CAPSTONE PROJECT REPORT BUSINESS DEVELOPMENT STRATEGY ON REAL ESTATE OF VAN PHUC GIA INVESTMENT JOINT STOCK COMPANY IN THE PERIOD 2012-2015 Group No : Member : TON NU NGOC HAN PHAM XUAN TIEN PHAM TRUNG CHANH NGUYEN THI SU Class : GaMBA01.C0310 Ho Chi Minh City, February 2012 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS DEVELOPMENT STRATEGY ON REAL ESTATE OF VAN PHUC GIA INVESTMENT JOINT STOCK COMPANY IN THE PERIOD 2012-2015 GROUP     TON NU NGOC HAN PHAM XUANTIEN PHAM TRUNG CHANH NGUYEN THI SU HO CHI MINH City - 2012 Strategic Management – Group C0310 COMMITMENT The Group 5, which comprises following members: Ton Nu Ngoc Han, Pham Xuan Tien, Pham Trung Chanh and Nguyen Thi Su, would like to show its guarantee in its truthfulness that the final exercise named “Business development strategy on real estate of Vanphucgia Investment Joint Stock Company for the period 2012 – 2015” is the joint-implementation research work of Group itself The citation of used data in this exercise is cleary shown in the list of reference In addition, this research result has not been published in any research work up to now Ho Chi Minh City, 15th Mar., 2012 Implementing group Group – Class of GaMBA01.C0310 i Strategic Management – Group C0310 ACKNOWLEDGEMENT The accomplishment of the final exercise, a hard and difficult mission to overcome, is a result of our nearly 2-year strenuous and difficult study, as a preliminarily obtained certain achievement from our careers of study and research In addition to our own efforts, this result is also contributed by enthusiastic interests, guidance and helps from people around us We would like to show our warmest thanks to the Center for Educational Technology and Career Development of the Vietnam National University, Hanoi for their facilitation throughout the MBA training program of the Griggs University - America We also would like to express our deep gratitude to our lecturers for their enthusiasms and whole-hearted conveyance and transfer of precious knowledge that are really useful for our career development Our sincere thanks are expressed to the guiding Council, especially the lecturer and Dr Le Van Bay for his whole-hearted instructions and helps regarding the completion of this final exercise Furthermore, we would like to send our gratitude and thanks to the management Board of the Vanphucgia Investment Joint Stock Company due to their facilitation, contribution of ideas and provision of valuable data and information for our group’s research Our thanks are directed to our classmates who are always willing to help us acquiring practical and useful lessons by their own practical experience and knowledge Finally, we would like to send our most sincere and grateful thanks to our families due to their constant encouragements and facilitations for the participation and the completion of our training courses Our most sincere and deepest gratitude are expressed for everybody! Group – Class of GaMBA01.C0310 ii Strategic Management – Group C0310 TABLE OF CONTENTS PREFACE 1 Background Research objectives Research scope .3 Research methodology .3 Topic structure: CHAPTER THE PRINCIPLE OF BUSINESS STRATEGY AND REAL ESTATE TRADING 1.1 The principle of strategic management .4 1.1.1 Definition of strategic management 1.1.2 Classification of strategic management 1.1.2.1 Different levels of strategy 1.1.2.2 Types of Strategy 1.1.3 Process of strategic management 1.1.3.1 Strategy formulation 1.1.3.2 Strategy implementation 19 1.1.3.3 Strategy evaluation 19 1.2 Current status of real estate market in Ho Chi Minh City 19 1.3 The necessity of real estate business trategy planning of VPG 21 CHAPTER 22 ANALYSIS OF BUSINESS AND MANUFACTURING STATUS AND THE REALESTATE BUSINESS OF VPG 22 2.1 The establishment and development of VPG: 22 2.1.1 Company introduciton: 22 2.1.2 Business sectors of the Company: .23 2.1.3 Legal capital increase: 23 2.2 Organization structure – roles and duties of divisions: 24 2.2.1 Organizational structure: 24 2.2.2 Roles and duties of divisions: .25 2.3 Evaluation of business performance of VPG in the period 2009-2011: 29 2.3.1 Real-estate business and investment 29 2.3.2 The consultancy of design, investment project proposal and construction works 32 2.3.3 Real-estate broking service and office for lease 33 iii Strategic Management – Group C0310 2.3.4 Business achievements of VPG in the period 2009-2011: 34 2.3.4.1 General business achievements, comments and evaluations: 34 2.3.4.2 Business achievement in real-estate investment: 40 2.3.4.3 Business