GRIGGS GOLBAL ADVANCED UNIVERSITY MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Business Strategy for Song Da Urban & Industrial Zone Investment and Development Joint Stock Company (SUDICO) for the period 2011-2015 Group Number 10: Nguyen Duc Thanh Vi Viet Dung Pham Thi Phuong Loan Nguyen Vu Tuyen Doan Hai Mau HANOI 2011 Gricos) GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION UNIVERSITY COMMITTMENT Our group would like to commit that content of graduation report (Capstone Project) presented in this research is research work of our group, absolutely not transcribed from other’s, data used in this research is truthfulness compared with the original, if there is any false we would absolutely take responsibility Members of the group =2 Global Advanced Master of 3usiness Administration G09) GLOBAL GRIGG ADVANCED MASTER OF BUSINESS UNIVERSITY ADMINISTRATION ~ — cei ACKNOWLEDGEMENT Thank for assistance strategy of Song Da of teachers helping us study theory and analyze business Urban & Industrial Zone Investment and Development Joint Stock Company (SUDICO), our group proposed some solutions either in respect of macro aspect or micro aspect These solutions concentrated on the necessity to change and complete business strategy of the Company However due to restriction of qualification and these are our personal opinions, graduation thesis can not avoid from mistakes We look forward to receiving suggestions of teachers to make the thesis better Sincerely thank you for teachers helping our group complete this graduation thesis r “2 Global Advanced Master of Business Administration Gricas) GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION UNIVERSITY TABLE OF CONTENTS PAGE CONTENT INTRODUCTION CHAPTER I: BASIC THEORY ON MAKING STRATEGY 10 Mission and major objectives 10 Strategy making process 10 External environment analysis 1] 3.1 Marco environment analysis II 3.1.1 Political— Legal 11 3.1.2 Economic 1] 3.1.3 Cultural — Society 11 3.1.4 Technological 12 3.1.5 Demographic 12 3.2 Industry environment analy:The Five Forces of 12 Compettition Model 3.2.1 Buyers 3.2.2 Suppliers 3.2.3 Potential Entrants 3.2.4 Substitutes 3.2.5 Industry competitors Internal environment of the enterprise 4.1 Resource 4.2 Financial capacity 4.3 Enterprise management Business strategy selection 5.1 SWOT matrix 5.2 Establishment of summary 13 13 14 14 14 14 15 15 15 15 16 table of internal-external factors (IE) 17 5.2.1 External Factor Evaluation (EFE) matrix 18 19 r “3 Giobal Advanced Master of Business Administration GLOBAL GRIGG ADVANCED MASTER OF BUSINESS ADMINISTRATION UNIVERSITY 5.2.3 External Evaluation (I.E) matrix 5.3 Strategy selection CHAPTER II: BUSINESS ENVIRONMENT DA URBAN & INDUSTRIAL ZONE DEVELOPMENT ANALYSIS OF SONG INVESTMENT JOINT STOCK COMPANY AND (SUDICO) I Introduction 21 Vision 21 Business line 22 Organizational structure of the company 22 II SUDICO’s external environment analysis Zo I Macro environment analysis: 23 1.1 Analyze effects of Political —- Legal 23 1.2 Analyze effects of Economic factor 26 1.3 Analyze effects Culture Society factor 31 1.4 Analyze effects of Technological 34 Analyze industry environment of SUDICO 2.1 Trend of real estate market in period of 2011-2015 35 35 2.2 Analyze business environment of SUDICO Assessing influence of outside environment on SUDICO 3.1 Summary of Opportunity and Challenge 3.2, Matrix of External Factor Evaluation (EFE) III Analyze internal environment of SUDICO Analyze strength and weakness of SUDICO Global 49 51 51 51 1.2 Value of projects held by SUDICO 55 1.3 Analyze advantage of SUDICO’s brand 56 1.4 Human resources and management ability 57 58 1.1 Analyze strength and weakness of SUDICO 58 1.2 Internal environment evaluation Matrix (IFE) 59 Z4 48 1.1 Financial ability of Company Analyze internal environment of SUDICO F 38 Advanced Master of Business Administration Griccd GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION UNIVERSITY CHAPTER III SELECTION BUSINESS STRATEGY OF SUDICO 61 IN THE PERIOD 2011 - 2015 I SUDICO’s objectives for period of 2011-2015 61 SUDICO’s mission 61 Main economic targets in years from 2011 to 2015 61 Structure of business 62 Main duty 62 II Strategy of SUDICO in period of 2011-2015 63 SWOT Matrix Analysis 63 TE Matrix Analysis 67 SUDICO’s strategy selection for period of 2011 - 2015 68 Ill STRATEGY SOLUTIONS IN PERIOD 2011-2015 I Market solution 68 Solutions of Enterprise organization 68 Solution of investment 69 Finance solution 70 Solutions of managing products’ quality 71 Solutions of training and developing human resource 7] CONCLUSION REFERENCE MATERIAL 72 73 74 r “2 Global Advanced Master ot Business Administration GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION LIST OF FIGURES- TABLES - Figure | Name Page Chapter | Figure 1.1 Table 1.2 M.Porter'y Five Forces of Competition Modei SWOT Matrix Table 1.3 LE Matrix 19 Table 2.1 V, ietnamese economy overview Table 2.2 Stock Exchange 2010 26 Table 2.3 Gold Market Table 2.4 Population in 2009 with local area Vietnam's population density in comparison with United Nations’ standard and China Chapter Table 2.5 Table 2.6 Table 2.7 16 29 Population density in Hanoi and Ho Chi Minh city Summarize comparing advantages of SUDICO with HUD and BITEXCO Table 2.8 | Matrix 13 of competitive graphic Table 2.9 Power of 5pressures Table 2.10 Summary of Oppopunity and ‘Challenge ` 30 32 33 a2 2? 