GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATI ON PROGRAM CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY FOR DOMESTIC MARKET OF MINH ANH GARMENT LIMITED COMPANY IN PERIOD OF 2013-2017 Nguyen Thanh Phong Phan Thu Hien Nguyen Thi Hien Dam Son Ha Class: GaMBA.X0111 HANOI 2013 MINH ANH GARMENT Address: LIMITED COMPANY Pho Noi B Industrial Zone - Nghia Hiep Commune - Yen My District - Hung Yen Province Tel: 0321.3972.569 Fax: 0321.3972.510 20" February 2013 CONFIRMATION To: LETTER Master of Business Administration program Center for ‘Education Technology and Career Development - Hanoi National University Subject: Comments of Minh Anh Garment Limited Company Group GaMBA.X0111, Griggs University - Minh Anh Garment Limited Company GaMBA strategy X0111 when for domestic they conducted market of Minh has fully supported for Group the capstone "Planning Anh Limited during the period of 2013-2017" - on Capstone of Garment business Company Members of group has worked hard with enthusiastic attitude Their subject was based on current statistics of company and recei ved high appreciation from us for its practical applicability fp DIRECTOR ACKNOWLEDGEMENT After a period of research and synthesis, with the hard work of the member s of our group, we have completed the subject We guarantee the result presented in this topic is true and has not been published in any other work The data publish ed in this article is taken from the research, and statements from the article Center for Education University, dedicated organizations and individuals consulted and used as prescribed We Technology would like and Career to thank Griggs Development University, - Hanoi the National of professors, and staffs for your help during the Master of Administrati on course We Company also would like to gratitude to staffs of Minh Anh Garment who Limited assisted us, providing data and useful information enabling us to complete this subject Hanoi, [GS Global Advanced Program February 20" 2013 Master of Business Administration TABLE OF CONTENT ACKNOWLEDGEMENT cccssssssssssssscsscsssssssssssssssusssscsasssusssssssssussasesuscsscossesceesess TABLE OF CONTENT ccsssssssssssssessssesssssssssssssssecsuscssessssssssssssusesasecesscsescossccessees LIST OF FIGURES .ccccsssssssssscssssssssssssssssssssssssscsscssasessessssssssssessessusscessscesccesssesec LIST OF TABLEG cccssssssssscssssccssssssssscsssssssssssssssssessssssssssssssssssassussessseccsessccessesses INTRODUCTION .ssssssssssssscssscscssscssssesssssssasssssesssssssssscssssssssssssassssssssssccsssscsesecsse s Sigmificance Of Study ssescssssssscssssssssssssscsescsssssuscsssssssssssssonsscsssscssccossccescsss , Objectives of SỈUdy ÓC 1911151159615 21 0010001110510 Scope Of StUAY .ssecssssssssssssssesccsssesssecssseessscsssscesssecssusesssesssusesssesesnesesessccescccesces 4, Method Of Study .sssssssssescssscssssssecsssesssssssesssssesussssessssssssussssesensscessssssesosecesse s S Limitation of study ssssssssssssssssssssssessssssassessssscsssssssssscsssssssssssssssscssscsosc cssses Structure Of Study .sessssssssssscsssssssscsssssssssssssssssssesssuecssussssssssssssssnssessecccescco seee CHAPTER REVIEW OF LITERATURE 5.22109215002222 10 1.1 The concept of business strategy .c.ssssssssssssssssesssesssssssssssssessseccoseco secosses 10 DU ) MA 10 1.1.1 Levels Qƒ SIdf€gy 5c TH 11 2111021 10 1.2 Role of Business strategy ss:.sssssssssssssssssssssssesssssessssssssssssssesesscccssccccsecses 12 1.3 Strategic management Process sssssssssscsescsssssssscssssssssssscsscscsseccoseccceecoss 13 1.4, Analyze the firm’s external environment .c cssssssssssssssssosssesoossesscssce ccesss 14 1.4.1 Macro-environment (PEST 7) S5 PA 14 1.4.2 Industry analysis (Porter’s Five Force I1OđêÌ) se csksksvssss sa 15 1.4.3 The External Factor Evaluation (EFE) tmA†FÌX so 17 vv Sen: 1.4.4 The Competitive Profile Matrix (CPM) woececccccessessesessscsssssetetscscsese eacans 18 1.5 Internal environment analySis sssssssssscsssscssesscsssscssssssssssesccsssesssecccces ss 18 wr Global Advanced Program Master of Business Administration 1.9.2 The Internal Factor Evaluation (IFE) Matrix cocecccccccceccccccccceeesccceccccs , 19 1.5.3 Setting up long-term Objectives ccccccccccccscsseersssssverestersssssesssssetessescececece 20 1.5.4 Strategy analysis And Selection c.cccccccsescsssesssessessesessessessesesceceececcccecccen, 20 1.5.5 Strategy implementation ccccceccccscssscssserssssssestssessessessssssaresserseseeseesescesces 21 CHAPTER ANALYSIS ON BUSINESS SITUATION FOR DOMESTIC MARKET OF MINH ANH GARMENT LIMITED COMPANY 23 2.1 Introduction of Minh Anh Garment COIDADV oG G552 23 2.1.1 General information on the COMJDđWJ .tt 23 2.1.2 BUSineSS ÏÌHIÊS ST TH re 23 2.1.3 Organization Structure eeccccsesssssssssssssssrssssessessssssssssssisesassisesiecesceseescccccc 23 2.1.5 Business results of Minh Anh Garment Ltd, Co in 2010-2012 26 2.2 External environment analysis c.sssscsssssesssssscssssssssssssssscoseccosesecceeccess 28 2.2.1 Maco-environment analysis (PEST 117 (1 (1) + csssessssss: 28 2.2.2 IndUstry anA]ÿSiS St HE 011211 11 c 32 2.2.3 Summary on Opportunities and ThreafS neo 40 2.2.4 External Factor Evaluation (EFE) cc.ccssscssssesssssssssssssssscssseseceosessecccccce 41 2.3 Internal environment amalySis s.ssssscsscsescsesssesssesssessssssssoseccosccosssesesee, 42 2.3.1 Resource based Analysis ccccessssssssssssssssssssessssssssssssussssssssesssesesseccecccceee 42 2.2.3 Internal Factor Evaluation (TELE) TriđFFỦX St SE St tre cersea 53 2.4 THE COMPETITIVE PROFILE MATRIX (THE CPM) 55 CHAPTER STRATEGY SELECTION AND SOLUTIONS TO IMPLEMENT SELECTED STRATEGY FOR DOMESTIC MARKET OF MINH ANH GARMENT LTD., CO DURING THE PERIOD OF 2013-2017 57 3.1 Long term objectives ssssssssssssssssssssssesssessssssecssessssssssesscssuscesscosscosssesc s 57 3.2 Strategy Selection ssssssssscssssssssessssssessessescusssessussssssessssssessssssscescescce seesc, ST 3.2.1 SWOT analÿsiS t1 0111211 e He - 57 3.2.2 The QSPM maHrix c2 tre 62 3.3 Solutions to implement product development strategy s 65 (C1 Global Advanced Program Master of Business Administration 3.3.1 Birth rate in Vietnam from 2009 and W/2424-3 NAa 65 3.3.2 Existing competitors in kid's fashion market 66 3.3.3 Market segment of kid's fASHION ocecceescessessssssssessesssesssssssssseseseceeec eccccccc., 68 3.3.4 Solutions on organization Structure ccccccccscsessssssssssssssessseeeseeeceeeccccc c 68 3.3.5 Solutions On Marketing ccccscccsscssssessisssssssiessissssssssssstisssieeseeeeseeceecccce cc 69 3.3.6 Solution of Research and Development Of Product ecccccsccccscsscsses sseseseeens 74 3.3.7 Solutions on Humah r€§OWFC se 5t 22 111111111 75 3.3.8 Solutions on Technology eeccsescssissssssrssssssussssissssissssassssisesteeessecee eseccccccce 75 3.3.9 Production management scccsccsssssssssssssssssssissssissssisssiaestieeseeeec eececccccc 76 3.3.10 Solutions ON Finance secsscsssssesssssssssssessssiisesssissssisssssssestsieeeseeeeceseec ccc., 77 3.3.11 Budget planning for selected SIPQLORY srcsvessiissssacengsenanxsevenavenwsanna vssvachsiaes 77 VU 0 05) (0) axa A 322).)20/0Q SE [C2 Global Advanced Program Master of Business Administration 80 81 LIST OF FIGURES Figure 1.1.: Hierarchical levels of strategy Figure 1.2 Strategic management Process Figure 1.3.: PEST analysis Figure 1.4.: Porter's Five Force Model Figure 2.1 Structure of organization Figure 2.2 Revenue structure in 2012 Figure 2.3 : GDP and CPI growth rate from 2000-2012 Figure 2.4 Demographic structure by ages from 2009-2049 Figure 2.5 Labor structure by ages Figure 3.1 New structure organization in 2013 -2017 [GS Global Advanced Program Master of Business Administration LIST OF TABLES lable 1.1.: SWOT matrix Table 2.1.: Summarized Income statement of Minh Anh Garme nt Ltd.,Co in 2010-2012 Table 2.2 Revenue structure in 2012 Table 2.3 Competition of some criteria among Minh Anh and its competitors in 2012 Table 2.4 Summary of five forces of Minh Anh company Table 2.5 External Factor Evaluation matrix Table 2.6 Balance sheet of Minh Anh Co., Ltd from 2010 — 2012 Table 2.7 Income statement of domestic products Table 2.8 Some financial ratios in 2010-2012 Table 2.9 Internal Factor Evaluation matrix Table 2.10 Competitive Profile Matrix Table 3.1 SWOT matrix Table 3.2 The QSPM matrix Table 3.3 Forecast of some population