achievement in construction: .41 2.3.2.4 Business achievement in consultancy and others: 42 2.4 Analysis and evaluation of the current business strategy of VPG 42 2.4.1 Advantages 42 2.4.2 Difficulties 44 2.4.3 Evaluation of achievements and existing limitations 45 CHAPTER 48 PLANNING STRATEGY AND SOLUTION TO DEVELOP VPG’S REAL ESTATE BUSINESS - RECOMMENDATIONS 48 3.1 Mission, vision of the VPG 48 3.1.1.Mission of the company: 48 3.1.2 Vision: 48 3.2 Strategical objectives: 48 3.3 Planning strategy: 48 3.3.1 Analysis of business enviroment 48 3.3.1.1 Macroeconomic situation 48 3.3.1.2 Analysis of external environment .51 3.3.1.3 Internal factors analysis 56 3.3.1.4 SWOT Matrix of VPG 58 3.3.1.5 SPACE Matrix of VPG 62 3.3.1.6 Competitive picture matrix (CPM) 64 3.3.1.7 Quantitative strategy picture matrix (QSPM) 65 3.4 Solutions to implementing strategies .67 3.4.1 Capital solution 67 3.4.2 Product solutions 68 3.4.3 Solutions for human resources 68 3.4.4 Solutions for cost 69 3.4.5 Solutions for quality and progress management 69 3.4.6 Solutions for Marketing and sales organization: 70 3.5 Proposed revenue and profit in 2012-2015 .71 3.6 Recommendations: 72 CONCLUSION .73 REFERENCES .78 iv Strategic Management – Group C0310 LIST OF TABLES Table 1.1 External Factor Evaluation Matrix (EFE) 11 Table 1.2 Internal Factor Evaluation Matrix (IFE) 12 Table 1.3 CPM Matrix .15 Table 1.4 QSPM matrix 18 Table 2.1: Business achievements in the period 2009-2011 .34 Table 2.2: Analysis of some basic financial indicators of VPG .39 Table 2.3: Revenue, real-estate business profit .40 Table 2.4: Revenue, construction business profit .41 Table 2.5: Revenue, consultancy profit and others 42 Table 3.1: External Factor Evaluation (EFE) Matrix of VPG 55 Table 3.2: Internal factors evaluation Matrix of VPG 58 Table 3.3: Factors plotted on the axises of SPACE Matrix 62 Table 3.4: Competitive picture matrix 64 Table 3.5: QSPM matrix 66 Table 3.6: Proposed revenue structure in 2012-2015 .71 Table 3.7: Proposed profit structure 2012-2015 .71 Table 3.8: Proposed business results in 2012-2015 72 v Strategic Management – Group C0310 LIST OF FIGURES, GRAPHS Figure 1.1 Comprehensive model of the strategic management process Figure 1.2 A model of five competitive forces designed .9 Figure 1.3 SWOT matrix 13 Figure 1.4 SPACE matrix 13 Figure 1.5 Grand Strategy Matrix 16 Figure 2.1: Organizational structure of VPG 24 Figure 2.2: Perspective of corporative housing B1 Truong SA 29 Figure 2.3: Perspective of corporative housing project Truong Dinh Hoi 30 Figure 2.4: Perspective of housing project in Le Minh Xuan .31 Figure 2.5: Revenues of VPG in the period 2009-2011 35 Figure 2.6: VPG’s Profits in the period 2009 – 2011 35 Figure 2.7: Revenues, costs and profits 2009 - 2011 of VPG .36 Figure 2.8: Cash and inventory 2009 - 2011 of VPG 37 Figure 2.9: Assets Structure in period 2009 - 2011 of VPG 38 Figure 2.10: Capital Structure in period 2009 - 2011 of VPG 38 Figure 3.1: SWOT Matrix 61 Figure 3.2: Competitive strategy of SPACE Matrix 63 vi Strategic Management – Group C0310 BUSINESS DEVELOPMENT STRATEGY ON REAL ESTATE OF VAN PHUC GIA INVESTMENT JOINT STOCK COMPANY FOR THE PERIOD 2012-2015 PREFACE Background Real estate is considered as one of the key business sectors in the national economy, which has obtained a great deal of profits and socio beneficial values during its prosperous period Up to Apr 2011, a sharpest increase was remarked to the real estate value in every channel of investment Taking the time of Dec 2000 for comparison, USD exchange rate increased 1,5 times, saving account service roughly scored a 2.5-fold price increase , VN-Index took an approximation of 4,8-fold mark increase, gold reached a 7.6-fold price increase, while real estate roughly owned an 8fold increase The huge profit in real-estate sector attracted the participation of a great deal of investors, facilitated the newly established real-estate companies in every economic sectors under a circumstance of severe and harsh completion Due to that massive development, supplies have exceeded demands in some specific areas and tended to stop and decline since mid –Apr 2011 Up to the latter half of 2011, under the circumstances of tight monetary policy of the Government, highly increased interest bank rate, the real estate market has entered a period of deep decline in which some investors had to choose the dumping for capital recovery and loan redemption while many buyers have expected a higher price decrease While the real-estate price has only shown