GRIGGS GLOBAL ADVANCED MASTER OF CAPSTONE BUILDING UNIVERSITY ADMINIS BUSINESS FRATION PROJECT REPORT BUSINESS STRATEGY THE CONFECTIONERY HAI CHAU CONFECTIONERY FOR BUSINESS OF JOINT STOCK COMPANY IN 2013 - 2017 Group Number: 01 Student’s name: Nguyen Cong Khoa (Group Leader) Luu Quang Khanh Pham Quang Hung Nguyen Van Tien HANOI 2013 ot Global Advanced Maste t Busine PROGRAM Admunistratia l SOCIALIST REPUBLIC OF VIETNAM HAI CHAU (Soe CONFECTIONERY ` JSC Independence - Freedom — Happiness ———— RRR www.hachaucomvn x⁄ Hanoi, April 27", 2013 CONFIMATION Dear: LETTER - Vietnam National University, Hanoi - Center for Education Technology and Career System Hai Chau Confectionery Joint Stock Company would like to confirm: In recent time, Group Advanced - Global of class GaMBA.M0411 Master of Business Administration of Griggs University linking with Center for Education Technology and Career System institution, including the following members: Nguyen Cong Khoa - Group Leader Luu Quang Khanh - Member Nguyen Van Tien - Member Pham Quang Hung - Member Have studied and collected data of Hai Chau Confectionery Joint Stock Company to make for their capstone project of Master of Business Administration Hai Chau Confectionery Joint Stock Company welcome and appreciate the topicality of the thesis: "Building business strategy for the confectionery industry of Hai Chau Confectionery Joint Stock Company in the period 2013 - 2017" implemented by Group | of class GGMBA.M0411 Our company has willingness to review, use the results of the Group’s study during the company’s planning process of development strategy The company would like to confirm Mr Nguyen Van Tien — A cadre of the Government Inspectorate, a member of Group | is consulting for the company on the strategy of human resource organization and development So Our company would like to make this confirmation for you DIRECTOR NGUYEN DINH KHIEM i Gaic Werer si s) v Hay Management Strategic ACKNOWLEDGEMENT Dear Professors! Dear Sir or Madame! Getting your enthusiastic teaching and dedicated guiding, the Members of the have studied together, formed the team work Grup Nol of the Class GGMBA.M0411 ani completed this important capstone project report We would like to express our sircere thanks to our professors and teachers, and the CEO and Mangement of Hai Ctau Confectionery Joint Stock Company for their enthusiastic and effective guidance ani support We for us to complete this capstone would also like to commit that this is the capstone puolished by the Group t) We thank you kindly! CG Global Advanced Master of Business Admuinuistrator studied and firstly Gri US): piece | Management Strategic TABLE OF CONTENTS Page Content |‘INTRODUCTION cóc s —~ 11 The necessity of thesis —— Research purpose Research methodology Scope of research 9 CHAPTER I: THEORETICAL - The structure of capstone report 11 BASIC 1] “1.1 Introduction to business strategy 1.1.1 Concept of business strategy 11 Role of business strategy II 1.1 Types Of business strategy 12 1.2 Business strategy formulation process 13 1.2.1 Defining the business vision, mission, objectives of the enterprise 13 1.2.2 Analysis of external environment 13 1.2.3 Analysis of internal environment 19 1.2.4.1 Selecting business strategy 21 CHAPTER II: SITUATION ANALYSIS OF THE BUSINESS OF HAI 25 CHAU CONFECTIONERY JOINT STOCK COMPANY 2.11 Overview of Hai Chau Confectionery Joint Stock Company 25 2.1.1 The process of formation and development ae 26 '2.1.2.COrganizational structure 27 1.3 Business areas and main products 1.4 Consumption market 28 -2 1.5 Business performance 29 -2⁄2 Analysis of the external environment 31 ` G2) Le c2 Global Advanced Master ot Busine Administration — | GRic we Savensic6) 2.2 Macro Strategic Management Environment 2.2.2 - Anah ysis s of Industry 22.3 Analysis 34 Environment External factors evaluation 243 Analysis of the internal environment 42 12.3 3.1 Facilities, technologies 42 42 2.3.2 Human resources 44 _ 2.3.3 Financial capability 2433.4 Marketing 49 _2.3.5 Internal factors evaluation 5S] 52 2.4 Generating business strategies CHAPTER III : PROPOSED CONFECTIONERY BUSINESS STRATEGY OF HAI CHAU Sổ JSC FOR THE PERIOD 2013 — 2017 3.1 Strategic orientation for business development of Hai Chau "3.1.1 Vision and mission 30 55 3.1.2 Strategic orientation of business development up to the year 2017 55 3.2 Proposed strategic options for business development of Hai Chau 56 3.2.1 Proposed options for business strategy 56 3.2.2 Selection of business strategies 57 3.3 ‘Description of selected strategies 58 3.3.1 Strategy of Penetrating medium and high-ranking traditional market by 58 con.fectionery products of high quality (SO) 3.3.2 Strategy of developing potential products: Moon cake, Jam of Tet 60 holiday (WO) 3.4 Solutions for realization of business strategies of Hai Chau for the 60 period 2013 — 2017 3.4.1 Solutions for market and product 60 "3.4.2 Solution for science and technology 62 CS Global Advanced Waste: ot Business Administrator A GRic K2) > Dài on 3.4.3 Solutions for financial management ef 4.4 Solutions for production management and organization 62 63 3.4.5 Solutions of investment repair and construction 64 Solution of human resources development 64 | te pte | | Strategic Management 3.5 Proposed schedule and budget for implementation of solutions 64 pj 67 REFERENCES: | 68 GR God Uwversity = ¬ ° MandgCVmCHI Strategic LIST OF TABLES - — Table | - R | “Table ld.EFEmatrix “Table 1.2:1FEmatrix, Page 17 20 22 “Table 1.3 SWOT Matrix Table 1.4: QSPM Matrix 23 “Tab le 2.1: Hai Chau Confectionery Market of3 years from 2010 to 2012 29 of Hai Chau in the period 2010-2012 Table 2.2: Business results 29 2.3: Results of Hai Chau confectionery manufacturing and business Table 30 in the period 2010-2012 ' Table 2.4: CPM