48 Table 2.11| EFE |Matrix Diagram 2.12 Structure of Ownership capital of S UDICO ` Table 2.13 Details of SUDICO’s ownership invesment capital Table 2.14 Comparison of financial indicators in 2009 of SUDICO Table 2.15 Table 2.16 Table 2.17 Table 2.18 Chapter Table 3.1 | _and some enterprises in branch Payment ability of SUDICO Some typical projects of SUDICO Summary strength and weakness of SUDICO “Em matrix Main e economic targets in years from 2011 to 201 Table SWOT MMatrix Table A LE matrix r “ Global Advanced Master of Business Administration af 53 s4 55 GLOBAL GRIGG ADVANCED MASTER OF BUSINESS ADMINISTRATION UNIVERSITY INTRODUCTION Real estate market in Vietnam has been officially formed since 1993, after Land Law allows transfer of land use right It is likely to confirm that real estate economics is a key component, accounting considerable proportion in the economy of developed countries Real estate market takes the role in initial financial accumulation of the industrialization process of the country It is demonstrated in practice of countries and territory region such as Singapore, Korea, Taiwan, Hong Kong In Vietnam, this market attracted the more and more capital resources in the society and contributed considerably for the economic recent global real estate investment, Vietnam’s attraction from supported by elements the domestic demand and such as economic growth In the context of real estate market has proved recovery growth, ability of the fast urbanization its economy, process and forming ofa new middle class Although investment environment remains a lot of challenges, Vietnam’s real estate market has been attracting interest of global investment organizations Since the recession of the year 2008, there have been many projects starting in all fields, with the increase of supply source especially in markets and offices in Hanoi and Ho Chi Minh city, as well as housing and resort area Since the beginning of 2010, Vietnam’s real estate market has been gradually improved; it means continuously expanding connected to Vietnam’s commercial the economy real the economy With because domestic estate and and housing domestic foreign has market’s economy's positive orbit is prospect, momentum of development Infact, enterprises participating in Vietnam’s real estate market are required to have specific, methodical proper Nowadays business business strategies and define business objective in environment has been changing rapidly, global competitiveness requires each enterprise to take initiative, creative and adapt to the daily and hourly change Object and scope of research rS Global Advanced Master of Business Administration Griccd GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION UNIVERSITY Song Da Urban Stock Company bringing a & Industrial Zone Investment and Development Joint (SUDICO) is a company trading in real estate, owns big projects, lot of profits to shareholders The company’s objective is to become one of the leading company trading reai estate, urban investment and development and industrial zone analyzing SUDICO’s of Vietnam Therefore, environment research content should be focused on making and selecting business strategy in the next few years Research method Using strategy analyzing techniques, SWOT matrix On the basis of collecting primary and secondary data, using direct investigation method, statistic method and economic analysis and using SWOT matrix, I.E matrix analyzes SUDICO’s strategy Thesis lay-out The thesis shall be structured as follows: Introduction Chapter I BASIC THEORY ON MAKING Chapter URBAN II BUSINESS ENVIRONMENT Chapter OF SONG III SELECTION BUSINESS Conclusion Global Advanced DA JOINT (SUDICO) STRATEGIC SOLUTION =} ANALYSIS & INDUSTRIAL ZONE INVESTMENT AND DEVELOPMENT STOCK COMPANY r STRATEGY Master of Business Administration STRATEGY OF SUDICO AND GLOBAL GRIGG ADVANCED MASTER OF BUSINESS ADMINISTRATION UNIVERSITY CHAPTER BASIC THEORY In the competitive business 1, ON MAKING world, STRATEGY sometimes people raise themselves question why some companies are successful but some others is unsuccessful? Each enterprise has its own enterprises way must compete to survive and develop It is not imperative that all against other enterprises while serving for a group of customers in a manner or must action in the same manner with attempt to satisfy changes affecting its operation “Strategy is orientation and scope of an organization in the long-term with attempt to achieve competitive advantages for the organization through formatting its resources in a changed environment, in order to meet market’s demand and satisfy related parties’ expectation” Johnson, G Scholes K(1999) Exploring Corporate Strategy, 5" Ed Prentice Hall Europe Mission and major objectives : Mission and major objectives is for companies given shows reason of existence and duties to make of a company strategy Mission Major objectives determine what a company hopes to satisfy in the long-term Strategy making process Strategy is result of a planning process from senior executive levels of the company Consideration of planning process is deemed as a starting-point Strategy planning process can be divided into the major steps as follows: - Select mission and major objectives of the company - Analyze external environment in order environment in to identify opportunities and challenges of the company - Analyze internal order to point out strengths and weaknesses of the company - Select strategies on the basis of looking for esstential resources ability and capcity, develop in order to remove threats, take advantage of opportunities from the external environment ZF Global Advanced Master of Business Administration ... Song Da Urban Stock Company bringing a & Industrial Zone Investment and Development Joint (SUDICO) is a company trading in real estate, owns big projects, lot of profits to shareholders The company? ??s... ENVIRONMENT DA URBAN & INDUSTRIAL ZONE DEVELOPMENT ANALYSIS OF SONG INVESTMENT JOINT STOCK COMPANY AND (SUDICO) I Introduction 21 Vision 21 Business line 22 Organizational structure of the company 22 II... URBAN II BUSINESS ENVIRONMENT Chapter OF SONG III SELECTION BUSINESS Conclusion Global Advanced DA JOINT (SUDICO) STRATEGIC SOLUTION =} ANALYSIS & INDUSTRIAL ZONE INVESTMENT AND DEVELOPMENT STOCK