its decrease in the segments of mansions and high-level corporative housing, the ground base and small-area corporative housing segments have still run its high price due to the current large market demand over a limited supply The slump of high-level corporative housing and mansion ground base products have led many local and foreign large investors to focus on the construction of small-area apartments with low price which meet the demands of Strategic Management – Group C0310 clients who have middle income and real demands of housing The product changes of brand-affirmed investors with strong potential should render a picture of effervescent market through its increasingly severe competition The Vanphucgia Investment Joint Stock Company has been a young company whose capital size is relatively small in the real-estate business sector In spite of being limited the fiscal ability, the company has many advantages such as: the good leaders, the favorite strategy partners and the high evaluation of the credit organizations, etc A long with the desire of providing the compatible products and housing solutions for the poor and the low-income people VPG always researches to design the suitable products, watches strictly the performance of project which must comply with the modern process in order to launch the high quality products with affordable costs in the market In front of real situations in the market and internal conditions of the enterprises The Vanphucgia Investment Joint Stock Company together with its existing advantages must have a business strategy to exist and develop permanently in the coming years Arising from the actual situation above, we have chosen the theme for graduation assignment “The Vanphucgia Investment Joint Stock Company’s development and business strategy in real estate industry period 2012-2015” Research objectives - Systemize and make clear of basic rationale towards the business strategy and real-estate business of enterprises in Ho Chi Minh City and other provinces - Evaluate the economic development, politic, State’s policies relating to realestate business, bank credit; evaluate the competition situation of rivals in the same industry to define opportunities and threats - Comprehensively analyse and evaluate the current status of business performance of Vanphucgia Investment Joint Stock Company to define strengths and weaknesses - The defined strengths, weaknesses and opportunities, threats are essential input to make an appropriate business strategy for Vanphucgia Investment Joint Stock Company Synchronized measures should be done to assure the effectiveness of the Strategic Management – Group C0310 deployed by Company is B1 Truong Sa Apartments from 2010 to 2011 that has created a “fever” in market, right at a gloomy time of real estate market Figure 3.2 shows vector of VPG located on competitive angle of Space matrix, It indicates that VPG is able to use its strengths to capture convenient opportunities as well as limit external threats and overcome weaknesses Through above analysis, we see that VPG can establish market expanding strategies, business improvement and production management ability aimed at lowering actual cost of products, product distinction strategies to compete directly with its rivals 3.3.1.6 Competitive picture matrix (CPM) VPG’s competitors in real estate’s market is very diversified, in order to make competitive picture matrix, by examining and experience of authors group decide to select competitors with following characteristics : - Having smaller or larger scale compared to VPG - Having similar or larger financial condition against VPG - Having the same market segment to VPG From above criteria, group has selected competitors of Thu Duc Housing Development Joint Stock Company (TDH), Van Phat Hung Joint Stock Company (VPH) and Khang Dien House Business Joint Stock Company (KDH) From business performance of VPG and its competitors, Group has made competitive picture matrix as follows: Table 3.4: Competitive picture matrix VPG sample competing company N o Success factors Importance level Ran k Impor tance score Competitor 1-VPH Rank Impor tance score Competitor 2-KDH Competitor 3-TDH Rank Impor tance score Rank Impor tanac e score Finance 0.15 0.30 0.30 0.45 0.45 Trademark 0.10 0.20 0.40 0.40 0.40 Suitable Products 0.15 0.60 0.45 0.45 0.30 64 Strategic Management – Group C0310 Human Resources 0.10 0.20 0.20 0.30 0.30 Experience 0.15 0.45 0.60 0.60 0.60 0.05 0.20 0.15 0.15 0.20 0.09 0.27 0.27 0.27 0.36 Relations with authorities