Matrix of Hai Chau, Bibica and Hai Ha Table 2.5: EFE Matrix of Hai Chau 2.6: Financial Report of 2010-2012 of Hai Chau (Unit: VND) 'Table | Table 2.7: Report of Hai Chau Business results of 2010 to 2012 (Unit: 37 4] 44 47 VND) ' Table 2.8: Some indicators of Hai Chau financial evaluation from 2010 to 2012 48 Table 2.9: IFE Matrix of Hai Chau Table 2.10: SWOT Matrix of Hai Chau 52 53 Table 3.1: Specific objectives for confectionery products of Hai Chau 56 | Table 3.2: QSPM Matrix of Hai Chau 57 | Table 3.3: Proposed schedule for implementing business strategies of Hai 65 Chau in the period 2013-2017 Table 3.4: Budget for deploying the strategy of Hai Chau in the period from 2013 to 2017 c2 Global Advanced \oste: 9! Business: Admunistratiar 66 Grice) De Ra ¬ Strategic Management LIST OF FIGURES ee eS Sha Figure cai — T _ Page of five competition forces of Michael E Porter | Figure 1.1 Model 15 Figure 2.1: Diagram of the organizational structure of Hai Chau 27 Figure 2.2: Some products of Hai Chau 28 | Figure 2.3: Vietnam's GDP growth in the period 2002 - 2012 32 | Figure 2.4: Vietnam confectionery market share 35 CG Global Advanced Visster ot Busmess Ade wustrator | GR G69) dữm6 asirV Strategic Management INTRODUCTION The necessity of the thesis In business and manufacturing operations of each company, the development and selection of business strategy is an important step as the latter plays very important role in ensuring survival mission and serves the basis for formulation and deployment of comprehensive enterprise development plans The world enjoys reach experiences of generating and selecting of business and product strategies It should, however be noted that the business strategy development is a relatively new for Vietnamese enterprises in general and Hai Chau Confectionery JSC in particular, in terms of both theory and practice As to the theoretical aspect of external and internal through the analysis of the company’s management, strategic environment, opportunities, challenges, strengths and weaknesses of the company will be revealed, creating a scientific basis for the identification of practical action-oriented solutions to the best implementation of strategic plans identified As to the practical JSC, Confectionery the for of products that the products essential items of people consumption Hai Chau However, these of in and reality are development of the country With such significantly contributing to the economic characteristics not but key the of one secondary are the indispensable are products as products confectionery aspect, has Company producing, been the issue of competition and further development is really a challenge for the Company Findings of the researches showed have that in order to sustain and strengthening the competitiveness of confectionery products, Hai Chau should focus on studying and shaping development trends of the industry for the future as well as gemerating appropriate comprehensive strategies business for the new and stage provide solutions to creation of greater advantages over competitors in the fierce competition in the confectionery market of Vietnam nowadays and beyond From strategy ' the above which Global ae findings and with the desire to formulate is in line with the developments Advanced aster 9! Business Administration a such business of the confectionery industry and Gricos) ME nsfTY ¬ Strategic Management of situation business actual the in Chau Hai context economic of international integration, our Group has chosen a research topic entitled "Building business strategy for the confectionery industry of Hai Chau Confectionery Joint Stock Company in the period 2013 - 2017." Research purpose Based on the system of theoretical issues on strategic management and analysis assessment making process, business making which Through in the Company Stock Joint Confectionery and production of context with strategy business situation of current some appropriate of Chau Hai economy Vietnam for the solutions company in the period from 2013 to 2017 Research methodology Using the methods of analysis, comparison, synthesis with data extracted and synthesized from the reported data of the financial statements of 2010, 2011, 2012 of Hai Chau Confectionery Joint Stock Company and enterprises of the same industry Besides, the capstone also uses a number of data sources, references, books, magazines and specialized teaching materials Scope of research The major activities of Hai Chau Confectionery Joint Stock Company are the confectionery production and business, but it also participates in two other areas including production of pure water and seasonings In the framework of this capstone, our only group focus on making strategy confectionery business segment of the company and development for the - this can be considered as SBU because of Business Unit) of the company (Strategic analysis being separately managed in term of finance and human resources, with particular customers and competitors The structure of capstone report Besides the introduction, conclusion and appendix, the capstone includes three cha:pters: - Chapter I: Theoretical basis _ \ Global / Advanced Maste: ot Business Admunistration ... to business strategy 1.1.1 Concept of business strategy 11 Role of business strategy II 1.1 Types Of business strategy 12 1.2 Business strategy formulation process 13 1.2.1 Defining the business. .. topicality of the thesis: "Building business strategy for the confectionery industry of Hai Chau Confectionery Joint Stock Company in the period 2013 - 2017" implemented by Group | of class GGMBA.M0411... data of Hai Chau Confectionery Joint Stock Company to make for their capstone project of Master of Business Administration Hai Chau Confectionery Joint Stock Company welcome and appreciate the