Production Management level Detaled 2.5.1,0 Ddelat 2idelsd dud 25 Marketing activities Trademarks, patent and copyright Human Resource Management activities Finance and Accounting activities Summary of internal environment analysis for An Phat Internal Factor Evaluation (IFE) matrix of An Phat 2.4.1 2.4.2 SWOT synthesis matrix The optimum strategy selection for An Phat 2.4 FORMATION AND SELECTION OPTIMUM STRATEGY FOR AN PHAT OF THE 60 61 62 62 63 64 65 65 68 CHAPTER | SELECTED STRATEGIES FOR AN PHAT AND II IMPLEMENTATION SOLUTIONS 3.1 DIFFERENTIATION STRATEGY OF PRODUCTS 71 3.2 COST LEADERSHIP STRATEGY T5 Strategic solutions 75 Deiat s2 3.13 The content of strategy Strategic solutions Strategic Road map 32,1 The content of strategy Saki Road map 2Ã CONCLUSION REFERENCES APPENDIXES 71 71 # a T5 76 80 81 82 LIST OF ABBREVIATIONS In this document, the abbreviations are interpreted as follows: [ An Phat Plastic and Green Environment Joint ie lun Stock Company EFE External Factors Evaluation II Internal Factors Evaluation QSPM Quantitative Strategic Planning Matrix HDPE High-Density Polyethyiene LDPE Low-Density Polyethylene rr Polypropylene PE Polyethylene PVC Polyvinyl chloride WTO World Trade Organization FDI Foreign Direct Investment GDP Gross Domestic Product LIST OF FIGURES Page Figure 1.1: Michael Porter’s Forces Model of Competition 10 Figure 1.2 Diagram of major activities and support activities 10 Figure 2.1] An Phat’s organizational structure chart 28 Figure 2.2 Production of plastic of Vietnam during the period 36 2000-2010 Figure 2.3 Consumption of plastic products per capital in Vietnam 40 Figure 2.4 Main Machineries and Workshop of An Phat 3ã Figure 2.5 SWOT synthesis matrix to An Phat 67 Figure 3.1 Implementation plan of Differentiation strategy 73 Figure 3.2 Implementation plan of Cost leadership strategy 77 LIST OF TABLES Page Table 1.1: EFE Matrix Table 1.2: IFE Matrix 14 Table 1.3: IE Matrix 14 Table 1.4: Competitive Profile Matrix l6 Table 1.5: SWOT Matrix 17 Table 1.6: SPACE Matrix 19 Table 1.7: QSPM a Table 2.1: Labour structure of the Company 3] Table 2.2: Business result from 2008 to 2010 of An Phat 31 Table 2.3: Summary of the general environment analysis of An 43 Matrix Phat Table 2.4: Analysis of five competitive forces to An Phat 48 Table 2.5; EFE Matrix of An Phat 50 Table 2.6: Competitive profile matrix of An Phat 51 Table 2.7: List of some of the major material suppliers of An Phat a Table 2.8: Cost structure of An Phat from 2008 to 2010 af Table 2.9: Some financial ratios of An Phat from 2008 to 2010 63 Table 2.10: © Summary of strengths and weaknesses of An Phat 64 Table 2.11: Internal Factor Evaluation (IF E) matrix of An Phat 65 Table 2.12: QSPM 69 matrix of An Phat LIST OF APPENDIXES Page Appendix 1: Quality Management Certificate of An Phat 82 PREAMBLE The reason for topic selection: Vietnam's economy world, the is gradually integrating into the economy in the region and the business environment of the enterprise has been extended, but the competition is becoming harder This both has created business opportunities and contains potential risks threatening the development of enterprises In order to take advantage of the oppotunities and get rid of the threats, based on the strengths, each company must have a clear business strategy in each period of time so as to keep the company ever-growing An Phat Plastic and Green Environment Joint-Stock Company is the leading company in Vietnam in the plastic bag manufacturing industry Plastic industry of Vietnam is now having many development, evergrowing demand oppotunities (incentives for plastic industry for plastic products, ) as well as facing with many threats (tax for environment protection, high interest rate, ) How An Phat have to build the business strategy to have competitive advantages over competitors and thus to develop its businesses? This is the reason why our group select the title “Building the business strategy of An Phat Plastic and Green Environment Joint Stock Company - period 2012-2016” to study in our capstone project Purpose and scope of the study: The Purpose: and the way Researching to select the strategy optimal building strategy basis, in order to identify their best suitable business strategy From solutions toimprove Company incurrent the business strategy conditions At the same strategy building to help An Phat there, making Company proposal and for An Phat development process time, the selected giving process strategic roadmap from 2012 to 2016 Scope of the study: Going into detail of business strategy building process of An Phat Company for the period 2012 -2016 ... Decision and selection phase Chapter II | ANALYSIS OF DEVELOPMENT STRATEGY FORMATION BASIC OF AN PHAT PLASTIC AND GREEN ENVIRONMENT JOINT STOCK COMPANY 2.1 OVERVIEW OF AN PHAT PLASTIC AND GREEN ENVIRONMENT. .. CHAPTER BASIC OF II: AN ANALYSIS PHAT STOCK COMPANY OF PLASTIC BUSINESS AND STRATEGY GREEN FORMATION ENVIRONMENT - PERIOD 2012 - 2016 - External Environment Analysis - Internal Environment Analysis... situation of the organization structure and the business activities of An Phat Plastic and Green Environment JSC to implement the project; The content of "Building business strategy of An Phat Plastic