Customers Sales policy 0.07 0.28 0.14 0.14 0.21 Prices 0.07 0.28 0.21 0.07 0.07 0.07 0.21 0.21 0.21 0.21 10 Product quality Total 1.00 2.99 2.93 3.04 It can be seen from competitive picture matrix of VPG with competitors: VPH, KDH, TDH, Group remarks, VPG has total importance score equal to these competitors and absolutely exceeding these competitors about appropriateness of products in term of price, this is very decisive factor for VPG to be competitive equally in spite of unbalancing the trade mark In order to improve competitiveness and ensure sustainable development, VPG needs to more consolidate its strengths about products and prices Besides, it needs to give out solutions to VPG trademark becoming more friendly to customers 3.3.1.7 Quantitative strategy picture matrix (QSPM) Based on strategies selected from analyzing SWOT and SPACE matrix, group has selected some main strategies and analyze, evaluate the to rank in priority order by QSPM matrix as follows: A Market expansion strategy B Low cost strategy C Product distinction strategy In QSPM matrix, important factors and classification score are extracted from external factors matrix EFE and internal factors matrix IFE Group conducted to give attraction scores for factors 65 3.10 Strategic Management – Group C0310 Table 3.5: QSPM matrix Selectable strategies Strategy A Strategy B Importance factor Internal factors Financial capacity Leadership and management Staffs and officers Available land fund and good projects Experience in real estate business Trademark VPG and marketing activities Capacity in participating into designing and consulting for customers Organizational structure and operation scale External factors Economic growth Houses demand for people with medium income Business cooperation Demand for buying house for business has not been recovered Land fund is narrowing, land cost is higher and higher Infrastructure for livelihood in areas far from center is underdeveloped Competitiveness is fiercer and fiercer Total Clas sific Attracti ation on score Strategy C Total score Attracti on score Total score Attracti on score Total score 3 4 16 12 12 12 4 16 12 4 16 16 12 2 6 2 6 4 12 16 12 2 4 3 9 12 12 12 2 4 2 4 113 132 123 As can be seen from result of attraction score for options of QSPM matrix we select strategy B – Low cost for planning real estates business strategy for VPG in period of 2012-2015 66 Strategic Management – Group C0310 Strategy A –Market expansion, in spite of not having high score as that of strategy B, for any business activities, market is very important, therefore, VPG is able to implement at the same time both strategy A to support strategy B, causing increase in business efficiency of Company Strategy A – Product distinction, with product particulars of real estates, creating distinction means increase in actual cost, in short term, this is not appropriate However, strategy A will be good, when the production distinction is created not based on increased cost, VPG need to pay attention to implement this strategy in appropriate time 3.4 Solutions to implementing strategies 3.4.1 Capital solution In period of 2012-2015, VPG focused on completing B1 Truong Sa Apartments and starting B2 Truong Sa Apartments Project, Ward 11 Apartments, Binh Thanh District Total capital demand in this period is about 274,834 billion dong, Company is expected to use its equity of 70 billion Dongs, and capital mobilized from customers is 157,896 billion dong, loan of 47 billion dong - Self funding: B1 Truong Sa Apartments will be handed over to customers in Quarter 2012 Revenue from this project is about 202 billion dongs, profit before tax is about 100 billion dongs At present, Company collected only 70% value of apartments, therefore, when handing over, Company will collect amount of about 60 billion dongs, after paying to contractors, VPG has about remaining 30 billion dongs This is a quite important capital source for VPG to deploy next projects - Issuing stocks for increasing capital: In 2013, VPG will increase its charter capital up to 100 billion and by 2015 its charter capital will reach 200 billion Dongs, bringing back supplementary capital source for Company of 150 billion Dongs At present, VPG is a public company and submitted its files on listing its stock on HNX, shareholders of the Company’s management holding more than 60% shares , these shareholders’ benefits are attached to Company so the capital mobilization is certainly successfully 67 Strategic Management – Group C0310 - Prepaid by customers: For almost