criteria Table 3.4 Marketing plan in 2013-2014 Table 3.5 Forecast revenue in 2013 -2017 Table 3.6 Cost of implementing new strategy in 20132014 Table 3.7 Needs of raising capital in 2013 Table 3.8 (C1 Strategy implementation schedule Global Advanced Program Master of Business Administration INTRODUCTION Significance of study Garment industry has long been a strength of export of Vietnam, with atundant labor resources and lower labor costs than other countries in the region Vietnamese textile industry was approved development Strategy up to 2015 and orienta tions to 2020 by the Government Vietnam aims to develop textile and garment industry to become one of the key industries; meet the increasing domestic demand; create more jobs for the society; improve competitiveness and strong regional and global economic integration Therefore, the development of garment industr y in the future will be given priority However, due to the impact of the world economic crisis, the European countries fall into the state of sluggish economic growth, unemployment rate in the United States was reduced but still high, the world's leading economies cannot escape this trend; strengthening the development of domestic economy is becoming popular in the world Therefore, export market of Vietnam's garment industry will gradually be reduced Companies in the industry will be more competitive to get orders Garment Co., Ltd Minh Anh is no exception in the garment industry However, the company 's outsourcing customers mainly come from countries like the Czech Republic, Germany, with the economic and political situation of Eastern Europe, it will not be a source Therefore, of sustainable Minh Anh long-term orders for the development Co., Ltd needs to figure out a new of the company business Strategy for its development On that basis, our group decided to choose the study "Build business strategy for domestic marketof Minh Anh Garment Limited Company during the period of 2013-2017" Objectives of study v Systematizing theoretical basis of business strategy and effective method s to select model analysis for business strategy v Applying theoretical basis to focus on analyzing the situation and capacit y of (CZ Global Advanced Program Master of Business Administration Minh Anh Garment Co.,Ltd Y Proposing solutions and recommendations for the development of Minh Anh Co.,Ltd 3.Scope of study Subjects: Minh Anh Garment Co., Ltd has run business for overseas outsourcing products, products for the domestic market However, within the scope of this report, our group focuses on analysis of the domestic market and business strategy for the domestic market of Minh Anh Co.Ltd Time of study: Business strategy for Minh Anh Co.,Ltd until 2017 Method of study - Using analysis tools as EFE, IFE, PEST, forces of Micheal Porter, SWOT, QSPM to select business strategy - Source: Secondary materials as articles, report, books, and Interne t resources Limitation of study Our group studies some major competitors of the company Financial statements from the years 2009-2012, the company's business data in 2012 are estimated and provided by the accounting department Structure of study INTRODUCTION Chapter 1: Review of Literature Chapter 2: Analysis on Business situation and Business strategy market of Minh Anh Garment Ltd., Co Chapter 3: Strategy selection and Solutions to implement selected for Domestic strategy Domestic market ofMinh Anh Garment Ltd., Co during the period of 2013-2 017 CONCLUSION (C1 Global Advanced Program Master of Business Administration for ... study "Build business strategy for domestic marketof Minh Anh Garment Limited Company during the period of 2013-2017" Objectives of study v Systematizing theoretical basis of business strategy and... - Minh Anh Garment Limited Company GaMBA strategy X0111 when for domestic they conducted market of Minh has fully supported for Group the capstone "Planning Anh Limited during the period of 2013-2017" ... for Domestic strategy Domestic market ofMinh Anh Garment Ltd., Co during the period of 2013-2 017 CONCLUSION (C1 Global Advanced Program Master of Business Administration for CHAPTER REVIEW OF