real estates business companies, prepaid money from customers is a main source for implementing the project, VPG is not exceptional Two projects expected to be deployed by Company in period 20122015 are the ones having very favorable positions, demand for resident housing of people is very high, especially project B2 locating adjacent to B1 project that is very successful one of Company Therefore, company believes that deploying as well as collecting money is very convenient - Bank loan: Company has contracted on cooperation with Techcombank in funding to house buyers, and VPG is a gold class client of Techcombank, ranked high credit owing good debt solvency Therefore, borrowing loan for VPG is rather convenient 3.4.2 Product solutions - For any business fields, It is extremely important to grasp and understand about market, it can be seen as a decisive factor to existence of Enteprise Only command of real estates market, company may provide good products suitable to market demand - Project managent department will cooridinate with real estate exchange to implement investigations, demand probing for real estates, since then products trends shall be generalized and asessed for the tiem being and in future - Based on investigations, the design departments shall be responsible for designing products appropriate to increasingly strict requirements of customers 3.4.3 Solutions for human resources - Key staff and personnel are located to participate in advanced courses specialized in corporate governance, economic management, project management to get some knowledge captured in monitoring the economy, modern corporate governance to perform well the training for all members of the company - Organizing extra-curricular sessions interacting with leading experts or internal business, to exchange experience and disseminate new knowledge in areas of interest 68 Strategic Management – Group C0310 - Developing industrial working style for all employees, ensuring to comply with the standards of advanced quality management - Developing treatment regimes and encouraging all employees to actively participate in learning to improve their knowledge - Rearranging the work force based on the capacity and level of work, determining to take measures to dismiss unskilled laborers who not fit the job requirements - Developing specific official standards for each managerial, technical position, in order to better meet the increasing requirements - Periodically organizing personnel recruitments, in search of talented staff for the company 3.4.4 Solutions for cost - Monthly, quarterly, accounting department must make the report analyzing in details the variation of costs and their impact on business and production efficiency, timely detecting and rectifying timely the unreasonable expenses - Real estate transaction office and project division closely monitors the market situation, analyzes and predicts accurately the changes in prices of materials and finished products, to raise right decisions about the time of purchasing materials, and selling products - Design division focuses on scrutinizing the technical construction drawings, to ensure the drawings to be suitable, saving, not adjusted during construction to avoid repair or removal due to mismatch In addition, responsible for exploration and study of alternative materials for popular materials which prices are high 3.4.5 Solutions for quality and progress management - Issuing procedures on construction progress management, construction quality management, design management Organizations closely monitor the construction and installation works for projects to ensure good quality products, minimize the fix in the construction process 69 Strategic Management – Group C0310 - Preparing in details the construction schedule of works and projects, strengthening the supervision and management of contractors to raise the construction of reasonable measures to ensure the completion of the objectives according to schedule Uncompromising selection of qualified contractors with full experience in the construction and installation works - Developing and consolidating management technical staff from the Company to Project Management Boards - Strengthening the direction and supervision of Investor and the unified relations among Management Board, Supervision Consultant, design unit and construction unit to speed up the progress and improve work quality - Managing well the organization of Master Plan for construction of sites to improve the quality, timeliness and effectiveness of the project - Developing measures and regulations on labor hygiene protection and safety of the units in the construction and installation works for projects by the Company to be Investor - Organizing training, sightseeing, practicing to improve qualification and experience for technical staff 3.4.6 Solutions for Marketing and sales organization: - Improving business processes to exploit the investment in housing projects and urban areas from the period of advertising, introducing products to attract customers to the period of handover to put into use - Developing sales representatives understanding the mode of state policies and market conditions, to ensure quick grasp of the market volatility to take measures to adjust the business plan in appropriate time - Developing customer care regulations: to meet actual business performance, advantages to enhance the brand, ensure the efficiency of the project - Preparing plan and training labor force to deal in services at some projects which will be completed in the near future, such as Apartment in Lot B1, Truong Sa, etc 70 Strategic Management – Group C0310 - Coordinating with the Real Estate Exchange in all provinces surrounding Ho Chi Minh City to market the company's projects - Coordinating with foreign companies in the property management to enhance the brand of VPG - Strengthening the supervision of the investor for the management consulting units and providing urban services to increase customer service quality in the residential areas of the company 3.5 Proposed revenue and profit in 2012-2015 Table 3.6: Proposed revenue structure in 2012-2015 No Revennue Real estate Design consultancy Construction consultancy Real Estate Exchange business Trading service Total 2012 2013 2014 2015 75.000 10.000 30.000 155.000 15.000 40.000 405.000 20.000 55.000 480.000 30.000 100.000 15.000 15.000 25.000 40.000 10.000 140.000 15.000 240.000 20.000 525.000 30.000 680.000 (Source: Resolution of anual general shareholders assembly in 2011) Table 3.7: Proposed profit structure 2012-2015 No Revenue Real estate Design consultancy Construction consultancy Real Estate Exchange business Trading service Total 2012 2013 2014 2015 18.000 1.200 40.000 1.700 95.000 2.400 101.000 6.000 500 800 1.400 2.500 1.300 2.000 4.000 7.000 21.000 500 45.000 1.000 104.000 2.500 119.000 (Source: Resolution of anual general shareholders assembly in 2011) 71 Strategic Management – Group C0310 Table 3.8: Proposed business results in 2012-2015 Indicators 2012 2013 2014 2015 Owner equity 73.000 158.000 342.000 421.000 Charter capital 50.000 100.000 200.000 200.000 Gross revenue 140.000 240.000 525.000 680.000 Profir before tax 28.000 60.000 137.000 156.000 Profit after tax 21.000 45.000 104.000 119.000 EAT/Gross revenue 16.15% 20.00% 19.81% 18.30% EAT/Owner equity 36.44% 38.96% 41.60% 31.19% 4,200 4,500 5,200 5,950 20% 20% 20% 20% Earnings/share (EPS) Ratios for dividend payment (Source: Resolution of anual general shareholders assembly in 2011) 3.6 Recommendations: - The legal system and legal documents related to land, the activities related to real estate business should be developed synchronously, consistently with high stability Creating safe legal corridor for real estate business - Amending Decree No 71 towards easing the transfer of project activities, Real estate transfer as well as other forms of business funding - Land planning to be done synchronously, to go before construction activities - Concentrating investment in infrastructure in the planned residential areas - Issuing specific policies to support class having urgent need for housing but unable to pay 72 Strategic Management – Group C0310 CONCLUSION Planning business strategy is important and vital for every company, is a useful way to comprehensively assess accurately the existing resources of the company, and to recognize the position of the company before the competition Thereby, the company can accurately determine the business strategy, which should be taken in order to maximize the strengths and overcome weaknesses, seize opportunities, and limit negative impacts on the company In the context of rapidly changing environment today, if only based on the dominants before without timely adaptation to changes of environment, it is difficult to stay stable and further develop In fact, very few companies of Vietnam Over time of working seriously and doing fact-finding at Van Phuc Gia Investment Joint Stock Company, by experience and deep understanding of the real estate market of Vietnam by the team members, along with the analysis of factors inside and outside to identify the strengths, weaknesses, opportunities and risks, we analyze the ability to exploit and overcome these factors We have set out the business strategies for VPG The business strategy is chosen to be suitable for VPG Project has been completed after analysis and reviewing specific business environment in Vietnam Real estate It is expected that high practicality of the project can contribute to a more general perspective for VPG’s leaders to make it further develop and become a leader real estate company in Vietnam However, in the implementation process, the company must regularly examine, evaluate and adjust in time to suit the new situation / 73 Strategic Management – Group C0310 APPENDIX BALANCE SHEET OF VPG No AI II ITEMS CURRENT ASSETS Cash and cash equivalents Cash Short-term investments Short-term investments 31st Dec 2009 30,933,151,565 2,674,726,823 2,674,726,823 1,000,000,000 1,000,000,000 31st Dec 2010 40,025,663,373 1,079,510,980 1,079,510,980 900,000,000 900,000,000 31st Dec 2011 33,781,889,370 1,180,504,589 1,180,504,589 900,000,000 900,000,000 III Accounts receivable Receivable from customers Prepayments to suppliers Receivable according to the progress of construction contracts Other receivable IV Inventories Inventories V Other current assets Short-term prepaid expenses Taxes receivable Other current assets B - LONG-TERM ASSETS Long-term accounts I receivable Long-term accounts receivable from customers II Fixed assets Tangible assets Historical costs Accumulated depreciation IV Long-term investments Investments in business concerns and joint ventures V Other long-term assets Other long-term assets TOTAL ASSETS 17,502,384,690 877,605,906 6,484,490,784 9,251,417,727 2,045,990,135 3,407,494,575 10,833,117,700 3,354,529,132 3,769,965,368 140,288,000 140,288,000 140,288,000 10,000,000,000 3,657,645,017 3,568,335,200 1,699,612,255 17,938,345,414 10,888,206,041 1,699,612,255 17,938,345,414 10,888,206,041 8,056,427,797 10,856,389,252 9,980,061,040 80,590,681 154,650,367 462,788,346 27,556,729 7,948,280,387 10,701,738,885 9,517,272,694 49,513,564,022 120,221,608,118 152,368,823,388 - 2,072,249,250 1,423,248,250 2,072,249,250 1,423,248,250 1,168,021,898 2,962,776,048 2,288,912,147 1,168,021,898 2,962,776,048 2,288,912,147 1,363,796,789 3,693,271,517 3,707,518,153 (195,774,891) (730,495,469) (1,418,606,006) 48,337,192,124 115,178,232,820 147,774,392,991 48,337,192,124 115,178,232,820 147,774,392,991 8,350,000 8,350,000 882,270,000 8,350,000 8,350,000 882,270,000 80,446,715,587 160,247,271,491 186,150,712,758 74 Strategic Management – Group C0310 BALANCE SHEET OF VPG ITEMS 31st Dec 2009 31st Dec 2010 31st Dec 2011 LIABILITIES AND OWNER'S EQUITY A - LIABILITIES 50,585,648,386 89,631,821,039 101,495,826,213 50,585,648,386 77,104,402,279 73,889,648,363 I Current liabilities Short-term debts and loans 8,250,000,000 32,600,000,000 32,470,000,000 Payable to suppliers 1,712,730,650 9,790,398,425 1,601,865,015 972,763,735 1,609,731,565 872,260,600 Advances from customers Taxes and other obligations to the State Budget 2,123,471,841 7,652,952,819 11,518,766,331 Payable to employees 27,904,802 216,511,645 175,851,984 Accrued expenses 7,925,101,005 11,423,800,872 8,189,370,753 Other payable 29,573,676,353 13,811,006,953 18,897,204,349 Bonus and welfare funds - - 164,329,331 II Long-term liabilities - 12,527,418,760 27,606,177,850 Other long-term payable - 12,527,418,760 27,606,177,850 29,861,067,201 70,615,450,452 84,654,886,545 B - OWNER'S EQUITY I Owner's equity 29,861,067,201 70,615,450,452 84,654,886,545 Capital 20,000,000,000 50,000,000,000 62,500,000,000 Share premiums - 3,600,000,000 3,600,000,000 Business promotion fund - 195,819,166 1,828,953,098 Financial reserved fund - 489,547,914 1,306,114,880 Retained earnings TOTAL LIABILITIES AND OWNER'S EQUITY 9,861,067,201 16,330,083,372 15,419,818,567 80,446,715,587 160,247,271,491 186,150,712,758 75 Strategic Management – Group C0310 INCOME STATEMENT OF VPG No Sales ITEMS 31st Dec 2009 74,131,751,217 31st Dec 2010 92,918,049,760 31st Dec 2011 40,524,893,176 5,753,728,182 21,856,200,901 1,192,370,004 Deductions Net sales 68,378,023,035 71,061,848,859 39,332,523,172 Costs of goods sold 49,421,583,508 43,624,155,703 9,240,282,070 Gross profit/ (loss) 18,956,439,527 27,437,693,156 30,092,241,102 Financial income 10,880,341 2,444,166,875 134,074,759 3,696,807,657 2,406,200,090 5,906,711,558 3,696,807,657 2,401,143,230 5,833,612,630 Financial expenses In which: Loan interest expenses Selling expenses - - - Administrative overheads 3,567,511,302 5,768,609,409 5,145,215,282 10 Net operating profit/(loss) 11,703,000,909 21,707,050,532 19,174,389,021 11 Other income 508,359,375 81,861,398 775,828 12 Other expenses 343,532,067 13,792,835 66,527,121 13 Other profit/(loss) 164,827,308 68,068,563 (65,751,293) 14 Profit/(loss) before tax 11,867,828,217 21,775,119,095 19,108,637,728 15 Corporate income tax 2,076,869,941 5,443,779,774 4,777,159,432 16 Profit/(loss) after tax 9,790,958,276 16,331,339,321 14,331,478,296 76 Strategic Management – Group C0310 CASH FLOWS OF VPG No I II III ITEMS 31st Dec 2009 Cash flows from operating activities Profit/ (loss) before tax 11,867,828,217 Adjustments Depreciation of fixed assets 82,040,977 Gain/ (loss) from investing activities Loan interest expenses Operating profit/ (loss) before changes of working capital 11,949,869,194 Increase/ (decrease) of accounts (3,670,436,296) receivable Increase/ (decrease) of inventories 2,305,932,145 Increase/ (decrease) of accounts (45,568,997,358) payable Increase/ (decrease) of prepaid (80,590,681) expenses Loan interests already paid Corporate income tax already paid Other gains 397,190,000 Other disbursements (619,425,460) Net cash flows from operating (35,286,458,456) activities Cash flows from investing activities Purchases and construction of fixed assets and other long-term assets (1,058,252,850) Gains from disposals and liquidation of fixed assets and other long-term assets Investments into other entities Withdrawals of investments in other 37,454,073,895 entities Receipts of loan interests, dividends and profit shared Net cash flows from investing activities 36,395,821,045 Cash flows from financing activities Gains from stock issuance and capital 5,120,000,000 contributions from shareholders Repayment for capital contributions and 43,989,017,000 re-purchases of stocks already issued Short-term and long-term loans (47,871,089,000) received Dividends Net cash flows from financing 1,237,928,000 activities Net cash flows during the year 2,347,290,589 Beginning cash and cash equivalents 327,436,234 Ending cash and cash equivalents 2,674,726,823 77 31st Dec 2010 31st Dec 2011 21,773,703,678 19,108,904,963 548,338,379 (68,243,595) 2,401,143,230 688,110,537 (67,062,102) 5,833,612,630 24,654,941,692 25,563,566,028 6,207,689,859 421,471,801 (16,238,733,159) 7,050,139,373 10,706,151,291 7,756,419,276 (74,059,686) (308,137,979) (2,401,143,230) (1,532,629,865) (97,909,583) (2,753,458,498) (5,833,612,630) (703,902,865) (1,171,640,455) 18,470,848,821 32,774,302,549 (2,356,885,364) (13,973,636) 81,861,396 - (85,799,213,729) (32,596,160,171) 19,058,173,033 - - 67,062,102 (69,016,064,664) (32,543,071,705) 33,600,000,000 - 64,017,000,000 73,550,000,000 (39,667,000,000) (73,680,000,000) (9,000,000,000) - 48,950,000,000 (130,000,000) (1,595,215,843) 2,674,726,823 1,079,510,980 101,230,844 1,079,510,980 1,180,741,824 Strategic Management – Group C0310 REFERENCES Vietnamese references: TS Lê Văn Bảy (2011), Bài giảng Quản trị chiến lược doanh nghiệp, TP Hồ Chí Minh TS Hồng Lâm Tịnh (2009), Đề cương Quản trị chiến lược, TP Hồ Chí Minh Dịch giả Trương Công Minh, Trần Tuấn Thạc, Trần Thị Tường Như (2006), “Khái luận quản trị chiến lược”, Nhà xuất Thống kê, Hà Nội Dịch từ “Concepts of strategic management”, Fredr David Đại học Griggs (2011), Bài giảng Quản trị chiến lược, TP Hồ Chí Minh Dịch giả Nguyễn Ngọc Tồn (2009), “Chiến lược cạnh tranh”, Nhà xuất trẻ Dịch từ “Competitive Strategy”, Michael E.Porter Báo cáo tài kiểm toán năm 2009 VPG Báo cáo tài kiểm tốn năm 2010 VPG Báo cáo tài năm 2011 VPG Website: www.vanphucgia.vn Website: : www.khangdien.com.vn Website: :www.thuduchouse.com Website: www.vanphathung.com English references: Fred R David (12th edition), “Strategic Management”, Pearson Michael E Porter (2008), “Five Competitive Forces That Shape Strategy”, Harvard Business Review Michael E Porter (1996), “What is strategy?”, Harvard Business Review 78 ... and real- estate business of Vanphucgia Investment Joint Stock Company - Chapter 2: Analysis of business and manufacturing status and real- estate business of Vanphucgia Investment Joint Stock Company. ..GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUSINESS DEVELOPMENT STRATEGY ON REAL ESTATE OF VAN PHUC GIA INVESTMENT JOINT STOCK COMPANY IN THE PERIOD 2012-2015. .. VPG) The project investor is Gia Phu Gia Phu Urban Development and Investment Joint Stock Company, a subsidiary of Vanphucgia Investment Joint Stock Company In the social housing program of the